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  "documentTitle": "New Oriental Education & Technology Group (EDU)",
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  "authorName": "Carson Block",
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  "presentationDate": "2012-07-18 00:00:00",
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  "notes": "The slide compares BIDU's structure with EDU's, highlighting that EDU's pledges are cosmetic and lack legal teeth.",
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      "text": "The more important point though is that (registered or not), EDU has already proven that the pledge is cosmetic.",
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      "text": "Trademark License Agreement... expired on January 1, 2011 and was not renewed. Website Development and Use Agreement... expired on January 1, 2011 and was not renewed. Teaching Support Agreement... expired on January 1, 2011 and was not renewed.",
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      "text": "In contrast, EDU's operating company shareholders did not record any equity pledge at SAIC until two months ago. The more important point though is that (registered or not), EDU has already proven that the pledge is cosmetic.",
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      "text": "Equity Pledge. BIDU's operating company shareholders recorded a pledge at the State Administration of Industry and Commerce (SAIC) in favor of the WFOE over their equity in the operating company.",
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      "text": "EDU's defense against a charge that it failed to enforce the pledge would be that it wrote the pledge in a way so as to allow the agreements to terminate without triggering the pledge. Regardless, if that is the rationale for failing to foreclose, then the pledge is clearly illusory.",
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      "kind": "paragraph",
      "text": "EDU has no such agreement. Irrevocable Power of Attorney. This effects BIDU's proxy agreement by specifying the individuals who will vote on behalf of BIDU's operating company shareholders.",
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