Document:

Exhibit
10.3

 

Amended and Restated Exclusive
Technology

Consulting and Management Service Agreement

 

THIS AMENDED AND RESTATED EXCLUSIVE TECHNOLOGY CONSULTING AND
MANAGEMENT SERVICE AGREEMENT (the “Agreement”) is
entered into in Beijing on July 28,
2010 by and between:

 

Party
A: Xuecheng Century (Beijing) Information Technology Co., Ltd.

 

Registered
Address: Room 172, Building No.1, 3 Xijing Road, Badachu High Technology
Park, Shijingshan District, Beijing

 

Party
B:  Beijing Xueda Information Technology
Co., Ltd.

 

Registered
Address: Rooms 9506-9508, Building No.3, Block 1, 19 Xinjiekouwai Street,
Haidian District, Beijing

 

WHEREAS,

 

(1) 
Party A is a wholly foreign-owned enterprise organized in the People’s Republic
of China (“PRC”) and it possesses resources and qualifications for technology
consulting and management services.

 

(2) 
Party B is a domestic limited liability incorporated in the PRC; and it
requires a professional technology firm to provide it with technical support
and technology services for its operations and management.

 

(3) 
Party A and Party B entered into an Exclusive Technology Consulting and
Management Service Agreement dated August 28, 2009 which sets out the
terms and conditions for the provision by Party A of the technical support and
technology services to Party B;

 

(4) 
Party A and Party B have mutually agreed to amend and restate the aforesaid
Exclusive Technology Consulting and Management Service Agreement to the effect
that their respective rights and obligations shall be governed by the Exclusive
Technology Consulting and Management Service Agreement so amended and restated.

 

NOW, THEREFORE, the parties by way of mutual consultations
agree as follows:

 

1. Technology Consulting and Management Services; Sole and Exclusive
Rights and Interests

 

 

1.1
During the term hereof, Party A agrees to furnish, as Party B’s technology
consulting and management services provider, relevant technology consulting and
management services (as more fully described in Schedule 1 hereto) to Party B
in accordance with the conditions hereof.

 

1.2
Party B agrees to accept the technology consulting and management services
provided by Party A. Party B further agrees that except with prior written
consent of Party A it shall not accept during the term hereof same or similar
technology consulting and management services from any third party.

 

1.3
Party A shall solely and exclusively own any and all rights and interests
arising out of the performance of this Agreement, including without limitation
all ownership rights, intellectual property rights (copyrights, patents, etc),
technology secrets, trade secrets and the like, regardless of whether they are
developed by Party A or Party B on the basis of the intellectual property
rights originally owned by Party A.

 

2.  Calculation and Payment of
Technology Consulting and Management Services Fee (“Consulting Service Fee”)

 

The
parties agree that the Consulting Service Fee hereunder shall be determined and
paid as set out in Schedule 2 hereto.

 

3. Representations and Warranties

 

3.1
Party A hereby represents and warrants that:

 

3.1.1
It is a company lawfully organized and validly existing under the laws of PRC.

 

3.1.2
The execution and performance by it of this Agreement falls within its
corporate powers and business scope; it has taken or obtained necessary
corporate actions and appropriate approvals as well as third party and
governmental authority consents and approvals; and it will not, as a result of
the foregoing, contravene any restrictions imposed by any laws or contracts
binding upon or affecting it.

 

3.1.3
This Agreement, once executed, will constitute its lawful, valid and binding
obligations and is enforceable against it in accordance with its terms.

 

3.2
Party B hereby represents and warrants that:

 

3.2.1
It is a company lawfully organized and validly existing under the laws of PRC.

 

3.2.2
The execution and performance by it of this Agreement falls within its
corporate powers and business scope; it has taken or obtained necessary
corporate actions and

 

2

 

appropriate
approvals as well as third party and governmental authority consents and
approvals; and it will not, as a result of the foregoing, contravene any
restrictions imposed by any laws or contracts binding upon or affecting it.

 

3.2.3
This Agreement, once executed, will constitute its lawful, valid and binding
obligations and is enforceable against it in accordance with its terms.

 

4. Confidentiality

 

4.1
Party B agrees to take, on a best effort basis, all reasonable measures to
maintain in confidence all confidential materials and information (“Confidential
Information”) coming into its knowledge or accessed by it as a result of its
acceptance of Party A’s exclusive consulting work and services and except with
prior written consent of Party A, it will not disclose, transfer or assign such
Confidential Information to any third party. Upon termination of this
Agreement, Party B shall at the request of Party A either return to Party A or
destroy on its own any file, material or software containing the Confidential
Information, shall remove any Confidential Information from any relevant memory
devices, and shall refrain from any further use of the Confidential
Information.

 

4.2  The parties agree that the provisions under
this Article 4 shall survive any modification, dissolution or termination
of this Agreement.

 

5. Indemnity

 

Party
B shall fully indemnify Party A against any loss, damage, liability and/or
costs resultant from any suit, claim or other demand against Party A arising
out of or in connection with the content of the consulting work and services
requested by Party B, and shall hold Party A harmless from any damage and loss
suffered by Party A as a result of any action of Party B or any third party claims
arising out of any action of Party B.

 

6. Effectiveness and Term

 

6.1
This Agreement shall be executed on the date first above written and shall
therewith become effective. Unless earlier terminated pursuant to the
provisions hereof or an instrument separately entered into by the parties, this
Agreement shall have a term of ten (10) years. Upon expiry of such term,
this Agreement shall be automatically extended by ten (10) years if Party
A has not proposed any cessation of such extension, and any further extension
of this Agreement will be dealt with in accordance with the same principle.

 

7. Termination

 

7.1 Termination upon Expiry

 

Unless
extended pursuant to relevant provisions hereof, this Agreement shall terminate
on its expiry date.

 

3

 

7.2 Early Termination

 

During
the term hereof, except on the grounds of Party A’s gross negligence, fraud or
other illegal act, or Party A’s bankruptcy or lawful dissolution or
termination, Party B may not early terminate this Agreement. This Agreement
shall automatically terminate if Party B becomes bankrupt or is lawfully
dissolved or terminated before the expiry date of this Agreement.
Notwithstanding the foregoing, Party A shall at all times have the right to
terminate this Agreement by a 30 days written notice to Party B.

 

7.3 Surviving Provisions

 

The
rights and duties of the parties under Sections 4 and 5 shall survive any
termination of this Agreement.

 

8. Dispute Resolution

 

Any
dispute between the parties in connection with the interpretation or
performance of the provisions hereof shall be resolved in good faith by the
parties through consultations. If the parties fail to resolve any dispute
within thirty (30) days of receipt of a written notice served by one party on
the other party requesting such consultations, either party may submit the
dispute to China International Economic and Trade Arbitration Commission for
arbitration in accordance with the then effective arbitration rules of
such commission. The place of arbitration shall be Beijing. The language of
arbitration shall be Chinese. The arbitration award shall be final and shall be
binding upon both parties.

 

9. Force Majeure

 

9.1  A “force majeure” event means any event which
is beyond the reasonable control of a party and which remains unavoidable
despite reasonable care on the part of such affected party, including without
limitation acts of government, acts of God, fire, explosion, storm, flood,
earthquake, tide, lightening or war. Any inadequacy in creditworthiness,
capital or financing shall not be deemed an event beyond the reasonable control
of a party. The party affected by a force majeure event seeking to be excused
from performance of its obligations hereunder shall notify the other party of
such excusing event as well as the steps to be taken by it for the purpose of
performance of such obligations.

 

9.2  If the performance of this Agreement is
delayed or prevented by any force majeure event as defined above, the party
affected by such force majeure event shall be relieved from any liability
hereunder to the extent of such delay or prevention. Such affected party shall
take appropriate measures to mitigate or remove the effect of the force majeure
and shall seek to resume the performance of those obligations delayed or
prevented by such force majeure event. The parties agree to use their best
efforts to resume the performance hereunder immediately upon removal of the
force majeure event.

 

4

 

10. Assignment

 

Except
with prior written consent of Party A, Party B may not assign to any third
party any rights and/or any obligations assumed by it hereunder.

 

11. Severability

 

If
any provision hereof is found invalid or unenforceable due to any inconsistency
with relevant laws, such provision shall be invalid or unenforceable only to
the extent of the scope of application of such laws and shall not affect the
legal validity of any other provision of this Agreement.

 

12. Amendment; Supplement

 

Any
amendment of or supplement to this Agreement shall be effected by a written
agreement of the parties. Any amending or supplementary agreement, as duly
executed by the parties, shall be an integral part of this Agreement and shall
have the same legal force and effect as this Agreement.

 

13. Governing Law

 

This
Agreement shall be governed by and implemented and interpreted in accordance
with the laws of the PRC.

 

IN
WITNESS WHEREOF, the parties have caused their authorized representatives to
execute this Agreement as of the date first above written.

 

(Signature Page Follows; No Operative Text Below)

 

5

 

Party A: Xuecheng Century (Beijing) Information Technology Co., Ltd.

(Seal)

 

	
  Authorized
  Representative:

  	
  /s/
  HSU William Shang Wi

  
	
   

  
	
  Name:   HSU
  William Shang Wi

  

 

Party B:
Beijing Xueda Information Technology Co., Ltd.

(Seal)

 

	
  Authorized
  Representative:

  	
  /s/
  LI Rubin

  

 

Name:   LI
Rubin

 

6

 

Schedule 1 List of the Scope of Technology Consulting and

Management Services

 

Party
A will provide Party B with the following technology consulting and management
services:

 

(1) 
research and development in connection with the relevant technologies required
for the business of Party B, including the development, design and preparation
of such database software, user interface software and other relevant
technologies as applied in the storage of relevant business information; and
licensing of such technologies to Party B;

 

(2) 
application and implementation of relevant technologies for the business
operations of Party B, including without limitation system overall design
planning, system installation and commissioning, and system trial operation;

 

(3) 
daily maintenance, monitoring, debugging and trouble-shooting of the computer
network equipment of Party B, including without limitation timely inputting of
user information into the databases; timely updating of the databases based on
such other business information as provided at any time by Party B; regular
updating of user interfaces; and the provision of other relevant technology
services;

 

(4) 
training of and technology assistance to the staff of Party B in respect of the
operating activities of Party B, including without limitation industry information
training, process training, and training related to customer services and other
aspects; and

 

(5) 
provision of other technology services and management consulting according to
the business needs of Party B, such as consulting and services related to cost
control, risk management and market analysis.

 

7

 

Schedule 2 Calculation and Payment of Technology Consulting and

Management Service Fee

 

The
service fee shall be determined based on the following factors:

 

(1) 
the sophistication of the technology involved and the complexity of the
consulting and management services;

 

(2) 
the time required for the provision of relevant technology consulting and
management services; and

 

(3) 
the specific content and commercial value of relevant technology consulting and
management services.

 

Each
quarter, Party A will per the price agreed by the parties issue an invoice to
Party B on the basis of the work volume and commercial value of the technology
services provided to Party B and Party B shall pay the relevant Consulting
Service Fee to Party A per the date and amount set out in such invoice. Party A
shall at all times be entitled to adjust the standards of the Consulting
Service Fee based on the quantity and content of the consulting services
provided to Party B.

 

The
aforesaid Consulting Service Fee shall be an amount to be approved by the
boards of Party A and China Xueda Education LTD, the parent company of Party A
(“OffshoreCo”) (including the consent by at least one director (if any)
appointed by the A-Class preferred stockholders of OffshoreCo(“A-Class Director”)).
Such Consulting Service Fee shall be evaluated and adjusted from time to time
but in no event less than once a year. Any adjustment of or change to the
Consulting Service Fee shall be approved by the boards of Party A and the
OffshoreCo ((including the consent by at least one A-Class director (if
any)).

 

Within
fifteen (15) days of the end of each year, Party B shall provide Party A with
the financial statements of the year together with all operating records,
business contracts and financial and accounting materials. If Party A has any
doubt about such financial and accounting materials provided by Party B, Party
A may appoint a reputable independent accounting firm to audit relevant
materials and Party B shall cooperate with such audit.

 

8Exhibit
10.4

 

PLEDGE AGREEMENT

 

THIS PLEDGE AGREEMENT (this “Agreement”) is made on August 28, 2009
in Beijing:

 

BETWEEN

 

	
  Pledgee:

  	
  Xuecheng Century (Beijing) Information Technology
  Co., Ltd.

  
	
   

  	
   

  
	
   

  	
  Registered Address: Room 172, Building
  No. 1, 3 Xijing Road, Badachu High Technology Park, Shijingshan
  District, Beijing

  

 

	
  Pledgors:

  	
  Jin
  Xin

  	
  ID
  No.: 110105197702260013;

  
	
   

  	
  Li Rubin

  	
  ID
  No.:  372831197709070053;

  
	
   

  	
  Yao Jinbo

  	
  ID
  No.:
  432321197610190959;

  
	
   

  	
  Zhu Changyong

  	
  ID
  No.: 342101197008140010;

  
	
   

  	
  Deng Qiang

  	
  ID
  No.: 110102196711032318;

  
	
   

  	
  Piao Junhong

  	
  ID
  No.: 220204197704073320;

  
	
   

  	
  Wang
  Yafei

  	
  ID
  No.: 610103195504123620;

  
	
   

  	
  Chai
  Chaoming

  	
  ID
  No.: 310110196911148013;

  
	
   

  	
  Song
  Junbo

  	
  ID
  No.: 140502197512043016.

  

 

WHEREAS:

 

The Pledgors collectively own 100% of the equity
interest of Beijing Xueda Information Technology Co., Ltd., a limited
liability company registered in Beijing, China (the “Company”), among which:

 

	
  (1)

  	
  Jin Xin owns 27.03968%;

  
	
  (2)

  	
  Li Rubin owns 23.48493%;

  
	
  (3)

  	
  Yao Jinbo owns 15.66018%;

  
	
  (4)

  	
  Zhu Changyong owns 2.85022%;

  
	
  (5)

  	
  Deng Qiang owns 2.13499%;

  
	
  (6)

  	
  Piao Junhong owns 20.03308%;

  
	
  (7)

  	
  Wang Yafei owns 3.51877%;

  
	
  (8)

  	
  Chai Chaoming owns 2.26258%;

  
	
  (9)

  	
  Song Junbo owns 3.01557%.

  

 

1

 

The Pledgee is a wholly foreign-owned company
registered in Beijing, China. The Pledgee has entered into the Exclusive
Technology Consulting and Management Service Agreement (the “Service Agreement”)
with the Company on August 28, 2009.

 

In order to ensure that the Pledgee will be
able to collect the consulting service fees normally from the Company pursuant
to the Service Agreement, the Pledgors hereby pledge all their equity interest
in the Company as security for the consulting service fees under the Service
Agreement.

 

NOW THEREFORE, the Pledgors and the
Pledgee through mutual negotiations hereby enter into this Agreement based upon
the following terms:

 

1.             DEFINITIONS

 

1.1           “Pledge” refers to the full content
of Section 2 hereof.

 

1.2           “Equity
Interest” refers to the equity interest in the Company held by the Pledgors as
follows: 27.03968% by Jin Xin, 23.48493% by Li Rubin, 15.66018% by Yao Jinbo, 2.85022%
by Zhu Changyong, 2.13499% by Deng Qiang, 20.03308% by Piao Junhong, 3.51877%
by Wang Yafei,  2.26258% by Chai
Chaoming, and 3.01557% by Song Junbo, totaling 100% of the equity interest of
the Company.

 

1.3           “Term of Pledge” refers to the period set forth in Section 3
hereof.

 

1.4           “Service Agreement” refers to the Exclusive Technology Consulting and Management Service Agreement
entered into by the Company and the Pledgee on August 28, 2009.

 

1.5           “Event of Default” refers to any event set forth in Section 7
hereof.

 

1.6           “Notice of Default” refers to the notice of default
issued by the Pledgee in accordance with this Agreement.

 

2.             Pledge

 

2.1           The Pledgors hereby pledge all their equity Interest
in the Company to the Pledgee as security for the collection of the consulting
services fees by the Pledgee under the Service Agreement.

 

2.2           Pledge hereunder refers to the rights owned by the
Pledgee, who shall be entitled to a priority in receiving payment by the
evaluation or proceeds from the auction or sale of the equity interest pledged
by the Pledgors to the Pledgee.

 

3.             Term of Pledge

 

3.1           The Pledge shall be created upon registration with the relevant
administration for industry and commerce. The Pledgors and the Pledgee shall,
in accordance with the Property Law of the People’s
Republic of 

 

2

 

China, the Measures for the Registration of Equity Pledge
with the Administrative Authority for Industry and Commerce and the
relevant laws and regulations of the People’s Republic of China (the PRC),
submit the pledge registration application to the relevant administration for
industry and commerce within ten (10) days from the date on which this
Agreement has been executed. The Term of Pledge shall be ten (10) years.
In the event of any extension of the term of the master contract secured by the
Pledge, the effective term of the Pledge hereunder shall be extended
accordingly.

 

3.2           During the Term of Pledge, the Pledgee shall be entitled to dispose of
the Pledge pursuant to this Agreement and the relevant laws and regulations of
the PRC in the event that the Company fails to pay the consulting service fees
in accordance with the Service Agreement.

 

4.             Maintenance of the Pledge Certificates

 

4.1           During the Term of Pledge hereunder, the Pledgors shall execute, or
cause the Company to execute, the Capital Contribution Certificate and
Shareholder Register, and deliver such formally executed documents to the
Pledgee for it to maintain such documents during the Term of Pledge hereunder.

 

4.2           The Pledgee shall be entitled to
collect all cash income and non-cash income, such as all dividends, generated
by the Equity Interest from the execution date of this Agreement.

 

5.             Representations and Warranties of the
Pledgors

 

5.1           Pledgors are the legal owners of the Equity Interest.

 

5.2           Any exercise by the Pledgee of its rights under this Agreement shall not
be interfered by any other party at any time.

 

5.3           The Pledgee shall have the right to dispose of and transfer the Equity
Interest in any manner set forth in this Agreement.

 

5.4           The Pledgors have not created any
other pledge on the Equity Interest or encumbered the Equity Interest to any
other party except for the Pledge.

 

6.             Covenants of the Pledgors

 

6.1           The Pledgors hereby covenant to the Pledgee that, during the term of
this Agreement, the Pledgors shall:

 

6.1.1        not
transfer the equity interest, create or permit the existence of any pledge or
other form of security thereon that may have an impact on the rights or interests of
the Pledgee, without the prior written consent of the
Pledgee, except for the transfer of equity interest to the Pledgee or a person
designated by the Pledgee pursuant to the 

 

3

 

Exclusive Purchase Right Contract entered into by the
Pledgors, Pledgee and the
Company on August 28, 2009;

 

6.1.2        comply
with the provisions of all laws and regulations applicable to the pledge of
rights, and within five (5) days of receipt of any notice, order or
recommendation issued or prepared by the relevant competent authorities
regarding the Pledge, shall present such notice, order or recommendation to the
Pledgee, and shall comply with such notice, order or recommendation or submit
objections and representations with respect to the aforementioned matters upon
the Pledgee’s reasonable request or with the consent of the Pledgee;

 

6.1.3        promptly
notify the Pledgee of any event or notice received thereby that may have an
impact on the Pledgors’ equity interest or any portion thereof, as well as any
event or notice received thereby that may change any warranty and other
obligation of the Pledgors hereunder or affect the Pledgors’ performance of their obligations
hereunder.

 

6.2          The Pledgors agree that the rights acquired by the Pledgee in accordance
with this Agreement with respect to the Pledge shall not be interrupted or
harmed by the Pledgors or any successors thereof or any person authorized
thereby or any other person through any legal
proceeding.

 

6.3           To protect or perfect the security hereunder for payment of the
consulting service fees under the Service Agreement, the Pledgors hereby
undertakes to the Pledgee that it shall execute in good faith and cause other
parties who have an interest in the Pledge to execute all title certificates
and deeds and/or take and cause other parties who have an interest in the Pledge to  take action as required by the Pledgee,
facilitate the exercise by the Pledgee of the rights and authority granted
thereto by this Agreement, enter into all relevant documents regarding
ownership of equity interest with the Pledgee or its designee(s) (natural
person/legal person), and provide the Pledgee within a reasonable time with all
notices, orders and decisions regarding the Pledge as deemed necessary by the
Pledgee.

 

6.4           The Pledgors hereby undertake to the Pledgee that the Pledgors shall
comply with and perform all warranties, covenants, agreements, representations
and conditions for the benefit of the Pledgee. In
the event of any failure to perform or any partial performance of such
warranties, covenants, agreements, representations and conditions, the Pledgors
shall indemnify for all losses suffered by the Pledgee resulting therefrom.

 

6.5           The Pledgors hereby undertakes to the Pledgee that the Pledgors shall be
jointly and severally liable for the obligations hereunder.

 

6.6           The Pledgors hereby irrevocably agree to waive any right of first
refusal to any transfer of equity interest resulting from the Pledgee’s
exercise of the Pledge with respect to the Equity Interest pledged as security
by any other shareholders of the Company to the Pledgee.

 

4

 

7.             Events of Default

 

7.1           The following events shall be deemed as the events of default:

 

7.1.1        The
Company fails to make full payment of the consulting service fees as scheduled
under the Service Agreement;

 

7.1.2        The
Pledgors make any materially false or misleading representations or warranties
under Section 5 hereof, and/or the Pledgors breach the representations or
warranties under Section 5 hereof;

 

7.1.3        The
Pledgors breach the covenants under Section 6 hereof;

 

7.1.4        The
Pledgors breach any provision hereof;

 

7.1.5        The
Pledgors waive the pledged equity interest or transfer the pledged equity
interest without the prior written consent of the Pledgee except as provided in
Section 6.1.1 hereof;

 

7.1.6        Any
borrowing, guarantee, indemnification, commitment or other debt service
liability of the Pledgors (i) has been required to be payable or performed
prior to maturity as a result of any breach; or (ii) has become due but cannot
be paid or performed in a timely manner, causing the Pledgee to believe that
the ability of the Pledgors to perform the obligations hereunder has been
affected;

 

7.1.7        The
Pledgors are incapable of repaying the general debt or other debt;

 

7.1.8        Due
to the promulgation of the relevant laws, this Agreement becomes illegal, or
the Pledgors are not capable of continuing to perform the obligations hereof;

 

7.1.9        All
government consents, permits, approvals or authorizations necessary for the
enforcement or effectiveness of this Agreement have been revoked, suspended,
invalidated or materially changed;

 

7.1.10      The
property of the Pledgors is adversely affected, causing the Pledgee to believe
that the ability of the Pledgors to perform the obligations hereof has been
adversely affected;

 

7.1.11      The
successors or agents of the Pledgors are only able to perform a portion of or
refuse to perform the payment obligations under the Service Agreement;

 

7.1.12      Any
other circumstance in which the Pledgee cannot exercise its right of disposal
with respect to the Pledge as required by the relevant laws.

 

7.2         The
Pledgors shall immediately give a written notice to the Pledgee if

 

5

 

the Pledgors are aware of or discover that any event
described in Section 7.1 hereof or any event that may result in the
foregoing events has occurred.

 

7.3           Unless
the event of default under Section 7.1 hereof has been solved to the
Pledgee’s satisfaction, the Pledgee, at any time when the event of default by
the Pledgors occurs or thereafter, may give a written notice of default to the Pledgors
and require the Pledgors to immediately make full payment of the outstanding
fees under the Service Agreement and other payables or dispose of the Pledge in
accordance with Section 8 hereof.

 

8.             Exercise of Pledge

 

8.1           Prior to full payment of the consulting service fees under the Service
Agreement, the Pledgors shall not transfer the Pledge without the prior written
consent of the Pledgee.

 

8.2           Upon exercise of the Pledge, the Pledgee shall give a notice of default
to the Pledgors.

 

8.3           Subject to Section 7.3, the Pledgee, at any time
when or after giving a notice of default pursuant to Section 7.3, may
exercise its right of disposal with respect to the Pledge.

 

8.4           The Pledgee shall be entitled to
priority in receiving payment by the evaluation or proceeds from the auction or
sale of whole or part of the equity interest set forth herein in accordance
with legal procedure, until the outstanding consulting
service fees under the Service Agreement and other payables are repaid.

 

8.5           The Pledgors shall not hinder the Pledgee from disposing of the Pledge
hereunder, and shall provide necessary assistance so that the Pledgee may
realize its Pledge.

 

9.             Assignment

 

9.1           The Pledgors
shall not donate or transfer its rights and obligations hereunder without the
prior consent of the Pledgee.

 

9.2           This Agreement shall be binding upon
the Pledgors and their successors and be binding on the Pledgee and each of its
successors and assignees.

 

9.3           The Pledgee may transfer any or all
of its rights and obligations under the Service Agreement to its designee(s) (natural
person or legal entity) at any time. In this case, the assignee shall enjoy and
undertake the same rights and obligations of the Pledgee hereunder, as if the
assignee is a party hereto. When the Pledgee transfers the rights and
obligations under the Service Agreement, at the request of the Pledgee, the
Pledgors shall

 

6

 

execute the
relevant agreements and/or documents with respect to such transfer.

 

9.4           In the event of a change of the Pledgee resulting from
the transfer, the successor parties to the pledge shall execute a new pledge
contract.

 

10.          Termination

 

Upon payment of the consulting service fees under the
Service Agreement and release of the Company’s obligations thereunder, this
Agreement shall terminate, and the Pledgee shall, as soon as reasonably
practicable, cancel or discharge this Agreement.

 

11.          Formality Fees and Other
Expenses

 

11.1         The Pledgors shall be responsible
for all fees and actual expenses in relation to this Agreement, including, but
not limited to, legal fees, cost of production, stamp tax and any other taxes
and expenses. If the Pledgee pays the relevant taxes as required by law, the
Pledgors shall fully indemnify the Pledgee for the taxes and expenses paid by
the Pledgee.

 

11.2         The
Pledgors shall be responsible for all fees (including, but not limited to, any
taxes, formality fees, administration fees, litigation fees, attorney’s fees
and various insurance premiums in connection with the disposal of the Pledge)
incurred in connection with any failure by the Pledgors to pay any taxes or
expenses payable hereunder or any other reason which cause the Pledgee to
recourse by any means or ways.

 

12.          Force Majeure

 

12.1         If the performance of this Agreement is delayed or prevented by any “force
majeure event”, the party affected by such force majeure event shall be
relieved from any liability hereunder only to the extent of such delay or
prevention. A “force majeure” event means any event which is beyond the
reasonable control of a party and which remains unavoidable despite reasonable
care on the part of such affected party, including without limitation acts of
government, acts of God, fire, explosion, geographic change, storm, flood,
earthquake, tide, lightening or war. Any inadequacy in creditworthiness,
capital or financing shall not be deemed an event beyond the reasonable control
of a party. The party affected by a force majeure event seeking to be excused
from performance of its obligations under this Agreement or any provision
hereof shall notify the other party of such excusing event as well as the steps
to be taken by it for the purpose of performance of such obligations.

 

12.2         The
party affected by a force majeure event shall be relieved from any liability
hereunder with respect thereto, provided that the party seeking to be excused
from performance of obligations shall only be relieved from such liability to
the extent that such affected party use its reasonable and practicable efforts
to perform the Agreement and only within the scope of such delay or prevention. The parties agree to use their best efforts to

 

7

 

resume the performance hereunder immediately after the
event resulting in such excuse from liability has been cured and remedied.

 

13.          Dispute Resolution

 

13.1         This Agreement shall be governed by,
and construed in accordance with, the laws of the PRC.

 

13.2         Any
dispute between the parties hereto in connection with the interpretation or
performance of the provisions hereof shall be resolved in good faith by the
parties through consultations. If the parties fail to resolve any dispute
within thirty (30) days of receipt of a written notice served by one party on
the other party requesting such consultations, either party may submit the
dispute to China International Economic and Trade Arbitration Commission for
arbitration in accordance with the then effective arbitration rules of
such commission. The place of arbitration shall be Beijing. The language of
arbitration shall be Chinese. The arbitration award shall be final and shall be
binding upon both parties.

 

14.          Exhibits

 

The Exhibits attached to this Agreement shall
constitute an integral part of this Agreement.

 

15.          Severability

 

If any provision hereof is found invalid or
unenforceable due to any inconsistency with relevant laws, such provision shall
be invalid or unenforceable only to the extent of the scope of application of
such laws and shall not affect the legal validity of any other provision of
this Agreement.

 

16.          Effectiveness

 

16.1         This Agreement and any amendments,
supplements or changes hereto shall be in writing and come into effect after
being executed and sealed by the parties.

 

16.2         This
Agreement is made in Chinese in eleven (11) originals with equal legal
validity.

 

8

 

SIGNATURE PAGE (WITH NO TEXT)

 

 

	
  Pledgee:

  	
  Xuecheng Century (Beijing) Information Technology
  Co., Ltd. (Seal)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorized Representative:

  	
    /s/ HSU WILLIAM SHANG WI

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  HSU WILLIAM SHANG WI

  
					

 

 

Pledgors:

 

 

	
  Jin Xin

  	
   

  	
   

  	
  Li Rubin

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
    /s/ Jin Xin

  	
   

  	
  Signature:

  	
    /s/ Li Rubin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Yao Jinbo

  	
   

  	
   

  	
  Zhu Changyong

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
    /s/ Yao Jinbo

  	
   

  	
  Signature:

  	
    /s/ Zhu Changyong

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Deng Qiang

  	
   

  	
   

  	
  Piao Junhong

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
    /s/ Deng Qiang

  	
   

  	
  Signature:

  	
    /s/ Piao Junhong

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Wang Yafei

  	
   

  	
   

  	
  Chai Chaoming

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
    /s/ Wang Yafei

  	
   

  	
  Signature:

  	
    /s/ Chai Chaoming

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Song Junbo

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
    /s/ Song Junbo

  	
   

  	
   

  	
   

  

 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00179-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00179-of-00352.parquet"}]]