Document:

English Translation of Equity Interest Pledge Agreement

 Exhibit 10.10 
 English Translation 
 Equity Interest Pledge Agreement 

Among 
 Zeng
Liqing, Wang Bin, Wang Haibing, Cheng Yunpeng, Wei Zhen, Feng Yuliang 
 Shanghai Shengran Information Technology Co., Ltd.

 and 

Shanghai Taomee Network Technology Co., Ltd. 
 March 17, 2010, Shanghai 

  
 1 

 Equity Interest Pledge Agreement 

THIS EQUITY INTEREST PLEDGE AGREEMENT (the “Agreement”) is made and entered into as of March 17, 2010 by the parties below (the
“Parties”) in Shanghai, PRC: 
 Pledgee: 

Shanghai Shengran Information Technology Co., Ltd. (hereinafter referred to as the “Pledgee”) 

Address: Room 2201, Building 20, Gem Tower, 487 Tianlin Road, Xuhui District, Shanghai 

Legal representative: Zeng Liqing 
 Pledgors: 
 Zeng Liqing, ID Card number: 610113197001232130

 Wang Haibing, ID Card number: 342623198009143416 

Wei Zhen, ID Card number: 652421197504283170 

Cheng Yunpeng, ID Card number: 230103197705216813 

Wang Bin, ID Card number: 510502196504290433 

Feng Yuliang, ID Card number: 230107196712111551 
 Collectively referred to as the “New Pledgors”, among whom Zeng Liqing, Wang Haibing, Wei Zhen, Cheng Yunpeng and Wang Bin are collectively referred to as the “Original
Pledgors” 
 Target company: 
 Shanghai Taomee Network Technology Co., Ltd. (hereinafter referred to as “Taomee”) 
 Address: Room 1008-1009, Building 20, Gem Tower, 487 Tianlin Road, Xuhui District, Shanghai 
 Legal representative: Zeng Liqing 

  
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 WHEREAS, 
  

	1.	The Pledgee is a wholly foreign-owned enterprise registered within the territory of the People’s Republic of China; 

 

	2.	Taomee is a limited liability company incorporated within the territory of the PRC; 

 

	3.	The Pledgee has entered into the exclusive technical and marketing services agreement, equity interest pledge agreement, business operation agreement, option agreement,
proxy agreement and loan agreement (hereinafter collectively referred to as the “Original Restructuring Agreements”, in which the equity interest pledge agreement is separately referred to as the “Original Equity Interest
Pledge Agreement”) with the Original Pledgors and Taomee on June 12, 2009; 

  

	4.	The Pledgee has obtained the right of pledge (hereinafter, the “Original Right of Pledge”) by registering the Original Equity Interest Pledge Agreement at
Xuhui Branch, Shanghai Administration of Industry and Commerce on October 10, 2009; 

  

	5.	The Pledgee has made a waiver statement about the Original Right of Pledge and the Original Equity Interest Pledge Agreement was terminated with immediate effect.
Relevant equity interest pledge cancellation registration was completed on February 11, 2010; 

  

	6.	Wang Haibing, Wei Zhen, Cheng Yunpeng, Wang Bin and Feng Yuliang have entered into an equity interest transfer agreement, pursuant to which Wang Haibing, Wei Zhen,
Cheng Yunpeng and Wang Bin would transfer to Feng Yuliang the equity interest held by them representing in total 5.00% of the equity interest in Taomee . After the equity interest transfer, Taomee’s shareholders are Zeng Liqing, Wang Haibing,
Wei Zhen, Cheng Yunpeng, Wang Bin and Feng Yuliang, whose shareholding percentages are as follows: 

  

									
	 Name
	  	Amount of
Contribution
(RMB)	 	  	Shareholding
Percentage	 
	 Wang Haibing
	  	 	2,375,000	  	  	 	23.75	% 
	 Cheng Yunpeng
	  	 	1,575,000	  	  	 	15.75	% 
	 Wei Zhen
	  	 	1,737,500	  	  	 	17.375	% 
	 Wang Bin
	  	 	812,500	  	  	 	8.125	% 
	 Zeng Liqing
	  	 	3,000,000	  	  	 	30.00	% 
	 Feng Yuliang
	  	 	500,000	  	  	 	5.00	% 
		  	 	 	 	  	 	 	 
	 Total
	  	 	10,000,000	  	  	 	100	% 
		  	 	 	 	  	 	 	 

  
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	7.	The Pledgee, Taomee and Original Pledgors have entered into the loan agreement, and the Pledgee, Taomee and New Pledgors have re-signed the exclusive technical and
marketing services agreement, business operation agreement, option agreement and proxy agreement (the foregoing loan agreement and the re-signed exclusive technical and marketing services agreement, business operation agreement, option agreement and
proxy agreement are hereinafter collectively referred to as the “New Restructuring Agreements”) to establish business relationship. Taomee shall make various payments to the Pledgee pursuant to those agreements;

  

	8.	In order to ensure that the Pledgee may normally collect the service fee under the exclusive technical and marketing services agreement from Taomee owned by the New
Pledgors and guarantee the full performance of the New Restructuring Agreements, the New Pledgors hereby jointly and severally pledge all their respective equity interests in Taomee (totaling the 100% equity interest of Taomee) as a guaranty for the
said service fee and the Pledgee’s other rights and interests under the New Restructuring Agreements. 

 NOW, THEREFORE, the
Parties, abiding by the principle of equality and mutual benefit and after friendly negotiations, hereby agree below: 
 1. Definitions

 Except as otherwise provided for herein, the following terms shall have the following meanings: 

“Right of Pledge” refers to all the contents as set forth in Article 2 hereunder. 
 “Equity Interest” refers to all the 100% equity interest lawfully held by the New Pledgors in Taomee and all the present and future rights and interests they are entitled to in respect of such
equity interest. 
 “Event of Default” refers to any circumstance as set forth in Article 7 hereunder. 

“Notice of Default”: refers to a notice alleging an Event of Default given by the Parties pursuant to this Agreement. 

2. Pledge 
 The New Pledgors pledge all
their respective equity interests in Taomee to the Pledgee as a guaranty for the Pledgee’s rights and interests under the New Restructuring Agreements. 

  
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 The scope guaranteed by equity interest pledge hereunder covers all the costs (including legal fees) and
expenses payable by Taomee to the Pledgee under the New Restructuring Agreements, the losses, interest, liquidated damages, compensation and expenses of realization of creditor’s right borne by Taomee as well as any liability borne by Taomee or
the New Pledgors to the Pledgee when the New Restructuring Agreements cannot be performed for whatever reasons. 
 Right of Pledge mentioned
herein refers to the Pledgee’s right to be indemnified in priority with the proceeds from the conversion into money, auction or sale of the Equity Interest pledged by the New Pledgors to the Pledgee. 

Except as otherwise agreed in writing by the Pledgee after the execution of this Agreement, the pledge under this Agreement shall be released only when
Taomee and the New Pledgors have appropriately performed all their obligations and liabilities under the New Restructuring Agreements and obtained Pledgee’s written approval. If Taomee or the New Pledgors still have not fully performed all or
part of their obligations or liabilities under the New Restructuring Agreements upon expiry of the terms specified thereunder, the Pledgee is still entitled to the Right of Pledge hereunder until the aforementioned relevant obligations and
liabilities have been fully performed. 
 3. Effectiveness 
 3.1 This Agreement shall become effective when signed and sealed by the Parties. The Right of Pledge shall come into effect after the New Pledgors and Taomee handle the equity interest pledge registration
at the industrial and commercial administration. 
 3.2 The copy of Taomee’s register of shareholders recording the pledge hereunder shall
be affixed with Taomee’s corporate seal and kept by the Pledgee. 
 3.3 In the course of pledge, if Taomee fails to deliver the service fee
pursuant to the exclusive technical and marketing services agreement or fails to comply with the New Restructuring Agreements, the Pledgee has the right to exercise the Right of Pledge pursuant to the provisions herein. 

4. Custody and Registration 
 4.1 Within
the term of pledge hereunder, the New Pledgors shall deliver the contribution certificates associated with their Equity Interest in Taomee (originals) to the Pledgee for custody. Within seven (7) business days after the execution date hereof,
the above contribution certificates (originals) shall be delivered to the Pledgee together with the evidence proving that the pledge hereunder has been duly recorded in the register of shareholders. 

4.2 Except with the Pledgee’s written consent, throughout the term of this Agreement, all the proceeds obtained by the New Pledgors in connection
with the Equity Interest(if any, including, but not limited to, any dividends and profits) shall also serve as a guaranty for the Taomee’s obligations hereunder. 

  
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 5. Representations and Warranties by the New Pledgors 

As of the execution hereof, the New Pledgors make the following representations and warranties to the Pledgee and confirm that the execution and
performance of this Agreement by the Pledgee has relied on the following representations and warranties: 
 5.1 The New Pledgors lawfully hold
the Equity Interest hereunder and have the right to provide a guaranty to the Pledgee with such Equity Interest. 
 5.2 At any time, once the
Pledgee’s board of directors exercises the Right of Pledge pursuant to this Agreement, such exercise shall be free of any interference from any other party. 
 5.3 The Pledgee is entitled to exercise the Right of Pledge by the means as specified by law and this Agreement. 
 5.4 The Pledgors have all requisite action capacity to execute this Agreement and to perform the obligations and such execution and performance do not violate the provisions of any applicable laws and
regulations. 
 5.5 Other than the pledge hereunder, the Equity Interest held by the New Pledgors is free of any other encumbrance (including,
but not limited to pledge). 
 5.6 As of the execution date hereof, there are no actual and threatened civil, administrative or criminal
proceedings or administrative penalty or arbitration in respect of the Equity Interest. 
 5.7 As of the execution date hereof, there are no
taxes and expenses payable but unpaid, or unfinished legal proceedings and formalities that are supposed to be finished in connection with the Equity Interest. 
 5.8 All the provisions herein are an indication of their true intention and legally binding upon them. 
 5.9 Taomee shall prepare one original and one copy of its register of shareholders and record the share pledge hereunder in the said registers of shareholders. The original will be retained by Taomee and
the copy will be delivered to the Pledgee for custody after pledge registration. Taomee guarantees that the original and copy of registers of shareholders provided are consistent with each other and the recorded items are complete, true and accurate
and consistent with the shareholder names registered with the administration of industry and commerce. 

  
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 5.10 Within seven (7) business days after the date hereof, Taomee shall complete the equity interest
pledge registration for a domestically funded limited liability company at the Shanghai Administration of Industry and Commerce. 
 6.
Undertakings by the New Pledgors 
 6.1 During the term of this Agreement, the New Pledgors undertake to the Pledgee that they will:

 6.1.1 Other than the transfer of Equity Interest to the Pledgee or its designee at the request of the Pledgee, without the Pledgee’s
prior written consent, neither transfer or grant the Equity Interest to others nor create or permit to be created any pledge or other encumbrance that is likely to affect the rights and interests of the Pledgee; 

6.1.2 Comply with and observe all applicable laws and regulations, present the notice, order or advice given or made by the relevant competent authority
in respect of Right of Pledge to the Pledgee within five days of receiving the same and act according to the Pledgee’s reasonable instructions; 
 6.1.3 Timely notify the Pledgee of any event or any notice received which may affect the New Pledgors’ right over the Equity Interest or any part thereof, or may change any of the New Pledgors’
obligations hereunder or affect their performance of the obligations hereunder and act according to the Pledgee’s instructions; 
 6.1.4
Without the Pledgee’s written consent, as from the date of the delivery of the copy of register of shareholders to the Pledgee, not amend or reproduce Taomee’s register of shareholders. 

6.2 The New Pledgors agree that the exercise by the Pledgee of its rights hereunder will not be interrupted or hindered by the New Pledgors or their
respective successors or assigns or any other person; 
 6.3 The New Pledgors warrant to the Pledgee that in order to protect or improve the
guaranty for the service fee under the exclusive technical and marketing services agreement and the performance of the New Restructuring Agreements, the New Pledgors will execute in good faith and cause other interested persons relating to the Right
of Pledge to execute all the right certificates and contracts requested by the Pledgee and/or perform and cause other interested persons to perform the acts requested by the Pledgee, provide convenience for the exercise of the Right of Pledge by the
Pledgee, sign all modification documents of equity interest certificates with the Pledgee and any third party designated by it and within a reasonable period, provide to the Pledgee all the documents about the Right of Pledge as it deems necessary.

  
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 6.4 The New Pledgors warrant to the Pledgee that for the purpose of the Pledgee’s interests, they will
comply with and observe all warranties, undertakings, agreements and representations. Where the New Pledgors fail to perform, in whole or in part, its warranties, undertakings, agreements or representations, the New Pledgors shall compensate all
losses thus incurred by the Pledgee. 
 7. Events of Default 
 7.1 The following matters are deemed as serious Events of Default: 
 7.1.1 Taomee or its successor
or assign fails to pay any service fee under the exclusive technical and marketing services agreement on time and in full, or the New Pledgors, Taomee or their successors or assigns fail to perform the New Restructuring Agreements; 

7.1.2 Any representation, warranty or undertaking made by the New Pledgors under Article 5 and Article 6 above is materially misleading or wrong and/or
the New Pledgors violate any representation, warranty or undertaking under Article 5 and Article 6; 
 7.1.3 The New Pledgors materially violate
any provision herein, thus affecting the Pledgee’s interests; 
 7.1.4 Except as provided in Article 6.1.1, the New Pledgors waive the
pledged Equity Interest or without the Pledgee’s written consent, transfers or grants the pledged Equity Interest; 
 7.1.5 The New
Pledgors’ borrowing, guaranty, compensation, undertaking or other liabilities are requested to be repaid or performed in advance due to a default; or are due but cannot be repaid or performed on time, which, as deemed by the Pledgee, influences
the New Pledgors’ ability of performing the obligations under this Agreement and further influences the interests of the Pledgee; 
 7.1.6
This Agreement becomes illegal or the New Pledgors are incapable of continuing to perform the obligations under this Agreement due to the promulgation of related laws; 
 7.1.7 All government consents, permits, approvals or authorizations necessary for this Agreement to be enforceable, legal or effective are withdrawn, suspended, invalid or materially modified; 

7.1.8 The properties owned by the New Pledgors have adverse changes, which, as deemed by the Pledgee, influence the New Pledgors’ ability of
performing the obligations under this Agreement; 

  
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 7.1.9 Other circumstances in which the Pledgee is incapable of exercising the Right of Pledge as specified
by relevant laws. 
 7.2 If the New Pledgors know or find that any matter as stated in Article 7.1 hereof or any event possibly resulting in any
of the above matters has occurred, the New Pledgors shall forthwith inform the Pledgee in writing. 
 7.3 Unless the Events of Default as listed
in Article 7.1 hereof are fully remedied to the Pledgee’s satisfaction, the Pledgee may give a written Notice of Default to the New Pledgors when such default occurs or at any time thereafter, demanding the New Pledgors to immediately pay all
the outstanding sums under the exclusive technical and marketing services agreement and other payables, or to timely perform other New Restructuring Agreements or to exercise the Right of Pledge pursuant to the provisions of Article 8 hereof.

 8. Exercise of Right of Pledge 
 8.1 Without the Pledgee’s written consent, the New Pledgors shall not assign the Equity Interest before the full payment of the service fee under the exclusive technical and marketing services
agreement and the full performance of any other New Restructuring Agreement. 
 8.2 The Pledgee shall give a Notice of Default to the New
Pledgors at the exercise of the Right of Pledge. 
 8.3 Subject to the provisions of Article 7.3, the Pledgee may exercise the Right of Pledge
at the time when a Notice of Default is given pursuant to Article 7.3 or at any time thereafter. 
 8.4 The Pledgee is entitled to be
compensated in priority with the proceeds from the conversion into money, auction or sale of all or any part of the Equity Interest hereunder according to the statutory procedures until the unpaid service fee under the exclusive technical and
marketing services agreement and other sums payable are fully offset and other New Restructuring Agreements are fully performed. 
 8.5 The New
Pledgors shall not hinder the Pledgee from exercising the Right of Pledge hereunder and shall provide necessary assistance so that the Pledgee could realize its Right of Pledge. 
 9. Assignment 
 9.1 The New Pledgors shall not assign any of their rights and/or obligations
hereunder to any third party except with the Pledgee’s prior consent. 

  
 9 

 9.2 This Agreement shall be binding upon the New Pledgors and their respective successors and inure to the
benefit of the Pledgee and its successor or assign. 
 9.3 At any time, the Pledgee may assign all or any rights and/or obligations under the
New Restructuring Agreements to any third party designated by it. In this case, such assign shall have the same rights and obligations as those of the Pledgee hereunder. When the Pledgee assigns its rights and obligations under the New Restructuring
Agreements, if requested by the Pledgee, the New Pledgors shall execute the relevant agreements and/or documents with respect thereto. 
 9.4
Upon the Pledgee’s change as a result of the assignment, the New Pledgors shall execute a new pledge agreement at the request of the new pledgee, re-register the pledgors in Taomee’s register of shareholders and complete the
re-registration of equity interest pledge for domestic limited liability company at the administration of industry and commerce in Shanghai. 

10. Handling Charges and Other Expenses 

10.1 Any and all expenses and costs arising in connection with this Agreement, including, but not limited to, legal costs, costs of production, stamp
taxes and any other taxes and fees, shall be borne by the Pledgee. 
 11. Force Majeure 

11.1 Should the performance of this Agreement be delayed or prevented due to any Event of Force Majeure, the prevented Party shall be exempt from any
liability hereunder only to the extent being thus delayed or prevented. An Event of Force Majeure means any event that is beyond the reasonable control of a Party and unavoidable or unpreventable even with due attention of such Party, including, but
not limited to, government act, natural forces, fire, explosion, geographical change, windstorm, flood, earthquake, tide, lightning or war, but insufficiency of credit standing, funds or financing shall not be deemed to be beyond the reasonable
control of a Party. The Party seeking the exemption from its liabilities under this Agreement or any provision thereof owing to an Event of Force Majeure shall, without undue delay, inform the other Party of such exemption and the steps needing to
be taken to perform its liabilities. 
 11.2 The prevented party may be exempt from its liabilities to the extent of the performance being
delayed or prevented only when it makes its reasonable efforts to perform this Agreement. Once the cause for such exemption is corrected and remedied, the Parties agree to do their best to resume the performance of this Agreement. 

  
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 12. Law Application and Dispute Resolution 
 12.1 The execution, validity, performance and interpretation of and resolution of disputes in connection with this Agreement shall be governed by and construed in accordance with the PRC laws. 

12.2 Any dispute arising in connection with the interpretation and performance of the provisions of this Agreement shall be resolved by the Parties
through good faith negotiations. If such negotiation effort has failed, any Party may submit that dispute to the China International Economic and Trade Arbitration Commission for arbitration in accordance with its arbitration rules then in effect.
The venue of arbitration shall be Shanghai and the language to be used in arbitration proceedings shall be Chinese. The arbitral award shall be final and binding upon the Parties. 
 12.3 The Parties shall continue to perform their respective obligations hereunder in good faith except for the matters in dispute. 
 13. Waiver 
 No failure or delay by the Pledgee in exercising any right, remedy, power or
privilege hereunder shall be deemed as a waiver thereof, nor will any single or partial exercise of any right, remedy, power or privilege preclude the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and
privileges provided for herein are cumulative and not exclusive of any right, remedy, power and privilege under any law. 
 14. Miscellaneous

 16.1 No amendment, supplement or modification to this Agreement shall be binding unless executed and sealed in writing by the Parties. The
Original Equity Interest Pledge Agreement shall be terminated as of the effective date of this Agreement. 
 16.2 If any provision of this
Agreement is held invalid or unenforceable due to inconsistence with applicable laws, such provision shall be invalid or unenforceable only to the extent of such invalidity or unenforceability under the relevant laws and not affect the legal
validity of the remainder of this Agreement. 
 16.3 This Agreement is written in Chinese and executed in three originals. 

  
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 [SIGNATURE PAGE OF EQUITY INTEREST PLEDGE AGREEMENT] 

 

			
	Zeng Liqing
		
	Signature:	 	 /s/ Zeng Liqing

	
	Wang Haibing
		
	Signature:	 	 /s/ Wang Haibing

	
	Wei Zhen
		
	Signature:	 	 /s/ Wei Zhen

	
	Cheng Yunpeng
		
	Signature:	 	 /s/ Cheng Yunpeng

	
	Wang Bin
		
	Signature:	 	 /s/ Wang Bin

	
	Feng Yuliang
		
	Signature:	 	 /s/ Feng Yuliang

Shanghai Shengran Information Technology Co., Ltd. 

			
		
	Signature & seal:	 	 /s/ Zeng Liqing

	Name of signatory:	 	Zeng Liqing

 [seal:
Shanghai Shengran Information Technology Co., Ltd.] 
 Shanghai Taomee Network Technology Co., Ltd. 

			
		
	Signature & seal:	 	 /s/ Zeng Liqing

	Name of signatory:	 	Zeng Liqing

 [seal:
Shanghai Taomee Network Technology Co., Ltd.] 

  
 12English Translation of Equity Investment Agreement

 Exhibit 10.11 
 English Translation 
 Shenzhen Ruigao Information Technology Co., Ltd.

 Equity Investment Agreement 
 Party A: Shenzhen Decent Investment Limited 
 Shanghai Taomee Network
Technology Co., Ltd. 
 Qiu Weimin 
 Party B: Wang Sheng 
 WHEREAS, Party A and Party B intend to jointly make capital
contributions to establish Shenzhen Ruigao Information Technology Co., Ltd. (temporary name, hereinafter referred to as the “Invested Company”), in which Party B also holds equity interest by contributions in form of technology, therefore,
both parties hereby reach this Equity Investment Agreement with respect to the following matters through friendly consultation by adhering to the principles of free will, fairness and impartiality in accordance with applicable laws and regulations.

 Article 1 Equity Structure 

1. Both parties shall hold 70% (hereinafter referred to as the “Contributed Equity”) of total equity of the Invested Company in the form of cash
contribution, and the specific amounts of contribution and the equity distribution are as follows: 
  

									
	 Contributor
	  	Amount of
Contribution
(in RMB
million)	 	  	Shareholding
Percentage	 
	 Shenzhen Decent
	  	 	21.56	  	  	 	49	% 
	 Shanghai Taomee
	  	 	6.6	  	  	 	15	% 
	 Qiu Weimin
	  	 	1.1	  	  	 	2.5	% 
	 Wang Sheng
	  	 	1.54	  	  	 	3.5	% 
		  	 	 	 	  	 	 	 
		  	 	30.8	  	  	 	70	% 
		  	 	 	 	  	 	 	 

  
 1 

 2. Party B shall contribute its technical services to the Invested Company, and sign a labor contract with
the Invested Company; as consideration, Party B shall hold 15% of the equity of the company under this Agreement as its technology contribution equity interest. Meanwhile, the parties hereto agree that 10% of the total equity shall be reserved to be
granted to the key personnel in the future, and shall be held by Wang Sheng on their behalf as the stage 1 technology equity interest. The foresaid equity interest are collectively called Technology Equity Interest, and the specific equity
distribution is as follows: 
  

			
	 Technology participant
	  	Proportion in total equity
	 Wang Sheng
	  	15% + 10%

 3. 5% shares shall serve as the stage
2 technology equity interest, and shall be held by Shenzhen Decent on behalf of high-level talents to be attracted specifically when the company enters the stage of rapid development. The distribution plan shall be determined by the board of
directors of the company through discussion. 
 Article 2 Form of Contribution 
 The cash contribution shall be paid in two stages: in the first stage, the contributors shall invest 50% as the capital when the new company is established. In the second stage, the contributors shall
invest the remaining 50% no later than June 30, 2011 when the company increases its capital. 
 If any contributor fails to complete all
the contribution, the originally specified shareholding percentage of the contributor shall be reduced according to actual amount of contribution, and the shareholding percentage of other parties shall be increased in proportion. 

The registered capital of the Invested Company is [RMB15.4 million], wherein Party B’s shortfall of [RMB3.619 million] between the amount of
contribution payable according to its shareholding percentage and actual amount of contribution shall be covered by the loan granted by Party A to Party B (the “Party B’s Borrowings”). The specific proportions of contribution are as
follows: 
  

																	
	 Contributor
	  	Contribution
in the
first stage
(RMB10000)	 	  	Verified
contribution
(RMB10000)	 	  	Proportion
of verified
contribution	 	 	Party A’s
borrowings	 
	 Shenzhen Decent
	  	 	1078.00	  	  	 	831.60	  	  	 	54.0	% 	 	 	246.40	  
	 Shanghai Taomee
	  	 	330.00	  	  	 	231.00	  	  	 	15.0	% 	 	 	99.00	  
	 Qiu Weimin
	  	 	55.00	  	  	 	38.50	  	  	 	2.5	% 	 	 	16.50	  
	 Wang Sheng
	  	 	77.00	  	  	 	438.90	  	  	 	28.5	% 	 	 	-361.90	  
		  	 	 	 	  	 	 	 	  	 	 	 	 			
	 Total
	  	 	1540	  	  	 	1540	  	  	 	100.0	% 	 			
		  	 	 	 	  	 	 	 	  	 	 	 	 			

  
 2 

 Article 3 Corporate Governance Structure of the Invested Company 

The first board of directors has 3 members, in which Zeng Liqing of Party A has the right to appoint 1 member, Shanghai Taomee 1 member and Party B 1
member. The appointing party may replace the director appointed by it by giving a notice to the company, and the company and the shareholders shall assist the appointing party in completing the replacement procedures. The board meeting shall be held
at least semiannually. Notice about each board meeting (whether official or interim) shall be given in writing or via e-mail, and such notice shall be effective after being signed by the receiving party for confirmation. The meeting may be held only
when at least 3 directors are present. The general matters discussed and decided by the board shall be adopted with the approval of more than half of the board members, while the special matters (including the matters specified by the following
Paragraph 2) discussed and decided by the Board of Directors shall apply the provisions of Paragraph 3 of Article 3. 
 2. All the investment
funds obtained by the Invested Company shall only be used for business development of the Invested Company and the purchase of assets related to the project business, etc. Except with special approval of the board of directors, the funds of the
company shall not be used for the purchase of securities or other industrial investments irrelevant to the business. 
 3. During the valid
existence of the Invested Company, the following special matters (including the matters specified by the foregoing Paragraph 2) shall be adopted and implemented with the approval of all board members, unless otherwise specified by the terms hereof,
and the special matters include: 
 (1) Equity change, repurchase or capital increase program of the company; 

(2) Sale of all or substantial properties of the company; 
 (3) Liquidation or dissolution of the company; 
 (4) Liabilities or expenditure of the company
exceeding RMB700,000; 

  
 3 

 (5) Purchase or lease of vehicle for the company whose value exceeds RMB100,000; 

(6) Any loan granted by the company to its directors, senior management and staff; 
 (7) Adoption and adjustment of salary plan for senior management of the company; 
 (8) Change of
general manager of the company; 
 (9) Modification of the articles of association; 
 (10) Profit-sharing plan of the company; 
 (11) Employee stock option plan and allotment;

 (12) Change of seat number and members of the Board of Directors; 
 (13) Annual budget and business plan of the company, and expenditure not specified in the budget with the amount exceeding [RMB700,000]. 
 4. Both Parties agree that the annual profit-sharing proportion shall be determined according to the profitability of the company, and either party may ask for sharing profit every six months or one year.

 5. The tenure of the first board of directors is three years, and the board members can be continuously appointed by the appointing party
until proper number of board members is reached or the appointing party decides to replace 
 Article 4 Representations, Warranties and
Undertakings 
 1. Representations: 

(1) The parties hereto have full capacity for civil conduct, and are able to legally participate, conclude and implement this Agreement, or have all
necessary powers and authorizations required for signing and performing this Agreement, and will continuously have all necessary rights for fully fulfilling their obligations under this Agreement until the completion of all the investment matters as
set out herein; 
 (2) The conclusion of this Agreement and the performance of the obligations hereunder will not infringe upon the rights of
any other party other than the parties hereto. 

  
 4 

 2. Warranties and undertakings: 
 (1) The technology contribution equity interest (15%) of Party B shall vest to Party B on a yearly basis in three stages during the 36 months upon signature of this Agreement. Within such 36 months,
without the joint written permission of Zeng Liqing and Shanghai Taomee of Party A, Party B shall not leave the Invested Company on its own initiative; if Party B leaves the company initiatively or fails to fulfill the labor contract or this article
(a “Trigger Event”), the amount of technology contribution equity interest vested to Party B shall be determined according to the time of the Trigger Event. From the date of this Agreement to the Trigger Event, 1/3 of the technology
contribution equity interest shall vest to Party B for each full service year by Party B, however, no technology contribution equity interest shall vest to Party B for any service period which is less than one year. For example, Party B serves for
two years and ten months, thus only 66.7% of the technology contribution equity interest may vest to Party B. The technology contribution equity interest not vested to Party B shall be transferred to other contributors unconditionally, and
distributed among the contributors according to their shareholding percentage. As a consideration, Party A will discharge Party B from the borrowings. The Contributed Equity held by Party B shall have the same rights and interests as those held by
other contributors. 
 (2) After the 36 months of the date of this Agreement, if Party B initiatively leaves the Invested Company without
written approval of Party A, the contributors shall have the right to purchase Technology Equity Interest held by Party B, and the purchase price shall be determined by both parties, which shall be not higher than 6 times of the then price earnings
ratio of the Invested Company. 
 (3) Both parties may transfer or mortgage the equity interest held by them to the third party when any of the
following conditions is met: a) The Invested Company makes initial public offering (IPO); b) The market value of the company exceeds the initial investment, namely, after the gross profit for consecutive 12 months reaches RMB36 million; c) Through
consultation, both parties agree that during the term of this Agreement or the term of Party B’s labor contract/service agreement, as well as within two years after Party B leaves the Invested Company, Party B shall not, directly or indirectly,
separately or by cooperating with others, engage in, invest in, manage or otherwise serve any business which may have competition with the business of the Invested Company, unless jointly agreed by Zeng Liqing and Shanghai Taomee of Party A.

 (4) The Invested Company shall submit its financial statements of previous month to the board members before the
16th day of each month, and shall submit it to the
auditors recognized by Shanghai Taomee for audit. For the purpose of preparing its statements, Shanghai Taomee or its auditors may require the company to offer necessary financial or business information, and the company shall offer such information
without delay and provide other necessary assistance. 
 (5) Undertakings of shareholders: the intellectual property rights arising during the
operation of the Invested Company, including but not limited to patent, trademark and copyright (including computer software) and the like shall be owned by the Invested Company. Without the consent of the board of directors, no person may obtain or
use the foresaid intellectual property rights in the name other than that of the Invested Company. 

  
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 (6) Party A or its designated personnel shall have the right to inspect assets of the company, check
statements, copy relevant documents and negotiate with government, shareholders, directors, key employees and accountants regarding the affairs of the company. 
 (7) The Invested Company shall sign confidentiality agreement and non-competition agreement with the management personnel acting as the shareholders and key employees of the company, and shall warrant
that they will not engage in the industry which has competition with the Invested Company during their term of office and within two years after their resignation. 
 Article 5 Liability for Breach of Contract 
 1. Both parties are obliged to fully comply
with this Agreement in good faith. 
 2. Any party’s failure in fully fulfilling its responsibilities and obligations hereunder will
constitute a breach of contract. The breaching party shall indemnify the non-breaching party for all the economic losses suffered by it therefrom. 
 Article 6 Force Majeure 
 Force Majeure: In case the terms specified by this Agreement can
not be performed or are seriously affected due to earthquake, typhoon, fire, war and other events that are unforeseeable on the date hereof, and the occurrence and consequences of which cannot be avoided or overcome, one party shall, within 15 days
upon the occurrence of such events, notify the other party by means of the supporting documents issued by local notary public office or relevant government approvals. The extension or rescission (in whole or in part) of this Agreement due to the
foresaid events shall be determined by the parties hereto through negotiation. 
 Article 7 Dispute Settlement 

Any dispute within the scope of or in connection with this Agreement shall be settled through friendly consultations. If a solution satisfactory to both
parties can not be reached, either party may file a lawsuit before a competent people’s court of law. 
 Article 8 Effectiveness,
Modification, Transfer and Rescission of this Agreement 
 1. This Agreement shall have legal binding force as of the effective date, and
neither party shall unilaterally modify or rescind this Agreement. The party modifying, terminating or rescinding this Agreement without good reasons shall bear economic responsibilities in accordance with the laws. If it is necessary to modify or
rescind this Agreement, both parties shall reach a consensus through consultations and enter into a written agreement. 

  
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 2. Effectiveness: This agreement shall be a lawful, valid and binding legal document after being signed by
both parties. 
 3. Modification: Without the written consent of both parties, this Agreement shall not be modified, supplemented or changed in
any way. Any modification shall be approved by the signatories of this Agreement in writing. 
 4. Transfer: Unless otherwise specified by laws,
the rights and obligations of any party hereunder shall not be transferred. 
 5. Rescission: This Agreement shall be rescinded under any of the
following circumstances: 
 a) One party commits a material breach of this Agreement, thus causing great losses to the company and impairing the
interests of other parties. The aggrieved party may propose to terminate and rescind this Agreement. 
 b) If it is necessary to modify or
terminate this Agreement due to the restrictions of laws and regulations or Force Majeure, both parties may negotiate the modification and supplementary terms. 
 Article 9 Miscellaneous 
 1. This Agreement, as a basis for interpreting the rights and
obligations among the shareholders of the Invested Company, shall be permanently valid, unless both parties enter into a written agreement for modifying this Agreement. 
 2. This Agreement shall become effective after signed and stamped by both parties. 
 3.
Severability: If any provision of this Agreement is held illegal or unenforceable according to court decision, such provision shall be severed from remaining provisions of this Agreement and shall be deemed invalid. The invalidity of such provision
shall not affect the validity of the remaining provisions. 
 4. This Agreement is made in quintuplicate, each party holding one counterpart,
and all the counterparts shall be equally authentic. In case there is any conflict between this Agreement and the articles of association, this Agreement shall prevail. 

  
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 [SIGNATURE PAGE] 
 Party A: Shenzhen Decent Investment Limited (Seal) 
  

			
	 /s/ Zeng Liqing

	[seal:	 	Shenzhen Decent Investment Limited]

 Shanghai Taomee
Network Technology Co., Ltd. (seal) 
 [seal: Shanghai Taomee Network Technology Co., Ltd.] 

 

	
	Legal representative:
	
	Date:
	
	Qiu Weimin
	
	 /s/ Qiu Weimin

	
	Date:
	
	Party B: Wang Sheng
	
	 /s/ Wang Sheng

	
	Date:

  
 8

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