Document:

exhibit10.3

EXHIBIT 10.3

Kok Keng Low’s Employment Contract 

EMPLOYMENT CONTRACT

The Employment Contract (hereinafter referred to as the “Agreement”) 

is made on September 28, 2006.

BETWEEN:

ASIA PAYMENT SYSTEMS, INC, a corporation incorporated under the laws of the State of Nevada, U.S.A. which is a fully reporting company registered with the United States Securities and Exchange Commission and trades on the NASD OTCBB under the symbol APYM and having a registered office address at 711 South Carson Street, Suite 4, Carson City, Nevada 89701, USA and a principal office located at 39th Floor, One Exchange Square, 8 Connaught Place, Central, Hong Kong, SAR China (hereinafter referred to as “Asia Payments”)

AND:

Low Kok Keng, a Malaysian citizen holding a Malaysian Identity Card No: 590226-10-6637 and residing at 35, Jalan USJ 5/4, 47610 Subang UEP, Selangor, Malaysia (hereinafter referred to as “KK Low”).

WHEREAS

	a) 	Asia Payments is in the payments and loyalty rewards related businesses which includes Processing Business, Cards Business and Prepaid Business and wishes to expand its business to include the provision of payments and loyalty rewards related software, consultancy, technical and management services to operators of payments and loyalty rewards card in the Asian countries (hereinafter collectively referred to as the “Business”).
		
	b)      	
KK Low is acknowledged as a leading IT expert in the Business.

	 
	c)      	
Asia Payments wishes to formalize its agreement with KK Low for his provision of services to Asia Payments by engaging his service as its Executive Vice President-Chief Technology Officer and Head of Processing Business, and KK Low has agreed to be engaged by Asia Payments upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the mutual covenants, promises, terms and conditions herein contained, the parties agree as follows:

EMPLOYMENT

Asia Payments agrees to employ KK Low as its Executive Vice President-Chief Executive Officer and Head of Processing Business, and KK Low agrees to be employed in this capacity, upon the terms and conditions hereinafter set forth.

TERM

This Agreement shall commence on the date of the agreement as referenced above (hereinafter referred to as the “Commencement Date”) and shall terminate as of the earlier of:

	         	a)      	
Five (5) years from the Commencement Date (hereinafter referred to as the “Initial Agreement”) unless either KK Low or Asia Payments notifies the other that he or it elects to enter negotiations for a further agreement of an additional five (5) years (hereinafter referred to as “Renewal Agreement”), such Renewal Agreement to be concluded at least one hundred and eighty (180) days before the end of the Initial Agreement hereof; or

		 
		b)      	
the death of KK Low; or

		 
		c)      	
election of either party to terminate the employment of KK Low with Asia Payments pursuant to the respectively rights as contained in subsection 6(a) or subsection 6(b) hereof.

The Exercise of the right of Asia Payments or KK Low to terminate this Agreement pursuant to subsections 6(a) or 6(b) hereof shall not abrogate the rights and remedies of the terminating party in respect of the breach given rise to such termination. 

JOB TITLE AND DUTIES

At all time during the term of this Agreement, KK Low shall:

	        	a)      	
be designated by Asia Payments with the title “Executive Vice President-Chief Executive Office & Head of Processing Business”, unless in the reasonable judgment of the Board of Directors of Asia Payments (hereinafter referred to as the “Board”) in the best interest of Asia Payments, such title may be changed by Asia Payments, provided however that the new title shall continue to reflect the position of KK Low as the Chief Technology Office and Head of Processing Business of Asia Payments.

		 
		b)      	
have duties and responsibilities commensurate with his title and position in Asia Payments.

		 
		c)      	
perform and discharge well and faithfully the duties which may be assigned to him from time to time by Asia Payments and/or its President & Chief Executive Officer in connection with the conduct of the Business, such duties shall include:

		 
		 	(i)      	
the formulation and development of the payments and loyalty rewards related technology required by Asia Payments and its subsidiaries and related companies to conduct the Business;

		 

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	        	       	(ii)      	
presiding at all corporate meetings but shall be entitled to delegate such duty to his subordinate(s) should he not be available due to business reason or on leave;

			 
			(iii)      	
the general supervision of Asia Payments’ subsidiaries which conduct Asia Payments’ Processing Business;

			 
			(iv)      	
set out the duties of subordinate officers

			 
			(v)      	
identifying new business opportunities related to the Processing Business across the Asia Pacific Region and elsewhere;

			 
			(vi)      	
developing and updating from time to time the strategic plan and annual business plans for Asia Payments’ Processing Business as well as the IT plans for Asia Payments;

			 
			(vii)      	
executing the IT plans of Asia Payments and the strategic plan and annual business plans of Asia Payments’ Processing Business as approved by the Board of Asia Payments and/or the Board of Asia Payments’ subsidiaries which conduct the Processing Business.

			 

	        	d)      	
be given the co-signing authority on the bank accounts of Asia Payments’ subsidiaries which conduct the Processing Business as may be directed by the Board;

		 
		e)      	
be appointed as a Director of Asia Payments and he shall be entitled to receive compensation and/or benefits and/or stock options in an amount and quantity not less than and on similar terms as other Directors of Asia Payments, consistent with Asia Payments’ Stock Option Plans and policies and SEC and NASD guidelines.

		 
		f)      	
be appointed as a director of Asia Payments’ subsidiaries and related companies that conduct the Processing Business and any subsidiary and/or related company of Asia Payments as and when required by Asia Payments and KK Low May may, subject to the approval of the Board, receive and keep for his own account compensation and/or benefits from any such subsidiary and/or related company. It is hereby acknowledged by Asia Payments that KK Low is currently the Managing Director of Cardtrend Systems Sdn. Bhd. (“Cardtrend”) and that he is receiving and/or will receive compensation and/or benefits from Cardtrend. Asia Payments further acknowledges and agrees that KK Low will continue to be the Managing Director of Cardtrend and the compensation and/or benefits received and/or to be received by KK Low from Cardtrend shall be deemed part of the compensation and/or benefits as stipulated in subsection 4 hereof.

		 

	4)      	
COMPENSATION, BENEFITS AND EXPENSES

	 
	 	
For the services rendered by KK Low under this agreement:

	 

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	        	a)      

 

 

 

 	
Asia Payments shall pay KK Low a base salary of Hong Kong Dollars Seventy Five Thousand (HK$75,000) or an equivalent in United States Dollars (US$) per month. Such salary shall be reviewed and adjusted upwards annually, on the anniversary date of his employment with Asia Payments during the term of this Initial Agreement with a view to bring his salary in line with the salary scale of a chief technology officer of a multinational mono-line payment card company or a head of a business unit of a multinational payments company by the second anniversary date of his employment with Asia Payments, taking into considerations the revenues and earnings of Asia Payments, the skills and experience required of the incumbent for the position and the performance of KK Low as reviewed and judged reasonably by the Board. When making payment of such salary to KK Low, Asia Payments shall be entitled to deduct the amount of cash compensation received by KK Low from Cardtrend and the subsidiaries and/or related companies of Asia Payments as mentioned in subsection 3(f) above.

		 
		b)      	
Profit Share

		 
		 	
KK Low shall be entitled to an annual profit share payable by Asia Payments within thirty (30) days after the completion of Asia Payments’ annual audited financial statements for each fiscal year, as follows:

		 

	        	       	(i)      	
One and a half (1.5) percent of the earnings before interest, taxes, depreciation and amortization (“EBITDA”) and before stock based compensation attained by Asia Payments and its subsidiaries and related companies or

			 
			(ii)      	
such other formula as may be agreed between the parties from time to time, and such profit sharing may be paid to KK Low in cash or in the equivalent value of unrestricted common shares of Asia Payments at the time of payment.

			 

	       	c)      	
Stock Option

		 
		 

 	(i)      

 	
During the term of the Initial Agreement, KK Low will be eligible to participate and be entitled to receive stock options to purchase One Million Eight Hundred and Fifty Thousand (1,850,000) common shares of Asia Payments at an option price of United State Dollars Thirteen cents only (US$0.13) per share, such share options which are subject to rules and regulation applicable to the employees of Asia Payments, shall be vested to KK Low at an amount of Seventy Five Thousand (75,000) shares at the end of every quarter from the Commencement Date until the expiration of the Initial Agreement, with an additional 350,000 options at the expiration of the Initial Agreement.

		 
		 	(ii)      	
During the term of the Initial Agreement, KK Low will also be entitled to any stock options as may be authorized from time to time by the Board.

		 
		d)      	
Benefits

		 
		 	
KK Low will be eligible and entitled to the employment benefits as follows:

		 

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	         	        	(i)	
Holidays and Annual Vacation Leave

			 
			
 

	KK Low shall be entitled to all public holidays in the country/territories he is located at the time, in addition, to annual vacation leave which shall accrue on a pro rata basis during the term of this Agreement at the rate of twenty eight (28) working days per annum which vacation and/or personal day(s) shall be taken by him at such time or times as are consistent with the needs of the business of Asia Payments and such vacation leave accrued but not taken by KK Low due to the needs of the business of Asia Payments shall be carried forward until the termination of this Agreement.

			 
			(ii)	
Health Insurance

				
			 

 	KK Low shall be entitled to be enrolled in a corporate health insurance program which may be implemented by Asia Payments or one of its affiliates. The enrolment will be as executive status and will entitle KK Low to the same coverage as provided to the other key executives of Asia Payments.

			 
			(iii)      	
Indemnification

			 
			 

 	KK Low shall be indemnified by Asia Payments to the fullest extend provided under the indemnification provisions of the By-laws and/or Certificate of Incorporation presently in existence, or, to the extend that the scope of such indemnification is greater, under any amendments to the By-laws and/or Certificate of Incorporation to the extend that Asia Payments obtains indemnification insurance for its officers and/or directors, such insurance also cover KK Low to the same extend.

			 
			(iv)      	
Other Benefits

			 
				KK Low will be eligible for such other employment and executive benefits as may be offered by Asia Payments from time to time.

			 

	         	e)      	
Business Expenses

		 
		 	
Asia Payments will reimburse KK Low for all reasonable expenses properly incurred by KK Low in the performance of his duties under this Agreement, upon presentation of properly itemised charges, receipts and/or similar documentation, and otherwise in accordance with policies established from time to time by the Board. The parties acknowledge that KK Low may be required to travel extensively in connection with the performance of these duties under this Agreement and in this regard, KK Low will be entitled to economy class or business class (with the prior approval of the President & Chief Executive Officer of Asia Payments) air travel.

		 

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	5)      	
WORK LOCATION & RELOCATION

	 
	 

 

 

 	i)      

 

 

 	
During the term of this Agreement, KK Low shall be based in Hong Kong and Kuala Lumpur to perform his obligation under this Agreement, unless otherwise determined and agreed by both parties from time to time depending on the needs of the Business.  Asia Payments shall pay for KK Low’s hotel accommodation costs reasonably incurred by him while he is discharging his duties from Hong Kong. In the event of KK Low relocating to a work place outside of Hong Kong and Kuala Lumpur, Asia Payments shall pay all of the costs and expenses of KK Low and his immediate family members connected with such relocation, including reasonable moving and travel expenses and reasonable dwelling costs and education costs (for children under eighteen (18) years of age) during the entire period in such relocated work place. KK Low and his immediate family members shall be entitled to an economy class round trip return air-travel from the relocated work place to Kuala Lumpur, once a year from the time of such relocation for taking his home leave. In addition, if KK Low is relocated outside of Hong Kong and Kuala Lumpur, Asia Payments will furnish KK Low, without cost to him and during the entire period in such relocated work place, a company owned or leased automobile of the make and model befitting his position and status in the business community in such work place.

	 
	 	ii)      	
In the event of termination of KK Low’s employment due to whatever reason while he his performing his obligations under this Agreement: (a) in Hong Kong, Asia Payments will pay for his airfare returning to Kuala Lumpur; or (b) in location outside of Hong Kong or Kuala Lumpur, Asia Payments will pay all of the costs and expenses of KK Low and his immediate family members connected with their returning to Kuala Lumpur, including moving and travel expenses and reasonable temporary dwelling costs (for a period not exceeding 60 days).

	 
	6)      	
TERMINATION, SEVERANCE PAYMENT AND LIQUIDATED DAMAGES

	 
	 	a)      	
Elect To Terminate Employment By KK Low

	 
	 

 

 	 

 

 	
Upon the occurrence of the material breach of this Agreement by Asia Payments and such breach continues for at least thirty (30) days following written notification by KK Low, KK Low shall have the right to elect to terminate his employment under this Agreement by resignation upon not less than thirty (30) days prior written notice given within a reasonable period of time not to exceed, except in case of continuing breach, four (4) calendar months after the event giving rise to said right to elect.

		 	 
		
b) 

	Elect To Terminate Employment By Asia Payments (Termination For Cause)
		 	  
			Upon the occurrence of any of the following events during the period of KK Low’s employment under this Agreement: 

			 	
	         		(i)      	
KK Low has been convicted of a felony; or

		        	 
			(ii)      	
material breach of this Agreement by KK Low and such breach continues for at least thirty (30) days following written notification by Asia Payments; or

			 

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	      	       	(iii)      	
the Board has determined that KK Low’s employment with Asia Payments may be terminated with “cause” as defined hereunder,

				 
			
Asia Payments shall have the right to elect to terminate KK Low’s employment under this Agreement by giving seven (7) days prior written notice given within a reasonable period of time not to exceed, except in case of continuing breach four (4) calendar months after the event giving rise to said right to elect.

				 
			
For the purpose of the provision of subsection 6(b)(iii) hereof, termination of KK Low’s employment with Asia Payments under this Agreement, by Asia Payments for “cause” shall mean KK Low’s termination by action of the Board arising from their findings with evidence on KK Low’s dishonesty and/or willful misconduct.

			  

     c)     Severance Payment

	      	       	(i)      	
In the event of termination of KK Low’s employment under this Agreement, which termination was either elected by KK Low pursuant to subsection 6(a) hereof or actioned by the Board without “cause” as defined in the last paragraph of subsection 6(b) hereof, Asia Payments will:

			 
			 	(A)      	
pay KK Low a severance payment, within thirty (30) days from the date of such termination, equal to the product of KK Low’s monthly base salary at the time of such termination, multiplied by the remaining months for KK Low to provide his services to Asia Payments under this Agreement as if such termination had not occurred plus a reasonable amount of ex-gratia payment as determined by the Board for KK Low’s loss of office and his past length and performance of services rendered, such amount, however, shall not be less than Hong Kong Dollars One Million (HK$1,000,000);

			 
			 	(B)      	
take all necessary actions to ensure that all share options which KK Low is entitled to pursuant to subsection 4(c) above and which would have been vested to KK Low if such termination had not occurred, will become fully vested within thirty (30) days from the date of such termination.

			 
			(ii)      	
In the event of termination of KK Low’s employment with Asia Payments under this Agreement, which termination was elected by Asia Payments pursuant to subsection 6(b) hereof (Termination for Cause), KK Low will be entitled to a severance payment, within thirty (30) days from the date of such termination, of a reasonable amount of ex-gratia payment as determined by the Board for KK Low’s loss of office and his past length and performance of services rendered.

			 

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	       	d)     	
Liquidated Damages

		 
		 	
In the event of termination of KK Low’s employment, which termination was elected by KK Low not under any provision of this Agreement, Asia Pay shall be entitled to seek liquidated damages from KK Low. However, the parties hereto acknowledge that the damages that may be suffered by Asia Payments from such termination of KK Low’s employment with Asia Payments, is not ascertainable. Accordingly, the liquidated damages, if it is sought by Asia Payments, shall be an amount equal to the costs reasonably incurred by Asia Payments in recruiting a person to replace KK Low, subject to no more than Hong Kong Dollar Three Hundred and Seventy Five Thousand (HKD 375,000). KK Low shall pay Asia Payments such amount within thirty (30) days from the date of presentment of such bills by Asia Payments.

		 	 
		e)	
Neither party shall be obligated to mitigate any damages arising from the early termination of this Agreement pursuant to subsection 6(a) or subsection 6(b) or arising from the election by KK Low not under any provision of this Agreement, as the case may be.  The severance payment provided for under subsection 6(c)(i) or subsection 6(c)(ii) above shall not reduce any amount of money that may be owed by Asia Payments to KK Low or due to him. The liquidated damages provided for under subsection 6(d) above shall not reduce any amount of money that may be owed by KK Low to Asia Payments or due to Asia Payments.

		 
	7)     	
EXTENT OF SERVICE

	 
	 	a)     	
KK Low shall devote his full time and attention to, and extent his best efforts in the performance of his duties under this Agreement, so as to promote the Business of Asia Payments and Asia Payments’ subsidiaries, associated companies and affiliates.

	 
	 	b)     	
Both parties acknowledge and agree that subsection 7(a) above shall not be construed as preventing KK Low from the following activities of KK Low:

	 
	 	 	
KK Low, being an individual businessman, has made prior to the Commencement Date and may make after the Commencement Date, investments with his personal assets in businesses which do not compete with the Business of Asia Payments and that he is and may continue to be or may become a non-executive director of those companies which conduct such non-competing businesses.

			 
			
KK Low being an individual investor, has purchased prior to the Commencement Date and may continue to purchase after the Commencement Date, securities in any corporation whose securities are regularly traded in any stock exchanges in the world PROVIDED THAT such purchase shall not result in his collectively owning beneficially at any time, five percent (5%) or more of the equity securities of any corporation engaged in a business competitive to that of Asia Payments’

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KK Low, being a leading IT expert in the payment and loyalty related businesses, has participated prior to the Commencement Date and may continue to participate after the Commencement Date, in conferences, seminars and the likes in which, he may be delivering articles, papers or materials which may or may not belong to him relating to the payment and loyalty business and/or industry PROVIDED THAT such disclosure of information and knowledge relating to the payment and loyalty related business are made in a general manner and that it may be for the purpose of promoting Asia Payments and/or Asia Payments’ Business.

	8)      	
CONFIDENTIAL INFORMATION

	 
	 	
KK Low shall not, directly or indirectly, or at any time during the term of this Agreement hereunder or thereafter and without regard to when or for what reason, if any, use or permit the use of other information of or relating to Asia Payments or any subsidiary or affiliate which is not in the public domain and shall not divulge such trade secrets, customers’ lists, and information to any person, firm, or corporation whatsoever except as may be required by any applicable law or determination of any duly constituted administration agency. For the avoidance of doubt, this Clause shall not be applicable to the disclosure of any information relating to Asia Payments or its subsidiaries or affiliates by KK Low or Asia Payments’ officer authorised by him, to any third party during any business negotiations or discussions or delivering speeches in any conference or seminar as referred to in subsection 7(b)(iii) above.

	 
	9)      	
NON-COMPETE

	 
	 	
In consideration of KK Low’s promises of (a) not to compete, directly or indirectly, with Asia Payments either (i) by the establishment of a new company engaged in the same business as Asia Payments or (ii) to actively seek employment with other companies who directly compete with Asia Payments; and/or (b) not to recruit any employee of Asia Payments to work either (i) for a new company established to engage in the same business as Asia Payments or (ii) with other companies who directly compete with Asia Payments, for a period of one (1) year from the date of termination of his employment with Asia Payments (hereinafter referred to as the “Restrain Period”), Asia Payments shall pay to KK Low a sum of Hong Kong Dollar Nine Hundred Thousand (HK$900,000) or the equivalent in United States Dollars in two equal installments, first installment being made on the date of termination of his employment and the second installment to be made on the expiration of the Restrain Period.

	 
	10)      	
INTELLECTUAL PROPERTY

	 
	 	
Any idea, invention, design, written material, manual, system, procedure, improvement, development or discovery conceived, developed, created or made by KK Low alone or with others relating to the Business of Asia Payments or any of its subsidiaries or affiliates during the contract period and whether or not patentable or registerable, shall become the sole and exclusive property of Asia Payments. KK Low shall disclose the same promptly and completely to Asia Payments and shall, during the employment period (I) execute all documents required by Asia Payments for vesting in Asia Payments the entire right, title and interest in and to same, (ii) execute all documents required by Asia Payments for filing and prosecuting such applications for patents, trademarks, service marks and/or copyrights

	 

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as Asia Payments, in its sole discretion, any desire to prosecute, and (iii) given Asia Payments all assistance it reasonably requires, including the giving of testimony in any suit, action or proceeding, in order to obtain, maintain and protect Asia Payments’ right therein and thereto.

	 
	11)      	
ASSIGNMENT

	 
	 	
This Agreement and any rights (including KK Low’s Compensation) hereunder shall not be assigned, pledged or transferred in any way by either party hereto except that Asia Payments shall have, with KK Low’s consent, the right to assign its rights hereunder to any third party successor in interest of Asia Payments whether by merger, consolidation, purchase of assets or stock or otherwise. Any attempted assignment, pledge, transfer or other disposition of this Agreement or any rights, interests or benefits contrary to the foregoing provisions shall be null and void.

	 
	12)      	
NOTICES

	 
	 	
All notices, request, demands and other communications hereunder must be in writing and shall be deemed to have been duly given if delivered by hand, sent by facsimile, or mailed by first class, registered mail, return receipt requested, postage and registry fees prepaid to, the application party and addressed as follows:

	 

	         	(i)  	if to the ASIA PAYMENTS:                                    Asia Payment Systems, Inc.  
		  	  	39th Floor  
		  	  	One Exchange Square  
		  	  	8 Connaught Place  
		  	  	Central  
		  	  	Hong Kong  
		  	  	Facsimile: 852-2110-9983  
		  
		(ii)  	if to KK Low:  	35, Jalan USJ 5/4,  
		  	  	Subang UEP 47610,  
		  	  	Selangor, Malaysia  

	13)      	
SEVERABILITY

	 
	 	
If any provision of this Agreement shall, for any reason, be adjudged by any court of competent jurisdiction to be invalid or unenforceable, such judgment shall not affect, impair or invalidate the remainder of this Agreement but shall be confined in its operation to the jurisdiction in which made and to the provisions of this Agreement directly involved in the controversy in which such judgment shall have been rendered.

	 
	14)      	
WAIVER

	 
	 	
No course of dealing and no delay on the part of any party hereto in exercising any right, power, or remedy under or relating to this Agreement shall operate as a waiver thereof or otherwise prejudice such party’s rights, powers and remedies. No single or partial exercise of any rights, powers or remedies under or relating to this Agreement shall preclude any other or further exercise thereof or the exercise of any right, power or remedy.

	 

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	15)      	
ENTIRE AGREEMENT/GOVERNING LAW

	 
	 	
This Agreement embodies the entire understanding and supersedes all other oral or written contracts or understandings, between the parties regarding the subject matter hereof. No change, alteration, or modification hereof may be made except in writing signed by both parties hereto, This Agreement shall be construed and governed in all respect and shall at all times be determined in accordance with the laws of the State Of Nevada, USA..

	 
	16)      	
HEADINGS

	 
	 	
The headings of Paragraphs herein are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement.

	 

 

 

 

 

 

 

 

 

 

 

 

 

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IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement consisting of eleven (11) pages, on this 28th day of September, 2006.

	For And On-half of 	     For And On-behalf of 
	Low Kok Keng 	     Asia Payment Systems, Inc. 
	 
	 
	 
	 
		 
	LOW KOK KENG	         KING K. NG
	By : Low Kok Keng 	         By: King K. Ng 
	Malaysia I/C No.: 	         Director, President & 
	590226-10-6637 	            Chief executive Officer 
	 
	 
	 
	 
	Witnessed By: 	     Witnessed By: 
	 
	 
	 
		       
	 
	NG CHEE KEONG	     LOKE KOK YUN
	Name: Ng Chee Keong 	     Name: Loke Kok Yun 

 

 

 

 

 

- 12 -exhibit10.4

EXHIBIT 10.4

Harry Choi Consulting Services Agreement

Consulting Services Agreement

This agreement is made on December 27, 2006 by and between Asia Payment Systems, Inc., a Nevada corporation (“Asia Pay”) with its principal offices at 800 5th Avenue, Ste.4100, Seattle, WA. 98104 and Harry Choi (“CHOI”) with an address at #3B, Tower 2, Man Lai Court, Tai Wai, Hong Kong.

Witnesseth

WHEREAS, Asia Pay requires expertise and assistance in the area of business development and marketing in China and Hong Kong to support its business and growth;

WHEREAS, CHOI has substantial contacts among the business community and has business development and business planning expertise with respect to the China market, and desires to act as a consultant to provide business advisory services;

NOW, THEREFORE, in consideration of the premise and the mutual promises and covenants contained herein and subject specifically to the conditions hereof, and intending to be legally bound thereby, the parties agree as follows:

	1.      	
Certain Definitions - When used in this Agreement, the following terms shall have the meanings set forth below:

	 
	 	1.1      	
Affiliate - any persons or entities controlled by a party.

	 
	 	1.2      	
Asia Pay – Asia Payment Systems, Inc. or it subsidiaries which use the services of CHOI.

	 
	 	1.3      	
Asia Pay Clients - the Asia Pay's clients who use the services of CHOI.

	 
	 

 	1.4      

 	
Contact Person - the person who shall be primarily responsible for carrying out the duties of the parties hereunder. Asia Pay and CHOI shall each appoint Contact Persons to be responsible for their respective duties.  In the event that one party gives notice to the other party in writing that, in their reasonable opinion, the other party's Contact Person is not able to fulfill their duties and responsibilities hereunder, both parties shall mutually agree upon a replacement Contact Person within 10 days of the said notice.

	 	1.5      	
Extraordinary Expenses - expenses that are beyond those expenses that are usual, regular, or customary in the conduct of in-house activities in fulfillment of the scope of this agreement.

	 
	 	1.6      	
Equity- cash, securities or liquid assets, specifically excluding real property.

	 
	 	1.7      	
Payment or Payable in kind - distribution of the proceeds of a transaction in the same type and form as was given as valuable consideration for the transaction.

	 
	2.      	
Contact Persons. The Contact Person for Asia Pay is Robert Clarke, Chairman. The Contact Person for CHOI is Harry Choi.

	 
	3.      	
Services to be rendered by CHOI. Services to be rendered, on a best efforts basis, by CHOI are as follows:

	 
	 	3.1      	
Advice and Counsel, Business Planning. CHOI will provide advice and counsel regarding Asia Pay's strategic and business plans; strategy and negotiations in China, to include potential clients and service organizations, joint ventures, corporate partners and other business development transactions.

	 
	 	3.2      	
Business Development Intelligence. CHOI has access to information on business developments in this field and will monitor and react to sensitive market information on a timely basis and provide advice and counsel and intelligence to Asia Pay in a timely fashion. Asia Pay understands that some of this information is available from other sources but acknowledges that CHOI can provide it in a more timely fashion and with substantial value-added interpretation of such information. The foregoing notwithstanding, no information will be provided to Asia Pay with respect to the activities of any other CHOI customers or customer accounts without such customer's prior written consent.

	 
	 	3.4      	
Asia Pay and/or Asia Pay Client Transaction Due Diligence. CHOI will undertake due diligence on all proposed business development transactions affecting the Asia Pay, of which CHOI is notified in writing in advance.

	 
	 	3.5      	
Additional Duties. Asia Pay and CHOI shall mutually agree upon any additional duties, which CHOI may provide for compensation paid or payable by Asia Pay under this Agreement.

	 

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	 	3.6      	
Best Efforts. CHOI shall devote such time and best efforts to the affairs of Asia Pay as are reasonable and adequate to render the consulting services contemplated by this agreement. CHOI is not responsible for the performance of any services which may be rendered hereunder without the Asia Pay providing the necessary information in writing prior thereto. It is understood that a portion of the compensation to be paid hereunder is being paid hereunder by Asia Pay to have CHOI remain available to assist with transactions on an as-needed basis.

	 
	4.      	
Compensation to CHOI.

	 
	 	4.1      	
Grant of options. Asia Pay shall grant to CHOI, at the signing of this contract, stock options on six hundred thousand (600,000) fully registered free trading shares at a price of $0.001 per share, which will vest at the date of the signing of the contact and which, between the parties, will have

	 
	 	 	a      	
deemed value of $60,000:

	 
	 	4.2      	
Additional Fees. Asia Pay and CHOI shall mutually agree upon any additional fees, which Asia Pay may pay in the future for services rendered by CHOI under this Agreement.

	 
	 	4.3    	
Extraordinary Expenses. Extraordinary expenses shall be submitted by CHOI to Asia Pay for approval prior to expenditure and shall be paid by Asia Pay, within ten (10) business days of receipt of CHOI’s request for payment.

	 

	5.      	
Indemnification. The Asia Pay agrees to indemnify and hold harmless CHOI and his employees against any and all liability, loss and costs, expenses or damages, including but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever or howsoever caused by reason of any injury (whether to body, property, personal or business character or reputation) sustained by any person or to any person or property by reason of any act, neglect, default or omission, or any untrue or alleged untrue statement of a material fact, or any misrepresentation of any material fact or any breach of any material warranty or covenant as the Asia Pay or any of its agents, employees, or other representatives arising out of, or in relation to, this Agreement. Nothing herein is intended to nor shall it relieve either party from liability for its own act, omission or negligence. All remedies provided by law, or in equity shall be cumulative and not in the alternative.

	 

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CHOI agrees to indemnify and hold harmless Asia Pay, each of its officers, directors, employees and each person, if any, who controls Asia Pay against any and all liability, loss and costs, expenses or damages, including but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever or howsoever caused by reason of any injury (whether to body, property, personal or business character or reputation) sustained by any person or to any person or property by reason of any act, neglect, default or omission, or any untrue or alleged untrue statement of a material fact, or any misrepresentation of any material fact or any breach of any material warranty or covenant as CHOI or any of its agents, employees, or other representatives arising out of, or in relation to, this Agreement. Nothing herein is intended to nor shall it relieve either party from liability for its own act, omission or negligence. All remedies provided by law, or in equity shall be cumulative and not in the alternative.

	 
	6.      	
Asia Pay Representations. Asia Pay hereby represents, covenants and warrants to CHOI as follows:

	 
	 	6.1      	
Authorization. Asia Pay and its signatories herein have full power and authority to enter into this Agreement and to carry out the transactions contemplated hereby.

	 
	 	6.2      	
No Violation. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will violate any provision of the charter or by-laws of Asia Pay, or violate any terms of provision of any other Agreement or any statute or law.

	 
	 	6.3      	
Agreement in Full Force and Effect. All contracts, agreements, plans, leases, policies, and licenses referenced herein to which Asia Pay is a party are valid and in full force and effect.

	 
	 	6.4      	
Litigation. Except as set forth below, there is no action, suit, inquiry, proceeding or investigation by or before any court or governmental or other regulatory or administrative agency or commission pending or, to the best knowledge of Asia Pay threatened against or invoking Asia Pay, or which questions or challenges the validity of this Agreement and its subject matter; and Asia Pay does not know or have any reason to know of any valid basis for any such action, proceeding or investigation.

	 
	 	6.5      	
Consents. No consent of any person, other than the signatories hereto, is necessary to the consummation of the transactions contemplated hereby, including, without limitation, consents from parties to loans, contracts, lease or other Agreements and consents from governmental agencies, whether federal, state, or local.

	 

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	 	6.6      	
CHOI Reliance. CHOI has and will rely upon the documents; instruments and written information furnished to CHOI by the Asia Pay's officers or designated employees.

	 
	 	
           A. Asia Pay Materials. All representations and statements provided herein about the Asia Pay are true and complete and accurate to the best 

           of Asia Pay’s knowledge. Asia Pay agrees to indemnify, hold harmless, and defend CHOI, at Asia Pay's expense for any proceeding or suit 

           which may raise out of any inaccuracy or incompleteness of any such material or written information supplied to CHOI.

	 
	 	
           B. Asia Pay Client and Other Material. Asia Pay warrants that all representation and statements provided, other than that about the Asia 

           Pay, are, to the best of its knowledge, true, complete and accurate.

	 
	7.      	
Confidentiality.

	 
	 	7.1      	
CHOI and Asia Pay each agree to provide reasonable security measures to keep information confidential where release may be detrimental to their respective business interests. CHOI and Asia Pay shall each require their employees, agents, affiliates, other licensees, and others who will have access to the information through CHOI and Asia Pay respectively, to first enter appropriate non-disclosure Agreements requiring the confidentiality contemplated by this Agreement in perpetuity.

	 	
 

	 	7.2      	
CHOI will not, either during its engagement by the Asia Pay pursuant to this agreement or at any time thereafter, disclose, use or make known for its or another’s benefit, any confidential information, knowledge, or data of the Asia Pay or any of its affiliates in any way acquired or used by CHOI during its engagement by the Asia Pay. Confidential information, knowledge or data of the Asia Pay and its affiliates shall not include any information, which is, or becomes generally available to the public other than as a result of a disclosure by CHOI or its representatives.

	 
	8.      	
Miscellaneous Provisions.

	 
	 	8.1      	
Amendment and Modification. This Agreement may be amended, modified and supplemented only by written agreement of CHOI and Asia Pay.

	 
	 	8.2      	
Waiver of Compliance. Any failure of CHOI, on the one hand, or Asia Pay, on the other, to comply with any obligation, agreement, or condition herein may be expressly waived in writing, but such waiver or failure to insist upon strict compliance with such obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure.

	 

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8.3     Expenses: Transfer Taxes, Etc. Whether or not the transaction(s), if any, contemplated by this Agreement shall be consummated, CHOI agrees that all fees and expenses incurred by CHOI in connection with this Agreement shall be borne by CHOI and Asia Pay agrees that all fees and expenses incurred by Asia Pay in connection with this Agreement shall be borne by Asia Pay, including, without limitation as to CHOI or Asia Pay, all fees of counsel and accountants. 

8.4     Other Business Opportunities. Except as expressly provided in this Agreement, each party hereto shall have the right independently to engage in and receive full benefits from business activities. In case of business activities which would be competitive with the other party, notice shall be given prior to this Agreement or, if such activities are proposed, within ten (10) days prior to engagement therein. The doctrines of “corporate opportunity” or “business opportunity” shall not be applied to any other activity, venture, or corporation of either party. 

8.5     Compliance with Regulatory Agencies. Each party agrees that all actions, direct or indirect, taken by it and it's respective agents, employees and affiliates in connection with this agreement and any financing or underwriting hereunder shall conform to all applicable Federal and State securities laws. 

8.6     Notices. Any notices to be given hereunder by any party to the other may be effected by personal delivery in writing or in by mail, registered or certified, postage prepaid with return receipt requested. Mailed notices shall be addressed to the “Contact Person” at the addresses appearing in the introductory paragraph of this Agreement, but any party may change his address by written notice in accordance with this subsection. Notices delivered personally shall be deemed communicated as of actual receipt; mailed notices shall be deemed communicated as of five (5) days after mailing. 

8.7     Assignment. This agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns, but neither this Agreement nor any right, interest or obligations hereunder will be assigned by any of the parties hereto without the prior written consent of the other parties, except by operation of law. 

8.8      Delegation. Neither party shall delegate the performance of its duties under this agreement without the prior written consent of the other party. 

 

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8.9      Publicity. Neither CHOI nor Asia Pay shall make or issue, or cause to be made or issued, any announcement or written statement concerning this Agreement or the transaction contemplated hereby for dissemination to the general public without the prior consent of the other party. This provision shall not apply, however, to any announcement or written statement required to be made by law or the regulations of any Federal or State governmental agency, except that the party concerning the timing and consent of such announcement before such announcement is made.

8.10      Governing Law. This Agreement and the legal relations among the parties hereto shall be governed by and construed in accordance with the laws of Hong Kong, without regard to its conflict of law doctrine.

8.11      Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

8.12      Headings. The heading of the sections of this Agreement are inserted for convenience only and shall not constitute a part hereto or affect in any way the meaning or interpretation of this Agreement.

8.13      Entire Agreement. This Agreement, including any Exhibits hereto, and the other documents and certificates delivered pursuant to the terms hereto, sets forth the entire Agreement and understanding of the parties hereto in respect of the subject matter contained herein, and supersedes all prior agreements, promise, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party hereto.

8.14      Third Parties. Except as specifically set forth or referred to herein, nothing herein expressed or implied is intended or shall be construed to confer upon or give to any person or corporation other than the parties hereto and their successors or assigns, any rights or remedies under or by reason of this Agreement.

8.15      Attorneys’ Fees and Costs. If any action is necessary to enforce and collect upon the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees and costs, in addition to any other relief to which that party may be entitled. This provision shall be construed as applicable to the entire Agreement.

8.16      Survivability. If any part of this Agreement is found, or deemed by a court of competent jurisdiction to be invalid or unenforceable, that part shall be severable from the remainder of the Agreement.

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8.17 Further Assurances. Each of the parties agrees that it shall from time-to- time take such actions and execute such additional instruments as may be reasonably necessary or convenient to implement and carry out the intent and purpose of this Agreement.

	 
	 	
8.18 Right to Data After Termination. After termination of this Agreement each party shall be entitled to copies of all information acquired hereunder as of the date of termination and not previously furnished to it.

	 
	 	
8.19 Relationship of the Parties. Nothing contained in this Agreement shall be deemed to constitute either party to become the partner of the other, the agent or legal representative of the other, nor create any fiduciary relationship between them, except as otherwise expressly provided herein. It is not the intention of the parties to create nor shall this Agreement be construed to create any commercial relationship or other partnership. Neither party shall have any authority to act for or to assume any obligation or responsibility on behalf of the other party, except as otherwise expressly provided herein. The rights, duties, obligations and liabilities of the parties shall be separate, not joint or collective. Each party shall be responsible only for its obligations as herein set out and shall be liable only for its share of the costs and expenses as provided herein.

	 
	 	
8.20 No Authority to Obligate the Asia Pay. Without the consent of the Board of Directors of the Asia Pay, CHOI shall have no authority to take, nor shall he take, any action committing or obligating the Asia Pay in any manner, and it shall not represent himself to others as having such authority.

	 
	9.      	
Arbitration. WITH RESPECT TO THE ARBITRATION OF ANY DISPUTE, THE UNDERSIGNED HEREBY ACKNOWLEDGE THAT:

	 
	 	A.      	
ARBITRATION IS FINAL AND BINDING ON THE PARTIES;

	 
	 	B.      	
THE PARTIES ARE WAIVING THEIR RIGHT TO SEEK REMEDY IN COURT, INCLUDING THEIR RIGHT TO JURY TRIAL;

	 
	 	C.      	
PRE-ARBITRATION DISCOVERY IS GENERALLY MORE LIMITED AND DIFFERENT FROM COURT PROCEEDING;

	 
	 	D.      	
THE ARBITRATOR’S AWARD IS NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL REASONING AND ANY PARTY’S RIGHT OF APPEAL OR TO SEEK MODIFICATION OF RULING BY THE ARBITRATORS IS STRICTLY LIMITED;

	 
	 	E.      	
THE PANEL OF ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR ARE AFFILIATED WITH THE PAYMENTS INDUSTRY; AND

 

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F.      THIS ARBITRATION AGREEMENT IS SPECIFICALLY INTENDED TO INCLUDE ANY AND ALL STATUTORY CLAIMS WHICH MIGHT BE ASSERTED BY ANY PARTY.

G.      ALL DISPUTES, CONTROVERSIES, OR DIFFERENCES BETWEEN THE ASIA PAY, CHOI OR ANY OF THEIR OFFICERS, DIRECTORS, LEGAL REPRESENTATIVES, ATTORNEYS, ACCOUNTANTS, AGENTS OR EMPLOYEES, OR ANY CUSTOMER OR OTHER PERSON OR ENTITY, ARISING OUT OF, IN CONNECTION WITH OR AS A RESULT OF THIS AGREEMENT, SHALL BE RESOLVED THROUGH ARBITRATION RATHER THAN THROUGH LITIGATION.

H.      THE UNDERSIGNED HEREBY AGREES TO SUBMIT THE DISPUTE FOR RESOLUTION WITHIN FIVE (5) DAYS AFTER RECEIVING A WRITTEN REQUEST TO DO SO FROM ANY OF THE AFORESAID PARTIES.

I.      IF ANY PARTY FAILS TO SUBMIT THE DISPUTE TO ARBITRATION ON REQUEST, THEN THE REQUESTING PARTY MAY COMMENCE AN ARBITRATION PROCEEDING, BUT IS UNDER NO OBLIGATION TO DO SO.

J.      ANY HEARING SCHEDULED AFTER ARBITRATION IS INITIATED SHALL TAKE PLACE IN HONG KONG.

K.      IF ANY PARTY SHALL INSTITUTE ANY COURT PROCEEDING IN AN EFFORT TO RESIST ARBITRATION AND BE UNSUCCESSFUL IN RESISTING ARBITRATION OR SHALL UNSUCCESSFULLY CONTEST THE JURISDICTION OF ANY ARBITRATION FORUM, OVER ANY MATTER WHICH IS THE SUBJECT OF THIS AGREEMENT, THE PREVAILING PARTY SHALL BE ENTITLED TO RECOVER FROM THE LOSING PARTY ITS LEGAL FEES AND ANY OUT-OF-POCKET EXPENSES INCURRED IN CONNECTION WITH THE DEFENSE OF SUCH LEGAL PROCEEDING OR ITS EFFORTS TO ENFORCE ITS RIGHTS TO ARBITRATION AS PROVIDED FOR HEREIN.

L.      EACH PARTY WILL SIGN ANY REQUIRED OR APPLICABLE PAPERWORK AT THE TIME ANY DISPUTE IS SUBMITTED FOR ARBITRATION.

M.      THE PARTIES SHALL ACCEPT THE DECISION OF ANY AWARD AS BEING FINAL AND CONCLUSIVE AND AGREE TO ABIDE THEREBY.

N.      ANY DECISION MAY BE FILED WITH ANY COURT AS A BASIS FOR JUDGMENT AND EXECUTION FOR COLLECTION.

 

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	       	10.     	
Term of Agreement and Termination. This Agreement shall be effective upon execution, shall continue for one year.

		 

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

	ASIA PAY:     Asia Payment Systems, Inc. 
	 
	 
	                     
	By:        ROBERT CLARKE
	              Robert Clarke, Chairman
	 
	CHOI: 
	                                      
	By:         HARRY CHOI
	               Harry Choi 

 

 

 

 

 

 

 

 

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