Document:

Exhibit 10.1

 

PLEDGE AND ESCROW AGREEMENT

by and among

GSV CAPITAL CORP., as Pledgor,

U.S.
Bank national association, as Trustee,

and

U.S. Bank national association, as Securities Intermediary and Escrow
Agent

Dated as of September 17, 2013

 

    	 

    	 

    

PLEDGE AND ESCROW AGREEMENT

 

THIS PLEDGE AND ESCROW AGREEMENT
(this “Agreement”), dated as of September 17, 2013, is by and among GSV Capital Corp. (the “Company”),
as pledgor, U.S. Bank National Association, as trustee under the Indenture referred to below (in such capacity, the “Trustee”),
and U.S. Bank National Association, as securities intermediary and escrow agent (in such capacities, the “Escrow Agent”).
The Company and the Trustee are sometimes referred to herein, collectively, as the “Interested Parties.”

 

RECITALS

 

The Company and the Trustee have entered
into an Indenture, dated as of September 17, 2013 (the “Indenture”), between the Company and the Trustee pursuant
to which the Company will issue up to $69,000,000 of its 5.25% Convertible Senior Notes due 2018 (the “Notes”),
and may from time to time thereafter issue additional Notes pursuant to Section 2.10 of the Indenture.

 

The Company desires to establish an escrow
account with the Escrow Agent into which certain sums as fully described in Section 2(a) below will be, simultaneously with the
original issuance of the Notes (or simultaneously with the issuance of any additional Notes pursuant to Section 2.10 of the Indenture),
deposited by the Company to be held and distributed in accordance with the terms and conditions set forth herein, and the Escrow
Agent is willing to establish such an account and to accept such funds in accordance with the terms hereinafter set forth.

 

Capitalized terms used but not defined herein
shall have the meanings assigned to such terms in the Indenture.

 

AGREEMENT

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

Section 1.  Establishment of Escrow
Account. The Escrow Agent shall establish on the date hereof and maintain in the Trustee’s name a “securities account”
(within the meaning of Article 8 of the Uniform Commercial Code of the State of New York as in effect from time to time (the “New
York UCC”)) (the “Escrow Account”) to which there shall be immediately credited and held amounts
received by the Escrow Agent from the Company in accordance with Section 4 hereof. The funds credited to the Escrow Account shall
be applied and disbursed only as provided herein. The Escrow Agent shall segregate the funds credited to the Escrow Account from
its other funds held as an agent or in trust. The Escrow Agent shall treat all property held by it in the Escrow Account (including
any cash) as “financial assets” (as defined in Section 8-l02(a)(9) of the New York UCC) in accordance with Section
8-501 (or successor section) of the New York UCC.

 

Section 2. Deposit To The Escrow Account;
Investments.

 

(a)Deposit To The Escrow Account

 

    	 

    	 

    

(i)Simultaneously with the original
issuance of the Notes, the Company shall deliver to the Escrow Agent for deposit in the Escrow Account an amount equal to $10,867,500
(the “Initial Escrow Funds”).

 

(ii)If any additional Notes are issued
at any time, pursuant to Section 2.10 of the Indenture, the Company shall, simultaneously with such issuance of Notes, deliver
to the Escrow Agent for deposit in the Escrow Account an additional amount of cash sufficient to cause the Excess Escrow Amount
(determined after giving effect to such issuance) for each Scheduled Interest Payment Date to be at least equal to $0 (together
with the Initial Escrow Funds and any funds deposited pursuant to Section 5(d), the “Escrow Funds”).

 

(iii)All amounts to be deposited with
the Escrow Agent shall be transferred by wire transfer of immediately available funds to the following account:

 

U.S. Bank, Boston, MA

ABA No.: 091000022

Account No.: 173103321092

Account Name: US Bank CT Muni

Ref: GSV Escrow (or conversely for the Trust - GSV
Bond Fund)

Attention: Karen Beard

 

(b)Promptly following the deposit of
any funds into the Escrow Account, if the Escrow Agent shall have received specific written investment instruction from the Company
(as set forth below), the Escrow Agent shall invest such funds in the name of the Trustee in Government Securities as instructed
by the Company. The Escrow Agent shall use commercially reasonable efforts to invest the Escrow Funds on deposit, but in any event
will invest such Escrow Funds no later than the following Business Day (as such term is defined in the Indenture) after receipt
thereof. For purposes of this Agreement, “Government Securities” shall mean (i) noncallable direct obligations
of, or noncallable obligations the payment of principal of and interest on which are unconditionally guaranteed by, the United
States of America; and (ii) holdings in any mutual fund or similar investment vehicle that holds only cash and securities of the
types set forth in (i) above with a maturity not greater than 12 months. Promptly following the deposit of any funds into the Escrow
Account, the Company shall provide written instructions to the Escrow Agent as to the specific Government Securities in which funds
are to be invested and until such instructions are given by the Company, the Escrow Agent shall not invest such funds; provided
that at all times, with respect to each Scheduled Interest Payment Date, (x) the sum of (1) the aggregate amount payable
at maturity of all Government Securities of the type set forth in clause (i) of the definition thereof that mature on or before
such Scheduled Interest Payment Date, (2) the face amount of cash held in the Escrow Account and (3) 97% of the net asset
value of Government Securities set forth in clause (ii) of the definition thereof less (y) the aggregate amount of
Scheduled Interest Payments payable on all outstanding Notes on or before such Scheduled Interest Payment Date (such difference
of clause (x) minus clause (y), with respect to each Scheduled Interest Payment Date, the “Excess Escrow Amount”)
shall not be less than $0.00. All such amounts shall remain so invested until the close of business on the Business Day prior to
any withdrawal by the Escrow Agent pursuant to Section 5 hereof. The Escrow Agent shall have no liability for any investment losses
on such investments made at the instruction of the Company, including without limitation any market loss on any investment liquidated
prior to maturity in order to make a payment required hereunder. All Government Securities and other financial assets (except cash)
from time to time credited to the Escrow Account shall be registered in the name of the Escrow Agent, endorsed to the Escrow Agent
or in blank or credited to another securities account maintained in the name of the Escrow Agent, in each case in the Escrow Agent’s
capacity as securities intermediary, and in no event shall any such financial assets be registered in the name of the Company,
payable to the order of the Company or specially endorsed to the Company unless further endorsed to the Escrow Agent or in blank.
Each of the Interested Parties acknowledge and agree that the Escrow Agent is providing no investment advice and is not responsible
for any of the investment decisions made by the Interested Parties. In order for the Company to instruct the Escrow Agent to invest
the Escrow Funds in a mutual fund or similar investment vehicle in accordance herewith, the Company shall deliver to the Escrow
Agent an authorization letter substantially in the form attached hereto as Schedule 1. In order for the Company to instruct the
Escrow Agent to make any investment with Escrow Funds through the Money Center at U.S. Bank, the Company shall deliver to the Escrow
Agent an authorization letter substantially in the form attached hereto as Schedule 2.

 

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Section 3. Tax Matters

 

(a)The Interested Parties agree that,
unless otherwise specified in this Agreement, any investment income earned (or proceeds received), prior to the disbursement of
the Escrow Funds on deposit, during a calendar year period from the investment of such Escrow Funds, shall be treated as the income
of the Company and shall be reported on an annual basis by the Escrow Agent on the appropriate Form 1099 (or Form 1042-S), as required
pursuant to the Internal Revenue Code (“Code”) and the regulations thereunder. Upon execution of this Agreement, the
Company shall provide the Escrow Agent with a fully executed IRS Form W-9.

 

(b)If the Escrow Agent is required
under the Code and regulations to withhold tax on any investment income earned (or proceeds received) from the Escrow Funds on
deposit prior to the release of the Escrow Funds, such withholdings will be taken from the Escrow Funds and deposited with the
IRS in the manner prescribed.

 

The Interested Parties agree that the
Escrow Agent shall report the distribution of the Escrow Funds on Form 1099-B to the Interested Party (or other party (or parties))
to whom the applicable Escrow Funds is distributed, if so required under Code Section 6045 and the regulations thereunder.

 

Section 4. Security Interest.

 

(a)Pledge and Assignment. As security
for the Secured Obligations (as defined below), the Company hereby irrevocably pledges, assigns and grants to the Trustee, for
the equal and ratable benefit of the Holders of the Notes, a first priority continuing security interest in, and control of, all
of the Company’s right, title and interest in and to all of the following whether now owned or existing or hereafter acquired
or created (collectively, the “Collateral”):

 

(i)the Escrow Account, all security
entitlements from time to time carried in the Escrow Account, all funds from time to time held in the Escrow Account, including,
without limitation, the Escrow Funds and all certificates and instruments, if any, from time to time, representing or evidencing
the Escrow Account or the Escrow Funds and all other financial assets from time to time credited to the Escrow Account, and any
security entitlements in respect thereof;

 

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(ii)all investments of funds in the
Escrow Account, all of which shall constitute Government Securities, all certificates and instruments, if any, from time to time
representing or evidencing any such Government Securities and all security entitlements to such Government Securities;

 

(iii)all promissory notes, certificates
of deposit, deposit accounts, checks and other instruments evidencing Government Securities from time to time hereafter delivered
to or otherwise possessed by the Escrow Agent, for or on behalf of the Company, in substitution for or in addition to any or all
of the then existing Collateral;

 

(iv)all interest, dividends, cash,
instruments, securities and other properties from time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of the then existing Collateral; and

 

(v)all proceeds of the foregoing.

 

The Trustee hereby appoints the
Escrow Agent to act as the Trustee’s agent, on behalf of the Holders of the Notes, for purposes of perfecting the foregoing
pledge, assignment and security interest in the Collateral, and the Escrow Agent hereby accepts such appointment. For so long as
the foregoing pledge, assignment and security interest remains in effect, the Escrow Agent hereby waives any right of set off or
banker’s lien that it, in its individual capacity or in its capacity as an agent for Persons other than the Trustee and the
Holders of the Notes, may have with respect to any or all of the Collateral.

 

(b)Secured Obligations. This
Agreement secures the due and punctual payment and performance of all obligations of the Company, whether now or hereafter existing,
under the Notes, the Indenture and this Agreement, including, without limitation, principal of, and interest, if any, accrued on,
the Notes (including any interest accrued after the commencement of a bankruptcy, reorganization or similar proceeding involving
the Company at the rate specified in the Indenture to the extent permitted by applicable law) and any Interest Make-Whole Payment
(collectively, the “Secured Obligations”).

 

(c)Delivery of Collateral. All
certificates or instruments, if any, representing or evidencing all or any portion of the Collateral shall be held by the Escrow
Agent on behalf of the Trustee pursuant hereto and shall be in suitable form for transfer by delivery, or shall be accompanied
by duly executed instruments of transfer or assignments in blank, all in form and substance reasonably satisfactory to the Trustee,
and all in form and substance sufficient to convey a valid security interest in such Collateral to the Trustee. All securities
in uncertificated or book-entry form and all security entitlements, if any, in each case representing or evidencing the Collateral
shall be registered in the name of the Escrow Agent (or any of its nominees), by book-entry or as otherwise appropriate so as to
properly identify the interest of the Escrow Agent in its capacity as securities intermediary therein and credited to the Escrow
Account. In addition, upon written direction to the Escrow Agent, the Trustee shall have the right, at any time following the occurrence
of an Event of Default, to transfer to or to register in the name of the Trustee or any of its nominees any or all Collateral.
Except as otherwise provided herein, all Collateral shall be deposited and held in the Escrow Account. The Escrow Agent shall have
the right at any time to exchange certificates or instruments representing or evidencing all or any portion of the Collateral for
certificates or instruments of smaller or larger denominations in the same aggregate amount.

 

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(d)Maintaining the Escrow Account.
So long as this Agreement is in full force and effect:

 

(i)subject to the other terms and conditions
of this Agreement, all Collateral held by the Escrow Agent pursuant to this Agreement shall be held in the Escrow Account, which
shall be subject to the exclusive dominion and control of the Trustee for the equal and ratable benefit of the Holders of the Notes;

 

(ii)the Escrow Account and all Collateral
from time to time held therein or credited thereto shall remain segregated from all other funds or other property otherwise held
by the Trustee or the Escrow Agent, as applicable;

 

(iii)all amounts (including, without
limitation, any Escrow Funds or interest on or other proceeds of the Escrow Funds or any Government Securities held in the Escrow
Account) shall remain on deposit in the Escrow Account until withdrawn in accordance with this Agreement; and

 

(iv)the Escrow Agent shall take all
steps necessary to ensure that the Escrow Agent, in its capacity as securities intermediary for the benefit of the Trustee and
the equal and ratable benefit of the Holders of the Notes, is the holder or entitlement holder of all Government Securities and
other uncertificated securities on the books of the applicable Federal Reserve Bank or other applicable securities intermediary.

 

(e)Further Assurances. Prior
to, contemporaneously herewith, and at any time and from time to time hereafter, the Company shall, at the Company’s expense,
execute and deliver to the Trustee or its designee such other instruments and documents, and take all further action as the Trustee
deems reasonably necessary or advisable or may reasonably request to confirm or perfect the security interest of the Trustee granted
or purported to be granted hereby or to enable the Trustee to exercise and enforce its rights and remedies hereunder with respect
to any Collateral, and the Company shall take all necessary action to preserve and protect the security interest created hereby
as a first priority, perfected lien and encumbrance upon the Collateral.

 

Section 5. Distributions
from Escrow Account. Funds (or Government Securities that are scheduled to mature or that can be liquidated on or before
the date of the applicable Scheduled Interest Payment) on deposit in the Escrow Account shall be withdrawn by the Escrow Agent
and transferred only in accordance with this Section 5:

 

(a)Default.

 

(i)For so long as a Default has occurred
and is continuing under the Indenture, no amounts shall be disbursed from the Escrow Account, except as provided in Section 5(a)(ii)
below.

 

(ii)If (A) any Event of Default has
occurred and is continuing under Section 6.01(a), (c) or (d) of the Indenture or (B) any other Event of Default has occurred and
is continuing that results in the acceleration of the payment of principal of, and accrued and unpaid interest on, the Notes pursuant
to the terms of the Indenture:

 

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(1)The Trustee may, without
notice to the Company except as required by applicable law and at any time or from time to time, direct the Escrow Agent in writing
to liquidate all Collateral or any portion thereof and transfer all proceeds thereof to the Trustee to apply such funds in accordance
with Section 6.05 of the Indenture.

 

(2)The Trustee (and/or the
Escrow Agent at the written direction of the Trustee and on its behalf) may also, in addition to the other rights and remedies
provided for herein, exercise in respect of the Collateral all the rights and remedies of a secured party upon default under the
New York UCC, and may also, without notice except as specified below, sell the Collateral or any part thereof in one or more parcels
at public or private sales, at any of the Trustee’s or the Escrow Agent’s offices or elsewhere, for cash, on credit
or for future delivery, and upon such other terms as the Trustee may deem commercially reasonable. The Company agrees that the
Government Securities constitute collateral of the type customarily sold on a recognized market. The Trustee (and/or the Escrow
Agent at the written direction of the Trustee and on its behalf) may adjourn any public or private sale from time to time by announcement
at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was
so adjourned.

 

(3)Any cash held by the Escrow
Agent as Collateral and all net cash proceeds received by the Trustee or the Escrow Agent in respect of any sale or liquidation
of, collection from, or other realization upon all or any part of the Collateral may, in the discretion of the Trustee, be held
by the Trustee or the Escrow Agent (at the written direction of the Trustee and on its behalf) as collateral for, and then or at
any time thereafter be applied (after payment of any costs and expenses incurred in connection with any sale, liquidation or disposition
of or realization upon the Collateral and the payment of any amounts payable to the Trustee or the Escrow Agent and their respective
counsel) in whole or in part by the Trustee for the equal and ratable benefit of the Holders of the Notes against all or any part
of the Secured Obligations in such order as described in Section 6.05 of the Indenture.

 

(b)Scheduled Interest Payments.
Pursuant to the Notes and Sections 2.03 and 4.01 of the Indenture, the Company is obligated to make payments of interest on the
Notes on each of March 15, 2014, September 15, 2014, March 15, 2015, September 15, 2015, March 15, 2016 and September 15, 2016
(each such payment, a “Scheduled Interest Payment”, and each such date, a “Scheduled Interest Payment
Date”). The Scheduled Interest Payments due on the Notes may be made, at the election of the Company, from (1) amounts
held in the Escrow Account in accordance with the procedures set forth in Section 5(b)(i) below, or (2) other sources of funds
available to the Company, as contemplated in Section 5(b)(ii) below, or from any combination of (1) and (2) above; provided,
however, that nothing herein shall be construed as limiting the Company’s obligation to make all interest payments
due on the Notes at the times and in the amounts required by the Notes, which obligation shall be absolute and unconditional.

 

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(i)Payment of Interest. If the
Company elects to cause a Scheduled Interest Payment to be made using funds held in the Escrow Account, then, not later than five
(5) Business Days prior to the date of the applicable Scheduled Interest Payment, the Company shall direct the Escrow Agent in
writing to transfer from the Escrow Account to the Paying Agent funds (or Government Securities that are scheduled to mature or
that can be liquidated on or before the date of the applicable Scheduled Interest Payment) necessary to provide for payment in
full (or, if the Company intends to make a portion of such interest payment with funds or Government Securities in the Escrow
Account and the remainder of such interest payment with funds other than those in the Escrow Account, such portion) of the next
Scheduled Interest Payment on the Notes. At or prior to 11:00 a.m., New York City time, on the day that is no later than one (1)
Business Day following receipt of such notice, the Escrow Agent shall transfer such funds (or such Government Securities, as applicable)
to the Paying Agent as set forth in Section 5(e)(ii) hereof, and shall notify the Company in writing that it has made such transfer
to the Paying Agent. If the Company does not intend to utilize the funds (or Government Securities) in the Escrow Account
to make any such Scheduled Interest Payment in full, or does not direct the Escrow Agent in writing to make any such Scheduled
Interest Payment, then the Company shall make the Scheduled Interest Payment from Company Funds (as defined in Section 5(b)(ii)
below).

 

(ii)Release of Funds to the Company
Due to Direct Payment of Interest by the Company. If the Company makes any Scheduled Interest Payment or a portion of any Scheduled
Interest Payment from a source of funds other than the Escrow Account (“Company Funds”), the Company may, after
payment in full of such Scheduled Interest Payment and upon at least five (5) Business Days’ prior notice, direct the Escrow
Agent in writing, so long as no Default has occurred and is continuing, to release to the Company (or at the written direction
of the Company, to release to a designated third party) an amount of funds or Government Securities from the Escrow Account in
accordance with Section 5(d), as long as following such release the Excess Escrow Amount would be at least $0.00 for all Scheduled
Interest Payment Dates. Upon receipt of such notice, the Escrow Agent shall pay over or transfer to the Company the requested amount.

 

(c)Early Conversion Make Whole Amount.

 

(i)Upon written notice and direction
from the Trustee that any Notes have been submitted for conversion pursuant to the terms of the Indenture prior to September 15,
2016, unless such Notes are converted in connection with a Make-Whole Adjustment Event to which Section 14.03 of the Indenture
applies, the Escrow Agent shall liquidate a portion of the Collateral equal to the Allocable Collateral multiplied by the
number of Notes in principal amount of $1,000 submitted for conversion as calculated by the Company, rounded down to the nearest
whole multiple of the minimum denomination of the relevant Government Securities; provided that if any Notes are converted
between the close of business on a Record Date but prior to the next Interest Payment Date, any portion of the applicable Allocable
Collateral relating to the pro rata amount of interest payable on such Interest Payment Date and maturing on such Interest Payment
Date shall not be liquidated and instead shall be released in accordance with Section 5(b)(i) or 5(b)(ii) above, as the case may
be. For purposes hereof, “Allocable Collateral” means the percentage of the Collateral applicable to $1,000
principal amount of Notes, which shall be determined by the Company, as of any date, by dividing $1,000 by the aggregate original
principal amount of Notes outstanding as of such date expressed as a percentage.

 

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(ii)Upon such written notice and direction
from the Trustee, the Escrow Agent shall release the proceeds of the liquidation of the Collateral described in Section 5(c)(i)
above to the Trustee to the extent necessary to pay to the converting Holders as the Interest Make-Whole Payment.

 

(d)Excess Escrow Funds; Additional
Deposits. If, at any time, the Excess Escrow Amount is greater than $0.00 for all Scheduled Interest Payment Dates, the Company
may, upon at least five (5) Business Days’ prior written notice (accompanied by an Officers’ Certificate containing
a calculation of such excess amounts), direct the Escrow Agent in writing, so long as no Default has occurred and is continuing,
to release to the Company (or at the written direction of the Company, to release to a designated third party) an amount of funds
or Government Securities from the Escrow Account, as long as, following such release, the Excess Escrow Amount would be at least
equal to $0.00 for all Scheduled Interest Payment Dates. Upon receipt of such notice and such Officers’ Certificate, the
Escrow Agent shall pay over or transfer to the Company (or its designated third party, as the case may be) the requested amount
or Government Securities. If, at any time, the Excess Escrow Amount with respect to any Scheduled Interest Payment Date is negative,
the Company shall, as promptly as practicable (and, in any event, within five (5) Business Days), deposit additional funds into
the Escrow Account in an amount sufficient to cause the Excess Escrow Amount to be at least equal to $0.00 for all Scheduled Interest
Payment Dates, and such funds shall thereafter be considered “Escrow Funds” for all purposes hereunder.

 

(e)Wire Transfer.

 

(i)All funds distributed from the Escrow
Account to the Company shall be transferred by wire transfer of immediately available funds to the following account:

 

U.S. Bank, N.A.

Minneapolis, MN

ABA # 091000022

DDA #104790617989

Acct Name: GSV Capital

Ref:  GSV Capital “Name of Equity/Assignment”

 

(ii)All funds (or Government Securities
that are scheduled to mature or that can be liquidated on or before the date of the applicable Scheduled Interest Payment) distributed
from the Escrow Account to the Trustee for payment on the Notes shall be transferred by an account-to-account transfer of immediately
available funds to the following account:

 

U.S. Bank, Boston, MA

ABA No.: 091000022

Account No.: 173103321092

Account Name: US Bank CT Muni

Ref: GSV Escrow (or conversely for
the Trust - GSV Bond Fund)

Attention: Karen Beard

 

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(f)Written Instructions; Certificates.
The Company shall, upon request by the Escrow Agent, execute and deliver to the Escrow Agent such additional written instructions
and certificates hereunder as may be reasonably required by the Escrow Agent to give effect to this Section 5.

 

Section 6. Termination
of Security Interest. Upon (i) payment in full of all Scheduled Interest Payments and (ii) receipt by the Escrow Agent of an
Officers’ Certificate certifying that no Default has occurred and is continuing, the security interest evidenced by this
Agreement in any Collateral remaining in the Escrow Account shall automatically terminate and be of no further force and effect.
Furthermore, upon the release of any Collateral from the Escrow Account in accordance with the terms of this Agreement, whether
upon release of such Collateral to Holders of Notes as payment of interest on the Notes, to the Company pursuant to Sections 5(b)(ii),
5(c) or 5(d) or otherwise, the security interest evidenced by this Agreement in such Collateral so released shall automatically
terminate and be of no further force and effect. The Trustee and the Escrow Agent shall, upon request by the Company, execute and
deliver to the Company such additional written instructions and certificates hereunder as may be reasonably required by the Company
to give effect to this Section 6.

 

Section 7. Attorneys-in-Fact.
The Company hereby irrevocably appoints each of the Trustee and the Escrow Agent as the Company’s attorney-in-fact, coupled
with an interest, with full authority in the place and stead of the Company and in the name of the Company or otherwise, from time
to time in the Trustee’s or the Escrow Agent’s discretion to take any action and to execute any instrument that the
Trustee or the Escrow Agent may deem necessary or advisable to accomplish the purposes of this Agreement, including, without limitation,
to receive, endorse and collect all instruments made payable to the Company representing any interest payment, dividend or other
distribution in respect of the Collateral or any part thereof and to give full discharge for the same, and the expenses of the
Trustee and the Escrow Agent (and their respective counsel) incurred in connection therewith shall be payable by the Company.

 

Section 8. Trustee or Escrow
Agent May Perform. Without limiting the authority granted under Section 7 hereof, if the Company fails to perform any agreement
contained herein, the Trustee or the Escrow Agent may, but shall not be obligated to, itself perform, or cause performance of,
such agreement, and the expenses of the Trustee or the Escrow Agent (and their respective counsel) incurred in connection therewith
shall be payable by the Company and shall be secured by the Collateral.

 

Section 9. Representations,
Warranties and Agreements.

 

(a)The Company represents and warrants
that:

 

(i)The execution, delivery and performance
by the Company of this Agreement are within its corporate power, have been duly authorized by all necessary corporate action of
the Company, and do not contravene, or constitute a default under, any provision of applicable law or regulation or of any judgment,
injunction, order or of any material agreement or other material instrument binding upon the Company or of the certificate of incorporation
or by-laws of the Company or result in the creation or imposition of any Lien on any assets of the Company other than the Lien
contemplated hereby.

 

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(ii)The Company is (A) duly organized,
validly existing and in good standing under the laws of the State of Maryland, (B) has full corporate power and authority to enter
into this Agreement and (C) has the right to pledge and grant a security interest in the Collateral as provided by this Agreement.

 

(iii)This Agreement has been duly executed
and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company
in accordance with its terms except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership,
moratorium or other similar laws affecting creditors’ rights generally and by general principles of equity.

 

(iv)Upon the execution and delivery
of this Agreement by the parties hereto and the delivery to the Escrow Agent of the Collateral, the pledge of the Collateral pursuant
to this Agreement creates a valid and perfected first priority security interest in the Collateral, securing the payment of the
Secured Obligations for the benefit of the Trustee, the Escrow Agent and the Holders of the Notes, enforceable as such against
all creditors of the Company and any persons purporting to purchase any of the Collateral from each of them.

 

(v)No consent of any person and no
consent, authorization, approval, or other action by, and no notice to or filing with, any governmental authority or regulatory
body is required either (A) for the pledge by the Company of the Collateral pursuant to this Agreement or for the execution, delivery
or performance of this Agreement by the Company or (B) for the exercise by the Trustee or the Escrow Agent of the remedies in respect
of the Collateral pursuant to this Agreement.

 

(vi)No litigation, investigation or
proceeding of or before any arbitrator or governmental authority is pending or, to the best knowledge of the Company, threatened
by or against the Company or against any of its properties or revenues with respect to this Agreement or any of the transactions
contemplated hereby.

 

(vii)The pledge of the Collateral pursuant
to this Agreement is not prohibited by any applicable law or governmental regulation, release, interpretation or opinion of the
Board of Governors of the Federal Reserve System or other regulatory agency (including, without limitation, Regulations T, U and
X of the Board of Governors of the Federal Reserve System).

 

(viii)All information set forth herein
relating to the Collateral is accurate and complete in all material respects.

 

(b)The Company covenants and agrees
that:

 

1.it will not (and will not purport
to) (A) sell, assign (by operation of law or otherwise) or otherwise dispose of, or grant any option or warrant with respect to,
any of the Collateral nor (B) create or permit to exist any Lien upon or with respect to any of the Collateral (except for the
liens and security interests granted under this Agreement) and at all times will have the right to pledge the Collateral, free
and clear of any Lien or adverse claims (except for the liens and security interests granted under this Agreement);

 

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2.it will not (A) enter into any agreement
or understanding (other than the Indenture) that restricts or inhibits or purports to restrict or inhibit the Trustee’s or
the Escrow Agent’s rights or remedies hereunder, including, without limitation, their right to sell or otherwise dispose
of the Collateral or (B) fail to pay or discharge any tax, assessment or levy of any nature with respect to the Collateral not
later than three Business Days prior to the date of any proposed sale under any judgment, writ or warrant of attachment with respect
to the Collateral; and

 

3.it will not change its jurisdiction
of incorporation without 30 days’ prior written notice to the Trustee.

 

(c)The Escrow Agent represents, warrants
and agrees that it is a “securities intermediary” within the meaning of Section 8-102(a)(14) of the New York UCC and
is acting in such capacity with respect to the Escrow Account.

 

(d)The parties hereto agree that the
Trustee is the sole “entitlement holder” (as such term is defined in Section 8-102(a)(7) of the New York UCC) of the
Escrow Account and in no event shall the Company be deemed to be the entitlement holder in respect thereof.

 

(e)For purposes of this Section, “Lien”
means, with respect to any asset, any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest
in, on or of such asset.

 

Section 10. Fees
and Expenses of Escrow Agent.

 

(a)The Company agrees to pay the Escrow
Agent its agreed-upon compensation for its services as Escrow Agent hereunder promptly upon request therefor, and to reimburse
the Escrow Agent for all reasonable and documented expenses of or disbursements incurred by the Escrow Agent in the performance
of its duties hereunder, including the reasonable fees, expenses and disbursements of legal counsel to the Escrow Agent.

 

(b)The Escrow Agent shall have a lien
upon any financial assets (including cash) credited to the Escrow Account that have been released to the Company, or as to which
the Company is entitled to request, pursuant to Section 5(b)(ii) or Section 5(d), solely for any costs, expenses and fees that
may arise hereunder and may retain that portion of such assets in the Escrow Account equal to such unpaid amounts, until all such
costs, expenses and fees have been paid; provided that unless a Default shall have occurred and be continuing, such lien
shall attach only to the extent of accrued but unpaid costs, expenses and fees.

 

Section 11. Rights, Duties
and Immunities of Escrow Agent.  Acceptance by the Escrow Agent of its duties under this Agreement is subject to the following
terms and conditions, which all parties to this Agreement hereby agree shall govern and control the rights, duties and immunities
of the Escrow Agent:

 

(a)The duties and obligations of the
Escrow Agent shall be determined solely by the express provisions of this Agreement and the Escrow Agent shall not be liable except
for the performance of such duties and obligations as are specifically set out in this Agreement. The Escrow Agent shall not be
required to inquire as to the performance or observation of any obligation, term or condition under any agreement or arrangement
between the Company and the Trustee. The Escrow Agent (in such role) is not a party to, and is not bound by, any agreement or other
document out of which this Agreement may arise. The Escrow Agent (in such role) shall be under no liability to any party hereto
by reason of any failure on the part of any party hereto (other than the Escrow Agent) or any maker, guarantor, endorser or other
signatory of any document or any other person to perform such person’s obligations under any such document. The Escrow Agent
shall not be bound by any waiver, modification, termination or rescission of this Agreement or any of the terms hereof, unless
evidenced by a writing delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the
Escrow Agent are affected, unless it shall give its prior written consent thereto. This Agreement shall not be deemed to create
a fiduciary relationship between the parties hereto under state or federal law.

 

    	11

    	 

    

(b)The Escrow Agent shall not be responsible
in any manner for the validity or sufficiency of this Agreement or of any property delivered hereunder, or for the value or collectibility
of any note, check or other instrument, if any, so delivered, or for any representations made or obligations assumed by any party
other than the Escrow Agent. Nothing herein contained shall be deemed to obligate the Escrow Agent to deliver any cash, instruments,
documents or any other property referred to herein, unless the same shall have first been received by the Escrow Agent pursuant
to this Agreement. The Escrow Agent shall not be obligated to take any legal or other action hereunder which might in its judgment
involve or cause it to incur any expense or liability unless it shall have been furnished with acceptable indemnification.

 

(c)The Company shall reimburse and
indemnify the Escrow Agent (and its directors, officers and agents) for, and hold it (and such directors, officers and agents)
harmless against, any loss, liability, damage, cost or expense incurred by the Escrow Agent arising out of or in connection with
this Agreement or with the administration of its duties hereunder, including but not limited to (i) reasonable attorneys’
fees and other costs and expenses of defending or preparing to defend against any claim of liability and (ii) with respect to any
taxes, assessments, additions for late payment, interest, penalties and other governmental charges that may be assessed or asserted
against the Escrow Agent (and its directors, officers and agents) in connection with, on account of, or relating to the Escrow
Funds, the management established hereby, and any payment or distribution of or from the Escrow Funds, unless and except to the
extent any such loss, liability, damage, cost and expense shall have resulted from the Escrow Agent’s gross negligence, bad
faith, or willful misconduct.

 

(d)The Escrow Agent shall be fully
protected in acting on and relying upon any written notice, direction, request, waiver, consent, receipt or other paper or document
which the Escrow Agent in good faith believes to have been signed and presented by the Company.

 

(e)The Escrow Agent shall not be liable
for any error of judgment, or for any act done or step taken or omitted by it or for any mistake in act or law, or for anything
which it may do or refrain from doing in connection herewith, except its own gross negligence, bad faith or willful misconduct.

 

(f)The Escrow Agent may consult counsel
satisfactory to it, including in-house counsel, and the opinion or advice of such counsel in any instance shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance
with the opinion or advice of such counsel.

 

(g)The Escrow Agent shall have no more
or less responsibility or liability on account of any action or omission of any book-entry depository, securities intermediary
or other subescrow agent employed by the Escrow Agent than any such book-entry depository, securities intermediary or other subescrow
agent has to the Escrow Agent, except to the extent that such action or omission of any book-entry depository, securities intermediary
or other subescrow agent was caused by the Escrow Agent’s own gross negligence, bad faith or willful misconduct.

 

    	12

    	 

    

(h)The Escrow Agent is hereby authorized,
in making or disposing of any investment permitted by this Agreement, to deal with itself (in its individual capacity) or with
any one or more of its affiliates, whether it or such affiliate is acting as a subagent of the Escrow Agent or for any third person
or dealing as principal for its own account.

 

(i)The Escrow Agent shall not be required
or obligated to distribute any Escrow Funds (or take other action that may be called for hereunder to be taken by the Escrow Agent)
sooner than two (2) Business Days, or such shorter time period as may be specified in this Agreement, after (i) it has received
the applicable documents required under this Agreement in good form, or (ii) passage of the applicable time period (or both, as
applicable under the terms of this Agreement), as the case may be.

 

(j) Unless and except to the extent
otherwise expressly set forth herein, all deposits and payments hereunder, or pursuant to the terms hereof shall be in U.S. dollars.

 

(k)The parties hereto agree that if
the Escrow Agent is notified by the Trustee, the Company or the Holders of the Notes of any dispute with respect to the payment,
ownership or right of possession of the Escrow Account, the Escrow Agent is authorized and directed to retain in its possession,
without liability to anyone, except for its bad faith, willful misconduct or gross negligence, all or any part of the Escrow Account
until such dispute shall have been settled either by mutual agreement by the parties concerned or by the final order, decree or
judgment of a court or other tribunal of competent jurisdiction in the United States of America, and, in the case of a mutual agreement,
a notice executed by the parties to the dispute or their authorized representatives shall have been delivered to the Escrow Agent
setting forth the resolution of the dispute. The Escrow Agent shall be under no duty whatsoever to institute, defend or partake
in such proceedings. Unless such dispute shall have been settled by mutual agreement of the parties, the Escrow Agent shall be
entitled to receive (from and at the expense of the claiming party) an opinion of counsel to the effect that any order, judgment
or decree is final and not subject to appeal. The Escrow Agent shall have the option, after thirty (30) calendar days’ notice
to the Interested Parties of its intention to do so, to file an action in interpleader requiring the Interested Parties hereto
to answer and litigate any claims and rights among themselves. The costs and expense (including reasonable attorneys’ fees
and expenses) incurred by the Escrow Agent in connection with such proceeding shall be joint and several obligations of the Interested
Parties.

 

(l)The agreements set forth in this
Section 11 shall survive the resignation or removal of the Escrow Agent, the termination of this Agreement and the payment of all
amounts hereunder.

 

Section 12. Resignation.

 

(a)The Escrow Agent may at any time
resign as Escrow Agent hereunder by giving thirty (30) days’ prior written notice of resignation to the Interested Parties.
Within thirty (30) days after receiving the foregoing notice of resignation from the Escrow Agent, the Interested Parties will
issue to the Escrow Agent a written instruction authorizing redelivery of the Escrow Funds to a bank or trust company that it appoints
as successor to the Escrow Agent hereunder. If a successor escrow agent has not accepted such appointment by the end of such thirty
(30) day period, the Escrow Agent may either (i) safe keep the Escrow Funds until a successor escrow agent is appointed, without
any obligation to invest the same or continue to perform under this Agreement or (ii) apply to a court of competent jurisdiction
for appointment of a successor escrow agent.

 

    	13

    	 

    

(b)Upon receipt of notice of the identity
of the successor escrow agent, the Escrow Agent shall either deliver the Escrow Funds then held hereunder to the successor escrow
agent, less the Escrow Agent’s fees, costs and expenses, or hold such Escrow Funds (or any portion thereof) pending distribution,
until all such fees, costs and expenses are paid to it.

 

(c)Upon delivery of all property held
in, or credited to, the Escrow Account (the “Escrow Property”) to the successor escrow agent, the Escrow Agent
shall have no further duties, responsibilities or obligations hereunder.

 

Section 13. Miscellaneous. 

 

(a)Waiver. No waiver of any
provision of this Agreement nor consent to any departure by any party therefrom shall in any event be effective unless the same
shall be in writing and signed by each of the non-breaching parties and then such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given.

 

(b)Severability. If, for any
reason whatsoever, any one or more of the provisions of this Agreement shall be held or deemed to be inoperative, unenforceable
or invalid in a particular case or in all cases, such circumstances shall not have the effect of rendering any of the other provisions
of this Agreement inoperative, unenforceable or invalid, and the inoperative, unenforceable or invalid provision shall be construed
as if it were written so as to effectuate, to the maximum extent possible, the parties’ intent.

 

(c)Binding Effect. This Agreement
shall inure to and be binding upon the parties and their respective successors and permitted assigns; provided, however,
that the Company may not assign its rights or obligations hereunder without the express prior written consent of the Trustee.

 

(d)Choice of Law. The existence,
validity, construction, operation and effect of any and all terms and provisions of this Agreement shall be determined in accordance
with and governed by the internal laws of the State of New York, including without limitation the New York UCC, without giving
effect to the conflicts of law principles of such State other than Section 5-1401 of the General Obligations Law or any successor
thereto. The Escrow Agent’s jurisdiction, in its role as securities intermediary, for purposes of Section 8-110 of the New
York UCC shall be the State of New York.

 

(e)Entire Agreement. This Agreement,
the Purchase Agreement, dated September 11, 2013, between the Company and Citigroup Global Markets Inc. as representative of the
initial purchasers party thereto, the Notes and the Indenture contain the entire agreement among the parties with respect to the
subject matter hereof and supersede any and all prior agreements, understandings and commitments with respect thereto, whether
oral or written; provided, however, that this Agreement is executed and accepted by the Trustee and the Escrow Agent
subject to all terms and conditions of its acceptance of the trust under the Indenture, as fully as if said terms and conditions
were set forth at length herein.

 

    	14

    	 

    

(f)Amendments. This Agreement
may be amended only by a writing signed by duly authorized representatives of all parties. The Trustee and the Escrow Agent may
execute an amendment to this Agreement only if the requisite consent of each of the Holders of the Notes required by Article 10
of the Indenture has been obtained, unless no such consent is required by such Section 10.01 of the Indenture. Upon the written
request of the Company, and upon the filing with the Trustee and the Escrow Agent of the consent of the Holders as required by
Article 10 of the Indenture (if applicable) and delivery of a customary officers’ certificate or opinion of counsel reasonably
requested by the Trustee or the Escrow Agent in connection therewith, the Trustee and the Escrow Agent shall join with the Company
in the execution of any such amendment, unless such amendment affects the Trustee’s or the Escrow Agent’s own rights,
duties or immunities hereunder, in which case the Trustee or the Escrow Agent, as the case may be, may, but shall not be obligated
to, enter into such amendment.

 

(g)Notices. All notices, requests,
instructions, orders and other communications required or permitted to be given or made under this Agreement to any party hereto
shall be delivered in writing by hand delivery or overnight delivery, or shall be delivered by facsimile with machine confirmation
of full delivery not more than 24 hours following such facsimile notice. A notice given in accordance with the preceding sentence
shall be deemed to have been duly given upon the sending thereof Notices should be addressed as follows:

 

To the Company:

 

John J. Mahon

Sutherland

700 Sixth Street, NW, Suite 700

Washington, D.C. 20001-3980

Telephone Number: 202-383-0515

Facsimile Number: 202-637-3593

 

To the Trustee or the Escrow Agent:

 

U.S. Bank National Association

1 Federal Street, 3rd Floor

Boston, MA 02110

Attention:   Karen Beard

Facsimile number: (617) 603-6667

or at such other address or facsimile number
as the specified entity most recently may have designated in writing in accordance with this paragraph to the other parties.

 

(h)Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or in PDF form
shall be effective as delivery of a manually executed counterpart of this Agreement.

 

(i)Interpretation. The headings
of the sections contained in this Agreement are solely for convenience or reference and shall not affect the meaning or interpretation
of this Agreement.

 

    	15

    	 

    

(j)Reproduction of Documents.
This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications which
may hereafter be executed, and (b) certificates and other information previously or hereafter furnished, may be reproduced by any
photographic, photostatic, microfilm, optical disk, micro-card, miniature photographic or other similar process. The parties agree
that any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding,
whether or not the original is in existence and whether or not such reproduction was made by a party in the regular course of business,
and that any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.

 

(k)Interested Party Information.
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions
to obtain, verify and record information that identifies each person who opens an account. For a non-individual person such as
a business entity, a charity, a trust or other legal entity the Escrow Agent will ask for documentation to verify its formation
and existence as a legal entity. The Escrow Agent may also ask to see financial statements, licenses, identification and authorization
documents from individuals claiming authority to represent the entity or other relevant documentation.

 

(l)Authorized Representatives.
Each individual designated as an authorized representative (each, an “Authorized Representative”) of the Company
is authorized to give and receive notices, requests and instructions and to deliver certificates and documents in connection with
this Agreement on behalf of the Company, and the name, telephone number and specimen signature for each such Authorized Representative,
initially authorized hereunder, is set forth on Exhibit A. From time to time, the Company may, by delivering to the other parties
hereto a revised copy of Exhibit A, or any resolution, incumbency certificate or similar document setting forth the officers of
the Company, which officers shall be deemed to be Authorized Representatives of the Company for purposes of this Agreement, change
the Company’s Authorized Representatives (and amend this Agreement to so provide), but until a new Exhibit A, resolution,
incumbency certificate or similar document with the information regarding the successor Authorized Representatives is delivered
to a party in accordance with this Agreement, that party shall be entitled to rely conclusively on the Exhibit A, resolution, incumbency
certificate or similar document, as applicable, last delivered hereunder.

 

(m)Termination. This Agreement
shall terminate upon the distribution of all Escrow Property from the Escrow Account established hereunder in accordance with the
terms of this Agreement, subject, however, to the survival of obligations specifically contemplated in this Agreement to so survive.

 

[Signature pages follow]

 

    	16

    	 

    

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

 

 

 

	GSV CAPITAL CORP., as Pledgor
	By:	 
	
        Name: 

        Title: 

 

 

	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	By:	 
	
        Name: 

        Title: 

 

 

	U.S. BANK NATIONAL ASSOCIATION, as 

Securities Intermediary and Escrow Agent
	By:	 
	
        Name: 

        Title: 

 

    	17

    	 

    

EXHIBIT A

 

INCUMBENCY CERTIFICATE
OF THE COMPANY’S

AUTHORIZED SIGNERS

 

 

	Name	Telephone Number 	Signature
	 	 	 
	1)	 	 
	 	 	 
	2)	 	 
	 	 	 
	3)	 	 
	 	 	 
	4)	 	 
	 	 	 
	5)	 	 

 

    	18

    	 

    

SCHEDULE 1

 

AUTOMATIC MONEY MARKET INVESTMENTS

INVESTMENT AUTHORIZATION LETTER

 

Based upon client’s prior review
of investment alternatives, in the absence of specific written direction to the contrary, U.S. Bank National Association is hereby
directed to invest and reinvest proceeds and other available moneys in the following fund as permitted by the operative documents.

 

	
         

         

 

SHARES OF THE ABOVE FUNDS ARE NOT DEPOSITS
OR OBLIGATIONS OF, OR GUARANTEED BY, ANY BANK INCLUDING U.S. BANK NATIONAL ASSOCIATION OR ANY OF ITS AFFILIATES, NOR ARE THEY INSURED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY. AN INVESTMENT IN THE FUNDS INVOLVES
INVESTMENT RISK, INCLUDING POSSIBLE LOSS OF PRINCIPAL. U.S. BANK DOES NOT HAVE A DUTY NOR WILL IT UNDERTAKE ANY DUTY TO PROVIDE
INVESTMENT ADVICE TO YOU. FOR INFORMATION ABOUT OTHER AVAILABLE SWEEP OPTIONS, CONTACT YOUR ACCOUNT MANAGER.  INVESTMENT
ADVICE, IF NEEDED, SHOULD BE OBTAINED FROM YOUR FINANCIAL ADVISOR.

Fee Basis:

Fund Level: U.S. Bank has
entered and will, from time to time, enter into agreements with mutual funds and/or mutual fund service providers whereby U.S.
Bank receives fees for providing shareholder service and administrative support services to the fund, which may be paid as 12b-1
service fees, annual compensation, or omnibus record keeping services. These service fees are calculated as a percentage of your
Account’s investment in the Fund(s), and may be paid either by the Fund or by a Fund service provider (such as the Fund’s
advisor or distributor). Fees paid by the Fund are detailed in each Fund’s prospectus, and may be designated as “Shareholder
Services” or “12b-1” fees. For the Fund listed above, the total current fee percentage eligible to be paid to
U.S. Bank by the Fund and/or a Fund’s service provider does not exceed 0.XX basis points (.00XX). Payment of these fees does
not result in any increase in fees charged against the fund’s assets above the fee and expense levels established for the
fund and disclosed in the fund’s prospectus. Approval of investment in the above mutual fund includes approval of these fees.

Account-level: Authorization
is provided by the signature below to deduct a cash management/administrative fee of up to XX basis points (.00XX) against the
average daily fund balance, netted from account moneys.

 

SHAREHOLDER COMMUNICATIONS ACT AUTHORIZATION

The Shareholder Communications Act of 1985
and its regulation require that banks and trust companies make an effort to facilitate communication between registrants of U.S.
securities and the parties who have the authority to vote or direct the voting of those securities regarding proxy dissemination
and other corporate communications. Unless you indicate your objection below, we will provide the obligatory information to the
registrant upon request. Your objection will apply to all securities held for you in the account now and in the future unless you
notify us in writing.

 

______ I object to US Bank providing
my name, address, and securities positions to requesting issuers. (Initial, check, or place an X on the to indicate your objection)

 

	GSV CAPITAL CORP.	 	 
	Company Name	 	Signature of Authorized Directing Party
	 	 	 
	Trust Account Number – includes existing and future sub-accounts unless otherwise designated.	 	Title
	 	 	 
	 	 	Date

    	19

    	 

    

SCHEDULE 2

 

INVESTMENT
DISCLOSURE AND AUTHORIZATION LETTER

U.S.
Bancorp and U.S. Bank TRADE SERVICES

 

Proprietary and Non-Proprietary
Products

 

U.S. Bancorp offers investment trading
services to Corporate Trust customers (“Accounts”) through its fixed income trading unit (U.S. Bank, NA) or an affiliated
broker dealer (collectively the “Money Center”). Such trades may include: fixed income U.S. Government securities;
U.S. Government Agency securities; negotiable or non-negotiable certificates of deposit; unsecured commercial paper; bank notes;
medium term notes; municipal bonds; corporate bonds; and variable rate demand notes where U.S. Bancorp, its affiliates or an associated
party is the issuer or product provider, e.g., U.S. Bank Notes and U.S. Bancorp Medium Term Notes (collectively “Proprietary
Assets”). Descriptions of Proprietary Assets are set forth in Exhibit A attached hereto. Additional specific information
on assets available through the Money Center, including credit ratings, may be obtained upon request to your Account Manager.

 

Corporate Trust Services Customers using
the Money Center receive competitive market pricing on directed asset transactions as follows:

 

Non-Proprietary Assets.
Purchasers are charged a spread or “mark” which is the difference between the Money Center’s purchase price for
the asset and the sale price to an Account. The mark on non-proprietary assets is typically less than .50% of the securities’
par value, and in no case will it exceed 2% of the securities’ par value, calculated on an annualized basis.

 

Proprietary Assets. US
Bank receives a financial benefit from the sale of Proprietary Assets. The yield for Proprietary Assets is set as a spread below
U.S. Bank’s wholesale funding cost, i.e., the cost of raising funds from other, non-retail sources. Generally, the resulting
financial benefit to U.S. Bank will be equivalent to .25% to .75% of the product's par value calculated on an annualized basis.

 

By signing
this form and providing investment directions to U.S. Bank, you acknowledge that you have reviewed investment alternatives and
you approve asset purchases using the Money Center, including purchases of Proprietary Assets, and U.S. Bank’s or an affiliate’s
receipt of compensation (as described above) resulting from such directed trades. Unless specifically waived by written agreement,
you will receive written confirmation notices of all Money Center Account trades from U.S. Bank. You will be provided prior written
notice of any changes in the Money Center pricing structure described above. As a directing Account party you control the initiation
and terms of investments selected for your Account. At any time, you may direct that the purchase of an asset be executed through
an independent broker. Further, you may revoke this Investment Disclosure and Authorization Letter at any time upon written notice
to U.S. Bank. 

 

If you desire to engage U.S. Bank to provide
trading services to your Account, including the purchase of Proprietary Assets for your Account, and you approve of U.S. Bank’s
or its affiliates’ compensation in connection with such transactions, all as described herein, please sign below and return
this Letter. Authorization will continue to be required directing U.S. Bank to buy or sell securities as required by the Account’s
governing documents. In the absence of specific written direction to the contrary regarding any future directed investments for
your Account, U.S. Bank will utilize the Money Center for placing and executing directed investments for your Account.

 

 

 

    	20

    	 

    

 

 

ACKNOWLEDGED AND APPROVED:

	GSV CAPITAL CORP.	 	
         

         

	Company Name	 	Signature of Authorized Directing Party
	 	 	
         

        Title

         

	Trust Account Number – includes existing and future sub-accounts unless otherwise designated.	 	Date

 

    	21_______________________________________________

 

RIGHTS AGREEMENT

 

CHINAEDU CORPORATION

 

and

 

The Bank of New York Mellon,

 

as Rights Agent

 

Dated as of September 17, 2013

 

________________________________________________

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Section 1.	Certain Definitions	1
	 	 	 
	Section 2.	Appointment of Rights Agent	7
	 	 	 
	Section 3.	Issuance of Right Certificates	8
	 	 	 
	Section 4.	Form of Right Certificates	10
	 	 	 
	Section 5.	Countersignature and Registration	11
	 	 	 
	Section 6.	Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates	12
	 	 	 
	Section 7.	Exercise of Rights, Purchase Price; Expiration Date of Rights	13
	 	 	 
	Section 8.	Cancellation and Destruction of Right Certificates	14
	 	 	 
	Section 9.	Availability of Shares of Junior Preferred Stock	14
	 	 	 
	Section 10.	Junior Preferred Stock Record Date	16
	 	 	 
	Section 11.	Adjustment of Purchase Price, Number and Kind of Shares and Number of Rights	16
	 	 	 
	Section 12.	Certificate of Adjusted Purchase Price or Number of Shares	24
	 	 	 
	Section 13.	Consolidation, Merger or Sale or Transfer of Assets or Earnings Power	24
	 	 	 
	Section 14.	Fractional Rights and Fractional Shares	28
	 	 	 
	Section 15.	Rights of Action	29
	 	 	 
	Section 16.	Agreement of Right Holders	29
	 	 	 
	Section 17.	Right Certificate Holder Not Deemed a Shareholder	30
	 	 	 
	Section 18.	Concerning the Rights Agent	30
	 	 	 
	Section 19.	Merger or Consolidation or Change of Name of Rights Agent	31
	 	 	 
	Section 20.	Duties of Rights Agent	31
	 	 	 
	Section 21.	Change of Rights Agent	34
	 	 	 
	Section 22.	Issuance of New Right Certificates	34

 

    	- i -

    	 

    

 

	Section 23.	Redemption	35
	 	 	 
	Section 24.	Exchange	36
	 	 	 
	Section 25.	Notice of Certain Events	37
	 	 	 
	Section 26.	Notices	38
	 	 	 
	Section 27.	Supplements and Amendments	39
	 	 	 
	Section 28.	Successors	39
	 	 	 
	Section 29.	Benefits of this Rights Agreement	39
	 	 	 
	Section 30.	Determinations and Actions by the Board of Directors	39
	 	 	 
	Section 31.	Review by the Special Committee	40
	 	 	 
	Section 32.	Severability	40
	 	 	 
	Section 33.	Governing Law	40
	 	 	 
	Section 34.	Counterparts	40
	 	 	 
	Section 35.	Descriptive Headings	40
	 	 	 
	Section 36.	USA PATRIOT Act	40

 

EXHIBITS

 

Exhibit A
– Terms of Junior Preferred Stock

 

Exhibit B –
Form of Right Certificate

 

Exhibit C –
Summary of Rights

 

    	- ii -

    	 

    

 

Index
of CERTAIN Defined Terms

 

		Page
	 	 
	Acquiring Person	1
	Acting in Concert	2
	ADS	3
	ADS Holder(s)	3
	Affiliate	3
	Associate	3
	Authorized Officer	11
	Beneficial Owner	3
	Beneficial Ownership	3
	Beneficially Own	3
	Board	1
	Board of Directors	1
	Book Entry	4
	Business Day	4
	close of business	5
	Company	1, 24
	Constructively Own	5
	Current Value	17
	Deposit Agreement	1
	Depositary	5
	Distribution Date	5, 8
	equivalent preferred shares	19
	Exchange Act	5
	Exchange Act Regulations	5
	Exchange Ratio	35
	Exempted Entity	5
	Expiration Date	6
	invalidation time	16
	Junior Preferred Stock	6
	Management Group	6
	Nasdaq	6
	Ordinary Shares	6
	Ordinary Shares equivalents	17
	Person	6
	Preferred Stock	1
	Principal Party	25
	Purchase Price	12
	Receipts	6
	Record Date	1
	Redemption Price	34
	Right	6
	Right Certificate	8
	Rights	1
	Rights Agent	1, 6
	Rights Agreement	1
	Section 11(a)(ii) Trigger Date	18
	Securities Act	6
	Security	20
	Special Committee	1
	Spread	17
	Stock Acquisition Date	7
	Subsidiary	7
	Substitution Period	18
	Summary of Rights	8
	Synthetic Long Position	7
	Trading Day	20
	Trust	35
	Trust Agreement	35

 

    	- iii -

    	 

    

 

RIGHTS AGREEMENT

 

Rights Agreement, dated
as of September 17, 2013 (as amended, supplemented or otherwise modified from time to time, the “Rights Agreement”)
between ChinaEdu Corporation, a Cayman Islands exempted company (the “Company”),
and The Bank of New York Mellon, a New York banking corporation (the “Rights Agent”).

 

RECITALS

 

WHEREAS, the Board of
Directors of the Company (hereinafter being referred to as the “Board of Directors” or the “Board”)
has adopted resolutions creating a series of preferred shares, par value $0.01 per share (“Preferred Stock”)
designated as “Junior Participating Preferred Stock” and authorized and declared a dividend of one preferred share
purchase right (a “Right” and together with all other such rights distributed or issued pursuant hereto, the
“Rights”) for each Ordinary Share (as defined below) of the Company outstanding as of the close of business
(as defined below) on September 17, 2013 (the “Record Date”), each Right initially representing the right to
purchase one one-hundredth (subject to adjustment) of a share of Junior Preferred Stock (as defined below), upon the terms and
subject to the conditions herein set forth, and the Board of Directors has further authorized and directed the issuance of one
Right (subject to adjustment as provided herein) with respect to each Ordinary Share that shall become outstanding between the
Record Date and the earlier of the Distribution Date and the Expiration Date (as such terms are hereinafter defined); provided,
however, that Rights may be issued with respect to Ordinary Shares that shall become outstanding after the Distribution
Date and prior to the Expiration Date in accordance with Section 22.

 

WHEREAS, the Board of
Directors has authorized the special committee of the Board of Directors consisting of Samuel Yen, Min Fan and Tianwen Liu (the
“Special Committee”) to administer this Rights Agreement and to exercise all rights and powers specifically
granted to the Special Committee;

 

WHEREAS, the Company,
the Bank of New York and ADS Holders (as defined hereinafter) entered into a Deposit Agreement dated on or about December 10, 2007,
as amended from time to time, (the “Deposit Agreement”), which sets forth the terms and conditions relating
to the rights of the ADS Holders.

 

NOW THEREFORE, in consideration
of the premises and the mutual agreements herein set forth, the parties hereby agree as follows:

 

Section
1.          Certain Definitions. For purposes of this Rights Agreement,
the following terms have the meanings indicated:

 

(a)          “Acquiring
Person” shall mean any Person who, together with any other Person that is Acting in Concert, is or becomes the Beneficial
Owner of 20% or more of the Ordinary Shares then outstanding, but shall not include (i) any Exempted
Entity, or (ii) any Person who, in the good faith judgment of the Special Committee, so long as the Special Committee is
in existence and, thereafter, the Board, inadvertently has become an Acquiring Person or otherwise becomes
an Acquiring Person (including, without limitation, because (A) such Person was unaware that it was or became an Acquiring Person
or (B) such Person was aware that it was an Acquiring Person but had no actual knowledge of the consequences of such fact under
this Rights Agreement), so long as such Person enters into, and delivers to the Company as soon as practicable (as determined,
in good faith, by the Special Committee, so long as the Special Committee is in existence and, thereafter, the Board),
an irrevocable commitment to promptly divest, and thereafter promptly divests (without exercising or retaining any power, including
voting, with respect to such securities), sufficient securities of the Company so that such Person ceases to be an “Acquiring
Person”.

 

    	 

    	 

    

 

Notwithstanding the
foregoing, no Person shall become an Acquiring Person solely as a result of (i) an acquisition of Ordinary Shares by the Company,
which, by reducing the number of Ordinary Shares outstanding, increases the percentage of Ordinary Shares Beneficially Owned by
such Person, unless and until such Person, after becoming aware that such Person has become the Beneficial Owner of 20% or more
of the then outstanding Ordinary Shares, acquires Beneficial Ownership of additional shares representing 0.5% or more of the Ordinary
Shares of the Company then outstanding, (ii) subject to the Special Committee’s prior written approval, the grant of any
equity compensation award (including, without limitation, an equity compensation award in the form of options, warrants, rights,
restricted stock, or similar securities) by the Company to such Person if such person is a director, officer, employee, or agent
of the Company, or any adjustment to the number of shares of Ordinary Shares represented by such equity compensation award pursuant
to the terms thereof, (iii) the exercise of any equity compensation award (including, without limitation, an equity compensation
award in the form of options, warrants, rights, restricted stock, or similar securities) currently held by a director, officer,
employee, or agent of the Company, or any adjustment to the number of shares of Ordinary Shares represented by such equity compensation
award pursuant to the terms thereof, or (iv) any Person serving as a depositary or custodian regarding securities of the Company
trading on a registered securities exchange; provided, however, that a Person who or which becomes the Beneficial
Owner of Ordinary Shares representing 20% or more of the Ordinary Shares then outstanding by reason of any of the foregoing transactions
shall nevertheless be deemed to be an Acquiring Person if such Person thereafter (and while such Person continues to be the Beneficial
Owner of 20% or more of the then outstanding Ordinary Shares) becomes the Beneficial Owner of any additional Ordinary Shares, except
as a result of (x) a dividend or distribution of shares by the Company made on a pro rata basis to all holders of Ordinary Shares,
(y) the issuance of shares by the Company pursuant to a split or subdivision of the outstanding Ordinary Shares, or (z) subject
to the Special Committee’s prior written approval, the grant of any equity compensation award (including, without limitation,
any equity compensation award in the form of options, warrants, rights, restricted stock, or similar securities) by the Company
to such Person if such Person is a director, officer, employee, or agent of the Company, or any adjustment to the number of Ordinary
Shares represented by such equity compensation award pursuant to the terms thereof.

 

(b)          A
Person shall be deemed to be “Acting in Concert” with another Person if such Person knowingly acts (whether
or not pursuant to an express agreement, arrangement, consortium or understanding) in concert or in parallel with such other Person,
or towards a common goal with such other Person, relating to (i) acquiring, holding, voting or disposing of voting securities of
the Company or (ii) changing or influencing the control of the Company or in connection with or as a participant in any transaction
having that purpose or effect, where (x) each Person is conscious of the other Person's conduct or intent and this awareness is
an element in their decision-making processes and (y) at least one additional factor supports a determination by the Special Committee,
so long as the Special Committee is in existence and, thereafter, the Board of Directors, that such Persons intended to act in
concert or in parallel, which such additional factors may include, without limitation, exchanging information, attending meetings,
conducting discussions, or making or soliciting invitations to act in concert or in parallel. A Person who is Acting in Concert
with another Person shall also be deemed to be Acting in Concert with any third Person who is also Acting in Concert with such
other Person.

 

    	- 2 -

    	 

    

 

(c)          “ADS”
shall mean American Depositary Shares, each of which represents three Ordinary Shares, as may be adjusted from time to time. For
purposes of this Agreement, an ADS is deemed to be a “voting security.”

 

(d)          “ADS
Holder(s)” shall mean the owner and beneficial owner from time to time of ADS issued pursuant to the Deposit Agreement
that are registered on the books of the Depositary.

 

(e)          “Affiliate”
and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the Exchange Act
Regulations.

 

(f)          A
Person shall be deemed the “Beneficial Owner”, and to have “Beneficial Ownership” of, and
to “Beneficially Own”, any securities (i) as to which such Person or any of such Person’s Affiliates or
Associates or any other Person (or any Affiliate or Associate of such other Person) with whom such first Person (or any Affiliate
or Associate of such first Person) is Acting in Concert, is or may be deemed to be the beneficial owner, directly or indirectly,
pursuant to Rules 13d-3 and 13d-5 of the Exchange Act Regulations; (ii) as to which such Person or any of such Person’s Affiliates
or Associates or any other Person (or any Affiliate or Associate of such other Person) with whom such first Person (or any Affiliate
or Associate of such first Person) is Acting in Concert has the right to become the Beneficial Owner (whether such right is exercisable
immediately or only after the passage of time or the occurrence of conditions), directly or indirectly, pursuant to any agreement,
arrangement or understanding, whether or not in writing (other than customary agreements with and between underwriters and selling
group members with respect to a bona fide public offering of securities), or upon the exercise of conversion rights, exchange rights,
rights (other than the Rights), warrants or options, ADSs or otherwise; (iii) which are Beneficially Owned, directly or indirectly,
by any other Person or any of such other Person’s Affiliates or Associates with which such first Person or any of such first
Person’s Affiliates or Associates has any agreement, arrangement or understanding, whether or not in writing, (x) for the
purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described in clause (B) of the proviso to this sentence)
or disposing of any voting securities of the Company, or (y) to cooperate in obtaining, changing or influencing the control of
the Company; (iv) which is an Ordinary Share represented by an ADS, if such Person has the right to acquire such Ordinary Share
upon the due surrender of the ADS evidencing the Ordinary Share to the Depositary in accordance with the procedures set forth in
the Deposit Agreement, and (v) that such Person or any of such Person’s Affiliates or Associates or any other Person (or
any Affiliate or Associate of such other Person) with whom such first Person (or any Affiliate or Associate of such first Person)
is Acting in Concert are determined to Constructively Own; provided, however, that a Person shall not be
deemed the “Beneficial Owner,” or to have “Beneficial Ownership” of, or to “Beneficially Own,”
any security (A) solely because such security has been tendered pursuant to a tender or exchange offer made by such Person or any
of such Person’s Affiliates or Associates or any other Person (or any Affiliate or Associate of such other Person) with whom
such first Person (or any Affiliate or Associate of such first Person) is Acting in Concert until such tendered security is accepted
for payment or exchange, or (B) solely because such Person or any of such Person’s Affiliates or Associates or any other
Person (or any Affiliate or Associate of such other Person) with whom such first Person (or any Affiliate or Associate of such
first Person) is Acting in Concert has or shares the power to vote or direct the voting of such security pursuant to a revocable
proxy or consent given in response to a public proxy or consent solicitation made to more than ten holders of shares of a class
of stock of the Company registered under Section 12 of the Exchange Act and pursuant to, and in accordance with, the applicable
provisions of the Exchange Act Regulations, except if such power (or the arrangements relating thereto (whether or not in writing))
is then reportable under Item 6 of Schedule 13D under the Exchange Act (or any similar provision of a comparable or successor statement).  Notwithstanding
the foregoing, (i) nothing in this Section 1(f) shall cause a Person engaged in business as an underwriter of securities to be
the “Beneficial Owner” of, or to have “Beneficial Ownership” of, or to “Beneficially
Own”, any securities acquired through such Person’s participation in good faith in a firm commitment underwriting
until the expiration of forty days after the date of such acquisition, and then only if such securities continue to be owned by
such Person at such expiration of forty days; (ii) no Person who is an officer, director, or employee of an Exempted Entity shall
be deemed, solely by reason of such Person’s status or authority as such (subject to the determination of the Special Committee
in good faith so long as the Special Committee is in existence and, thereafter, the Board) to be the “Beneficial Owner”
of, to have “Beneficial Ownership” of or to “Beneficially Own” any securities that are “Beneficially
Owned” (as defined in this Section 1(f), including, without limitation, in a fiduciary capacity, by an Exempted
Entity or by any other such officer, director or employee of an Exempted Entity; (iii) a Person shall not be deemed the “Beneficial
Owner” of, to have “Beneficial Ownership” of or to “Beneficially Own”, Ordinary
Shares (or securities convertible into, exchangeable into or exercisable for Ordinary Shares) held by such Person in trust accounts,
managed accounts and the like, or otherwise held in a fiduciary capacity, that are beneficially owned by third Persons.  For
purposes of this Agreement, in determining the percentage of the outstanding Ordinary Shares with respect to which a Person is
the Beneficial Owner, all shares as to which such Person is deemed the Beneficial Owner shall be deemed to be outstanding. For
purposes of this Section 1(f), and notwithstanding Section 4.07 of the Deposit Agreement, an ADS Holder shall be deemed to have
the right to vote an Ordinary Share represented by an ADS, if the ADS Holder has the right to acquire such Ordinary Share upon
the due surrender of the ADS evidencing the Ordinary Share to the depositary agent in accordance with the procedures set forth
in the Deposit Agreement.

 

    	- 3 -

    	 

    

 

(g)          “Book
Entry” shall mean an uncertificated book entry for Ordinary Shares.

 

(h)          “Business
Day” shall mean any day other than a Saturday, a Sunday, or a day on which banking institutions in the State of New York,
or the State in which the principal office of the Rights Agent is located, are authorized or obligated by law or executive order
to close.

 

    	- 4 -

    	 

    

 

(i)          “close
of business” on any given date shall mean 5:00 P.M., New York, New York time, on such date; provided, however, that if
such date is not a Business Day it shall mean 5:00 P.M., New York, New York time, on the next succeeding Business Day.

 

(j)          A
Person shall be deemed to “Constructively Own” Ordinary Shares in respect of which such Person has a Synthetic
Long Position, calculated in the manner set forth below.  The number of Ordinary Shares in respect of a Synthetic Long
Position that shall be deemed to be Constructively Owned is the notional or other number of Ordinary Shares in respect of such
Synthetic Long Position that is specified in a filing by such Person or any of such Person’s Affiliates or Associates or
any other Person (or any Affiliate or Associate of such other Person) with whom such first Person (or any Affiliate or Associate
of such first Person) is Acting in Concert with the SEC or in the documentation evidencing such Synthetic Long Position as the
basis upon which the value or settlement amount of such right or derivative, or the opportunity of the holder of such right or
derivative to profit or share in any profit, is to be calculated in whole or in part, and in any case (or if no such number of
Ordinary Shares is specified in any filing or documentation), as determined by the Special Committee so long as the Special Committee
is in existence and, thereafter, the Board in good faith to be the number of Ordinary Shares to which such Synthetic Long Position
relates.

 

(k)          “Depositary”
shall mean The Bank of New York Mellon or its successors or permitted assigns, in its capacity as depositary pursuant to the Deposit
Agreement.

 

(l)          “Distribution
Date” shall have the meaning set forth in Section 3(a).

 

(m)          “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended and in effect on the date
of the Rights Agreement.

 

(n)          “Exchange
Act Regulations” shall mean the General Rules and Regulations under the Exchange Act.

 

(o)          “Exempted
Entity” shall mean (i) the Company, (ii) any Subsidiary (as defined below) of the Company (in the case of subclauses
(i) and (ii) including, without limitation, in its fiduciary capacity), (iii) any employee benefit plan of the Company or of any
Subsidiary of the Company, (iv) any entity or trustee holding (or acting in a fiduciary capacity in respect of) Ordinary Shares
for or pursuant to the terms of any such plan or for the purpose of funding any such plan or funding other employee benefits for
employees of the Company or of any Subsidiary of the Company, or (v) any Person who currently Beneficially Owns 20% or more of
the Ordinary Shares as evidenced by a Schedule 13D filing made prior to the date of this Agreement and only to the extent of such
Person’s Beneficial Ownership as disclosed in such Schedule 13D filing, including, without limitation, any members of the
Management Group; provided, however, solely with respect to this clause (v), any such Person, including, without
limitation, the Management Group, would cease to be an Exempted Entity upon the acquisition of additional Ordinary Shares that
would increase such Person’s Beneficial Ownership by 0.5% or more of the Ordinary Shares outstanding at the time of acquisition
of any such additional shares pursuant to this clause (v).

 

    	- 5 -

    	 

    

 

(p)          “Expiration
Date” shall mean the earliest of (i) the exchange of all outstanding Rights pursuant to Section 24, (ii) the redemption
of all outstanding Rights pursuant to Section 23, and (iii) the close of business on September 17, 2014.

 

(q)          “Junior
Preferred Stock” shall mean the Junior Participating Preferred Stock, par value $0.01 per share, of the Company having
the powers, preferences and relative, participating, optional or other rights, and the qualifications, limitations and restrictions
set forth in the Terms of Junior Participating Preferred Stock attached to this Rights Agreement as Exhibit A and, to the
extent that there are not a sufficient number of shares of Junior Participating Preferred Stock authorized to permit the full exercise
of the Rights, any other series of preferred stock of the Company designated for such purpose containing terms substantially similar
to the terms of the Junior Participating Preferred Stock.

 

(r)          “Management
Group” shall mean each of Shawn Ding, Moral Known Industrial Limited, Julia Huang, South Lead Technology Limited, Gegang
Tana, Mei Yixin, Pan Zhixin, Ellen Huang, InterVision Technology Ltd., MLP Holdings Limited, New Value Technology Limited and Lingyuan
Furong Investment Mgmt Co., Ltd.

 

(s)          “Nasdaq”
shall mean The NASDAQ Stock Market, LLC.

 

(t)          “Ordinary
Shares” when used with reference to the Company shall mean the ordinary shares, par value $0.01 per share, of the Company,
except that, “Ordinary Shares” when used with reference to any Person other than the Company shall mean
the capital stock (or, in the case of an unincorporated entity, the equivalent equity interest) with the greatest voting power
of such other Person or, if such other Person is a subsidiary of another Person, the Person or Persons which ultimately control
such first-mentioned Person.

 

(u)          
“Person” shall mean any individual, corporation (including not-for-profit), general or limited partnership,
limited liability company, joint venture, estate, trust, association, organization, governmental entity or agency or other entity
of any kind or nature.

 

(v)          “Receipts”
shall mean the American Depositary Receipts issued pursuant to the Deposit Agreement evidencing ADSs.

 

(w)          “Right”
shall have the meaning set forth in the Recitals.

 

(x)          “Rights
Agent” shall have the meaning set forth in the Preamble.

 

(y)          “Securities
Act” shall mean the Securities Act of 1933, as amended.

 

(z)          “Stock
Acquisition Date” shall mean the first date of public announcement (which for purposes of this definition shall include,
without limitation, a report filed pursuant to Section 13(d) of the Exchange Act) by the Company or an Acquiring Person that an
Acquiring Person has become such.

 

    	- 6 -

    	 

    

 

(aa)          “Subsidiary”
of any Person shall mean any corporation or other entity of which securities or other ownership interests having ordinary voting
power sufficient to elect a majority of the board of directors or other persons performing similar functions are beneficially owned,
directly or indirectly, by such Person, and any corporation or other entity that is otherwise controlled by such Person.

 

(bb)          “Synthetic
Long Position” shall mean any option, warrant, convertible security, stock appreciation right, swap agreement or other
security, contract right or derivative position, whether or not presently exercisable, that has an exercise or conversion privilege
or a settlement payment or mechanism at a price related to the value of Ordinary Shares or a value determined in whole or part
with reference to, or derived in whole or in part from, the value of Ordinary Shares and that increases in value as the value of
Ordinary Shares increases or that provides to the holder an opportunity, directly or indirectly, to profit or share in any profit
derived from any increase in the value of Ordinary Shares, in any case without regard to whether (i) such derivative conveys any
voting rights in such securities to such Person or any of such Person’s Affiliates or Associates, (ii) such derivative is
required to be, or capable of being, settled through delivery of such securities, or (iii) such Person or any of such Person’s
Affiliates or Associates may have entered into other transactions that hedge the economic effect of such derivative.  A
Synthetic Long Position shall not include any interests, rights, options or other securities set forth in Rule 16a-1(c)(1)-(5)
or (7) of the Exchange Act Regulations.

 

Section
2.          Appointment of Rights Agent.

 

(a)          The Company hereby
appoints The Bank of New York Mellon as Rights Agent to act as agent for the Company and the holders of the Rights (who, in accordance
with Section 3 hereof, shall prior to the Distribution Date also be the holders of Ordinary Shares) in accordance with the
terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint such
co-Rights Agents as it may deem necessary or desirable upon ten (10) days’ prior notice to the Rights Agent. The Rights Agent
shall have no duty to supervise, and shall in no event be liable for the acts or omissions of any such co-Rights Agent.

 

(b)          The Company shall
provide and shall cause its officers, advisors, and agents, including without limitation, its transfer agent and registrar, and
any other service provider to cooperate with the Rights Agent and to provide the Rights Agent, upon request, with such information,
documents and advice relating to the registered holders of Ordinary Shares as is within the possession or knowledge of such persons,
and which in the opinion of the Rights Agent, is necessary in order to enable it to perform its duties hereunder. The Rights Agent
shall not be responsible for, under any duty to inquire into, or be deemed to make any assurances with respect to the accuracy,
validity or propriety of any information, documents or advice provided to the Rights Agent by any of the aforementioned persons.
The Rights Agent shall not be liable for any loss, damage or expense resulting from or arising out of the failure of the Company
to cause any information, documents or advice to be provided to the Rights Agent as provided herein and shall be held harmless
by the Company when acting in reliance upon such information, documents or advice. All fees or costs charged by such persons shall
be borne by the Company.

 

    	- 7 -

    	 

    

 

Section
3.          Issuance of Right Certificates. (a) Until the close
of business on the earlier of (i) the tenth Business Day after the Stock Acquisition Date or (ii) the tenth Business Day (or such
later date as may be determined by action of the Special Committee in good faith so long as the Special Committee is in existence
and, thereafter, the Board before such time as any Person becomes an Acquiring Person and of which later date the Company will
give the Rights Agent prompt written notice) after the date that a tender or exchange offer by any Person (other than an Exempted
Entity) is first published or sent or given within the meaning of Rule 14d-4(a) of the Exchange Act Regulations or any successor
rule, the consummation of which would result in any Person becoming an Acquiring Person (including, in the case of both clause
(i) and (ii), any such date which is after the date of this Rights Agreement and prior to the issuance of the Rights) (the earlier
of such dates referred to in clauses (i) and (ii) being herein referred to as the “Distribution Date”), (x)
the Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by the balances indicated in the Book Entry
account system of the transfer agent for the Ordinary Shares registered in the names of the holders thereof (which Ordinary Shares
will also be deemed to represent certificates for Rights) or, in the case of certificated shares, by the certificates for Ordinary
Shares registered in the names of the holders thereof (which certificates for Ordinary Shares shall be deemed also to be certificates
for Rights) and not by separate Right Certificates (as defined below), and (y) the Rights will be transferable only in connection
with the transfer of the underlying Ordinary Shares, associated with such Right (including a transfer to the Company).

 

As soon as practicable
after the Distribution Date, the Company will prepare and execute, the Rights Agent will countersign, and the Company will send
or cause to be sent (and the Rights Agent will, if requested, send) by first-class, insured, postage-prepaid mail, to each record
holder of Ordinary Shares as of the close of business on the Distribution Date (other than any Acquiring Person), at the address
of such holder shown on the records of the Company, a Right Certificate, in substantially the form of Exhibit B attached
hereto (a “Right Certificate”), evidencing one Right (subject to adjustment as provided herein) for each share
of Ordinary Shares so held. If an adjustment in the number of Rights per share of Ordinary Shares has been made pursuant to Section
11(i) or Section 11(n) hereof, at the time of distribution of the Right Certificates, the Company may make the necessary
and appropriate rounding adjustments (in accordance with Section 14(a) hereof) so that Right Certificates representing only
whole numbers of Rights are distributed and cash is paid in lieu of any fractional Rights. As of and after the Distribution Date,
the Rights will be evidenced solely by such Rights Certificates.

 

(b)          On
the Record Date, or as soon as practicable thereafter, the Company will send a copy of a Summary of Rights to Purchase Shares of
Junior Participating Preferred Stock, in substantially the form of Exhibit C attached hereto (the “Summary of Rights”),
which may be appended to certificates that represent Ordinary Shares, by first-class, postage-prepaid mail, to each record holder
of Ordinary Shares as of the close of business on the Record Date (other than any Acquiring Person), at the address of such holder
shown on the records of the Company. With respect to Ordinary Shares outstanding as of the Record Date, until the Distribution
Date, the Rights will be evidenced by the balances indicated in the Book Entry account system of the transfer agent for such stock
(if applicable), or in the case of certificated shares, by such certificates registered in the names of the holders thereof together
with the Summary of Rights attached thereto. Until the Distribution Date (or, if earlier, the Expiration Date), the surrender for
transfer of any Ordinary Shares outstanding on the Record Date (whether represented by certificate(s) or evidenced by the balances
indicated in the Book Entry account system of the transfer agent for such stock), with or without a copy of the Summary of Rights,
shall also constitute the transfer of the Rights associated with the Ordinary Shares represented thereby.

 

    	- 8 -

    	 

    

 

(c)          Rights
shall be issued in respect of all Ordinary Shares that become outstanding (whether originally issued or delivered from the Company’s
treasury) after the Record Date but prior to the earlier
of the Distribution Date and the Expiration Date, or in certain circumstances provided in Section 22 hereof, after
the Distribution Date. Confirmation and account statements sent to holders of Ordinary Shares in Book Entry form or, in the case
of certificated shares, certificates representing Ordinary Shares (including, without limitation, upon transfer of outstanding
Ordinary Shares, disposition of Ordinary Shares, out of treasury stock or issuance or reissuance of Ordinary Shares, out of authorized
but unissued shares) after the Record Date but prior to the earlier of the Distribution Date and the Expiration Date, or in certain
circumstances provided in Section 22 hereof, after the Distribution Date shall have impressed on, printed on, written on
or otherwise affixed to them the following legend:

 

“This certificate also evidences
and entitles the holder hereof to certain rights as set forth in a Rights Agreement between ChinaEdu Corporation and The Bank of
New York Mellon, as Rights Agent, dated as of September 17, 2013, as the same may be amended, supplemented or otherwise modified
from time to time (the “Rights Agreement”), the terms of which are hereby incorporated herein by reference and
a copy of which is on file at the principal executive offices of ChinaEdu Corporation. Under certain circumstances, as set forth
in the Rights Agreement, such Rights will be evidenced by separate certificates and will no longer be evidenced by this certificate.
ChinaEdu Corporation will mail to the holder of this certificate a copy of the Rights Agreement without charge after receipt of
a written request therefor. Under certain circumstances, as set forth in the Rights Agreement, Rights owned by or transferred to
any Person who is, was or becomes an Acquiring Person (as defined in the Rights Agreement) and certain transferees thereof will
become null and void and will no longer be transferable.”

 

Receipts representing
such Ordinary Shares shall have impressed on, printed on, written on or otherwise affixed to them the following legend:

 

ChinaEdu Corporation has adopted a shareholder
rights plan pursuant to a Rights Agreement between ChinaEdu Corporation and The Bank of New York Mellon, as Rights Agent, dated
as of September 17, 2013, as the same may be amended, supplemented or otherwise modified from time to time (the “Rights
Agreement”). Pursuant to the terms of the Rights Agreement, each holder of the Issuer’s Ordinary Shares shall be
entitled to certain rights (the “Rights”). The Rights Agreement, the terms of which are hereby incorporated
herein by reference, provides that the Rights, when exercisable, will entitle the holder to purchase one fully paid and nonassessable
Ordinary Share of ChinaEdu Corporation at a purchase price of US$20.00 per Ordinary Share, subject to adjustment, upon presentation
and surrender to the Rights Agent of a Right Certificate (as defined in the Rights Agreement) and such other and further documentation
as required by the Rights Agreement. ChinaEdu Corporation will mail to the holder of this Receipt a copy of the Rights Agreement
without charge after receipt of a written request therefor. Under certain circumstances, as set forth in the Rights Agreement,
Rights owned by or transferred to any Person who is, was or becomes an Acquiring Person (as defined in the Rights Agreement) and
certain transferees thereof will become null and void and will no longer be transferable.”

 

    	- 9 -

    	 

    

 

With respect to such certificates or Receipts
containing the foregoing legend, until the earliest of the Distribution Date and the Expiration Date, the Rights associated with
the Ordinary Shares, represented by such certificates or Receipts shall be evidenced by certificates or Receipts alone and registered
holders of Ordinary Shares and ADS Holders shall also be registered holders of Rights, and the surrender for transfer of any such
certificates or Receipts, except as otherwise provided herein, shall also constitute the transfer of the Rights associated with
such Ordinary Shares. With respect to Ordinary Shares or if the Depositary shall issue Receipts in Book Entry form for which there
has been sent a confirmation or account statement containing the foregoing legends, until the earliest of the Distribution Date
or the Expiration Date, the Rights associated with the Ordinary Shares shall be evidenced by such Ordinary Shares alone and registered
holders of Ordinary Shares and ADS Holders shall also be the registered holders of the associated Rights, and the transfer of any
such Ordinary Shares shall also constitute the transfer of the Rights associated with such Ordinary Shares. In the event that the
Company purchases or otherwise acquires any Ordinary Shares, after the Record Date but prior to the Distribution Date, any Rights
associated with such Ordinary Shares, shall be deemed cancelled and retired so that the Company shall not be entitled to exercise
any Rights associated with the Ordinary Shares which are no longer outstanding.

 

Notwithstanding this
paragraph (c), the omission of a legend shall not affect the enforceability of any part of this Rights Agreement or the rights
of any holder of the Rights.

 

Section
4.          Form of Right Certificates. The Right Certificates
(and the forms of election to purchase shares and of assignment to be printed on the reverse thereof) shall be substantially in
the form set forth in Exhibit B attached hereto and may have such marks of identification or designation and such legends,
summaries or endorsements printed thereon as the Company may deem appropriate and as are not inconsistent with the provisions
of this Rights Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant
thereto or with any rule or regulation of Nasdaq or of any other stock exchange or automated quotation system on which the Rights
may from time to time be listed, or to conform to usage. Subject to the provisions of Sections 11, 13, 22,
23, 24 and 27 hereof, the Right Certificates shall entitle the holders thereof to purchase such number of
one one-hundredth of a share of Junior Preferred Stock as shall be set forth therein at the Purchase Price (as determined pursuant
to Section 7), but the amount and type of securities purchasable upon the exercise of each Right and the Purchase Price
thereof shall be subject to adjustment as provided herein.

 

    	- 10 -

    	 

    

 

Any Right Certificate
issued pursuant to this Rights Agreement that represents Rights beneficially owned by: (i) an Acquiring Person, (ii) a transferee
of an Acquiring Person that becomes a transferee after the Acquiring Person becomes such, or (iii) a transferee of an Acquiring
Person that becomes a transferee prior to or concurrently with the Acquiring Person becoming such and that receives such Rights
pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity interests in
such Acquiring Person or to any Person with whom such Acquiring Person has any continuing written or oral agreement, arrangement,
or understanding regarding either the transferred Rights, Ordinary Shares, or the Company, or (B) a transfer that the Special Committee,
so long as the Special Committee is in existence and, thereafter, the Board has determined in good faith to be part of a plan,
agreement, arrangement, or understanding, written or otherwise, that has as a primary purpose or effect the avoidance of Section
11(a)(ii) hereof, and subsequent transferees of such Persons shall, upon the written direction of the Special Committee, so
long as the Special Committee is in existence and, thereafter, the Board, contain (to the extent feasible), the following legend:

 

“The Rights
represented by this Rights Certificate are or were beneficially owned by a Person who was or became an Acquiring Person (as such
capitalized terms are defined in the Rights Agreement, dated as of September 17, 2013 (the “Rights Agreement”),
by and between ChinaEdu Corporation and The Bank of New York Mellon, as Rights Agent). Accordingly, this Rights Certificate and
the Rights represented hereby may become null and void in the circumstances specified in Section 11(a)(ii) of the Rights
Agreement.”

 

Section
5.          Countersignature and Registration. (a) The Right Certificates
shall be executed on behalf of the Company by the Chief Executive Officer, Chief Financial Officer, any of the Vice Presidents
of the Company (each an “Authorized Officer”), either manually or by facsimile signature, shall have affixed
thereto the Company’s seal or a facsimile thereof and shall be attested by the Corporate Secretary or an Assistant Secretary
of the Company, either manually or by facsimile signature. The Right Certificates shall be countersigned by the Rights Agent,
either manually or by facsimile signature, and shall not be valid for any purpose unless countersigned. In case any Authorized
Officer who shall have signed any Right Certificate shall cease to be an Authorized Officer of the Company before countersignature
by the Rights Agent and issuance and delivery by the Company, such Right Certificates, nevertheless, may be countersigned by the
Rights Agent and issued and delivered by the Company with the same force and effect as though the Person who signed such Right
Certificates had not ceased to be an Authorized Officer of the Company; and any Right Certificate may be signed on behalf of the
Company by any Person who, at the actual date of the execution of such Right Certificate, shall be a proper Authorized Officer
of the Company to sign such Right Certificate, although at the date of the execution of this Rights Agreement any such Person
was not such an Authorized Officer.

 

(b)          In
case any authorized signatory of the Rights Agent who shall have countersigned any of the Right Certificates shall cease to be
so authorized before delivery by the Company, such Right Certificates, nevertheless, may be issued and delivered by the Company
with the same force and effect as though the person who countersigned such Right Certificates had not ceased to be so authorized;
and any Right Certificates may be countersigned on behalf of the Rights Agent by any person who, at the actual date of the countersignature
of such Right Certificate, shall be properly authorized to countersign such Right Certificate, although at the date of the execution
of this Rights Agreement any such person was not so authorized.

 

    	- 11 -

    	 

    

 

(c)          Following
the Distribution Date, the Rights Agent will keep or cause to be kept, at an office or agency designated for such purpose, books
for registration and transfer of the Right Certificates issued hereunder. Such books shall show the names and addresses of the
respective holders of the Right Certificates, the number of Rights evidenced on its face by each Right Certificate and the date
of each Right Certificate.

 

Section
6.          Transfer, Split Up, Combination and Exchange of Right
Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates. (a) Subject to the provisions of this Rights Agreement,
at any time after the close of business on the Distribution Date, and prior to the close of business on the Expiration Date, any
Right Certificate or Right Certificates may be transferred, split up, combined or exchanged for another Right Certificate or Right
Certificates, entitling the registered holder to purchase a like number of one one-hundredth of a share of Junior Preferred Stock
(or, following such time, other securities, cash or assets as the case may be) as the Right Certificate or Right Certificates
surrendered then entitled such holder to purchase. Any registered holder desiring to transfer, split up, combine or exchange any
Right Certificate or Right Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender
the Right Certificate or Right Certificates to be transferred, split up, combined or exchanged at the office or agency of the
Rights Agent designated for such purpose, along with a signature guarantee and such other and further documentation as the Rights
Agent may reasonably request. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever with respect
to the transfer of any such surrendered Right Certificate or Right Certificates until the registered holder shall have completed
and signed the certificate contained in the form of assignment on the reverse side of such Right Certificate or Right Certificates
and shall have provided such additional evidence, as the Company shall reasonably request of the identity of the Beneficial Owner
(or former Beneficial Owner), Affiliates or Associates of such Beneficial Owner or holder, or of any other Person with which such
holder or any of such holder’s Affiliates or Associates has any agreement, arrangement or understanding (whether or not
in writing) for the purpose of acquiring, holding, voting or disposing of securities of the Company. Thereupon the Rights Agent,
subject to the provisions of this Rights Agreement, shall countersign and deliver to the Person entitled thereto a Right Certificate
or Right Certificates, as the case may be, as so requested. The Company may require payment of a sum sufficient to cover any tax
or governmental charge that may be imposed in connection with any transfer, split up, combination or exchange of Right Certificates.

 

(b) Subject to the provisions
of this Rights Agreement, at any time after the Distribution Date and prior to the Expiration Date, upon receipt by the Company
and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Right Certificate,
and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, along with a signature guarantee
and such other and further documentation as the Rights Agent may reasonably request, and if requested by the Company, reimbursement
to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation
of the Right Certificate if mutilated, the Company will make and deliver a new Right Certificate of like tenor to the Rights Agent
for delivery to the registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated.

 

    	- 12 -

    	 

    

 

Section
7.          Exercise of Rights, Purchase Price; Expiration Date of
Rights.

 

(a)          Except
as otherwise provided herein, the Rights shall become exercisable on the Distribution Date, and thereafter the registered holder
of any Right Certificate may, subject to Section 11(a)(ii) hereof and except as otherwise provided herein, exercise the
Rights evidenced thereby in whole or in part upon surrender of the Right Certificate, with the form of election to purchase on
the reverse side thereof duly executed, to the Rights Agent at the office or agency of the Rights Agent designated for such purpose,
together with payment of the Purchase Price for each one one-hundredth of a share of Junior Preferred Stock (or other securities,
cash or assets, as the case may be) as to which the Rights are exercised, at any time which is both after the Distribution Date
and prior to the Expiration Date.

 

(b)          The
purchase price (the “Purchase Price”) shall be initially $20.00 for each one one-hundredth of a share of Junior
Preferred Stock purchasable upon the exercise of a Right. The Purchase Price and the number of one one-hundredth of a share of
Junior Preferred Stock or other securities or property to be acquired upon exercise of a Right shall be subject to adjustment from
time to time as provided in Sections 11 and 13 hereof and shall be payable in lawful money of the United States of
America in accordance with paragraph (c) of this Section 7.

 

(c)          Except
as otherwise provided herein, upon receipt of a Right Certificate representing exercisable Rights, with the form of election to
purchase duly executed, accompanied by payment of the aggregate Purchase Price for the number of shares of Junior Preferred Stock
to be purchased and an amount equal to any applicable transfer tax required to be paid by the holder of such Right Certificate
in accordance with Section 9(e) hereof, by certified check, cashier’s check or money order payable to the order of
the Rights Agent, the Rights Agent shall thereupon promptly (i) (A) requisition from any transfer agent of the Junior Preferred
Stock or make available if the Rights Agent is the transfer agent for the Junior Preferred Stock certificates for the number of
shares of Junior Preferred Stock to be purchased (and the Company hereby irrevocably authorizes its transfer agent to comply with
all such requests), or (B) requisition from the depositary agent appointed by the Company depositary receipts representing interests
in such number of one one-hundredth of a share of Junior Preferred Stock as are to be purchased, in which case certificates for
the Junior Preferred Stock represented by such receipts shall be deposited by the transfer agent with the depositary agent (and
the Company hereby directs the depositary agent to comply with such request), (ii) when appropriate, requisition from the Company
the amount of cash to be paid in lieu of issuance of fractional shares in accordance with Section 14 hereof, (iii) promptly
after receipt of such certificates or depositary receipts, cause the same to be delivered to or upon the order of the registered
holder of such Right Certificate, registered in such name or names as may be designated by such holder and (iv) when appropriate,
after receipt, promptly deliver such cash to or upon the order of the registered holder of such Right Certificate.

 

(d)          Except
as otherwise provided herein, in case the registered holder of any Right Certificate shall exercise less than all the Rights evidenced
thereby, a new Right Certificate evidencing Rights equivalent to the exercisable Rights remaining unexercised shall be issued by
the Rights Agent to the registered holder of such Right Certificate or to his duly authorized assigns, subject to the provisions
of Section 6 and 14 hereof.

 

    	- 13 -

    	 

    

 

(e)          Notwithstanding
anything in this Rights Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any
action with respect to a registered holder of Rights upon the occurrence of any purported transfer or exercise of Rights pursuant
to Section 6 hereof or this Section 7 unless such registered holder shall have (i) completed and signed the certificate
contained in the form of assignment or election to purchase set forth on the reverse side of the Right Certificate surrendered
for such transfer or exercise and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial
Owner) thereof as the Company shall reasonably request.

 

Section
8.          Cancellation and Destruction of Right Certificates.
All Right Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered
to the Company or to any of its agents, be delivered to the Rights Agent for cancellation or in cancelled form, or, if surrendered
to the Rights Agent, shall be cancelled by it, and no Right Certificates shall be issued in lieu thereof except as expressly permitted
by any of the provisions of this Rights Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement,
and the Rights Agent shall so cancel and retire, any other Right Certificate purchased or acquired by the Company otherwise than
upon the exercise thereof. The Rights Agent shall deliver all cancelled Right Certificates to the Company, or shall, at the written
request of the Company, destroy or cause to be destroyed such cancelled Right Certificates, and in such case shall deliver a certificate
of destruction thereof to the Company.

 

Section
9.          Availability of Shares of Junior Preferred Stock.
(a) The Company covenants and agrees that it will cause to be reserved and kept available out of its authorized and unissued shares
of Junior Preferred Stock or any shares of Junior Preferred Stock held in its treasury, the number of shares of Junior Preferred
Stock that will be sufficient to permit the exercise in full of all outstanding Rights.

 

(b)           So long as the
shares of Junior Preferred Stock (and, following the time that a Person becomes an Acquiring Person, Ordinary Shares and other
securities) issuable upon the exercise of Rights may be listed or admitted to trading on the NASDAQ or listed on any other national
securities exchange or quotation system, the Company shall use its reasonable best efforts to cause, from and after such time as
the Rights become exercisable, all shares reserved for such issuance to be listed or admitted to trading on the NASDAQ or listed
on any other exchange or quotation system upon official notice of issuance upon such exercise.

 

    	- 14 -

    	 

    

 

(c)           From and after
such time as the Rights become exercisable, the Company shall use its reasonable best efforts, if then necessary to permit the
issuance of shares of Junior Preferred Stock (and following the time that a Person first becomes an Acquiring Person, Ordinary
Shares and other securities) upon the exercise of Rights, to (i) file, as soon as practicable, or as soon as required by law, as
the case may be, a registration statement under the Securities Act, to register and qualify such shares of Junior Preferred Stock
(and following the time that a Person first becomes an Acquiring Person, Ordinary Shares and other securities), (ii) cause such
registration statement to become effective as soon as practicable after such filing, and (iii) cause such registration statement
to remain effective (with a prospectus at all times meeting the requirements of the Securities Act) until the earlier of (x) the
date as of which the Rights are no longer exercisable for such securities, and (y) the Expiration Date. The Company will also,
take such action as may be appropriate under, or to ensure compliance with, the “blue sky” laws of the various states
in connection with the exercisability of the Rights (to the extent exemptions therefrom are not available). The Company shall issue
written notification to the Rights Agent when the registration statement referenced in subclause (i) has become effective or deliver
to the rights Agent an opinion of counsel for the Company in the United States, in a form reasonably satisfactory to the Rights
Agent, to the effect that the offering and sale of such Ordinary Shares is exempt from, or does not require registration under,
the provisions of the Securites Act or any other applicable laws. The Company may temporarily suspend, for a period of time not
to exceed ninety (90) days, the exercisability of the Rights in order to prepare and file a registration statement under the Securities
Act and permit it to become effective. Upon any such suspension, the Company shall notify the Rights Agent thereof in writing and
shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public
announcement at such time as the suspension is no longer in effect. Notwithstanding any provision of this Rights Agreement to the
contrary, the Rights shall not be exercisable in any jurisdiction unless the requisite qualification or exemption in such jurisdiction
shall have been obtained and until a registration statement under the Securities Act (if required) shall have been declared effective.

 

(d)          The Company covenants
and agrees that it will take all such action as may be necessary to ensure that all shares of Junior Preferred Stock (and, following
the time that a Person becomes an Acquiring Person, Ordinary Shares and other securities) delivered upon exercise of Rights shall,
at the time of delivery of the certificates therefor (subject to payment of the Purchase Price), be duly and validly authorized
and issued and fully paid and nonassessable shares.

 

(e)          The Company further
covenants and agrees that it will pay when due and payable any and all federal and state transfer taxes and charges which may be
payable in respect of the issuance or delivery of the Right Certificates or of any shares of Junior Preferred Stock (or Ordinary
Shares or other securities) upon the exercise of Rights. The Company shall not, however, be required to pay any transfer tax or
charge which may be payable in respect of any transfer or delivery of Right Certificates to a Person other than, or the issuance
or delivery of certificates or depositary receipts or entries in the Book Entry account system of the transfer agent for the Junior
Preferred Stock (or Ordinary Shares or other securities) in a name other than that of the registered holder of the Right Certificate
evidencing Rights surrendered for exercise or to issue or deliver any certificates or depositary receipts or entries in the Book
Entry account system of the transfer agent for Junior Preferred Stock (or Ordinary Shares or other securities) upon the exercise
of any Rights until any such tax or charge shall have been paid (any such tax or charge being payable by that holder of such Right
Certificate at the time of surrender) or until it has been established to the Company’s reasonable satisfaction that no such
tax or charge is due.

 

    	- 15 -

    	 

    

 

 

 

(f)          The
Company shall use its reasonable best efforts, on or prior to the date that is either (A) as soon as practicable following the
first occurrence of an event under Section 11(a)(ii) and a determination by the Company in accordance with Section 11(a)(iii)
hereof, if applicable, of the consideration to be delivered by the Company upon exercise of the Rights, or (B) if so required by
law, as soon as required following the Distribution Date, to obtain any and all regulatory approvals that may be required with
respect to the securities purchasable upon exercise of the Rights. The Company may temporarily suspend, for a period of time not
to exceed 90 days after the date set forth in the first sentence of this Section 9(e), the exercise of the Rights in order
to permit the Company to obtain the necessary regulatory approvals. Upon any such suspension, the Company shall notify the Rights
Agent thereof in writing and issue a public announcement stating that the exercise of the Rights has been temporarily suspended,
as well as a public announcement (with written notice thereof to the Rights Agent) at such time as the suspension is no longer
in effect stating that the suspension on the exercise of the Rights is no longer in effect. Notwithstanding any provision of this
Rights Agreement to the contrary, the Rights shall not be exercisable unless and until all required regulatory approvals have been
obtained with respect to the securities purchasable upon exercise of the Rights.

 

Section
10.         Junior Preferred Stock Record Date. Each Person in whose
name any certificate or entry in Book Entry account system of the transfer agent for Junior Preferred Stock (or Ordinary Shares
or other securities) is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record
of the shares of Junior Preferred Stock (or Ordinary Shares or other securities) represented thereby on, and such certificate
or entry in the Book Entry account system of the transfer agent shall be dated, the date upon which the Right Certificate evidencing
such Rights was duly surrendered and payment of the Purchase Price (and any applicable transfer taxes or charges) was made; provided,
however, that if the date of such surrender and payment is a date upon which the Junior Preferred Stock (or Ordinary Shares or
other securities) transfer books of the Company are closed, such Person shall be deemed to have become the record holder of such
shares on, and such certificate or entry in Book Entry account system of the transfer agent shall be dated, the next succeeding
Business Day on which such transfer books are open. Prior to the exercise of the Rights evidenced thereby, the holder of a Right
Certificate shall not be entitled to any rights of a shareholder of the Company with respect to securities for which the Rights
shall be exercisable, including, without limitation, the right to vote or to receive dividends or other distributions, and shall
not be entitled to receive any notice of any proceedings of the Company, except as provided herein.

 

Section
11.         Adjustment of Purchase Price, Number and Kind of Shares and
Number of Rights. The Purchase Price, the number of shares of Junior Preferred Stock or other securities or property purchasable
upon exercise of each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this
Section 11.

 

(a)          (i)
In the event the Company shall at any time after the date of this Rights Agreement (A) declare a dividend on the Junior Preferred
Stock payable in shares of Junior Preferred Stock, (B) subdivide the outstanding shares of Junior Preferred Stock, (C) combine
the outstanding shares of Junior Preferred Stock into a smaller number of shares of Junior Preferred Stock or (D) issue any shares
of its capital stock in a reclassification of the shares of Junior Preferred Stock (including any such reclassification in connection
with a consolidation or merger in which the Company is the continuing or surviving corporation), except as otherwise provided in
this Section 11(a), the Purchase Price in effect at the time of the record date for such dividend or of the effective date
of such subdivision, combination or reclassification, as the case may be, and the number and kind of shares of capital stock issuable
upon exercise of a Right, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be
entitled to receive the aggregate number and kind of shares of capital stock which, if such Right had been exercised immediately
prior to such date and at a time when the Junior Preferred Stock transfer books of the Company were open, the holder would have
owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification;
provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate
par value of the shares of capital stock of the Company issuable upon exercise of one Right. If an event occurs that would require
an adjustment under both this Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for in this
Section 11(a)(i) shall be in addition to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii)
hereof.

 

    	- 16 -

    	 

    

  

(ii)         Subject
to Sections 24 and 13 of this Rights Agreement and except as otherwise provided in this Section 11(a)(ii)
and Section 11(a)(iii), in the event that any Person becomes an Acquiring Person, each holder of a Right shall thereafter
have the right to receive, upon exercise thereof, at a price equal to the then-current Purchase Price, in accordance with the terms
of this Rights Agreement and in lieu of shares of Junior Preferred Stock, such number of Ordinary Shares (or at the option of the
Company, such number of one one-hundredth of a share of Junior Preferred Stock) as shall equal the result obtained by (x) multiplying
the then-current Purchase Price by the number of one one-hundredth of a share of Junior Preferred Stock for which a Right is then
exercisable and dividing that product by (y) 50% of the then-current per share market price of the Company’s Ordinary Shares
(determined pursuant to Section 11(d) hereof) on the date of the occurrence of such event; provided, however,
that the Purchase Price (as so adjusted) and the number of Ordinary Shares so receivable upon exercise of a Right shall thereafter
be subject to further adjustment as appropriate in accordance with Section 11(f) hereof. Notwithstanding anything in this
Rights Agreement to the contrary, however, from and after the time (the “invalidation time”) when any Person
first becomes an Acquiring Person, any Rights that are beneficially owned by (x) any Acquiring Person, (y) a transferee of any
Acquiring Person who becomes a transferee after the invalidation time or (z) a transferee of any Acquiring Person who became a
transferee prior to or concurrently with the invalidation time pursuant to either (I) a transfer from the Acquiring Person to holders
of its equity securities or to any Person with whom it has any continuing agreement, arrangement or understanding, written or otherwise,
regarding the transferred Rights, Ordinary Shares or the Company or (II) a transfer that the Special Committee, so long as the
Special Committee is in existence and, thereafter, the Board, has determined in good faith is part of a plan, arrangement or understanding,
written or otherwise, which has the purpose or effect of avoiding the provisions of this paragraph, and subsequent transferees
of such Persons, shall be void without any further action and any holder of such Rights shall thereafter have no rights whatsoever
with respect to such Rights under any provision of this Rights Agreement. The Company shall use all reasonable efforts to ensure
that the provisions of this Section 11(a)(ii) are complied with, but shall have no liability to any holder of Right Certificates
or other Person as a result of its determination, or failure to make any determinations, with respect to an Acquiring Person or
transferees hereunder. From and after the invalidation time, no Right Certificate shall be issued pursuant to Section 3
or Section 6 hereof that represents Rights that are or have become void pursuant to the provisions of this paragraph, and
any Right Certificate delivered to the Rights Agent that represents Rights that are or have become void pursuant to the provisions
of this paragraph shall be cancelled. From and after the occurrence of an event specified in Section 13(a) hereof, any Rights
that theretofore have not been exercised pursuant to this Section 11(a)(ii) shall thereafter be exercisable only in accordance
with Section 13 and not pursuant to this Section 11(a)(ii).

 

    	- 17 -

    	 

    

  

(iii)        The
Company may at its option substitute for Ordinary Shares issuable upon the exercise of Rights in accordance with the foregoing
subparagraph (ii) such number or fractions of shares of Junior Preferred Stock having an aggregate current market value equal to
the current per share market price of a share of Ordinary Shares. In the event that there shall be an insufficient number of Ordinary
Shares authorized but unissued (and unreserved) to permit the exercise in full of the Rights in accordance with the foregoing subparagraph
(ii), the Special Committee, so long as the Special Committee is in existence and, thereafter, the Board shall, with respect to
such deficiency, to the extent permitted by applicable law and any material agreements then in effect to which the Company is a
party (A) determine the excess of (x) the value of the Ordinary Shares issuable upon the exercise of a Right in accordance with
the foregoing subparagraph (ii) (the “Current Value”) over (y) the then-current Purchase Price multiplied by
the number of one one-hundredth of shares of Junior Preferred Stock for which a Right was exercisable immediately prior to the
time that the Acquiring Person became such (such excess, the “Spread”), and (B) with respect to each Right (other
than Rights which have become void pursuant to Section 11(a)(ii)), make adequate provision to substitute for the Ordinary
Shares issuable in accordance with subparagraph (ii) upon exercise of the Right and payment of the applicable Purchase Price, (1)
cash, (2) a reduction in such Purchase Price, provided such reduction is not below the aggregate par value of the Adjustment Shares,
(3) shares of Junior Preferred Stock or other equity securities of the Company (including, without limitation, shares or fractions
of shares of preferred stock which, by virtue of having dividend, voting and liquidation rights substantially comparable to those
of the Ordinary Shares, are deemed in good faith by the Special Committee, so long as the Special Committee is in existence and,
thereafter, the Board to have substantially the same value as the Ordinary Shares (such shares of preferred stock and shares or
fractions of shares of preferred stock are hereinafter referred to as “Ordinary Shares equivalents”), (4) debt
securities of the Company, (5) other assets or (6) any combination of the foregoing, having a value which, when added to the value
of the Ordinary Shares actually issued upon exercise of such Right, shall have an aggregate value equal to the Current Value (less
the amount of any reduction in such Purchase Price), where such aggregate value has been determined by the Special Committee in
good faith so long as the Special Committee is in existence and, thereafter, the Board upon the advice of a nationally recognized
investment banking firm selected in good faith by the Special Committee, so long as the Special Committee is in existence and,
thereafter, the Board; provided, however, if the Company shall not make adequate provision to deliver value pursuant
to clause (B) above within thirty (30) days following the date that the Acquiring Person became such (the “Section 11(a)(ii)
Trigger Date”), then the Company shall be obligated to deliver, to the extent permitted by applicable law and any material
agreements then in effect to which the Company is a party, upon the surrender for exercise of a Right and without requiring payment
of the Purchase Price, Ordinary Shares (to the extent available), and then, if necessary, such number or fractions of shares of
Junior Preferred Stock (to the extent available) and then, if necessary, cash, which shares and/or cash have an aggregate value
equal to the Spread. If within the thirty (30) day period referred to above, the Special Committee, so long as the Special Committee
is in existence and, thereafter, the Board shall determine in good faith that it is likely that sufficient additional Ordinary
Shares could be authorized for issuance upon exercise in full of the Rights, then, if the Special Committee, so long as the Special
Committee is in existence and, thereafter, the Board so elects, such thirty (30) day period may be extended to the extent necessary,
but not more than ninety (90) days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek shareholder
approval for the authorization of such additional shares (such thirty (30) day period, as it may be extended, is hereinafter called
the “Substitution Period”). To the extent that the Company determines that some action need be taken pursuant
to the second and/or third sentence of this Section 11(a)(iii), the Company (x) shall provide, subject to Section 11(a)(ii)
hereof and the last sentence of this Section 11(a)(iii) hereof, that such action shall apply uniformly to all outstanding
Rights and (y) may suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek any
authorization of additional shares and/or to decide the appropriate form of distribution to be made pursuant to such second sentence
and to determine the value thereof. In the event of any such suspension, the Company shall issue a public announcement stating
that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension
is no longer in effect. For purposes of this Section 11(a)(iii), the value of the Ordinary Shares shall be the current per
share market price (as determined pursuant to Section 11(d)(i)) on the Section 11(a)(ii) Trigger Date and the per share
or fractional value of any Ordinary Shares equivalent shall be deemed to equal the current per share market price of the Ordinary
Shares. The Special Committee, so long as the Special Committee is in existence and, thereafter, the Board may, but shall not be
required to, establish procedures to allocate the right to receive Ordinary Shares upon the exercise of the Rights among holders
of Rights pursuant to this Section 11(a)(iii).

 

    	- 18 -

    	 

    

  

(b)          In
case the Company shall fix a record date for the issuance of rights, options or warrants to all holders of Junior Preferred Stock
entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Junior Preferred
Stock (or shares having similar rights, privileges and preferences as the Junior Preferred Stock (“equivalent preferred
shares”)) or securities convertible into Junior Preferred Stock or equivalent preferred shares at a price per share of
Junior Preferred Stock or equivalent preferred shares (or having a conversion price per share, if a security convertible into shares
of Junior Preferred Stock or equivalent preferred shares) less than the then-current per share market price of the Junior Preferred
Stock (determined pursuant to Section 11(d) hereof) on such record date, the Purchase Price to be in effect after such record
date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator
of which shall be the number of shares of Junior Preferred Stock and equivalent preferred shares outstanding on such record date
plus the number of shares of Junior Preferred Stock and equivalent preferred shares which the aggregate offering price of the total
number of such shares so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be offered)
would purchase at such current market price, and the denominator of which shall be the number of shares of Junior Preferred Stock
and equivalent preferred shares outstanding on such record date plus the number of additional shares of Junior Preferred Stock
and/or equivalent preferred shares to be offered for subscription or purchase (or into which the convertible securities so to be
offered are initially convertible); provided, however, that in no event shall the consideration to be paid upon the
exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise
of one Right. In case such subscription price may be paid in a consideration part or all of which shall be in a form other than
cash, the value of such consideration shall be as determined in good faith by the Special Committee, so long as the Special Committee
is in existence and, thereafter, the Board, whose determination shall be described in a statement filed with the Rights Agent.
Shares of Junior Preferred Stock and equivalent preferred shares owned by or held for the account of the Company shall not be deemed
outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is
fixed; and in the event that such rights, options or warrants are not so issued, the Purchase Price shall be adjusted to be the
Purchase Price which would then be in effect if such record date had not been fixed.

 

    	- 19 -

    	 

    

  

(c)          In
case the Company shall fix a record date for the making of a distribution to all holders of the Junior Preferred Stock (including
any such distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation)
of evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend payable in Junior Preferred
Stock) or subscription rights or warrants (excluding those referred to in Section 11(b) hereof), the Purchase Price to be
in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record
date by a fraction, the numerator of which shall be the then-current per share market price of the Junior Preferred Stock (determined
pursuant to Section 11(d) hereof) on such record date, less the fair market value (as determined in good faith by the Special
Committee, so long as the Special Committee is in existence and, thereafter, the Board whose determination shall be described in
a statement filed with the Rights Agent) of the portion of such assets or evidences of indebtedness so to be distributed or of
such subscription rights or warrants applicable to one share of Junior Preferred Stock, and the denominator of which shall be such
current per share market price of the Junior Preferred Stock; provided, however, that in no event shall the consideration
to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company to
be issued upon exercise of one Right. Such adjustments shall be made successively whenever such a record date is fixed; and in
the event that such distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price which would
then be in effect if such record date had not been fixed.

 

(d)          (i)          Except
as otherwise provided herein, for the purpose of any computation hereunder, the “current per share market price” of
any security (a “Security” for the purpose of this Section 11(d)(i)) on any date shall be deemed to be
the average of the daily closing prices per share of such Security for the 30 consecutive Trading Days (as such term is hereinafter
defined) immediately prior to such date; provided, however, that in the event that the current per share market price
of the Security is determined during a period following the announcement by the issuer of such Security of (A) a dividend or distribution
on such Security payable in shares of such Security or securities convertible into such shares, or (B) any subdivision, combination
or reclassification of such Security, and prior to the expiration of 30 Trading Days after the ex-dividend date for such dividend
or distribution, or the record date for such subdivision, combination or reclassification, then, and in each such case, the current
per share market price shall be appropriately adjusted to reflect the current market price per share equivalent of such Security.
The closing price for each day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as reported by (w) the principal consolidated transaction
reporting system with respect to securities listed or admitted to trading on the Nasdaq or, (x) if the Security is not listed or
admitted to trading on the Nasdaq, as reported in the principal consolidated transaction reporting system with respect to securities
listed on the principal national securities exchange on which the Security is listed or admitted to trading or, if (y) the Security
is not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average
of the high bid and low asked prices in the over-the-counter market, as reported by Nasdaq or such other system then in use, or,
(z) if on any such date the Security is not quoted by any such organization, the average of the closing bid and asked prices as
furnished by a professional market maker making a market in the Security selected by the Special Committee, so long as the Special
Committee is in existence and, thereafter, the Board. The term “Trading Day” shall mean a day on which the principal
national securities exchange on which the Security is listed or admitted to trading is open for the transaction of business or,
if the Security is not listed or admitted to trading on any national securities exchange, a Business Day.

 

    	- 20 -

    	 

    

  

(ii)         For
the purpose of any computation hereunder, if the Junior Preferred Stock is publicly traded, the “current per share market
price” of the Junior Preferred Stock shall be determined in accordance with the method set forth in Section 11(d)(i).
If the Junior Preferred Stock is not publicly traded but the Ordinary Shares is publicly traded, the “current per share market
price” of the Junior Preferred Stock shall be conclusively deemed to be the current per share market price of the Ordinary
Shares, as determined pursuant to Section 11(d)(i), multiplied by one hundredth (appropriately adjusted to reflect any stock
split, stock dividend or similar transaction occurring after the date hereof). If neither the Ordinary Shares nor the Junior Preferred
Stock is publicly traded, “current per share market price” shall mean the fair value per share as determined in good
faith by the Special Committee, so long as the Special Committee is in existence and, thereafter, the Board, whose determination
shall be described in a statement filed with the Rights Agent.

 

(e)          No
adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least 1%
in the Purchase Price; provided, however, that any adjustments not required to be made by reason of this Section
11(e) shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section
11 shall be made to the nearest cent or to the nearest one ten-thousandth of a share of Junior Preferred Stock or share of
Ordinary Shares or other share or security as the case may be. Notwithstanding the first sentence of this Section 11(e),
any adjustment required by this Section 11 shall be made no later than the earlier of (i) two years from the date of the
transaction which requires such adjustment or (ii) the Expiration Date.

 

(f)          If
as a result of an adjustment made pursuant to Section 11(a) or Section 13 hereof, the holder of any Right thereafter
exercised shall become entitled to receive any shares of capital stock of the Company other than the Junior Preferred Stock, thereafter
the Purchase Price and the number of such other shares so receivable upon exercise of a Right shall be subject to adjustment from
time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Junior Preferred
Stock contained in Sections 11(a), 11(b), 11(c), 11(e), 11(h), 11(i) and 11(m)
and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to the Junior Preferred
Stock shall apply on like terms to any such other shares.

 

    	- 21 -

    	 

    

  

(g)          All
Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder shall evidence the right
to purchase, at the adjusted Purchase Price, the number of one one-hundredth of a share of Junior Preferred Stock purchasable from
time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein.

 

(h)          Unless
the Company shall have exercised its election as provided in Section 11(i), upon each adjustment of the Purchase Price as
a result of the calculations made in Section 11(b) and (c), each Right outstanding immediately prior to the making
of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of one one-hundredth
of a share of Junior Preferred Stock (calculated to the nearest one-thousandth of a share of Junior Preferred Stock) obtained by
(i) multiplying (x) the number of one one-hundredth of a share of Junior Preferred Stock purchasable upon the exercise of a Right
immediately prior to such adjustment by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price
and (ii) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price.

 

(i)          The
Company may elect on or after the date of any adjustment of the Purchase Price pursuant to Sections 11(b) or 11(c)
hereof to adjust the number of Rights, in substitution for any adjustment in the number of one one-hundredth of a share of Junior
Preferred Stock purchasable upon the exercise of a Right. Each of the Rights outstanding after such adjustment of the number of
Rights shall be exercisable for the number of one one-hundredth of a share of Junior Preferred Stock for which a Right was exercisable
immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that
number of Rights (calculated to the nearest one ten-thousandth) obtained by dividing the Purchase Price in effect immediately prior
to adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of the Purchase Price. The Company
shall make a public announcement, and notify the Rights Agent in writing, of its election to adjust the number of Rights, indicating
the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be
the date on which the Purchase Price is adjusted or any day thereafter, but, if the Right Certificates have been issued, shall
be at least 10 days later than the date of the public announcement. If Right Certificates have been issued, upon each adjustment
of the number of Rights pursuant to this Section 11(i), the Company may, as promptly as practicable, cause to be distributed
to holders of record of Right Certificates on such record date Right Certificates evidencing, subject to Section 14 hereof,
the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the option of the Company,
shall cause to be distributed to such holders of record in substitution and replacement for the Right Certificates held by such
holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Right Certificates evidencing
all the Rights to which such holders shall be entitled as a result of such adjustment. Right Certificates so to be distributed
shall be issued, executed and countersigned in the manner provided for herein and shall be registered in the names of the holders
of record of Right Certificates on the record date specified in the public announcement.

 

    	- 22 -

    	 

    

  

(j)          Irrespective
of any adjustment or change in the Purchase Price or the number of one one-hundredth of a share of Junior Preferred Stock issuable
upon the exercise of the Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase
Price and the number of one one-hundredth of a share of Junior Preferred Stock which were expressed in the initial Right Certificates
issued hereunder.

 

(k)          Before
taking any action that would cause an adjustment reducing the Purchase Price below the then par value, if any, of the shares of
Junior Preferred Stock or other shares of capital stock issuable upon exercise of the Rights, the Company shall take any corporate
action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue fully paid
and nonassessable shares of Junior Preferred Stock or other such shares at such adjusted Purchase Price.

 

(l)           In
any case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record
date for a specified event, the Company may elect to defer (and shall notify the Rights Agent in writing of any such election)
until the occurrence of such event the issuing to the holder of any Right exercised after such record date the Junior Preferred
Stock, Ordinary Shares or other capital stock or securities of the Company, if any, issuable upon such exercise over and above
the Junior Preferred Stock, Ordinary Shares or other capital stock or securities of the Company, if any, issuable upon such exercise
on the basis of the Purchase Price in effect prior to such adjustment; provided, however, that the Company shall
deliver to such holder a due bill or other appropriate instrument evidencing such holder’s right to receive such additional
shares upon the occurrence of the event requiring such adjustment.

 

(m)         Notwithstanding
anything in this Section 11 to the contrary, the Company shall be entitled to make such adjustments in the Purchase Price,
in addition to those adjustments expressly required by this Section 11, as and to the extent that it in its sole discretion
shall determine to be advisable in order that any consolidation or subdivision of the Junior Preferred Stock, issuance (wholly
for cash) of any shares of Junior Preferred Stock at less than the current market price, issuance (wholly for cash) of Junior Preferred
Stock or securities which by their terms are convertible into or exchangeable for Junior Preferred Stock, dividends on Junior Preferred
Stock payable in shares of Junior Preferred Stock or issuance of rights, options or warrants referred to hereinabove in Section
11(b), hereafter made by the Company to holders of its Junior Preferred Stock shall not be taxable to such shareholders.

 

(n)          Notwithstanding
anything in this Rights Agreement to the contrary, in the event that at any time after the date of this Rights Agreement and prior
to the Distribution Date, the Company shall (i) declare and pay any dividend on the shares of any class or series of Ordinary Shares
payable in Ordinary Shares or (ii) effect a subdivision, combination or consolidation of the shares of any class or series of Ordinary
Shares (by reclassification or otherwise than by payment of a dividend payable in Ordinary Shares) into a greater or lesser number
of Ordinary Shares, then in any such case, the number of Rights associated with each share of Ordinary Shares then outstanding,
or issued or delivered thereafter, shall be proportionately adjusted so that the number of Rights thereafter associated with each
share of Ordinary Shares following any such event shall equal the result obtained by multiplying the number of Rights associated
with each share of Ordinary Shares immediately prior to such event by a fraction the numerator of which shall be the total number
of Ordinary Shares outstanding immediately prior to the occurrence of the event and the denominator of which shall be the total
number of Ordinary Shares outstanding immediately following the occurrence of such event.

 

    	- 23 -

    	 

    

  

(o)          So
long as any rights shall then be outstanding (other than Rights that have become null and void pursuant to Section 11(a)(ii)
hereof), the Company agrees that, after the earlier of the Distribution Date or the Stock Acquisition Date, it will not, except
as permitted by Sections 23, 24 or 27 hereof, take (or permit any Subsidiary to take) any action if at the
time such action is taken it is reasonably foreseeable that such action will diminish substantially or eliminate the benefits intended
to be afforded by the Rights.

 

Section
12.         Certificate of Adjusted Purchase Price or Number of Shares.
Whenever an adjustment is made as provided in Section 11 or 13 hereof, the Company shall promptly (a) prepare a
certificate setting forth such adjustment, and a brief statement of the facts accounting for such adjustment, (b) file with the
Rights Agent and with each transfer agent for the Ordinary Shares or the Junior Preferred Stock a copy of such certificate and
(c) mail a brief summary thereof to each holder of a Right Certificate in accordance with Section 25 hereof (if so required
under Section 25 hereof). The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment
therein contained and shall not be deemed to have knowledge of any such adjustment unless and until it shall have received such
certificate.

 

Section
13.         Consolidation, Merger or Sale or Transfer of Assets or Earnings
Power. (a) In the event, directly or indirectly, at any time after any Person has become an Acquiring Person, (i) the Company
shall merge with and into any other Person, (ii) any Person shall consolidate with the Company, or any Person shall merge with
and into the Company and the Company shall be the continuing or surviving corporation of such merger and, in connection with such
merger, all or part of the Ordinary Shares shall be changed into or exchanged for stock or other securities of any other Person
(or of the Company) or cash or any other property, or (iii) the Company shall sell or otherwise transfer (or one or more of its
Subsidiaries shall sell or otherwise transfer), in one or more transactions, assets or earning power aggregating to 50% or more
of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person (other than the Company
or one or more of its wholly-owned Subsidiaries), then, and in each such case, proper provision shall be made so that:

 

(A)         each
holder of record of a Right (other than Rights which have become void pursuant to Section 11(a)(ii)) shall thereafter have
the right to receive, upon the exercise thereof at a price equal to the then-current Purchase Price multiplied by the number of
one one-hundredth of a share of Junior Preferred Stock for which a Right was exercisable (whether or not such Right was then exercisable)
immediately prior to the time that any Person first became an Acquiring Person (each as subsequently adjusted thereafter pursuant
to Section 11(a)(i), 11(b), 11(c), 11(e), 11(f), 11(h), 11(i) and 11(m)),
in accordance with the terms of this Rights Agreement and in lieu of Junior Preferred Stock, such number of validly issued, fully
paid and non-assessable and freely tradeable Ordinary Shares of the Principal Party (as defined below) not subject to any liens,
encumbrances, rights of first refusal or other adverse claims, as shall be equal to the result obtained by (1) multiplying the
then-current Purchase Price by the number of one one-hundredth of a share of Junior Preferred Stock for which a Right was exercisable
immediately prior to the time that any Person first became an Acquiring Person (as subsequently adjusted thereafter pursuant to
Section 11(a)(i), 11(b), 11(c), 11(e), 11(f), 11(h), 11(i) and 11(m)) and (2)
dividing that product by 50% of the then-current per share market price of the Ordinary Shares of such Principal Party (determined
pursuant to Section 11(d)(i) hereof) on the date of consummation of such consolidation, merger, sale or transfer; provided
that the Purchase Price and the number of Ordinary Shares of such Principal Party issuable upon exercise of each Right shall be
further adjusted as provided in Section 11(f) of this Rights Agreement to reflect any events occurring in respect of such
Principal Party after the date of such consolidation, merger, sale or transfer;

 

    	- 24 -

    	 

    

  

(B)         such
Principal Party shall thereafter be liable for, and shall assume, by virtue of such consolidation, merger, sale or transfer, all
the obligations and duties of the Company pursuant to this Rights Agreement;

 

(C)         the
term “Company” as used herein shall thereafter be deemed to refer to such Principal Party; and

 

(D)         such
Principal Party shall take such steps (including, but not limited to, the reservation of a sufficient number of its shares of its
Ordinary Shares) in connection with such consummation of any such transaction as may be necessary to assure that the provisions
hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to the shares of its Ordinary Shares thereafter
deliverable upon the exercise of the Rights; provided that, upon the subsequent occurrence of any consolidation, merger,
sale or transfer of assets or other extraordinary transaction in respect of such Principal Party, each holder of a Right shall
thereupon be entitled to receive, upon exercise of a Right and payment of the Purchase Price as provided in this Section 13(a),
such cash, shares, rights, warrants and other property which such holder would have been entitled to receive had such holder, at
the time of such transaction, owned the Ordinary Shares of the Principal Party receivable upon the exercise of a Right pursuant
to this Section 13(a), and such Principal Party shall take such steps (including, but not limited to, reservation of shares
of stock) as may be necessary to permit the subsequent exercise of the Rights in accordance with the terms hereof for such cash,
shares, rights, warrants and other property.

 

(b)          “Principal
Party” shall mean:

 

(i)           in
the case of any transaction described in clauses (i) or (ii) of the first sentence of Section 13(a) hereof: (A) the Person
that is the issuer of the securities into which the Ordinary Shares are converted in such merger or consolidation, or, if there
is more than one such issuer, the issuer of the Ordinary Shares of which have the greatest aggregate market value of shares outstanding,
or (B) if no securities are so issued, (x) the Person that is the other party to the merger, if such Person survives said merger,
or, if there is more than one such Person, the Person the Ordinary Shares of which have the greatest aggregate market value of
shares outstanding or (y) if the Person that is the other party to the merger does not survive the merger, the Person that does
survive the merger (including the Company if it survives) or (z) the Person resulting from the consolidation; and

 

    	- 25 -

    	 

    

 

(ii)         in
the case of any transaction described in clause (iii) of the first sentence in Section 13(a) hereof, the Person that is
the party receiving the greatest portion of the assets or earning power transferred pursuant to such transaction or transactions,
or, if each Person that is a party to such transaction or transactions receives the same portion of the assets or earning power
so transferred or if the Person receiving the greatest portion of the assets or earning power cannot be determined, whichever of
such Persons is the issuer of Ordinary Shares having the greatest aggregate market value of shares outstanding;

 

provided, however, that in
any such case described in the foregoing clause (b)(i) or (b)(ii), if the Ordinary Shares of such Person is not at such time or
has not been continuously over the preceding 12-month period registered under Section 12 of the Exchange Act, then (1) if such
Person is a direct or indirect Subsidiary of another Person the Ordinary Shares of which is and has been so registered, the term
“Principal Party” shall refer to such other Person, or (2) if such Person is a Subsidiary, directly or indirectly,
of more than one Person, and the Ordinary Shares of all of such persons have been so registered, the term “Principal Party”
shall refer to whichever of such Persons is the issuer of Ordinary Shares having the greatest aggregate market value of shares
outstanding, or (3) if such Person is owned, directly or indirectly, by a joint venture formed by two or more Persons that are
not owned, directly or indirectly, by the same Person, the rules set forth in clauses (1) and (2) above shall apply to each of
the owners having an interest in the venture as if the Person owned by the joint venture was a Subsidiary of both or all of such
joint venturers, and the Principal Party in each such case shall bear the obligations set forth in this Section 13 in the
same ratio as its interest in such Person bears to the total of such interests.

 

(c)          The
Company shall not consummate any consolidation, merger, sale or transfer referred to in Section 13(a) hereof unless prior
thereto the Company and the Principal Party involved therein shall have executed and delivered to the Rights Agent an agreement
confirming that the requirements of Sections 13(a) and (b) hereof shall promptly be performed in accordance with
their terms and that such consolidation, merger, sale or transfer of assets shall not result in a default by the Principal Party
under this Rights Agreement as the same shall have been assumed by the Principal Party pursuant to Sections 13(a) and (b)
hereof and providing that, as soon as practicable after executing such agreement pursuant to this Section 13, the Principal
Party will:

 

(i)          prepare
and file a registration statement under the Securities Act, if necessary, with respect to the Rights and the securities purchasable
upon exercise of the Rights on an appropriate form, use its reasonable best efforts to cause such registration statement to become
effective as soon as practicable after such filing and use its reasonable best efforts to cause such registration statement to
remain effective (with a prospectus at all times meeting the requirements of the Securities Act) until the Expiration Date, and
similarly comply with applicable state securities laws;

 

(ii)         use
its reasonable best efforts, if the Ordinary Shares of the Principal Party shall be listed or admitted to trading on the Nasdaq
or on another national securities exchange, to list or admit to trading (or continue the listing of) the Rights and the securities
purchasable upon exercise of the Rights on the Nasdaq or such securities exchange, or, if the Ordinary Shares of the Principal
Party shall not be listed or admitted to trading on the Nasdaq or a national securities exchange, to cause the Rights and the securities
receivable upon exercise of the Rights to be reported by such other system then in use;

 

    	- 26 -

    	 

    

 

(iii)        deliver
to holders of the Rights historical financial statements for the Principal Party which comply in all respects with the requirements
for registration on Form 10 (or any successor form) under the Exchange Act; and

 

(iv)        obtain
waivers of any rights of first refusal or preemptive rights in respect of the Ordinary Shares of the Principal Party subject to
purchase upon exercise of outstanding Rights.

 

(d)          In
case the Principal Party has a provision in any of its authorized securities or in its certificate of incorporation or by-laws
or other instrument governing its affairs, which provision would have the effect of (i) causing such Principal Party to issue (other
than to holders of Rights pursuant to this Section 13), in connection with, or as a consequence of, the consummation of
a transaction referred to in this Section 13, Ordinary Shares or Ordinary Shares equivalents of such Principal Party at
less than the then-current market price per share thereof (determined pursuant to Section 11(d) hereof) or securities exercisable
for, or convertible into, Ordinary Shares or Ordinary Shares equivalents of such Principal Party at less than such then-current
market price, or (ii) providing for any special payment, tax or similar provision in connection with the issuance of the Ordinary
Shares of such Principal Party pursuant to the provisions of Section 13, then, in such event, the Company hereby agrees
with each holder of Rights that it shall not consummate any such transaction unless prior thereto the Company and such Principal
Party shall have executed and delivered to the Rights Agent a supplemental agreement providing that the provision in question of
such Principal Party shall have been canceled, waived or amended, or that the authorized securities shall be redeemed, so that
the applicable provision will have no effect in connection with, or as a consequence of, the consummation of the proposed transaction.

 

(e)          The
Company covenants and agrees that it shall not, at any time after a Person first becomes an Acquiring Person enter into any transaction
of the type contemplated by Sections 13(a)(i)-(iii) hereof if (x) at the time of or immediately after such consolidation,
merger, sale, transfer or other transaction there are any rights, warrants or other instruments or securities outstanding or agreements
in effect which would substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights, (y) prior
to, simultaneously with or immediately after such consolidation, merger, sale, transfer or other transaction, the shareholders
of the Person who constitutes, or would constitute, the Principal Party for purposes of Section 13(b) hereof shall have
received a distribution of Rights previously owned by such Person or any of its Affiliates or Associates or (z) the form or nature
of organization of the Principal Party would preclude or limit the exercisability of the Rights.

 

(f)          The
provisions of this Section 13 shall similarly apply to successive mergers or consolidations or sales or other transfers. In the
event that a consolidation, merger, sale or transfer shall occur at any time after the occurrence of an event under Section 11(a)(ii),
the Rights that have not theretofore been exercised shall thereafter become exercisable in the manner described in Section 13(a).

 

    	- 27 -

    	 

    

  

Section
14.         Fractional Rights and Fractional Shares. (a) The Company
shall not be required to issue fractions of Rights (except prior to the Distribution Date in accordance with Section 11(n)
hereof) or to distribute Right Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall
be paid to the registered holders of the Right Certificates with regard to which such fractional Rights would otherwise be issuable,
an amount in cash equal to the same fraction of the current market value of a whole Right. For the purposes of this Section
14(a), the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately
prior to the date on which such fractional Rights would have been otherwise issuable. The closing price for any day shall be the
last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices,
regular way, in either case as reported by (w) the principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on the Nasdaq or, (x) if the Rights are not listed or admitted to trading on the Nasdaq, as reported
in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities
exchange on which the Rights are listed or admitted to trading or, (y) if the Rights are not listed or admitted to trading on
any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices
in the over-the-counter market, as reported by the Financial Industry Regulatory Authority or such other system then in use or,
(z) if on any such date the Rights are not quoted by any such organization, the average of the closing bid and asked prices as
furnished by a professional market maker making a market in the Rights selected by the Special Committee, so long as the Special
Committee is in existence and, thereafter, the Board. If on any such date no such market maker is making a market in the Rights,
the fair value of the Rights on such date as determined in good faith by the Special Committee, so long as the Special Committee
is in existence and, thereafter, the Board.

 

(b)          The
Company shall not be required to issue fractions of shares of Junior Preferred Stock (other than fractions which are integral multiples
of one one-hundredth of a share of Junior Preferred Stock) upon exercise of the Rights or to distribute certificates which evidence
fractional shares of Junior Preferred Stock (other than fractions which are integral multiples of one one-hundredth of a share
of Junior Preferred Stock). Interests in fractions of Junior Preferred Stock in integral multiples of one one-hundredth of a share
of Junior Preferred Stock may, at the election of the Company, be evidenced by depositary receipts, pursuant to an appropriate
agreement between the Company and a depositary selected by it; provided, that such agreement shall provide that the holders
of such depositary receipts shall have all the rights, privileges and preferences to which they are entitled as beneficial owners
of the Junior Preferred Stock represented by such depositary receipts. In lieu of fractional shares of Junior Preferred Stock that
are not integral multiples of one one-hundredth of a share of Junior Preferred Stock, the Company shall pay to the registered holders
of Right Certificates at the time such Rights are exercised for shares of Junior Preferred Stock as herein provided an amount in
cash equal to the same fraction of the current market value of one share of Junior Preferred Stock. For the purposes of this Section
14(b), the current market value of a share of Junior Preferred Stock shall be the closing price of a share of Junior Preferred
Stock (as determined pursuant to Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of such exercise.

 

    	- 28 -

    	 

    

  

(c)          The
Company shall not be required to issue fractions of Ordinary Shares or to distribute certificates which evidence fractional Ordinary
Shares or make any entries in the Book Entry account system of the transfer agent that evidence such fractional Ordinary Shares
upon the exercise or exchange of Rights. In lieu of such fractional Ordinary Shares, the Company shall pay to the registered holders
of the Right Certificates at the time such Rights are exercised or exchanged for Ordinary Shares as herein provided an amount in
cash equal to the same fraction of the current market value of a whole share of Ordinary Shares (as determined in accordance with
Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of such exercise or exchange.

 

(d)          The
holder of a Right by the acceptance of the Right expressly waives the right to receive any fractional Rights or any fractional
shares upon exercise or exchange of a Right (except as provided above).

 

Section
15.         Rights of Action. All rights of action in respect of
this Rights Agreement, excepting the rights of action given to the Rights Agent under Section 18 hereof, are vested in
the respective registered holders of the Right Certificates (and, prior to the Distribution Date, the registered holders of
the Ordinary Shares); and any registered holder of any Right Certificate (or, prior to the Distribution Date, of the Ordinary
Shares), without the consent of the Rights Agent or of the holder of any other Right Certificate (or, prior to the
Distribution Date, of the Ordinary Shares), on such holder’s own behalf and for such holder’s own benefit, may
enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in
respect of, such holder’s right to exercise the Rights evidenced by such Right Certificate (or, prior to the
Distribution Date, such Ordinary Shares) in the manner provided in such Right Certificate and in this Rights Agreement.
Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the
holders of Rights would not have an adequate remedy at law for any breach of this Rights Agreement and will be entitled to
specific performance of the obligations under, and injunctive relief against actual or threatened violations of the
obligations of any Person subject to, this Rights Agreement.

 

Section
16.         Agreement of Right Holders. Every holder of a Right, by
accepting the same, consents and agrees with the Company and the Rights Agent and with every other holder of a Right that:

 

(i)          prior
to the Distribution Date, the Rights will be evidenced by the balances
indicated in the Book Entry account system of the transfer agent for the Ordinary Shares registered in the names of
the holders of Ordinary Shares (which Ordinary Shares shall also be deemed to represent certificates for Rights) or, in the case
of certificated shares, the certificates for the Ordinary Shares registered in the names of the holders of the Ordinary Shares
which certificates for Ordinary Shares shall also constitute certificates for Rights) and each Right will be transferable only
in connection with the transfer of the Ordinary Shares;

 

(ii)         after
the Distribution Date, the Right Certificates will be transferable only on the registry books of the Rights Agent if surrendered
at the office of the Rights Agent designated for such purpose, duly endorsed or accompanied by a proper instrument of transfer
and with the appropriate forms and certificates fully executed, along with a signature guarantee and such other and further documentation
as the Rights Agent may reasonably request;

 

    	- 29 -

    	 

    

 

(iii)        the
Company and the Rights Agent may deem and treat the Person in whose name the Right Certificate (or, prior to the Distribution Date,
the associate balance indicated in the Book Entry account system of the transfer agent for the Ordinary Shares or, in the case
of certificated shares, by the associated certificate) is registered as the absolute owner thereof and of the Rights evidenced
thereby (notwithstanding any notations of ownership or writing on the Right Certificates or the associated balance indicated in
the Book Entry account system of the transfer agent for the Ordinary Shares or, in the case of certificated shares, by the associated
certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor
the Rights Agent, subject to Section 7(e) hereof, shall be affected by any notice to the contrary; and

 

(iv)        
notwithstanding anything in this Rights Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability
to any holder of a Right or any other Person as a result of its inability to perform any of its obligations under this Rights Agreement
by reason of any preliminary or permanent injunction or other order, decree, judgment, or ruling issued by a court of competent
jurisdiction or by a governmental, regulatory, or administrative agency or commission, or any statute, rule, regulation, or executive
order promulgated or enacted by any governmental authority, prohibiting or otherwise restraining performance of such obligation;
provided, however, the Company must use its reasonable best efforts to have any such order, decree, judgment, or ruling lifted
or otherwise overturned as promptly as practicable.

 

Section
17.         Right Certificate Holder Not Deemed a Shareholder. No holder,
as such, of any Right Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the
Junior Preferred Stock or any other securities of the Company which may at any time be issuable on the exercise or exchange of
the Rights represented thereby, nor shall anything contained herein or in any Right Certificate be construed to confer upon the
holder of any Right Certificate, as such, any of the rights of a shareholder of the Company or any right to vote for the election
of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate
action, or to receive notice of meetings or other actions affecting shareholders (except as provided in this Rights Agreement),
or to receive dividends or subscription rights, or otherwise, until the Rights evidenced by such Right Certificate shall have
been exercised or exchanged in accordance with the provisions hereof.

 

Section
18.         Concerning the Rights Agent.

 

(a)          In
consideration for the services rendered herein, the Company shall compensate the Rights Agent in accordance with and pursuant to
the written fee schedule attached hereto as Annex [__], plus the Rights Agent’s reasonable and necessary disbursements, charges,
out-of-pocket expenses and counsel fees and expenses incurred in connection with the preparation and execution of this Agreement
and the services rendered by the Rights Agent hereunder.

 

    	- 30 -

    	 

    

 

(b)          The
Company shall be liable for and shall indemnify and hold harmless the Rights Agent from and against any and all claims, losses,
liabilities, damages, expenses or judgments (including reasonable attorney’s fees and expenses) (collectively referred to
herein as “Losses”) howsoever arising from or in connection with this Agreement or the performance of the Rights Agent’s
duties hereunder, the enforcement of this Agreement and disputes between the parties hereto; provided, however, that nothing contained
herein shall require that the Rights Agent be indemnified for the Losses arising from its gross negligence, bad faith or willful
misconduct. The provisions of this Section 18(b) shall survive the termination of this Rights Agreement, the exercise or expiration
of the Rights, and the resignation, replacement, or removal of the Rights Agent.

 

Section
19.         Merger or Consolidation or Change of Name of Rights
Agent. (a) Any corporation into which the Rights Agent or any successor Rights Agent may be merged or with which it may
be consolidated, or any corporation resulting from any merger or consolidation to which the Rights Agent or any successor
Rights Agent shall be a party, or any corporation succeeding to the stock transfer or corporate trust powers of the Rights
Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Rights Agreement without the
execution or filing of any paper or any further act on the part of any of the parties hereto; provided, that such
corporation would be eligible for appointment as a successor Rights Agent under the provisions of Section 21 hereof.
In case at the time such successor Rights Agent shall succeed to the agency created by this Rights Agreement, any of the
Right Certificates shall have been countersigned but not delivered, such successor Rights Agent may adopt the
countersignature of the predecessor Rights Agent and deliver such Right Certificates so countersigned; and in case at that
time any of the Right Certificates shall not have been countersigned, any successor Rights Agent may countersign such Right
Certificates either in the name of the predecessor Rights Agent or in the name of such successor Rights Agent; and in all
such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Rights
Agreement.

 

(b)          In
case at any time the name of the Rights Agent shall be changed and at such time any of the Right Certificates shall have been countersigned
but not delivered the Rights Agent may adopt the countersignature under its prior name and deliver Right Certificates so countersigned;
and in case at that time any of the Right Certificates shall not have been countersigned, the Rights Agent may countersign such
Right Certificates either in its prior name or in its changed name and in all such cases such Right Certificates shall have the
full force provided in the Right Certificates and in this Rights Agreement.

 

Section
20.         Duties of Rights Agent. The Rights Agent undertakes the
duties and obligations imposed by this Rights Agreement upon the following terms and conditions, by all of which the Company and
the holders of Right Certificates, by their acceptance thereof, shall be bound:

 

(a)          The
Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the opinion of such counsel shall be
full and complete authorization and protection to the Rights Agent as to any action taken or omitted by it in accordance with such
opinion.

 

    	- 31 -

    	 

    

 

(b)          Whenever
in the performance of its duties under this Rights Agreement the Rights Agent shall deem it necessary or desirable that any fact
or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless
other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by
a certificate signed by any Authorized Officer and delivered to the Rights Agent; and such certificate shall be full authorization
to the Rights Agent for any action taken or suffered by it under the provisions of this Rights Agreement in reliance upon such
certificate.

 

(c)          In
matters concerning or relating to this Agreement, the Rights Agent shall not be liable or responsible for anything done or omitted
to be done by it in the absence of gross negligence, bad faith or willful misconduct, in which case it shall be liable only for
Losses (as defined below) caused by such gross negligence, bad faith or willful misconduct. In no event shall the Rights Agent
be liable for (i) acting in accordance with the instructions from the Company or its counsel or any agent appointed by the Company
to act on behalf of the Company, (ii) special, consequential or punitive damages, for lost profits or for loss of business or (iii)
any Losses due to forces beyond the control of the Rights Agent, including without limitation, strikes, work stoppages, acts of
war or terrorism, insurrection, revolution, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions
of public utilities.

 

(d)          The
Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Rights Agreement
or in the Right Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and
recitals are and shall be deemed to have been made by the Company only.

 

(e)          The
Rights Agent shall not be under any responsibility in respect of the validity of this Rights Agreement or the execution and delivery
hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate
(except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained
in this Rights Agreement or in any Right Certificate; nor shall it be responsible for any change in the exercisability of the Rights
(including the Rights becoming void pursuant to Section 11(a)(ii) hereof) or any adjustment in the terms of the Rights (including
the manner, method or amount thereof) provided for in Sections 3, 11, 13, 23 and 24, or the
ascertaining of the existence of facts that would require any such change or adjustment (except with respect to the exercise of
Rights evidenced by Right Certificates after receipt of a certificate furnished pursuant to Section 12, describing such
change or adjustment); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization
or reservation of any shares of Junior Preferred Stock or other securities to be issued pursuant to this Rights Agreement or any
Right Certificate or as to whether any shares of Junior Preferred Stock or other securities will, when issued, be validly authorized
and issued, fully paid and nonassessable.

 

(f)          The
Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered
all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying
out or performing by the Rights Agent of the provisions of this Rights Agreement.

 

    	- 32 -

    	 

    

  

(g)          The
Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from
any person reasonably believed by the Rights Agent to be one of the Authorized Officers, and to apply to such Authorized Officers
for advice or instructions in connection with its duties, and it shall not be liable for any action taken or suffered by it in
good faith in accordance with instructions of any such Authorized Officer or for any delay in acting while waiting for those instructions.
Any application by the Rights Agent for written instructions from the Company may, at the option of the Rights Agent, set forth
in writing any action proposed to be taken or omitted by the Rights Agent under this Rights Agreement and the date on and/or after
which such action shall be taken or such omission shall be effective. The Rights Agent shall not be liable for any action taken
by, or omission of, the Rights Agent in accordance with a proposal included in any such application on or after the date specified
in such application (which date shall not be less than five Business Days after the date any Authorized Officer of the Company
actually receives such application, unless any such Authorized Officer shall have consented in writing to an earlier date) unless,
prior to taking any such action (or the effective date in the case of an omission), the Rights Agent shall have received written
instructions in response to such application specifying the action to be taken or omitted.

 

(h)          The
Rights Agent and any shareholder, director, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights
or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested,
or contract with or lend money to the Company or otherwise act as fully and freely as though it were not Rights Agent under this
Rights Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other
legal entity.

 

(i)           The
Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself
or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect
or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct,
provided reasonable care was exercised in the selection and continued employment thereof.

 

(j)           If,
with respect to any Right Certificate surrendered to the Rights Agent for exercise or transfer, the certificate contained in the
form of assignment or the form of election to purchase set forth on the reverse thereof, as the case may be, has not been completed
to certify the holder is not an Acquiring Person (or an Affiliate or Associate thereof) or a transferee thereof, the Rights Agent
shall not take any further action with respect to such requested exercise or transfer without first consulting with the Company.

 

(k)          No
provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability
in the performance of any of its duties hereunder or in the exercise of its rights hereunder if the Rights Agent shall have reasonable
grounds for believing that repayment of such funds or adequate indemnification against such risk or liability is not reasonably
assured to it.

 

    	- 33 -

    	 

    

  

(l)          The
provisions of this Section 20 shall survive the termination of this Rights Agreement, the exercise or expiration of the rights,
and the resignation, replacement, or removal of the Rights Agent.

 

Section
21.         Change of Rights Agent. The Rights Agent or any successor
Rights Agent may resign and be discharged from its duties under this Rights Agreement upon 30 days’ notice in writing mailed
to the Company and to each transfer agent of the Ordinary Shares or the Junior Preferred Stock by registered or certified mail,
and, following the Distribution Date, to the holders of the Right Certificates by first-class mail. The Company may remove the
Rights Agent or any successor Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent or successor Rights
Agent, as the case may be, and to each transfer agent of the Ordinary Shares or the Junior Preferred Stock by registered or certified
mail, and, following the Distribution Date, to the holders of the Right Certificates by first-class mail. If the Rights Agent
shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor to the Rights
Agent. If the Company shall fail to make such appointment within a period of 30 days after giving notice of such removal or after
it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder
of a Right Certificate (who shall, with such notice, submit his Right Certificate for inspection by the Company), then the registered
holder of any Right Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any
successor Rights Agent, whether appointed by the Company or by such a court, shall be (A) a corporation organized and doing business
under the laws of the United States or any State thereof, which is authorized under such laws to exercise corporate trust or stock
transfer powers and is subject to supervision or examination by federal or state authority and which has at the time of its appointment
as Rights Agent a combined capital and surplus of at least $100 million or (B) an affiliate of a corporation described in clause
(A) of this sentence. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities
as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver
and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further
assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment the Company
shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Ordinary Shares or the Junior
Preferred Stock, and, following the Distribution Date, mail a notice thereof in writing to the registered holders of the Right
Certificates. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect
the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as
the case may be.

 

Section
22.         Issuance of New Right Certificates. Notwithstanding any
of the provisions of this Rights Agreement or of the Rights to the contrary, the Company may, at its option, issue new Right Certificates
evidencing Rights in such forms as may be approved by the Special Committee, so long as the Special Committee is in existence
and, thereafter, the Board to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares
or other securities or property purchasable under the Right Certificates made in accordance with the provisions of this Rights
Agreement. In addition, in connection with the issuance or sale of Ordinary Shares following the Distribution Date and prior to
the Expiration Date, the Company may with respect to Ordinary Shares so issued or sold pursuant to (i) the exercise of stock options,
(ii) under any employee plan or arrangement, (iii) the exercise, conversion or exchange of securities, notes or debentures issued
by the Company or (iv) a contractual obligation of the Company, in each case existing prior to the Distribution Date, issue Right
Certificates representing the appropriate number of Rights in connection with such issuance or sale.

 

    	- 34 -

    	 

    

 

Section 23.          Redemption.

 

(a)          The
Special Committee, so long as the Special Committee is in existence and, thereafter, the Board may, at any time prior to such
time as any Person first becomes an Acquiring Person, redeem all but not less than all the then-outstanding Rights at a redemption
price of $0.001 per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring
after the date hereof (the “Redemption Price”). The redemption of the Rights may be made effective at such
time, on such basis and with such conditions as the Special Committee, so long as the Special Committee is in existence and, thereafter,
the Board, in its sole discretion may establish. The Company may, at its option, pay the Redemption Price in cash, Ordinary Shares
(based on the current market price of the Ordinary Shares at the time of the election by the Special Committee, so long as the
Special Committee is in existence and, thereafter, the Board to redeem the Rights as determined pursuant to Section 11(d)(i)
hereof) or any other form of consideration deemed appropriate by the Special Committee, so long as the Special Committee is
in existence and, thereafter, the Board.

 

(b)          Immediately
upon the action of the Special Committee, so long as the Special Committee is in existence and, thereafter, the Board ordering
the redemption of the Rights pursuant to paragraph (a) of this Section 23 (or at such later time as the Special Committee,
so long as the Special Committee is in existence and, thereafter, the Board may establish for the effectiveness of such redemption),
and without any further action and without any notice, the right to exercise the Rights will terminate and the only right thereafter
of the holders of Rights shall be to receive the Redemption Price. The Company shall promptly give (i) written notice to the Rights
Agent of any such redemption, and (ii) public notice of any such redemption; provided, however, that the failure
to give, or any defect in, any such notice shall not affect the validity of such redemption. Within 10 days after such action of
the Special Committee, so long as the Special Committee is in existence and, thereafter, the Board ordering the redemption of the
Rights (or such later time as the Special Committee, so long as the Special Committee is in existence and, thereafter, the Board
may establish for the effectiveness of such redemption), the Company shall mail a notice of redemption to all the holders of the
then-outstanding Rights at their last addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution
Date, on the registry books of the transfer agent for the Ordinary Shares. Any notice which is mailed in the manner herein provided
shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption shall state the method by
which the payment of the Redemption Price will be made.

 

    	- 35 -

    	 

    

 

Section
24.          Exchange.    (a)      The
Special Committee, so long as the Special Committee is in existence and, thereafter, the Board may, at its option, at any time
after any Person first becomes an Acquiring Person, exchange all or part of the then-outstanding and exercisable Rights (which
shall not include Rights that have become void pursuant to the provisions of Section 11(a)(ii) hereof) for Ordinary Shares
(or shares of Junior Preferred Stock) at an exchange ratio of one Ordinary Share (or one-hundredth of a share of Junior Preferred
Stock) per Right or one ADS per three Rights, appropriately adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof (such amount per Right being hereinafter referred to as the “Exchange Ratio”).
Notwithstanding the foregoing, the Special Committee, so long as the Special Committee is in existence and, thereafter, the Board
shall not be empowered to effect such exchange at any time after an Acquiring Person becomes the Beneficial Owner of Ordinary
Shares aggregating 50% or more of the Ordinary Shares then outstanding. From and after the occurrence of an event specified in
Section 13(a) hereof, any Rights that theretofore have not been exchanged pursuant to this Section 24(a) shall thereafter
be exercisable only in accordance with Section 13 and may not be exchanged pursuant to this Section 24(a). The exchange
of the Rights by the Special Committee, so long as the Special Committee is in existence and, thereafter, the Board may be made
effective at such time, on such basis and with such conditions as the Special Committee, so long as the Special Committee is in
existence and, thereafter, the Board in its sole discretion may establish. Following the action of the Special Committee, so long
as the Special Committee is in existence and, thereafter, the Board ordering the exchange of any Rights pursuant to this Section
24, the Company may implement such procedures as it deems appropriate, in its sole discretion, for the purpose of ensuring
that the Ordinary Shares (or such other consideration) issuable upon an exchange pursuant to this Section 24 is not received
by holders of Rights that have become null and void pursuant to Section 11(a)(ii). Before effecting an exchange pursuant
to this Section 24, the Special Committee, so long as the Special Committee is in existence and, thereafter, the Board
may direct the Company to enter into a Trust Agreement in such form and with such terms as the Special Committee, so long as the
Special Committee is in existence and, thereafter, the Board shall then approve (the “Trust Agreement”). If
the Special Committee, so long as the Special Committee is in existence and, thereafter, the Board so directs, the Company shall
enter into the Trust Agreement and shall issue to the trust created by such agreement (the “Trust”) all or
a portion (as designated by the Special Committee, so long as the Special Committee is in existence and, thereafter, the Board)
of the Ordinary Shares (or shares of Junior Preferred Stock) issuable pursuant to the exchange, and all holders of Rights entitled
to receive such shares pursuant to the exchange shall be entitled to receive such shares (and any dividends paid or distributions
made thereon after the date on which such shares are deposited in the Trust) only from the Trust and solely upon compliance with
the relevant terms and provisions of the Trust Agreement and this Rights Agreement. Prior to effecting an exchange and registering
Ordinary Shares (or shares of Junior Preferred Stock) in any Person's name, including any nominee or transferee of a Person, the
Company may require (or cause the trustee of the Trust to require), as a condition thereof, that any holder of Rights provide
evidence, including, without limitation, the identity of the Beneficial Owners thereof (or former Beneficial Owners thereof) as
the Company shall reasonably request in order to determine if such Rights are null and void. If any Person shall fail to comply
with such request, the Company shall be entitled conclusively to deem the Rights formerly held by such Person to be null and void
pursuant to Section 11(a)(ii) and not transferable or exercisable or exchangeable in connection herewith. Any Ordinary
Shares or shares of Junior Preferred Stock issued at the direction of the Special Committee, so long as the Special Committee
is in existence and, thereafter, the Board in connection herewith shall be validly issued, fully paid and nonassessable Ordinary
Shares or shares of Junior Preferred Stock (as the case may be), and the Company shall be deemed to have received as consideration
for such issuance a benefit having a value that is at least equal to the aggregate par value of the shares so issued.

 

    	- 36 -

    	 

    

 

(b)         Immediately
upon the effectiveness of the action of the Special Committee, so long as the Special Committee is in existence and, thereafter,
the Board ordering the exchange of any Rights pursuant to paragraph (a) of this Section 24 and without any further action
and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights
shall be to receive that number of Ordinary Shares equal to the number of such Rights held by such holder multiplied by the Exchange
Ratio. The Company shall promptly give (i) written notice to the Rights Agent of any such exchange and (ii) public notice of any
such exchange; provided, however, that the failure to give, or any defect in, such notice shall not affect the validity of such
exchange. The Company shall promptly mail a notice of any such exchange to all of the holders of the Rights so exchanged at their
last addresses as they appear upon the registry books of the Rights Agent. Any notice which is mailed in the manner herein provided
shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which
the exchange of the Ordinary Shares for Rights will be effected and, in the event of any partial exchange, the number of Rights
which will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which
have become void pursuant to the provisions of Section 11(a)(ii) hereof) held by each holder of Rights.

 

(c)         The
Company may at its option substitute and, in the event that there shall not be sufficient Ordinary Shares issued but not outstanding
or authorized but unissued (and unreserved) to permit an exchange of Rights as contemplated in accordance with this Section
24, the Company shall substitute to the extent of such insufficiency, for each Ordinary Share or ADS that would otherwise be
issuable upon exchange of a Right, a number of shares of Junior Preferred Stock or fraction thereof (or equivalent preferred shares
as such term is defined in Section 11(b)) such that the current per share market price (determined pursuant to Section
11(d) hereof) of one share of Junior Preferred Stock (or equivalent preferred share) multiplied by such number or fraction
is equal to the current per share market price of one share of Ordinary Shares (determined pursuant to Section 11(d) hereof)
as of the date of such exchange.

 

Section
25.         Notice of Certain Events.  (a)
  In case the Company shall at any time after the earlier of the Distribution Date or the Stock Acquisition Date
propose (i) to pay any dividend payable in stock of any class to the holders of its Junior Preferred Stock or to make any
other distribution to the holders of its Junior Preferred Stock (other than a regular quarterly cash dividend), (ii) to offer
to the holders of its Junior Preferred Stock rights or warrants to subscribe for or to purchase any additional shares of
Junior Preferred Stock or shares of stock of any class or any other securities, rights or options, (iii) to effect any
reclassification of its Junior Preferred Stock (other than a reclassification involving only the subdivision or combination
of outstanding Junior Preferred Stock), (iv) to effect the liquidation, dissolution or winding up of the Company, or (v) to
declare or pay any dividend on the shares of any class or series of Ordinary Shares payable in the shares of any class or
series of Ordinary Shares or to effect a subdivision, combination or consolidation of the shares of any class or series of
Ordinary Shares (by reclassification or otherwise than by payment of dividends in Ordinary Shares), then, in each such case,
the Company shall give to each holder of a Rights Certificate, to the extent feasible, and to the Rights Agent, in accordance
with Section 26 hereof, a notice of such proposed action, which shall specify the record date for the purposes of such
stock dividend, or distribution or offering of rights or warrants, or the date on which such liquidation, dissolution,
reclassification, subdivision, combination, consolidation or winding up is to take place and the date of participation
therein by the holders of the Ordinary Shares and/or Junior Preferred Stock, if any such date is to be fixed, and such notice
shall be so given in the case of any action covered by clause (i) or (ii) above at least 10 days prior to the record date for
determining holders of the Junior Preferred Stock for purposes of such action, and in the case of any such other action, at
least 10 days prior to the date of the taking of such proposed action or the date of participation therein by the holders of
the Ordinary Shares and/or Junior Preferred Stock, whichever shall be the earlier.

 

    	- 37 -

    	 

    

 

(b)         In
case any event described in Section 11(a)(ii) or Section 13 shall occur then, in any such case, (i) the Company shall
as soon as practicable thereafter give to each holder of a Right Certificate (or if occurring prior to the Distribution Date, the
holders of the Ordinary Shares) in accordance with Section 26 hereof, to the extent feasible, and to the Rights Agent in
accordance with Section 26 hereof, a written notice of the occurrence of such event, which notice shall describe such event and
the consequences of such event to holders of Rights under Section 11(a)(ii) and Section 13 hereof; and (ii) with
respect to any event described in Section 11(a)(ii), all references in the preceding Section 25(a) to Junior Preferred
Stock shall be deemed to refer, if appropriate, to any other securities that may be acquired upon exercise of a Right.

 

Section
26.          Notices.    Notices or demands authorized by this Rights Agreement to be given or made by the Rights Agent or by
the holder of any Right Certificate to or on the Company shall be sufficiently given or made if sent by first-class mail, postage
prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows:

 

ChinaEdu Corporation

4th Floor-A, GeHua Building

No. 1 Qinglong Hutong, Dongcheng District

Beijing, 100007

The People’s Republic of China

Attention: President

 

Subject to the provisions of Section
21 hereof, any notice or demand authorized by this Rights Agreement to be given or made by the Company or by the holder of
any Right Certificate to or on the Rights Agent shall be sufficiently given or made if sent by first-class mail, postage prepaid,
addressed (until another address is filed in writing with the Company) as follows:

 

The Bank of New York Mellon

101 Barclay Street

New York, New York 10286

Attention: Manager, ADR Division

Notices or demands authorized by this Rights
Agreement to be given or made by the Company or the Rights Agent to the holder of any Right Certificate shall be sufficiently given
or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry
books of the Company.

 

    	- 38 -

    	 

    

 

Section
27.         Supplements and Amendments.   Except as otherwise provided in this Section 27, the Company, by action
of the Special Committee, so long as the Special Committee is in existence and, thereafter, the Board, may from time to time and
in its sole and absolute discretion, and the Rights Agent shall if the Company so directs, supplement or amend any provision of
this Rights Agreement in any respect without the approval of any holders of Rights, including, without limitation, in order to
(a) cure any ambiguity, (b) correct or supplement any provision contained herein that may be defective or inconsistent with any
other provisions herein, (c) shorten or lengthen any time period hereunder, (d) otherwise change, amend, or supplement any provisions
hereunder in any manner that the Company may deem necessary or desirable; provided, however, that from and after
such time as any Person becomes an Acquiring Person, this Rights Agreement shall not be supplemented or amended in any manner
that would adversely affect the interests of the holders of Rights (other than an Acquiring Person, an Affiliate or Associate
of an Acquiring Person or Rights that have become null and void pursuant to Section 11(a)(ii) hereof) as such or cause
this Rights Agreement to become amendable other than in accordance with this Section 27. Without limiting the foregoing,
the Company, by action of the Special Committee, so long as the Special Committee is in existence and, thereafter, the Board thereof,
may at any time before any Person becomes an Acquiring Person amend this Rights Agreement to make the provisions of this Rights
Agreement inapplicable to a particular transaction by which a Person might otherwise become an Acquiring Person or to otherwise
alter the terms and conditions of this Rights Agreement as they may apply with respect to any such transaction. Upon the delivery
of a certificate from an appropriate officer of the Company that states that the proposed supplement or amendment is in compliance
with the terms of this Section 27, the Rights Agent shall execute such supplement or amendment.

 

Section
28.        Successors.    All the covenants and provisions of this Rights
Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors
and assigns hereunder.

 

Section
29.        Benefits of this Rights Agreement.   Nothing in this Rights Agreement shall be construed to give to any Person
other than the Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution
Date, the Ordinary Shares and ADS Holders) any legal or equitable right, remedy or claim under this Rights Agreement; but this
Rights Agreement shall be for the sole and exclusive benefit of the Company, the Rights Agent and the registered holders of the
Right Certificates (and, prior to the Distribution Date, the Ordinary Shares and ADS Holders).

 

Section
30.        Determinations and Actions by the Board of Directors. The Special Committee, so long as the Special Committee
is in existence and, thereafter, the Board shall have the exclusive power and authority to administer this Rights Agreement and
to exercise the rights and powers specifically granted to the Board of Directors of the Company or to the Company, or as may be
necessary or advisable in the administration of this Rights Agreement, including, without limitation, the right and power to (i)
interpret the provisions of this Rights Agreement and (ii) make all determinations deemed necessary or advisable for the administration
of this Rights Agreement (including, without limitation, a determination to redeem or not redeem the Rights or to amend this Rights
Agreement). All such actions, calculations, interpretations and determinations that are done or made by the Special Committee,
so long as the Special Committee is in existence and, thereafter, the Board in good faith, shall be final, conclusive and binding
on the Company, the Rights Agent, the holders of the Rights, as such, and all other parties.

 

    	- 39 -

    	 

    

 

Section
31.        Review by the Special Committee. The Special Committee (or any successor committee) shall review and evaluate
this Rights Agreement prior to the Expiration Date in order to consider whether the maintenance of this Rights Agreement continues
to be in the best interests of the Company and the shareholders of the Company. Following each such review, the Special Committee
shall communicate its conclusions to the full Board, including any recommendation in light thereof as to whether this Rights Agreement
should be modified or the Rights should be redeemed. The Special Committee, when considering whether this Rights Agreement should
be modified or the Rights should be redeemed, shall have the power and authority (a) to set its own agenda, (b) to retain, at
the expense of the Company, its choice of legal counsel, investment bankers and other advisors and (c) to review all information
of the Company and to consider any and all factors it deems relevant to an evaluation of whether this Rights Agreement should
be modified or the Rights should be redeemed.

 

Section
32.        Severability. If any term, provision, covenant or restriction of this Rights Agreement or applicable to this
Rights Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder
of the terms, provisions, covenants and restrictions of this Rights Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

 

Section
33.        Governing Law.    This Agreement shall be interpreted and construed in accordance with the laws of the State
of New York, U.S.A. All actions and proceedings brought by the Rights Agent relating to or arising from, directly or indirectly,
this Agreement may be litigated in courts located within the State of New York. The Company hereby submits to the personal jurisdiction
of such courts and consents that any service of process may be made by certified or registered mail, return receipt requested,
directed to the Company at its address last specified for notices hereunder. Each of the parties hereto hereby waives the right
to a trial by jury in any action or proceeding arising out of or relating to this Agreement.

 

Section
34.        Counterparts.     This Rights Agreement may be executed in any number of counterparts and each of such counterparts
shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

Section
35.      Descriptive Headings.     Descriptive headings of the several Sections of this Rights Agreement are inserted
for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof.

 

Section
36.       USA PATRIOT Act.      Each Person that is a party hereto acknowledges that the Rights Agent is subject to the
customer identification program ("Customer Identification Program") requirements under the USA PATRIOT Act and its implementing
regulations, and that the Rights Agent must obtain, verify and record information that allows the Rights Agent to identify each
such person or entity. Accordingly, prior to accepting an appointment hereunder, the Rights Agent may request information from
any such person or entity that will help the Rights Agent to identify such person or entity, including, without limitation, as
applicable, such person or entity's physical address, tax identification number, organizational documents, certificate of good
standing, license to do business, or any other information that the Rights Agent deems necessary. Each Person that is a party
hereto acknowledges that the Rights Agent cannot accept an appointment hereunder unless and until the Rights Agent verifies each
such person or entity's identity in accordance with the Customer Identification Program requirements.

 

[signature page follows]

 

    	- 40 -

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Rights Agreement to be duly executed and attested, all as of the day and year first above written.

 

	 	 	CHINAEDU CORPORATION
	 	 	 
	Attest:	/s/ 	 	By:	/s/ Julia Huang
	 	 	 	Name: Julia Huang
	 	 	 	Title: Executive Chairman
	 	 	 	 
	 	 	THE BANK OF NEW YORK MELLON
	 	 	 	 
	Attest:	/s/ 	 	By:	/s/ Gregory Roath
	 	 	 	Name: Gregory Roath
	 	 	 	Title: Managing Director

 

    	 

    	 

    

 

Exhibit
A

 

TERMS

 

OF

 

JUNIOR PARTICIPATING PREFERRED STOCK

 

OF

 

CHINAEDU CORPORATION

 

 

  

ChinaEdu Corporation,
a Cayman Islands exempted company (the “Company”), hereby certifies that the following resolution was duly adopted
by the Board of Directors of the Company:

 

RESOLVED, that pursuant
to the authority vested in the Board of Directors of the Company (hereinafter being referred to as the “Board of Directors”
or the “Board”) in accordance with the provisions of the Company’s Memorandum and Articles of Association,
the Board of Directors hereby creates a series of preferred shares, par value $0.01 per share, of the Company, to be designated
the “Junior Participating Preferred Stock” and hereby adopts the resolution establishing the designations, number of
shares, voting powers, preferences and relative, participating, optional and other rights, and the qualifications, restrictions
and limitations thereof, of the shares of such series as set forth below:

 

Section
1.          Designation and Amount. The shares of such series shall
be designated as “Junior Participating Preferred Stock” (the “Junior Preferred Stock”) and the number
of shares constituting the Junior Preferred Stock shall be [__________]. Such number of shares may be increased or decreased by
resolution of the Board of Directors; provided, that no decrease shall reduce the number of shares of Junior Preferred Stock
to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of
outstanding options, rights or warrants or upon the conversion of any outstanding securities issued by the Company convertible
into Junior Preferred Stock.

 

    	A-1

    	 

    

 

 

Section
2.             Dividends and Distributions.

 

(A)         Subject
to the rights of the holders of any shares of any series of preferred stock of the Company (the “Preferred Stock”)
ranking prior and superior to the Junior Preferred Stock with respect to dividends, the holders of shares of Junior Preferred Stock,
in preference to the holders of Ordinary Shares, par value $0.01 per share, of the Company (the “Ordinary Shares”)
and of any other stock of the Company ranking junior to the Junior Preferred Stock, shall be entitled to receive, when, as and
if declared by the Board of Directors out of funds legally available therefor, dividends (A)
on each date that dividends or other distributions (other than dividends or distributions payable in Ordinary Shares of the Company)
are payable on or in respect of Ordinary Shares comprising part of the Reference Package (as defined below), in an amount per whole
share of this Series equal to the aggregate amount of dividends or other distributions (other than dividends or distributions payable
in Ordinary Shares of the Company) that would be payable on such date to a holder of the Reference Package, and (B) on the last
day of January, April, July, and October in each year, in an amount per whole share of this Series equal to the excess (if any)
of a dollar amount equal to 0.25% of $2,000.00 over the aggregate dividends paid per whole share of this Series during the
three month period ending on such last day. The term "Reference Package" shall initially mean 100 Ordinary Shares, provided
that in the event the Company shall at any time after September 17, 2013 (the “Rights Agreement Date”)
declare and pay any dividend on the Ordinary Shares payable in Ordinary Shares, or effect a subdivision or combination or consolidation
of the outstanding Ordinary Shares (by reclassification or otherwise than by payment of a dividend in Ordinary Shares) into a greater
or lesser number of Ordinary Shares, then and in each such case the Reference Package after such event shall be the Ordinary Shares
that a holder of the Reference Package immediately prior to such event would hold thereafter as a result thereof.

 

(B)         The
Company shall declare a dividend or distribution on the Junior Preferred Stock as provided in paragraph (A) of this Section immediately
after it declares a dividend or distribution on the Ordinary Shares (other than a dividend payable in Ordinary Shares); provided
that, in the event no dividend or distribution shall have been declared on the Ordinary Shares during the period between any Dividend
Payment Date and the next subsequent Dividend Payment Date, a dividend of the excess (if any) of a dollar amount equal to 0.25%
of $2,000.00 over the aggregate dividends paid per whole share of this Series during the three month period ending on such
subsequent Dividend Payment Date per share on the Junior Preferred Stock shall nevertheless be payable, when, as and if declared,
on such subsequent Dividend Payment Date.

 

(C)         Dividends
shall begin to accrue and be cumulative, whether or not earned or declared, on outstanding shares of Junior Preferred Stock from
the Dividend Payment Date next preceding the date of issue of such shares, unless the date of issue of such shares is prior to
the record date for the first Dividend Payment Date, in which case dividends on such shares shall begin to accrue from the date
of issue of such shares, or unless the date of issue is a Dividend Payment Date or is a date after the record date for the determination
of holders of shares of Junior Preferred Stock entitled to receive a quarterly dividend and before such Dividend Payment Date,
in either of which events such dividends shall begin to accrue and be cumulative from such Dividend Payment Date. Accrued but unpaid
dividends shall not bear interest. Dividends paid on the shares of Junior Preferred Stock in an amount less than the total amount
of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all
such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of
Junior Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be not
more than 60 days prior to the date fixed for the payment thereof.

 

    	A-2

    	 

    

 

Section
3.             Voting Rights. The holders of shares of Junior Preferred
Stock shall have the following voting rights:

 

(A)         Subject
to the provision for adjustment hereinafter set forth and except as otherwise provided in the Certificate of Incorporation or required
by law, each share of Junior Preferred Stock shall entitle the holder thereof to 100 votes on all matters upon which the holders
of the Ordinary Shares of the Company are entitled to vote. In the event the Company shall at any time after the Rights Agreement
Date declare or pay any dividend on the Ordinary Shares payable in Ordinary Shares, or effect a subdivision or combination or consolidation
of the outstanding Ordinary Shares (by reclassification or otherwise than by payment of a dividend in Ordinary Shares) into a greater
or lesser number of Ordinary Shares, then in each such case the number of votes per share to which holders of shares of Junior
Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction, the numerator
of which is the number of Ordinary Shares outstanding immediately after such event and the denominator of which is the number of
Ordinary Shares that were outstanding immediately prior to such event.

 

(B)         Except
as otherwise provided herein, creating a series of Preferred Stock, and except as otherwise required by law, the holders of shares
of Junior Preferred Stock and the holders of Ordinary Shares and any other capital stock of the Company having general voting rights
shall vote together as one class on all matters submitted to a vote of shareholders of the Company.

 

(C)         Except
as set forth herein, or as otherwise provided by law, holders of Junior Preferred Stock shall have no special voting rights and
their consent shall not be required (except to the extent they are entitled to vote with holders of Ordinary Shares as set forth
herein) for taking any corporate action.

 

    	A-3

    	 

    

 

(D)         If,
at the time of any annual meeting of shareholders for the election of directors, the equivalent of six quarterly dividends (whether
or not consecutive) payable on any share or shares of Junior Preferred Stock are in default, the number of directors constituting
the Board of Directors of the Company shall be increased by two. In addition to voting together with the holders of Ordinary Shares
for the election of other directors of the Company, the holders of record of the Junior Preferred Stock, together with the holders
of outstanding shares of any one or more other classes or series of capital stock of the Company upon which like voting rights
have been conferred and are exercisable (voting together as a class) shall be entitled at said meeting of shareholders (and at
each subsequent annual meeting of shareholders), unless all dividends in arrears on the Junior Preferred Stock have been paid or
declared and set apart for payment prior thereto, to vote for the election of two directors of the Company, the holders of any
Junior Preferred Stock being entitled to cast a number of votes per share of Junior Preferred Stock as is specified in paragraph
(A) of this Section 3. Each such additional director shall serve until the next annual meeting of shareholders for the election
of directors, or until his successor shall be elected and shall qualify, or until his right to hold such office terminates pursuant
to the provisions of this Section 3(D). Until the default in payments of all dividends which permitted the election of said
directors shall cease to exist, any director who shall have been so elected pursuant to the provisions of this Section 3(D)
may be removed at any time, without cause, only by the affirmative vote of a majority of the voting power of the holders of the
shares of Junior Preferred Stock together with the holders of outstanding shares of any one or more other classes or series of
capital stock of the Company upon which like voting rights have been conferred and are exercisable (voting together as a class)at
a special meeting of such holders called for that purpose, and any vacancy thereby created may be filled by the vote of such holders.
If and when such default shall cease to exist, the holders of the Junior Preferred Stock shall be divested of the foregoing special
voting rights, subject to revesting in the event of each and every subsequent like default in payments of dividends. Upon the termination
of the foregoing special voting rights, the terms of office of all persons who may have been elected directors pursuant to said
special voting rights shall forthwith terminate, and the number of directors constituting the Board of Directors shall be reduced
by two. The voting rights granted by this Section 3(D) shall be in addition to any other voting rights granted to the holders
of the Junior Preferred Stock in this Section 3.

 

Section
4.             Certain Restrictions.

 

(A)         Whenever
quarterly dividends or other dividends or distributions payable on the shares of Junior Preferred Stock as provided in Section
2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not earned or declared,
on shares of Junior Preferred Stock outstanding shall have been paid in full, the Company shall not:

 

(i)          declare
or pay dividends, or make any other distributions, on any shares of stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Junior Preferred Stock;

 

(ii)         declare
or pay dividends, or make any other distributions, on any shares of stock ranking on a parity (either as to dividends or upon liquidation,
dissolution or winding up) with the Junior Preferred Stock, except dividends paid ratably on the shares of Junior Preferred Stock
and all such parity stock on which dividends are payable or in arrears in proportion to the total amounts to which the holders
of all such shares are then entitled;

 

(iii)        redeem
or purchase or otherwise acquire for consideration shares of any stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Junior Preferred Stock, provided that the Company may at any time redeem, purchase or otherwise
acquire shares of any such junior stock in exchange for shares of any stock of the Company ranking junior (as to dividends and
upon dissolution, liquidation or winding up) to the Junior Preferred Stock or rights, warrants or options to acquire such junior
stock; or

 

    	A-4

    	 

    

 

(iv)        redeem
or purchase or otherwise acquire for consideration any shares of Junior Preferred Stock, or any shares of stock ranking on a parity
(either as to dividends or upon liquidation, dissolution or winding up) with the Junior Preferred Stock, except in accordance with
a purchase offer made in writing or by publication (as determined by the Board of Directors) to all holders of such shares upon
such terms as the Board of Directors, after consideration of the respective annual dividend rates and other relative rights and
preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among
the respective series or classes.

 

(B)         The
Company shall not permit any subsidiary of the Company to purchase or otherwise acquire for consideration any shares of stock of
the Company unless the Company could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at
such time and in such manner.

 

Section
5.            Reacquired Shares. Any shares of Junior Preferred Stock
purchased or otherwise acquired by the Company in any manner whatsoever shall be retired and cancelled promptly after the acquisition
thereof. All such shares shall upon their retirement become authorized but unissued shares of Preferred Stock and may be reissued
as part of a new series of Preferred Stock to be created by resolution or resolutions of the Board of Directors, subject to any
conditions and restrictions on issuance set forth herein.

 

Section
6.            Liquidation, Dissolution or Winding Up. Upon any liquidation,
dissolution or winding up of the Company, no distribution shall be made (A) to the holders of the Ordinary Shares or of shares
of any other stock of the Company ranking junior, upon liquidation, dissolution or winding up, to the Junior Preferred Stock unless,
prior thereto, the holders of shares of Junior Preferred Stock shall have received $2,000.00 per share, plus an amount equal to
accrued and unpaid dividends and distributions thereon, whether or not earned or declared, to the date of such payment, provided
that the holders of shares of Junior Preferred Stock shall be entitled to receive an aggregate amount per share, subject to the
provision for adjustment hereinafter set forth, equal to 100 times the aggregate amount to be distributed per share to holders
of Ordinary Shares, or (B) to the holders of shares of stock ranking on a parity upon liquidation, dissolution or winding up with
the Junior Preferred Stock, except distributions made ratably on the Junior Preferred Stock and all such parity stock in proportion
to the total amounts to which the holders of all such shares are entitled upon such liquidation, dissolution or winding up. In
the event, however, that there are not sufficient assets available to permit payment in full of the Junior Preferred Stock liquidation
preference and the liquidation preferences of all other classes and series of stock of the Company, if any, that rank on a parity
with the Junior Preferred Stock in respect thereof, then the assets available for such distribution shall be distributed ratably
to the holders of the Junior Preferred Stock and the holders of such parity shares in the proportion to their respective liquidation
preferences. In the event the Company shall at any time after the Rights Agreement Date declare or pay any dividend on the Ordinary
Shares payable in Ordinary Shares together with the holders of outstanding shares of any one or more other classes or series of
capital stock of the Company upon which like voting rights have been conferred and are exercisable (voting together as a class),
or effect a subdivision or combination or consolidation of the outstanding Ordinary Shares (by reclassification or otherwise than
by payment of a dividend in Ordinary Shares) into a greater or lesser number of Ordinary Shares, then in each such case the aggregate
amount to which holders of shares of Junior Preferred Stock were entitled immediately prior to such event under the proviso in
clause (A) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which is the number
of Ordinary Shares outstanding immediately after such event and the denominator of which is the number of Ordinary Shares that
were outstanding immediately prior to such event.

 

    	A-5

    	 

    

 

Neither the merger or
consolidation of the Company into or with another entity nor the merger or consolidation of any other entity into or with the Company
(nor the sale of all or substantially all of the assets of the Company) shall be deemed to be a liquidation, dissolution or winding
up of the Company within the meaning of this Section 6.

 

Section
7.             Consolidation, Merger, etc. In case the Company shall
enter into any consolidation, merger, combination or other transaction in which the Ordinary Shares are converted into, exchanged
for or changed into other stock or securities, cash and/or any other property, then in any such case each share of Junior Preferred
Stock shall at the same time be similarly converted into, exchanged for or changed into an amount per share (subject to the provision
for adjustment hereinafter set forth) equal to 100 times the aggregate amount of stock, securities, cash and/or any other property
(payable in kind), as the case may be, into which or for which each share of Ordinary Shares is converted, exchanged or converted.
In the event the Company shall at any time after the Rights Agreement Date declare or pay any dividend on the Ordinary Shares payable
in Ordinary Shares, or effect a subdivision or combination or consolidation of the outstanding Ordinary Shares (by reclassification
or otherwise than by payment of a dividend in Ordinary Shares) into a greater or lesser number of Ordinary Shares, then in each
such case the amount set forth in the preceding sentence with respect to the conversion, exchange or change of shares of Junior
Preferred Stock shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of Ordinary Shares
outstanding immediately after such event and the denominator of which is the number of Ordinary Shares that were outstanding immediately
prior to such event.

 

Section
8.             No Redemption. The shares of Junior Preferred Stock
shall not be redeemable from any holder.

 

Section
9.            Rank. The Junior Preferred Stock shall rank, with respect
to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up of the Company, junior to
all other series of Preferred Stock and senior to the Ordinary Shares.

 

    	A-6

    	 

    

 

Section
10.          Amendment. If any proposed amendment to the Amended and
Restated Memorandum and Articles of Association would alter, change or repeal any of the preferences, powers or special rights
given to the Junior Preferred Stock so as to affect the Junior Preferred Stock adversely, then the holders of shares of the Junior
Preferred Stock shall be entitled to vote separately as a class upon such amendment, and the affirmative vote of two-thirds of
the outstanding shares of the Junior Preferred Stock, voting separately as a class, shall be necessary for the adoption thereof,
in addition to such other vote as may be required by the Cayman Islands Companies Law (Revised).

 

Section
11.          Fractional Shares. Junior Preferred Stock may be issued
in fractions of a share that shall entitle the holder, in proportion to such holder’s fractional shares, to exercise voting
rights, receive dividends, participate in distributions and to have the benefit of all other rights of holders of Junior Preferred
Stock.

 

    	A-7

    	 

    

 

Exhibit
B

 

Form
of Right Certificate

 

	Certificate No. R- ____	___ Rights

 

NOT EXERCISABLE AFTER THE EXPIRATION
DATE (AS DEFINED IN THE RIGHTS AGREEMENT REFERRED TO BELOW). AT THE OPTION OF THE COMPANY, THE RIGHTS ARE SUBJECT TO REDEMPTION
AT $0.001 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN
THE RIGHTS AGREEMENT, RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE RIGHTS
AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.

 

Right Certificate

 

CHINAEDU CORPORATION

 

This certifies that [___________]
or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof,
subject to the terms, provisions and conditions of the Rights Agreement, dated as of September 17, 2013 as the same may be amended
from time to time (the “Rights Agreement”), between ChinaEdu Corporation, a Cayman Islands exempted company
(the “Company”), and The Bank of New York Mellon (the “Rights Agent”), to purchase from the
Company at any time after the Distribution Date (as such term is defined in the Rights Agreement) and prior to 5:00 P.M., New York
City time, on the Expiration Date at the office or agency of the Rights Agent designated for such purpose, or of its successor
as Rights Agent, one one-hundredth of a fully paid non-assessable share of Junior Participating Preferred Stock, par value $0.01
per share (the “Junior Preferred Stock”), of the Company, at a purchase price of $20.00 per one one-hundredth
of a share of Junior Preferred Stock (the “Purchase Price”), upon presentation and surrender of this Right Certificate
with the Form of Election to Purchase duly executed. The number of Rights evidenced by this Right Certificate (and the number of
one one-hundredth of a share of Junior Preferred Stock which may be purchased upon exercise hereof) set forth above, and the Purchase
Price set forth above, are the number and Purchase Price as of [___________], 2013, based on the Junior Preferred Stock as constituted
at such date. As provided in the Rights Agreement, the Purchase Price, the number of one one-hundredth of a share of Junior Preferred
Stock (or other securities or property) which may be purchased upon the exercise of the Rights and the number of Rights evidenced
by this Right Certificate are subject to modification and adjustment upon the happening of certain events.

 

    	B-1

    	 

    

 

Upon the occurrence of
the events described in Section 11(a)(ii) and Section 13 of the Rights Agreement, if the Rights evidenced by this Right Certificate
are beneficially owned by an Acquiring Person or an Affiliate or Associate of any such Acquiring Person or, under certain circumstances
described in the Rights Agreement, a transferee of any such Acquiring Person, Associate or Affiliate, such Rights shall become
null and void and no holder hereof shall have any right with respect to such Rights from and after the occurrence of such events.

 

In certain circumstances
described in the Rights Agreement, the Rights evidenced hereby may entitle the registered holder thereof to purchase capital stock
of an entity other than the Company or receive common stock, cash or other assets of an entity other than the Company, all as provided
in the Rights Agreement.

 

This Right Certificate
is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby
incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description
of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders
of the Right Certificates. Copies of the Rights Agreement are on file at the principal executive offices of the Company. The Company
will mail to the holder of this Right Certificate a copy of the Rights Agreement without charge after receipt of a written request
therefor.

 

This Right Certificate,
with or without other Right Certificates, upon surrender at the office or agency of the Rights Agent designated for such purpose,
may be exchanged for another Right Certificate or Right Certificates of like tenor and date evidencing Rights entitling the holder
to purchase a like aggregate number of shares of Junior Preferred Stock as the Rights evidenced by the Right Certificate or Right
Certificates surrendered shall have entitled such holder to purchase. If this Right Certificate shall be exercised in part, the
holder shall be entitled to receive upon surrender hereof another Right Certificate or Right Certificates for the number of whole
Rights not exercised.

 

Subject to the provisions
of the Rights Agreement, the Rights evidenced by this Certificate (i) may be redeemed by the Company at a redemption price of $0.001
per Right or (ii) may be exchanged, at the option of the Company, in whole or in part for shares of Junior Preferred Stock or shares
of the Company’s Ordinary Shares, par value $0.01 per share.

 

No fractional shares
of Junior Preferred Stock or Ordinary Shares will be issued upon the exercise or exchange of any Right or Rights evidenced hereby
(other than fractions of Junior Preferred Stock which are integral multiples of one one-hundredth of a share of Junior Preferred
Stock, which may, at the election of the Company, be evidenced by depositary receipts), but in lieu thereof a cash payment will
be made, as provided in the Rights Agreement.

 

No holder of this Right
Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the Junior Preferred
Stock or of any other securities of the Company which may at any time be issuable on the exercise or exchange hereof, nor shall
anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights
of a shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders
at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions
affecting shareholders (except as provided in the Rights Agreement) or to receive dividends or subscription rights, or otherwise,
until the Right or Rights evidenced by this Right certificate shall have been exercised or exchanged as provided in the Rights
Agreement.

 

    	B-2

    	 

    

 

This Right Certificate
shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent.

 

WITNESS the facsimile
signature of the proper officers of the Company and its corporate seal. Dated as of ___________ __, 2013.

 

	ATTEST:	 	CHINAEDU CORPORATION
	 	 	 
	By:	 	 	By:	 

 

	Countersigned:	 
	 	 
	THE BANK OF NEW YORK MELLON,	 
	as Rights Agent	 

 

	By:	 	 
	 	Authorized Signatory	 

 

    	B-3

    	 

    

 

Form of Reverse Side of Right Certificate

 

FORM OF ASSIGNMENT

 

(To be executed by the registered holder
if such 

holder desires to transfer the Right
Certificate)

 

FOR VALUE RECEIVED _________________________
hereby sells, assigns and transfer unto ___________________________

 

____________________________________________________________

(Please print name and address of transferee)

 

____________________________________________________________

 

Rights represented by this Right Certificate,
together with all right, title and interest therein, and does hereby irrevocably constitute and appoint ___________________ Attorney,
to transfer said Rights on the books of the within-named Company, with full power of substitution.

 

Dated: ______________, ____

__________________________________

Signature

Signature Guaranteed:

 

Signatures must be guaranteed
by a bank, trust company, broker, dealer or other eligible institution participating in a recognized signature guarantee medallion
program.

 

The undersigned hereby
certifies that the Rights evidenced by this Right Certificate are not beneficially owned by, were not acquired by the undersigned
from, and are not being sold, assigned or transferred to, an Acquiring Person (as defined in the Rights Agreement).

 

_________________________________

Signature

 

 

 

    	B-4

    	 

    

 

Form of Reverse Side of Right Certificate
— continued

 

FORM OF ELECTION TO PURCHASE

 

(To be executed if holder desires to
exercise

Rights represented by the Rights Certificate)

 

To the Rights Agent:

 

The undersigned hereby
irrevocably elects to exercise __________________ Rights represented by this Right Certificate to purchase the shares of Junior
Preferred Stock (or other securities or property) issuable upon the exercise of such Rights and requests that certificates for
such shares of Junior Preferred Stock (or such other securities) be issued in the name of:

 

______________________________________________________________

(Please print name
and address)

______________________________________________________________

 

If such number of Rights shall not be all
the Rights evidenced by this Right Certificate, a new Right Certificate for the balance remaining of such Rights shall be registered
in the name of and delivered to:

 

Please insert social security

or other identifying number: ______________________________________

 

______________________________________________________________

(Please print name
and address)

 

______________________________________________________________

 

Dated: ________________, ___

 

 

	 	Signature
	 	(Signature must conform to holder
	 	specified on Right Certificate)

 

Signature Guaranteed:

 

Signatures must be guaranteed
by a bank, trust company, broker, dealer or other eligible institution participating in a recognized signature guarantee medallion
program.

 

The undersigned hereby
certifies that the Rights evidenced by this Right Certificate are not beneficially owned by, were not acquired by the undersigned
from, and are not being sold, assigned or transferred to, an Acquiring Person thereof (as defined in the Rights Agreement).

 

    	B-5

    	 

    

 

__________________________________

Signature

 

Form of Reverse Side of Right Certificate
— continued

 

 

 

NOTICE

 

The signature in the
Form of Assignment or Form of Election to Purchase, as the case may be, must conform to the name as written upon the face of this
Right Certificate in every particular, without alteration or enlargement or any change whatsoever.

 

In the event the certification
set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not completed, such Assignment
or Election to Purchase will not be honored.

 

 

 

 

    	B-6

    	 

    

 

Exhibit
C

 

UNDER CERTAIN CIRCUMSTANCES,
AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING PERSON (AS DEFINED
IN THE RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.

 

SUMMARY OF RIGHTS TO PURCHASE

Shares of Junior Participating Preferred
Stock

 

On September 17, 2013,
the Board of Directors of ChinaEdu Corporation, a Cayman Islands exempted company (the “Company”), declared
a dividend of one preferred share purchase right (a “Right”) for each outstanding Ordinary Share, par value
$0.01 per share, of the Company (the “Ordinary Shares”). The dividend is payable to the shareholders of record
as of the close of business on September 17, 2013 (the “Record Date”). Each Right entitles the registered holder
to purchase from the Company one one-hundredth of a share of Junior Participating Preferred Stock, par value $0.01 per share (the
“Junior Preferred Stock”), of the Company at a price of $20.00 per one one-hundredth of a share of Junior Preferred
Stock (as the same may be adjusted, the “Purchase Price”). The description and terms of the Rights are set forth
in a Rights Agreement, dated as of September 17, 2013 (as the same may be amended from time to time, the “Rights Agreement”),
between the Company and The Bank of New York Mellon, as Rights Agent (the “Rights Agent”).

 

Until
the close of business on the earlier of (i) the tenth business day after the first date of a public announcement that a person
(other than an Exempted Entity (as defined below)) individually or together with such persons affiliates or associates and any
other person who is Acting in Concert (collectively, an “Acquiring Person”) has acquired beneficial ownership
of 20% or more of the Ordinary Shares then outstanding (or in the event a person or group that currently holds 20% or more of the
Ordinary Shares acquires additional shares that would increase such person or group’s beneficial ownership by 0.5% or more
of the Ordinary Shares outstanding at the time) or (ii) the tenth business day (or such later date as may be determined by action
of the special committee of the Board of Directors consisting of Samuel Yen, Min Fan and Tianwen Liu (the “Special
Committee”), so long as the Special Committee is in existence and, thereafter, the Board prior
to such time as any person becomes an Acquiring Person) after the date of commencement of, or the first public announcement of
an intention to commence, a tender offer or exchange offer the consummation of which would result in any person becoming an Acquiring
person (the earlier of such dates being herein referred to as the “Distribution Date”), the Rights will be evidenced
by the balances indicated in the book entry account system of the transfer agent for Ordinary Shares registered in the names of
the holders thereof or in the case of certificated shares, by certificates for Ordinary Shares outstanding as of the Record Date.

 

    	C-1

    	 

    

 

“Exempted Entity”
shall mean (1) the Company, (2) any subsidiary of the Company (in the case of subclauses (1) and (2) including, without limitation,
in its fiduciary capacity), (3) any employee benefit plan of the Company or of any subsidiary of the Company, (4) any entity or
trustee holding Ordinary Shares for or pursuant to the terms of any such plan or for the purpose of funding any such plan or funding
other employee benefits for employees of the Company or of any subsidiary of the Company, or (5) any person who currently beneficially
owns 20% or more of the Ordinary Shares as evidenced by a Schedule 13D filing made prior to the date of the Rights Agreement and
only to the extent of such person’s beneficial ownership as disclosed in such Schedule 13D filing, including, without limitation,
any members of the Management Group; provided, however, solely with respect to this subclause (5), such Person, including, without
limitation, any members of the Management Group, would cease to be an Exempted Entity upon the acquisition of additional Ordinary
Shares that would increase such person’s beneficial ownership by 0.5% or more of the Ordinary Shares outstanding at the time
of acquisition of any such additional shares pursuant to this subclause (5).

 

The Rights Agreement
provides that, until the Distribution Date (or earlier redemption or expiration of the Rights), the Rights will be transferable
only in connection with the transfer of Ordinary Shares. Until the Distribution Date (or earlier redemption or expiration of the
Rights), the transfer of Ordinary Shares outstanding as of the Record Date, even without a notation incorporating the Rights Agreement
by reference or a copy of this Summary of Rights, will also constitute the transfer of the Rights associated with the Ordinary
Shares so transferred. As soon as practicable following the Distribution Date, separate certificates evidencing the Rights (“Right
Certificates”) will be mailed to holders of record of the Ordinary Shares and ADS Holders as of the close of business
on the Distribution Date and such separate Right Certificates alone will evidence the Rights.

 

The Rights are not exercisable
until the Distribution Date. The Rights will expire following the one year anniversary of the date of the Rights Agreement.

 

The Purchase Price payable,
and the number of shares of Junior Preferred Stock or other securities or property purchasable, upon exercise of each Right and
the number of Rights outstanding are subject to adjustment from time to time to prevent dilution (i) in the event of a stock dividend
on, or a subdivision, combination or reclassification of, the Junior Preferred Stock, (ii) upon the grant to holders of the Junior
Preferred Stock of certain rights or warrants to subscribe for or purchase Junior Preferred Stock at a price, or securities convertible
into Junior Preferred Stock with a conversion price, less than the then-current market price of the Junior Preferred Stock or (iii)
upon the distribution to holders of the Junior Preferred Stock of evidences of indebtedness or assets (excluding regular quarterly
cash dividends or dividends payable in Junior Preferred Stock) or of subscription rights or warrants (other than those referred
to above).

 

Shares of Junior Preferred
Stock purchasable upon exercise of the Rights will not be redeemable. Each share of Junior Preferred Stock will be entitled, when,
as and if declared, to a minimum preferential quarterly dividend payment of (A) 100 times the amount of dividends payable in respect
of one share of Ordinary Shares during such period, and (B) on the last day of January, April, July, and October in each year,
in an amount per whole share equal to the excess (if any) of 0.25% of $2,000.00 over the aggregate dividends paid pursuant
to the foregoing clause (A). In the event of liquidation, dissolution or winding up of the Company, the holders of the Junior Preferred
Stock will be entitled to a minimum preferential liquidation payment of $2,000.00 per share (plus any accrued but unpaid dividends)
but will be entitled to an aggregate of 100 times the payment made per share to holders of Ordinary Shares. Each share of Junior
Preferred Stock will have 100 votes, voting together with the Ordinary Shares. Finally, in the event of any merger, consolidation
or other transaction in which Ordinary Shares are converted or exchanged, each share of Junior Preferred Stock will be entitled
to receive 100 times the amount received per share of Ordinary Shares. These rights are protected by customary anti-dilution provisions.

 

    	 

    	 

    

 

Because of the nature
of the Junior Preferred Stock’s dividend, liquidation and voting rights, the value of the one one-hundredth interest in a
share of Junior Preferred Stock purchasable upon exercise of each Right should approximate the value of one share of Ordinary Shares.

 

In the event that any
person becomes an Acquiring Person, each holder of a Right, other than Rights beneficially owned by the Acquiring Person (which
will thereupon become void), will thereafter have the right to receive upon exercise of a Right and payment of the Purchase Price,
that number of Ordinary Shares (or at the option of the Company, such number of one one-hundredths of a share of Junior Preferred
Stock) having a market value of two times the Purchase Price.

 

In the event that, after
a person has become an Acquiring Person, the Company is acquired in a merger or other business combination transaction or 50% or
more of its consolidated assets or earning power are sold, proper provision will be made so that each holder of a Right (other
than Rights beneficially owned by an Acquiring Person which will have become void) will thereafter have the right to receive, upon
the exercise thereof at the then-current exercise price of the Right, that number of shares of common stock of the person with
whom the Company has engaged in the foregoing transaction (or its parent), which number of shares at the time of such transaction
will have a market value of two times the Purchase Price.

 

At any time after any
person becomes an Acquiring Person and prior to the acquisition by such person of 50% or more of the outstanding Ordinary Shares
or the occurrence of an event described in the prior paragraph, the Special Committee, so long as the Special Committee is in existence
and, thereafter, the Board may exchange the Rights (other than Rights owned by an Acquiring Person which will have become void),
in whole or in part, at an exchange ratio of one share of Ordinary Shares, or a one one-hundredth of a share of Junior Preferred
Stock (or of a share of a similar class or series of the Company’s preferred stock having similar rights, preferences and
privileges) of equivalent value, per Right (subject to adjustment).

 

With certain exceptions,
no adjustment in the Purchase Price will be required until cumulative adjustments require an adjustment of at least 1% in such
Purchase Price. No fractional shares of Junior Preferred Stock will be issued (other than fractions which are integral multiples
of one one-hundredth of a share of Junior Preferred Stock, which may, at the election of the Company, be evidenced by depositary
receipts) and in lieu thereof, an adjustment in cash will be made based on the market price of the Junior Preferred Stock on the
last trading day prior to the date of exercise or exchange.

 

At any time prior to
the time an Acquiring Person becomes such, the Special Committee, so long as the Special Committee is in existence and, thereafter,
the Board may redeem the Rights in whole, but not in part, at a price of $0.001 per Right (the “Redemption Price”).
The redemption of the Rights may be made effective at such time, on such basis and with such conditions as the Special Committee,
so long as the Special Committee is in existence and, thereafter, the Board in its sole discretion may establish. Immediately upon
any redemption of the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will
be to receive the Redemption Price.

 

    	 

    	 

    

 

For so long as the Rights
are then redeemable, the Company may amend the Rights Agreement in any manner. After the Rights are no longer redeemable, the Company
may amend the Rights Agreement in any manner that does not adversely affect the interests of holders of the Rights (other than
those holders who become Acquiring Persons and whose rights become void).

 

Until a Right is exercised
or exchanged, the holder thereof, as such, will have no rights as a shareholder of the Company, including, without limitation,
the right to vote or to receive dividends.

 

A copy of the Rights
Agreement has been filed with the Securities and Exchange Commission as an Exhibit to a Registration Statement on Form 8-A dated
September [__], 2013. A copy of the Rights Agreement is available free of charge from the Company. This summary description of
the Rights does not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, as the same may
be amended from time to time, which is hereby incorporated herein by reference.

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