Document:

Fashion Tech International: Exhibit 10.14 - Prepared by TNT Filings Inc.

  

 
Exhibit 10.14

 

(English Summary)

 

License Agreement

Ref: SX-D-050912-0157

Contractual Parties:  

Party A: Daqing Longheda Food Co., Ltd.

Address: Third Zone, Daqing High Tech Industrial Development Park, 163316
 

Party B:  Shanghai Shanda Xin Hua Interactive Entertainment Co., Ltd  

 

Party A desires to use the brand and the image of the online game “the World of Legend” when producing functional beverage.  Party B has the rights to, and agrees to authorize Party A to use the brand and the image of the online game “the World of Legend” to produce functional beverage. The Parties reach agreement as follows through amicable negotiation:
 

 

I. Scope of License:  

1.

Party B agrees to provide the brand and image of “the World of Legend” and authorize Party A to exclusively use such brand and image for production of functional beverage (“Licensed Products”); Party A is entitled to use the brand and image of “the World of Legend” on the package and design of advertising materials for the Licensed Products.

2.

Details about the Licensed Product are specified in Attachment 1 herein. If Party A desires to change or add to the list of the Licensed  Products, Party A shall provide to Party B relevant product development plan, and negotiate with Party B for signing a written addendum for such change or addition.
 

3.

Party A shall not use such brand and image for packaging, promotion or advertising for the Licensed  Product without Party B’s written consent;
 

4.

Party A’s use of such brand and image shall be limited to the Licensed Products. Party A shall not license the brand and image to any third party.

5.

Party A shall obtain any governmental approval for producing the Licensed Product.  Party A shall be responsible for the quality of the Licensed  Products and be liable for any related product liability. If Party A’s failure to fulfill its above-mentioned responsibilities or obligations subjected Party B to infringement or other claims, Party A shall use its best efforts to start solving any problems within seven business days at its own expense.  Party A shall indemnify Party B (including but not limited to Party B’s Licensor, shareholders, management team, employees, directors and agents). The expense borne by Party A shall include but not limited to litigation fees, arbitration fees, attorney fees, damages and any other related expense.    

 

 

 

II. Territory of License:  within Mainland China (excluding Hong Kong, Macao and Taiwan)

 

III. Term of License:  

1.

The term of the license shall be 3 years starting from September 15, 2005 to December 14, 2008; the period from September 15, 2005 to December 14, 2005 shall be the period of product planning.
 

2.

Party A shall enjoy a priority right to extend the Agreement upon the expiration of the Agreement if it has met the thresholds for sales amount for the three years as set in the Agreement. If the Parties do not reach an agreement on the extension of the Agreement one month before its expiration date, this Agreement shall automatically terminate upon the expiration date.

 

IV. Basic Fee and Commission for Extra Sales:  

1.

the royalty to be paid by Party A to Party B consists of basic fee and commission for extra sales, which shall be calculated as follows:
 

(1)

Basic fee: Party A shall pay to Party B the basic fee in accordance with the following provisions, no matter whether Party A has accomplished the minimum sales amount or not:
 

A.

For the first year (September 15, 2005 –December 14, 2006): minimum sales amount is RMB 20,000,000, and the basis fee is RMB 1,000,000.
 

B.

For the second year (December 15, 2006 –December 14, 2007): minimum sales amount is RMB 24,000,000, and the basis fee is RMB 1,200,000.

C.

For the third year (December 15, 2007 –December 14, 2008): minimum sales amount is RMB 28,800,000, and the basis fee is RMB 1,440,000.

(2)

Commission for extra sales: if Party A’s sales amount of a certain year is over the set minimum amount for that year, Party A shall pay to Party B a sum equal to 3% of the extra sales revenue.
 

 

 

 

V. Payment Time and Amount of the Basic Fee and Commission for Extra Sales:

1.

Within 7 days upon the execution of the Agreement Party A shall pay 50% of the basic fee of RMB 500,000 for the first year;

2.

Before March 31, 2006, Party A shall pay the rest 50% basic fee of RMB 500,000 for the first year;
 

3.

Before September 30, 2006, Party A shall pay 50% of the basic fee of RMB 600,000 for the second year and plus the extra sale commission of the first year;

4.

Before March 31, 2007, Party A shall pay the rest 50% basic fee of RMB 600,000 for the second year plus the extra sale commission for the period from September 2006 to the end of February 2007;

5.

Before September 30, 2007, Party A shall pay 50% of the basic fee of RMB 720,000 for the third year and plus the extra sale commission for the period from 1 March 2007 to 31 August 2007;   

6.

Before March 31, 2008, Party A shall pay the rest 50% of the basic fee of RMB 720,000 for the third year and plus the extra sale commission for the period from September 1, 2007 to the end of February 2008;

7.

Before September 30, 2008, Party A shall pay the extra sale commission for the period from March 1, 2008 to August 31, 2008.

 

VI. Confirmation and Auditing of Sales Amount:
 

1.

After the Licensed Products have been put into market, Party A shall provide to Party B quarterly financial statements for the sales of the Licensed Products, which shall be complete and accurate.
 

2.

Party B has rights to conduct on-site auditing by itself or by a third party appointed by Party B for the financial statements provided by Party A, and request Party A to provide relevant invoices or other evidential documents; Party A shall cooperate with Party B. Any expense arising thereof shall be borne by Party B, unless the outcome of the audit is not consistent with the data provided by Party A, under which circumstance, the expense shall be borne by Party A. Party B shall send a written notice to Party A two days prior to the auditing.  

3.

If there is any underpayment or non-payment of commission by
Party A, Party A shall promptly make the payment; if the amount regarding such
underpayment or non-payment is greater than 5% of the total payment due for that
period, Party A shall pay Party B double of the delinquent payment, plus the
expense of auditing fees, and attorney fees for investigating and examining such
underpayment or non-payment. If the amount regarding such underpayment or
non-payment has reached 10% of the total due payment of that certain period,
Party B shall be entitled to terminate this Agreement.       

 

   

 

VII. Copyright Acknowledgment:  

Party A is required to mark on the Licensed Products the following content concerning the copyright of the brand and the image:
 

Copyright Owner: Shanghai Shanda Interactive Entertainment Limited;

Agent: Shanghai Shanda Xin Hua Interactive Entertainment Limited

Licensee: Daqing LongHeDa Food Co., Ltd  

 

VIII. Product Examination:

1.

Before manufacturing the Licensed Products, Party A shall provide two samples of the Licensed Products for Party B’s examination and written approval. Party B shall respond to Party A within 2 weeks. If Party B has any suggestion for changes, Party A shall cooperate and make the changes accordingly and provide the revised sample for Party B’s examination. Any products produced and put into market without Party B’s written consent shall be deemed as non-conforming products and shall be called back by Party A within 7 days, under which circumstance Party A shall be liable for breach of the Agreement and infringement of Party B’s legitimate rights.   

2.

Before working on any advertisement and promotion material for the Licensed  Products, Party A shall send the relevant design draft or plan for Party B’s confirmation. Party B shall respond in writing within 1 week. If Party B has any suggestion for changes, Party A shall cooperate and make the changes accordingly and provide the revised material for Party B’s confirmation.

3.

At the same time when Party A provides Party B with samples of the Licensed Products, it shall inform Party B in writing of its relevant production plan.
 

4.

Within 10 days of the manufacture of the first batch of the Licensed Products, Party A shall send 10 finished products (including the advertising material) to Party B free of charge for Party B’s record. All finished products shall be in conformity with the sample approved by Party B; otherwise Party A shall not be allowed to sell such products.
 

 

 

 

IX. Confidentiality  

1.

“Confidential Information” refers to information obtained, directly or indirectly, by any director, employee, staff, agent or counsel of one Party from the other Party or its counsel before or after the execution of this Agreement, which is of any nature (including commercial, financial, operational, management, legal information or other information); such information may be disclosed by any means, including but not limited to the ways of written document, oral form or telecommunication. Confidential Information includes but not limited to sales data, marketing plan, commercial schedule, financial information, client information, supplier information, employee information, know-how, commercial secret, and any other information of technological, scientific and commercial nature; Confidential Information shall also include any analysis report, list, research report or similar documents, which are formed based on the foresaid information, and any documents or materials prepared by the disclosing Party or its director, employee, staff, agent or counsel enclosing, reflecting or based on such information.
 

2.

Without disclosing Party’s prior written consent, the other Party shall keep confidential the Confidential Information and shall not use or divulge such Confidential Information to any third party, unless such usage or divulgence is necessary for normal performance of this Agreement.
 

3.

The Parties shall keep confidential the cooperation between them and the content herein; either Party shall not disclose to any third party any information about the cooperation between them and the content herein without the other Party’s prior written consent. However, Party A shall be entitled to disclose documents or reports in any form pursuant to requirements of the US Securities and Exchange Commission concerning such cooperation of the Parties, or disclose such cooperation to its investors by means of press conference or by any other method.
 

4.

The term of the confidentiality clauses herein shall start from the effective date of this Agreement and extend to three years after the termination date of the Parties’ business cooperation under this Agreement.

 

 

 

X. Infringement:

Unless otherwise stipulated in Article XI of this Agreement, the
licensed territory, and the scope of the Licensed Products, Party A shall have
obligations to independently act against any infringement to the licensed brand
and image. Party B shall use its best efforts to cooperate and assist Party A in
this regard.
 

 

XI. Licensor’s Purchase:  

In case where Party B desires to purchase Party A’s Licensed Products, Party A shall offer the best price based on the cost of the products. Party A is entitled to be the sole supplier of the Licensed Products to Party B. The detailed purchase amount and sales territory for the specific products shall be negotiated by the Parties and a separate agreement shall be reached to that effect. Party B shall act as a special distributor of the Licensed Products and enjoy the rights of direct sales of such products.  

 

XII. Termination:  

1.

To protect its rights in the brand “the World of Legend”, Party B is entitled to terminate the Agreement by giving written notice to Party A upon the occurrence of following events:

(1)

Any major quality problems with the Licensed Products lead to adverse penalty publicity by relevant consumer organization or the Licensed Products has evaluated by competent government agencies as nonconforming products;

(2)

Party A stops operation of its business for no good reason. Party A has been dissolved or changed to a business address unknown to Party B;

(3)

Party A has deteriorated credit record, goes bankrupt or experience negative events that have tarnished its creditworthiness (such as serious consumer dispute, or violation of state regulations).      

2.

Party B shall be liable to Party A if any of the following happens:

(1)

During the term of this Agreement, if Party B grants license to any third party to use the licensed brand and image to manufacture functional beverage similar to the Licensed Products, Party A is entitled to terminate the Agreement and request refund of any basic fee and commission for extra sales paid to Party B and any losses arising thereof.

(2)

If Party A has any evidence to prove that there occurs any force majeure event that has prevented Party A from performing its obligations under this Agreement, Party A is entitled to terminate the Agreement prior to the expiration date and Party B shall give its consent accordingly, provided, however, that Party A shall be obligated to pay the basic fee and commission for extra sales for any finished products.     

 

 

 

XIII. Inventory

If this Agreement is not renewed upon its expiration, Party A shall stop manufacturing any products using the brand and image of “the World of Legend”. Any unsold products manufactured before the expiration date may be sold within 6 months after the expiration date provided that the inventory has been examined by Party B and the commission for the sale of the inventory will be paid. The unsold inventory beyond the 6-month period can only be sold upon Party B’s written consent.    

 

XIV. Support on Advertisement  

To support Party A’s marketing efforts for the Licensed Products, Party B agrees to advertise such products through Party B’s marketing channel 2 months before the Licensed Products will be put on market.
 

 

XV. Miscellaneous:  

1.

Any issue not stipulated in this Agreement shall be separately negotiated by the parties and a supplemental agreement shall be reached accordingly.
 

2.

Any dispute arising hereof, which can not be solved by the parties’ negotiation and is to be brought for litigation, shall be submitted to Party B’s local court.

3.

The Agreement shall become effective upon the date when the first basic fee is paid in accordance with the Agreement.

4.

The Agreement is prepared in four counterparts and each Party shall hold two copies.
 

 

XVI.

The attachments to this Agreement shall
be an indivisible part of this Agreement, and shall have the same legal effect
as this Agreement. The attachments herein include: (1) specification of the
Licensed Products; (2) copies of the Parties' business license.

 

 

 

 

Execution: 

Party A: Daqing Longheda Food Co.,
Ltd. 

Party B: Shanghai Shanda Xin Hua Interactive Entertainment Co., LtdFashion Tech International, Inc.: Exhibit 10.15 - Prepared by TNT Filings
Inc.

  

 
Exhibit 10.15

FEZDALE INVESTMENTS LIMITED

P.O. Box 957, Offshore Incorporations Centre,

Road Town, Tortola, British Virgin Islands

August 14, 2008

By Hand Delivery

Cheng Sing Kau, Colman

 

Dear Mr. Cheng Sing Kau, Colman:

The purpose of this letter agreement (the “Agreement”) is to confirm your employment arrangement with Fezdale Investments Limited, on the following terms and conditions:

1.

Duties. You will be employed as the Chief Financial Officer of FEZDALE INVESTMENTS LIMITED and its subsidiaries (collectively the “Group”), subject to the supervision of the board of directors.  Your duties will include, but not be limited to, management of the accounting and financial strategy of the Group, implementing the Group’s business plan as the most senior executive officer of the Group, and responsibility for (i) all financial management and accounting for the Group, (ii) compliance with local GAAP principles (and in a form that can be converted into US GAAP) and all applicable regulatory authorities, and (iii) supervising the Group’s compliance with any SEC reporting obligations, its internal controls and other corporate governance obligations, the Sarbanes-Oxley Act and other applicable securities laws.  You shall devote your entire business time, energies, attention and abilities to the business of the Group unless otherwise authorized by the board of directors.  During your employment by the Group, you shall not engage in any activity or have any business interest which in any manner interferes with the proper performance of your duties, conflicts with the interest of the Group or brings into disrepute the business reputation of the Group.

2.

Salary.  Your salary will be at the rate of Six Hundred Thousand Renminbi (RMB 600,000) per year, to be paid in monthly installments or otherwise in accordance with the Group’s normal payroll practices.

3.

Bonus.  You shall be eligible for a bonus, which will be payable in the sole discretion of the Group based upon your performance and the Group’s performance during any year of your employment with the Group.
 

4.

Term of Employment.  Either you or the Group may end your employment with 2 months notices or two months salary in lieu of notice.

5.

Vacation.  You shall be entitled to accrue up to twenty paid vacation days per year.  You may not take more than 10 vacation days consecutively.  All vacation days will be taken at times mutually agreed by you and the Group and will be subject to the business needs of the Group.  Vacation days will not be carried over to future years of employment.

6.

Incentive and Other Plans.  You will be entitled to participate in such pension, major medical, life insurance and other plans and benefit programs as may be made available from time to time to employees of the Group having responsibilities comparable to yours and under the terms of which you are eligible to participate.

7.

Group Policies.  You shall at all times be subject to and comply with policies, rules and procedures of the Group then in effect, including without limitation with respect to hours of work, holidays, vacation and sick leave and pay, conflict of interest, improper payments, political contributions and payments to government officials.

8.

Patents.  You hereby assign to the Group all rights to any inventions, techniques, processes, concepts, ideas, programs, source codes, formulae, research and development and marketing plans, whether or not patentable or copyrightable, made, conceived or reduced to practice by you during the course of your employment by the Group.

9.

Covenants.  During your employment by the Group and at all times thereafter, you shall not (a) disrupt, disparage, impair or interfere with the business of the Group or (b) disclose to anyone else, directly or indirectly, any proprietary or business sensitive information concerning the business of the Group or use, or permit or assist, by acquiescence or otherwise, anyone else to use, directly or indirectly, any such information.  Such information shall include information not previously made generally available to the public or to the trade by the Group’s management, with respect to the Group’s or any of its affiliates’ products, facilities, applications and methods, trade secrets and other intellectual property, systems, procedures, manuals, confidential reports, product price lists, customer lists, technical information, financial information (including the revenues, costs or profits associated with any of the Group’s products), business plans, prospects or opportunities, or other information to the extent not generally known to the public which, if released to unauthorized persons, could be detrimental to the reputation or business interests of the Group or parties with which the Group contracts or which would permit such person to benefit improperly.  Such information does not include any information which is or becomes generally available to the public or is generally known in the industry or industries in which the Group operates other than as a result of disclosure by you in violation of this agreement.

10.

Group Property.  Upon termination of your employment for any reason, you shall promptly deliver to the Group all property belonging to Group, in whatever form, and shall not retain any copies of any correspondence, reports, lists or other documents relating in any way to the affairs of the Group or its clients.

11.

Non-Solicitation.  During the term of your employment by the Group and for a period of two (2) years following the termination of your employment, whether voluntary or involuntary, you shall not, directly or indirectly:

(a)

solicit customers or business patronage of the Group or any of its affiliates, or

2

 

(b)

approach or attempt to induce any person who is then in the employ of the Group to leave the employ of the Group or employ or attempt to employ any person who was in the employ of Group at any time during the prior twelve months.

12.

Non-Competition. In addition, and not in lieu of, any other agreements of Employee not to compete with, solicit employees or customers of, or solicit others having a relationship with the Group, Employee agrees that for the duration of his employment with and for two (2) years after the termination of Employee’s employment with the Group (the “Non-Competition Period”): Employee shall not, directly or indirectly, engage in, or have any interest in, any person, firm, corporation, undertaking or business (whether as an executive, officer, director, employee, agent, security holder, consultant, investor or similar position) that engages in a fruit processing business (“Competitive Business”).

Notwithstanding the above, the Employee may own, as an investor, holdings as part of a portfolio investment through mutual funds or other funds pooling investments in different corporations (the stock of which is publicly traded) some of which may be engaging in a Competitive Business, in each case when any and all the investment and voting decisions with respect to such voting stock are made by an unaffiliated third party fund manager; and

The Employee may serve as a shareholder, director, employee or officer of any entity that is not engaged in a Competitive Business.

13.

Notices. All notices hereunder shall be to the parties’ addresses set forth above for the Group and on the Signature Page for you, in writing and given by registered or certified mail, return receipt requested, postage and registration fees prepaid, and shall be deemed given when so mailed.  The addresses set forth herein may be changed by notice given in the manner set forth in this Section.

 3

 

14.

Miscellaneous.  This Agreement (a) shall be governed by, and construed in accordance with, the Chinese laws, without regard for the conflict of laws principles thereof, (b) shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, legal representatives and assigns, but neither this Agreement nor any rights hereunder will be assignable or otherwise subject to hypothecation by you, (c) may not be changed orally but only by an agreement in writing signed by the party against whom any waiver, change, amendment, notification or discharge is sought, and (d) contains the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, oral or written, between the parties hereto.  The invalidity of all or any part of any section of this Agreement shall not render invalid the remainder of this Agreement.  If any provision of this Agreement is so broad as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable.

 

Very truly yours,

Fezdale Investments Limited

 

By:  /s/ Kung Yiu Fai

Name: Kung Yiu Fai

Title: Director  

 

ACCEPTED AND AGREED TO  

AS OF THE DATE FIRST ABOVE

WRITTEN:

 

 

/s/ Cheng Sing Kau, Colman

Cheng Sing Kau, Colman

 

Address:  Room 2207, Block C, Kornhill,  

    Quarry Bay, Hong Kong

 

4

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