Document:

Exhibit 4.24

Exhibit 4.24

English Translation

EQUITY PLEDGE AGREEMENT

This
Equity Pledge Agreement (“this Agreement”) is made
on April 23, 2010 in Shenzhen, the People’s
Republic of China:

BY AND AMONG:

Pledgor: Shenzhen Wentai Investment Co., Ltd.

ID Card Number:
 _____ 

Address:
 _____ 

Pledgee: Shenzhen Wentai Education Industry Development Co., Ltd.

Address:
 _____ 

Unless otherwise specified, Pledgor and Pledgee are collectively referred to as the “Parties”, and
either of them, a “Party”.

WHEREAS:

	1.	 	Zhongda Foundation Education and Investment Management Co., Ltd. (the “Target Company”) is a
limited liability company duly incorporated and validly existing in the People’s Republic of
China (the “PRC”, and for the purpose of this Agreement, excluding Hong Kong Special
Administrative Region, Macao Special Administrative Region and Taiwan of the PRC);
	 
	2.	 	The Pledgor owns 67% equity interest in the Target Company;

	3.	 	The Pledgee is a limited liability company duly incorporated and validly existing in
Shenzhen, the PRC;

	4.	 	The Pledgee entered into various agreements listed in Exhibit 1 hereto (the “Master Liability
Agreements”) with the Pledgor and the relevant signing parties; and

	5.	 	To guarantee the performance by any obligor (other than the Pledgee) under each of the Master
Liability Agreements of his/her/its obligations thereunder to the Pledgee, the Pledgor agrees
to pledge all of its equity interest in the Target Company as security for the performance by
the obligors to the Master Liability Agreements of all of their obligations thereunder, and
the Pledgee agree to accept such security, on the terms and conditions hereof.

 

 

 

NOW, THEREFORE, the Pledgor and the Pledgee unanimously agree to enter into this Agreement
according to the following terms:

	1.	 	Definitions

Unless otherwise required herein, the following terms shall have the meaning as follows:

	 	1.1	 	“Pledged Equity” means the equity interest of 67% legally held by the Pledger
in the Target Company, and all rights and incomes pertaining to such equity interest
(including but not limited to any dividends generated under the Pledged Equity).

	 	1.2	 	“Secured Liabilities” means all obligations or liabilities of the obligors to
each of the Master Liability Agreements incurred under the Master Liability Agreements
(including any renewed agreement, amendment agreement and supplemental agreement to the
Master Liability Agreements), including but not limited to any service fee, consulting
fee, technical fee, content provision cost, development and maintenance cost, interest,
default penalty, compensation and expenses for the realization of liabilities that is
payable to Pledgee by the obligors to the Master Liability Agreements in connection
with the Master Liability Agreements, as well as any loss suffered by the Pledgee due
to the breach by the obligors to the Master Liability Agreements, and any other
expenses payable.

	2.	 	Pledge of Equity Interest

	 	2.1	 	To guarantee the performance by the obligors to each of the Master Liability
Agreements of all obligations and liabilities thereunder to the Pledgee, the Pledgor
agrees to pledge the Pledged Equity hereunder to the Pledgee, and the Pledgee agree to
accept the above Pledged Equity as security, on the terms and conditions hereof.

	3.	 	Scope of Security

	 	3.1	 	The scope of security hereunder shall be subject to the Secured Liabilities
defined in Article 1.2.

	4.	 	Duration and Registration of Pledge

	 	4.1	 	The duration of the pledge shall be determined in accordance with the Master
Liability Agreements. In the event of any inconsistency between the term of each of
the Master Liability Agreements, the duration of the pledge shall be determined on the
basis of the term of the last Master Credit Agreement that is due.

	 	4.2	 	The Pledgor shall, within 15 business days after this Agreement becomes
effective, procure the Target Company to record the pledge of the Pledged Equity
hereunder on its register of members pursuant to this Agreement, and shall complete all
formalities in relation to the registration or filing of the pledge with an industrial
and commercial administrative department.

	 	4.3	 	Should there be any change in any record of the pledge, which requires for the
change of registration according to laws, the Pledgor and the Pledgee shall, within 15
business days after the change of record, complete the formalities
for the change of the register of members and the relevant formalities in relation
to the change of filing with the industrial and commercial administrative
department.

 

 

 

	5.	 	Safe-keeping of Pledge Evidence

	 	5.1	 	The Pledgor shall, within 15 business days after this Agreement becomes
effective, hand over any certificate showing its capital contribution to the Target
Company, and a register of members in which the capital contributions are recorded to
the Pledgee for safe keeping.

	6.	 	Representations and Warranties by the Pledgor

	 	6.1	 	The Pledgor is a limited liability company lawfully existing under the law of
People’s Republic of China and has full capacity to execute and perform this Agreement.

	 	6.2	 	The Pledgor signs and performs this Agreement out of its true intention, and
has obtained all the necessary internal and external authorizations, including but not
limited to the consent/approval of the board of directors and the shareholders. All
obligations of the Pledgor hereunder are legal, valid and enforceable.

	 	6.3	 	The execution and performance by the Pledgor of this Agreement will not result
in any violation or conflict of the articles of association of the Target Company, its
internal rules, contracts with third parties and the relevant PRC laws and regulations,
or approvals, authorizations, consents and permits of the relevant PRC departments with
competent jurisdiction, or rulings and orders of courts.

	 	6.4	 	The Pledgor is the sole legitimate owner of the Pledged Equity, and has paid
all capital contributions subscribed by them according to laws and obtained a capital
verification report issued by an accounting firm with appropriate qualification in
respect thereof. The Pledgor is entitled to create the first priority pledge over the
Pledged Equity for the Pledgee. There is no dispute over the ownership of the Pledge
Equity, nor is there any mortgage right or other security interest created in respect
thereof for any third parties. There is no trust or restrictive condition for use with
respect to the Pledged Equity. The Pledged Equity has not been lawfully seized,
frozen, detained or put under the custody of any third party, and is not entitled to
any waiver from litigation, implementation, mandatory measures or other legal
proceedings.

	 	6.5	 	The Pledgor has not had and continued to have any breach or potential breach
hereunder, and there is no such risk within its knowledge. The Pledgor has not had and
continued to have any breach or potential breach under other contracts to which it is a
party, which could have a material adverse effect on the Pledgor, and there is no such
risk within its knowledge.

	 	6.6	 	The Pledgor has observed and performed all the relevant obligations required by
any laws applicable to them, and have complied with all authorization and permits applicable to them; there has been no circumstance of the Pledgor which is
in violation of the relevant laws, regulations or rules and regulations, and which
could have a material adverse effect on the legality, validity, performance and
enforceability of this Agreement.

 

 

 

	 	6.7	 	To the best knowledge of the Pledgor, there is no legal proceeding or
administrative proceeding commenced or taken by any court, arbitration tribunal or any
government authority against the Pledgor or its Pledged Equity, nor is there any legal
proceeding or administrative proceeding commenced or instituted by any court,
arbitration tribunal or any government or other authority against the Pledgor or its
Pledged Equity, and there is no such risk within its knowledge.

	 	6.8	 	All information disclosed by the Pledgor to the Pledgee (including documents,
information, statements and evidence, etc.) are true, complete, accurate, valid,
reasonable, not misleading and do not contain false information, and there is no
significant event that is required to but omitted to be disclosed.

	7.	 	Undertakings of the Pledgor

	 	7.1	 	During the subsistence of this Agreement, the Pledgor undertakes to the Pledgee
as follows:

	 	7.1.1	 	without the prior written consent of the Pledgee, the Pledgor shall not create
any other security (whether it has the priority over the pledge hereunder) or other
restrictive conditions over or on all or part of the Pledged Equity;

	 	7.1.2	 	without the prior written consent of the Pledgee, the Pledgor shall not sell,
lease, lend, transfer, assign, offer as gift, re-mortgage, act as custodian of or
otherwise dispose of all or part of the Pledged Equity, or make capital contribution in
the form of the Pledged Equity;

	 	7.1.3	 	The Pledgor shall not use or permit others to use the Pledged Equity to do any
act or thing that is in violation of laws or this Agreement; and

	 	7.1.4	 	Upon receipt of any notice, order, ruling, judgment or other document relating
the Pledged Equity from any government authority, judicial authority or arbitration
institution of the PRC, the Pledgor shall notify the Pledgee of the same and shall,
within the period as required by laws, take all necessary measures and steps to reduce
any risk that such notice, order or other document may have on the Pledged Equity.
When the Pledgee thinks necessary, the Pledgor shall institute legal actions,
arbitrations or administrative actions against the above notice, order or other
document, and bear all costs in relation thereto.

	 	7.2	 	The Pledgor further agrees that any rights obtained by the Pledgee pursuant to
the provisions hereof shall not be interrupted nor impeded by any legal proceedings
instituted by the Pledgor, or any successors of the Pledgor, or any person authorized
by the Pledgor, or any other persons.

 

 

 

	 	7.3	 	The Pledgor warrants to the Pledgee that, in order to protect or improve the
security for the repayment of the Secured Liabilities herein, it will honestly execute
and procure other parties who have an interest in the pledge right to execute all title
certificates and contracts required by the Pledgee, and/or perform and procure other
interested parties to perform all acts required by the Pledgee, and facilitate the
exercise of any right and authorization conferred to the Pledgee by this Agreement.
The Pledgor will execute all documents in relation to the change of share certificates
with the Pledgee or any natural person or legal person designated by it, and will
provide the Pledgee with all notices, orders and decisions in relation to the pledge
right which it thinks necessary within a reasonable time. The Pledgor warrants to the
Pledgee that it will, for the interest of the Pledgee, observe and perform all
warranties, undertakings, agreements, representations and conditions. If the Pledgor
does not perform or fully perform its warranties, undertakings, agreements,
representations and conditions, it will indemnify the Pledgee all losses suffered by it
arising therefrom.

	8.	 	Event of Default

	 	8.1	 	The following events shall be deemed as Events of Default:

	 	8.1.1	 	the Pledgor and other obligors to the Master Credit Agreement
fail to perform any of their obligations under the Master Liability Agreements
in a timely and sufficient manner, or fail to fully perform any Secured
Liabilities as scheduled;

	 	8.1.2	 	any declaration or warranty made by the Pledgor hereunder
contains false, fraudulent or misleading representations or errors;

	 	8.1.3	 	the Pledgor violates any undertakings set forth in Article 7
hereof;

	 	8.1.4	 	the Pledgor refuses to complete or willfully delay in
completing any formalities in relation to the registration and filing of the
pledge hereunder, and fail to make rectification in a timely manner within 10
days after the Pledgee makes written request;
	 
	 	8.1.5	 	the Pledgor violates any other provisions of this Agreement;

	 	8.1.6	 	any external loan, guarantee, compensation, undertaking or
other debt liability of the Pledgor (1) is required to be repaid or performed
prior to the scheduled date due to any breach of this Agreement; or (2) has
been due but cannot be repaid or performed as scheduled, which in the opinion
of the Pledgee, would have adversely affected the ability of the Pledgor in
performing their obligations hereunder in substantive aspects;

	 	8.1.7	 	this Agreement becomes invalid, revocable and unenforceable
due to the promulgation of the relevant laws and regulations, and the fault of
the Pledgor (including omission to act), or the Pledgor cannot continue to
perform its obligations hereunder in a timely and sufficient manner;

 

 

 

	 	8.1.8	 	due to the fault of the Pledgor (including omission to act),
all consents, permits, approvals, registration or authorization from or with
the government departments that are necessary for this Agreement to be able to
be implemented or become lawful or effective have been withdrawn, suspended,
lapsed or adversely amended in substantive aspects;

	 	8.1.9	 	there has been any materially adverse change in the properties
of the Pledgor, which, in the reasonable opinion of the Pledgee, would have
adversely affected the ability of the Pledgor in performing its obligations
hereunder in substantive aspects;

	 	8.1.10	 	the successors or managing agent of the Pledgor can only perform part of, or
refuse to perform, the payment liability under the Master Liability Agreements;

	 	8.1.11	 	the Pledgor violates any other provisions of this Agreement through any act
or omission to act;

	 	8.1.12	 	other circumstances where the Pledgee cannot exercise the right to dispose of
pledge right according to the relevant laws and due to the fault of the Pledgor
(including omission to act).

	 	8.2	 	If the Pledgor is aware or discover that any event described in this Article
8.1 or any event which may possibly result in the aforesaid events has happened, it
shall immediately notify the Pledgee in writing.

	 	8.3	 	Unless the Pledgor takes any measure that is to the satisfactory of the Pledgee
to rectify the events of default listed in this Article 8.1, the Pledgee may serve a
written notice for the exercise of pledge right to the Pledgor at any time when the
Pledgor is in default or thereafter, and require the Pledgor to dispose of the Pledged
Equity pursuant to the requirements of this Agreement.

	 	8.4	 	The requirements of default in this Article shall not affect any exercise by
the parties of their right to other remedies available under the laws and regulations
of the PRC currently in force.

	9.	 	Exercise of the Pledge Right

	 	9.1	 	The Pledgee shall be entitled to exercise the right to dispose of the Pledged
Equity according to laws.

	 	9.2	 	The Pledgee shall have the right to dispose of all or part of the Pledged
Equity hereunder according to statutory procedures (including without limitation, the
conversion of any money from the Pledged Equity pursuant to this Agreement, or sale of
the Pledged Equity through auction or realization of the Pledged Equity), and shall
have the right of priority to claim for any proceeds from the disposal until all
Secured Liabilities are repaid.

	 	9.3	 	When the Pledgee disposes of the Pledge Equity in accordance with this
Agreement, the Pledgor shall not impose any obstacles, and shall offer necessary
assistance in this regard so that the Pledgee can realize its pledge right.

 

 

 

	10.	 	Assignment

	 	10.1	 	Unless with the prior consent of the Pledgee, the Pledgor shall not transfer
all or part of its rights and/or obligations hereunder to any third parties.

	 	10.2.	 	This Agreement shall be binding upon the Pledgor and its successors, and shall
be valid and binding upon the Pledgee and each of its successors or assigns.

	 	10.3	 	The Pledgee may, at any time, transfer all or part of its rights and/or
obligations under the Master Liability Agreements to any natural person or legal person
designated by it, in which case, the assign shall be entitled to and undertake all
rights and obligations of the Pledgee hereunder, and the Pledgor shall not raise any
objection in respect thereof.

	 	10.4	 	A new pledge agreement in the form of this Agreement shall be signed between
the new parties to the pledge after the change of the Pledgee as a result of the
transfer.

	11.	 	Termination

This Agreement shall be terminated after all Secured Liabilities have been fully repaid and
the Pledgor has no longer undertaken any obligation under the Master Liability Agreements.
In this case, the Pledgee shall, within the earliest reasonable and practicable time, cancel
the registration of the pledge hereunder.

	12.	 	Handling Fees and Other Costs

	 	12.1	 	All costs in connection with this Agreement, including without limitation,
legal fee, cost of production, stamp duty and any other taxes and charges, shall be
shared by the Pledgor and the Pledgee, respectively, in accordance with the laws and
regulations of the PRC. Any cost that is not stipulated by laws and regulations shall
be borne by the Pledgor.

	 	12.2	 	If the Pledgor fails to pay any taxes or charges payable in accordance with
this Agreement or the Pledgee has the right to take all possible remedial measures
alone due to any other reasons, all costs arising therefrom (including without
limitation, all taxes, handling fees, management fees, litigation cost, attorney’s fees
and various insurance premiums in connection with the handling of the pledge right)
shall be borne by the Pledgor.

 

 

 

	13.	 	Force Majeure

	 	13.1	 	An “Event of Force Majeure” means any event that is beyond the reasonable
control of a party and that is unavoidable even though the party so affected
gives reasonable attention to it, including but not limited to act of government,
fire, explosion, geographical change, typhoon, flood, earthquake, tidal, lightning
or war. However, the shortage of credit, capital or financing shall not be deemed
as force majeure. Any party affected by the Event of Force Majeure who seeks to
excuse the obligations under this Agreement or any provisions hereof shall promptly
notify the other party advising of the excuse and the steps it will take to complete
such performance.

	 	13.2	 	When the performance of this Agreement is delayed or prevented due to the
“Event of Force Majeure” defined above, the party so affected shall not be required to
assume any liabilities hereunder, provided that it makes all reasonable and practicable
effort to perform this Agreement or to minimize the impact of force majeure and to the
extent that it is within the scope of the delay or prevention. Once the causes of such
excuse are cured and remedied, the parties agree to resume the performance of this
Agreement with their greatest efforts.

	14.	 	Dispute Resolution

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

	 	14.2	 	The parties shall make their best effort to resolve any dispute, controversy or
claim arising out of or in connection with this Agreement (a “Dispute”), or the breach,
termination or invalidity hereof through friendly consultation. If, however, the
parties fail to resolve the Dispute within fifteen (15) business days after the notice
of Dispute is served, they shall submit the Dispute to China International Economic and
Trade Arbitration Commission for arbitration. The seat of arbitration shall be
Shenzhen. The arbitration shall be conducted in Chinese. The arbitral award shall be
final and binding upon the parties.

	15.	 	Notice

All notices or other communications required to be given by a party pursuant to this
Agreement shall be made in Chinese, and shall be deemed to have been duly served if
delivered by hand, or sent by registered mail or prepaid mail, or by a recognized express
service or by facsimile transmission to the party concerned or both parties at the following
correspondence addresses.

Pledgee: Shenzhen Wentai Education Industry Development Co., Ltd.

Contact Person: Du Qicai

Correspondence Address:
 _____ 

Telephone Number:
 _____ 

Fax Number:
 _____ 

Pledgor: Shenzhen Wentai Investment Co., Ltd.

Address:
 _____ 

Telephone Number:
 _____ 

 

 

 

	16.	 	Modification, Discharge and Interpretation of this Agreement

	 	16.1	 	This Agreement may be amended, supplemented or discharged after a written
consent is given by the parties and all necessary authorizations and approvals are
obtained by the parties, respectively; the exhibits or appendices of this Agreement and
any amendments and supplements thereto shall be an integral part of this Agreement.

	 	16.2	 	The validity of any provision of this Agreement shall be independent from each
other. The invalidity of any particular provision shall not affect the validity of the
other provisions hereof.

	17.	 	Effectiveness and Miscellaneous

	 	17.1	 	This Agreement is signed and shall become effective as of the day first written
above.

	 	17.2	 	This Agreement is executed in Chinese in 4 originals. Each of the signing
parties shall keep one original, and the remaining originals shall be submitted for
registration and filing.

(The remainder of this page is intentionally left blank.)

 

 

 

IN WITNESS WHEREOF, each of the parties hereto have caused this Agreement to be duly executed by
their respective duly authorized signatories on the day first above written.

Pledgor (Chop): Shenzhen Wentai Investment Co., Ltd.

[Chop of Shenzhen Wentai Investment Co., Ltd. is affixed]

	 	 	 	 	 
	Legal Representative (Authorized Representative):

	 	/s/ Dong Xu
	 	 
	 

	 	 	 	 

Pledgee (Chop): Shenzhen Wentai Education Industry Development Co., Ltd.

[Chop of Shenzhen Wentai Education Industry Development Co., Ltd. is affixed]

	 	 	 	 	 
	Legal Representative (Authorized Representative):

	 	/s/ Qicai Du
	 	 
	 

	 	 	 	 

 

 

 

Exhibit 1: Master Liability Agreements

	 	 	 	 	 	 	 	 	 
	No.	 	Name of Agreements	 	Signing Parties	 	Date of Execution
	1.

	 	Service Agreement
	 	Shenzhen Wentai Education Industry Development Co., Ltd., Shenzhen Wentai Investment Co., Ltd.
	 	 	     , 2010	 
	2.

	 	Service Agreement
	 	Shenzhen Wentai Education Industry Development Co., Ltd., Foreign Language School attached to Zhongda in Dongguan
	 	 	     , 2010	 
	3.

	 	Service Agreement
	 	Shenzhen Wentai Education Industry Development Co., Ltd., Foreign Language School attached to Sun Yat-Sen University in Nanhai District, Foshan
	 	 	     , 2010	 
	4.

	 	Service Agreement
	 	Shenzhen Wentai Education Industry Development Co., Ltd., Kindergarten of Four Seasons Flower City Foreign Language School attached to Sun Yat-Sen University in Nanhai District, Foshan
	 	 	     , 2010	 
	5.

	 	Service Agreement
	 	Shenzhen Wentai Education Industry Development Co., Ltd., Foreign Language Kindergarten (No. 2 Kindergarten) attached to Zhongda in Nanhai District, Foshan
	 	 	     , 2010	 
	6.

	 	Service Agreement
	 	Shenzhen Wentai Education Industry Development Co., Ltd., Lanshan Foreign Language Experimental Primary School attached to Zhongda in Baiyun District, Guangzhou
	 	 	     , 2010	 
	7.

	 	Service Agreement
	 	Shenzhen Wentai Education Industry Development Co., Ltd., Lanshan Foreign Language Experimental Kindergarten attached to Zhongda in Baiyun District, Guangzhou
	 	 	     , 2010	 
	8.

	 	Service Agreement
	 	Shenzhen Wentai Education Industry Development Co., Ltd., (Vanke City) Foreign Language Kindergarten attached to Zhongda in Luogang District, Guangzhou
	 	 	     , 2010Exhibit 4.25

Exhibit 4.25

English Translation

OPTION AGREEMENT

This
Call Option Agreement (“this Agreement”) is made on
April 23, 2010 in Shenzhen:

BY AND AMONG:

Party A: Shenzhen Wentai Education Industry Development Co., Ltd.

Address: Unit 40, 4th Floor, Block A, Fortune Plaza, Shennan Middle Road, Shenzhen

Party B: Xu Dong

ID Card Number:
 _____ 

Address:
 _____ 

Party C: Du Qicai

ID Card Number:
 _____ 

Address:
 _____ 

WHEREAS:

	1.	 	Shenzhen Wentai Investment Co., Ltd. (the “Target Company”) is a limited liability company
established under the laws of the People’s Republic of China (the “PRC”, and for the purpose
of this Agreement, excluding Hong Kong Special Administrative Region, Macao Special
Administrative Region and Taiwan of the PRC), with its registered
address at:      ;

	2.	 	Party B and Party C own 70% and 30% of equity interest of the Target Company, respectively
(collectively referred to as the “Equity Interest”);

	3.	 	Party B and Party C intend to grant to Party A an option so that Party A or any third party
designated by it shall be entitled to purchase from Party B and/or Party C all of his/their
equity interest in the Target Company to the extent permitted by the laws of the PRC and at
the time when it thinks appropriate (the “Call Option”).

NOW, THEREFORE, IT IS AGREED as follows after friendly consultation:

	1.	 	Grant of the Call Option

Party B and Party C hereby irrevocably grant to Party A the following rights:

	 	1.1	 	Party A and any third party designated by it shall, within 20 years after this
Agreement becomes effective (the “Exercise Period”), and to the extent permitted by the
laws and regulations of the PRC then in effect, have an option to acquire from Party B
and/or Party C all or part of his/their Equity Interest in the Target Company at an
exercise price or a certain percentage of exercise price. Party B and Party C agree to
sign an equity transfer agreement
in the form as set forth in Exhibit 1 hereto (the “Equity Transfer Agreement”) with
Party A and any third party designated by it at the time when the acquisition is
made.

 

 

 

	 	1.2	 	Party A shall, at any time during the Exercise Period, and to the extent
permitted by the laws and regulations of the PRC then in effect, have the right to
require Party B and Party C to transfer all or part of their Equity Interest to Party A
or any third party designated by it at the exercise price.

	 	1.3	 	During the Exercise Period, Party A or any third party designated by it shall
have the right to exercise its Call Option hereunder in several occasions without
subject to any restriction on frequency, until all the Equity Interest is transferred
to Party A or any third party designated by it.

	 	1.4	 	To the extent permitted by laws and after Party A issues the notice for
exercise of the Call Option (see Article 4.1), Party B and Party C shall
unconditionally offer cooperation for the implementation of the above procedures to
transfer all or part of the Equity Interest to Party A or any third party designated by
it, and shall coordinate with Party A to complete all necessary formalities in relation
to the approval, permission, registration and filing of the transfer.

	 	1.5	 	If, during the Exercise Period, Party B and/or Party C continue to hold all or
part of his/their Equity Interest, which would result in any violation of laws and
administrative regulations, Party B and/or Party C shall immediately issue written
notice to Party A, stating the specific reasons thereof. In this circumstance, Party A
shall have an option to exercise one of the following rights: (1) to exercise the Call
Option immediately pursuant to Article 4.1 hereof; or (2) to designate an
appropriate third party to acquire from Party B and/or Party C all or part of his/their
Equity Interest at the exercise price.

	2.	 	Price of the Call Option

The price of the Call Option shall be determined pursuant to Article 5 hereof.

	3.	 	Confirmation from Other Shareholders

Party B and/or Party C shall, during the exercise of the Call Option by Party A, ensure that
other shareholders of the Target Company will approve the equity transfer specified herein
and give up their right of first refusal in respect of the Equity Transfer.

	4.	 	Exercise of the Call Option

	 	4.1	 	Party A may, during the Exercise Period, and to the extent permitted by the
laws and regulations of the PRC then in effect, require to exercise its Call Option
hereunder by giving notice for exercise of the Call Option (the “Exercise Notice”) to
Party B and/or Party C so as to acquire from Party B and/or Party C all or part of
his/their Equity Interest or require them to transfer the Equity Interest to any third
party designated by Party A.

 

 

 

	 	4.2	 	Once Party B and/or Party C receive(s) the Exercise Notice issued by Party A
pursuant to Article 4.1 above, Party B and/or Party C shall immediately:

	 	4.2.1	 	sign the Equity Transfer Agreement in the form as set forth in
Exhibit 1 hereof with Party A and/or any third party designated by it according
to the requirements of the Exercise Notice;

	 	4.2.2	 	amend the articles of association of the Target Company with
Party A and/or any third party designated by it and any other shareholders of
the Target Company at that time pursuant to the requirements of the Equity
Transfer Agreement;

	 	4.2.3	 	procure the equity transfer resulting from the exercise of the
Call Option and the shareholders resolution concerning the amendments to the
articles of association of the Target Company to be approved at a shareholders’
meeting of the Target Company;

	 	4.2.4	 	procure the Target Company to submit the Equity Transfer
Agreement and the amendments to the articles of association of the Target
Company to the relevant approval authority, and assist in obtaining all
necessary approvals in respect thereof with Party A and/or any third part
designated by it and any other shareholders of the Target Company at that time;

	 	4.2.5	 	procure and assist the Target Company to complete the relevant
formalities in relation to the change of registration with its registration
authority with Party A and/or any third part designated by it and any other
shareholders of the Target Company at that time; and

	 	4.2.6	 	complete all other matters necessary for the completion of the
acquisition of equity interest.

	5.	 	Exercise Price

The parties agree that unless otherwise required by applicable laws, Party A shall
purchase all the Equity Interest at a price of RMB30 million (the “Exercise Price”);
if Party A purchases only part of the Equity Interest, the price shall be determined
pursuant to certain percentage of the Exercise Price.

	6.	 	Termination of the Target Company

Party B and Party C further undertake that they will not take any action which might
result in the termination of the Target Company during the Exercise Period due to
the reasons such as bankruptcy, dissolution or closing down ordered by laws.

 

 

 

	7.	 	Representations and Warranties by Party B and Party C

Party B and Party C represent and warrant to Party A that during the period from the
date on which this Agreement becomes effective to the completion of the transfer of
all the Equity Interest to Party A:

	 	7.1	 	Party B and Party C are the legitimate owners of the Equity Interest.

	 	7.2	 	Party B and Party C strictly observe all obligations required
by the articles of association of the Target Company. There is no circumstance
which might affect the legal status of Party B and Party C as shareholders of
the Target Company, nor is there any circumstance which might affect the
exercise by Party A of the Call Option hereunder.

	 	7.3	 	Save for any equity pledge approved by Party A, there has
been no security interest in any form created over and no detrainment on any
of Party B and Party C’s Equity Interest. There is no dispute, litigation,
arbitration or administrative and judicial mandatory measures of any other
form taken against the Equity Interest, nor is there any person who is able to
make claims against the Equity Interest.

	 	7.4	 	Party B and Party C have disclosed to Party A all materials or
information which might have an adverse effect on the ability of Party B and
Party C in performing their obligations hereunder or the intention of Party A
to sign this Agreement in substantive aspects.

In addition, all representations and warranties made by Party B and Party C to Party
A in the loan agreement dated      , 2010 between the parties shall be deemed to be given
in this Agreement.

	8.	 	Further Undertakings of Party B and Party C

Party B and Party C undertake to Party A as follows:

	 	8.1	 	During the term hereof, they must take all necessary measures
to guarantee that the Target Company can obtain all business licenses in a
timely manner, and all business licenses remain effective at all times.

	 	8.2	 	During the term hereof and without the prior written consent of
Party A:

	 	8.2.1	 	Party B and Party C shall not transfer or
otherwise dispose of any of the Equity Transfer, nor create any
security interest or other third party right over any of the Equity
Interest;

	 	8.2.2	 	Party B and Party C shall not grant their
consent to any increase or decrease of the Target Company’s registered
capital or the number of its existing shareholders;

	 	8.2.3	 	Party B and Party C shall not dispose of or
procure the management of the Target Company to dispose of any assets
of
the Target Company (except for those disposals conducted in the
ordinary course of business);

 

 

 

	 	8.2.4	 	Party B and Party C shall not terminate or
procure the management of the Target Company to terminate any material
agreement signed by the Target Company (the definition of which shall
be determined by Party A at the time when such termination occurs), or
enter into any other agreement which is in conflict with any existing
material agreement;

	 	8.2.5	 	Party B and Party C shall not appoint or
remove any executive directors, board members (if any) or supervisors
of the Target Company, or any other management staff of the Target
Company that shall be appointed or removed by all existing
shareholders;

	 	8.2.6	 	Except for any mandatory requirements in laws,
Party B and Party C shall not, without the consent of Party A,
distribute or actually release any distributable profits, bonus,
profits of shares or dividends of the Target Company;

	 	8.2.7	 	Except for any mandatory requirements in laws,
Party B and Party C shall not grant their consent to any amendment to
the articles of association of the Target Company.

	9.	 	Confidentiality

Without the prior consent of the parties, either party shall keep the content of
this Agreement in confidence, and shall not disclose the content of this Agreement
to any other persons, nor comment on the same, unless:

	 	9.1	 	any disclosure is made in accordance with the relevant laws or
the requirements of any securities exchange;

	 	9.2	 	any information disclosed has been publicly available due to
the reasons other than the default of the disclosing party;

	 	9.3	 	any disclosure is made to the lawyers, accountants, financial
advisors, legal advisors or other professional advisors of the parties; or

	 	9.4	 	any disclosure is made to the potential purchasers of equity
interest/assets, other investors, debt or equity holders of the parties, but
the parties receiving the information disclosure shall make the corresponding
confidentiality undertaking; to the extent that the seller is not Party A, such
seller shall also obtain the consent from Party A.

 

 

 

	10.	 	Liabilities for Breach of Contract

	 	10.1	 	The following events shall constitute as events of default of
Party B and/or Party C:

	 	10.1.1	 	Party B and/or Party C violate(s) any provision of this Agreement, or
any representation and warranty made by Party B and/or Party C herein
contains material mistakes, is untrue and incorrect;

	 	10.1.2	 	Without the prior written consent of Party A, Party B and/or Party C
transfer(s), or otherwise transfer(s) or pledge(s) any rights
hereunder.

	 	10.2	 	In the event of any breach of this Agreement by Party B and/or
Party C or any other events, Party A may take the following measures, in
addition to any remedial measures for breach as required by laws:

	 	10.2.1	 	to the extent permitted by the laws of the PRC then in effect,
require Party B and/or Party C to immediately transfer all or part of
the Equity Interest to Party A or any third party designated by it at
the Exercise Price;

	 	10.2.2	 	immediately recover any loan under the loan agreement signed with
Party B and/or Party C;

	 	10.2.3	 	require Party B and/or Party C to indemnify against all direct and
indirect losses, including but not limited to the expenses, such as
yields generated from the Equity Interest, or all legal fees,
travelling costs and investigation expenses paid for the enforcing and
seeking remedies for breach.

	11.	 	Discharge of this Agreement

	 	11.1	 	Party A may, at any time during the Exercise Period, decide at
its own discretion to discharge this Agreement by giving the Exercise Notice to
Party B and/or Party C, and shall bear no liabilities in respect thereof.

	 	11.2	 	None of Party B and Party C shall be entitled to discharge this
Agreement unilaterally at any time during the Exercise Period.

	12.	 	Governing Law and Dispute Resolution

	 	12.1	 	The formation of this Agreement, its effectiveness,
interpretation and performance, as well as the dispute resolution hereunder
shall be governed by the laws of the PRC.

	 	12.2	 	The parties shall make their best effort to resolve any
dispute, controversy or claim arising out of or in connection with this
Agreement (a “Dispute”), or the breach, termination or invalidity hereof
through friendly consultation. If, however, the parties fail to resolve the
Dispute within fifteen (15) business days after the notice of Dispute is
served, they shall submit the Dispute to China International Economic and Trade
Arbitration Commission for arbitration. The seat
of arbitration shall be Shenzhen. The arbitration shall be conducted in
Chinese. The arbitral award shall be final and binding upon the parties.

 

 

 

	13.	 	Miscellaneous

	 	13.1	 	The exhibit hereto is an integral part of this Agreement, which
shall have the same legal effect as this Agreement.

	 	13.2	 	Any matters not covered herein shall be resolved by the parties
by supplemental agreement. Any written supplemental agreement signed by the
parties shall become an integral part of this Agreement.

	 	13.3	 	No party hereto shall make changes to this Agreement without
authorization. Any change to this Agreement shall be unanimously approved by
the parties after mutual consultation and shall be made in written contract or
agreement.

	 	13.4	 	Any failure or delay by Party A to exercise any right or remedy
under this Agreement shall not be construed as a waiver thereof, nor shall it
affect the exercise of such right or remedy by Party A at any time pursuant to
this Agreement and/or the requirements of laws and regulations.

	 	13.5	 	The invalidity of any particular provision of this Agreement
shall not affect the validity of other provisions hereof.

	 	13.6	 	Party A shall have the right to transfer at any time all or
part of its rights hereunder to any third party without first obtaining the
consent of Party B and Party C; however, none of Party B and Party C shall
transfer any of their rights and obligations hereunder without the consent of
Party A. Party B and Party C shall ensure that Party A and any transferee will
comply with the relevant obligations under this arrangement after the transfer
of rights hereunder.

	14.	 	Counterparts and Effectiveness

	 	14.1	 	This Agreement is executed in 6 originals and each signing
party shall keep two originals. Each of them shall have the same legal effect.

	 	14.2	 	This Agreement shall become effective on the date separately
approved by the parties hereto after it is signed by the parties themselves or
their respective authorized representatives. Notwithstanding any provisions of
this Agreement to the contrary, neither party hereto shall require to discharge
this Agreement, declare this Agreement to be invalid or terminate it prior to
its expiry date under the pretext that this Agreement or any of its provisions
are unfair, or violate the principle of fairness, industry practices or market
price, or due to similar reasons.

(The remainder of this page is intentionally left blank.)

 

 

 

This Agreement has been signed by the parties hereto or their respective duly authorized
representatives on the day first above written in Shenzhen.

Party A (Chop): Shenzhen Wentai Education Industry Development Co., Ltd.

[Chop of Shenzhen Wentai Education Industry Development Co., Ltd. is affixed]

	 	 	 	 
	By:  	 	 
	 	Name:  	 	 
	 	Position: 	 

Party B:

Xu Dong

	 	 	 
	/s/ Xu Dong
	 	 
	 

	 	 

Party C:

Du Qicai

	 	 	 
	/s/ Du Qicai
	 	 
	 

	 	 

 

 

 

Exhibit 1: EQUITY TRANSFER AGREEMENT

This
Equity Transfer Agreement is made on
      (mm)
      (dd)
      (yy):

BETWEEN:

(1) (the “Transferor”)

(2) (the “Transferee”)

WHEREAS:

	1.	 	The Transferor holds  _____% equity interest in
 _____ 
(the “Target Company”);

	 
	2.	 	The Transferor agrees to transfer his/her/its
 _____% equity interest in the Target Company to the
Transferee, and the Transferee agrees to accept
the transfer of the above equity interest.

NOW, THEREFORE, the parties have reached the following agreement in respect of the equity transfer
mentioned above after friendly consultation:

Article 1 Equity Transfer and its Completion

	 	1.1	 	The parties hereto agree
that the Transferor will transfer
his/her/its      % equity
interest in the Target Company to the Transferee on the terms and conditions specified
herein. Party B agrees to accept the transfer of the equity interest from Party A.

	 	1.2	 	The completion date of the equity transfer mentioned above shall be the date on
which the Target Company completes the change of registration with the industrial and
commercial administrative department. From the completion date of the equity transfer,
the Transferor’s      % equity interest in the Target Company shall be transferred to and
held by the Transferee. The Transferee shall be entitled to shareholders’ rights of
the Target Company and undertake shareholders’ obligations in respect of all equity
interest held by him/her/it.

Article 2 Transfer Price

	 	2.1	 	The parties hereto agree that the price for the equity transfer shall be:
Renminbi      , which shall be paid
within       day(s) after the execution of this Agreement.

 

 

 

Article 3 Taxes and Fees

The parties shall bear any applicable taxes, and costs and expenses in connection with the
negotiation, preparation and execution of this Agreement and the obtaining of all necessary
approval for this Agreement, respectively, including any reasonable costs and expenses of their
respective lawyers, accountants and other experts.

Article 4 Dispute Resolution

Any disputes between the Transferor and the Transferee arising from this Agreement shall be first
resolved through friendly consultation. If such dispute cannot be resolved within 15 days after
the commencement of the above consultation, either party may make an application to China
International Economic and Trade Arbitration Commission for arbitration in Shenzhen pursuant to its
arbitration rules. The arbitral award shall be final and binding upon the parties hereto.

Article 5 Miscellaneous

This Agreement is executed in Chinese in 6 originals. The Transferor and the Transferee shall each
keep two originals, the other one original shall be submitted to the original industrial and
commercial administrative department responsible for the registration of Target Company for filing
purpose, and the remaining original shall be submitted to public notary institution for
notarization (if necessary at that time). Each of the originals shall have the same legal effect.

	 	 	 
	Transferor (Common Chop):

	 	Transferee:
	 
	 	 
	Authorized Representative of the
Transferor (Signature):

	 	Authorized Representative of the
Transferee (Signature):

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