Document:

f20f2010ex4vi_djsp.htm

    Exhibit 4.6

     

    ESCROW
AGREEMENT

     

    This
ESCROW AGREEMENT (this “Agreement”) is made
on January 15, 2010 by and among DAL Group, LLC, a limited liability company
organized under the laws of the State of Delaware (“DAL”), Chardan 2008
China Acquisition Corp., a corporation organized under the laws of the British
Virgin Islands (“Chardan,” and,
together with DAL, the “Chardan Indemnified
Parties”), the Law Offices of David J. Stern, P.A., a professional
association licensed to practice law in the State of Florida (“DJS”), Professional
Title and Abstract Company of Florida, Inc., a corporation organized under the
laws of the State of Florida (“PTA”), Default
Servicing, Inc., a corporation organized under the laws of the State of Florida
(“DSI,” each of
DJS, PTA and DSI is referred to herein individually as a “Seller,” and is
referred to herein collectively as the “Sellers”), and U.S.
Bank National Association, national banking association (the “Escrow
Agent”).

     

    RECITALS

     

    A.           The
Chardan Indemnified Parties and Sellers, among others, have entered into that
certain Contribution and Membership Interest Purchase Agreement (the “Purchase Agreement”),
dated January 15, 2010, and that certain Master Acquisition Agreement (the
“Master
Agreement”), dated December 10, 2009.

     

    B.           The
parties hereto desire to place in escrow with the Escrow Agent certain
securities and/or funds solely to be used to satisfy obligations that Sellers
may have to indemnify the Chardan Indemnified Parties in accordance with the
terms and conditions of the Purchase Agreement and the Master Agreement (the
“Indemnified
Claims”).

     

    C.           Capitalized
terms not otherwise defined in this Agreement shall have the meaning ascribed to
them in the Master Agreement, a copy of which has been delivered to Escrow
Agent, solely to enable it to reference such definitions.

     

    Accordingly,
the parties hereto agree as follows:

     

    AGREEMENTS

     

    1. Establishment of
Escrow.

     

    (a) Within
two (2) business days following execution of this Agreement, Sellers will
deposit with the Escrow Agent certain Series A Preferred Interests of DJS, PTA
and DSI with an aggregate value agreed upon by the parties hereto of $15,000,000
(the “Escrowed
Equity”), which shall be held in escrow by the Escrow Agent (the “Escrow
Fund”).  The Escrow Agent agrees to acknowledge receipt of the
Escrow Fund upon delivery and agrees to hold, invest, reinvest, and disburse the
Escrow Fund in accordance with the terms contained in this
Agreement.

     

    (b) At any
time following the execution of this Agreement, any Seller may from time to time
deposit with the Escrow Agent cash as a substitute for some or all of the
Escrowed Equity, with the Escrowed Equity valued at $15.00 per unit of the
Series A Preferred Interests being released from the Escrow Fund in exchange for
cash.  Upon receiving such cash, the Escrow Agent shall deliver to
such Seller the certificates representing the substituted for Escrowed Equity,
add such cash to the Escrow Fund and acknowledge receipt of such cash to Sellers
and the Chardan Indemnified Parties.

     

    
      
        
          Escrow
Agreement

        

      

      
        
        

        
          

        

      

      
        
           

        

      

    

     

    2. Investment of the Escrow
Fund.

     

    (a) As
directed in writing by Sellers from time to time, the Escrow Agent shall cause
any cash held in the Escrow Fund to be maintained and invested in one or more of
the following: (1) an investment with a maturity date of 30 days or less in
direct or indirect obligations of the United States, (2) an investment with a
maturity date of 30 days or less in certificates of deposit of a domestic
commercial bank of recognized standing having capital, surplus and undivided
profits in excess of $100,000,000, membership in the Federal Deposit Insurance
Corporation, and its senior debt carrying one of the two highest ratings of
Standard and Poor’s Corporation or Moody’s Investors Services, Inc, (3) an
investment redeemable at any time without penalty in a money market instrument
issued by a United States mutual fund carrying one of the two highest ratings of
Standard and Poor’s Corporation or Moody’s Investors Services, Inc., and having
assets of not less than $1,000,000,000, and/or (4) any other investment agreed
upon by Chardan.

     

    (b) Any and
all transaction costs associated with any election by Sellers to change the
investment of the Escrow Fund shall be paid from the income on the Escrow
Fund.  The Escrow Agent shall not be responsible for any interest or
income on the Escrow Fund except for such as is actually received, nor shall the
Escrow Agent be responsible for any loss resulting from the investment of the
Escrow Fund (including, but not limited to, the loss of any interest arising
from the sale of any Investment prior to maturity).  Accrued interest
and other income on the Escrow Fund (after the payment of transaction costs
relating to changes in investments provided for above) shall be paid quarterly
to Sellers to the account specified on Schedule A, in
accordance with the Escrow Agent’s usual and customary procedures.

     

    (c) Except as
otherwise provided hereunder or agreed in writing among the parties hereto, the
Sellers shall retain the authority to institute, participate and join in any
plan of reorganization, readjustment, merger or consolidation with respect to
the issuer of any securities held hereunder, and, in general, to exercise each
and every other power or right with respect to each such asset or investment as
individuals generally have and enjoy with respect to their own assets and
investment, including power to vote upon any securities.

     

    (d) The
Sellers and Chardan Indemnified Parties acknowledge that regulations of the
Comptroller of the Currency grant the parties the right to receive brokerage
confirmations of the security transactions as they occur.  The Sellers
and Chardan Indemnified Parties specifically waive such notification to the
extent permitted by law and will receive periodic cash transaction statements
which will detail all investment transactions.

     

    3. Distribution of Escrow
Fund.

     

    (a) The
Escrow Agent shall hold the Escrow Fund and shall not deliver any amount of the
Escrow Fund to any party other than as set forth in this Section 3 or by
depositing the Escrow Fund with a successor escrow agent in accordance with the
provisions of Section 6 of this Agreement.

     

    (b) The
Chardan Indemnified Parties may make claims against the Escrow Fund for
Indemnified Claims prior to 5:00 p.m. New York Time on the Termination Date (as
defined in Section 3(d)) by delivery to the Escrow Agent, and the Sellers, of a
certificate signed by an officer of any of the Chardan Indemnified Parties (an
“Officer’s
Certificate”), (i) specifying the amount of the claim, and (ii)
specifying in reasonable detail the nature of the claim.  Sellers may
in good faith respond to such Officer’s Certificate by delivering to the Chardan
Indemnified Parties, with a copy to Escrow Agent, a written statement setting
forth, in reasonable detail, the 

     

    
      
        
          Escrow
Agreement

        

      

      
        2

        
          

        

      

      
        
           

        

      

       

      basis of
any objection to the claim (or portion thereof) asserted in the Officer’s
Certificate (the “Seller’s
Response”).  If a Seller’s Response is not received by the
Chardan Indemnified Parties and the Escrow Agent on or before 5:00 p.m. New York
Time of the 15th
Business Day after the Escrow Agent and Sellers receive the Officer’s
Certificate, the entire claim set forth in such Officer’s Certificate shall be
deemed valid and conclusive and binding upon all parties and shall be satisfied
by Escrow Agent from the Escrow Fund (in part, if the Escrow Fund is not
sufficient to satisfy the claim in full) by delivery of payment therefrom to the
Chardan Indemnified Parties.  If the Chardan Indemnified Parties and
the Escrow Agent receive Seller’s Response by such 15th
Business Day described above, that portion of the claim which is disputed in
Seller’s Response shall not be satisfied by Escrow Agent from the Escrow Fund
(in part, if the Escrow Fund is not sufficient to satisfy such portion of the
Claim in full) unless and until the Escrow Agent receives: (a) written notice
from Sellers consenting to the payment of such disputed portion of the claim to
the Chardan Indemnified Parties or (b) receipt by Escrow Agent of a
certified copy of a judgment, decree or award of a court or other authority of
competent jurisdiction requiring the payment of money by Seller as to the
disputed portion of the claim.

    

     

    (c) Any claim
satisfied pursuant to Section 3(b) shall be satisfied first from cash held in
the Escrow Fund and then, once there is no cash remaining in the Escrow Fund,
from the Escrowed Equity held in the Escrow Fund.  For purposes of the
payment of any such claims with Escrowed Equity, the Escrowed Equity shall be
valued at $15.00 per unit of the Series A Preferred Interests used to pay the
claim.

     

    (d) On the
Business Day following the 18 month “anniversary” of this Agreement (the “Termination Date”),
Escrow Agent shall pay to Sellers the portion of the remaining Fund, if any,
that exceeds the amount of money or value of Escrowed Equity sufficient to
satisfy all claims and pending claims made by the Chardan Indemnified Parties as
of the Termination Date for which the Escrow Agent or any Seller has received
notice pursuant to Section 3(b).  After the resolution of all claims
pending on the Termination Date and, if applicable, payment therefor in the
manner described in Section 3(b), the Escrow Agent shall promptly deliver to
Sellers, on a pro rata basis in accordance with Schedule B attached
hereto, the remaining money or Escrowed Equity in the Escrow Fund, if
any.

     

    (e) Upon the
distribution of the Escrow Fund as provided in this Section 3, this Agreement
shall terminate.

     

    4. Expenses.

     

    (a) The
Escrow Agent shall be entitled to compensation for its services under this
Agreement as set forth in Schedule C, which is
attached to and made a part of this Agreement, and for reimbursement of its
reasonable, documented out-of-pocket expenses, including but not limited to the
fees and expenses of attorneys or agents which the Escrow Agent may find
necessary to engage in the performance of its duties under this
Agreement.  DAL shall pay all such fees and costs, charges and
expenses of the Escrow Agent, including attorneys fees and expenses in respect
of any litigation incurred by the Escrow Agent relating to this Agreement,
provided that such litigation shall not have resulted from any action taken or
omitted by the Escrow Agent or any Seller and which shall have been adjudged to
constitute bad faith, willful misconduct or gross negligence.

     

    (b) If any
amounts due the Escrow Agent are not paid within 30 days of invoice, the Escrow
Agent shall have, and is hereby granted, a prior lien upon any property, cash,
or assets held hereunder, with respect to its unpaid fees and unreimbursed
expenses, superior to the interests of any other person or entities and the
Escrow Agent is hereby granted the right to set off and may deduct any unpaid
fees or unreimbursed expenses from amounts of cash on deposit in the Escrow Fund
pursuant to this Agreement. The rights of the Escrow Agent under this
subparagraph shall survive the resignation or removal of the Escrow Agent or the
termination of this Agreement

     

    
      
        
          Escrow
Agreement

        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    5. Limitation of Liability;
Indemnification of Escrow Agent.

     

    (a) This
Agreement sets forth all matters pertinent to the escrow contemplated by this
Agreement and no additional obligations of the Escrow Agent shall be implied
from the terms of this Agreement or any other agreement.  The duties
of the Escrow Agent under this Agreement shall be entirely administrative and
shall be only as specifically provided in this
Agreement.  Accordingly, the Escrow Agent, including its officers,
directors, employees and agents, shall:

     

    i) not be
liable for any error of judgment or for any act done or step taken or omitted by
it in good faith, except for any such acts, steps or omissions resulting from
its own gross negligence, bad faith or willful misconduct;

     

    ii) be
obligated to act only in accordance with written notice received by it as
provided in this Agreement;

     

    iii) have no
responsibility or liability for any diminution in value which may result from
any investments or reinvestments made in accordance with this
Agreement;

     

    iv) have no
responsibility to inquire into or determine the genuineness, authenticity, or
sufficiency of any security, check, or other document or instrument submitted to
it in connection with its duties under this Agreement;

     

    v) be
entitled to deem the signatories of any document or instrument submitted to it
under this Agreement as being those purported to be authorized to sign such
document or instrument on behalf of Sellers and the Chardan Indemnified Parties
and shall be entitled to rely upon the genuineness of the signatures of such
signatories without inquiry and without requiring substantiating evidence of any
kind;

     

    vi) be under
no obligation to invest the Escrow Fund or the income generated by the Escrow
Fund until it has received an I.R.S. Form W-9 (or W-8, if applicable) from each
of the Sellers and the Chardan Indemnified Parties, regardless of whether any
party is exempt from reporting or withholding requirements under the Internal
Revenue Code of 1986, as amended;

     

    vii) in the
event any dispute shall arise between Sellers and the Chardan Indemnified
Parties with respect to the disposition or disbursement of the Escrow Fund, be
permitted to interplead the Escrow Fund into a court of competent jurisdiction,
and thereafter be fully relieved from any and all liability or obligation with
respect to the Escrow Fund (other than with respect to its actions that may
constitute gross negligence, bad faith or willful misconduct), and the parties
further agree to pursue any redress or recourse in connection with such a
dispute without making the Escrow Agent a party to such dispute;
and

     

    
      
        
          Escrow
Agreement

        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    viii) neither
be responsible for, nor chargeable with knowledge of, the terms and conditions
of any other agreement, instrument or document between Sellers and the Chardan
Indemnified Parties, including but not limited to the Purchase Agreement and the
Master Agreement, and shall be required to act only pursuant to the terms and
provisions of this Agreement.

     

    (b) The
Escrow Agent is jointly and severally indemnified and saved harmless by the
other parties hereto from all losses, costs, and expenses, including attorney’s
fees, which may be incurred by it as a result of its involvement in any
litigation arising from the performance of its duties under this Agreement,
provided that such litigation shall not have resulted from any action taken or
omitted by it and which shall have been adjudged to constitute bad faith,
willful misconduct or gross negligence and such indemnification shall survive
the termination of this Agreement and the resignation or removal of the Escrow
Agent until extinguished by any applicable statute of limitations.

     

    6. Resignation or
Removal.  The Escrow Agent may resign as Escrow Agent following
the giving of 30 calendar days prior written notice to the other parties to this
Agreement.  Similarly, the Escrow Agent may be removed and replaced
following the giving of 30 calendar days prior written notice to the Escrow
Agent by Sellers and the Chardan Indemnified Parties.  In either
event, the duties of the Escrow Agent shall terminate 30 calendar days after the
date of such written notice (or as of such earlier date as may be mutually
agreeable) and the Escrow Agent shall then deliver the balance of the Escrow
Fund then in its possession to a successor Escrow Agent as shall be appointed by
Sellers subject to the consent of Chardan (which consent will not unreasonably
be withheld), or failing such appointment, the Escrow Agent may petition any
court of competent jurisdiction for the appointment of a successor Escrow Agent
or other appropriate relief, and such resulting appointment shall be binding
upon all of the parties to this Agreement.  Upon acknowledgment by any
successor Escrow Agent of the receipt of the remaining balance of the Escrow
Fund, the then acting Escrow Agent shall be fully released and relieved of all
duties, responsibilities and obligations under this Agreement, except for any
liability with respect to any previous acts, steps or omissions resulting from
its own gross negligence, bad faith or willful misconduct as set forth in
Section 5.

     

    Any bank
or corporation into which the Escrow Agent may be merged or with which it may be
consolidated, or any bank or corporation to whom the Escrow Agent may transfer a
substantial amount of its escrow business, shall be the successor to the Escrow
Agent without the execution or filing of any paper or any further act on the
part of any of the parties, anything herein to the contrary
notwithstanding.

    

    7. Notices.  All
notices and other communications required or permitted under this Agreement
shall be in writing and shall be deemed to have been duly given upon delivery if
delivered personally, or on the date of receipt if delivered by facsimile,
nationally recognized overnight courier, mailed by registered or certified mail,
postage prepaid and return receipt requested, addressed as follows:

     

    
      
        
          Escrow
Agreement

        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    If to
Chardan or DAL, addressed to:

     

    Chardan
2008 China Acquisition Corp.

    c/o
Chardan Capital, LLC

    474 Three
Mile Road

    Glastonbury,
CT 06033

    Attn:  Dan
Beharry

    Facsimile:  (281)
644-5751

    email:  dbeharry@chardancapital.com

    

    with a
copy to:

    

    Loeb
& Loeb LLP

    345 Park
Avenue

    New York,
NY 10154

    Attn:
Mitchell S. Nussbaum

    Facsimile:  212-407-4990

    email:
mnussbaum@loeb.com

    

    If to
Sellers, addressed to:

     

    Law
Offices of David J. Stern, P.A.

    900 South
Pine Island Road

    Suite 400

    Plantation,
FL  33324

    Attn:
David J. Stern, Esq.

    Facsimile:  954-233-8444

    email:  djstern@att.blackberry.net

    

    with a
copy to:

    

    Dykema
Gossett PLLC

    400
Renaissance Center

    Detroit,
MI  48234

    Attn:
Thomas Vaughn

    Facsimile:  313-568-6915

    email:
tvaughn@dykema.com

    

    If to the
Escrow Agent:

     

    U.S. Bank
National Association

    535
Griswold Street, Suite 550

    Detroit,
MI  48226

    Attn:
James Kowalski

    Facsimile:
313-963-9428

    email:
james.kowalski@usbank.com

     

    

    The
addresses indicated for any party may be changed by similar written
notice.

     

    
      
        
          Escrow
Agreement

        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    8. Entire
Agreement.  This Agreement constitutes the entire understanding
among the parties hereto as to the subject matter of this Agreement and no
waiver or modification of the terms of this Agreement shall be valid unless in
writing and signed by Sellers, the Chardan Indemnified Parties and the Escrow
Agent and only to the extent specifically set forth in writing.

     

    9. Continuance of
Agreement.  This Agreement shall be binding upon the parties to
this Agreement and their respective successors and permitted
assigns.

     

    10. Applicable
Law.  This Agreement shall be governed by and construed under
and pursuant to the internal laws of the State of Florida without regard to its
conflict of laws principles.

     

    11. Joint
Direction.  Any other provision of this Agreement to the
contrary notwithstanding, Sellers and the Chardan Indemnified Parties may
jointly direct the Escrow Agent, in writing, to perform any action contemplated
by this Agreement, and, upon receipt of such joint direction, the Escrow Agent
shall act in compliance with such joint direction and be protected by this
Agreement.

     

    12. Headings and
Sections.  Unless otherwise indicated, all references in this
Agreement to “Sections” and “Schedules” refer to the sections and schedules of
this Agreement.  The section headings and titles appearing in this
Agreement are inserted only as a matter of convenience and in no way define,
limit, construe, or describe the scope or extent of such section or in any way
affect this Agreement or the interpretation hereof.

     

    13. Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
agreement.  One or more counterparts of this Agreement may be
delivered by facsimile or e-mail, with the intention that delivery by such means
shall have the same effect as delivery of an original counterpart.

     

    14. Invalid
Clause.  If any term, covenant, condition or provision of this
Agreement is held by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the provisions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated
thereby.

     

    15. Tax
Matters.

     

    (a) The
Escrow Agent shall not be responsible for the preparation or filing of any tax
return with respect to the Escrow Fund.  Sellers shall be responsible
for payment of all taxes that are payable with respect to any income or interest
earned by the Escrow Fund, whether or not the income or interest was distributed
by the Escrow Agent during any particular year, or ever will be so distributed
by the Escrow Agent, or was used for expenses, as provided for in Section
2(b).  The Escrow Agent shall not have any obligation to pay any taxes
or estimated taxes.  Sellers will provide the Escrow Agent with the
respective taxpayer identification numbers of Sellers documented by an
appropriate I.R.S. Form W-9 (or W-8 if applicable) following execution of this
Agreement.  Failure to provide such forms may prevent or delay
disbursements to Sellers from the Escrow Fund and may also result in the
assessment of a penalty and the Escrow Agent being required to withhold tax on
any interest or other income earned by the Escrow Fund.  Any payments
of income or interest on the Escrow Fund will be subject to applicable
withholding regulations then in force in the United States or any other
jurisdiction as applicable.  At the request of Sellers the Escrow
Agent will provide Sellers with any information reasonably requested by them and
available to the Escrow Agent which may be helpful in satisfying any tax
obligation relating to the interest relating to the Escrow Fund.

     

    
      
        
          Escrow
Agreement

        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (b) If
required, the Escrow Agent will report to the Internal Revenue Service, as of
the end of each calendar year-end, all interest or income earned from the
investment of any sum held as part of the Escrow Fund against Sellers, whether
or not said interest or income has been distributed during such year, as and to
the extent required by law.

     

    Customer Notice Required by
the USA Patriot Act

    

    To
help the US government fight the funding of terrorism and money laundering
activities, US Federal law requires all financial institutions to obtain,
verify, and record information that identifies each person (whether an
individual or organization) for which a relationship is
established.

    

    When
an escrow account is opened, the Escrow Agent will ask you to provide certain
information (and documents) that will help identify you and your
organization.  The Escrow Agent will ask for your organization’s name,
physical address, tax identification or other government registration number and
other information that will help identify you.  The Escrow Agent may
also ask for the Articles of Incorporation or similar document or other
pertinent identifying documentation for your type of organization.

    

    16. Legal
Identification.                                           Sellers
and the Chardan Indemnified Parties agree to disclose certain identification
information including the legal name of each Seller and each of the Chardan
Indemnified Parties, and their respective addresses, types of legal entity and
tax identification numbers on I.R.S. Form W-9 or W-8, if
applicable.

     

    17. Authorized
Representatives.                                                      Sellers
and the Chardan Indemnified Parties hereby appoint the individuals, whose names
and specimen signatures appear on Schedule D, as their
respective Authorized Representatives. Any single Authorized Representative, of
any of Sellers or the Chardan Indemnified Parties is hereby expressly authorized
to give binding written direction to the Escrow Agent or to each other as to any
matter related to this Agreement. Schedule D may be
supplemented from time to time to reflect any change in the identities of such
Authorized Representatives.

     

    18. Call
Back.                      In
the event federal wire transfer instructions are given, whether in writing,
e-mail, facsimile transmission or otherwise, the Escrow Agent is authorized to
seek confirmation of such wire instructions by telephone call back to the person
or persons designated on Schedule E and the
Escrow Agent may rely upon the confirmations of anyone purporting to be the
person or persons so designated.

     

    [Signatures are on
the following page.]

     

    
      
        
          Escrow
Agreement

        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    The
parties have duly executed this Escrow Agreement as of the date first written
above.

     

     

    
      
        	CHARDAN INDEMNIFIED
      PARTIES	 	SELLERS	 
	 	 	 	 
	DAL Group, LLC	 	Law Offices Of David J. Stern,
      P.A.	 
	 	 	 	 	 	 
	By:           FlatWorld
      DAL LLC, its Member	 	By:	 	 
	 	 	 	Name:	David
      J. Stern	 
	By:	
                Nagina
      Engineering Investment

                Corp.,
      its Member

              	 	Title: 	President	 
	 	 	 	 	 	 
	    By:	
                 

              	 	 	
                 

              	 
	
                    Name

              	
                Raj
      K. Gupta

              	 	 	
                 

              	 
	
                    Title 

              	
                President

              	 	 	
                 

              	 

      

    

     

     

     

     

    
      
        	Chardan 2008 China Acquisition
      Corp.	 	Professional Title And Abstract
      Company Of Florida, Inc.	 
	 	 	 	 
	By:	
                 

              	 	By: 	
                /s/
      

              	 
	 	
                Kerry
      Propper

              	 	Name: 	
                David
      J. Stern

              	 
	 	
                Chief
      Executive Officer

              	 	Title:  	
                President

              	 
	 	 	 	 	 	 
	 	 	 	 	 Default Servicing,
      Inc.	 
	 	 	 	 	 	 
	 	 	 	By: 	 	 
	 	 	 	Name: 	David
      J. Stern	 
	 	 	 	Title: 	President	 
	 	 	 	 	 	 
	 	ESCROW AGENT	 	 	 	 
	 	U.S. Bank National
      Association	 	 	 	 
	By: 	 	 	 	 	 
	Name:	James
      Kowalski	 	 	 	 
	Title: 	Vice
      President - Account Manager	 	 	 	 
	 	 	 	 	 	 

      

    

     

     

    
 

    
      
        
          Escrow
Agreement

        

      

      
        9f20f2010ex4vii_djsp.htm

    Exhibit 4.7

     

     

    STERN
EMPLOYMENT AGREEMENT

     

    THIS
EMPLOYMENT AGREEMENT (the “Agreement”) is made
as of January 15, 2010, between DAL Group, LLC, a Delaware limited liability
company (“DAL”), DJS
Processing, LLC, a Delaware limited liability company (“Processing”, and
collectively with DAL, the “Companies,” or
individually, a “Company”), Chardan
2008 China Acquisition Corp. (“Chardan”), and David
J. Stern (“Executive”).

     

    In
consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     

    1. Employment.  Chardan
and the Companies shall each employ Executive, and Executive hereby accepts
employment with each of Chardan and the Companies, upon the terms and conditions
set forth in this Agreement, for the period beginning on the date of this
Agreement and ending as provided in Section 5 of this Agreement (the “Employment
Period”).

     

    2. Defined
Terms.

     

    (a) An “Affiliate” is a
person that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, the person
specified.

     

    (b) “Base Salary” is
defined in Section 4(a).

     

    (c) “Base Salary Severance
Benefit” is defined in Section 6(a).

     

    (d) “Base Salary Severance 409A
Cap” means two (2) times the lesser of: (I) the maximum dollar amount
that may be taken into account under a qualified plan pursuant to Code Section
401(a)(17) for the year in which Executive’s employment is terminated or (II)
the sum of Executive’s annualized compensation based upon the annual rate of pay
for services to the Companies and Chardan for the taxable year prior to the
taxable year in which Executive’s termination occurs (adjusted for any increase
during that year that was expected to continue indefinitely if Executive’s
employment had not terminated).

     

    (e) The
“Boards” means,
collectively, the Board of Managers of DAL and Chardan’s Board of Directors, and
each are individually referred to in this Agreement as a “Board.”

     

    (f) “Cause” means the
occurrence of any of the following events, as determined by both Boards in good
faith:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g) Executive’s
theft, material act of dishonesty or fraud, or intentional falsification of any
records of Chardan, any Company or their Affiliates;

     

    (i) Executive’s
material breach of (A) this Agreement or any of the Companies’ written policies
applicable to Executive; (B) the Confidentiality Agreement; (C) any other
agreement with Chardan, any Company or their Affiliates (1) covering the use or
disclosure of confidential or proprietary information of Chardan or the
Companies or their Affiliates, customers or clients, (2) covering ownership of
intellectual property or restrictions on competition or (3) regarding
solicitation of employees or agents; in each case, after written notice is
delivered identifying the breach, and such breach is not cured within thirty
(30) days following receipt of such notice;

     

    (ii) Executive’s
fraudulent activities, gross negligence or willful misconduct in the performance
of Executive’s assigned duties (but not mere unsatisfactory
performance);

     

    (iii) Executive’s
conviction (including plea of guilty or nolo contendere) of a crime
involving (A) imprisonment or (B)  theft, dishonesty, fraud or moral
turpitude;

     

    (iv) Executive
terminates his position or employment at one or more of Chardan or the
Companies, but not all such entities, except if otherwise agreed by the Boards
or required by applicable law, including, but not limited to, the Rules
Regulating the Florida Bar; or

     

    (v) Processing
terminates the Services Agreement between Processing and DJS, as a result of a
material breach of the Services Agreement by DJS.

     

    (h) “Change in
Control”  shall be deemed to have occurred upon the occurrence
of any of the following events:

     

    (i) A merger
involving Chardan in which Chardan is not the surviving company if, following
the merger, the shareholders of Chardan immediately prior to the merger do not
own more than fifty percent (50%) of the total voting power of the surviving
company;

     

    (ii) A share
exchange in which the shareholders of Chardan exchange their shares in Chardan
for shares of another corporation, provided, that such share exchange shall
result in the exchange of more than fifty percent (50%) of the total fair market
value or total voting power of Chardan shares outstanding before such share
exchange for shares of another corporation, if, following the share exchange,
the shareholders of Chardan immediately prior to the share exchange do not own
more than fifty percent (50%) of the total voting power of such other
corporation following the share exchange;

     

    (iii) A sale of
all or substantially all of the assets of Chardan, except to an Affiliate, in
which case the Affiliate shall thereafter be deemed to be a Company for purposes
of the definition of “Change in Control,” and except if, following the sale, the
shareholders of Chardan immediately prior to the sale own more than fifty
percent (50%) of the voting power, directly or indirectly, of the acquiring
company;

     

    
      
        
        

      

      
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    (iv) Any
person or group of persons (as defined in Section 13(d) of the Securities
Exchange Act of 1934, as amended) (other than Executive or any Affiliate of
Executive or any employee benefit plan or employee benefit trust benefiting the
employees of the Company) becoming a beneficial owner, directly or indirectly,
of securities of Chardan representing more than fifty percent (50%) of either
the total fair market value of Chardan’s securities, or the combined voting
power of Chardan’s then outstanding voting securities;

     

    (v) A merger
or share exchange involving either of the Companies, if (a) following the
transaction, the Company is no longer an Affiliate of Chardan and (b) following
the transaction, the shareholders of Chardan immediately prior to the merger or
share exchange do not own more than fifty percent (50%) of the total voting
power, directly or indirectly, of the surviving or acquiring
company;

     

    (vi) A sale by
the Companies of all or substantially all of their assets, except to an
Affiliate, in which case the Affiliate shall thereafter be deemed to be a
Company for purposes of the definition of “Change in Control”, if, following the
sale, the shareholders of Chardan immediately prior to the sale do not own more
than fifty percent (50%) of the total voting power, directly or indirectly, of
the acquiring company; or

     

    (vii) Either
Company is no longer an Affiliate of Chardan, if, following the applicable
transaction, the shareholders of Chardan immediately prior to the transaction do
not own more than fifty percent (50%) of the total voting power of the company
that owns such entity.

     

    Notwithstanding
any other provision in this Agreement, to the extent that any payment subject to
Code Section 409A is payable upon a Change in Control, an event shall not be
considered to be a Change in Control under this Agreement with respect to such
payment unless such event is also a “change in ownership,” a “change in
effective control” or a “change in the ownership of a substantial portion of the
assets” of either Company or Chardan, in each case, within the meaning of Code
Section 409A.

     

    (i) “Chardan” is defined
in the preamble.

     

    (j)  “Code” means the
Internal Revenue Code of 1986, as amended.

     

    (k) “Code Section 409A”
means Code Section 409A and the guidance issued thereunder.

     

    (l) “Code Section 457A”
means Code Section 457A and the guidance issued thereunder.

     

    (m) “Company” and “Companies” are
defined in the preamble.

     

    
      
        
        

      

      
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    (n) “Confidentiality
Agreement” means that certain Confidentiality and Noncompetition
Agreement among Executive, DJSP, Processing and Chardan, dated as of the date of
this Agreement.

     

    (o) “DAL” is defined in
the preamble.

     

    (p) “Disability” means
Executive’s substantial inability to perform Executive’s duties for such period
as would qualify Executive for benefits under the long-term disability insurance
policy provided to Executive by DJS or one of the Companies or, if no such
policy is provided, Executive’s disability which prevents Executive from
performing, with or without a reasonable accommodation, substantially all of the
duties assigned to Executive for a continuous period exceeding six (6)
months.  The determination of Disability shall be made by a medical
board-certified physician mutually acceptable to Chardan, the Companies and
Executive (or Executive’s legal representative, if one has been appointed), and
if the parties cannot mutually agree to the selection of a physician, then each
party shall select such a physician and the two physicians so selected shall
select a third physician who shall make such determination.

     

    (q) “DJS” is defined as
the Law Offices of David J. Stern, P.A.

     

    (r) “Employee Benefit Plan
Payment” is defined as benefits, if any, due to Executive or Executive’s
estate, surviving dependents or designated beneficiaries under the employee
benefit plans and programs and compensation plans and programs (excluding this
Agreement) maintained for the benefit of the officers and employees of the
Companies or Chardan in which Executive participated at Executive’s termination
date, to be paid at the same time and on the terms and conditions applicable
under the relevant plan; provided, that Executive shall not accrue any
additional benefit under any such employee benefit plans and programs and
compensation plans and programs maintained by the Company and Chardan following
the date of Executive’s termination of employment.

     

    (s) “Employment Period” is
defined in Section 1.

     

    (t) “Executive” is defined
in the preamble.

     

    (u) “Good
Reason”  means the occurrence of any of the following events
without Executive’s written consent, if Executive terminates employment within
thirty (30) days following the end of Chardan and the Companies’ cure period set
forth in, and subject to the requirements of, Section 6(b) of this
Agreement:

     

    (i) material
diminution in Executive’s position, duties, responsibilities or status with
Chardan and the Companies (except as provided in the DAL Amended and Restated
Limited Liability Company Agreement), in each case after written notice is
delivered identifying the breach;

     

    (ii) any
diminution in Executive’s Base Salary then in effect, which reduces such Base
Salary by five percent (5%) or more, unless a greater reduction is required by
Code Section 409A to constitute an “involuntary separation from service” or
unless such reduction occurs in connection, and on a proportionate basis, with a
general decrease in executive compensation at Chardan and the Companies, but in
no event may the total reductions in Base Salary be twenty-five percent (25%) or
more of the highest level of Base Salary in effect during the term of this
Agreement without triggering this provision; or

     

    
      
        
        

      

      
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    (iii) Chardan
and the Companies’ material breach of any provision in this Agreement after
written notice is delivered identifying the breach.

     

    (v) “Good Reason Notice”
is defined in Section 6(b).

     

    (w) “Release” is defined
in Section 6(a).

     

    (x) “Partial Termination”
means termination of Executive’s position or employment by one or more of
Chardan or the Companies, other than a termination of Executive’s position or
employment by all of Chardan and the Companies.

     

    (y) “Processing” is
defined in the preamble.

     

    (z) “Severance Benefit” is
defined in Section 6(a)

     

    (aa) “Severance Period” is
defined in Section 6(a).

     

    3. Position and
Duties.

     

    (a) During
the Employment Period, Executive shall serve as Chairman of the Board, if
approved by the Boards, and the President of each of DAL, Processing, and
Chardan and shall have the normal duties, responsibilities, functions and
authority of the president and chief executive officer of a company incorporated
under the laws of Delaware and as set forth in the organizational documents of
Chardan and each Company, and such other duties, responsibilities, functions and
authority as the Boards of such entities may direct.

     

    (b) Executive
shall report to the Boards.  Executive shall allocate his business
time and attention relating to the Companies, Chardan and DJS among such
companies as he may determine in his reasonable business judgment.

     

    (c) During
the Employment Period, Executive shall be responsible for directing Processing’s
performance of its obligations under that certain Services Agreement with DJS,
including, but not limited to, having authority to direct Processing to
establish internal policies and procedures designed to provide reasonable
assurance that Processing’s employees (i) act in a way compatible with the Rules
Regulating the Florida Bar; (ii) work under the direction and supervision of an
attorney for work requiring such direction and supervision; (iii) maintain the
confidentiality of the confidential and privileged information of DJS’ clients;
and (iv) perform services in accordance with the requirements of the
Services Agreement.  In the event that DJS provides notice of a
default by Processing under the Services Agreement, the Board of Processing may
appoint a Committee of independent members of the Board of Processing to direct
Processing’s activities in response to such notice and suspend Executive’s
responsibilities relating thereto pending the resolution of such
default.

     

    
      
        
        

      

      
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    (d) Chardan
and the Companies shall not relocate Executive’s principal place of employment
more than fifty (50) miles from Executive’s then current place of employment,
unless approved by Executive or unless the relocation is in connection with a
change in the Companies’ offices recommended by Executive.

     

    4. Compensation and
Benefits.

     

    (a) Commencing
on the date of this Agreement and throughout the Employment Period, Executive’s
aggregate base salary shall be four hundred thirty-one thousand five hundred
dollars ($431,500) per annum and shall be reviewed annually for discretionary
adjustment, if any, by the Compensation Committee of the Board of Chardan (as
modified from time to time, the “Base
Salary”).  The Base Salary shall be payable to Executive by
Processing in regular installments in accordance with Processing’s general
payroll practices (in effect from time to time).

     

    (b) During
the Employment Period, Executive shall not be entitled to participate in
employee benefit programs for which executives of Chardan, DAL, or Processing
are generally eligible, except as otherwise determined by the Board of
Chardan.

     

    (c) During
the Employment Period, Chardan, DAL and Processing shall reimburse Executive for
all reasonable business expenses incurred by him in the course of performing his
duties and responsibilities under this Agreement which are consistent with
Chardan’s, DAL’s and Processing’s policies in effect from time to time with
respect to travel, entertainment and other business expenses, subject to
Chardan’s, DAL’s and Processing’s requirements with respect to reporting and
documentation of such expenses.  Executive shall submit requests for
reimbursement under this Section 4(c) within sixty (60) days after incurring an
expense permitted under this Section 4(c) and, to the extent that such expense
is determined to be a reasonable business expense under this Section 4(c) by the
employer from who Executive is seeking reimbursement, Executive shall be
reimbursed within sixty (60) days following Executive submitting such
expense.

     

    (d) During
the Employment Period, Executive shall be eligible to receive bonuses, as
determined by the Board of Chardan in its sole discretion, payable at the time
set forth in the applicable bonus program but no later than the fifteenth
(15th) day
of the third (3rd)
month following the year in which the bonus is no longer subject to a
“substantial risk of forfeiture” (as defined under Code Section 409A); provided
that in no event may Executive’s bonus be greater than 100% of Executive’s base
salary.  Any bonus shall be limited to amounts which constitute
“performance-based compensation” under Code Section 162(m) and which are fully
deductible by the Company.

     

    (e) From the
date hereof until the first anniversary of this Agreement, and for every
one-year period thereafter during the Employment Period, Executive shall be
entitled to take reasonable vacation time, but in no event less than the amount
of time allowed to other Company executives, and paid time off (“PTO”) in accordance
with Company policy in effect from time to time, with no carryover of unused
vacation time from one year to the next.  All vacation and PTO are
accrued and available for use in accordance with applicable Company
policy.

     

    
      
        
        

      

      
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    (f) In
addition to the Base Salary, Executive shall be eligible to participate in
Chardan’s equity incentive plans as determined by Chardan and DAL’s Board from
time to time.  Grants under such equity incentive plans shall be
governed by separate form agreements applicable to all participants in those
plans.

     

    5. Term.

     

    (a) The
Employment Period shall begin on the date of this Agreement and end on January
15, 2015, subject to earlier termination (i) by reason of Executive’s death or
Disability, (ii) by Chardan and both Companies at any time for Cause, (iii) by
Chardan and both Companies at any time without Cause, or (iv) by Executive for
Good Reason, and in the case of (iv) pursuant to written notice to Chardan and
each Company.

     

    In the
event that Executive terminates this Agreement without Good Reason during any
portion of the Employment Period during which a majority of the members of the
Chardan Board of Directors consist of persons designated or nominated by
Executive or his Affiliates (or Executive has been provided the opportunity to
designate or nominate a majority of the members of the Chardan Board of
Directors and has declined to do so), except a termination resulting from
Executive’s death or disability or as required by applicable law, including, but
not limited to, the Rules Regulating the Florida Bar, Executive shall be liable
for any resulting damages to Chardan and the Companies, up to an amount equal to
the greater of (i) the value as of the date of this Agreement of one half of (A)
the DAL Common Units acquired by Executive or his Affiliates and (B) the DAL
Common Units received upon the conversion of each tranche of the Series B
Preferred Units acquired by Executive or his Affiliates and (ii) thirteen
million five hundred thousand dollars ($13,500,000.00).  If Executive
has terminated his employment resulting in damages as provided in the prior
sentence, any such damage award owed by Executive to Chardan or the Companies
must first be collected from Chardan Ordinary Shares or DAL Common Units held by
Executive or, at Executive’s option, cash, or a combination
thereof.  For purposes of this Section 5(a), each Chardan Ordinary
Share and DAL Common Unit shall be valued at Market Price (as defined in the
Amended and Restated Limited Liability Company Agreement of DAL and, as to a DAL
Common Unit, shall be the Market Value of a Chardan Ordinary Share) on the
Closing Date.

     

    (b) The
Employment Period shall not end as a result of a Partial Termination; provided,
however, that if a Partial Termination occurs, Executive shall be permitted to
terminate his employment with the remaining entities.  Executive’s
voluntary termination of his position or employment with any one of Chardan or
the Companies without a simultaneous termination of Executive’s position or
employment at each of Chardan and the Companies, except if otherwise agreed by
the Boards or required by applicable law, including, but not limited to, the
Rules Regulating the Florida Bar, shall be grounds for a for Cause termination
of Executive’s employment.

     

    
      
        
        

      

      
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    6. Severance
Benefit.

     

    (a) Termination of Employment
Period without Cause or for Good Reason.  If the Employment
Period is terminated by Executive for Good Reason or by Chardan and the
Companies for any reason other than death, Disability or Cause, provided in each
case that such termination constitutes a “separation from service” as defined in
Code Section 409A, and upon Executive’s execution (without revocation) and
delivery to Chardan and the Companies of a release (in the form attached hereto
as Exhibit I)
(the “Release”)
within twenty-one (21) days following the date of Executive’s termination of
employment, Executive shall be entitled to receive from Processing:

     

    (i) earned
but unpaid Base Salary through the date of Executive’s termination payable in
accordance with normal payroll practices but in no event commencing later than
thirty (30) days following the date of Executive’s termination of
employment;

     

    (ii) continuation
of Executive’s current Base Salary, as in effect at the time of termination,
payable in the same manner and in accordance with existing payroll practices as
Executive’s Base Salary was paid prior to Executive’s termination of employment,
beginning as soon as possible after the effective date of the Release, but no
later than thirty (30) days following the date of Executive’s termination of
employment, for a period of three (3) years following the termination date (the
“Severance
Period”) (the benefit provided for under this Section 6(a)(ii) shall be
referred to as the “Base Salary Severance
Benefit”); provided, that if Executive is a “specified employee” (as
defined under Code Section 409A) on the date of Executive’s termination of
employment, such Base Salary Severance Benefit shall be bifurcated to the extent
necessary to provide Executive with the following: (A) for payments of Base
Salary Severance occurring during the first six (6) months following Executive’s
termination date, an aggregate payment not to exceed the Base Salary Severance
409A Cap and (B) to the extent Executive’s Base Salary Severance Benefit is
limited by operation of the Base Salary Severance 409A Cap, any amounts of the
Base Salary Severance Benefit limited by operation of the Base Salary Severance
409A Cap shall be paid pursuant to Section 6(e) of this
Agreement.  The payment of the amount of the Base Salary Severance
Benefit which does not exceed the Base Salary Severance 409A Cap is intended to
be made pursuant to a “separation pay plan due to involuntary separation from
service” pursuant to Treas. Reg. Section 1.409A-1(b)(9)(iii);

     

    (iii) payment
of all accrued, but unused, vacation days, payable in a lump sum payment no
later than the thirtieth (30th) day following the termination date;

     

    (iv) provided
that such payment shall constitute “performance-based compensation” under Code
Section 162(m), payment of the bonus Executive would have been entitled to in
the year Executive’s employment is terminated, if as of Executive’s termination
date the applicable performance goals had already been met, payable at the time
set forth in the applicable bonus program but no later than the fifteenth
(15th) day
of the third (3rd)
month following the year in which Executive’s employment is terminated;
and

     

    
      
        
        

      

      
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    (v) any
Employee Benefit Plan Payment.

     

    The
payments and benefits under Sections 6(a)(ii), (iii) and (iv) of this Agreement
shall be referred to as the “Severance
Benefit.”

     

    (b) Termination of Employment
Period for Good Reason.  If Executive believes that Executive
has grounds for termination for Good Reason, Executive shall provide written
notice of the existence of the condition constituting Good Reason to Chardan and
each Company within ninety (90) days of the date that the condition arises (the
“Good Reason
Notice”) and shall provide Chardan, DAL or Processing, as the case may
be, with a period of not less than thirty (30) days in which to cure the
condition and during such cure period Processing shall not be required to pay
the Severance Benefit associated with a termination for Good
Reason.  The submission of such written notification by Executive
shall not constitute Cause for Chardan or either Company to terminate
Executive.

     

    (c) Termination of Employment
Period for Cause or by Executive Without Good Reason.  If the
Employment Period is terminated by Chardan and the Companies for Cause, or by
Executive’s voluntary termination of employment (other than a termination for
Good Reason), Executive shall receive the following from Processing: (i) earned
but unpaid Base Salary through the date of Executive’s termination of employment
payable in accordance with normal payroll practices but in no event commencing
later than thirty (30) days following the date of Executive’s termination of
employment, (ii) accrued but, unused vacation, days payable in a lump sum no
later than the thirtieth (30th) day following the termination date and (iii) any
Employee Benefit Plan Payment.

     

    (d) Termination of Employment
Period – Death or Disability. If the Employment Period is terminated due
to Executive’s death or Disability, Executive (or, if applicable, his estate or
representative) shall receive the following from Processing: (i) earned but
unpaid Base Salary through the date of Executive’s termination payable in
accordance with normal payroll practices but in no event later than thirty (30)
days following the date of Executive’s termination of employment, (ii) payment
for all accrued but unused vacation days, payable in a lump sum no later than
the thirtieth (30th) day
following the termination date, and (iii) any Employee Benefit Plan
Payment.

     

    (e) Special 6-Month Delay Rule
for Severance Benefit.  Notwithstanding the foregoing, if at
the time of termination Executive constitutes a “specified employee” (as defined
under Code Section 409A), commencing on the date that Executive is terminated,
in connection with the Severance Benefit, Executive shall receive from
Processing: (i) the amount not in excess of the Base Salary Severance 409A Cap
and the benefits that are excepted from compliance with Code Section 409A
according to the terms of this Agreement or other plans or arrangements covering
such 

     

    
      
        
        

      

      
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      payments
and (ii) the remaining payments in excess of the Base Salary Severance 409A Cap
and the benefits not excepted from Code Section 409A shall be suspended for a
six-month period beginning on the date of Executive’s termination of employment
and paid by Processing in a lump sum payment upon the earlier of (A) the first
day of the seventh (7th)
month following Executive’s termination of employment or (B) the date of
Executive’s death, with any remaining payments occurring on their regularly
scheduled payment dates.  Any payments, including amounts suspended
under Code Section 409A, made later than ten (10) days following the date of
Executive’s termination (or applicable due date under this Section 6) for
whatever reason, shall include interest at a then reasonable money market rate,
which shall begin accruing on the tenth (10th) day
following the date of Executive’s termination (or applicable due date under this
Section 6).

    

     

    (f) If the
Employment Period is terminated within two (2) years following a Change in
Control, or if a Change in Control occurs before the payment of the full
Severance Benefit has been made, any then remaining unpaid Severance Benefit
shall be accelerated and be paid to Executive by Processing in a lump sum within
ninety (90) days following the Change in Control.

     

    7. No Mitigation or Duty to
Seek Reemployment.  Executive shall be under no duty or
obligation to seek or accept other employment after termination and shall not be
required to mitigate the amount of any payments provided for by this Agreement
by seeking employment or otherwise.  The Severance Benefit shall not
be reduced or suspended if Executive accepts other employment.

     

    8. Survival.  Sections
6 through 22 (other than Sections 16 and 19) shall survive and continue in full
force and effect in accordance with their terms notwithstanding the termination
of the Employment Period.

     

    9. Severability.  If
any one or more of the terms, provisions, promises, covenants or conditions of
this Agreement or the application thereof to any person or circumstance shall be
adjudged to any extent invalid, unenforceable, void or voidable for any reason
whatsoever by a court of competent jurisdiction or an arbitration tribunal, such
provision shall be as narrowly construed as possible, and each and all of the
remaining terms, provisions, promises, covenants and conditions of this
Agreement or their application to other persons or circumstances will not be
affected thereby and shall be valid and enforceable to the fullest extent
permitted by law.  To the extent this Agreement is in violation of any
applicable laws, the parties shall negotiate in good faith to amend this
Agreement, to the extent possible consistent with its purposes, to conform to
applicable laws.  None of the parties to this Agreement shall claim or
assert illegality as a defense to the enforcement of this Agreement or any
provision hereof.

     

    10. Complete
Agreement.  This Agreement, those documents expressly referred
to herein and other documents of even date herewith embody the complete
agreement and understanding among the parties and supersede and preempt any
prior understandings, agreements or representations by or among the parties,
written or oral, which may have related to the subject matter hereof in any
way.

     

    
      
        
        

      

      
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    11. Enforcement.  In
the event any party to this Agreement resorts to legal action to enforce or
interpret any provision of this Agreement, the prevailing party will be entitled
to recover the costs and expenses of such action so incurred, including
reasonable attorney’s fees.

     

    12. Effectiveness.  The
parties may execute this Agreement in separate counterparts, each of which shall
be deemed an original and all of which together will constitute one and the same
instrument.  To the extent signed and delivered by means of a
facsimile machine or other electronic transmission (including transmission in
portable document format by electronic mail), this Agreement shall be treated in
all manners and respects and for all purposes as an original and shall have the
same binding legal effect as if it were the original signed version thereof
delivered in person.  None of the undersigned shall raise the use of a
facsimile machine or other electronic transmission to deliver a signature or the
fact that such signature was transmitted or communicated through the use of a
facsimile machine or other electronic transmission as a defense to the
enforceability of this Agreement and each of the undersigned forever waives any
such defense.

     

    13. Successors and
Assigns.  This Agreement will be binding upon and inure to the
benefit of Chardan and each Company and any successor to any of them (to which
this Agreement may be assigned), including without limitation any persons
acquiring directly or indirectly all or substantially all of the business or
assets of Chardan or either Company, whether by purchase, merger, consolidation,
reorganization or otherwise (and such successor shall thereafter be deemed
Chardan or a Company, as the case may be, for the purposes of this
Agreement).  This Agreement will inure to the benefit of and be
enforceable by Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees and legatees, but otherwise will
not otherwise be assignable, transferable or delegable by
Executive.

     

    14. Governing Law; Venue;
Jurisdiction.  This Agreement, and all matters arising under or
related hereto, shall be governed according to the laws of the State of Florida,
without respect to its conflict of law principles.  Each party hereby
consents to the exclusive jurisdiction of the courts of the State of Florida and
of the United States of America in the County of Broward for any actions, suits
or proceedings arising out of or relating to this Agreement and the transactions
contemplated hereby (and each party agrees not to commence any action, suits or
proceeding relating thereto except in such courts).

     

    15. Amendment of
Agreement.  This Agreement may not be modified or amended
except by an instrument in writing signed by the parties hereto.  The
parties agree that this Agreement may be amended to comply with applicable law,
including, but not limited to, Code Section 409A and Code Section
457A.

     

    16. Insurance.  The
Companies may, at their discretion, apply for and procure in their own name and
for their own benefit life and/or disability insurance on Executive in any
amount or amounts considered advisable.  Executive agrees to cooperate
in any medical or other examination, supply any information and execute and
deliver any applications or other instruments in writing as may be reasonably
necessary to obtain and constitute such insurance.

     

    
      
        
        

      

      
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    17. Executive’s
Cooperation.  During the Employment Period and thereafter,
Executive shall cooperate with Chardan and each Company in any internal
investigation or administrative, regulatory or judicial proceeding as reasonably
requested by Chardan or a Company (including, without limitation, Executive
being available to Chardan and each Company upon reasonable notice for
interviews and factual investigations, appearing at the request of Chardan or
either Company to give testimony without requiring service of a subpoena or
other legal process, volunteering to Chardan or either Company all pertinent
information and turning over to Chardan or either Company all relevant documents
which are or may come into Executive’s possession, all at times and on schedules
that are reasonably consistent with Executive’s other permitted activities and
commitments).  In the event Chardan or either Company requires
Executive’s cooperation in accordance with this Section 17 after the end of the
Employment Period, Chardan or such Company, as the case may be, shall pay
Executive a per diem reasonably determined by the relevant Board and reimburse
Executive for reasonable expenses incurred in connection therewith (including
lodging and meals, upon submission of receipts).

     

    18. Code Section 409A and Code
Section 457A.  It is intended that the payments under this
Agreement shall be exempt from or in compliance with Code Section 409A and, to
the extent applicable, Code Section 457A, and Chardan and each Company reserves
the right to amend the terms of the Agreement if necessary either to exempt the
payments or comply with Section 409A and, to the extent applicable, Code Section
457A.  However, in no event shall the Companies or Chardan be
responsible for any tax or penalty owed by Executive or Executive’s spouse or
beneficiary, with regard to any benefit provided for under this
Agreement.

     

    19. Tax
Withholding.  Chardan and/or any Company may withhold amounts
from any payments made to Executive under this Agreement to satisfy all
applicable Federal, State, local or other income (including excise) and
employment withholding taxes.  In the event Chardan and each Company
fails to withhold such sums for any reason, or withholding is required for any
non-cash payments provided in connection with any benefits paid to Executive
pursuant to this Agreement, Chardan or any Company may require Executive to
promptly remit to Chardan or a Company sufficient cash to satisfy all applicable
income and employment withholding taxes.

     

    20. Excess Parachute
Payments.  It is the intent of the parties hereto that no
amount payable pursuant to the terms of this Agreement shall cause any payment
or transfer by the Companies or Chardan for the benefit of Executive, whether
paid or payable (or transferred or transferable) pursuant to the terms of this
Agreement or otherwise (a “Payment”), to be subject to taxation under Code
Section 4999 as an “excess parachute payment” as defined in Code Section
280G.  To the extent that it is determined that a Payment constitutes
an “excess parachute payment,” the Payment will be reduced to the highest amount
permissible under Code Sections 280G and 4999 as necessary to prevent Executive
from becoming subject to the excess parachute payment excise tax under Code
Section 4999 and as necessary to prevent the Companies or Chardan from losing
all or part of its compensation deduction for such payment to the extent such
deduction is applicable.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    21. Construction.

     

    (a) All
references in this Agreement to “Sections” and “Exhibits” refer to the Sections
and exhibits of this Agreement.  The Section headings and titles
appearing in this Agreement are inserted only as a matter of convenience and in
no way define, limit, construe, or describe the scope or extent of such Section
or in any way affect this Agreement or the interpretation hereof.

     

    (b) All
references to “$” or “dollars” will be to United States dollars and all
references to “days” will be to calendar days unless otherwise
specified.

     

    (c) As used
in this Agreement, neutral pronouns and any variations thereof shall be deemed
to include the feminine and masculine and all terms used in the singular shall
be deemed to include the plural, and vice versa, as the context may
require.

     

    (d) The words
“hereof”, “herein” and “hereunder” and other words of similar import refer to
this Agreement as a whole, as the same may from time to time be amended or
supplemented, and not to any subdivision contained in this
Agreement.

     

    (e) The word
“including” when used herein is not intended to be exclusive and means
“including, but not limited to.”  The word “or” when used herein is
not intended to be exclusive unless the context clearly requires
otherwise.

     

    (f) The
exhibits hereto will be deemed to be incorporated in and an integral part of
this Agreement.

     

    (g) All
provisions of this Agreement have been mutually negotiated and
drafted.  The provisions of this Agreement will be interpreted and
construed in accordance with their fair meanings, and not strictly for or
against any party, regardless of which party may have drafted this Agreement or
any specific provision.

     

    22. Directors’ and Officers’
Insurance.  During the Employment Period and for six (6) years
thereafter, Chardan and each Company agrees to maintain directors’ and officers’
insurance covering Executive on the same terms as it maintains such insurance
for the benefit of any other director or officer (or any former director or
officer) of Chardan or either Company.

     

    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
set forth above.

     

    [SIGNATURE
PAGE FOLLOWS]

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

     

    
      
        	 	DAL
      GROUP, LLC	 
	 	 	 	 
	 	By:  FLATWORLD
      DAL LLC, its Member	 
	 	 	 	 
	 	
                By:  NAGINA
      ENGINEERING INVESTMENT

                        CORP.,
      its Member

              	 
	 	 	 	 
	 	By:
      	_________________________________________	 
	 	 	Raj
      K. Gupta	 
	 	 	President	 
	 	 	 	 
	 	DJS
      PROCESSING, LLC	 
	 	 	 	 
	 	By: 	_________________________________________	 
	 	 	David
      J. Stern	 
	 	 	President	 
	 	 	 	 
	 	CHARDAN
      2008 CHINA ACQUISITION CORP.	 
	 	 	 	 
	 	By: 	_________________________________________	 
	 	 	Kerry
      Propper	 
	 	 	Chief
      Executive Officer	 
	 	 	 	 
	 	 	_________________________________________	 
	 	 	DAVID
      J. STERN	 

      

    

     

     

     

     

     

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
I

     

    [date]

     

    Dear Mr.
Stern:

     

    This
letter will confirm the agreement between you and Chardan 2008 China Acquisition
Corp. (“Chardan”), DAL Group,
LLC (“DAL”),
DJS Processing LLC (“Processing”) and
their Affiliates, (each a “Company” and
collectively referred to herein as the “Companies”) as
follows:

     

    1.           Separation from the
Company.

     

    By
signing this letter agreement you acknowledge that the termination of your
employment with the Company will be effective on ____________ (the “Separation
Date”).  As of the Separation Date, you will cease to be an
employee of any Company, and you will no longer be required to fulfill any of
the duties and responsibilities associated with your positions.  In
addition, your Employment Agreement dated January 15, 2010 among you, Chardan,
Processing and DAL (the “Employment
Agreement”) will terminate as of the Separation Date, except as otherwise
provided therein.  You further agree that, as of the later of
Separation Date or the end of the Initial Period (as defined in the Voting
Agreement dated January 15, 2010 between Chardan, others and you), you hereby
resign from any position on any Board (as defined in the Employment Agreement)
of the Companies.

     

    2.           Severance
Benefits.

     

    In
exchange for your execution of this letter agreement, including the Release in
Section 3 and your continued compliance that certain Confidentiality and
Noncompetition Agreement dated as of January 15, 2010 between you and the
Companies (the “Confidentiality
Agreement”), the Companies agrees to provide you with the “Severance Benefits”
as defined in Section 6(a) of the Employment Agreement. Such Severance Benefits
will not be provided until this letter agreement becomes effective and
enforceable, and, subject to such condition, such Severance Benefits shall be
payable no later than the time frames set forth in Section 6(a) of the
Employment Agreement.  Such Severance Benefits shall not be considered
compensation for purposes of any employee benefit plan, program, policy or
arrangement maintained or hereafter established by the Company or any of its
Affiliates.  You understand that the Severance Benefits provided to
you represent consideration for signing this letter agreement and are not
salary, wages or benefits to which you were already entitled.  You
also acknowledge and represent that you have already received everything
(including, without limitation, all compensation, benefits and any other payment
or form of remuneration of any kind) to which you were entitled by virtue of
your employment relationship with each Company through the Separation
Date.

     

    
      
        
        

      

      
        Ex.
1-1

        
          

        

      

      
        
        

      

    

     

    3.           Release by
You.

     

    (a)           You
(for yourself, your heirs, assigns or executors) release and forever discharge
each Company, its Affiliates (as defined below), successor and assigns, and each
of their respective directors, officers, members, agents, shareholders,
employees attorneys and representatives (collectively, the “Company Entities”)
from any and all claims, suits, demands, causes of action, contracts, covenants,
obligations, debts, costs, expenses, attorneys’ fees, liabilities of whatever
kind or nature in law or equity, by statute or otherwise whether now known or
unknown, vested or contingent, suspected or unsuspected, and whether or not
concealed or hidden, which have existed or may have existed, or which do exist,
through the date this letter agreement becomes effective and enforceable,
(“Claims”) of
any kind, including, without limitation, those Claims which relate in any way to
your employment with any Company or the termination of that employment, except
those arising out of (i) the performance of this letter agreement, (ii) your
rights under the employee benefit plans of any Company, (iii) your rights
to accrued, unused vacation and PTO, (iv) your right to any indemnification by
any Company pursuant to its articles of incorporation or organization, bylaws,
operating agreement or limited liability company agreement, (v) your rights to
coverage under any Company’s directors’ and officers’ insurance policy, (vi)
your rights as a shareholder or member of any Company (to the extent you
continue to own capital shares or membership interests in any Company following
the execution of this Agreement), and (vii) your rights with respect to stock
options or other similar equity-based incentives granted to you by any Company,
as determined under the applicable plans and award agreements (to the extent
such rights survive a termination of employment).  Such released
claims include, without in any way limiting the generality of the foregoing
language, any and all claims of employment discrimination under any local,
state, or federal law or ordinance, including, without limitation,
Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act
of 1991; the Americans with Disabilities Act of 1990; the Age Discrimination in
Employment Act of 1967 (“ADEA”), as amended (which prohibits discrimination in
employment based on age); Older Workers Benefit Protection Act of 1990 (“OWBPA”)
(which also prohibits discrimination in employment based on age).

     

    (b)           In
signing this letter agreement you acknowledge that you intend that it shall be
effective as a bar to each and every one of the Claims hereinabove mentioned or
implied.  You expressly consent that this letter agreement shall be
given full force and effect according to each and all of its express terms and
provisions, including those relating to unknown and unsuspected Claims
(notwithstanding any state statute that expressly limits the effectiveness of a
general release of unknown, unsuspected and unanticipated Claims), if any, as
well as those relating to any other Claims hereinabove mentioned or
implied.  You acknowledge and agree that this waiver is an essential
and material term of this letter agreement and without such waiver the Companies
would not have provided the Severance Benefits described in Section
2.  You further agree that in the event you bring your own Claim in
which you seek damages against any Company, or in the event you seek to recover
against any Company in any Claim brought by a governmental agency on your
behalf, this release shall serve as a complete defense to such
Claims.

     

    
      
        
        

      

      
        Ex.
1-2

        
          

        

      

      
        
        

      

    

     

    (c)           By
signing this letter agreement, you acknowledge that you:

     

    
      	
               
      

            	
              (i)

            	
              have
      been given twenty-one days after receipt of this letter agreement within
      which to consider it;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              have
      carefully read and fully understand all of the provisions of this letter
      agreement;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              knowingly
      and voluntarily agree to all of the terms set forth in this letter
      agreement;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              knowingly
      and voluntarily agree to be legally bound by this letter
      agreement;

            

    

     

    
      	
               
      

            	
              (v)

            	
              have
      been advised and encouraged in writing (via this letter agreement) to
      consult with an attorney prior to signing this letter agreement;
      and

            

    

     

    
      	
               
      

            	
              (vi)

            	
              understand
      that this letter agreement, including the Release, shall not become
      effective and enforceable until the eighth day following execution of this
      letter agreement, and that at any time prior to the effective day you can
      revoke this letter agreement by delivering written notice of such
      revocation to ___________ no later than the seventh day after your
      execution of this letter
agreement..

            

    

     

    4.           No Pending Lawsuits and No
Assignment of Claims.  You represent and warrant that you have
not filed any Claim, lawsuit or charge against any of the Company Entities that
will not be discharged as a result of this letter agreement, except as otherwise
provided in Section 4(a) of this letter agreement.  You hereby promise
never to file a lawsuit asserting any Claims that you have released in Paragraph
3, above.  In addition, to the extent any such proceeding or charge
may be brought by anyone (including the EEOC), you expressly waive any Claim to
any form of monetary or other damages, or any other form of recovery or relief
in connection with any such action.  You further represent and warrant
that you have not heretofore assigned or transferred, or purported to assign or
transfer, to any person, firm, corporation or entity any Claim or other matter
herein released by you.  Notwithstanding the foregoing, nothing herein
shall prohibit you from challenging the validity of the ADEA or OWBPA waiver
herein; however, in the event you unsuccessfully do so, you may be held liable
for the Company Entities’ attorney’s fees and costs to the same extent that
successful defendants are allowed attorney’s fees under the ADEA and/or
OWBPA.

     

    5.           Consequences of Your
Violation of Promises.  If you breach this letter agreement
including, but not limited to, by filing, bringing or participating in any
Claims or actions contrary to your agreements and representations made herein,
including, but not limited to, those in paragraphs 3 and 5 above, in addition to
any other rights and remedies the Companies may have, (i) you will immediately
repay to the Companies all amounts received by you hereunder; (ii) you shall
forfeit all rights to any and all future payments and benefits, if any, to be
provided under this letter agreement; and (iii) you agree to pay all costs and
expenses, including reasonable attorneys’ fees, incurred by the Companies or any
of the Company Entities in defending against such Claims or actions brought by
you or on your behalf or in enforcing the terms of this letter
agreement.  

     

    
      
        
        

      

      
        Ex.
1-3

        
          

        

      

      
        
        

      

       

      The
preceding sentence shall not apply to any Claims that you file under ADEA or
OWBPA or any challenge that you make to the validity of the ADEA or OWBPA waiver
contained in this letter agreement.  In the event you unsuccessfully
challenge the validity of the ADEA or OWBPA waiver herein, you may be held
liable for the Companies' attorneys' fees and costs to the same extent that
successful defendants are allowed attorneys' fees under the ADEA and/or
OWBPA.

    

     

    6.           Non-Disparagement.  You
agree not to make, or cause to be made, any disparaging, negative or adverse
remarks whatsoever, whether in public or private, and whether written, oral or
otherwise, concerning any of the Company Entities or their respective
businesses, products or services.  This paragraph does not apply to
factual statements made in connection with legal proceedings, governmental and
regulatory investigations and actions, and internal Company investigations or
any other statement or disclosure required by law.

     

    7.           Affiliates. An
“Affiliate” of a Person is a person that directly, or indirectly through one or
more intermediaries, controls, or is controlled by, or is under common control
with, the Person.  “Person” includes a natural person, a trust or
estate, a Company, partnership, limited liability company, or other legal
entity.

     

    8.           Code Section 409A and Code
Section 457A. It is intended that the payments under this letter
agreement shall be exempt from, or in compliance with, Code Section 409A and, to
the extent applicable, Code Section 457A, and each Company reserves the right to
amend the terms of this letter agreement if necessary either to exempt the
payments or comply with Code Section 409A and, to the extent applicable, Code
Section 457A.  However, in no event shall the Companies be responsible
for any tax or penalty owed by Executive or Executive’s Spouse or beneficiary,
with regard to any benefit provided for under the Employment
Agreement.

     

    9.           Additional
Agreements. You further agree that as of the date hereof, you have
returned to each Company any and all property, tangible or intangible, relating
to its business, which you possessed or had control over at any time (including,
but not limited to, company-provided credit cards, building or office access
cards, keys, computer equipment, manuals, files, documents, records, software,
customer data bases and other data) and that you shall not retain any copies,
compilations, extracts, excerpts, summaries or other notes of any such manuals,
files, documents, records, software, customer data bases or other
data.

     

    10.           Confidentiality of this
Letter Agreement. The contents of this letter agreement, including but
not limited to its financial terms, are strictly confidential. By signing this
letter agreement you agree and represent that you will maintain the confidential
nature of this letter agreement, except (a) to legal counsel, tax and financial
planners, and immediate family who agree to keep it confidential, (b) as
otherwise required by law, in which case you shall notify Processing in writing
in advance of disclosure, and (c) as necessary to enforce this letter
agreement.

     

    
      
        
        

      

      
        Ex.
1-4

        
          

        

      

      
        
        

      

    

     

    11.           No Transfer or
Assignment. You and the Companies agree that no interest or right you
have or any of your beneficiaries has to receive payment or to receive benefits
under this letter agreement shall be subject in any manner to sale, transfer,
assignment, pledge, attachment, garnishment, or other alienation or encumbrance
of any kind, except as required by law.  Nor may such interest or
right to receive payment or distribution be taken, voluntarily or involuntarily,
for the satisfaction of the obligations or debts of, or other claims against you
or your beneficiary, including for alimony, except to the extent required by
law.

     

    12.           No Admissions. This
letter agreement shall not be construed as an admission of any wrongdoing by any
Company, or its directors, officers, agents and employees.

     

    13.           Complete Agreement.
This letter agreement, those documents expressly referred to herein and other
documents of even date herewith embody the complete agreement and understanding
among the parties and supersede and preempt any prior understandings, agreements
or representations by or among the parties, written or oral, which may have
related to the subject matter hereof in any way.  Notwithstanding
anything to the contrary contained herein, you acknowledge and agree that you
remain bound by that certain Confidentiality Agreement.

     

    14.           Amendment of
Agreement.  This letter agreement may not be modified or
amended except by an instrument in writing signed by the parties
hereto.  The parties agree that this Agreement may be amended to
comply with applicable law, including but not limited to, Code Section
409A.

     

    15.           Governing Law; Venue;
Jurisdiction. This letter agreement, and all matters arising and/or
related hereto, shall be governed according to the laws of the State of Florida,
without respect to its conflict of laws principles.  Each party hereby
consents to the exclusive jurisdiction of the courts of the State of Florida and
of the United States of America in the County of Broward for any actions, suits
or proceedings arising out of or relating to this letter agreement and the
transactions contemplated hereby (and each party agrees not to commence any
action, suits or proceeding relating thereto except in such
courts).

     

    16.           Severability.  If
any one or more of the terms, provisions, promises, covenants or conditions of
this letter agreement or the application thereof to any person or circumstance
will be adjudged to any extent invalid, unenforceable, void or voidable for any
reason whatsoever by a court of competent jurisdiction or an arbitration
tribunal, such provision will be as narrowly construed as possible, and each and
all of the remaining terms, provisions, promises, covenants and conditions of
this letter agreement or their application to other persons or circumstances
will not be affected thereby and will be valid and enforcement to the fullest
extent permitted by law.  To the extent this letter agreement is in
violation of any applicable laws, the parties shall negotiate in good faith to
amend this letter agreement, to the extent possible consistent with its
purposes, to conform to applicable laws.  Neither party shall claim or
assert illegality as a defense to the enforcement of this letter agreement or
any provision hereof.

     

    17.           Effectiveness. The
parties may execute this letter agreement in separate counterparts, each of
which shall be deemed an original and all of which together will constitute one
and the same instrument.  To the extent signed and delivered by means
of a facsimile machine or other electronic transmission (including transmission
in portable document format by electronic mail), this letter agreement shall be
treated in all manners and respects and for all purposes as an original and
shall have the same binding legal effect as if it were the original signed
version thereof delivered in person.  None of the parties shall raise
the use of a facsimile machine or other electronic transmission to deliver a
signature or the fact that such signature was transmitted or communicated
through the use of a facsimile machine or other electronic transmission as a
defense to the enforceability of this letter agreement and each of the parties
forever waives any such defense.

     

    
      
        
        

      

      
        Ex.
1-5

        
          

        

      

      
        
        

      

    

     

    Please
indicate your agreement by signing this letter and returning it to us on or
before _______________.

     

    
      
        	 	Very
      truly yours,	 
	 	 	 
	 	 	 
	 	CHARDAN
      2008 CHINA ACQUISITION CORP.	 
	 	 	 	 
	
                 

              	
                By:
      

              	________________________________________	 
	 	 	 	 
	 	Its:	 	 
	 	 	 	 
	 	DAL
      GROUP, LLC	 
	 	 	 	 
	 	By: 	________________________________________	 
	 	 	 	 
	 	Its: 	 	 
	 	 	 	 
	 	DJS
      PROCESSING, LLC	 
	 	 	 	 
	 	By:	________________________________________	 
	 	 	 	 
	 	Its:	 	 

      

    

     

     

    AGREED TO
AND ACCEPTED BY:

     

    _____________________________

    David J.
Stern

     

    Dated:

     

    

     

     

     

     

    
      
        
        

      

      
        Ex.
1-6

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