Document:

SMART
GLOBAL HOLDINGS, INC.

 

 

 

AMENDMENT
NO. 3 TO

 

INVESTORS
SHAREHOLDERS AGREEMENT

 

 

 

Dated as
of October 17, 2017

 

 

 

 

 

     

     

    

SMART
GLOBAL HOLDINGS, INC.

 

AMENDMENT
NO. 3 TO INVESTORS SHAREHOLDERS AGREEMENT

 

This AMENDMENT
NO. 3 TO INVESTORS SHAREHOLDERS AGREEMENT (this “Amendment”), dated as of October 17, 2017, amends the Amended
and Restated Investors Shareholders Agreement, dated as of November 5, 2016 and as amended by Amendment No. 2 to Investors Shareholders
Agreement dated as of May 30, 2017 (the “A&R Investors Shareholders Agreement” and, together with this
Amendment, this “Agreement”), by and among SMART Global Holdings, Inc. (f/k/a Saleen Holdings, Inc.), a Cayman
Islands exempted company (together with its successors and assigns, the “Company”), Silver Lake Partners III
Cayman (AIV III), L.P., a Cayman Islands exempted limited partnership (the “SLP Investor”), Silver Lake Technology
Investors III Cayman, L.P., a Cayman Islands exempted limited partnership (the “SLP Co-Investor”), Silver Lake
Sumeru Fund Cayman, L.P., a Cayman Islands exempted limited partnership (the “SLS Investor”), Silver Lake Technology
Investors Sumeru Cayman, L.P., a Cayman Islands exempted limited partnership (the “SLS Co-Investor”), the Management
Investors (as defined in the A&R Investors Shareholders Agreement) and the Warrant Investors (as defined in the A&R Investors
Shareholders Agreement).

 

WHEREAS, the
Company, the SLP Investor, the SLP Co-Investor, the SLS Investor, the SLS Co-Investor and the initial Management Investors named
therein entered into that certain Management Investors Shareholders Agreement, dated as of August 26, 2011 (the “Initial
Agreement”), in order to set forth certain rights and other terms in connection with ownership of ordinary shares of
the Company;

 

WHEREAS, the
Company, the SLP Investor, the SLP Co-Investor, the SLS Investor and the SLS Co-Investor entered into the A&R Investors Shareholders
Agreement to amend and restate the Initial Agreement in connection with the Amended Credit Agreement (as defined in the A&R
Investors Shareholders Agreement) in order to set forth certain rights and obligations of the Warrant Investors with respect to
the ownership of equity securities of the Company by the Warrant Investors, and the Management Investors and the Warrant Investors
became parties thereto; and

 

WHEREAS, the
Company, the SLP Investor, the SLP Co-Investor, the SLS Investor and the SLS Co-Investor desire to amend certain sections A&R
Investors Shareholders Agreement.

 

NOW, THEREFORE,
in consideration of the agreements and obligations set forth in this Agreement and for other good and valuable consideration,
the receipt of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

Article
I

DEFINITIONS

 

Section 1.1.Definitions.
Capitalized terms that are defined in the preamble or the recitals hereto shall have such meanings throughout this Amendment.
Capitalized terms used but not defined in this Amendment shall have the meanings assigned thereto in the A&R

 

    1 

     

    

Investors Shareholders
Agreement. The meanings assigned to all defined terms used in this Amendment shall be equally applicable to both the singular
and plural forms of such defined terms.

 

Article
II

Amendments

 

Section
2.1.Amendments to Section 3.4(a) of the A&R Investors Shareholders
Agreement. Section 3.4(a) of the A&R Investors Shareholders Agreement is hereby
amended and restated in its entirety as follows:

 

Section
3.4.(a) Certain Definitions. As used in this Section 3.4:

 

(i)       “Applicable
Transfer Cap” means, with respect to a particular Key Management Investor or his Permitted Transferee at the date of
a proposed transfer, a number of Transferrable Shares equal to (A) such Key Management Investor’s First Period Cap plus
(B) if the transfer occurs after the commencement of the Second Period, such Key Management Investor’s Second Period
Cap plus (C) if the transfer occurs after the commencement of the Third Period, such Key Management Investor’s Third
Period Cap minus (D) the aggregate number of Transferrable Shares that such Key Management Investor and his Permitted Transferees
have transferred other than (1) to a Permitted Transferee pursuant to Section 3.2, (2) in a registered underwritten offering in
which one or more of the Silver Lake Investors participates, (3) to satisfy tax withholding requirements in connection with the
exercise, vesting or settlement, as applicable, of Options (or similar stock appreciation rights), Restricted Stock Units or restricted
stock awards or (4) with the prior written consent of the Silver Lake Investors.

 

(ii)       “First
Period” means the period beginning on November 20, 2017 and ending on May 30, 2018.

 

(iii)       “First
Period Cap” means, with respect to a particular Key Management Investor or his Permitted Transferee at the date of the
proposed transfer, a number of Transferrable Shares equal to (A)(1) the total number of Transferrable Shares owned by such Key
Management Investor and his Permitted Transferees as of the beginning of the First Period plus (2) the total number of
Transferrable Shares issued or issuable to such Key Management Investor upon the exercise of Options and underlying Restricted
Stock Units, in each case which were held as of the beginning of the First Period and are vested or have been exercised as of
the beginning of the First Period or will vest or become exercisable during the First Period multiplied by (B)(1) the aggregate
number of Transferable Shares transferred by the Silver Lake Investors after May 30, 2017 and before or during the First Period
(excluding transfers to Permitted Transferees) divided by (2) the total number of Transferable Shares held by the Silver
Lake Investors as of the beginning of the First Period.

 

(iv)       “Key
Management Investors” means (A) those Management Investors set forth on Exhibit C attached hereto on the date
of this Agreement and (B)

 

    2 

     

    

from
and after the date of this Agreement, any additional Management Investors subsequently added to Exhibit C by the Board
upon the Board determining in good faith that the Applicable Employee for such Management Investor (x) would qualify as an “officer”
pursuant Rule 16a-1(f) (or any successor provision) under the Exchange Act, as such provision is amended from time to time, if
the Company had undergone an Initial Public Offering at such time or (y) is a key officer of the Company or any of its Subsidiaries;
provided, that the Board shall so notify any additional Management Investor subsequently added to Exhibit C.

 

(v)       “Listing
Exchange” means the NASDAQ Global Market or other nationally recognized stock exchange or listing system, in each case
on which the Shares of the Company are at any time listed or quoted.

 

(vi)       “Non-Discretionary
Sale Program” means a non-discretionary, automatic selling program for the sale of securities established with a nationally
recognized registered broker/dealer that complies with customary market practices for non-discretionary, automatic selling programs
instituted by senior executives of public companies pursuant to Rule 10b5-1 (or any successor provision) under the Exchange Act,
as such provision is amended from time to time, which executes trades in the subject securities without direction or control by
the applicable Key Management Investor (except with respect to additions and reductions in the number of Transferrable Shares
to be sold in a given Non-Discretionary Sale Program to the extent required by Section 3.4(c)(i) or Section 3.4(c)(ii)).

 

(vii)       “Post-IPO
Transfer Restriction Periods” means, collectively, the First Period, the Second Period and the Third Period.

 

(viii)       “Second
Period” means the period beginning on May 31, 2018 and ending on May 30, 2019.

 

(ix)       “Second
Period Cap” means, with respect to a particular Key Management Investor or his Permitted Transferee at the date of the
proposed transfer, a number of Transferrable Shares equal to (A)(1) the total number of Transferrable Shares owned by such Key
Management Investor and his Permitted Transferees as of the beginning of the First Period plus (2) the total number of Transferrable
Shares issued or issuable to such Key Management Investor upon the exercise of Options and underlying Restricted Stock Units,
in each case which were held at or prior to the beginning of the Second Period and are vested or have been exercised as of the
beginning of the Second Period or will vest or become exercisable during the Second Period multiplied by (B)(1) the aggregate
number of Transferable Shares transferred by the Silver Lake Investors during the Second Period (excluding transfers to Permitted
Transferees) divided by (2) the total number of Transferable Shares held by the Silver Lake Investors as of the beginning
of the First Period provided that, in no event shall the Second Period Cap be less than 20% of the sum of (X) total number
of Transferrable Shares owned by such Key Management Investor and his Permitted Transferees as of the beginning of the First Period
plus (Y) the total number of Transferrable Shares issuable to such Key Management Investor upon the exercise of Options and underlying
Restricted Stock

 

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Units,
in each case which were held as of the beginning of the Second Period and that vest at any time through and including the end
of the Second Period.

 

(x)       “Third
Period” means the period beginning on May 31, 2019 and ending on May 30, 2020.

 

(xi)       “Third
Period Cap” means, with respect to a particular Key Management Investor or his Permitted Transferee at the date of the
proposed transfer, a number of Transferrable Shares equal to (A)(1) the total number of Transferrable Shares owned by such Key
Management Investor and his Permitted Transferees as of the beginning of the First Period plus (2) the total number of Transferrable
Shares issued or issuable to such Key Management Investor upon the exercise of Options and underlying Restricted Stock Units,
in each case which were held at or prior to the beginning of the Third Period and are vested or have been exercised as of the
beginning of the Third Period or will vest or become exercisable during the Third Period multiplied by (B)(1) the aggregate
number of Transferable Shares transferred by the Silver Lake Investors during the Third Period (excluding transfers to Permitted
Transferees) divided by (2) the total number of Transferable Shares held by the Silver Lake Investors as of the beginning
of the First Period provided that, in no event shall the Third Period Cap be less than 20% of the sum of (X) total number
of Transferrable Shares owned by such Key Management Investor and his Permitted Transferees as of the beginning of the First Period
plus (Y) the total number of Transferrable Shares issuable to such Key Management Investor upon the exercise of Options and underlying
Restricted Stock Units, in each case which were held as of the beginning of the Third Period and that vest at any time through
and including the end of the Third Period.

 

(xii)       “Trading
Day” means a day on which the Listing Exchange is open for at least one-half (1/2) of its normal trading hours.

 

Section
2.2.Amendments to Section 3.4(c) of the A&R Investors Shareholders Agreement.
Section 3.4(c) of the A&R Investors Shareholders Agreement is hereby amended and
restated in its entirety as follows:

 

(c)       Transfers
During the Post-IPO Transfer Restriction Periods. Without limiting Section 3.1 or Section 3.5 and subject in all cases to
Section 3.4(b), during the Post-IPO Transfer Restriction Periods, each of the Key Management Investors and their Permitted Transferees
shall not transfer any Securities to any Person, except transfers of Transferable Shares (A) to Permitted Transferees pursuant
to Section 3.2, (B) in a registered underwritten offering in which one or more of the Silver Lake Investors participates, (C)
transfers to satisfy tax withholding requirements in connection with the exercise, vesting or settlement, as applicable, of Options
(or similar stock appreciation rights), Restricted Stock Units or restricted stock awards, (D) upon receipt of the prior written
consent of the Silver Lake Investors or (E) as of the date of any proposed transfer, in accordance with such Key Management Investor’s
Applicable Transfer Cap as of such transfer, as calculated by the Company in accordance with Section 3.4(c)(i) below.

 

    4 

     

    

(i)       To
the extent any Key Management Investor or his Permitted Transferee desires to transfer any Transferable Shares to any Person (other
than (w) a Permitted Transferee pursuant to Section 3.2, (x) in a registered underwritten offering in which one or more of the
Silver Lake Investors participates, (y) to satisfy tax withholding requirements in connection with the exercise, vesting or settlement,
as applicable, of Options (or similar stock appreciation rights), Restricted Stock Units or restricted stock awards or (z) transfers
upon receipt of the prior written consent of the Silver Lake Investors) or implement a Non-Discretionary Sale Program (or increase
the number of Transferrable Shares permitted to be sold thereunder), such Key Management Investor or his Permitted Transferee,
as applicable, shall provide written notice (a “Post-IPO Transfer Notice”) of such action to the Company and
the Silver Lake Investors at least one (1) Business Days prior thereto, setting forth, as applicable, (i) the number of Transferable
Shares proposed to be transferred or covered by such Non-Discretionary Sale Program and (ii) the identity of the proposed transferee,
if known, and the manner of disposition contemplated for such proposed transfer or the identity of the broker-dealer that will
be establishing such Non-Discretionary Sale Program. Within one (1) Business Days following receipt of such Post-IPO Transfer
Notice, the Company shall provide written notice to such Key Management Investor or his Permitted Transferee, as applicable, and
the Silver Lake Investors setting forth the Applicable Transfer Cap for such Key Management Investor or his Permitted Transferee
as of the date of delivery of such Post-IPO Transfer Notice, provided that such Key Management Investor or his Permitted Transferee,
as applicable, shall provide the Company with all information reasonably requested by the Company in order to calculate such Applicable
Transfer Cap.

 

(ii)       Notwithstanding
the foregoing, if a Key Management Investor or his Permitted Transferee wishes to transfer a number of Transferrable Shares during
the Second Period or Third Period and the Applicable Transfer Cap for such Key Management Investor or his Permitted Transferee
is in excess of such Key Management Investor’s or his Permitted Transferee’s Applicable Transfer Cap if the provisos
in the definition of each of Second Period Cap and Third Period Cap (as applicable) were disregarded, then any such excess Transferrable
Shares must be transferred pursuant to a Non-Discretionary Sale Program established in accordance with Section 3.4(c)(iii).

 

(iii)       Each
Key Management Investor or his Permitted Transferee may establish a Non-Discretionary Sale Program for the sale of Transferable
Shares owned by such Key Management Investor and his Permitted Transferees (A) within thirty (30) days after the beginning of
the Second Period to cover sales during the Second Period (any such instituted program, a “Second Period Non-Discretionary
Sale Program”), and (B) within thirty (30) days after the beginning of the Third Period to cover sales of Transferable
Shares within the Third Period (any such instituted program, a “Third Period Non-Discretionary Sale Program”);
provided, that if the trading window is closed during either such thirty (30) day period, following the opening of the
trading window, the

 

    5 

     

    

applicable
thirty (30) day period shall be extended by the number of days the trading window was closed during such period; provided, however,
that notwithstanding the foregoing, a Key Management Investor or his Permitted Transferees may establish a Non-Discretionary Sale
Program for the sale of Transferrable Shares at any time during an open trading window (which, for this purpose, shall include
the period prior to the Initial Public Offering) for any or all of his Transferrable Shares as long as such Non-Discretionary
Sale Program does not permit the sale of any such shares other than as permitted by this Agreement. Each Non-Discretionary Sale
Program shall not permit the transfer of a number of Transferrable Shares in excess of the Applicable Transfer Cap for such Key
Management Investor and his Permitted Transferees from time to time, but such cap shall never be less than the number of Transferable
Shares permitted under the Applicable Transfer Cap at the time of creation of the Non-Discretionary Sales Program. Notwithstanding
the foregoing, a Key Management Investor or his Permitted Transferee may amend any Non-Discretionary Sales Program to provide
for sales of excess Transferable Shares as required by Section 3.4(c)(ii), but in all cases subject to the Applicable Transfer
Cap for such Key Management Investor and his Permitted Transferee. For the avoidance of doubt, in no event shall a Key Management
Investor or his Permitted Transferee be permitted to sell (whether or not pursuant to a Non-Discretionary Sales Program and whether
or not in one or more transactions) an amount in excess of the Applicable Transfer Cap of such Key Management Investor.

 

Article
III

MISCELLANEOUS

 

Section
3.1.The A&R Investors Shareholders Agreement.
Except as provided herein, all terms and conditions of the A&R Investors Shareholders Agreement remain in full force and
effect.

 

Section
3.2.Governing Law. This Agreement and
all claims or causes of action (whether in tort, contract or otherwise) that may be based upon, arise out of or relate to this
Agreement or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising
out of or related to any representation or warranty made in or in connection with this Agreement) shall be governed by and construed
in accordance with the laws of the State of Delaware, regardless of the laws that might otherwise govern under applicable principles
of conflicts of laws, except that Cayman Islands law shall apply in respect of any fiduciary duty or any mandatory provision of
Cayman Islands corporate law.

 

Section
3.3.Severability. If any portion of this Agreement shall be declared void or unenforceable
by any court or administrative body of competent jurisdiction, such portion shall be deemed severable from the remainder of this
Agreement, which shall continue in all respects valid and enforceable.

 

    6 

     

    

Section
3.4.Counterparts. This Agreement may be executed in any number of counterparts
(which delivery may be by electronic transmission), each of which shall be deemed an original, but all of which together shall
constitute a single instrument.

 

[The remainder
of this page intentionally left blank.]

 

    7 

     

    

IN WITNESS WHEREOF, each of the undersigned
has executed this Amendment No. 3 to Investors Shareholders Agreement or caused this Amendment No. 3 to Investors Shareholders
Agreement to be signed by its officer thereunto duly authorized as a deed as of the date first written above.

 

		COMPANY:	

 

	SMART GLOBAL HOLDINGS, INC.	 	In the presence of:
	 	 	 
	 	 	 
	By: 	/s/Jack Pacheco	 	By: 	/s/ Debbie Borden
	 	
        Name: Jack Pacheco 

        Title: Senior Vice
President, Chief

        

                  Operating
Officer and Chief 

                  Financial
Officer
	 	 	Signature of Witness

Name of Witness: Debbie Borden

 

[Signature
Pages Follow]

 

 

[Signature Page for Amendment No. 3
to Investors Shareholder Agreement] 

     

     

    

SLP INVESTOR:

 

SILVER LAKE PARTNERS III CAYMAN

(AIV III), L.P.

 

		By:	Silver Lake Technology Associates III

Cayman, L.P., its General Partner

 

		By:	Silver Lake (Offshore) AIV GP III, Ltd.,

its General Partner

 

	 	 	In the presence of:
	 	 	 
	 	 	 
	By: 	/s/ James A. Davidson	 	By: 	/s/ Janet M Rosell Bejinez
	 	
        Name: James A. Davidson

        Title: Director
	 	 	Signature of Witness

Name of Witness: Janet M Rosell Bejinez

 

 

SLP
CO-INVESTOR:

 

Silver
Lake Technology Investors

III Cayman, L.P.

 

		By:	Silver Lake Technology Associates
                                         III

                                         Cayman, L.P., its General Partner

 

		By: 	Silver Lake (Offshore) AIV GP
                                         III, Ltd.,

                                         its General Partner

  

	 	 	In the presence of:
	 	 	 
	 	 	 
	By: 	/s/ James A. Davidson	 	By: 	/s/ Janet M Rosell Bejinez
	 	
        Name: James A. Davidson

        Title: Director
	 	 	Signature of Witness

Name of Witness: Janet M Rosell Bejinez

 

 

 

[Signature
Pages Follow]

 

  

[Signature Page for Amendment No. 3
to Investors Shareholder Agreement] 

     

     

    

SLS
INVESTOR:

 

SILVER LAKE SUMERU FUND CAYMAN,
L.P.

 

		By:	Silver Lake Technology Associates
                                         Sumeru

                                         Cayman, L.P., its General Partner

 

		By: 	SLTA Sumeru (GP) Cayman, L.P.,
                                         its

                                         General Partner

 

		By:	Silver Lake Sumeru (Offshore)
                                         AIV GP,

                                         Ltd., its General Partner

 

	 	 	In the presence of:
	 	 	 
	 	 	 
	By: 	/s/ Paul Mercadante	 	By: 	/s/ Christine Ordesta
	 	
        Name: Paul Mercadante 

        Title: Director 
	 	 	Signature of Witness

Name of Witness: Christine Ordesta

 

 

SLS
CO-INVESTOR:

 

Silver
Lake Technology Investors 

Sumeru Cayman, L.P.

 

		By:	Silver Lake Technology Associates
                                         Sumeru

                                         Cayman, L.P., its General Partner

 

		By: 	SLTA Sumeru (GP) Cayman, L.P.,
                                         its

                                         General Partner

 

		By:	Silver Lake Sumeru (Offshore)
                                         AIV GP,

                                         Ltd., its General Partner

 

	 	 	In the presence of:
	 	 	 
	By: 	/s/ Paul Mercadante	 	By: 	/s/ Christine Ordesta
	 	
        Name: Paul Mercadante 

        Title: Director
	 	 	Signature of Witness

Name of Witness: Christine Ordesta

 

 

[Signature Page for Amendment No. 3 to
Investors Shareholder Agreement]Exhibit 10.1

 

LICENSE AGREEMENT

 

 

This License Agreement, executed as of 20th day of
October, 2017 (the “Effective Date”) between American Education Center Inc., a Nevada corporation (hereinafter named
"Licensee") and Max P. Chen (hereinafter named “Licensor”) (collectively, the “Parties”), sets
forth the following:

 

RECITALS

 

WHEREAS, Licensor is the owner of the copyright and/or world-wide
rights to a collection of certain published books (hereinafter "Licensed Products") listed in the Appendix of the Agreement;

 

WHEREAS, Licensor intends to grant an exclusive license to Licensee
to use or incorporate contents from the Licensed Products, in the course of its business and for its own internal business purposes;

 

NOW THEREFORE, in consideration of the mutual covenants contained
in this Agreement, the

Parties, intending to be legally bound, hereby agree as follows:

 

AGREEMENT

 

1. LICENSE RIGHT LICENSE.

 

1.1. GRANT OF LICENSE. Upon the terms and conditions
set forth in this Agreement, including, without limitation, those set forth in this Section 1.1, Licensor grants
Licensee a revocable, exclusive, world-wide, and royalty-free license to use, reproduce, distribute copies of, make derivative
works of, publish, distribute, display, broadcast and/or transmit the Licensed Copyrighted Works worldwide (the “Licensed
Territory”), in the course of its business and for its own internal business purposes (the “Copyright License”),
and for no other purpose whatsoever without the express written permission of the Licensor.

 

1.2. USE OF WORK. Licensee shall provide Licensor, upon
Licensor’s request, with representative samples of how Licensee is using the Licensed Products. If, at any time, any use
of the Licensed Products fails to conform to Licensor’s standards, Licensor may provide to Licensee notice of said failure.
Licensee shall cure said failure within thirty days from the date of such notice. In the event that said failure is not cured within
the period described in the preceding sentence, Licensor may then terminate this Agreement immediately, non-conforming copies of
the Licensed Products destroyed or promptly submitted to Licensor. If Licensor fails to approve any modifications or changes to
the Licensed Products within thirty days of Licensee advising Licensor of proposed changes, Licensor’s approval shall be
deemed to have been granted.

 

     

     

    

 

1.3. DERIVATIVRE WORK. Any modified or derivative works
for use for the Licensed Products such modified or derivative works shall be deemed to be “Licensed Copyrighted Works.”
Except as expressly permitted under this Agreement, Licensee shall not itself develop or use any modified or derivative works of
the Licensed Copyrighted Works. Notwithstanding any provision of law that may initially vest ownership of copyrights in modifications
or derivative works of the Licensed Copyrighted Works in Licensee or a third party that Licensee may engage in connection therewith,
Licensor and Licensee hereby expressly agree that Licensor shall be considered the author and owner of the copyrights in the Licensed
Copyrighted Works, including any derivative works or modifications of the original Licensed Copyrighted Works, whether or not any
such modified or derivative works are approved by Licensor for use in connection with the Licensed Copyrighted Works and the Business.
To the extent permitted by law, the creation of any modifications or derivative works of the Licensed Copyrighted Works shall be
deemed “works made for hire” for Licensor. Licensee shall execute any documents, including assignments, Licensor may
determine it requires to vest ownership of the Licensed Copyrighted Works, including any modifications or derivative works of the
original Licensed Copyrighted Works, in Licensee. Licensee shall have sole discretion as to whether to seek registration of the
Licensed Copyrighted Works, but in no event, shall Licensee apply for copyright registration of any of such works in its own name.
Licensee shall execute written agreements, in a form acceptable to Licensor, with any independent contractor Licensee engages in
connection with the creation of modifications or derivative works of the Licensed Copyrighted Works to ensure that such independent
contractor is bound by this Section 1.3 to the same extent as Licensor.

 

1.4 CREATION OF NEW WORKS. Subject to the terms and conditions
of this Agreement, including those set forth in this Section 1.4, Licensee may create new works utilizing the
Licensed Copyrighted Works (the “New Works”). Licensee may utilize the New Work to the extent permitted under the Copyright
License.

 

1.5 OWNERSHIP OF NEW WORKS. As between Licensor and Licensee,
Licensor shall be deemed the owner of the copyrights in the New Works and shall be permitted to apply for copyright registration
of the New Works.

 

1.6 AGREEMENT NOT TO CONTEST. Licensee shall not question,
contest or challenge the title or ownership by Licensor of the Licensed Copyrighted Works during the Term or thereafter. Licensee
will claim no right, title or interest in the Licensed Copyrighted Works except the right to use the same pursuant to the terms,
provisions and conditions of this Agreement, and will not seek during the Term or thereafter to register the same in any jurisdiction
or before any agency, regulatory body, or official entity.

 

1.7 Licensor’s
Right to Protect Trademarks and Copyrights. Nothing in this Agreement shall be construed to bar Licensor from protecting
its right to the exclusive use of its copyrights against infringement thereof by any party or parties, including Licensee (in the
case of its use of any of the foregoing other than pursuant to the Copyright License), either during the Term or thereafter.

 

1.8 Duty to Notify
of Infringement and Enforcement Action by Licensor. Licensee shall promptly notify Licensor in writing in the event
it becomes aware of any third party infringing, misusing, or otherwise violating any of Licensor’s rights in the Licensed
Copyrighted Works, or who Licensee believes is, or may be infringing, diluting, or otherwise derogating the Licensor’s rights
in the Licensed Copyrighted Works. Licensor may, at its sole discretion, take action against such third party to enforce its interest
in the Licensed Copyrighted Works, and in such event, shall be entitled to retain all monetary recovery from any such third party
by way of judgment, settlement, or otherwise. In the event Licensor elects or takes enforcement action, Licensee agrees to cooperate
promptly and fully with any such effort, at Licensee’s expense.

 

     

     

    

 

1.9 ASSIGNMENT AND SUBLICENSE.

     1.9.1     Restriction
on Assignment and Sublicense. Except as otherwise expressly set forth herein, neither this Agreement nor any of the rights,
interests or obligations hereunder may be assigned, transferred, conveyed or delegated by Licensee in any manner (whether by operation
of law pursuant to a change of control or otherwise) without the prior written consent of Licensor, and any purported assignment,
transfer, conveyance or delegation in violation hereof will be null and void, provided that Licensee may assign this Agreement
and its rights and obligations hereunder to any direct successor to all or substantially all of the Business. This Agreement is
not intended to confer any rights or benefits on any person or entity other than the parties hereto, except as expressly provided
in Section 1.10.1. Licensee shall not sublicense any of its rights under this Agreement without the express prior
written consent of Licensor, which shall be solely within Licensor’s discretion and subject to Licensee’s sublicensee’s
express written agreement to abide by and comply with all of the terms and conditions of this Agreement. Licensor may freely transfer
this Agreement and its rights or obligations hereunder or the Licensed Copyrighted Works, subject only to Licensee’s rights
under this Agreement.

1.9.2     Continuance
of Obligations. Any assignment or sublicense of rights of Licensee under this Agreement, even with the prior consent of Licensor,
shall not operate to release, limit, impair or suspend any of the obligations of Licensee under this Agreement.

 

1. 10 WARRANTY DISCLAIMER/INDEMNITY/HOLD HARMLESS.

1.10.1     Licensee’s
Indemnification Obligation. Regardless of any inspections conducted by or consents granted by Licensor and regardless of compliance
by Licensee (or any Permitted Third Party Provider) with any standards promulgated hereunder, Licensee agrees to indemnify, defend
and hold harmless Licensor, its Affiliates (including parent entities), and their respective stockholders, directors, officers,
employees, agents and assignees from and against any and all claims, demands, causes of action, damages, losses, liabilities, judgments,
costs, fines, penalties, obligations, together with all reasonable costs and expenses incurred in connection with the foregoing
(including, without limitation, court costs, litigation expenses and reasonable attorneys fees) (“Damages”) that any
of them may suffer or incur (including pursuant to judgment or settlement) as a result of or relating to (a) Licensee’s
use of the Licensed Copyrighted Works, (b) Licensee’s breach of any of the terms of this Agreement, and (c) the
activities or omissions of Licensee or any of its stockholders, directors, officers, employees, agents and assignees; provided,
however, that Licensor shall not be entitled to indemnification hereunder to the extent that the Damages being sought were caused
by any breach of a representation or warranty of Licensor hereunder or act or omission of Licensor. If in the reasonable good faith
judgment of Licensor, the Licensee fails to undertake and continue the defense of any of the foregoing, Licensor shall have the
right (but not obligation) to make and continue such defense as it considers appropriate and to settle the underlying matter at
the expense of Licensee. Nothing herein shall prevent Licensor from defending, if it so desires in its own discretion, any matter
at its own expense through its own counsel, notwithstanding that the defense thereof may have been undertaken by Licensee.

 

     

     

    

 

1.10.2     Warranty. Licensor
represents and warrants that it has full right and authority to grant the licenses granted to Licensee hereunder.

 

1.10.3     Warranty
Disclaimer. EXCEPTING ONLY THE WARRANTY BY LICENSOR IN SECTION 1.10.2, LICENSEE HEREBY EXPRESSLY ACKNOWLEDGES THAT
LICENSOR MAKES NO WARRANTIES OF ANY KIND TO LICENSEE, WHETHER WITH RESPECT TO THE LICENSED COPYRIGHTED WORKS OR OTHERWISE. EXCEPTING
ONLY THE WARRANTY BY LICENSOR IN SECTION 1.10.2, LICENSOR HEREBY EXPRESSLY DISCLAIMS ANY WARRANTY OBLIGATION, INCLUDING,
WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

 

1.11 Employment/Partnership
Issues. This Agreement does not create, is not intended to create, and shall not be interpreted or construed as
creating a partnership, joint venture, agency, employment, master and servant, or similar relationship between Licensor and Licensee,
and no representation to the contrary shall be binding upon either party.

 

2. TERM. Unless terminated pursuant to Section 3 of this
Agreement, this Agreement shall

be effective for a period of five years (the “Term”)
from the Effective Date (the “Termination Date”). At the end of the Term, the Agreement shall automatically renew unless
either Party notifies the other in writing its intention not to renew the Agreement, thirty (30) days prior to the Termination
Date.

 

3. TERMINATION AND SURVIVAL.

3.1 TERMINATION. This Agreement and the Copyright License
granted to Licensee under this Agreement, together with any and all rights of Licensee or any of its assigns or sublicensees, shall
terminate upon the first to occur of the following:

(a) expiration of the Term;

(b) the date specified for termination in
a written notice by Licensee to Licensor;

(c) the date specified for termination
in a written notice by Licensor to Licensee after the occurrence of the Default;

(d) any assignment for the benefit of creditors
of Licensee; or

(f) any attachment, execution of judgment
or process against any of Licensee’s rights under the Copyright License or otherwise under this Agreement, unless satisfied
or released within sixty (60) calendar days.

 

3.2 Survival.
In addition to the survival provisions set forth elsewhere in this Agreement, the provisions Sections 1.3, 1.4, 1.5, 1.6, 1.8,
1.9, 1.10, 1.11, and 3.2 shall survive expiration or termination of this Agreement for any reason and shall remain in full
force and effect in accordance with their respective terms, without modification, limitation or impairment of any kind.

 

4. Counterparts.
This Agreement may be executed in one or more counterparts (including by facsimile or portable document format (pdf)) for the convenience
of the parties hereto, each of which will be deemed an original, but all of which together will constitute one and the same instrument.
No signature page to this Agreement evidencing a party’s execution hereof will be deemed to be delivered by such party to
any other party hereto until such delivering party has received signature pages from all parties signatory to this Agreement.

 

     

     

    

 

5. Headings.
The article and section headings contained in this Agreement are solely for the purpose of reference, are not part of the agreement
of the parties and will not in any way affect the meaning or interpretation of this Agreement.

 

6. Severability.
The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of any other
provision of this Agreement, each of which will remain in full force and effect, so long as the economic or legal substance of
the transactions contemplated by this Agreement is not affected in a manner materially adverse to any party.

 

7. Binding Effect.
This Agreement will be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.

 

8. Entire Agreement.
This Agreement and the related documents contained as Exhibits hereto contain the entire understanding of the parties relating
to the subject matter hereof and supersede all prior written or oral and all contemporaneous oral agreements and understandings
relating to the subject matter hereof. This Agreement may be amended, supplemented or modified, and any provision hereof may be
waived, only by written instrument making specific reference to this Agreement signed by the party against whom enforcement is
sought. The recitals to this Agreement are hereby incorporated by reference and made a part of this Agreement for all purposes.
To the extent of any conflict between this Agreement and the Master Separation and Distribution Agreement, the provisions of this
Agreement shall control.

 

9. Construction.
Neither this Agreement nor any provision contained in this Agreement will be interpreted in favor of or against any party hereto
because such party or its legal counsel drafted this Agreement or such provision. Whenever the plural form of a word is used in
this Agreement, that word will include the singular form of that word. Whenever the singular form of a word is used in this Agreement,
that word will include the plural form of that word. The term “and” shall also mean “or” and “or”
shall also mean “and” as the context permits or requires to provide the broadest meaning or inclusion of the subject.
The term “include” or any derivative of such term does not mean that the items following such term are the only types
of such items.

 

10. GOVERNING LAW. This Agreement shall be construed
and controlled by the laws of the State of New York without reference to conflict of laws principles.

 

11. NOTICES. All notices or other communications to or
upon any party shall be delivered to or at the addresses set forth on the signature page(s) hereto. For purposes of this Section,
notice can include notice by written mail, electronic mail or by facsimile and shall be deemed served when sent; provided, however,
that notice of a breach of this Agreement and notice of termination of this Agreement shall be given by overnight courier service
or certified mail, return receipt requested. Either party may give written notice of a change of address and, after notice of such
change has been received, any notice or request shall thereafter be given to such party at such changed address.

 

     

     

    

 

12. AMENDENT. No amendments, modifications or additions
to or deletions from this Agreement shall be binding unless accepted in writing by authorized representatives of the Parties. 

 

[Signature Page Follows]

 

     

     

    

 

IN WITNESS WHEREOF the Parties hereto have executed this Agreement
the day and year

first above written.

 

 

 

 

 

	Name: Max P. Chen 	Name: Weihua Zhu
	 	 
	 	 
	Address: ___________________________	Address: _________________________
	 	 
	 	 
	Signature /s/ Max P. Chen	Signature /s/ Weihua Zhu
	 	 
	 	 
	Title ______________________________	Title: COO, American Education Center Inc.
	 	 
	 	 
	Date 10/20/2017 Phone: ____________	Date 10/20/2017 Phone: ____________

 

     

     

    

 

Appendix

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