Document:

World of Tea Inc.: Exhibit 10.1 - Prepared by TNT Filings Inc.

  

(English Translation) 

  Shandong Yinguang
  Internet Technology Co., Ltd 

  
  Chinese-foreign Equity Joint Venture Contract 

  
  Between 

  
  Shandong Linyi
  Yinguang Fusi Internet Digital Technology Co., Ltd 

  And 

  
  BroadWebAsia, Inc.
  

 

 

Chapter 1 General Provisions 

Shandong Linyi Yinguang Fusi Internet Digital Technology Co.,
Ltd and BroadWebAsia, Inc., on the basis of the principle of equity and mutual
benefit and pursuant to the Equity Purchase Agreement executed by both parties,
agree to jointly invest 1.2 million USD to establish a joint venture enterprise
in Shandong Linyi. 

Chapter 2 Parties 

Article 1     Parties of this contract are as follows:

(1) Shangdong Linyi Yinguang Fusi Internet Digital Technology Co., Ltd
(hereinafter referred to as Party A) 

Registered address: No. 16, Lantian Pedestrian Street Furen Street, Lanshan
District, Linyi City, Shandong Province, China 

Legal representative: Sun Bowen 

Position: Chairman of the board 

Nationality: China 

Telephone: 086-539-8226109 

(2) BroadWebAsia, Inc. 

Registered address: 9255 Sunset Blvd., Suite 1010 Los Angeles, California
90025 USA 

Legal representative: Daniel Yeh

Nationality: USA 

Telephone: 001-310-550-5911 

Chapter 3 Establishment of the Joint Venture Company 

Article 2     In accordance with the "Law
of the People’s Republic of China on Chinese-foreign Equity Joint Venture",
Party A and Party B reach an agreement on the foundation of the joint venture.

Article 3    
The name of the company: 山东银光网络技术有限公司

English name: Shandong Yinguang Internet Technology Co., Ltd. 

Legal address: No. 129, Heping road, Fei County, Linyi City, Shandong Province.

Article 4     All the activity of the joint venture shall
be subject to the relevant laws and regulations of People’s Republic of China.

2 

Article 5     The organization form of the joint venture
company is a limited liability company. Each party is liable to the joint
venture company within the limit of the capital subscribed by it. The profit,
risks and losses of the joint venture company shall be shared by the parties in
proportion to their contributions of the registered capital. 

Chapter 4 Scope and Achievements 

Article 6     The aim of the joint
venture is, by the using of advanced network technology and abundant capital to
develop the international market and enforce economic cooperation, in order to
create favorable social and economic efficiency. 

Article 7     The scope of the company includes
manufacture and development of network software; consultation of network
technology; establishment of website; design, making and publication of webpage,
network cartoon, network advertisement. 

Article 8     Achievement of the joint venture company:
the value of the website www.9E3.com will increase 300% within 18 months after
the jointly investment and become the top 100 in China. 

Chapter 5 Total Amount of Investment and the registered
Capital 

Article 9     The total amount of the joint venture is
1.2 million USD with full amount of register capital. 

Article 10     Party A will invest RMB 4.74 million on
cash, (equal to 0.6 million USD with the exchange rate 1:7.9), accounting for
50% of the total amount . Party B will invest 0.6 million USD on cash remitting,
accounting for 50% of the registered value. 

Article 11     The registered capital of the joint
venture company shall be paid in by Party A and Party B according to their
respective proportion of their investment, two times within 3months after the
day the business license issued. (at the first time of getting the certificate
license , the amount of $ 0.3 million should be paid first ) and the local
qualified accounting firm shall issue the Capital Verification Report. 

Article 12     Increase, reduction and transition of the
registered capital shall be permitted by the Board of Director and approved by
the examination government, and modification register shall be made in State
Administrative Industry and Commerce Bureau. If any party herein intends to
transfer the whole or part shares to any third party, it shall get consent of
the other party. If the other party disagrees the shares transfer, it shall
purchase such shares. Or it is deemed as the approval of the shares transfer.
When one party transfer whole or part of its shares, the other party has the
priority of purchase. 

3 

Chapter 6 Responsibilities of Each Party 

Article 13     Party A and Party B shall be respectively
responsible for the following matters: 

Responsibilities of Party A: 

(1) Handle of applications for approval, register, business license and other
matters; 

(2) Pay the required contribution according to Article 10 an Article 11 herein;

(3) Distribute the operating management personnel and technical staff and other
needed talents to the joint venture and assist to employ;

(4) Transfer the website www.9E3.com and related equipments of the original
company to the joint venture and in charge of take charge the relevant transfer
procedure; 

(5) Deal with other matters assigned by joint venture. 

Responsibilities of Party B: 

(1) Pay the required contribution according to article 10 an article 11 in
the contract; 

(2) Provide foreign advanced technology and plans of market operating; 

(3) Assist the joint venture company in international market’s operation; 

(4) Deal with other matters assigned by joint venture. 

Chapter 7 Board of Directors 

Article 14     The joint venture company establishes the
Board of Directors. The date of registration of the joint venture company shall
be the date of the establishment of the Board of Directors. The Board of
Directors is the highest authority of the joint venture, which has the power to
determine the material events, operation plans and management strategy. The
decision shall be made on the approval of the unanimous agreement of the Board
of Directors. For other matters, the method of majority and simple majority
shall be adopted. The Board of Directors is composed of three directors (Party
A’s founders and representative of Party B’s investor). Among which, one is
chairman appointed by Party A and other two are directors respectively appointed
by Party A and Party B. One supervisor shall be elected by Party B, whose term
is four years and can be renewed if continuously appointed by the appointer. The
voting right of shareholders’ meeting and Board of Directors shall be executed
pursuant to contribution proportion. Chairman of director and the directors’
term is four year and can be renewed if continuously appointed by the appointer.

Article 15     The chairman of the board is the legal
representative of the joint venture company. Should the chairman be unable to
exercise he responsibilities for some reasons, he shall authorize any other
directors to represent the joint venture company temporarily. 

4 

Article 16     The board of directors shall convene at
least one meeting every one year. The meeting shall be called and presided over
by the chairman of the board. The chairman may convene an interim meeting based
on a proposal made by more than one third of the total number of directors.
Minutes of the meetings shall be placed on file. If the president cannot present
by reasons, he or she can appoint other one in writing. 

Chapter 8 Business Management Office 

Article 17     The joint venture company shall establish
a management office which shall be responsible for its daily management. The
management office shall have one general manager, and one deputy general
manager. The first general manager shall be recommended by party A and be
assisted by the deputy manager. The management office can be divided into
several departments and each of which are responsible for their own department
and carry out what the general manager and deputy manager have assigned, and are
also responsible for them. 

Article 18     In case of graft or serious dereliction of
duty on the part of the general manager and deputy general managers, the Board
of Directors shall is entitled to dismiss them at any time. 

Chapter 9 Purchase of Equipment and Stock-In-Trade 

Article 19     Under same conditions, the
joint venture company shall give first priority to purchase required equipment,
stock-in-trade, transportation and office supplies or others in China. 

Article 20     In case the joint venture
company purchase equipment or stock-in-trade from overseas market, it shall be
agreed by both parties herein, and the price should not be higher than that of
same goods in international market. 

Chapter 10 Labor Management 

Article 21 Labor contract covering the recruitment,
employment, dismissal and resignation, wages, labor insurance, welfare, rewards,
penalty and other matters concerning the staff and the workers of the joint
venture company shall be drawn up between the joint venture company and the
Labor Union of the joint venture company as a whole or individual employees in
accordance with the "Regulations of the People’s Republic of China on labor
Management in Equity Joint Ventures Enterprise". The labor contract shall, after
being signed, be filed with the local labor management department. 

5 

Article 22     The appointment of senior
administrative personnel recommended by both parties, and their treatment, such
as salaries, social insurance, welfare and the standard of travel expenses,
shall be decided by the Board of Directors. 

Chapter 11 Finance, Accounting, Audit and Tax 

Article 23     The financial system shall
be established according to the Accounting System of China and Foreign-invested
Enterprise and Accounting Items and Accounting Statements of China and
Foreign-invested Industrial Enterprise issued by the People’s Republic of China
Financial Department and company’s actual conditions, and carry out after the
approval of the Board of Directors. 

Article 24     Financial checking and
examination of the joint venture company shall be conducted by an auditor
registered in China and reports shall be submitted to the Board of Directors and
the general manager. 

Article 25     In the first three months
of each fiscal year, the general manager shall prepare previous year’s proposal
regarding the disposal of profits, and submit them to the Board of Directors for
examination and approval. And in the last three months of each fiscal year, the
general manager shall submit next year’s business and budget plan to the Board
of Directors for examination and approval. 

Article 26     The joint venture company
shall allocate reserve funds, bonuses and welfare funds for staff and workers
and expansion funds for the company according to Law of the People’s Republic of
China on Chinese-foreign Equity Joint Venture. Board of Directors shall decide
each year’s proportion of allocation, actual amount of these three funds every
year and the profit-distributable amount. 

Article 27     Staff members and workers
of the joint venture company shall pay individual income tax according to the
"Individual Income Tax Law of the People’s Republic of China". 

Chapter 12 Duration of the Joint Venture Company 

Article 28     The duration of the joint
venture company is 20 years. The establishment of the joint venture company
shall start form the date on which the business license of the joint venture
company is issued. 

An application for the extension of the duration, proposed by
one party and unanimously approved by the Board of Directors, shall be submitted
to relevant authority six months prior to the expiry date of the joint venture.

6 

Chapter 13 The Disposal of Assets After the Expiration of the
Duration 

Article 29     Upon the expiration of the
duration or termination before the date of expiration of the joint venture,
liquidation shall be carried out according to the relevant law. The liquidated
assets shall be distributed in accordance with the proportion of investment
contributed by both parties. 

Chapter 14 Insurance 

Article 30     The joint venture company may choose
insurance company. The types, value and duration of insurance shall be decided
by the Board of Directors. 

Chapter 15 The Amendment, Alteration and Discharge of the
Contract 

Article 31     The amendment of the
contract or other appendixes shall come into force only after the written
agreement signed by Party A and Party B and approved by the original examination
and approval authority. 

Article 32     In case of inability to
fulfill the contract or to continue operation due to heavy losses in successive
years as a result of force majeure, the duration of the joint venture and the
contract shall be terminated before the time of expiration after unanimously
agree upon by the Board of Directors and approved by the original examination
and approval authority. 

Article 33     If one party fails to
fulfill the obligations of this contract, the party shall be deemed as
unilaterally terminates the contract. The other party shall have the right to
terminate the contract in accordance with the provisions of the contract after
approved by the original examination and approval authority as well as to claim
damages. 

Chapter 16 Liabilities for Breach of Contract 

Article 34     Any party fails to pay
required contribution on time according to Chapter 5 herein, other party is
entitled to terminate this contract in accordance with Article 37 herein and to
claim damages to the breaching party. 

Article 35     Should all or part of the
contract and its appendices be unable to be fulfilled owing to the fault of one
party, the breaching party shall bear the responsibilities thus caused. Should
it be the fault of both parties, they shall bear their respective
responsibilities according to actual situation. 

7 

Chapter 17 Force Majeure 

Article 36     Should either of parties
to the contract be prevented from executing the contract by force majeure, such
as earthquake, typhoon, flood, fire and war and other unforeseen events, and
their happening and consequences are unpreventable and unavoidable, the
prevented party shall notify the other party by cable without any delay, and
within 15 days thereafter provide the detailed information of the events and a
valid document for evidence issued by the relevant notary organization for
explaining the reason of its inability to execute or delay the execution of all
or part of the contract. Both parties shall, though consultations, decide
whether to terminate the contract or to exempt the part of obligations for
implementation of the contract or whether to delay the execution of the contract
according to the effects of the events on the performance of the contract. 

Chapter 18 Governing Law 

Article 37     The execution, validity, interpretation
and settlement of the dispute of this contract shall be governed by the related
laws of the People’s Republic of China. 

Chapter 19 Settlement of Disputes 

Article 38     Any disputes arising from
the execution of, or in connection with the contract shall be settle through
friendly consultations between both parties. In case no settlement can be
reached through consultations, the disputes shall be submitted to the Foreign
Economic and Trade Arbitration Commission of China for arbitration in accordance
with its rules of procedure. The arbitral award is final and binding upon both
parties. 

Article 39     During the arbitration, the contract shall
be executed continuously by both parties except for matter in disputes. 

Chapter 20 Writing 

Article 40     This contract shall be written in Chinese.

Chapter 21 Effectiveness and Miscellaneous 

Article 41     This contract and its appendices shall be
effective on the date of approval by relevant authority. 

Article 42     Should notices in connection with any
party’s rights and obligations be sent by either Party A or Party B by
telephone, fax or email, the written letter notices shall be also required
afterwards. The legal addresses of Party A and Party B listed in this contract
shall be the posting addresses. 

8 

Article 43     For any other matters with are not covered
in this contract or conflict with Equity Purchase Agreement, the Equity Purchase
Agreement will prevail. 

Article 44     Each party holds one copy of this
contract. 

	Party A:
    Shangdong Linyi Yinguang Fusi	Party B:
    BroadWebAsia, Inc
	Internet Digital
    Technology Co., Ltd	 
	 	 
	By: /s/	By: /s/
	 	 
	Date: November
    14, 2006	Date: November
    14, 2006

9World of Tea Inc.: Exhibit 10.2 - Prepared by TNT Filings Inc.

  

(English Translation) 

	
    
     

    
    Beijing Souyo Digital Technology Co. Ltd. 

     

    Articles of Association of Equity Joint Venture Company
    

     

     

    
    Between 

    Beijing Dongfang Shang You Tech Co., Ltd 

    And 

 

    BroadWebAsia, Inc. 

     

 

Chapter 1 General Provisions

Article 1

In accordance with the “Law of the People’s Republic of China on Chinese-foreign
Equity Joint Venture” and the Equity Joint Venture Contract about establishment
of Beijing Souyo Digital Technology Co., Ltd (“the EJV company”) executed on
December 20, 2006, Beijing Dongfang Shang You Tech Co., Ltd and BroadWebAsia,
Inc. formulate this Articles of Association.

 

Article 2

The name of the company: 北京搜友数码科技有限公司

English name: Beijing Souyo Digital Technology Co., Ltd

Legal address: Room 508, Building 2, No. 15, the fourth district of An 

Huili , Chaoyang District, Beijing.

Article 3

Parties of this contract are as follows:

Party A: Beijing
Dongfang Shang You Tech Co., Ltd registered in Beijing.

Legal
address: Room 403, 4th floor, Yanguang Xinlong Market, No. 6, Jiu 

Xianqiao Road, Chaoyang District, Beijing.

Legal representative: Xiang Ming

Title: Chairman of the board

Nationality: China

Party B: BroadWebAsia,
Inc. registered in BVI

Nationality: USA

Registered address: Commonwealth Trust Limited, Drake Chambers, Tortola, 

British Virgin Islands

Legal representative: Daniel Piin Shyan Yeh

Title: CEO

Nationality: USA

Any information hereinbefore changed shall be noticed to other party hereby
immediately.  Otherwise, the EJV company and the other party shall not take
legal responsibility due to such change.

 

Article 4

The organization form of the EJV company is a limited liability company.

 

Article 5

The EJV company is Chinese legal person, and all the activity of the EJV company
shall be subject to the relevant laws and regulations of People’s Republic of
China.

2

Chapter 2 Scope and Achievements

Article 6

The aim of the EJV is, by the using of advanced network technology and abundant
capital to develop the international market and enforce economic cooperation, in
order to create favorable social and economic efficiency.

 

Article 7

The scope of the EJV company includes development of computer and internet
software.

Chapter 3 Total Amount of Investment and the registered Capital

Article 8

The total amount of the EJV company is RMB 1.4 million and the registered
capital is RMB 1 million.

 

Article 9

The required contribution of Party A is RMB 0.63 million, accounts for 63% of
the registered capital and the required contribution of Party B is RMB 0.37
million, accounts for 37% of the registered capital.

 

Article 10

The registered capital of the EJV company shall be paid in by Party A and Party
B according to their respective proportion of their investment in two times.
 The first time shall be paid 70% of the registered capital, among which Party A
pay RMB 0.44 million and Party B pay RMB 0.28 million, and shall be paid up
within 3 months after the day the business license issued.  The second time
shall be paid 30% of the registered capital, Party A and Party B according to
their respective proportion of their investment within 1 year after the day the
business license issued.

 

Article 11

Within 15 days after the first investment is paid by the parties, a Chinese
registered accountant retained by the EJV company shall verify it and provide a
report of verification.  With in 30 days after the EJV company received the
verification report, an investment certificate shall be issued to investors and
be filed with original approval authority and AIC.

 

Article 12

The adjustment of registered capital and total amount of investment shall be
approved by relevant authority.  And the EJV company shall not reduce its
registered capital during the term of the joint venture.

 

Article 13

If one party to the EJV company intends to assign all or part of his investment
subscribed to a third party, consent shall be obtained from the other party to
the joint venture, other party has priority of purchase.

 

Article 14

Any increase, reduction of the registered capital of the EJV company shall be
approved by a meeting of the Board of Directors and submitted to the examination
and approval authority for approval.  Registration procedures for changes shall
be dealt with at AIC.

3

 

Article 15

The EJV company may get domestic or overseas loans to settle the difference
between registered capital and total amount of investment and liquid capital of
production.  Without the prior written consent, any party shall not set pledge
or mortgage on all or part of the EJV company’s shares.

Chapter 4 Board of Directors and Management Office

Article 16

The date of registration of the EJV company shall be the date of the
establishment of the Board of Directors.  The highest authority of the EJV
company shall be its Board of Directors.

 

Article 17

The Board of Directors is composed of four directors, among which, two shall be
appointed by Party A and two shall be appointed by Party B.  Chairman of the
board shall be appointed by Party A and Vice chairman shall be appointed by
Party B.  The office term of chairman and vice chairman of the board is 3 years
and may be renewed if continuously appointed by the relevant party.
 Notwithstanding the appointment or change of directors shall be noticed to
other party in writing and be filed with AIC.

 

Article 18

The Board of Directors shall decide all major issues, including:

 

(1) amending the Articles of Association;

(2) making plans of company’s merger or division

(3) discussing and deciding the termination and dissolution of the EJV company;

(4) deciding the increase of registered capital and total amount of investment
and shares transfer;

(5) deciding invest to other organization;

(6) deciding to set up branches;

(7) making distribution plan of annual profits;

(8) deciding the proportion of reserve funds, bonuses and welfare funds for
staff and workers and expansion funds;

(9) deciding material financial expense;

(10) making annual and long-term production plan and sales plan;

(11) any assurance and loans provided by the EJV company;

(12) deciding the establishment of internal management office;

(13) making the internal management system;

(14) deciding the engagement of senior managers and their treatments;

(15) deciding the retain of registered accountants, auditor, and attorney;

(16) litigation and arbitration sued by the EJV company;

(17) deciding the sale of fixed asset;

(18) others.

4

 

As for the following issues unanimously approval shall be required:

 

(1) amending the Articles of Association;

(2) discussing and deciding the termination and dissolution of the EJV company;

(3) deciding adjustment of registered capital;

(4) making plans of company’s merger or division;

(5) deciding the shares transfer by one or several parties;

(6) deciding the shares pledge by one or several parties;

(7) deciding the pledge of assets;

(8) others;

 

For other matters,  the method of majority and simple majority shall be adopted.

 

Article 19

The chairman of the board is the legal representative of the EJV company. Should
the chairman be unable to exercise he responsibilities for some reasons, he
shall authorize any vice chairman or other directors to represent the EJV
company temporarily.  If chairman of the board fails to authorize any one, the
vice chairman shall take the responsibilities.

 

Article 20

The board of directors shall convene at least one meeting every one year.  The
meeting shall be called and presided over by the chairman of the board.  The
chairman may convene an interim meeting based on a proposal made by more than
one third of the total number of directors. Minutes of the meetings shall be
placed on file.

The chairman shall give each director a written notice thirty (30) days before
the date of the board meeting.  The notice shall cover the agenda, time and
place.

 

Article 21

A board meeting requires over 2 directors (a quorum of over two-thirds of the
directors).  Each director has one voting right.

 

Article 22

Each party shall be sure the directors appointed by them attend the board
meeting.  Should the director be unable to attend, he shall present a proxy
authorizing someone else to represent him to attend the meeting.

 

Article 23

In the event that director(s) designated by a Party or Parities fails to attend
the board meeting personally or with proxy, which makes the board unable to pass
resolution on important issues provided by laws, regulations, Contract and the
Article of Association, other Parties may deliver to the absent director(s) and
the party or parties who designate them again the written notice of requesting
them to attend the board meeting on the time specified, according to the legal
address.

5

 

Article 24

Notice in Article 23 which shall be delivered at least 60 days before the
convening date of the meeting in a manner of double registered mail, shall state
that the notice receiver shall respond in written letter of attending the board
meeting or not in at least 45 days after the notice is delivered. If the notice
receiver fails to deliver the response to the notifying Party or deliver the
response of absenting from the board meeting, it is deemed as waiver by the
notice receiver. the director designated by the notifying Party and other
directors may convene the board meeting regardless of the quorum, and pass
binding resolutions on important issues of the EJV company with unanimous
consent by the present directors.  Chairman of the board may request for written
opinion from all directors for the actions that require approval by board
meeting. Where written consent by the directors above the quorum is acquired, it
is deemed as a resolution passed by the board meeting in a traditional way.

 

Article 25

The EJV company will not pay the director who fails to sever in the business
operation departments of the EJV company. The EJV company will bear all the
expenses relating to the convention of the board meeting.

 

Article 26

The EJV company has a supervisor designated by shareholders without establishing
a board of supervisors. Each term of office of the supervisor shall be three
years. The supervisor may, after the expiry of his or her term of office, hold a
consecutive term upon re-election.

 

The supervisor may exercise the following powers:

 

(1) To check the financial affairs of the EJV company;

(2) To supervise the duty-related acts of the directors and senior managers, to
put forward proposals on the removal of any director or senior manager who
violates any law, administrative regulation, the articles of association or any
resolution of the shareholders' meeting;

(3) To demand any director or senior manager to make corrections if his act has
injured the interests of the EJV company;

(4) To put forward proposals at shareholders' meetings; and

(5) To initiate actions against directors or senior managers in accordance with
Article 152 of Company Law.

Chapter 5 Business Management Office

Article 27

The EJV company shall establish a management office which shall be responsible
for its daily management.  The management office shall have one general manager
and one depute general manager, who shall be recommended by party A.  The
general manager and deputy manager shall be hired by the Board of Directors and
whose term of office is two year and may be renewed if continuously appointed by
the relevant party.

6

 

Article 28

The general manager shall be responsible to carry out the decisions of the Board
of Directors and organized the daily works on management of the EJV company.
 Deputy general manager shall assist general manager.  The material matters
shall be decided by general manager and vice general manager. The work scope of
general manager and vice general manager shall be decided by the Board of
Directors.  Several department managers may be appointed by the general
management office, they shall be responsible for the works in various department
respectively, handle the matters hand over by the general manager and deputy
general manager and shall be responsible to them.

 

Article 29

All the managers shall take responsibilities of their works.  In case of graft
or serious dereliction of duty on the part of the general manager and deputy
general managers, the Board of Directors shall is entitled  to dismiss them at
any time.

 

Article 30

The structure of departments shall be discussed by general manager and vice
general manager and decided by the Board of Directors.  Other position shall be
decided by general manager and vice general manager.

 

Article 31

In case of graft or serious dereliction of duty on the part of the senior
managers, the Board of Directors shall is entitled  to dismiss them at any time.

Chapter 6 Finance and Accounting

Article 32

The finance and accounting of the EJV company shall be handled in accordance
with the relevant laws and regulations.  The general manager shall in charge of
establishing the financial and accounting system.

 

Article 33

The fiscal year of the EJV company shall be calendar year from January 1 to
December 31.

 

Article 34

All vouchers, receipts, accounting statements and reports, accounting books
shall be written in Chinese.  If such accounting books were written in English,
it shall have Chinese as explanation.

 

Article 35

The EJV company adopts Renminbi (RMB) as its accounts keeping unit.  The
conversion of RMB into other currency shall be in accordance with the exchange
rate of the converting day published by the State Administration of Foreign
Exchange Control of the People's Republic of China.

 

Article 36

The EJV company shall open accounts in RMB and foreign currency with the Band of
China or other banks which agreed by the Bank of China.

7

 

Article 37

The accounting of the EJV company shall adopt the internationally used accrual
basis and debit and credit accounting system in their work.

 

Article 38

In the first three months of each fiscal year, the general manager shall prepare
previous year’s proposal regarding the disposal of profits, and submit them to
the Board of Directors for examination and approval.

 

Article 39

Parties of the EJV company have the right to invite an auditor to undertake
annual financial check and examination at his own expense. The EJV company shall
provide convenience for the checking and examination.

 

Article 40

The depreciation period for the fixed assets of the EJV company shall be decided
by the board of directors in accordance with the "The Income Tax Law of the
People's R-public of China for Foreign Investment Enterprises and Foreign
Enterprises"

 

Article 41

All matters concerning foreign exchange shall be handled in accordance with the
"Regulations for Exchange Control of the People's Republic of China" and other
pertaining regulations.

Chapter 7 Profit Sharing

Article 42

The EJV company shall allocate reserve funds, expansion funds and bonuses
welfare funds for staff and workers after payment of taxes.  The proportion of
allocation shall be decided by the board of directors, which shall not be less
than 15% of profit after paid tax.

 

Article 43

Within 4 months after each fiscal year, after the three funds have been
deducted, the Board of Directors decides to distribute the dividend.  The
dividend should be distributed according to the proportion of each investor’s
investment.  Profits cannot be distributed unless the losses of previous years
have been made up. Remaining profits from previous year (or years) can be
distributed together with that of the current year.

 

Article 44

Insurance policies of the EJV company on various kinds of risks shall be
underwritten with the People’s  Republic of China. Types, the value and duration
of insurance shall be decided by the board of directors in accordance with the
stipulation of the People’s Insurance Company of China.

 

Article 45

The EJV company shall promote employees to pay income tax subject to the
Individual Income Tax Law of the People's Republic of China.

 

Article 46

The legal profit and other income and liquidated capital can be remitted to
overseas by investors. 

The foreign employees’ income and other legal income, after pay the tax, can be
remitted to overseas.  The RMB profit and income can be exchanged to foreign
exchange.

8

Chapter 8 Staff and Workers

Article 47

The employment, recruitment, dismissal and resignation of the staff and workers
of the EJV company and their salary, welfare, labor insurance, labor protection,
labor discipline and other matters shall be handled according to the
"Regulations of the People's Re-public of China on Labor Management in Joint
Ventures Using Chinese and Foreign Investment" and its implementation rules.

 

Article 48

The staff and workers needed by the EJV company, may be recommended by local
labor and personnel department or public recruitment after approved by local
labor and personnel department.  The EJV company shall conclude a labor contract
with staff and workers and be filed with the local labor and personnel
department.

 

Article 49

The EJV company has the right to take disciplinary actions, such as warning,
demerit recording and salary reducing against those staff and workers who
violate the rules and regulations of the EJV company and labor disciplines.
Those with serious cases may be dismissed. Discharging of workers shall be filed
with the local labor and personnel department.

 

Article 50

The salary treatment of the staff and workers shall be subject to Chinese
relevant laws and regulations, and respectively conclude a labor contract by the
Board of Directors.  The salary of the staff and workers shall be increased
correspondently with the development of production and the progress of the
worker's ability and technology.

Chapter 9 Labor Union

Article 51

Staff and worker of the EJV company have the right to set up labor union and
carry on activities in accordance with the Labor Union Law of the People’s
Republic of China.

 

Article 52

Labor union is representatives of the interests of the staff and workers and its
tasks are: to protect the democratic right and material interests of the staff
and workers pursuant to the law; to help the EJV company with the arrangement
and rational use of welfare and bonus funds; to organize political ,
professional, scientific and technical studies, carry out literary, art and
sports activities; and to educate staff and workers to observe labor discipline
and strive to fulfill the economic tasks of the enterprises.

 

Article 53

Labor union have the power to represent the staff and workers to sign labor
contracts with the EJV company and supervise the execution of these contracts.

9

 

Article 54

Labor union representatives have the right to attend as nonvoting members and to
report the opinions and demands of staff and workers to meetings of the Board of
Directors held to discuss important issues such as development plans, production
and operational activities of the EJV company.

 

Article 55

The EJV company shall provide housing and facilities for the labor union's
office work, meetings, and welfare, cultural and sports activities in accordance
with stipulations of the Labor Union Law of the People’s Republic of China.

 

Article 56

The EJV company shall allot an amount of money totally 2% of all the salaries of
the staff and workers as labor union's funds which shall be used by the labor
union in accordance with the "Managerial Rules for the Labor Union Funds"
formulated by the All China Federation of Labor Union.

Chapter 10 Duration, Termination and Liquidation

Article 57

The duration of the EJV company is 20 years.  The establishment of the EJV
company shall start form the date on which the business license of the EJV
company is issued.

 

Article 58

An application for the extension of the duration, proposed by one party and
unanimously approved by the Board of Directors, shall be submitted to COFTEC or
relevant authority six months prior to the expiry date of the EJV company.

 

Article 59

When the following situations happened, either party have right to terminate the
joint venture:

 

1) inability to continue operations due to heavy losses caused by the Force
Majeure;

2) inability to continue operations due to heavy losses;

3) inability to continue operations due to the failure of the party to fulfill
its obligations prescribed in the contract

4) failure to obtain the desired objectives of the operation and no prospects
for the future development of the EJV company

5) others.

 

The termination application letter shall be submitted by the Board of Directors
and approved by approval authority.  However, due to one or several directors
absence of board meeting more than 2 years, the Board of Directors fails to
reach a resolution of company’s termination, through notice of 3 times by other
shareholders and notarized by notaries or lawyers, other shareholders can apply
for company’s termination.

10

Article 60

The EJV company shall liquidate the assets when it terminates.  The liquidation
commission is composed of 3 people at least, whom were elected from the Board of
Directors or retain professionals. When the EJV company can not organize
liquidation commission to liquidate, the Board of Directors, investors or loaner
shall apply to special liquidation with original approval authority.  During the
liquidation, the EJV company shall not do new business.

 

Article 61

The liquidation commission shall be responsible for the matters of liquidation
according to the provisions of the Liquidation Measures of Foreign Funded
Enterprises.  The evaluation of the assets shall retain Chinese registered
accountants to evaluate and the investors have the priority of purchase under
same condition.

 

Article 62

On completion of the liquidation of a dissolved joint venture, the liquidation
committee shall go through formalities for nullifying its registration and hand
in its business license to the registration authority.

Chapter 11 Regulations

Article 63

Following are the rules and regulations formulated by the Board of Directors of
the EJV company:

 

1) Management regulations, including the powers and functions of the managerial
branches and its working rules and procedures;

2)Rules for the staff and workers;

3)System of labor and salary;

4)System of work attendance record, promotion and awards and penalty for the
staff and workers;

5)Detailed rules of staff and worker's welfare;

6)Financial system;

7)Liquidation procedures upon the dissolution of the EJV company;

8)Other necessary rules and regulations.

Chapter 12 Supplementary Articles

Article 64

The contract shall be written in Chinese and in English.  Both languages are
equally authentic.  In events of any discrepancy between the two versions, the
Chinese version shall prevail.  This articles of association is in triplicate
and each investor holds one and approval authority and AIC holds one.

 

Article 65

The matters are not covered in this articles of association shall be pursuant to
EJV contract, Board of Directors Resolution and relevant Chinese laws and
regulations.  If this articles of association is conflict with the EJV contract,
the EJV contract will prevail.

11

Article 66

This articles of association shall become effective after approved by Beijing
Chaoyang COFTEC.

 

Article 67

The articles of association is signed in Beijing, China by the authorized
representatives of both parties on December 21, 2006.

 

	
    
    Party A: Beijing Dongfang Shang You Tech Co., Ltd
	
    
    Party B: BroadWebAsia, Inc

	
     
	
     

	
    
    By: /s/
	
    
    By: /s/

	
     
	
     

	
    
    Date: December 21, 2006
	
    
    Date: December 21, 2006

 

12

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