Document:

Dated
23rd day of October 2012

 

ENVISION GLOBAL GROUP

as Purchaser

 

and

 

COGO GROUP, INC.

as Seller

 

 

SALE AND
PURCHASE AGREEMENT

relating to the entire issued share capital of

(1) COMTECH (CHINA) HOLDING LTD.

(2) COMTECH (HK) HOLDING LTD.

and 

(3) ALPHALINK GLOBAL LIMITED

 

 

 

 

    	 

    	 

    

 

TABLE OF CONTENTS 

 

	Contents	 	Page
	 	 	 
	1.	Interpretation	2
	 	 	 
	2.	Agreement to Sell the Sale Shares	8
	 	 	 
	3.	Consideration	8
	 	 	 
	4.	Conditions Precedent	9
	 	 	 
	5.	Pre-Completion Undertakings	10
	 	 	 
	6.	Completion	11
	 	 	 
	7.	Third Party Offer	12
	 	 	 
	8.	Post-Completion Undertakings	13
	 	 	 
	9.	Warranties	16
	 	 	 
	10.	Indemnities	17
	 	 	 
	11.	General	18
	 	 	 
	Schedule 1	Part A - Details of the Comtech China Group, Comtech HK Group and Alphalink Group	24
	 	 	 
	 	Part B - Corporate Group Structure	33
	 	 	 
	 	Part C – Excluded Companies	34
	 	 	 
	Schedule 2	Completion Obligations	36
	 	 	 
	Schedule 3	Seller’s Warranties given under Clause 9.1	40
	 	 	 
	Schedule 4	Purchaser’s Warranties given under Clause 9.11	48

 

    	 

    	 

    

 

This Agreement is made
on the 23rd day of October 2012

 

Between:

 

		(1)	Cogo Group, Inc., a company incorporated with limited liability in the Cayman Islands, whose
registered office is at Abacus Management Limited, Ground Floor Elizabethan Square, George Town, P.O. Box 2499, Grand Cayman, KY1-1104
Cayman Islands (the “Seller”); and

 

		(2)	Envision Global Group, a company incorporated with limited liability in the Cayman Islands
whose registered office is at the offices of Offshore Incorporations (Cayman) Limited, Scotia Centre, 4th Floor, P.O. Box 2804,
George Town, Grand Cayman, KY1-1112, Cayman Islands (the “Purchaser”).

 

Whereas:

 

		(A)	As at the date hereof, Cogo, Inc. (“Cogo”) is a limited liability company incorporated
in the Cayman Islands. The Seller is the legal and beneficial owner of the entire issued and paid-up share capital of Cogo.

 

		(B)	As at the date hereof, Cogo is the legal and beneficial owner of, inter alia, the entire issued
and paid-up share capital of each of Comtech China (as defined below), Comtech HK (as defined below) and Alphalink (as defined
below). Further particulars of Comtech China, Comtech HK and Alphalink are set out in Schedule 1, Part A.

 

		(C)	As at the date hereof, Comtech China is the legal and beneficial owner of, inter alia, the entire
issued and paid-up share capital of each of Comtech Communication SZ (as defined below) and Comtech Software SZ (as defined below).
Comtech Communication SZ is the legal and beneficial owner of, inter alia, the entire issued and paid-up share capital of Comtech
Communication HK (as defined below). Further particulars of Comtech Communication SZ, Comtech Software SZ and Comtech Communication
HK are set out in Schedule 1, Part A.

 

		(D)	As at the date hereof, Comtech HK is the legal and beneficial owner of the entire issued and paid-up
share capital of each of Comtech International HK (as defined below) and HK JJT (as defined below). Further particulars of Comtech
International HK and HK JJT are set out in Schedule 1, Part A.

 

		(E)	As at the date hereof, Alphalink is the legal and beneficial owner of, inter alia, the entire issued
and paid-up share capital of Epcot Multimedia SZ (as defined below). Further particulars of Epcot Multimedia SZ are set out in
Schedule 1, Part A.

 

		(F)	The Seller will procure the Restructuring (as defined below) to be completed prior to the Completion
(as defined below). Upon completion of the Restructuring, (i) Comtech China will be the legal and beneficial owner of the entire
issued and paid-up share capital of each of Comtech Communication SZ and Comtech Software SZ; and (ii) Comtech Communication SZ
will be the legal and beneficial owner of the entire issued and paid-up share capital of Comtech Communication HK.

 

    	1

    	 

    

 

		(G)	The
Purchaser has agreed to purchase, and the Seller has agreed to sell, the entire issued share capital of each of Comtech China,
Comtech HK and Alphalink upon the terms and subject to the conditions under this Agreement.

 

		(H)	Upon Completion, the corporate structure of the Purchaser and the Target Group will be as set out
in Schedule 1, Part B.

 

IT IS AGREED as follows:

 

		1.	Interpretation

 

In this Agreement, unless the
context otherwise requires, the provisions in this Clause 1 apply:

 

		1.1	Definitions

 

“Acceptance Period” has the meaning
given to it in Clause 7.3;

 

“Affiliate”
means, with respect to any specified person, any other person who or which, directly or indirectly, Controls, is Controlled by,
or is under common Control with such specified person, including, without limitation, any partner, officer, director, member or
employee of such person and any venture capital fund now or hereafter existing that is Controlled by or under common Control with
one or more general partners or managing members of, or shares the same management company with, such person;

 

“Agreed Form”
means, in relation to a document, such document in the terms as agreed between the Purchaser and the Seller;

 

“Alphalink”
means Alphalink Global Limited, a limited liability company incorporated in the British Virgin Islands, the entire issued and paid-up
share capital of which is held by Cogo;

 

“Alphalink Group” means Alphalink
and its subsidiaries;

 

“Alphalink Sale Share”
means one (1) ordinary share of nominal value US$1.00 in the issued and paid-up share capital of Alphalink, representing the entire
issued and paid-up share capital of Alphalink;

 

“Applicable Law”
means, with respect to any person, any laws, rules, regulations, directives, decrees, treaties, or orders of any Governmental Entity,
that are applicable to and binding on such person;

 

“Business Day”
means any day (other than a Saturday, a Sunday or a public holiday in Hong Kong) on which banks in Hong Kong are open for normal
banking business provided that where, as a result of a typhoon signal number 8 (or above) or a black rainstorm warning or other
similar event, the period during which banks in Hong Kong are open for normal banking business on any day is reduced, any such
day shall not be a “Business Day” unless the Parties otherwise determine;

 

“Cogo” has the meaning given to
it in Recital (A);

 

    	2

    	 

    

 

“Completion”
means the completion of the sale and purchase of the Sale Shares pursuant to Clauses 6.1 and 6.2;

 

“Completion Date” means the date on which
Completion takes place;

 

“Comtech China” means
Comtech (China) Holding Ltd., a limited liability company incorporated in the British Virgin Islands, the entire issued and paid-up
share capital of which is held by Cogo;

 

“Comtech China Group” means Comtech China
and its subsidiaries;

 

“Comtech China Sale Share”
means one (1) ordinary share of nominal value US$1.00 in the issued and paid-up share capital of Comtech China, representing the
entire issued and paid-up share capital of Comtech China;

 

“Comtech Communication HK”
means Comtech Communication Technology (Hong Kong) Company Limited, a limited liability company incorporated in Hong Kong, the
entire issued and paid-up share capital of which is held by Comtech Communication SZ;

 

“Comtech Communication SZ”
means Comtech Communication Technology (Shenzhen) Company Limited, a wholly-foreign owned enterprise established in the PRC owned
by Comtech China;

 

“Comtech HK” means Comtech
(HK) Holding Ltd., a limited liability company incorporated in the British Virgin Islands, the entire issued and paid-up share
capital of which is held by Cogo;

 

“Comtech HK Group” means Comtech HK and its
subsidiaries;

 

“Comtech HK Sale Share”
means one (1) ordinary share of nominal value of US$1.00 in the issued and paid-up share capital of Comtech HK, representing the
entire issued and paid-up share capital of Comtech HK;

 

“Comtech International HK”
means Comtech International (Hong Kong) Limited, a limited liability company incorporated in Hong Kong, the entire issued and paid-up
share capital of which is held by Comtech HK;

 

“Comtech Software SZ”
means Comtech Software Technology (Shenzhen) Company Limited, a wholly-foreign owned enterprise established in the PRC owned by
Comtech China;

 

“Control” of a given
person means the power or authority, whether exercised or not, to direct the business, management and policies of such person,
directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, which power or authority
shall conclusively be presumed to exist upon possession of beneficial ownership or power to direct the vote of more than fifty
percent (50%) of the votes entitled to be cast at a meeting of the members or shareholders of such person or power to control the
composition of a majority of the board of directors of such person; the terms “Controlling” and “Controlled”
have meanings correlative to the foregoing;

 

    	3

    	 

    

 

“Corporate
Documents” means in relation to any company, its certificate of incorporation, certificate of incorporation on change
of name (if applicable) and its current business registration certificate (if applicable); certificate of approval, business licence
certificate, tax registration certificate(s) and foreign exchange registration certificate/card (if applicable); statutory records
and minute books written up to the Completion Date; common seal (if applicable), chops and all rubber stamps (including without
limitation any company chop or stamp held by any person in respect of the company); cheque books, cheque stubs and bank statements;
receipt books; all other accounting records; copies of all tax returns and assessment, if any, (receipted where the due dates
for payment fell on or before the Completion Date); all correspondence, if any, with its solicitors, accountants or the Inland
Revenue Department/tax bureau; all other documents and correspondence, if any, relating to its affairs; and all copies of the
memorandum and articles of association or bye-laws; and all licences, permits required for the business, if any; certificates
of all registered trade marks, patents and designs in connection with the business; originals of all contracts; all title deeds
and documents (including construction permits, if any) in relation to any property (if applicable) owned by such company;

 

“Defaulting Party” has the meaning given
to it in Clause 6.3;

 

“Encumbrance” means
(a) any debenture, mortgage, charge (whether fixed or floating, legal or equitable), pledge, lien, hypothecation, assignment, deed
of trust, title retention, security interest or other encumbrance of any kind securing, or conferring any priority of payment in
respect of, any obligation of any person, including without limitation any right granted by a transaction which, in legal terms,
is not the granting of security but which has an economic or financial effect similar to the granting of security under applicable
Laws and (b) any proxy, power of attorney, voting trust agreement, interest, option, right of first offer, negotiation or refusal
or transfer restriction in favour of any person;

 

“Escrow Agent” means Loeb & Loeb LLP;

 

“Escrow Agreement” means
the escrow agreement entered into between the Seller, the Purchaser and the Escrow Agent;

 

“Excluded Companies”
means collectively, Shenzhen Comtech International Limited, Shanghai E&T System Company Limited, Chengdu Comtech Communication
Technology Company Limited, Wuhan Comtech Communication Technology Company Limited, Hangzhou Mega Sky Communication Technology
Company Limited, Nanjing Youyingjie Communication Technology Company, Shanghai Comtech Electronic Technology Company Limited and
Beijing JJT Limited; further particulars of each of which is set out in Schedule 1, Part C;

 

“Epcot Multimedia SZ”
means Epcot Multimedia Technology (Shenzhen) Limited, a wholly-foreign owned enterprise established in the PRC owned by Alphalink;

 

“Governmental Entity”
means any supra national, national, state, municipal or local government (including any subdivision, court, administrative agency
or commission or other authority thereof) or any quasi governmental or private body exercising any regulatory, taxing, importing
or other governmental or quasi governmental authority;

 

    	4

    	 

    

 

“HK
JJT” means Hong Kong JJT Limited, a limited liability company incorporated in Hong Kong, the entire issued share capital
of which is held by Comtech HK;

 

“HKIAC” has the meaning given to it in Clause
11.12(B);

 

“Hong Kong” means the Hong Kong Special Administrative
Region of the PRC;

 

“Intellectual Property Rights”
means any patents, patent rights and applications therefor, inventions, discoveries, improvements, concepts, innovations, industrial
models, registered and unregistered copyrights, copyright registrations and applications, author’s rights, works of authorship
(including artwork of any kind and software of all types in whatever medium, inclusive of computer programs, source code, object
code and executable code, and related documentation), web sites, web pages, technical information, know-how, trade secrets, drawings,
designs, design protocols, specifications for parts and devices, research and development efforts, databases and proprietary data,
formulae, operational procedures, trade names, trademarks, domain names, and service marks, and registrations and applications
therefor, the goodwill of the business symbolized or represented by the foregoing, customer lists and other proprietary information
and common law rights;

 

“Long Stop Date” means
the date falling on the expiry of four (4) months from the date of this Agreement or such other date as may be mutually agreed
between the Purchaser and the Seller in writing;

 

“Management
Accounts” means the unaudited management accounts relating to the Target Group for the period from 1 January 2012
to the Management Accounts Date;

 

“Management Accounts Date” means 30 June 2012;

 

“Matching
Notice” has the meaning given to it in Clause 7.3;

 

“Material Adverse Effect”
means any change, circumstance, occurrence, fact, condition, event or effect that, individually or in the aggregate, has had or
is likely to have a material adverse effect on the business, condition (financial or otherwise), assets or liabilities, prospects
or results of operation, turnover, financial or trading position of the Target Group as a whole;

 

“Notice” has the meaning given to it in Clause
11.8(A);

 

“Outgoing Employees”
means a list of person as agreed between and initialed by the Purchaser and the Seller for identification;

 

“Parties” means the parties to this Agreement
and “Party” means any one of them;

 

“PRC”
means the People’s Republic of China (excluding, for the purposes of this Agreement, Hong Kong, the Macao Special
Administrative Region of the PRC and Taiwan);

 

“Purchase Consideration” has the meaning given to it in
Clause 3.1;

 

“Purchaser” has the meaning given to it in the Preamble;

 

    	5

    	 

    

 

“Purchaser’s
Group” means the Purchaser and its subsidiaries from time to time (following Completion);

 

“Purchaser Transitional Guarantees” has the
meaning given to it in Clause 8.5;

 

“Purchaser’s Warranties”
means the warranties and representations given by the Purchaser to the Seller pursuant to Clause 9.11 and Schedule 4, and “Purchaser’s
Warranty” means any one of them;

 

“Restructuring” has the meaning given to
it in Clause 4.1(A);

 

“Sale Shares” means
collectively, the Comtech China Sale Share, the Comtech HK Sale Share and the Alphalink Sale Shares;

 

“Seller” has the meaning given to it in the
Preamble;

 

“Seller’s Group”
means the Seller and its subsidiaries (excluding the Target Group) from time to time;

 

“Seller Transitional Guarantees” has the
meaning given to it in Clause 8.4(A);

 

“Seller’s Warranties”
means the warranties and representations given by the Seller pursuant to Clause 9.1 and Schedule 3 and “Seller’s
Warranty” means any one of them;

 

“Services” means the
warehouse facilities and provision of logistics services to be provided to/by the relevant members of the Seller’s Group
(other than the Target Group Companies) by/to the relevant Target Group Companies;

 

“Services Agreement”
means an agreement relating to the Services to be entered into prior to Completion.

 

“Share Charge” means
the share charge to be executed and delivered by the Purchaser in favour of Seller in respect of the Sale Shares in the Agreed
Form;

 

“Target Group” means
collectively, Comtech China, Comtech China Communication SZ, Comtech Software SZ, Comtech Communication HK, Comtech HK, Comtech
International HK, HK JJT, Alphalink and Epcot Multimedia SZ, excluding the Excluded Companies, and “Target Group Company”
means any one of them;

 

“Tax Authority” means
any taxing or other authority competent to impose any liability in respect of Taxation or responsible for the administration and/or
collection of Taxation or enforcement of any law in relation to Taxation;

 

“Taxation”
or “Tax” means all forms of taxation (other than deferred tax) and statutory, governmental, state, provincial,
local governmental or municipal impositions, duties, contributions and levies and whether levied by reference to income, profits,
gains, net wealth, asset values, turnover, added value or otherwise and shall further include payments in respect of or on account
of Tax, whenever and wherever imposed and whether chargeable directly or primarily against or attributable directly or primarily
to a Target Group Company or any other person and all penalties, charges, costs and interest relating thereto;

 

    	6

    	 

    

 

“Third Party Offer” has the meaning
given to it in Clause 7.1; “Third Party Offer Notice” has the meaning given to it in Clause 7.1;

 

“Transaction Documents” means
this Agreement, and such other document(s) as the Purchaser and the Seller may designate as such in writing;

 

“Transition Guarantees Fee” has
the meaning given to it in Clause 8.5;

 

“Transition Guarantee Fee” has the meaning given to it in Clause 8.4(B);
and

 

“US$” means United States dollars,
the lawful currency of the United States of America.

 

		1.2	References to one gender include all genders and references
to the singular include the plural and vice versa.

 

		1.3	References to:

 

		(A)	a person include any individual, company, firm partnership or unincorporated association (whether or not having separate legal
personality); and

 

		(B)	a company include any company, corporation or any body corporate, wherever incorporated.

 

		1.4	A company is a “subsidiary” of another
company if that other company, directly or indirectly, through one or more subsidiaries:

 

		(A)	holds a majority of the voting rights in it;

 

		(B)	is a member or shareholder of it and has the right to appoint or remove a majority of its board of directors or equivalent
managing body;

 

		(C)	is a member or shareholder of it and controls alone, pursuant to an agreement with other shareholders or members, a majority
of the voting rights in it; or

 

		(D)	has the right to exercise a dominant influence over it, for example by having the power to give, or by actually giving, directions
with respect to its operating and financial policies, with which its directors are obliged to comply.

 

		1.5	References to a statute or statutory provision include:

 

		(A)	that statute or provision as from time to time modified, re-enacted or consolidated whether before or after the date of this
Agreement;

 

		(B)	any past statute or statutory provision (as from time to time modified, reenacted or consolidated) which that statute or provision
has directly or indirectly replaced; and

 

    	7

    	 

    

 

		(C)	any subordinate legislation made from time to time under that statute or statutory
                                                                                                      provision.

 

		1.6	References to this Agreement shall include any Schedules
to it and references to Clauses and Schedules are to Clauses of, and Schedules to, this Agreement. References to paragraphs and
parts are to paragraphs and parts of the Schedules.

 

		1.7	References to books, records or other information mean
books, records or other information in any form including paper, electronically stored data, magnetic media, film and microfilm.

 

		1.8	The words “including”, “include”,
“in particular” and words of similar effect shall not be deemed to limit the general effect of
the words that precede them.

 

		2.	Agreement to Sell the Sale Shares

 

		2.1	On and subject to the terms and conditions of this Agreement,
the Seller agrees to sell and procure Cogo to sell, and the Purchaser (or its nominee(s)) agrees to purchase, the Sale Shares.

 

		2.2	The Sale Shares shall be sold free from Encumbrances
and together with all rights attaching to them as at Completion (including the right to receive all dividends or distributions
declared, made or paid on or after Completion).

 

		2.3	The Seller shall procure that on or prior to the Completion,
any and all rights of pre- emption over the Sale Shares are waived irrevocably by any persons entitled thereto.

 

		2.4	Neither the Seller nor the Purchaser shall be obliged
to complete the sale and purchase of any of the Sale Shares unless the sale and purchase of all the Sale Shares is completed simultaneously.

 

		3.	Consideration

 

		3.1	The aggregate consideration payable by the Purchaser
to the Seller for the purchase of the Sale Shares under this Agreement shall be US$78.0 million (the “Purchase Consideration”).

 

		3.2	The Purchase Consideration shall be payable by way of
two (2) instalments as set out below in cash or by way of wire transfer to such bank account(s) as the Seller may nominate in
writing not less than three (3) Business Days prior to the applicable time of payment:

 

	Instalment No.	 	Time of Payment	 	Amount
	 	 	 	 	 
	1	 	At Completion	 	US$10.0 million
	 	 	 	 	 
	2	 	On or before 31 December	 	US$68.0 million
		 	2012	 	 

 

		3.3	The allocation of the Purchase Consideration among the
relevant Sale Shares shall be determined by the Purchaser at its sole discretion.

 

    	8

    	 

    

 

		3.4	The Sale Shares shall be
held in escrow pursuant to the Escrow Agreement and shall be released, subject to receipt of the full payment of the second installment
of the Purchase Consideration, to the Purchaser within two (2) Business Days after the Escrow Agent has been advised of the receipt
of payment in fullno later than December 31, 2012, or failing which, to the Seller, along with appropriate stock powers executed
in blank and all other documentation necessary to effect the transfer of the Sale Shares back to the Seller. If the Sale Shares
are returned to the Seller in accordance with the foregoing, the installment no.1 in respect of US$10.0 million shall be returned
to the Purchaser within seven (7) Business Days after the return of such Sale Shares.

 

		4.	Conditions Precedent

 

		4.1	Completion is conditional upon the satisfaction (or waiver
in accordance with Clause 4.3) of the following conditions:

 

		(A)	each of Comtech China Group and Alphalink Group having completed the divestment of their respective
interests in the Excluded Companies on terms satisfactory to the Purchaser (the “Restructuring”) and the Purchaser
having received evidence satisfactory to it of the completion of the Restructuring;

 

		(B)	each of the covenants, agreements and obligations of the Seller and/or the Target Group Companies
to be performed and complied with on or prior to the Completion Date in accordance with this Agreement having been duly performed
or complied with in all material respects on or before Completion Date;

 

		(C)	the Seller’s Warranties being true, complete and accurate and not misleading in all material
respects on and as of the Completion Date, as though they had been given and made on such date by reference to the facts and circumstances
then subsisting;

 

		(D)	the Escrow Agreement shall have been entered into and be in full force and effect;

 

		(E)	the Services Agreement shall have been entered into and be in full force and effect;

 

		(F)	all material licences, consents, approvals, authorisations, permissions, waivers, orders, exemptions
or notifications which are required and appropriate for the execution and performance of this Agreement and the transaction contemplated
under this Agreement having been obtained or made from or to relevant third parties and/or governmental or regulatory authorities
or bodies, and not having been revoked prior to Completion; and

 

		(G)	between the date hereof and the Completion Date, no event or series of events shall have occurred
which, in the reasonable opinion of the Purchaser, has had or would reasonably be expected to have a Material Adverse Effect.

 

    	9

    	 

    

 

		4.2	The Seller shall use all reasonable endeavours to procure the satisfaction of the conditions
set out in Clauses 4.1(A) to 4.1(F) as soon as reasonably practicable after the date of this Agreement and in any event no later
than the Long Stop Date.

 

	4.3	(A)	The Seller shall give notice to the Purchaser of the satisfaction of the conditions set out in
Clauses 4.1(A) to 4.1(F) within two (2) Business Days of becoming aware of the same.

 

		(B)	The Purchaser may at any time waive in whole or in part and conditionally or unconditionally the
conditions set out in Clause 4.1 by notice in writing to the Seller. The Seller may not waive any of the conditions set out in
Clause 4.1.

 

		(C)	If the conditions in Clause 4.1 are not satisfied or waived on or before the Long Stop Date, this
Agreement (other than Clauses 1, 10, 11.2, 11.7 to 11.12) shall lapse and neither the Seller nor the Purchaser shall have any claim
against the other, save for any claim arising from antecedent breach of any obligation contained in Clause 4.2.

 

		5.	Pre-Completion Undertakings

 

Except as otherwise permitted
by this Agreement or with the prior written consent of the Purchaser (such consent not to be unreasonably withheld or delayed),
the Seller undertakes to procure, that, between the date of this Agreement and Completion (or earlier termination in accordance
with this Agreement), each Target Group Company:

 

		(A)	shall carry on its business in the ordinary course consistent with past practice in all material
respects and to preserve its relationships with its major customers, suppliers and others having business dealings with the Target
Group;

 

		(B)	shall not enter into any contract, arrangement or commitment of an unusual or onerous nature or
other than in the normal and ordinary course of business;

 

		(C)	shall not make any change in the terms and conditions of employment or pension benefits of any
of its directors or employees, or employ or terminate the employment of any person, other than the termination of the Outgoing
Employees;

 

		(D)	shall not pass any resolution for or which would result in the winding up, liquidation or entering
into administration or receivership of any Target Group Company; undertake any amalgamation, merger or restructuring (other than
for the purpose of implementing the Restructuring) or liquidation exercise concerning any Target Group Company; or apply for the
appointment of a receiver, manager or judicial manager or like officer of any Target Group Company or any material assets thereof;

 

		(E)	shall not enter into, or exercise an option in relation to, any agreement or incur any commitment
involving any capital expenditure exceeding US$100,000 (or its equivalent in any foreign currency), or such other amount as agreed
between the Parties in writing, in a single or a series of related transactions;

 

    	10

    	 

    

 

		(F)	shall
not enter into, or exercise an option in relation to, or amend any agreement or incur any commitment with a value exceeding US$100,000
(or its equivalent in any foreign currency), or such other amount as agreed between the Parties in writing, in a single or a series
of related transactions which is not capable of being terminated without compensation at any time with one month’s notice
or less or which is not in its ordinary and usual course of business;

 

		(G)	except for purposes of the Restructuring, shall not acquire or dispose of, or agree to acquire
or dispose of, any material asset, or enter into or amend any agreement or incur any commitment to do so;

 

		(H)	shall not acquire or agree to acquire any share, shares or other interest in any company, partnership
or other venture;

 

		(I)	shall not incur any additional borrowings or incur any other indebtedness in the nature of borrowings
otherwise than in its ordinary and usual course of business;

 

		(J)	shall not create, allot or issue any share capital or any option to subscribe for any such share
capital;

 

		(K)	shall not repay, redeem or repurchase any of its share capital;

 

		(L)	shall not declare, make or pay any dividend or other distribution to any of its shareholders;

 

		(M)	shall not make any loan (other than the granting of any trade credit in the ordinary and usual
course of business) to any person; and

 

		(N)	shall not enter into any guarantee, indemnity or other agreement to secure any obligation of a
third party or create any Encumbrance over any of its assets or undertaking in any such case.

 

		6.	Completion

 

		6.1	Date and Place

 

Subject to satisfaction of the
conditions in full as set out in Clause 4.1 or waiver thereof (as the case may be), Completion shall take place on the 5th Business
Day from the later of the day on which Seller has confirmed the Purchaser of the satisfaction of the conditions set out in clauses
4.1(A) to 4.1(F) (excluding the day of such confirmation) pursuant to Section 4.3(A) or the day the last of the conditions set
out in Clauses 4.1(A) and (F) have been satisfied or waived pursuant to Clause 4.3(B), or such other time, date and place as may
be mutually agreed by the Seller and the Purchaser.

 

		6.2	Completion Events

 

At Completion, the Seller and
the Purchaser shall comply with their respective obligations as specified in Schedule 2 in full.

 

    	11

    	 

    

 

		6.3	Breach of Completion Obligations

 

Without prejudice to Clauses
4.3(C) and 9.10, if any Party (the “defaulting Party”) fails to comply with its obligations as set out in Clause
6.2 and Schedule 2 in full, the non-defaulting Party shall be entitled (in addition to and without prejudice to all rights and
remedies available to the non-defaulting Party including the right to claim damages, indemnification or other compensation) by
written notice to the defaulting Party:

 

		(A)	to terminate this Agreement (other than Clauses 1, 10, 11.2 and 11.7 to 11.12) without liability
on its part; or

 

		(B)	to effect Completion so far as practicable having regard to the defaults which have occurred; or

 

		(C)	to fix a new date for Completion (being not more than twenty (20) Business Days after the agreed
date for Completion) in which case Clause 6.2 and Schedule 2 shall apply to Completion as so deferred but provided such deferral
may only occur once.

 

		7.	Third Party Offer

 

		7.1	Prior to Completion, if and each time the Seller receives a bona fide written offer in respect
of the Sale Shares from a third party independent from the Company and its shareholders and on terms which are better than the
terms of this Agreement (taken as a whole), as determined by the audit committee of the Seller in its sole and absolute discretion
(the “Third Party Offer”), the Seller must forthwith deliver a notice to the Purchaser in writing and in any
event not less than ten (10) Business days before Completion (the “Third Party Offer Notice”).

 

		7.2	The Third Party Offer Notice must specify:

 

		(A)	the aggregate purchase price, which must be in cash or immediately available funds;

 

		(B)	the proposed completion date; and

 

		(C)	any other material terms of the Third Party Offer,

 

provided that such Third Party
Offer must be in respect of all of the Sale Shares and not part of the Sale Shares.

 

		7.3	The Purchaser may, within five (5) Business Days after receipt of the Third Party Offer Notice
(the “Acceptance Period”), serve a notice in writing (the “Matching Notice”) to the Seller
offering to match the terms and conditions of the Third Party Offer Notice.

 

		7.4	If the Purchaser fails to serve a Matching Notice before
the expiry of the Acceptance Period, the Seller shall be entitled to terminate this Agreement by notice in writing to the Purchaser
and no Party shall have any rights, liabilities and obligations to the other Party pursuant to such termination.

 

    	12

    	 

    

 

		7.5	If the Purchaser serves a Matching Notice to the Seller within the Acceptance Period, the Seller
shall be obliged to sell the Sale Shares to the Purchaser on and subject to the terms and conditions of the Third Party Offer and
the Parties shall enter into all relevant agreements to amend this Agreement to reflect and incorporate such terms and conditions.

 

		8.	Post-Completion Undertakings

 

		8.1	Each Party irrevocably and unconditionally undertakes to the other Party, for a period of two (2)
years from the Completion Date, unless with the prior written consent of the other Party, it shall not, and procure that each of
its Affiliates shall not, directly or indirectly, carry on, engage, invest, participate, be economically interested in or otherwise
participate (including through any body corporate, partnership, joint venture or other contractual arrangement) in any business
which involves the distribution of the product that the other Party distributes or has in the past distributed and which is or
is likely to be in competition with the other party or have any interest in any project or proposal in any such business or activity
on behalf of or for the benefit of any person. The Parties agree that the restrictions contained in this Clause 8.1 are no greater
than those which are reasonable and necessary for the protection of the interests of each other, but if any of such restrictions
shall be held to be void but would be otherwise valid if deleted in part or reduced in application, such restriction shall apply
with such deletion or modification as may be necessary to make it valid and enforceable.

 

		8.2	Following Completion, it is the intention of the Parties to use their respective commercially reasonable
efforts to procure the Target Group to maintain the Target Business in the ordinary course consistent with past practice in all
material respects and to assist the Target Group to preserve their relationships with their major customers, suppliers and others
having business dealings with the Target Group.

 

		8.3	It is agreed that, after Completion, in no event may the net of the aggregate amount owed (including for the provision of Services
but excluding for the Transitional Guarantees) to the Seller’s Group by the Purchaser’s Group be in excess of US$10.0
million unless specifically approved by the audit committee of the Seller.

 

		8.4	It is agreed that after Completion, the Seller’s Group shall continue to provide, non- exclusively,
to the Target Group (or vice versa) the Services, in accordance with the policy and fee schedule set by the provider of the Services
on a commercially reasonable and arm’s length basis. The Target Group or the Seller’s Group, as the case may be, in
its capacity as the relevant provider of the Services has the absolute discretion to change the terms and conditions relating to
the provision of the Services at any time.

 

8.5         (A)        Immediately
upon Completion and up to 31 December 2014, unless earlier terminated in accordance with Clause 8.6, as part of the transitional
arrangement, the Seller shall procure the members of the Seller’s Group (other than the Target Group Companies) to continue
to act as the guarantors of the Target Group Companies and to continue to provide and honour (i) guarantees given by the Seller’s
Group (other than the Target Group) in favour of banks and financial institutions in respect of all existing credit facilities
granted to the Target Group and (ii) guarantees given by the Seller’s Group (other than the Target Group) in favour of the
Target Group Companies’ suppliers and customers subject to a maximum cap of US$60.0 million (collectively, the “Seller
Transitional Guarantees”).

 

    	13

    	 

    

 

		(B)	In consideration of the Transitional Guarantee Services provided by the Seller, the Purchaser agrees
to pay a guarantee service fee (the “Transitional Guarantee Fee”) of US$250,000 (or pro-rated if terminated
earlier) to the Seller in respect of each 3 month-period following the Completion Date (which the Purchaser and the Seller hereby
acknowledge to be fair and reasonable).

 

	8.6	Immediately upon Completion and up to 31 December 2014, unless earlier terminated in accordance
with Clause 8.6, as part of the transitional arrangement, the Purchaser shall procure the members of the Target Group to continue
to act as the guarantors of members of the Seller’s Group and to continue to provide and honour (i) guarantees given by the
Target Group in favour of banks and financial institutions in respect of all existing credit facilities granted to the Seller’s
Group and (ii) guarantees given by the Target Group in favour of the suppliers and customers of the Seller’s Group subject
to a maximum cap of US$240.0 million (the “Purchaser Transitional Guarantees” and together with the Seller Transitional
Guarantees, the “Transitional Guarantees”).

 

	8.7	Notwithstanding the foregoing, it is agreed that the Purchaser shall procure the Target Group and
the Seller shall procure the Seller Group not to take any action or make any borrowing which would result in the maximum cap on
the relevant Transitional Guarantees by the other Party being exceeded, unless with the prior written consent of the other Party
(and in such event, such prior written consent of the Seller may only be given with the approval or consent of the audit committee
of the Seller). The Parties shall procure that the Transitional Guarantees shall be reviewed on a quarterly basis after Completion
by the Parties. In addition, the Parties agree that the Transitional Guarantees shall terminate in any event by 31 December 2014
unless (i) the Seller and the Purchaser mutually agree to terminate earlier, (ii) in the case of the Seller Transitional Guarantees,
the Seller gives not less than three (3) months’ notice to the Purchaser to terminate any of the relevant guarantee arrangement;
or (iii) in the case of the Purchaser Transitional Guarantees, the Purchaser gives not less than three (3) months’ notice
to the Seller to terminate any of the relevant guarantee arrangement. Pursuant to any termination of the Transitional Guarantees,
the Parties shall do or procure to be done all such further acts and things, and execute or procure the execution of all such other
documents, as may be reasonably required for the purpose of discharging the existing guarantees and replacing such guarantees with
appropriate replacement guarantee arrangements as the Purchaser may reasonably determine.

 

	8.8	Subject to the Purchaser and the Seller complying with Clause 8.2, the Purchaser shall, for a period
of two (2) years from the Completion Date:

 

		(A)	use commercially reasonable efforts to procure the Target Group not to lay off more than 10% of
all its existing employees as at the Completion Date; and

 

		(B)	use commercially reasonable efforts to procure the Target Group to maintain the growth of the Target
Business,

 

    	14

    	 

    

 

provided that the obligations
of the Purchaser under this Clause 8.8 shall cease automatically with immediate effect if any one of the Seller Transitional Guarantees
is terminated without the approval of the Purchaser during such two (2) year period.

 

		8.9	Except as otherwise permitted by this Agreement or with the prior written consent of the Seller
(such consent not to be unreasonably withheld or delayed), the Seller undertakes to procure, that, between the date of the Completion
and the date the Purchase Consideration has been paid in full, each Target Group Company:

 

		(A)	shall carry on its business in the ordinary course consistent with past practice in all material
respects and to preserve its relationships with its major customers, suppliers and others having business dealings with the Target
Group;

 

		(B)	shall not enter into any contract, arrangement or commitment of an unusual or onerous nature or
other than in the normal and ordinary course of business;

 

		(C)	shall not make any change in the terms and conditions of employment or pension benefits of any
of its directors or employees, or employ or terminate the employment of any person, other than the termination of the Outgoing
Employees;

 

		(D)	shall not pass any resolution for or which would result in the winding up, liquidation or entering
into administration or receivership of any Target Group Company; undertake any amalgamation, merger or restructuring (other than
for the purpose of implementing the Restructuring) or liquidation exercise concerning any Target Group Company; or apply for the
appointment of a receiver, manager or judicial manager or like officer of any Target Group Company or any material assets thereof;

 

		(E)	shall not enter into, or exercise an option in relation to, any agreement or incur any commitment
involving any capital expenditure exceeding US$100,000 (or its equivalent in any foreign currency), or such other amount as agreed
between the Parties in writing, in a single or a series of related transactions;

 

		(F)	shall not enter into, or exercise an option in relation to, or amend any agreement or incur any
commitment with a value exceeding US$100,000 (or its equivalent in any foreign currency), or such other amount as agreed between
the Parties in writing, in a single or a series of related transactions which is not capable of being terminated without compensation
at any time with one month’s notice or less or which is not in its ordinary and usual course of business;

 

		(G)	shall not acquire or dispose of, or agree to acquire or dispose of, any material asset, or enter
into or amend any agreement or incur any commitment to do so;

 

		(H)	shall not acquire or agree to acquire any share, shares or other interest in any company, partnership
or other venture;

 

    	15

    	 

    

 

		(I)	shall
not incur any additional borrowings or incur any other indebtedness in the nature of borrowings otherwise than in its ordinary
and usual course of business;

 

		(J)	shall not create, allot or issue any share capital or any option to subscribe for any such share
capital;

 

		(K)	shall not repay, redeem or repurchase any of its share capital;

 

		(L)	shall not declare, make or pay any dividend or other distribution to any of its shareholders, save
where the moneys from the dividends are applied towards the satisfaction of the Purchase Consideration;

 

		(M)	shall not make any loan (other than the granting of any trade credit in the ordinary and usual
course of business) to any person; and

 

		(N)	shall not enter into any guarantee, indemnity or other agreement to secure any obligation of a
third party or create any Encumbrance over any of its assets or undertaking in any such case.

 

		8.10	Subsequent to the execution of this Agreement, but prior to the Completion, the parties shall enter
into a Services Agreement relating to the provision of the Services.

 

		9.	Warranties

 

		9.1	The Seller warrants, represents and undertakes to the Purchaser that the information set out in
Schedule 1 and each of the statements set out in Schedule 3 are true, accurate and not misleading in all material respects as of
the date of this Agreement and the Completion Date.

 

		9.2	Each of the Seller’s Warranties shall be separate and independent and shall not be limited
by reference to any other paragraph of Schedule 3 or by any other term in this Agreement.

 

		9.3	The Seller acknowledges that the Purchaser has entered into this Agreement in reliance upon the
Seller’s Warranties.

 

		9.4	The Seller shall use its reasonable endeavours to procure that (save only as may be necessary to
give effect to this Agreement) neither it nor any Target Group Company shall do, allow or procure any act or omission before Completion
which would constitute a breach of any of the Seller’s Warranties if they were given at Completion or which would make any
of the Seller’s Warranties inaccurate or misleading if they were so given.

 

		9.5	(A)        If after the signing of this Agreement:

 

		(i)	the Seller becomes aware that any of the Seller’s Warranties was untrue, inaccurate or misleading
as of the signing of this Agreement; or

 

		(ii)	any
event occurs or matter arises (including any omission to act) of which the Seller becomes aware which results or may result in
any of the Seller’s Warranties being inconsistent, untrue, inaccurate or misleading at Completion, had the Seller’s
Warranties been repeated on Completion or would reasonably be expected to have a Material Adverse Effect,

 

    	16

    	 

    

 

the Seller shall forthwith notify
the Purchaser in writing and in any event prior to Completion setting out full details of the matter and the Seller shall make
any investigation concerning the event or matter and take such action, at its own cost, as the Purchaser may require.

 

		(B)	Any notification pursuant to this Clause 9.7 shall not operate as a disclosure to the Seller’s
Warranties and the Seller’s Warranties shall not be subject to such notification.

 

	9.6	The Purchaser warrants and represents to the Seller that the statements set out in Schedule 4 are
true, accurate and not misleading in all respects as of the date of this Agreement and the Completion Date.

 

	9.7	(A)	Notwithstanding any other provision to the contrary
contained herein, the liabilities of either Party to the other Party under this Agreement shall be limited to a maximum aggregate
amount of US$78,000,000.

 

		(B)	No liability shall attach to either of the Parties where the total amount of the losses or damages
suffered by the other Party in any claim under this Agreement is less than US$500,000.

 

10. Indemnities

 

10.1 General

 

Each of the Parties agrees to
indemnify the other non-breaching Party against all losses, damages, costs and expenses (including reasonable legal costs and expenses),
and any depletion or diminution in the value of the Sale Shares which such non-breaching Party may suffer through or arising from
any breach of its respective obligations, commitments, undertakings, warranties, indemnities and covenants under or pursuant to
this Agreement and the other ancillary documents, including:

 

		(A)	the settlement of any claim for breach of the undertakings given by the defaulting Party under
this Agreement and the other ancillary documents (where applicable);

 

		(B)	the settlement of any claim that any of the Seller’s Warranties or the Purchaser’s
Warranties, as the case may be, made by it are, on or before the Completion Date, untrue or misleading or have been breached;

 

		(C)	any proceedings in which the non-breaching Party claims that any of the Seller’s Warranties
or the Purchaser’s Warranties, as the case may be, made by them are, on or before the Completion Date, untrue or misleading
or have been breached; and

 

		(D)	the enforcement of any such settlement, arbitral award or judgment against the defaulting Party.

 

    	17

    	 

    

 

10.2 Specific Events

 

The Seller undertakes to the
Purchaser to indemnify the Purchaser and/or Target Group Companies against all reasonable losses, damages, costs and expenses (including
reasonable legal costs and expenses), which the Purchaser and/or the Target Group Company may suffer through or arising from the
Restructuring.

 

The Purchaser undertakes to
the Seller to indemnify the Seller against all reasonable losses, damages, costs and expenses (including reasonable legal costs
and expenses), which the Seller and/or the Seller Group may suffer through or arising from the failure of the Purchaser to pay
the second installment of the Purchase Consideration by December 31, 2012.

 

10.3 Taxation

 

The Seller agrees and undertakes
to pay to the Purchaser an amount equal to any Taxation or any additional Taxation for which the Purchaser or any Target Group
Company becomes liable (or would be liable but for the availability of a Tax relief) as a result of the Seller’s failure
to pay, delayed payment of, or omit to make any applicable submissions, returns or filings in respect of any Tax on the transaction
contemplated under this Agreement as assessed against the Seller or any Target Group Company by any relevant Tax Authority or any
Applicable Law.

 

		11.	General

 

11.1 Further Assurances

 

		(A)	Each Party shall do or procure to be done all such further acts and things, and execute or procure
the execution of all such other documents, as the other Parties may from time to time reasonably require, whether on or after the
Completion Date, for the purpose of giving to the other Parties the full benefit of all of the provisions of this Agreement and
other ancillary documents.

 

		(B)	Pending registration of the Purchaser as legal and beneficial holder of the Sale Shares, the Seller
shall procure Cogo, from Completion, exercise all voting and other rights in relation to the Sale Shares strictly in accordance
with the Purchaser’s instructions.

 

11.2 Whole Agreement

 

This Agreement contains the
whole agreement between the Seller and the Purchaser relating to the subject matter of this Agreement at the date of this Agreement
to the exclusion of any terms implied by law which may be excluded by contract and supersedes any previous written or oral agreement
between the Seller and the Purchaser in relation to the matters dealt with in this Agreement.

 

11.3 Reasonableness

 

Each of the Seller and the Purchaser
agrees that the provisions of this Agreement and all documents entered into pursuant to this Agreement are fair and reasonable.

 

    	18

    	 

    

 

11.4 Assignment

 

		(A)	This Agreement shall be binding on and shall enure for the benefit of each Party’s successors
and permitted assigns and personal representatives (as the case may be).

 

		(B)	No other Party may assign or transfer any of its rights or delegate any of its obligations under
this Agreement without the express prior written consent of the other Parties Provided That The Purchaser may assign or transfer
any or all of its rights and delegate any or all of its obligations under this Agreement to any of its subsidiaries, holding company
or fellow subsidiaries of such holding company. Any purported transfer in contravention of this Clause (B) shall be null and void
ab initio.

 

11.5 Time is of Essence

 

Time shall be of the essence of this Agreement.

 

11.6 Variation

 

No variation of this Agreement
shall be effective unless in writing and signed by or on behalf of each of the Parties.

 

11.7 Costs, Transaction Taxes and Duties

 

		(A)	Each of the Parties agree that it shall bear its own costs in connection with the preparation and
negotiation of, and the entry into, this Agreement.

 

		(B)	The Parties shall bear the cost of all notarial fees, and all registration, stamp and transfer
taxes and duties payable as a result of the transaction contemplated by this Agreement in equal shares.

 

		(C)	The Seller shall be responsible for arranging the payment of all such fees, taxes and duties, including
fulfilling any administrative or reporting obligation imposed by the jurisdiction in question in connection with the payment of
such taxes and duties. The Purchaser shall as soon as practicable reimburse the Seller for the Purchaser’s share of such
fees, taxes and duties on request and production of appropriate receipts.

 

11.8 Notices

 

		(A)	Any notice or other communication in connection with this Agreement (each, a “Notice”)
shall be:

 

		(i)	in writing in English;

 

		(ii)	delivered by hand, registered post or by courier using an internationally recognised courier company;
or

 

		(iii)	via electronic mail.

 

    	19

    	 

    

 

		(B)	A
Notice to the Seller shall be sent to the following address, or such other person or address as the Seller may notify to the Purchaser
from time to time:

 

Cogo Group Inc.

 

Correspondence Address:            Room 1001, Tower C, Skyworth
Building,

High-tech Industrial Park, Nanshan, Shenzhen, 518057

 

	Attention:	Audit Committee
	 	 
	Email addresses:	To be incorporated by reference

 

		(C)	A Notice to the Purchaser shall be sent to the following address, or such other person or address
as the Purchaser may notify to the Seller from time to time:

 

Envision Global Group

 

Correspondence Address:            10th Floor, Cosco Tower,
Grand Millennium

Plaza, 183 Queen's Road Central, Hong Kong

 

	Attention:	Director
	 	 
	Email address:	To be incorporated by reference

 

		(D)	A Notice shall be effective upon receipt and shall be deemed to have been received:

 

		(i)	24 hours after posting, if delivered by registered post; or

 

		(ii)	at the time of delivery, if delivered by hand or courier; or

 

		(iii)	at the time of sending, if sent by email, provided that receipt shall not occur if the sender receives
an automated message indicating that the email has not been delivered to the recipient.

 

11.9 Invalidity

 

		(A)	If any provision in this Agreement shall be held to be illegal, invalid or unenforceable, in whole
or in part, the provision shall apply with whatever deletion or modification is necessary so that the provision is legal, valid
and enforceable and gives effect to the commercial intention of the Parties.

 

		(B)	To the extent it is not possible to delete or modify the provision, in whole or in part, under
Clause 11.9(A), then the Parties shall use reasonable endeavours to agree to replace such illegal or unenforceable (as the case
may be) provision with a legal, valid and enforceable one which comes as close as possible to the purpose of such illegal, invalid
or unenforceable (as the case may be) provision.

 

    	20

    	 

    

 

11.10 Counterparts

 

This Agreement may be entered
into (including by facsimile signatures) in any number of counterparts, all of which taken together shall constitute one and the
same instrument.

 

11.11 Damages may not be Adequate

 

Without prejudice to any other
rights or remedies which a Party may have under this Agreement, the Parties acknowledge and agree that damages may not be an adequate
remedy for any breach of this Agreement and the remedies of injunction, specific performance and other non-monetary remedies (in
addition to damages) as permitted by Applicable Law are appropriate for any threatened or actual breach of any provision of this
Agreement and no proof of special damages shall be necessary for the enforcement of the rights under this Clause 11.11.

 

11.12 Governing Law and Dispute Resolution

 

		(A)	This Agreement and any non-contractual obligations arising out of or in connection with it shall
be governed by and construed in accordance with Hong Kong law.

 

		(B)	All disputes, controversies or claims arising out of or relating to this Agreement, or the breach,
termination or invalidity thereof, shall be settled (if not resolved by a non-binding mediation process) by arbitration in accordance
with the UNCITRAL Arbitration Rules as at present in force from time to time. The place of arbitration shall be in Hong Kong at
the Hong Kong International Arbitration Centre (the “HKIAC”), and the proceedings shall be conducted in English.
The tribunal shall consist of one arbitrator to be appointed by the Chairman of the HKIAC. Any such arbitration shall be administered
by the HKIAC in accordance with the HKIAC Procedures for Arbitration in force at the Completion Date including such additions to
the UNCITRAL Arbitration Rules as are therein contained. An award by the arbitrator shall be final and conclusive and binding upon
the parties and shall not be subject to further appeal.

 

		(C)	Each of the Parties irrevocably submits to the non-exclusive jurisdiction of the courts of Hong
Kong to support and assist the arbitration process pursuant to Clause 11.12(B), including if necessary the grant of interlocutory
relief pending the outcome of that process.

 

    	21

    	 

    

 

This Agreement has been executed on the date stated at the beginning.
The Seller

 

	SIGNED by	/s/Nathan Zhang)
	 	Nathan Zhang   )
	 	)
	 	)

 

	for an on behalf of	)
	Cogo Group, Inc.	)
	in the presence of:	)

 

    	22

    	 

    

 

The Purchaser

 

	SIGNED by	/s/Jeffrey Kang)
	 	Jeffrey Kang   )
	 	)
	 	)
	for an on behalf of	)
	Envision Global Group	)
	in the presence of:	)

 

    	23

    	 

    

 

Schedule
1

 

Part A - Details of the Comtech China
Group, Comtech HK Group

and Alphalink Group

 

Comtech China Group 

 

Comtech (China) Holding Ltd.

 

	Name of Company:	Comtech (China) Holding Ltd.
	 	 
	Registered number:	497460
	 	 
	Registered office:	Offshore Incorporations Centre, P.O. Box 957,
	 	Road Town, Tortola, British Virgin Islands,
	 	 
	Date and place of incorporation:	27 May 2002, the British Virgin Islands
	 	 
	Authorised share capital:	USD50,000.00 divided into 50,000 ordinary
	 	shares of nominal value US$1.00 each
	 	 
	Issued share capital:	US$1.00

  

	Shareholder(s) and shares held: 	Cogo, Inc. (100%)
	 	 
	Director(s):	Kang, Jing Wei
	 	 
	Secretary:	Venture Partners CPA Limited
	 	 
	Subsidiaries:	Comtech Communication Technology (Shenzhen) Company Limited (100%)
	 	 
	 	Comtech Software Technology (SZ) Company Limited (100%)
	 	 
	 	#Shenzhen Comtech International Limited (100%)
	 	 
	 	#Shanghai E&T System Company Limited (95%)(5% owned by Shenzhen Comtech International Limited)
	 	 
	 	#Shanghai Comtech Electronic Technology Company Limited (100%)

 

    	24

    	 

    

 

		
	 Comtech Communication Technology
	(Shenzhen) Company Limited

 

	Name of Company:	(Comtech
	 	Communication Technology (Shenzhen) 
	 	Company Limited*)
	 	 
	Registered number:	440301503276298
	 	 
	Registered office:	Suites C1001 –C1003 Skyworth Building,
	 	High-Tech Industrial Park, Nanshan, China
	 	 
	Date and place of establishment:	23 July 2002, the PRC
	 	 
	Registered capital:	HKD140,220,000
	 	 
	Paid-up capital:	HKD140,220,000
	 	 
	Shareholder(s) and equity interest held:	Comtech (China) Holding Ltd. (100%) 
	 	 
	Legal representative:	Chan Kim Hung Edward
	 	 
	Director(s):	Honghui Li, Henry Chiu, Chan Kim Hung, Edward
	 	 
	Subsidiaries:	Comtech Communication Technology (Hong Kong) Company Limited (100%)
	 	 
	 	#Chengdu Comtech Communication Technology Company Limited (100%)
	 	 
	 	#Wuhan Comtech Communication Technology Company Limited (100%)
	 	 
	 	#Nanjing Youyingjie Comtech Communication Technology Company Limited (100%)
	 	 
	 	#Hangzhou Mega Sky Communication Technology Company Limited (100%)

 

*The English name is for identification purpose only.

 

    	25

    	 

    

 

Comtech Software Technology (Shenzhen)
Company Limited

 

	Name of Company:	Comtech Software Technology (Shenzhen)
	 	Company Limited
	 	 
	Registered number:	44030150327632
	 	 
	Registered office:	Block C 9/F Skyworth Building, High-Tech
	 	Industrial Park, Nanshan, China
	 	 
	Date and place of establishment:	18 March 2004, the PRC
	 	 
	Registered capital:	USD 21,338,000
	 	 
	Paid-up capital:	USD 21,338,000
	 	 
	Shareholder(s) and equity interest held:	Comtech (China) Holding Ltd. (100%)
	 	 
	Legal representative:	Henry Chiu
	 	 
	Director(s):	Honghui Li, Henry Chiu and Chan Kim
	Hung,	
	 	Edward
	 	 
	Subsidiaries:	Nil

 

    	26

    	 

    

 

	Comtech Communication Technology (Hong Kong) Company Limited  
	 	 

	Name of Company:	Comtech Communication Technology (Hong
	 	Kong) Company Limited  
	 	
	 	
	Registered number:	1488390
	 	 
	Registered office:	Suite 1110 Manhattan Centre, 8 Kwai Cheong
	 	Road, Kwai Chung, NT, Hong Kong
	 	 
	Date and place of incorporation:	3 August 2010, Hong Kong
	 	 
	Authorised share capital: 	US$25,000,000 divided into 25,000,000 ordinary shares of nominal value US$1.00 each
	 	 
	Issued share capital:	US$10,000
	 	 
	Shareholder(s) and shares held:	Comtech Communication Technology (Shenzhen) Company Limited (100%)
	 	 
	Director(s):	Comtech Communication Technology (Shenzhen) Company Limited
	 	 
	Secretary:	SME Accounting Consultants Limited
	 	 
	Subsidiaries:	Nil

 

    	27

    	 

    

 

Comtech HK
Group

 

Comtech (HK) Holding Ltd.

 

	Name of Company:	Comtech (HK) Holding Ltd.
	 	 
	Registered number:	497459
	 	 
	Registered office:	Offshore Incorporations Centre, P.O. Box 957,
	 	Road Town, Tortola, Virgin Islands, British
	 	 
	Date and place of incorporation:	27 May 2002, the British Virgin Islands
	 	 
	Authorised share capital:	US$50,000 divided into 50,000 ordinary
	 	shares of nominal value US$1.00 each
	 	 
	Issued share capital:	US$1.00
	 	 
	Shareholder(s) and shares held: Cogo, Inc. (100%)
	 	 
	Director(s):	Kang, Jingwei
	 	 
	Secretary:	Venture Partners CPA Limited
	 	 
	Subsidiaries:	Comtech International (Hong Kong) Limited
	 	(100%)
	 	 
	 	Hong Kong JJT Limited (100%)

 

    	28

    	 

    

 

	Comtech International (Hong Kong) Limited 	

 

	Name of Company:	Comtech International (Hong Kong) Limited
	 	
	 	 
	Company number:	723996
	 	 
	Registered office:	Suite 1110 Manhattan Centre, 8 Kwai Cheong
	 	Road, Kwai Chung, NT, Hong Kong
	 	 
	Date and place of incorporation:	14 July 2000, Hong Kong
	 	 
	Authorised share capital:	HK$1,000,000 divided into 1,000,000 ordinary
	 	shares of nominal value HK$1.00 each
	 	 
	Issued share capital:	HK$1,000,000
	 	 
	Shareholder(s) and shares held: Comtech (HK) Holding Ltd. (100%)
	 	 
	Director(s):	Shi Yang, Honghui Li
	 	 
	Secretary:	SME Accounting Consultants Limited
	 	 
	Subsidiaries:	Nil

 

    	29

    	 

    

 

Hong Kong JJT Limited

 

	Name of Company:	Hong Kong JJT Limited
	 	 
	Company number:	1160829
	 	 
	Registered office:	Suite 1110 Manhattan Centre, 8 Kwai Cheong
	 	Road, Kwai Chung, NT, Hong Kong
	 	 
	Date and place of incorporation:	23 August 2007, Hong Kong
	 	 
	Authorised share capital:	HK$10,000 divided into 10,000 ordinary
	 	shares of nominal value HK$1.00 each
	 	 
	Issued share capital:	HK$1.00
	 	 
	Shareholder(s) and shares held: Comtech (HK) Holding Ltd. (100%)
	 	 
	Director(s):	Chan Kim Hung, Edward & Shi Yang
	 	 
	Secretary:	Allen Wu
	 	 
	Subsidiaries:	Nil

 

    	30

    	 

    

 

Alphalink Group

 

Alphalink Global Limited

 

	Name of Company:	Alphalink Global Limited
	 	 
	Registered number:	625981
	 	 
	Registered office:	OMC Chambers, P.O. Box 3152, Road Town,
	 	Tortola, British Virgin Islands
	 	 
	Date and place of incorporation:	23 November 2004, the British Virgin Islands
	 	 
	Authorised share capital:	US$50,000 divided into 50,000 ordinary
	 	shares of nominal value US$1.00 each
	 	 
	Issued share capital:	US$1.00
	 	 
	Shareholder(s) and shares held: Cogo, Inc. (100%)
	 	 
	Director(s):	Kang, Jingwei
	 	 
	Secretary:	Overseas Management Trust (BVI) Ltd.
	 	 
	Accounting reference date:	 
	 	 
	Subsidiaries:	Epcot Multimedia Technology (Shenzhen) Limited (100%)
	 	 
		#Beijing JJT Limited (100%)

 

    	31

    	 

    

 

Epcot Multimedia Technology (Shenzhen) Limited

 

	Name of Company:	Epcot Multimedia Technology (Shenzhen)
	 	Limited
	 	 
	Registered number:	440301503230800
	 	 
	Registered office:	Skyworth Building, Block A Suite 502B,
	 	High-Tech Industrial Park, Nanshan, China
	 	 
	Date and place of establishment:	24 May 2005, the PRC
	 	 
	Registered capital:	US$500,000
	 	 
	Paid-up capital:	US$500,000
	 	 
	Shareholder(s) and equity interest held:	Alphalink Global Limited (100%)
	 	 
	Legal representative:	Fuya Zheng
	 	 
	Director(s):	Fuya Zheng, Shi Yang, Honghui Li
	 	 
	Subsidiaries:	Nil

 

#: As at the date hereof, the Excluded Companies are members
of the Comtech China Group and the Alpalink Group. Immediately prior to Completion, the Excluded Companies shall have been divested
from the Comtech China Group and the Alpalink Group.

 

    	32

    	 

    

 

Part B – Corporate Structure

(Immediately after Completion)

 

 

   

    	33

    	 

    

 

Part C – Excluded Companies

 

	Name of Company:	Shenzhen Comtech International Limited
	 	 
	Registered number:	440301103059773
	 	 
	Registered office:	
		 
	Date and place of incorporation:	4 July 1996, the PRC
	 	 
	Name of Company:	Shanghai E&T System Company Limited
	 	 
	Registered number:	310229000728117
	 	 
	Registered office:	
	 	 
	Date and place of incorporation:	5 June 2003, the PRC
	 	 
	Name of Company:	Shanghai Comtech Electronic Technology
	 	Company Limited
	 	 
	Registered number:	To be incorporated by reference
	 	 
	Registered office:	To be incorporated by reference
	 	 
	Date and place of incorporation:	28 May 2008, the PRC
	 	 
	Name of Company:	Chengdu Comtech Communication
	 	Technology Company Limited
	 	 
	Registered number:	510109000147663
	 	 
	Registered office:	
	 	
		 
	Date and place of incorporation:	21 October 2010, the PRC

 

 

    	34

    	 

    

  

	 	 
	Name of Company:	Wuhan Comtech Communication Technology
	 	Company Limited
	 	 
	Registered number:	420100000212898
	 	 
	Registered office:	
	 	 
	Date and place of incorporation:	1 November 2010, the PRC
	 	 
	Name of Company:	Nanjing Youyingjie Comtech Communication
	 	Technology Company Limited
	 	 
	Registered number:	320102000202878
	 	 
	Registered office:	
	 	
	 	 
	Date and place of incorporation:	12 
	November 2010, the PRC	 
	 	 
	Name of Company:	Hangzhou Mega Sky Communication
	 	Technology Company Limited
	 	 
	Registered number:	Deregistered ()
	 	 
	Registered office:	 
	 	 
	Date and place of incorporation:	9 November 2010, the PRC
	 	 
	Name of Company:	Beijing JJT Limited
	 	 
	Registered number:	110105010833773
	 	 
	Registered office:	
	 	
	Date and place of incorporation:	28 February 2008, the PRC

 

    	35

    	 

    

 

Schedule 2

 

Completion Obligations

 

		1.	Deliverables

 

1.1                       On Completion, the Seller shall deliver or make
available to the Purchaser the following:

 

		(A)	the original executed instruments of transfer in respect of (i) the Comtech China Sale Share,
                                                                 (ii) the Comtech HK Sale Share, and (iii) the Alphalink Sale Share, all duly executed by Cogo in favour of the Purchaser (or
                                                                 such person(s) as the Purchaser may direct);

 

		(B)	the original share certificates in respect of (i) the Comtech China Sale Share issued under
                                                                 the common seal of Comtech China, (ii) the Comtech HK Sale Share issued under the common seal of Comtech HK, and (iii) the
                                                                 Alphalink Sale Share issued under the common seal of Alphalink, all in the name of Cogo;

 

		(C)	a certified true copy of the resolutions in writing or minutes of the meetings of the
                                                                 directors (and/or shareholder(s)) of the Seller duly passed in the Agreed Form approving and authorising the execution
                                                                 and delivery by the Seller of, and the performance of its undertakings, obligations and covenants under, this Agreement and
                                                                 all documents incidental hereto, and the transactions contemplated therein and herein;

 

		(D)	a certified true copy of the resolutions in writing or minutes of the meetings of the
                                                                 directors of Cogo duly passed in the Agreed Form approving, and the performance of Cogo’s obligations and covenants
                                                                 under, this Agreement and all documents incidental hereto, and the transactions contemplated therein and herein;

 

		(E)	the certified true copy of the resolutions in writing or minutes of the meetings of the
                                                                 directors (and/or shareholder(s)) of each of the Target Group Companies (if applicable) approving the matters set out
                                                                 in paragraph 2.1 of this Schedule;

 

		(F)	the original Corporate Documents of each Target Group Company which are in the possession of the
Seller and/or Cogo;

 

		(G)	(if required by the Purchaser) letters of resignation in Agreed Form of such existing
                                                                 directors and secretary of the Target Group Companies (including the legal representative, directors, supervisors,
                                                                 general manager, etc. of the companies established in the PRC) as the Purchaser may notify in writing prior to Completion,
                                                                 stating that the writer has no claim, demand, litigation or proceedings whatsoever whether present or future against the
                                                                 relevant Target Group Company in respect of disbursements, compensation for loss of office, unpaid fees or otherwise
                                                                 howsoever;

 

    	36

    	 

    

 

		(H)	documentary
evidence (including written confirmation from each Outgoing Employee stating that the writer has no claim, demand, litigation
or proceedings whatsoever whether present or future against the relevant Target Group Company in respect of disbursements, compensation
for termination of employment, unpaid fees or otherwise howsoever) satisfactory to the Purchaser which substantiates the termination
of the employment of the Outgoing Employees;

 

		(I)	the original duly executed certificate by an officer of the Seller in Agreed Form confirming that
(a) all the Seller’s Warranties are true, accurate and not misleading in all material respects as of the date of this Agreement
and remain true, accurate and not misleading in all material respects at the Completion Date, (b) unless waived, none of the obligations,
covenants and undertakings of the Seller under this Agreement has been breached, and (c) the consummation of the transaction contemplated
hereunder by the Seller has been approved, or consented to from the relevant Governmental Entity where necessary, and has not been
restrained, enjoined or otherwise prohibited by any Applicable Law, including any order, injunction, decree or judgments of any
court or other Governmental Entity; and

 

		(J)	a copy of the Management Accounts.

 

		1.2	On Completion, subject to paragraphs 1.1 and 2.1 of this
Schedule being satisfied, the Purchaser shall:

 

		(A)	deliver a certified copy of the resolutions in writing or minutes of the meetings of the directors
of the Purchaser approving and authorising the execution and completion of this Agreement and all documents incidental hereto;
conform to (C) in 1.1

 

		(B)	satisfy Instalment No.1 of the Purchase Consideration in accordance with Clause 3 of this Agreement;
and

 

		(C)	deliver the Share Charge duly executed by the Purchaser together with all the relevant deliverables
as specified in the Share Charge.

 

		(D)	the original duly executed certificate by an officer of the Purchaser in Agreed Form confirming
that (a) all the Purchaser’s Warranties are true, accurate and not misleading in all material respects as of the date of
this Agreement and remain true, accurate and not misleading in all material respects at the Completion Date, (b) unless waived,
none of the obligations, covenants and undertakings of the Purchaser under this Agreement has been breached, and (c) the consummation
of the transaction contemplated hereunder by the Purchaser has been approved, or consented to from the relevant Governmental Entity
where necessary, and has not been restrained, enjoined or otherwise prohibited by any Applicable Law, including any order, injunction,
decree or judgments of any court or other Governmental Entity.

 

    	37

    	 

    

 

		2.	Further Obligations

 

		2.1	On or prior to the Completion, the Seller shall do the
following:

 

		(A)	in respect of Comtech China, procure that resolutions
of the directors of Comtech China are passed:

 

		(i)	approving the transfer of the Comtech China Sale Share and the acceptance of the instrument
                                                              of transfer and registration of the Purchaser (or such other person as it may nominate) as the holder of the Comtech China
                                                              Sale Share in the register of members of Comtech China with effect from Completion, cancel the existing share certificate
                                                              issued in the name of Cogo and issue new share certificate in the name of the Purchaser (or such other person as it may
                                                              nominate) and to record the name of the Purchaser (or such other person as it may nominate) in the register of members of
                                                              Comtech China as the registered holder of the Comtech China Sale Share;

 

		(ii)	(if required by the Purchaser) approving the appointment of each of the persons nominated by
                                                               the Purchaser as director or secretary, such appointments to take effect at Completion (subject to the Applicable Law) and
                                                               resignation of all existing directors and/or secretary and the making of all necessary filings with the applicable
                                                               Governmental Entity in relation to the change and/or appointment of directors, and secretary; and

 

		(iii)	(if required by the Purchaser) resolving that all existing instructions to banks and the giving
of new instructions to such banks in such form as the Purchaser shall direct are approved.

 

	

	(B)	in respect of Comtech HK, procure that resolutions of
the directors of Comtech HK are passed:

 

		(i)	approving the transfer of the Comtech HK Sale Share and the acceptance of the instrument of
                                                              transfer and registration of the Purchaser (or such other person as it may nominate) as the holder of the Comtech HK Sale
                                                              Share in the register of members of Comtech HK with effect from Completion, cancel the existing share certificate issued in
                                                              the name of Cogo and issue new share certificate in the name of the Purchaser (or such other person as it may nominate) and
                                                              to record the name of the Purchaser (or such other person as it may nominate) in the register of members of Comtech HK as
                                                              the registered holder of the Comtech HK Sale Share;

 

		(ii)	(if required by the Purchaser) approving the appointment of each of the persons nominated by
                                                               the Purchaser as director or secretary, such appointments to take effect at Completion (subject to the Applicable Law) and
                                                               resignation of all existing directors and/or secretary and the making of all necessary filings with the applicable
                                                               Governmental Entity in relation to the change and/or appointment of directors, and secretary; and

 

    	38

    	 

    

 

		(iii)	(if
required by the Purchaser) resolving that all existing instructions to banks and the giving of new instructions to such banks
in such form as the Purchaser shall direct are approved.

 

		(C)	in respect of Alphalink, procure that resolutions of the directors of Alphalink are passed:

 

		(i)	approving the transfer of the Alphalink Sale Share and the acceptance of the instrument of transfer
and registration of the Purchaser (or such other person as it may nominate) as the holder of the Alphalink Sale Share in the register
of members of Alphalink with effect from Completion, cancel the existing share certificate issued in the name of Cogo and issue
new share certificate in the name of the Purchaser (or such other person as it may nominate) and to record the name of the Purchaser
(or such other person as it may nominate) in the register of members of Alphalink as the registered holder of the Alphalink Sale
Share;

 

		(ii)	(if required by the Purchaser) approving the appointment of each of the persons nominated by the
Purchaser as director or secretary, such appointments to take effect at Completion (subject to the Applicable Law) and resignation
of all existing directors and/or secretary and the making of all necessary filings with the applicable Governmental Entity in relation
to the change and/or appointment of directors, and secretary; and

 

		(iii)	(if required by the Purchaser) resolving that all existing instructions to banks and the giving
of new instructions to such banks in such form as the Purchaser shall direct are approved.

 

		(D)	in respect of each of the Target Group Companies (other than Comtech China, Comtech HK and Alpalink),
procure that resolutions of the directors (and shareholder(s), if necessary) are passed:

 

		(i)	(if required by the Purchaser) approving the appointment of each of the persons nominated by the
Purchaser as director, secretary and legal representative (as the case may be), such appointments to take effect at Completion
(subject to the Applicable Law) and resignation of such existing directors, secretary and legal representative as the Purchaser
may notify in writing before Completion and the making of all necessary filings with the applicable Governmental Entity in relation
to the change and/or appointment of directors, secretary and legal representative; and

 

		(ii)	(if required by the Purchaser) revoking all existing instructions to banks and adopting such new
instructions to such banks in such form as the Purchaser shall direct.

 

    	39

    	 

    

 

Schedule 3

 

Seller’s Warranties given under
Clause 9.1

 

		1.	Warranties on the Sale Shares and Comtech China, Comtech
HK and Alpalink

 

		1.1	Corporate Matters

 

		(A)	All of the details of each of Comtech China, Comtech HK and Alpalink shown in Schedule 1 are true,
accurate and complete.

 

		(i)	Comtech China is a holding company whose sole purpose is to own, among other things, the entire
equity interest of each of Comtech Communication SZ and Comtech Software SZ, and does not conduct any business operations in its
own name.

 

		(ii)	Comtech HK is a holding company whose sole purpose is to own the entire issued share capital of
each of Comtech International HK and HK JJT, and does not conduct any business operations in its own name.

 

		(iii)	Alpalink is a holding company whose sole purpose is to own the entire equity interest of Epcot
Multimedia SZ, and does not conduct any business operations in its own name.

 

		(iv)	Each of Comtech China, Comtech HK and Alpalink is validly existing and is a company duly incorporated
under the laws of the jurisdiction in which it is incorporated, and has all requisite corporate powers and authority to own property
and carry on its business as presently conducted.

 

		1.2	Constitutional Documents, corporate registers and minute
books

 

		(A)	The registers, minute books, books of account and other records of whatsoever kind of each of Comtech
China, Comtech HK and Alpalink which are required to be maintained under Applicable Law:

 

		(i)	are up-to-date;

 

		(ii)	are maintained in accordance with Applicable Law on a proper and consistent basis; and

 

		(iii)	contain complete and accurate records of all matters required to be dealt with in such registers,
books and records.

 

		(B)	All
accounts, documents, returns and filings required by law to be delivered or made by each of Comtech China, Comtech HK and Alpalink
to any Governmental Entity (including, but not limited to, any Taxation Authority) have been duly and correctly delivered or made
within the time limits (if any) prescribed by any Applicable Law and there has never been any penalty, surcharge, late fee, fine
or interest imposed by any Governmental Entity in respect of any accounts, documents, returns or filings that were not
supplied to such Governmental Entity within such prescribed time limit.

 

    	40

    	 

    

 

		(C)	There are no breaches by each of Comtech China, Comtech HK and Alpalink of its respective constitutional
documents (whether as a result of entering into or performing this Agreement or otherwise).

 

		(D)	The register of members of each of Comtech China, Comtech HK and Alpalink contains complete and
accurate records of its members from time to time and all issues and transfers of shares in the capital of each of Comtech China,
Comtech HK and Alpalink have been registered in accordance with the respective constitutional documents of each of Comtech China,
Comtech HK and Alpalink from time to time in force, all such transfers being duly stamped or certified as to nil stamp duty payable
prior to registration.

 

		2.	Seller and Cogo

 

2.1 Authority

 

		(A)	The Seller has the legal right and full power and authority to enter into and perform this Agreement
and any other documents to be executed by it pursuant to or in connection with this Agreement.

 

		(B)	Cogo has the legal right and full power and authority to perform this Agreement and any other documents
to be executed by it pursuant to or in connection with this Agreement.

 

2.2 Validity

 

The documents referred to in
paragraph 2.1 will, when executed, constitute valid and binding obligations on the Seller, in accordance with their respective
terms.

 

		2.3	Constitutional documents

 

		(A)	The execution and delivery, and the performance by the Seller of its obligations under this Agreement
and the documents relating to the matters contemplated herein, will not result in a breach of any provision of the constitutional
documents of the Seller or its subsidiaries.

 

		(B)	The performance of this Agreement and the documents relating to the matters contemplated herein,
will not result in a breach of any provision of the constitutional documents of Cogo or its subsidiaries.

 

2.4 Non-compliance

 

The execution and delivery, and
the performance by the Seller of its obligations under (as the case may be) this Agreement and the documents relating to the matters
contemplated herein, will not:

 

		(A)	result in a breach of, or constitute a default under, any
instrument to which the Seller, or Cogo is a party or by which the Seller or Cogo is bound and which is material in the context
of the transaction contemplated by this Agreement;

 

    	41

    	 

    

 

		(B)	result
in a breach of any order, judgments or decree of any court or governmental agency to which the Seller or Cogo is a party or by
which the Seller or Cogo is bound and which is material in the context of the transaction contemplated by this Agreement; or

 

		(C)	require the Seller or Cogo to obtain any consent or approval of, or give any notice to or make
any registration with, any Governmental Entity or other authority which has not been obtained or made at the date of this Agreement.

 

		2.5	Corporate Action

 

Each of the Seller and Cogo has
taken or will have taken by Completion all corporate action required by it to authorise it to enter into (if applicable) and to
perform this Agreement and any other documents to be executed by it pursuant to or in connection with this Agreement.

 

		2.6	Title over and of Cogo

 

		(A)	The Seller is the sole legal and beneficial owner of the entire issued share capital of Cogo.

 

		(B)	Cogo is the sole legal and beneficial owner of the Sale Shares and has the right to exercise all
voting and other rights over the Sale Shares.

 

		2.7	Validly issued Shares

 

		(A)	The Comtech China Sale Share comprises the entire issued share capital of the Comtech China, have
been properly and validly issued and allotted and has been fully paid.

 

		(B)	The Comtech HK Sale Share comprises the entire issued share capital of the Comtech HK, have been
properly and validly issued and allotted and has been fully paid.

 

		(C)	The Alphalink Sale Share comprises the entire issued share capital of Alpalink, have been properly
and validly issued and allotted and has been fully paid.

 

2.8 Encumbrance

 

There is no Encumbrance on, over
or affecting the Sale Shares, and there is no commitment to give or create any and no claim has been made by any person to be entitled
to any.

 

2.9 Consents

 

All consents for the transfer
of the Sale Shares have been obtained or will be obtained by Completion.

 

    	42

    	 

    

 

		3.	Warranties on the
                                                                            Target Group Companies

 

		3.1	Corporate Matters

 

		(A)	All of the details of the Target Group Companies shown in Schedule 1 are true, accurate and complete.

 

		(B)	Each of the Target Group Companies has been duly incorporated or established and is validly existing
under the Applicable Law, has obtained all necessary approvals from the relevant Governmental Entity to own its assets and to lawfully
conduct and operate its business as presently conducted and all such approvals are valid and subsisting and, to the knowledge of
the Seller, there is no reason why any of them should be suspended, cancelled or revoked.

 

		(C)	To the knowledge of the Seller, no event or circumstance exists that may (with or without the giving
of notice or the lapse of time or both) (a) constitute or result, directly or indirectly, in a violation of or a failure to comply
with any term or condition of any such approvals from the relevant Governmental Entities or (b) result, directly or indirectly,
in the revocation, withdrawal, suspension, cancellation or termination or non-renewal of, or any modification to, any such approvals
from the relevant Governmental Entities.

 

		(D)	No order has been made or petition presented or resolution passed or meeting convened (or other
similar process) for the winding up or bankruptcy of any Target Group Company and no distress, execution or other process has been
levied on any of its assets. No Target Group Company is insolvent nor unable to pay its debts due for payment, no receiver or manager
or liquidation committee or liquidator or similar committee or official has been appointed by any person of its business or material
assets or any substantial part thereof, and no power to make any such appointment has arisen. No Target Group Company has taken
steps to enter liquidation and there are no valid grounds on which a petition or application could be based for the winding up
or bankruptcy or appointment of a receiver or manager or liquidation committee or liquidator or similar committee or official of
any Target Group Company.

 

		(E)	All issued shares or equity interest (as the case may be) in the capital of each Target Group Company
have been fully paid up.

 

		(F)	There is no declaration, setting aside or payment or other distribution in respect of any Target
Group Company’s capital, or any direct or indirect redemption, purchase or other acquisition of any of such capital by such
Target Group Company, other than as provided in this Agreement.

 

		(G)	The register of members, the register of directors and all other statutory books of each of the
Target Group Companies are up to date and contain true, full and accurate records of all matters required to be dealt with therein
and none of the Target Group Companies has received any notice of any application or intended application for rectification of
its register.

 

    	43

    	 

    

 

		3.2	Compliance

 

		(A)	Each of the Target Group Companies has complied with its constitutional documents in all material
respects, and has full power, authority and legal right to own its assets and carry on its business.

 

		(B)	Each Target Group Company has complied in all material respects with all Applicable Law. None of
the Target Group Companies has received notice of any violation of any Applicable Law which is still outstanding from any Governmental
Entity.

 

		(C)	The approvals from the relevant Governmental Entities obtained by the Target Group Companies collectively
constitute all of the material approvals necessary or desirable for the Target Group Companies to lawfully conduct and operate
its respective business, and are valid and in full force and effect. All terms and conditions applicable to such approvals have
been and are being fully complied with by each of the Target Group Companies in all material respects.

 

3.3 Accounts

 

		(A)	The Management Accounts have been prepared in accordance with all due care, and the cumulative
profits assets and liabilities of the Target Group stated in the Management Accounts have not been materially misstated. The accounting
and other records of the Target Group have been fully, properly and accurately kept and completed, and such records show a true
and fair view of the Target Group’s trading transactions and its financial, contractual and trading position.

 

		(B)	The Management Accounts show a true and fair view of the assets, liabilities, capital commitments
and the state of affairs of Target Group as at the Management Accounts Date or of the profits and losses of Target Group for the
period concerned.

 

		(C)	Since the Management Accounts Date:

 

		(i)	no Target Group Company has disposed of any asset (including trading stock) or supplied any service
or business facility of any kind (including a loan of money or the letting, hiring or licensing of any property whether tangible
or intangible) in circumstances where the consideration actually received or receivable for such disposal or supply was less than
the consideration which would be deemed to have been received for Tax purposes;

 

		(ii)	no Target Group Company has assumed or incurred any liabilities (actual or contingent) or expenditure
otherwise than in the ordinary and usual course of carrying on its business or entered into any transaction which is not in its
ordinary and usual course of business;

 

    	44

    	 

    

 

		(iii)	no
business of any Target Group Company has been materially and adversely affected by the loss of any important contract or customer
or source of supply or by any abnormal factor not affecting similar businesses to a like extent and the Seller is not aware
of any facts which are likely to give rise to any such effects; and

 

		(iv)	no dividends, bonuses or distributions have been declared, paid or made by any Target Group Company.

 

		3.4	Taxation

 

		(A)	Each of the Target Group Companies has duly and punctually paid all Taxation which is due and which
it has become liable to pay and is under no outstanding liability to pay any penalty, interest, surcharge or fine in connection
with any Taxation and has complied in all respects with all legislation relating to Taxation applicable to such company.

 

		(B)	None of the Group Companies is involved in any dispute in relation to Taxation. To the best of
the knowledge of the Seller, there is no relevant Governmental Entity concerned which has investigated or indicated that it intends
to investigate the Tax affairs of any Group Company.

 

		3.5	Consequence of the acquisition

 

The entry into of this Agreement and the other Transaction
Documents does not, and the performance and compliance with the terms of this Agreement and the other Transaction Documents will
not:

 

		(A)	cause any member of the Target Group to lose the benefit of any Authorisations in relation to the
Target Group or relieve any person of any obligation to the Target Group (whether contractual or otherwise) or enable any person
to determine any such obligation or any contractual right or benefit now enjoyed by the Target Group or to exercise any other material
right whether under an agreement or otherwise in relation to the Target Group;

 

		(B)	result in any present or future indebtedness of the any member of the Target Group becoming due
or capable of being declared due and payable prior to its stated maturity;

 

		(C)	give rise to or use to become exercisable any option or right of pre-emption including any right
of pre-emption under a joint venture or related agreement to which any member of the Target Group is a party;

 

		(D)	result in a breach of, or constitute a default under any order, judgment or decree of any regulatory
authority by which any member of the Target Group or any assets of the Target Business is bound or subject;

 

		(E)	result in a breach of, or constitute a default under the terms, conditions or provisions of any
agreement, understanding, arrangement or the instrument including, but not limited to, any contracts of any member of the Target
Group (which contracts include any joint venture or related agreements to which any member of the Target Group is a party);

 

		(F)	entitle a third party to terminate any agreement to which any member of the Target Group is a party
and material to the Target Business.

 

    	45

    	 

    

 

		4.	Assets

 

		4.1	Title

 

		(A)	All assets currently employed in the operation of the businesses of each Target Group Company (other
than trading stock which is intended to be subsequently disposed of in the ordinary course of business or trading stock acquired
subject to retention or reservation of title by the supplier or manufacturer thereof) and all material assets (save and except
for the trading stock) used by the Target Group:

 

		(i)	are legally and beneficially owned by the Target Group free from all Encumbrances; and

 

		(ii)	are in the exclusive possession or under the exclusive control of the Target Group.

 

		(B)	There are no material assets shared with any other entity other than any Target Group Company which
are used in connection with the business of such Target Group Company.

 

		4.2	General Commercial Matters

 

		(A)	There are no loans, guarantees, pledges, mortgages, charges, liens, debentures or other Encumbrances
given, made or incurred by or on behalf of any Target Group Company which may incur material liability to any Target Group Company,
except for those incurred in its ordinary and usual course of business.

 

		(B)	To the best of the knowledge of the Seller, none of the Target Group Companies is the subject of
any official investigation or inquiry by any Governmental Entity.

 

		4.3	Intellectual Property

 

All material Intellectual Property
used in the respective business of the Target Group Companies:

 

		(A)	is owned by each of the Target Group Companies as the sole legal and beneficial owner, free of
any license or Encumbrance in favour of a third party; or

 

		(B)	is used by the Target Group in accordance with the terms of a current license from the owner of
that Intellectual Property.

 

4.4 Insurance

 

All the assets of the Target
Group of an insurable nature have at all material times been and are insured in amounts to the full replacement value thereof against
fire and other risks normally insured against by persons carrying on substantially the same classes of business as those carried
on by the Target Group, and as required by Applicable Law.

 

    	46

    	 

    

 

		4.5	Litigation

 

		(A)	There are no actions, suits or proceedings (including arbitration proceedings) pending or threatened
against or brought by any Target Group Company.

 

		(B)	None of the Target Group Companies is subject to or, in default with respect to, any order, writ,
injunction or decrees of any court, tribunal or Governmental Entity, domestic or foreign.

 

		(C)	There is no unsatisfied judgment, court order or tribunal or arbitral award outstanding against
any Target Group Company and no distress, execution or process has been levied on any part of their respective business or assets.

 

4.6 Employees

 

		(A)	Each Target Group Company has complied with all obligations in all respects imposed on it by, and
all orders and awards made under all Applicable Law relating to employment, employment practices, conditions of employment, equal
employment opportunity, non-discrimination, entitlements, immigration, wages, hours, benefits, labor relations, collective bargaining,
the payment of social security and similar Taxes and occupational safety and health.

 

		(B)	To the knowledge of the Seller, no Target Group Company is in breach of, or has taken any action
which would constitute a breach of, any contract in respect of employment of any of the employees. To the knowledge of the Seller,
no employee is in breach of, or has taken any action which would constitute a breach of, any contract in respect of employment
of any of the employees.

 

4.7 Environmental and Safety Laws

 

		(A)	No Target Group Company is in violation in any material respect of any applicable statute, law
or regulation relating to the environment or occupational health and safety (the “Environmental and Safety Laws”)
and, to the knowledge of the Seller, no material expenditures are or will be required in order for any Target Group Company to
comply with any such existing Environmental and Safety Laws.

 

		(B)	Each of the Target Group Companies has obtained all permits, licences and other authorisations
that are required under applicable Environmental and Safety Laws to conduct its business and has filed all reports, notices, assessments,
plans, inventories, and applications required by Environmental and Safety Laws.

 

    	47

    	 

    

 

Schedule 4

 

Purchaser’s Warranties given under
Clause 9.11

 

	1.	The Purchaser has the legal right and full power and authority to enter into and perform this Agreement
and any other documents to be executed by it pursuant to or in connection with this Agreement.

 

	2.	The execution and delivery, and the performance by the Purchaser of its obligations under this
Agreement and the documents relating to the matters contemplated herein (including without limitation the Share Charge), will not:

 

		(a)	result in a breach of any provision of the constitutional documents of the Purchaser;

 

		(b)	result in a breach of, or constitute a default under, any instrument to which the Purchaser is
a party or by which the Purchaser is bound and which is material in the context of the transaction contemplated by this Agreement;

 

		(c)	result in a breach of any order, judgment or decree of any court or governmental agency to which
the Purchaser is a party or by which the Purchaser is bound and which is material in the context of the transaction contemplated
by this Agreement; or

 

		(d)	require the Purchaser to obtain any consent or approval of, or give any notice to or make any registration
with any Governmental Entity or other authority which has not been obtained or made at the date of this Agreement.Exhibit 4.36

English Translation

 

 

 

 

 

Investment
Agreement

 

 

 

August 2, 2012

 

 

    	 

    	 	

    

 

	TABLE OF CONTENTS
	Article 1.	Reorganization	4
	 	 	 
	Article 2.	Form of Investment	6
	 	 	 
	Article 3.	Payment of consideration for the Investment	6
	 	 	 
	Article 4.	Closing conditions	9
	 	 	 
	Article 5.	Matters subsequent to the Closing and Completion Date for Closing Conditions, and formal Closing Date	12
	 	 	 
	Article 6.	Miscellaneous	13
	 	 	 
	Article 7.	Non-Competition Obligations	15
	 	 	 
	Article 8.	Supplement, Amendment to, Modification and Discharge of this Agreement	15
	 	 	 
	Article 9.	Liabilities for Breach of Contract	17
	 	 	 
	Article 10.	Force Majeure	17
	 	 	 
	Article 11.	Governing Law and Dispute Resolution	18
	 	 	 
	Article 12.	Notice and Delivery	18
	 	 	 
	Article 13.	Disclosure of Information	20
	 	 	 
	Article 14.	Bye-laws	21

 

    	 

    	 	

    
 

This Investment Agreement (“this
Agreement”) is made on August 2, 2012:

 

BY and AMONG:

 

Shanghai Yuanbo Education Information Consulting Corporation
Ltd. (“Yuanbo Education”)

Address: Room 2034, Block 1, No. 600 Meiyu Road, Nanxiang Town,
Jiading District, Shanghai

Legal Representative: Dong Xu

 

Zhejiang Fengming Chemical Fiber Co., Ltd. (“Fengming
Chemcial Fiber”)

Address: Fengming Commercial Building, Jinji Road, Zhouquan Town, Tongxiang

Legal Representative: Xinfang Yu

 

Sun, Daoyue 

ID Card Number: 350122197102071615

Address: Room 101, Unit A, Block 12, Hanbi
Cuiting, Huali Century Garden, Wutong Street, Tongxiang

 

Dong, Guoping

ID Card Number: 33042519790312001X

Address: Room 105, Dormitory of the Bureau
of Radio, Film and Television, Qingfeng South Road, Wutong Street, Tongxiang

 

Fei, Changlin

ID Card Number: 330425195708182910

Address: No. 21 Tan Bridge, Sanxin Village,
Wutong Street, Tongxiang

 

Fengming Chemical Fiber, Daoyue Sun, Guoping Dong and
Changlin Fei are collectively referred to as the “Original Shareholders”.

 

Tongxiang Fengming Fukang Cultural and Industrial Investment
Co., Ltd. (“Investment Company”)

Address: Intersection of Huancheng Road and National Highway
320, Wutong, Tongxiang

Legal Representative: Xinfang Yu

 

Daidaikang Enterprise Management and
Consulting Co., Ltd. (“Consulting Company”)

Address: 3/F., Club of Lvdu Jinyuan, Wutong
Street, Tongxiang

Legal Representative: Xinfang Yu

 

WHEREAS:

 

	Yuanbo Education is a limited liability company established on April 29, 2009 under
the Company Law of the People’s Republic of China (the “Company Law”) and the relevant laws and regulations,
with a registered capital of RMB23.9 million.

    	 

    	 	

    

 

	Consulting Company is a limited liability company established
on February 5, 2007 under the Company Law and the relevant laws and regulations, with a registered capital of RMB500,000;
Fengming Chemical Fiber, Daoyue Sun, Guoping Dong and Changlin Fei own an aggregate of 100% equity interest in Consulting
Company, of which Fengming Chemical Fiber owns 45%, Daoyue Sun owns 35% and each of Guoping Dong and Changlin Fei own 10%, respectively.
Consulting Company is directly interested in 100% of the capital contribution of Daidaikang Mickey Kindergarten (“Mickey
Kindergarten”), Daidaikang Nanhu New District Kindergarten (“Nanhu New District Kindergarten”) and
Daidaikang Nobel Kindergarten (“Nobel Kindergarten”). It is also directly interested in 35% of the capital
contribution of Daidaikang American English Kindergarten (“American English Kindergarten”).

 

	Investment Company is a limited liability company established
on July 8, 2005 under the Company Law and the relevant laws and regulations, with a registered capital of RMB3.61
million; Investment Company is directly interested in 65% of the capital contribution of American English Kindergarten.

 

	Guoping Dong is a natural person who has the capacity
for civil conducts and civil rights in China and is directly interested in 100% of the capital contribution of Daidaikang Lvdu
Early Learning Center (“Lvdu Early Learning Center”).

 

	The Original shareholders, Investment Company, and Guoping
Dong are, on a combined basis, directly and indirectly interested in 100% of the capital contribution of Mickey Kindergarten, Nanhu
New District Kindergarten, Nobel Kindergarten, American English Kindergarten and Lvdu Early Learning Center (hereinafter referred
to as the “Target Kindergartens and Centers”, please see Exhibit 1 for details), and intend
to reorganize such interest on terms and conditions set forth in this Agreement and any exhibits hereto. Upon completion of the
reorganization, the Original Shareholders will transfer all of their 100% shareholder interests in Consulting Company to
Yuanbo Education; Yuanbo Education intends to accept the transfer of such 100% shareholder interests in Consulting Company on the
terms and conditions set forth in this Agreement and any exhibits hereto (the “Investment”).

 

NOW, THEREFORE, the
parties hereto have, after friendly consultation, reached the following agreement in respect of the above matters based on the
principles of equality and mutual benefits, and in accordance with the Company Law, the Regulations for the Administration of Companies
Registration of the People’s Republic of China, the Private Education Law of the People’s Republic of China and other
relevant laws and regulations of the People’s Republic of China (the “PRC” or “China”).

 

Article
1.  Reorganization

 

		1.1	As one of the closing conditions set forth in Article 4 hereof, the Original Shareholders, Investment Company, Guoping Dong,
and Consulting Company shall immediately implement the reorganization specified in this Article (the “Reorganization”)
after the execution of this Agreement.

 

    	 

    	 	

    
 

		1.2	Content of the Reorganization

 

		(1)	Investment Company will transfer its interest in 65% of the capital contribution of American English Kindergarten to Consulting
Company. Upon completion of the transfer, Consulting Company will be interested in 100% of the capital contribution of American
English Kindergarten whereas Investment Company will be interested in 0% of the capital contribution of American English Kindergarten.

 

		(2)	Guoping Dong will transfer his interest in 100% of the capital contribution of Lvdu Early Learning Center to Consulting Company.
Upon completion of the transfer, Consulting Company will be interested in 100% of the capital contribution of Lvdu Early Learning
Center whereas Guoping Dong will be interested in 0% of the capital contribution of Lvdu Early Learning Center.

 

		(3)	The ratios of equity interests held by Consulting Company, Investment Company, and Guoping Dong, respectively, in the Target
Kindergartens and Centers prior to or after the Reorganization are listed in the table below:

 

	Name of the Target

Kindergartens and

Centers	Name of 

Shareholders	Equity Ratio Prior to 

the Reorganization	Equity Ratio After 

the Reorganization
	Mickey Kindergarten	Consulting Company	100%	100%
	Nanhu New District

Kindergarten	Consulting Company	100%	100%
	Nobel Kindergarten	Consulting Company	100%	100%
	American English

Kindergarten	Consulting Company	35%	100%
	Investment Company	65%	0%
	Lvdu Early

Learning Center	Consulting Company	0%	100%
	Guoping Dong	100%	0%

  

		1.3	Requirements of the Reorganization

 

		(1)	The Reorganization shall fully comply with the laws and regulations of the country in which the Reorganization takes place
in all material respects.

 

		(2)	Each item under the content of the Reorganization as specified in Article 1.2 above may be implemented concurrently to the
extent that there is no conflict with the chronological order of each other.

 

		(3)	The Original Shareholders, Investment Company, Guoping Dong, and Investment Company shall complete all items under the content
of the Reorganization as specified in Article 1.2 above by August 15, 2012.

 

    	 

    	 	

    
 

Article
2.  Form of Investment

 

		2.1	For the purpose of this Agreement, the parties hereto agree to make the Investment by way of acquisition described below and
pursuant to the terms and conditions set forth in this Agreement and any exhibits hereto.

 

		2.2	Acquisition

 

		(1)	Yuanbo Education will sign an equity transfer agreement (the “Equity Transfer Agreement”, please see Exhibit
3) with the Original Shareholders to accept the transfer of 100% equity interest of Consulting Company from them (the
“Onshore Acquisition”).

 

		(2)	The ratios of equity interests held by Yuanbo Education and the Original Shareholders, respectively, in Consulting Company
prior to and after the completion of the Onshore Acquisition are listed in the table below:

 

	 	Name of 

Shareholders	Equity Ratio Prior to 

the Acquisition	Equity Ratio After 

the Acquisition
	 	 	 	 
	
         

         

        Consulting

Company

         
	Yuanbo Education	0%	100%
	Fengming Chemical 

Fiber	45%	0%
	Daoyue Sun	35%	0%
	Guoping Dong	10%	0%
	Changlin Fei	10%	0%

  

Article
 3.  Payment of consideration for the Investment

 

		3.1	The parties hereto agree that Yuanbo Education shall pay to the Original Shareholders a consideration, the total amount of
which shall be equivalent to RMB14.5 million (the “Investment Consideration”, which will be calculated
and determined on the basis of the valuation of the Target Kindergartens and Centers. Please refer to Exhibit 1
for the valuation of each of the Target Kindergartens and Centers), in respect of the Investment pursuant to the requirements of
this Agreement and any exhibits hereto. The Investment Consideration shall be shared by the Original Shareholders according to
their respective equity ratio.

 

		3.2	Acquisition Price

 

			The acquisition price shall be RMB
                                                                                          14.5 million (the “Acquisition
                                                                                          Price”), which will be paid
                                                                                          by installments by Yuanbo Education
                                                                                          into the account designated by the Original
                                                                                          Shareholders for receipt of payment
                                                                                          according to the following requirements,
                                                                                          and the proof of payment in relation
                                                                                          thereto shall be provided to the Original
                                                                                          Shareholders:

 

    	 

    	 	

    
 

		(1)	The first installment of the Acquisition Price shall be RMB1.45 million, which will, within five working days from the
execution of this Agreement, be paid by Yuanbo Education to the Original Shareholders of Consulting Company according to their
respective equity ratios after the completion of the Reorganization.

 

		(2)	The second installment of the Acquisition Price shall be RMB7.385 million, which will, within five working days after
the Completion Date for Closing Conditions (as defined in Article 5.1 hereof), be paid by Yuanbo Education to the Original Shareholders
of Consulting Company according to their respective equity ratios after the completion of the Reorganization.

 

		(3)	The third installment of the Acquisition Price shall be RMB3.165 million, which will, within five working days after
the Formal Closing Date as agreed upon by the parties hereto (as defined in Article 5.1 hereof), be paid by Yuanbo Education to
the Original Shareholders of the Consulting Company according to their respective equity ratios after the completion of the Reorganization.

 

		(4)	The fourth installment of the Acquisition Price shall be RMB2.5 million. After an adjustment is made pursuant to the
valuation adjustment clause in Article 3.3 hereof, the fourth installment will, within ten working days from the expiration of
the Valuation Adjustment Period stipulated herein (as defined in Article 3.3 hereof) and the issue of an audit report, be paid
by Yuanbo Education to the Original Shareholders of Consulting Company according to their respective equity ratios after the completion
of the Reorganization.

 

		3.3	The fourth installment of the Acquisition Price, which amounts to RMB2.5 million, will be adjusted in the following manner
and subject to any change of the financial indicator (net profit after tax or NPAT) of the Target Kindergartens and Centers (excluding
Nobel Kindergarten) for 10 months during the period from September 1, 2012 to June 30, 2013 (the “Valuation Adjustment
Period”):

 

		(1)	Based on NPAT of the Target Kindergartens and Centers (i.e. RMB1,083,333) for 10 months (which is calculated from NPAT of RMB1.3
million for the period (of 12 months) from August 1, 2011 to July 31, 2012), if the annual increase of NPAT of the Target Kindergartens
and Centers (excluding Nobel Kindergarten) (the “Annual Increase of NPAT”, which shall be calculated under the
PRC accounting standards and must be audited and confirmed by the accounting firm appointed by Yuanbo Education that has the qualification
to conduct audits for listing purposes) during the Valuation Adjustment Period is less than 25% (including this figure) or RMB1,354,166,
the fourth installment of the Acquisition Price (i.e. RMB2.5 million) shall be deducted in full and Yuanbo Education shall be under
no obligation to make any payment;

 

    	 

    	 	

    
 

		(2)	If the Annual Increase of NPAT during the Valuation Adjustment Period ranges from 25% to 40% (both figures exclusive) or RMB1,354,166
to RMB1,516,666, the actual amount payable of the fourth installment of the Acquisition Price = RMB2.5 million x (the Annual Increase
of NPAT during the Valuation Adjustment Period – 25%) ÷ 15%, will be paid by Yuanbo Education to the Original Shareholders
of Consulting Company according to their respective equity ratios after the completion of the Reorganization;

 

		(3)	If the Annual Increase of NPAT during the Valuation Adjustment Period equals to or exceeds 40% or RMB1,516,666, the fourth
installment of the Acquisition Price will be paid in full by Yuanbo Education to the Original Shareholders of the Consulting Company
according to their respective equity ratios after the completion of the Reorganization.

 

		3.4	Special Adjustment to the Investment Consideration

 

		(1)	If the number of the Target Kindergartens and Centers that have not completed the change of founders is more than two, Yuanbo
Education shall have the right to terminate this Agreement unilaterally and the Original Shareholders shall return to Yuanbo Education
any Investment Consideration paid by it pursuant to Article 8.4(2) hereof.

 

		(2)	If the number of the Target Kindergartens and Centers that have not completed the change of founders is less than two or if
such number is more than two but Yuanbo Education agrees to continue to perform this Agreement, the parties hereto agree that they
will make an adjustment to the scope of the Target Kindergartens and Centers as listed in Exhibit 1 accordingly and to pass on
such Target Kindergartens and Centers that have not completed the change of founders to Yuanbo Education for management through
the entrustment for management by the Original Shareholders so as to guarantee that all profits of such Target Kindergartens and
Centers will be booked to Yuanbo Education. The parties hereto also undertake that they will continue to perform their obligations
to change the founders without consideration in future after all factors that hinder the change of founders of the Target Kindergartens
and Centers are eliminated. For those Target Kindergartens and Centers which have not completed the change of founders and are
unable to be passed on to Yuanbo Education for management through the entrustment for management, the individual consideration
for any relevant Target Kindergarten or Center (please refer to Exhibit 1) shall be deducted from the Investment Consideration.
An adjustment shall be made to the Acquisition Price set forth in Articles 3.2 and 3.3 hereof accordingly.

 

			The Acquisition Price adjusted
in above manner shall remain to be settled in four installments. Yuanbo Education shall have the right to decide on its own to
adjust the amount of installments of the Acquisition Price. An adjustment shall be made to the equity transfer price set forth
in the Equity Transfer Agreement accordingly

 

    	 

    	 	

    
 

Article
4.  Closing conditions

 

		4.1	Unless waived by Yuanbo Education in writing, the performance by Yuanbo Education of its obligation to pay the Investment Consideration
(except for the obligation described in paragraph (1) of Article 3.2 hereof) is subject to the fulfillment of the closing conditions
as listed below:

 

		(1)	the Original Shareholders, Investment Company and Guoping Dong should have transferred to outside parties or deregistered any
other kindergartens or centers over or in which they have a direct or indirect control and interest (other than the Target Kindergartens
and Centers), or other companies or organizations whose business is in competition with any principal business of the Target Kindergartens
and Centers;

 

		(2)	there should be no law or regulation, nor judgment, ruling, decision or order of any court or the
relevant government departments that restricts, prohibits or rescinds the equity transfer or change of founders of the Target Kindergartens
and Centers; nor should there be any litigation, arbitration, judgment, ruling, decision or order that is pending or reasonably
expected to be likely to occur, which has or would have an adverse effect on the Original Shareholders, Yuanbo Education, or the
equity transfer and change of founders of the Target Kindergartens and Centers;

 

		(3)	the Original Shareholders and Yuanbo Education should successfully complete the execution of the
Equity Transfer Agreement, and any other documents required to be signed for the Acquisition;

 

		(4)	Consulting Company should be the investor and founder recorded in the latest articles of association
of the Target Kindergartens and Centers, and such record should be consistent with the relevant information set forth in the Permit
for Operation of Schools and the Registration Certificate of Private Non-Enterprise Entities (Legal Person) of all early
childhood educational institutions; if any circumstance set forth in Article 3.4 hereof occurs and some of the Target Kindergartens
and Centers fail to change their founders, the Original Shareholders shall be under an obligation to arrange the Target Kindergartens
and Centers and their founders to sign the Agreement for Entrustment of Operation and Management with Yuanbo Education,
pursuant to which the operation and management of such Target Kindergartens and Centers will be fully entrusted to Yuanbo Education,
and such entrustment will be fully performed pursuant to Article 3.4 hereof;

 

		(5)	the Original Shareholders should have provided Yuanbo Education with a business plan and financial
budget of Consulting Company and the Target Kindergartens and Centers for 12 months after the closing, and should have obtained
an approval from Yuanbo Education;

 

		(6)	the substantial debts and liabilities of the Target Kindergartens and Centers should have been properly dealt with, and all
funds that shall belong to the personal fund account of the Target Kindergartens and Centers should have been transferred to their
public account;

 

    	 

    	 	

    
 

		(7)	Yuanbo Education should have completed the due diligence on the business, legal and financial affairs
of Consulting Company and the Target Kindergartens and Centers, and should have done so to the satisfaction of Yuanbo Education
Holdings;

 

		(8)	Consulting Company should have entered into the Labor Contract, Non-Competition Agreement
and Enterprise Confidentiality Contract, the contents of which are the same as those listed in Exhibit 5,
and any similar agreement as recognized by Yuanbo Education with the key personnel of the Target Kindergartens and Centers as listed
in Exhibit 1, and such key personnel should have issued to Yuanbo Education a letter of undertaking,
which shall include the following undertakings: a) unless his/her resignation has been approved by Yuanbo Education or a separate
arrangement is made by Yuanbo Education, he/she shall continue to seek profits for the Target Kindergartens and Centers within
three years after the completion of change of registration with the department in charge of industrial and commercial administration.
In particular, Mr. Jianyu Wu, the original chief headmaster of kindergartens, shall continue to seek profits for the Target Kindergartens
and Centers within eight years after the completion of change of registration with the department in charge of industrial and commercial
administration; b) unless with the written approval of Yuanbo Education, he/she shall not engage in any business that is in competition
with Yuanbo Education within two years after his/her departure from the Target Kindergartens and Centers;

 

		(9)	the Target Kindergartens and Centers should sign labor contracts directly with their teachers and other employees, the content
and form of which shall meet the relevant requirements of the PRC laws and regulations;

 

		(10)	from the date of this Agreement (including the execution date) to the Completion Date for Closing
Conditions, all representations and warranties made by the Original Shareholders, Consulting Company, Investment Company and Guoping
Dong in Exhibit 4 should continue to be true, complete and accurate, and they should perform the representations
and warranties stipulated in Exhibit 4, and should not act in breach of Exhibit 4;

 

		(11)	from the date of this Agreement (including the execution date) to the Completion Date for Closing
Conditions, there should be or should have been no event, fact, condition, change or other circumstance which has had or is reasonably
expected to be likely to have a material adverse effect on Consulting Company and the Target Kindergartens and Centers;

 

    	 

    	 	

    
 

		(12)	from the date of this Agreement (including the execution date) to the Completion Date for Closing Conditions, there should
have been no material adverse change in the assets structure and condition of Consulting Company and the Target Kindergartens and
Centers;

 

		(13)	prior to the Completion Date for Closing Conditions (including the Completion Date for Closing Conditions), the Original Shareholders
and Consulting Company should have fully performed and complied with the conditions, obligations and undertakings that shall become
effective prior to or on the Completion Date for Closing Conditions as stipulated herein, respectively;

 

		(14)	the Target Kindergartens and Centers should have the Permit for Operation of Schools that is currently valid and also
shows that its 2011 annual inspection was approved by the department in charge of education;

 

		(15)	the Target Kindergartens and Centers should have the Registration Certificate of Private Non-Enterprise Entities (Legal
Person) that is currently valid and also shows that its 2011 annual inspection was approved by the department in charge of
civil affairs;

 

		(16)	the Target Kindergartens and Centers should have in place the valid Permit for Fee Charge or/and Fee Schedule for
Filing;

 

		(17)	the phrase “Investors request to get reasonable returns” should have been recorded in the articles of association
newly signed by the Target Kindergartens and Centers, as well as their Permit for Operation of Schools;

 

		(18)	the Target Kindergartens and Centers should directly sign the leasing agreements in relation to the properties leased by them
with the lessors that have ownership to such properties;

 

		(19)	American English Kindergarten should have completed the execution of its leasing agreements with the lessors that have ownership
to the relevant properties, and should ensure that the lease shall be for a term of 10 years and the rental payments for the first
five years of the lease and another five years thereafter shall be RMB200,000/year and RMB250,000, respectively;

 

		(20)	the Original Shareholders, Consulting Company, and the Target Kindergartens and Centers should have delivered all operation
and management of the Target Kindergartens and Centers, all of their businesses, as well as their common seals, financial information
(including without limitation, the capital verification report, balance sheet, income statement, and consolidated balance sheet
and income statement of the Target Kindergartens and Centers), legal information, files and documents, etc. to Yuanbo Education
in a manner that is satisfactory to it, and Yuanbo Education should have verified them as correct and accurate.

 

    	 

    	 	

    
 

		4.2	If the Original Shareholders fail to complete the closing conditions by September 1, 2012, Yuanbo Education shall be (but not
necessarily be) entitled to any rights described below: (a) issuing a letter to approve the extension of the period for the completion
of closing conditions; (b) waiving one or more of the closing conditions and also proposing any new closing conditions or modifying
the original closing conditions; or (c) terminating this Agreement and also demanding the Original Shareholders to refund to Yuanbo
Education any Investment Consideration paid by it pursuant to Article 8.4(2) hereof.

 

Article
5.  Matters subsequent to the Closing and Completion Date for
Closing Conditions, and formal Closing Date

 

		5.1	The parties hereto agree that the Completion Date for Closing Conditions shall be the date on which all the closing conditions
have been satisfied (subject to the completion of the last closing condition) or on the fifth working days after a waiver is obtained
from Yuanbo Education, and such date shall occur before September 1, 2012 (or such other date as otherwise determined by Yuanbo
Education). The confirmation of closing conditions will take place in Jiaxing, Zhejiang Province, on the Completion Date for Closing
Conditions. The parties hereto agree that the Original Shareholders shall assist Yuanbo Education in managing Consulting Company
and the Target Kindergartens and Centers as required by Yuanbo Education after the Completion Date for Closing Conditions, and
shall complete the formal closing on November 1, 2012 (the “Formal Closing Date”). The formal closing will take
place in Jiaxing, Zhejiang Province on the Formal Closing Date.

 

		5.2	On the Completion Date for Closing Conditions, the Original Shareholders shall:

 

		(1)	submit to Yuanbo Education all documentations certifying that all the closing conditions set forth in Article 4.1 above are
satisfied;

 

		(2)	deliver or take all other documents or actions as may be reasonably required by Yuanbo Education for completion of the equity
transfer.

 

		5.3	Matters Subsequent to the Completion Date for Closing Conditions

 

			Yuanbo Education shall pay to the
Original Shareholders the second installment of the Acquisition Price within fifth working days after the Completion Date for Closing
Conditions;

 

		5.4	Matters Subsequent to the Formal Closing Date

 

			Yuanbo Education shall pay to the
Original Shareholders the third installment of the Acquisition Price within fifth working days after the Formal Closing Date.

 

    	 

    	 	

    
 

Article
6.  Miscellaneous

 

		6.1	After the execution hereof and prior to the Completion Date for Closing Conditions, Yuanbo Education shall have the right to
supervise the operation, financial and legal affairs of Consulting Company and the Target Kindergartens and Centers, including
but not limited to inspecting and photocopying the relevant financial and legal information,
and requiring the person-in-charge to explain financial and legal issues, etc. The Original Shareholders shall also procure Consulting
Company and the Target Kindergartens and Centers to coordinate with Yuanbo Education to enable Yuanbo Education to exercise such
supervision right.

 

		6.2	The parties hereto agree that all debts and legal liabilities incurred by Consulting Company and the
Target Kindergartens and Centers prior to the Completion Date for Closing Conditions, or to be incurred in connection with any
act taken prior to the Completion Date for Closing Conditions shall be borne by the Original Shareholders; all debts or legal liabilities
borne by Consulting Company and the Target Kindergartens and Centers due to the above act shall be fully reimbursed by the Original
Shareholders to the party who undertakes them. If the rights and interests of Yuanbo Education hereunder are reduced as a result
of its undertaking of the above debts or legal liabilities, the Original Shareholders shall be liable for making additional compensation
to Yuanbo Education.

 

		6.3	The Original Shareholders shall guarantee the legality, validity and continuity of the leasing and occupation by the Target
Kindergartens of their properties. The Original Shareholders undertake that the lease term of all properties leased by the Target
Kindergartens shall be subject to the existing leasing contracts between the Target Kindergartens and owners of such properties.
Where there is any leasing contract that will be expired within ten years, the Target Kindergartens shall seek to renew it. In
particular, Lvdu Early Learning Center must complete the formalities in relation to the renewal of contract for the leasing of
premises by November 1, 2012, failing which it will be excluded from the Acquisition, and the consideration for Lvdu Early Learning
Center will be deducted from the total amount of the Investment Consideration; if the Target Kindergartens and Centers suffer any
loss in connection with any issue such as the ownership of leased properties, nature of the lands on which they are situated, fire
prevention facilities or absence of registration of the leases thereof, the Original Shareholders guarantee that they will bear
any loss suffered by investors arising therefrom but subject to the actual amount of such loss.

 

		6.4	The Original Shareholders and Consulting Company shall solely bear all taxes and expenses arising from the transactions contemplated
hereunder that shall be borne by them, respectively; the Original Shareholders and Consulting Company shall bear all risks and
liabilities in a tax audit and investigation or in any circumstance arising from any payment of taxes and expenses that shall be
borne by them, including without limitation, the administrative punishments and economic losses in relation thereto; if Yuanbo
Education suffers any loss in a tax audit and investigation or in any circumstance due to any payment of taxes and expenses that
shall be borne by the Original Shareholders, the Original Shareholders undertake to make compensation to Yuanbo Education for all
losses suffered by it arising therefrom, and pay such compensation to Yuanbo Education within five days after the occurrence of
such losses; if the Original Shareholders do not perform the aforesaid, Yuanbo Education shall have the right to deduct directly
from the interests to which the Original Shareholders is entitled under this Agreement and any exhibits hereto any equivalent amount
or interest as compensation.

 

    	 

    	 	

    
 

		6.5	The parties hereto agree that this Agreement will not be submitted to the competent government department for approval. The
parties hereto agree that unless any particular provision of this Agreement is expressly held by the relevant arbitration authority
or PRC court to be a prohibited or restricted provision in violation of laws and non-legally binding, the parties shall perform
all the provisions of this Agreement based on the principle of good faith, and shall not refuse to perform this Agreement or any
of its provisions under the pretext that this Agreement has not been approved and therefore is not legally binding. The parties
also agree that they have fully consulted their lawyers, fully understand, and agree the nature of this Agreement and enter into
this Agreement out of their own accord. Therefore, the parties shall not, in any event, make an application to any PRC government
department on a voluntary basis to request for the confirmation that this Agreement or any of its provisions is not legally binding.

 

		6.6	If this Agreement or any of its provisions cannot be performed due to the PRC laws and regulations or the permission of any
government department, the Original Shareholders undertake and agree that:

 

		(1)	such individual provision is not legally binding, and does not affect the legal binding
effect of this Agreement as a whole and its other provisions;

 

		(2)	if this Agreement or any particular provision is held by the relevant arbitration authority or court
to be non-legally binding, which would as a result have an adverse effect on Yuanbo Education, the Original Shareholders shall
not deny the economic benefits of Yuanbo Education under this pretext. They shall adopt any reasonable recommendation
put forward by Yuanbo Education Holdings and/or Yuanbo Education, carry out any other alternative proposal as permitted by laws,
and confer to Yuanbo Education the same or equivalent economic benefits and legal rights.

 

		6.7	If the closing is effected on the terms and conditions of this Agreement and any exhibits hereto, then the Completion Date
for Closing Conditions specified herein shall be the settlement date for transactions of Consulting Company and the Target Kindergartens
and Centers, and Yuanbo Education shall be entitled to all incomes generated by Consulting Company and the Target Kindergartens
and Centers from the Completion Date for Closing Conditions and assume all debts and liabilities incurred by Consulting Company
and the Target Kindergartens and Centers from the Completion Date for Closing Conditions. The Original Shareholders and Consulting
Company shall expressly list out all major debts and liabilities that shall be undertaken or assumed by the Original Shareholders
prior to or after the Completion Date for Closing Conditions pursuant to Article 6.2 hereof, and the specific amount of incomes
or debts and liabilities shall be determined on the basis of an audit conducted by the accounting firm appointed by Yuanbo Education
that has the qualification to conduct audits for listing purposes.

 

    	 

    	 	

    
 

Article
7.  Non-Competition Obligations

 

		7.1	Within ten years from the Completion Date for Closing Conditions and subsequently during the period when the Original
Shareholders remain employed by Consulting Company or the Target Kindergartens or Schools, the Original Shareholders shall not
operate solely or jointly with others, or directly or indirectly engage in any business that is in competition with the business
of the Target Kindergartens and Centers (the “Competing Activity”) and any other act that causes harm to the
interest of the Target Kindergartens and Centers, including but not limited to:

 

		(1)	having a controlling interest in, holding equity interest of, or indirectly controlling any company or other organization which
is engaged in the Competing Activity;

 

		(2)	being a director, management staff, advisor or employee of any company or other organization which is engaged in the Competing
Activity;

 

		(3)	providing loans, customer information or assistance of any other forms to any company or other organization which is engaged
in the Competing Activity;

 

		(4)	directly or indirectly obtaining interests from the Competing Activity or any company or other organization that is engaged
in the Competing Activity;

 

		(5)	employing in any way any person departing from the Target Kindergartens and Centers since the Completion Date for Closing Conditions
through any individual or organization that is directly or indirectly controlled by them or has an interest relationship with them;
and

 

		(6)	seeking in any way to employ any employees retained by the Target Kindergartens and Centers at that time.

  

Article
8.  Supplement, Amendment to, Modification and Discharge of this Agreement

 

		8.1	This Agreement shall become effective once it is signed by the parties hereto.

 

		8.2	This Agreement can be amended or modified after a unanimous agreement is reached by the parties hereto through consultation.
Any amendment or modification shall be in writing and become effective once it is signed by the parties hereto.

 

		8.3	Discharge. This Agreement can be discharged in the following manner:

 

		(1)	The parties hereto jointly discharge this Agreement and confirm the time of such discharge to take
effect by a written agreement;

 

		(2)	A party may notify the other party in writing of the discharge of this Agreement and state the effective
date of such discharge in a notice at least ten working days prior to the effective date of the discharge if any one of the following
circumstances occurs:

 

		a)	any representation or warranty made by the other party is untrue in all material aspects or there
is material omission in it at the time when such representation or warranty is made or on the Completion Date for Closing Conditions;

 

    	 

    	 	

    
 

		b)	when the other party fails to perform his/her/its agreements, undertakings and obligations hereunder
in all material aspects pursuant to this Agreement, the abiding party may notify the defaulting party in writing that such breach
shall be rectified within thirty (30) days of the receipt of such notice. If such breach has not been rectified or the defaulting
party does not put forward any rectification/compensation proposal that is acceptable to the abiding party (if such proposal is
reasonable, the abiding party shall not reject it) within such thirty (30) day period, and the abiding party reasonably believes
that such breach may have a significant impact on the financial situation of the company, the abiding party shall be entitled to
discharge this Agreement by giving written notice to the defaulting party;

 

		(3)	If the Reorganization cannot be completed by August 15, 2012, Yuanbo Education Holdings or Yuanbo
Education shall be entitled to discharge this Agreement.

 

		(4)	If the closing cannot be completed by September 1, 2012, Yuanbo Education Holdings or Yuanbo Education
shall be entitled to discharge this Agreement.

 

		(5)	Yuanbo Education shall discharge this Agreement pursuant to Article 3.4(2) hereof.

 

		8.4	Effectiveness of Discharge.

 

		(1)	This Agreement shall have no effect if it is discharged in accordance with any clause of Article 7.3
listed above;

 

		(2)	After the discharge of this Agreement, the Original Shareholders shall, based on the principles of fairness, reasonableness
and good faith, return any Onshore Acquisition Price from Yuanbo Education hereunder, and shall resume to the original condition
at the time of the execution of this Agreement as much as possible. To the extent that the Original Shareholders make material
mistakes, they shall also pay any interest accrued on any Investment Consideration paid by Yuanbo Education for the period from
the date on which such Investment Consideration is actually paid to the return of such payment to Yuanbo Education, which interest
shall be calculated at an annual interest rate of 3%.

 

		(3)	After the discharge of this Agreement, all rights and obligations of the parties hereto under this
Agreement shall be terminated immediately. No other claims shall be made by a party against the other party in respect of this
Agreement or the discharge hereof, except for the liabilities that shall be undertaken under Article 9 hereof.

 

    	 

    	 	

    
 

Article
9.  Liabilities for Breach of Contract

 

		9.1	A breach of contract shall be constituted if a party hereto violates or refuses to perform his/her/its representations, warranties,
obligations or liabilities under this Agreement and its exhibits.

 

		9.2	Liabilities for Breach of Contract 

 

			In the event of any breach of this
Agreement, the defaulting party shall indemnify the abiding party against any loss suffered by him/her/it as a result of the breach
of this Agreement by the defaulting party. Any waiver by the abiding party of one or more breach(es) of the other parties shall
not deprive him/her/it of the exercise of his/her/its right to terminate this Agreement in future in respect of such breaches.
Given that all losses resulting from the breach of this Agreement may not be fully compensated in monetary manner, the abiding
party may request the defaulting party to continue the performance of his/her/its obligations or to adopt other remedial measure
as permitted by laws, in addition to the assumption by the defaulting party of his/her/its liabilities for making compensation
for the breach.

 

		9.3	Unless specifically herein provided, if a party violates this Agreement and the other party therefore bears any cost or liability
or suffers from any loss, the defaulting party shall make compensation to the abiding party in respect of such cost, liability,
or loss (including, without limitation, any interest paid or lost due to such breach, and legal cost). The total amount of compensation
paid by the defaulting party to the abiding party shall be the same as such amount of loss incurred by such breach. The compensation
referred above shall include any interest that shall be obtained by the abiding party in connection with the performance of this
Agreement but it shall not exceed the reasonable expectation of the parties hereto.

 

Article
10.  Force Majeure

 

		10.1	A party shall not be deemed as breach of contract if part or all of his/her/its obligations hereunder cannot be performed due
to force majeure but not his/her/its fault. However, such party shall take all necessary remedial measures where circumstances
permit so as to mitigate any loss caused by force majeure.

 

		10.2	The party so affected by force majeure shall, within three working days after the occurrence of such an event, notify the other
parties in writing of the account of the event and, within fifteen working days after the occurrence thereof, provide a detailed
account of the event, as well as the valid evidence stating the reasons for his/her/its being unable to fully or partially perform
or his/her/its delay in the performance of this Agreement. Such evidence shall be issued by the public notary organization in the
locality of such force majeure. The parties hereto shall, in accordance with the extent to which the performance of this Agreement
is affected by force majeure, consult with each other and decide on whether or not to terminate this Agreement, or partially waive
or delay the performance of this Agreement. In the event that no agreement can be reached within sixty days after the occurrence
of force majeure or change of situation, the party so affected by force majeure or the change of situation shall be entitled to
terminate this Agreement, and no party shall be liable for making compensation for any loss suffered by the other parties hereto
arising therefrom.

 

    	 

    	 	

    
 

		10.3	A force majeure shall mean any objective circumstance that is unforeseeable, unavoidable, and cannot be overcome, including
the circumstances that the performance of this Agreement is directly affected by or this Agreement cannot be performed on the agreed
terms due to earthquake, typhoon, flood, fire, war, and other unforeseeable force majeure events, the occurrence and consequence
of which are unpreventable or unavoidable (the “Event of Force Majeure”), or the change of any laws, regulations
and rules and regulations, or promulgation of new laws, rules and regulations, or any government act.

 

Article
11.  Governing Law and Dispute Resolution

 

		11.1	The formation of this Agreement, its validity, interpretation, performance, and dispute resolution shall be governed by and
construed in accordance with the laws of the PRC. If, however, any specific matter relating to this Agreement has not been provided
for in the PRC laws and regulations that have been promulgated, it shall be handled with reference to the general international
commercial practices to the extent as permitted by the PRC laws and regulations.

 

		11.2	All disputes arising from the implementation of this Agreement or in connection with this Agreement shall be resolved by the
parties through friendly consultation. If any dispute cannot be resolved through consultation within fifteen days after its
occurrence, any party shall have the right to submit such dispute to the Shenzhen Court of International Arbitration for arbitration
in Shenzhen in accordance with its arbitration procedures and rules then in force. The arbitration tribunal shall consist of three
arbitrators designated pursuant to the arbitration rules. The arbitration proceedings shall be conducted in Chinese. The arbitral
award shall be final and binding upon all parties.

 

		11.3	During arbitration, all parties shall continue to have any other right hereunder and shall continue to perform their respective
obligations hereunder.

 

Article
12.  Notice and Delivery

 

		12.1	Any notice or other communication relating to this Agreement to be given by a party to the other parties (the “Notice”)
shall be in writing (including facsimile or email), and shall be delivered to the recipients at the following correspondence addresses
or contact numbers. In addition to the above, a valid notice shall also state the name of the following contact persons.

 

Yuanbo Education

 

Contact Person: Li Cao

Address: Room 2034, Block 1, No. 600 Meiyu Road, Nanxiang
Town, Jiading District, Shanghai

Telephone No.: 13605830818; 0573-82711331

Fax No.: 021-67311678

 

Fengming Chemical Fiber

 

Contact Person: Xinfang Yu

Correspondence Address: No. 606 Dongfang Road, Wutong
Street, Tongxiang

Postal Code: 314500

Telephone No.: 0573-88198818

 

    	 

    	 	

    
 

Daoyue Sun

 

Contact Person: Daoyue Sun

Correspondence Address: Room 101, Unit A, Block 12,
Hanbi Cuiting, Huali Century Garden, Wutong Street, Tongxiang

Telephone No.: 13905838063

 

Guoping Dong

 

Contact Person: Guoping Dong

Correspondence Address: Room 105, Dormitory of the
Bureau of Radio, Film and Television, Qingfeng South Road, Wutong Street, Tongxiang

Telephone No.: 13806718388

 

Changlin Fei

 

Contact Person: Changlin Fei

Correspondence Address: No. 21 Tan Bridge, Sanxin
Village, Wutong Street, Tongxiang

Telephone No.: 13567323040

 

Investment Company

 

Contact Person: Xinfang Yu

Correspondence Address: No. 606 Dongfang Road, Wutong
Street, Tongxiang

Postal Code: 314500

Telephone No.: 0573-88198818

 

Consulting Company

 

Contact Person: Xinfang Yu

Correspondence Address: No. 606 Dongfang Road, Wutong
Street, Tongxiang

Postal Code: 314500

Telephone No.: 0573-88198818

 

		12.2	The time for delivery of any Notice using the communication methods specified in the above clause shall be determined in the
following manner:

 

		(1)	if delivered in person, such Notice shall be deemed to have been given at the time when the recipient
gives his/her signature for confirmation of the receipt thereof. No delivery shall be deemed as valid if such recipient has not
signed for confirmation;

 

		(2)	if sent by post, such Notice shall be sent by registered and express mail or courier, and shall
be deemed to have been given on the seventh day after it was put into the post;

 

    	 

    	 	

    
 

		(3)	if sent by facsimile or email, such Notice shall be deemed to have been given after the confirmation
of the recipient. The date when confirmation is made by the recipient shall be deemed as the date of delivery.

 

		12.3	In the event of any change of the correspondence address or contact number of any party (hereinafter referred to as the “Changing
Party”), the Changing Party shall notify the other parties of the same within seven days of such change. If the
Changing Party fails to give notice in a timely manner as required, he/she/it shall bear any loss arising therefrom.

 

Article
13.  Disclosure of Information

 

		13.1	All terms and detailed rules of this Agreement and its exhibits (including all terms or even the existence of this Agreement,
and any document relating to the equity transfer) shall be confidential information. Unless otherwise herein required, the parties
hereto shall not disclose such confidential information to any third party. If any disclosure of information is required by laws,
the party who needs to make information disclosure shall seek opinions from the other parties in respect of the information disclosure
and submission within the reasonable time prior to such disclosure or submission; and if required by the other parties, the party
who needs to make information disclosure shall seek confidential treatment for any information disclosed or submitted as much as
possible.

 

		13.2	Without the written consent of Yuanbo Education, the Original Shareholders and Consulting Company shall not disclose to the
general public the equity transfer in any press conference, industry or professional media, marketing materials, and in any other
manner.

 

		13.3	Each party shall keep in confidence any proprietary or secret or confidential data and information relating to the Target Kindergartens
and Centers or their business, or belonging to the other parties, or disclosed to him/her/it by the other parties at any time or
for the purpose of negotiating this Agreement, as well as any content of this Agreement (the “Confidential Information”),
and shall not disclose such Confidential Information to any third party or individual other than the parties hereto, professional
advisors and the relevant government departments.

 

		13.4	The parties agree and undertake that they will procure any director appointed by them not to use any Confidential Information
for any purpose other than for the exercise of their powers and functions as directors or business operation of the company.

 

		13.5	The parties shall procure their respective employees to observe all obligations under this Article and be bound by them. As
such, an undertaking to keep in confidence and not to use Confidential Information, the form and content of which are to the satisfaction
of the parties, shall be included in all labor and service contracts with such employees.

 

		13.6	Yuanbo Education shall be entitled to disclose any matters relating to the Investment to any third party or the public.

 

		13.7	The restrictions mentioned in this Article 13 above shall not apply to any information disclosed in the following circumstances:

 

    	 

    	 	

    
 

		(1)	any information disclosed or used as required by laws or any regulatory authorities;

 

		(2)	any information disclosed or used as required by any judicial proceeding in connection with this
Agreement or any other agreements signed pursuant to this Agreement, or any information of the relevant matters reasonably disclosed
to the taxation authority;

 

		(3)	any information disclosed to professional advisors of the parties, and the parties shall request
such professional advisors to observe the requirements of this Article 11 with respect to the Confidential Information, as
if they were a party to this Agreement;

 

		(4)	any information that has been in the public domain due to any reason other than the fault of the
parties hereto or the company;

 

		(5)	any information disclosed under Article 13.6;

 

		(6)	any information disclosed or used with the prior written approval of the other parties.

 

			If any information disclosure is
made due to the above reasons, the party who makes such disclosure shall discuss the information disclosure and submission with
the other parties within the reasonable time prior to such disclosure or submission, and shall enable the party who is aware of
such information to treat the information disclosed or submitted as confidential as much as possible when the other parties require
to make information disclosure or submission.

 

Article
14.  Bye-laws

 

		14.1	All exhibits hereto are an integral part of this Agreement, which shall be a supplement to and have the same legal effect as
the main body of this Agreement. In the event of any conflict between the main body of this Agreement and the exhibits hereto and
any document filed to the competent departments for the performance of this Agreement, the main body of this Agreement shall prevail
and any amendments hereto shall be made accordingly.

 

		14.2	This Agreement and any exhibits hereto are the complete and unanimous agreement between the parties with respect to the subject
matter of this Agreement, and supersedes all other previous written and oral agreements or other documents between the parties
with respect to such subject matter.

 

		14.3	If any provision of this Agreement and all agreements described in any exhibits hereto should be invalid or unenforceable due
to its applicable laws, such provision shall be deemed not to have been existed since then and shall not affect the validity of
the other provisions of this Agreement. The parties hereto shall determine a new provision through negotiation to the extent as
permitted by laws to ensure the realization of intention of the original provisions to the greatest extent.

 

		14.4	This Agreement shall be binding upon any successor and assign of the parties and the successors and assigns mentioned above
may be entitled to all rights and interests hereunder.

 

    	 

    	 	

    
 

			Yuanbo Education may assign and
transfer its rights, interests and obligations hereunder to its affiliates, wholly-owned subsidiaries, and any wholly-owned subsidiaries
of its holding company.

 

Save for the aforesaid, no party
shall assign or transfer any of his/her/its rights or obligations hereunder.

 

 

		14.5	Unless otherwise herein provided, failure or delay on the part of either party hereto to exercise any right, power, or privilege
under this Agreement shall not operate as a waiver thereof, nor shall any single or partial exercise of any right, power, or privilege
preclude exercise of any other right, power or privilege.

 

		14.6	This Agreement shall become effective once it is signed by the respective legal representatives or authorized representatives
of the parties.

 

		14.7	This Agreement is executed in 16 originals. The parties hereto shall keep 2 originals, respectively, and all of them shall
have the same legal effect.

 

    	 

    	 	

    
 

[This page, which is intentionally left blank, is the signature
page of the Investment Agreement for Yuanbo Education.]

 

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

  

Shanghai Yuanbo Education Information Consulting Corporation
Ltd. (Chop)

[Chop of Shanghai Yuanbo Education Information Consulting Corporation Ltd. is affixed]

 

Authorized Representative: /s/ Li Cao                                

 

    	 

    	 	

    
 

[This page, which is intentionally left blank, is the signature
page of the Investment Agreement for the Original Shareholders.]

 

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

  

Zhejiang Fengming Chemical Fiber Co., Ltd. (Chop)

[Chop of Zhejiang Fengming Chemical Fiber Co., Ltd.is affixed]

  

Authorized Representative: /s/ Xinfang Yu                             

 

Daoyue Sun, with ID card number: 【350122197102071615】

 

Signature: /s/ Daoyue Sun                                                        

 

Guoping Dong, with ID card number: 【33042519790312001X】

  

Signature: /s/ Guoping Dong                                                     

 

Changlin Fei, with ID card number: 【330425195708182910】

 

Signature: /s/ Changlin Fei                                                        

 

    	 

    	 	

    
 

[This page, which is intentionally left blank, is the signature page of the Investment Agreement for Investment Company and Guoping
Dong.]

 

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

  

Tongxiang Fengming Fukang Cultural and Industrial Investment
Co., Ltd. (Chop)

[Chop of Tongxiang Fengming Fukang Cultural and Industrial Investment Co., Ltd. is affixed]

 

Authorized Representative:                                                       

 

Guoping Dong, with ID card number: 【33042519790312001X】

  

Signature: /s/ Guoping Dong                                                     

 

    	 

    	 	

    
 

[This page, which is intentionally left blank, is the signature
page of the Investment Agreement for Consulting Company.]

 

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

  

Daidaikang Enterprise Management and Consulting Co., Ltd.
(Chop)

[Chop of Daidaikang Enterprise Management and Consulting Co., Ltd. is affixed]

 

Authorized Representative: /s/ Xinfang Yu                            

 

    	 

    	 	

    
 

List
of Exhibits

 

Exhibit 1: Name List
of the Target Kindergartens and Centers, their Valuation and Key Personnel

 

	No.	Name of the Target 

Kindergartens and 

Centers	Valuation Amount 

(RMB/Ten 

Thousand Yuan)	Name of Key 

Personnel	Position
	1.	Mickey
    Kindergarten	130	Jumin Yao	Executive

headmaster of the

kindergarten
	2.	Nanhu New District

Kindergarten	290	Xiaolan Fei	Executive

headmaster of the

kindergarten
	3.	Nobel Kindergarten	320	Xiangzhen Lou	Executive

headmaster of the

kindergarten
	
         

         

        4.

         
	
         

         

         American
English

Kindergarten

         
	
         

         

         

         

        640

         
	Jianyu Wu	Chief headmaster

of the kindergarten
	Xiajuan Jin	Headmaster of the

kindergarten -

Business
	Juanping Shen	Headmaster of the

kindergarten -

Logistics
	5.	Lvdu Early Learning

Center	70	Hongfen Zhang	Executive

headmaster of the

kindergarten

  

    	 

    	 	

    

 

Exhibit 4: Representations
and Warranties

 

		1.	Representations and Warranties by Yuanbo Education

 

		1.1	Legal Status and Capacity of Yuanbo Education. Yuanbo Education has the full and independent
legal status and capacity to execute, deliver and perform this Agreement, and may act as a party to a litigation separately. The
execution by Yuanbo Education of this Agreement and the performance of its obligations hereunder shall not violate any relevant
laws, regulations, and governmental orders, nor shall they be in conflict with any contract or agreement to which it is a party
or which is binding upon its assets. This Agreement shall be legally binding on Yuanbo Education. The execution and performance
of this Agreement will not violate or contradict with any terms in the articles of association of Yuanbo Education or its other
constitutional rules.

 

		1.2	Capacity to Pay and Authorization. Yuanbo Education guarantees that it has sufficient capacity
to pay the Investment Consideration to the Original Shareholders in accordance with the terms and conditions hereof. Yuanbo Education
has obtained all consents or authorizations from third parties that are necessary for the transactions contemplated hereunder.

 

		2.	Representations and Warranties by the Original Shareholders and Consulting Company

 

On the date hereof, the Original Shareholders,
Consulting Company, Investment Company and Guoping Dong jointly and severally represent and warrant to Yuanbo Education in respect
of the following matters arisen on or before the date of this Agreement. The following representations and warranties are true,
accurate and complete, and not misleading:

 

		2.1	Authorization. The execution by the Original Shareholders, Consulting Company, Investment
Company, and Guoping Dong of this Agreement, the performance of all their respective obligations hereunder, and the consummation
of all the transactions contemplated hereunder have been fully and duly authorized. This Agreement is legally binding upon the
Original Shareholders and Consulting Company.

 

		2.2	Investment. Save as disclosed by the Original Shareholders in Exhibit 6,
the Original Shareholders, Consulting Company, Investment Company, and Guoping Dong have no share in other companies, affiliates,
offices, branch offices and other social organizations, or shareholders interest in any business that is in competition with the
principal business of Consulting Company and the Target Kindergartens and Center; nor do they directly or indirectly control or
hold any share in any other entity, nor have any interest in any other entity whose business is in competition with the principal
business of Consulting Company and the Target Kindergartens and Centers. The Original Shareholders do not in any way take part
or participate in any business operation that is in competition with the principal business of Consulting Company and the Target
Kindergartens and Centers.

 

		2.3	No Conflict. The execution and performance by the Original Shareholders, Consulting Company,
Investment Company, and Guoping Dong of this Agreement will not result in any violation or conflict of any terms of the articles
of association of Consulting Company and the Target Kindergartens and Centers or any other constitutional rules, and any violation
of the PRC mandatory laws and regulations; all the Original Shareholders have obtained any consent or authorization from third
parties that is necessary for the transactions contemplated hereunder. The Original Shareholders, Consulting Company, Investment
Company, and Guoping Dong have complete, lawful, and full capacity for civil conducts and civil rights. There is no circumstance
where any civil right is subject to restrictions.

 

    	 

    	 	

    
 

		2.4	Validly Existing. Consulting Company and the Target Kindergartens and Centers are entities
incorporated and validly existing under applicable laws. Consulting Company and the Target Kindergartens and Centers have fully
paid their respective registered capitals or start-up capital according to the payment schedule set out in their respective articles
of association, approval documents, business licenses, Registration Certificate of Private Non-Enterprise Entities (Legal Person)
and Permit for Operation of Schools for Privately-run Schools (the “Incorporation Documents”), which is in compliance
with the requirements of the PRC laws. There is no start-up capital that has not been paid or delayed in payment, nor is there
any start-up capital that has been taken away. The Original Shareholders, Consulting Company, Investment Company, Guoping Dong
or the Target Kindergartens and Centers have furnished to Yuanbo Education a capital verification report, certifying that Consulting
Company and the Target Kindergartens and Centers have fully paid their respective registered capital or start-up capital according
to laws. All the Incorporation Documents of Consulting Company and the Target Kindergartens and Centers have been legally and validly
approved or registered (if required), and are valid and enforceable under the laws of the PRC. The business scopes of Consulting
Company and the Target Kindergartens and Centers as set forth in the Incorporation Documents are met with the PRC legal requirements.
The production and business operation of Consulting Company and the Target Kindergartens and Centers are in compliance with the
laws of the PRC. All certificates, licenses, and permits required under the laws of the PRC for the production and business operation
of Consulting Company and the Target Kindergartens and Centers have been applied for and obtained according to laws; the Target
Kindergartens and Centers have carried out (including, without limitations) all registration formalities with national and local
civil affairs bureaux and education bureaux of the PRC, as well as other relevant administrative departments in respect of their
investment and operation. All approvals or permits in relation thereto have been obtained according to laws; Consulting Company
and the Target Kindergartens and Centers have completed their respective registration formalities with the relevant administrative
department in respect of their cooperation with offshore organizations that is necessary for their business operation. All approvals
or permits in relation thereto have also been obtained according to laws (if applicable). Moreover, all of the above permits, approvals,
or registration are validly existing. The Target Kindergartens and Centers have passed an annual inspection conducted by the relevant
body authorized by the government with respect to all of their certificates, licenses and permits, if any.

 

		2.5	Undisclosed Liabilities. There are no other substantial liabilities (being any liabilities
whose amount exceeds RMB100,000) of Consulting Company and the Target Kindergartens and Centers that have not been shown in their
respective balance sheets; any liabilities incurred by Consulting Company and the Target Kindergartens and Centers in the normal
course of their business operation after the date of balance sheet, which is not prohibited by this Agreement, will not have any
material adverse effect on Consulting Company and the Target Kindergartens and Centers or any of their shareholders.

 

    	 

    	 	

    
 

		2.6	Capital Structure. The shareholding structure of registered capital or founders and investors
of Consulting Company and the Target Kindergartens and Centers as set forth in their respective articles of association and any
amendments thereto that were registered and filed with the departments in charge of industrial and commercial administration, civil
affairs administration and management, and educational administration is entirely consistent with the record in the latest articles
of association and/or any amendments thereto of Consulting Company and the Target Kindergartens and Centers as provided by the
Original Shareholders and the Target Kindergartens and Centers to Yuanbo Education, and accurately and completely reflects the
capital structure of Consulting Company and the Target Kindergartens and Centers prior to the closing. Consulting Company and the
Target Kindergartens and Centers have never made any commitment to any person to issue nor have actually issued, in any way, any
interests, shares, bonds, and options of Consulting Company and the Target Kindergartens and Centers, or interests of the same
or similar nature other than the above shareholders interest or founders interest, including but not limited to the granting of
equity interests as gift to any senior management, key employees or shareholders of Consulting Company and the Target Kindergartens
and Centers, and/or other profit-making and non-profit organizations.

 

		2.7	No Change. From the date hereof to the Completion Date for Closing Conditions, unless otherwise
herein required or except as disclosed by the Original Shareholders in the exhibits hereto and with the written approval of Yuanbo
Education, the Original Shareholders, Consulting Company and the Target Kindergartens and Centers have not done the following or
fallen into the following circumstances:

 

		(1)	repayment in advance of any liabilities that has not been due;

 

		(2)	provision of guarantees and security to others, creation of mortgages, pledges and other guarantees
over their assets for others;

 

		(3)	discharge of any claims against others or waiver of any rights of claim;

 

		(4)	amendment to any existing contracts or agreements, which would have a material adverse effect on
Consulting Company and the Target Kindergartens and Centers;

 

		(5)	release of bonus to any management staff, directors, employees, sales representatives, agents, presidents,
headmasters of kindergartens, financial personnel or formal or informal, full-time or part-time advisors or increase of income
of any other form (unless it is the subsidy, bonus, or other income that is customarily released), or increase of the level of
compensations by more than 15% for the top 5 employees with highest pay among the company, managers, deputy managers or other senior
management, presidents, headmasters of kindergartens, financial personnel, or formal or informal, full-time or part-time advisors
within 12 months;

 

		(6)	suffering of any loss (whether or not it is insured) or occurrence of any safety responsibility
incidents in Consulting Company and the Target Kindergartens and Centers, or any change of their relationship with suppliers, customers,
or employees, which would have a material adverse effect on Consulting Company and the Target Kindergartens and Centers;

 

    	 

    	 	

    
 

		(7)	amendment to the accounting and auditing methods, policies, or principles, as well as financial
and accounting rules and regulations of Consulting Company and the Target Kindergartens and Centers;

 

		(8)	transfer by Consulting Company and the Target Kindergartens and Centers of their respective intellectual
property rights, trade secrets and trade names, or business names, or granting by Consulting Company and the Target Kindergartens
and Centers of a license to others to use the same;

 

		(9)	material change of any auditing methods, or employment policies, as well as rules and regulations;

 

		(10)	material adverse change in the financial situation of Consulting Company and the Target Kindergartens
and Centers; occurrence of significant transactions outside the ordinary course of business of Consulting Company and the Target
Kindergartens and Centers with significant liabilities incurred (the term “significant” used in the “significant
transactions” and “significant liabilities” means that there will be an adverse effect on the normal business
operation and valid existence of Consulting Company and the Target Kindergartens and Centers);

 

		(11)	adoption of any resolutions in respect of any matters other than those customarily discussed at
any shareholders’ meeting, board meetings or council meetings, except for the resolution adopted for the performance of this
Agreement;

 

		(12)	declaring, having paid or distributed, or preparing to declare, pay, or distribute any dividends,
bonus, or shareholders’ profits of any other form;

 

		(13)	save for all matters relating to the Reorganization as set forth in Article 1 hereof, (i) any
sale of assets, mortgage, pledge, lease, transfer, and other disposal that is beyond the normal business scope and whose transaction
amount is in excess of RMB100,000, (ii) except for customary business, the disposal of any fixed assets or consent to dispose
of or acquire fixed assets, waiver of any right to manage Consulting Company and the Target Kindergartens and Centers, execution
of any contracts involving expenditures of fixed assets, creation of any other liabilities of the company; (iii) creation
of any expenditure that is beyond the normal business scope and whose amount is in excess of RMB100,000, or purchase of any tangible
or intangible assets (including any investment in shareholders’ interest of other companies or organizations), insofar as
Consulting Company and the Target Kindergartens and Centers are concerned;

 

		(14)	any significant transaction or action that is outside the scope of the customary business operation
of Consulting Company and the Target Kindergartens and Centers;

 

    	 

    	 	

    
 

		(15)	any act or omission to act which could result in the above circumstances.

 

		2.8	Taxation. Consulting Company and the Target Kindergartens and Centers have completed all
taxation registration as required by laws and regulations.

 

		2.9	Assets. Consulting Company and the Target Kindergartens and Centers legally own or use all
of the equipment, fixed and intangible assets owned or occupied by them, respectively. Such equipment, fixed and intangible assets
are registered in the name of the Target Kindergartens and Centers.

 

		2.10	Real Estate. Consulting Company and the Target Kindergartens and Centers have the legal right
to use the office premises currently used by it. The Original Shareholders and Consulting Company confirm that the Target Kindergartens
and Centers have the right to use all of its properties that are being used as campus.

 

		2.11	Contracts. The Original Shareholders and the Target Kindergartens and Centers have provided
Yuanbo Education with copies of some material agreements or contracts currently in effect (which are consistent with their originals),
and the Original Shareholders guarantee that all contracts of Consulting Company and the Target Kindergartens and Centers currently
in effect are lawful, valid and enforceable according to laws, and all contracts currently in effect are duly performed. There
is no circumstance where a material breach is committed by the Target Kindergartens and Centers or any other transaction party.

 

			None
of Consulting Company and the Target Kindergartens and Centers will be a party to nor be subject to any contracts, agreements,
or other documents if such contracts, agreements, or other documents:

 

		(1)	are
not made in the ordinary course of business;

 

		(2)	are
not fully made on an arms-length basis;

 

		(3)	bring any losses to the Target Kindergartens and Centers or impair the interest of the Target Kindergartens
and Centers;

 

		(4)	result in the circumstances that the Target Kindergartens and Centers violate any terms and obligations
under the contracts, agreements, or documents to which they are a party or which are binding upon them.

 

		2.12	Accounting Treatment. As of today, no interference nor punishment has been imposed by the
local competent departments (including taxation department, education administrative department, etc.) on Consulting Company and
the Target Kindergartens and Centers in respect of their accounting treatment; and as far as the Original Shareholders know or
reasonably foresee, there is no sign or indication of having the risks of such interference or punishment.

 

		2.13	Disputes. There is no significant dispute between Consulting Company and the Target Kindergartens
and Centers (as a party) and any third parties (as the other party) (such dispute means any dispute which has entered into litigation
proceedings, or causes Consulting Company or the Target Kindergartens and Centers to make a compensation of over RMB100,000, or
would have an adverse effect on the reputation of the Target Kindergartens and Centers).

 

    	 

    	 	

    
 

		2.14	Litigation. There is no such following circumstance which would have a material adverse effect
on Consulting Company and the Target Kindergartens and Centers, or would passively affect the formation of this Agreement, its
validity and enforceability, as well as the transfer of shareholders’ interest hereunder, whether it has been completed,
is pending or reasonably expected to be likely to occur:

 

		(1)	any punishment, prohibition order or decree imposed by government departments on Consulting Company
and the Target Kindergartens and Centers;

 

		(2)	any other proceeding, such as civil, criminal, and administrative litigation or arbitration, or
dispute against Consulting Company and the Target Kindergartens and Centers.

 

		2.15	Compliance with Laws. All businesses being operated by Consulting Company and the Target
Kindergartens and Centers are in compliance with the laws, regulations, and rules currently in force, and any other administrative
rules of national administrative and management authorities (collectively referred to as the “Regulations”),
and do not violate any Regulations, which would have a material adverse effect on the business operation or assets of Consulting
Company and the Target Kindergartens and Centers.

 

		2.16	Employees.

 

		(1)	All employees of Consulting Company and the Target Kindergartens and Centers are in compliance with
the relevant labor laws and Regulations applicable to them;

 

		(2)	There is no existing labor dispute or conflict between Consulting Company and the Target Kindergartens
and Centers and their existing or former employees, nor is there any labor dispute or conflict that is reasonably expected to be
likely to occur;

 

		(3)	Consulting Company and the Target Kindergartens and Centers have no obligation to pay any economic
compensation in connection with the termination of labor relationship or any other similar compensation or indemnification cost
relating to employment that shall be paid but have not been paid.

 

		2.17	Special Representations and Warranties by the Original Shareholders, Consulting Company,
Investment Company, and Guoping Dong. In addition to the general representations and warranties as set forth above, the Original
Shareholders, Consulting Company, Investment Company, and Guoping Dong jointly and severally represent and warrant as follows:

 

		(1)	For the purpose of this Agreement, the Original Shareholders and Consulting Company will make their
best effort to coordinate with Yuanbo Education to implement the Reorganization arrangement hereunder. Without the written consent
of Yuanbo Education, they will not disclose externally the Reorganization arrangement hereunder and any specific requirements in
relation thereto; if the disclosure is mandatorily required by laws, they shall notify Yuanbo Education of the same in advance.

 

    	 

    	 	

    
 

		(2)	After the Original Shareholders and Consulting Company complete all items under the Reorganization
as prescribed in Article 1.2 hereof, Consulting Company will own 100% of the founder’s and investor’s interest in all
of the Target Kindergartens and Centers, and will have the right to legally and validly obtain reasonable return from the Target
Kindergartens and Centers.

 

		(3)	After the Original Shareholders complete the equity transfer hereunder, Yuanbo Education will own
100% of the founder’s and investor’s interest in all of the Target Kindergartens and Centers, and will have the right
to legally and validly obtain reasonable return from the Target Kindergartens and Centers.

 

		(4)	If the Target Kindergartens are subject to any punishment by the relevant government departments due to the organization of
any interest class or suffer any other loss as a result thereof, the Original Shareholders guarantee that they will bear any loss
suffered by Yuanbo Education arising therefrom.

 

		(5)	Consulting Company and the Target Kindergartens and Centers have not paid any enterprise income
tax since their establishment to the date hereof. If the Target Kindergartens and Centers are required by the department in charge
of taxation to pay back any payable enterprise income tax or are subject to a penalty as a result thereof, Yuanbo Education may
claim back in full any loss in relation thereto from the Original Shareholders in the manner as specifically described below: the
Original Shareholders will ultimately bear all additional taxes payable that were incurred or/and penalties prior to the completion
date for change of registration with the department in charge of industrial and commercial administration. Yuanbo
Education shall jointly bear all additional taxes payable that were incurred after the completion date for change of registration
with the department in charge of industrial and commercial administration.

 

		(6)	Consulting Company and the Target Kindergartens and Centers have submitted to any taxation department
which made requests to them any information required by it; as of the date hereof, there has been no dispute involving the existing
or potential taxation liabilities or taxation preferential treatment of the company and its early childhood educational institutions
between the Target Kindergartens and Centers and taxation departments;

 

		(7)	Consulting Company and the Target Kindergartens and Centers have financial information which is
used for normal tax recordation and payment;

 

		(8)	Prior to the completion of the Reorganization, certain of the Target Kindergartens and Centers have
not specified in their articles of association and the Permits for Operation of Schools as to whether investors expressly
request to get reasonable return. If, after the Completion Date for Closing Conditions, any early childhood educational institution
is subject to penalty or suffers from any other loss because of this and due to any previous distribution, Yuanbo Education shall
have the right to claim back any loss arising therefrom from the Original Shareholders.

 

    	 

    	 	

    
 

		(9)	Save for the employee’s welfares, social and pension protection stipulated by the PRC labor
laws and the relevant requirements, the Target Kindergartens and Centers have no obligation to pay any other related on-the-job,
retirement or pension welfare or protection.

 

		(10)	The Original Shareholders and Consulting Company undertake that they will make their best effort
to procure the Target Kindergartens and Centers to complete valid registration of social insurance and to pay social insurance
and housing provident fund for such employees pursuant to the requirements of applicable laws and regulations prior to the Completion
Date for Closing Conditions. If the Target Kindergartens and Centers are required to make any additional payment, is subject to
administrative punishments or required to assume any other civil or administrative liabilities due to the failure on its part to
complete the registration of social insurance or to pay in full any social insurance or housing provident fund in a timely manner
for such employees according to laws, the Original Shareholders guarantee that they will bear any direct or indirect losses suffered
by Yunabo Education arising therefrom.

 

		(11)	The Original Shareholders and Consulting Company undertake that they will, prior to the Completion
Date for Closing Conditions, ensure any existing canteen or any Target Kindergarten and Center that provides catering service to
students to obtain the valid Permit for Catering Service or Permit for Food Hygiene. The Original Shareholders also
guarantee that Yuanbo Education shall have the right to claim back from the Original Shareholders any direct or indirect losses
suffered by the Target Kindergartens and Centers due to the failure on their part to be qualified to get or renew the Permit
for Catering Service or Permit for Food Hygiene prior to the Completion Date for Closing Conditions of the equity transfer.

 

		(12)	The Original Shareholders and Consulting Company undertake that they will, prior to the Completion
Date for Closing Conditions, ensure the Target Kindergartens and Centers to obtain the valid Certificate of Qualified Health
Care Units or similar documentation. The Original Shareholders also guarantee that Yuanbo Education shall have the right to
claim back from the Original Shareholders any direct or indirect losses suffered by the relevant Target Kindergartens and Centers
due to the failure on their part to be qualified to get the Certificate of Qualified Health Care Units prior to the Completion
Date for Closing Conditions of the equity transfer.

 

		(13)	The Original Shareholders and Consulting Company undertake that they will, prior to the Completion
Date for Closing Conditions, ensure the Target Kindergartens and Centers to obtain the valid Permit for Fee Charge or Fee
Schedule for Filing. The Original Shareholders also guarantee that Yuanbo Education shall have the right to claim back from
the Original Shareholders any direct or indirect losses suffered by the relevant Target Kindergartens and Centers due to the failure
on their part to be qualified to get the Permit for Fee Charge or Fee Schedule for Filing prior to the Completion
Date for Closing Conditions.

 

    	 

    	 	

    
 

		(14)	The Original Shareholders and Consulting Company undertake that they will, prior to the Completion Date for Closing Conditions,
ensure the Target Kindergartens and Centers to obtain the valid Organization Code Certificate. The Original Shareholders
also guarantee that Yuanbo Education shall have the right to claim back from the Original Shareholders any direct or indirect losses
suffered by the relevant Target Kindergartens and Centers due to the failure on their part to apply for the Organization Code
Certificate according to laws prior to the Completion Date for Closing Conditions of the equity transfer.

 

		(15)	The Original Shareholders and Consulting Company undertake that they will, prior to the Completion Date for Closing Conditions,
ensure the Target Kindergartens and Centers to obtain the valid Tax Registration Certificate. The Original Shareholders
also guarantee that Yuanbo Education Holdings or Yuanbo Education shall have the right to claim back from the Original Shareholders
any direct or indirect losses suffered by the relevant Target Kindergartens and Centers due to the failure on their part to apply
for the Tax Registration Certificate according to laws prior to the Completion Date for Closing Conditions of the equity
transfer.

 

		(16)	The Original Shareholders and Consulting Company undertake that all teachers of the Target Kindergartens and Centers will,
prior to the Completion Date for Closing Conditions, have the valid Teacher’s Qualification Certificate. Yuanbo Education
shall have the right to claim back from the Original Shareholders any direct or indirect losses suffered by the relevant Target
Kindergartens and Centers due to the failure on the part of certain teachers to obtain the Teacher’s Qualification Certificate
prior to the Completion Date for Closing Conditions.

 

		(17)	The Original Shareholders and Consulting Company undertake that all foreign teachers of the Target Kindergartens and Centers
will, prior to the Completion Date for Closing Conditions, have the valid Foreign Expert Certificate. Yuanbo Education shall
have the right to claim back from the Original Shareholders any direct or indirect losses suffered by the relevant Target Kindergartens
and Centers due to the failure on the part of certain foreign teachers to obtain the Foreign Expert Certificate prior to
the Completion Date for Closing Conditions of the equity transfer.

 

		(18)	The Original Shareholders and Consulting Company undertake that all working staff of the Target
Kindergartens and Centers will have valid health documentation. Yuanbo Education shall have the right to claim back from the Original
Shareholders any direct or indirect losses suffered by the relevant Target Kindergartens and Centers due to the failure on the
part of certain working staff to obtain health documentation according to laws prior to the Completion Date for Closing Conditions
of the equity transfer.

 

		(19)	The Original Shareholders and Consulting Company undertake to polish the articles of association of the Target Kindergartens
and Centers so as to bring them in line with the requirements of the Notice on Issuing the Samples of the Articles of Association
of Private Non-enterprise Entities, the Provisional Regulations for the Registration Administration of Private Non-enterprise
Entities and the Regulations for the Implementation of Private Education Promotion Law; the name and address of the
Target Kindergartens and Centers recorded in their respective articles of association are correct; the nature of entities recorded
therein is legal person.

 

    	 

    	 	

    
 

		(20)	The Original Shareholders and Consulting Company undertake that the Target Kindergartens and Centers have taken out an liability
insurance for campus. Yuanbo Education shall have the right to claim back from the Original Shareholders any penalties imposed
on or any other losses suffered by the Target Kindergartens and schools due to the failure on their part to take out the liability
insurance for campus or to take out such insurance in their own names.

 

		2.18	The Original Shareholders have a full and exclusive right to own and dispose of any interest of
the Target Kindergartens and Centers to be transferred to Yuanbo Education pursuant to this Agreement; there is no security interest
or third party interest, nor third party claim or encumbrance over or in respect of the interest to be transferred.

 

		2.19	Information Disclosure. All documents, materials and information provided by the Original
Shareholders, Consulting Company, and the Target Kindergartens and Centers to Yuanbo Education prior to and after the date hereof
are in all substantive respects true, accurate, complete, not misleading, and without any omission and withdrawal of facts.

 

		2.20	The Original Shareholders, Consulting Company, Investment Company, and Guoping Dong will make all
of the above representations and warranties to Yuanbo Education again on the Completion Date for Closing Conditions, and guarantee
that there should be no other event during the period from the date hereof to the Completion Date for Closing Conditions which
would have a material adverse effect on the assets of the Target Kindergartens and Centers, their businesses, financial situation,
and prospect.

 

		3.	Further Undertakings

 

		3.1	Operation of the Original Shareholders, Consulting Company, and the Target Kindergartens and
Centers. From the date hereof to the date on which the change of registration with the department in charge of industrial and
commercial administration is completed, except for the reason of any act taken pursuant to this Agreement and its exhibits or unless
with the written consent of Yuanbo Education, the Original Shareholders undertake that:

 

		(1)	Consulting Company and the Target Kindergartens and Centers will operate their respective businesses
in a normal manner, and will maintain their normal relationship with government departments, customers, employees and students,
parents of such students so as to ensure that the reputation and operation of Consulting Company and the Target Kindergartens and
Centers will not be materially and adversely affected after the equity transfer;

 

		(2)	Consulting Company and the Target Kindergartens and Centers will not make dividends distribution
or shares repurchase, nor will they carry out any unusual transaction or incur unusual liabilities. Save for the normal business
activities, the Target Kindergartens and Centers will not repay loans in advance, nor will they pay in advance or delay in paying
trades payable;

 

    	 

    	 	

    
 

		(3)	Consulting Company and the Target Kindergartens and Centers will pay trades payable that are due
and other liabilities as scheduled in the ordinary course of business activities;

 

		(4)	Consulting Company and the Target Kindergartens and Centers will perform all contracts and agreements
signed or other documents in relation to the assets and business of Consulting Company and the Target Kindergartens and Centers
in a timely manner;

 

		(5)	Save for the normal business activities, Consulting Company and the Target Kindergartens and Centers
shall not, without the prior written permission from Yuanbo Education, make settlements or give waivers solely in any litigation,
or change their respective claims or other rights, and Yuanbo Education shall not refuse to grant such written permission without
proper cause;

 

		(6)	The Original Shareholders will make their best effort to ensure the continuous and lawful operation
and existence of Consulting Company and the Target Kindergartens and Centers and to obtain all government approvals and other permission
and consents that are necessary for their operation;

 

		(7)	Consulting Company and the Target Kindergartens and Centers shall not be subdivided nor merged with
any third party; Consulting Company and the Target Kindergartens and Centers shall not acquire any asset or business from third
parties;

 

		(8)	The Original Shareholders, Consulting Company, and the Target Kindergartens and Centers shall not
violate the clause of representations and warranties hereunder through any act or omission to act;

 

		(9)	The Original Shareholders, Consulting Company, and the Target Kindergartens and Centers shall notify
Yuanbo Education in writing of any event, fact, condition, change or other circumstance which has had or may have a material adverse
effect on the Original Shareholders, Consulting Company, and the Target Kindergartens and Centers in a timely manner;

 

		(10)	The Original Shareholders, Consulting Company, and the Target Kindergartens and Centers will handle
the taxation issues of the Target Kindergartens and Centers in a customary manner and strictly in accordance with the relevant
laws and regulations.

 

		3.2	Availability of Information. From the date hereof to the date on which the change of registration
with the department in charge of industrial and commercial administration is completed, the Original Shareholders, Consulting Company,
and the Target Kindergartens and Centers will, within the normal office hours of Consulting Company and the Target Kindergartens
and Centers, provide Yuanbo Education and its representative with all information relating to Consulting Company and the Target
Kindergartens and Centers as reasonably required by them, including but not limited to providing all accounts, records, contracts,
technical information, personnel information, management situation and other documents of Consulting Company and the Target Kindergartens
and Centers to the lawyers, accountants and other representatives appointed by Yuanbo Education; in order to facilitate Yuanbo
Education to examine and inspect the property, assets and business of Consulting Company and the Target Kindergartens and Centers,
as well as the documents mentioned herein, the Original Shareholders, Consulting Company, and the Target Kindergartens and Centers
allow Yuanbo Education to approach or contact any customer and creditor of Consulting Company and the Target Kindergartens and
Centers within the reasonable time prior to the closing, subject to the condition that a prior written notice of three working
days shall be given to the Original Shareholders, Consulting Company or the Target Kindergartens and Centers. The Original Shareholders,
Consulting Company, and the Target Kindergartens and Centers agree that Yuanbo Education shall have the right to examine and inspect
the financial affairs, assets and operation of Consulting Company and the Target Kindergartens and Centers at any time prior to
the closing.

  

    	 

    	 	

    

 

Exhibit 5

 

Labor Contract

 

Non-Competition Agreement

 

Enterprise Confidentiality Contract

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}]]