Document:

Management Entrustment Agreement

EXHIBIT 10.1

Management Entrustment Agreement

This Agreement is made and entered into on September 27, 2009 in Jianou City, Fujian Province, P.R.C., by and between the following parties:

Party A: Jianou Lujian Foodstuff Co., Ltd.

Registered business address: Shui Xi Bei Jin Keng, Jian’ou City

Party B: Fujian United Bamboo Technology Co., Ltd.

Registered business address: ×××××× 

WHEREAS:

1.

Party A is an enterprise registered in Jianou City, Fujian Province, and legally exists to date. The number of its business license is 350783100011136.

2.

Party B is a Wholly Foreign-owned Enterprise registered in Jianou, and legally exists to date. The number of its business license is ××××××

3.

In order to let Party B realize the purpose of managing Party A, Party A intends to irrevocably entrust to Party B for its management the right of operation management of Party A and the responsibilities and authorities of the investors and the executive director of Party A.

4.

Party B agrees to accept the entrustment of Party A, and to exercise the right of operation management of Party A and the responsibilities and authorities of the investors and the executive director of Party A.

5.

Party A has obtained the approval of its investors to enter into this Agreement. The investors also have issued the commitment letter of competing industry prohibition.

NOW, THEREFORE, through friendly consultation, under the principle of equality and mutual benefits, in accordance with the relevant laws and regulations of the People’s Republic of China, the parties agree to enter into this Agreement and to be bound with the terms and conditions as follows:

Article 1 Entrusted Operation

1.1

Party A agrees to irrevocably entrust the right of operation management of Party A and the responsibilities and authorities of Party A’s investors and the executive director to Party B in accordance with the terms and conditions of this Agreement.  Party B agrees to exercise the aforesaid rights and responsibilities in accordance with the terms and conditions of this Agreement.

1.2

The term of the entrusted operation is from the effective date of this Agreement to the earliest date of the following: 

1)

The termination date of Party A’s business; or

2)

The termination date when this agreement is terminated by the designated person from the board of directors of Party B; or

3)

The date on which Party B possesses more than 51% of Party A’s shares,and this agreement is approved to be terminated by the designated person from the board of directors of Party B.

1.3

The purpose of the entrusted operation is: Party B shall be in charge of the normal business operations of Party A and perform the responsibilities and rights of Party A’s investors and the executive director, and Party A shall pay its profit (if any) to Party B and Party B shall be responsible to Party A’s loss (if any).  During the term of the entrusted operation, Party B, as the entrusted manager, shall provide full management to Party A’s operations.

1.4

The contents of the entrusted operation shall include but not be limited to the following:

1)

Party B shall be in charge of all aspects of Party A’s operations; nominate and replace the members of Party A’s executive director, engage Party A’s management staff and decide their compensation.  

2)

Party B shall manage and control all the funds of Party A.  The account of Party A shall be managed and decided solely by Party B.  The seals and signatures for such account shall be the seals and signatures of the personnel appointed and confirmed by Party B.  All the cash of Party A shall be kept in this entrusted account shall be handled through this account, including but not limited to receipt of all Party A’s business income, current working capital, recovered account receivables, etc., and the payment of all account payables and operation expenses, employee salaries and asset purchases, etc.

3)

All the matters of Party A, including internal financial management, day-to-day operation, external contact execution and performance, tax filing and payment, change of rights and personnel, etc., shall be controlled and managed by Party B in all aspects.

4)

Party B shall enjoy all the other responsibilities and rights enjoyed by Party A’s investors in accordance with the Company Law and the articles of association of Party A, including but not limited to the following:

a.

Deciding  Party A’s operation principles and investment plan;

b.

Nominating the executive director or the supervisor;

c.

Discussing and approving the report of the executive director or the supervisor;

d.

Discussing  and approving the annual financial budget and settlement plan;

e.

Discussing and approving the profit distribution plan and the loss compensation plan;

f.

Resolving on the increase or decrease of the registered capital;

g.

Resolving on the issuance of the corporate bond;

h.

Resolving on the matters including merger, division, change of corporate form, dissolution and liquidation of the company;

i.

Amending the articles of association;

j.

Other responsibilities and rights provided by Party A’s articles of association. 

5)

Party B enjoys all the other responsibilities and rights enjoyed by Party A’s executive director in accordance with the Company Law and the articles of association of Party A, including but not limited to the following:

a.

Executing the resolution of the investors;

b.

Deciding the company’s operation plan and investment scheme;

c.

Composing the annual financial budget and settlement plan;

d.

Formulating the profit distribution plan and the loss compensation plan;

e.

Formulating  the plans regarding to the increase or decrease of the registered capital and the issuance of the corporate bond;

f.

Formulating the plans regarding to the matters including merger, division, change of corporate form and dissolution of the company;

g.

Deciding on the establishment of the internal management structure of the company;

h.

Formulating  the basic rules and regulations of the company;

i.

Representing the company to sign relative documents;

j.

Other responsibilities and rights provided by Party A’s articles of association      

6)

The said entrustment is irrevocable and shall not be withdrawn, unless the Agreement is terminated.

1.5

The Fee of Entrusted Operation: For the performance of the entrusted matters provided under this Agreement, Party A shall pay an entrustment fee to Party B, which shall be Party A’s total profit (if any) after deduction of necessary expenses.  Party A shall transfer the payment, which is obtained by leasing its real estate, land use right, equipments and bamboo bases to Party B as the entrustment fee in accordance with the lease. If the net amount is zero or negative after the aforesaid calculation, Party A shall not pay any entrustment fee, and the loss of the given month shall be deducted in the following months’ entrustment fee.  Party A and Party B shall calculate and settle each month’s entrustment fee payable by Party A within 10 days after the end of that month.

1.6

The Assumption of the Entrustment Risk: Party B shall assume all the operation risks in association with the management of Party A entrusted to it.  Party B shall be responsible for any loss incurred to Party A’s operation.  If Party A’s cash is not enough to pay its debt, Party B is liable to pay the debt; if the loss leads to a net asset balance of less than the registered capital, Party B shall be liable to make up for the deficiency.

Article 2 Rights and Obligations of the Parties

2.1

During the term of the entrusted operation, the rights and obligations of Party A shall include:

1)

After the execution of this Agreement, the management of Party A shall be handed over to Party B. Party A’s executive director shall, within 5 days after the effective date of this Agreement, deliver Party A’s seals and financial materials (including but not limited to balance sheet, profit and loss statement, cash flow statement and any attachments, relevant right certificates and other proprietary and operation documents) to Party B to ensure that Party B could exercise its operation management rights in all aspects after taking over the management of Party A and could set up financial records accordingly;

2)

During the term of the entrusted operation, without Party B’s consent, Party A and its investors and executive director shall not make any decision on Party A’s operations, and they shall not intervene with Party B’s entrusted management activities in any form;

3)

During the term of the entrusted operation, Party A’s executive director shall have  the obligation to cooperate with Party B in accordance with Party B’s request to ensure the stability and consistency of the operation;

4)

To entrust the authorities of the investors and the executive director to Party B;

5)

To timely pay the entrustment fee to Party B;

6)

Without Party B’s consent, Party A shall not entrust any third party other than Party B in any form to manage Party A’s businesses;

7)

The executive director and investors of Party A shall issue necessary documents for the purpose of accomplishing the management by Party B;

8)

Party A shall not unilaterally early terminate this Agreement for any reason.

9)

Other rights and obligations of Party A provided under this Agreement.   

2.2

During the term of the entrusted operation, the rights and obligations of Party B shall include:

1)

Party B shall enjoy independent and comprehensive management right over Party A’s operations;

2)

Party B shall have the right to adjust the organizational structure and the personnel placement of Party A based on the needs of the management;

3)

Party B shall have the right to dispose of all the assets on the books of Party A on the execution day of this Agreement, and Party can B dispose of any of the aforesaid assets without any prior consent of Party A;

4)

Party B shall be entitled to all of the Party A’s income after deducting necessary expenses.

5)

Party B shall has the right to invest in the projects of new products and technologies of Party A, also enjoys the profits from these projects in the future.

6)

Party B shall take over of Party A in a timely manner;

7)

Party B shall carry out all the responsibilities and rights entrusted to it under this Agreement in good faith and with honesty and trustworthiness, and shall pay reasonable attention to the entrusted matters and notify Party A timely of relevant matters;

8)

Party B shall act in good faith and consult with Party A in regards to the handling of matters not covered by this Agreement;

9)

Other obligations shall be performed by Party B under this Agreement. 

Article 3 Warranties and Representations

Each party shall warrant and represent to the other party, on the execution day of this Agreement, that:

1)

Each party shall have the right to enter into this Agreement, and the ability to perform this Agreement;

2)

In order to execute and perform this Agreement, each party has gone through the necessary internal decision-making procedures and obtained the approval;

3)

Each party has duly authorized its representative to execute this Agreement;

4)

Each party shall not have any reason of its own that will encumber the effectiveness of this Agreement from the effective date and become binding on such party;

5)

The execution of this Agreement and the performance of the obligations hereunder will NOT:

a)

violate the business license, articles of association or any other similar documents of that party;

b)

violate the laws and regulations of P.R.C., or the government authorization or permit;

c)

violate any other contracts or agreements to which that party is a party (or is bound), or lead to that party’s breach of contract under such contracts or agreements.

Article 4  Effect of the Agreement

This Agreement shall be valid upon the subscription of both parties’ legal representatives or duly authorized representatives and the affixture of both parties’ corporate seals.

Article 5  Liability of Breach of the Agreement

After the effectiveness of this Agreement, apart from the situation described in Article 6 of this Agreement, either party’s violation of any provisions under this Agreement shall constitute a breach of this Agreement and thus be liable to compensate the non-breaching party for any damages that may arise thereof.

Article 6  Force Majeure

Either party’s failure to perform the obligations or part of the obligations of this Agreement due to a force majeure event shall not be deemed as a breach of the agreement; however, the non-performing party shall timely provide effective evidence of the force majeure event to the other party, and the parties shall discuss a settlement plan through consultation.

Article 7  The Governing Law

The execution, effectiveness, interpretation, performance and dispute resolution of this Agreement shall be governed by the laws and regulations of China.

Article 8  Dispute Resolution

Any dispute arising under this Agreement shall be first settled by the parties through friendly consultation. In case no settlement can be reached through consultation within thirty (30) days after such dispute is raised,either party can submit such matter to China International Economic and Trade Arbitration Commission (the “CIETAC”) in accordance with its rules. The arbitration shall take place in Beijing. The arbitration award shall be final, conclusive and binding upon both parties.

Article 9  Confidentiality 

9.1

The parties agree and shall cause their relevant personnel to keep strict confidence of all the terms and conditions of this Agreement and all the matters of the entrusted operation that have access to. They shall not disclose the aforesaid information to any third party unless it is required by the explicit provision of law, or the instruction of judicial or governmental agencies or with consent of the other party, otherwise, the disclosing party shall bear the relevant legal consequences.

9.2

The confidentiality obligation of the parties shall survive the termination of this Agreement.

Article 10 Severability of the Clauses

10.1 If any clause of this Agreement is invalidated or non-enforceable due to the provisions of laws or regulations, this clause is invalid while all other clauses shall remain in full force and effect and binding upon both parties.

10.2

In the event the aforesaid situation occurs, the parties agree that the designated person from the board of directors of Party B shall make in the best interest of both parties supplemental clauses to replace the invalid clauses. The supplemental clauses shall be binding upon both parties. 

Article 11 Non-waiver of Rights

11.1

If one party fails or delays to exercise a certain right provided under this Agreement, such failure or delay shall not constitute the waiver of such right by that party.

11.2

If one party fails to require the other party to perform a certain obligation provided under this Agreement, such failure shall not constitute the waiver by that party of the right to require the other party to perform at a later time.

11.3

If one party violates any clause of this Agreement and obtains a waiver of liability from the non-violating party, such waiver shall not constitute the waiver of liability by the non-violation party over the violations by the other party at a later time or of other clauses of this Agreement.

Article 12 No Transfer

Unless otherwise provided in this Agreement, without the prior written consent of the other party, one party shall not transfer or entrust this Agreement or any right or obligation under this Agreement to a third party, nor shall one party provide any guarantee to a third party or do other similar things.

Article 13 Miscellaneous 

13.1

Any supplemental agreements entered into by the parties after the effective date of this Agreement shall be an effective part of this Agreement and have the same legal effect as this Agreement.  If there is any discrepancy between the supplemental agreement and this Agreement, the supplemental agreement shall prevail.

13.2

This Agreement is written in Chinese and English. This Agreement is executed in six (6) official copies of each language, each party shall have two official copies of each language and the remaining shall be retained for the government procedure purposes. In the event of any conflict between the two versions, the Chinese version shall prevail.

13.3

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on this date first above written.

[NO CONTEXT BELOW, SIGNATURE PAGE ONLY]

Party A: Jianou Lujian Foodstuff Co., Ltd. (Seal)

Legal representative: (Signature)

Party B: Fujian United Bamboo Technology Co., Ltd. (Seal)

Authorized representative:  (Signature)

Undertaking of Shareholder

As the shareholder of Jianou Lujian Foodstuff Co., Ltd, I agree that Jianou Lujian Foodstuff Co., Ltd signs a Management Entrustment Agreement with Fujian United Bamboo Technology Co., Ltd., which irrevocably entrusts Fujian United Bamboo Technology Co., Ltd., for its management the right of operation management of Jianou Lujian Foodstuff Co., Ltd, and the right from us according to the laws and the company’s charter.

			
	                                                          

	The shareholders: 

	Tang Jinrong

	 
	 
	Li Lifang

	 
	 
	 

	 
	 
	Tang Shuiyou

	 
	 
	 

	 
	 
	September 27, 2009US Securities and Exchange Commission Edgar Filing

EXHIBIT 10.2

Shareholder’s Voting Proxy Agreement

 

This Shareholder’s Voting Proxy Agreement (the “Agreement”) is entered into as of September 27, 2009 between the parties in Jianou City, Fujian Province, P.R.C.:

Party A: Fujian United Bamboo Technology Co., Ltd.Registered Address: ××××××

Party B: Tang Jinrong, A citizen of P.R.C.,

And the Identity Card Number: 330621197112286799;

Li Lifang, A citizen of P.R.C.,

And the Identity Card Number: 330621197510251727;

Tang Shuiyou, A citizen of P.R.C.,

And the Identity Card Number: 330621194512026773

WHEREAS:

1.

Party A is a wholly foreign-owned enterprise incorporated under the laws of the People’s Republic of China (the “P.R.C.”), and registered at Administration of Industry and Commerce Bureau of Jianou City. The registered number is ××××××. It legally exists to date.

2.

As of the date of this Agreement, Party B are the shareholders of Jianou Lujian Foodstuff Co., Ltd. (“Jianou Lujian”) and collectively legally hold all of the equity interest of Jianou lujian;

3.

Jianou Lujian is an enterprise registered in Jianou City, Fujian Province, and legally exists to date. The number of its business license is 350783100011136.

4.

Party B desire to appoint the person designated by Party A to exercise their shareholders’ voting rights and other rights at Jianou Lujian in accordance with the laws and Jianou Lujian’s Articles of Association, and Party A is willing to designate such person.

NOW THEREFORE, the Parties hereby have reached the following agreement upon friendly consultations:

1.

Party B hereby agree to irrevocably appoint the person designated by Party A with the exclusive right to exercise, on their behalf, all of their shareholders’ voting rights at Jianou Lujian in accordance with the laws and Jianou Lujian’s Articles of Association, including but not limited to the rights to sell or transfer all or any of their equity interests of Jianou Lujian, and to appoint and elect the executive director of Jianou Lujian.

2.

Party A agrees to designate such Proxy Holders pursuant to Section 1 of this Agreement, and this person shall represent Party B to exercise their shareholders’ voting rights pursuant to this Agreement.

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3.

Both Parties to this Agreement hereby acknowledge that, regardless of any change in the equity interests of Jianou Lujian, Party B shall appoint the person designated by Party A with all shareholders’ voting rights. Both Parties to this Agreement agree that Party B can not transfer their equity interests of Jianou Lujian to any individual or company (other than Party A or the individuals or entities designated by Party A).

4.

Party B hereby acknowledge that they will withdraw the appointment of the person designated by Party A if Party A change such designated person and reappoint the substituted person designated by Party A as the new Proxy Holders to exercise their shareholders’ voting rights at Jianou Lujian.

5.

This Agreement sets forth and becomes effective when the Party A’s authorized representatives and Party B sign as the date mentioned on the first page.

6.

This Agreement shall not be terminated prior to the completion of acquisition of all of the equity interests in, or all assets of, Jianou Lujian by Party A;

7.

Any amendment and termination of this Agreement shall be in written and agreed upon by Both Parties.

8.

The conclusion, validity, interpretation, and performance of this Agreement and the settlement of any disputes arising out of this Agreement shall be governed by the laws and regulations of the People’s Republic of China.

9.

This Agreement is executed in Chinese and English in four (4) copies of each language; with everyone of Party A and Party B holding one copy of each language, and each original copy has the same legal effect. In the event of any conflict between the two versions, the Chinese version shall prevail.

[NO CONTEXT BELOW, SIGNATURE PAGE ONLY]

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[SIGNATURE PAGE]

PARTY A: Fujian United Bamboo Technology Co., Ltd. (Seal) 

Authorized Representative (Signature):

					
	PARTY B:  

	___________________

	 (Signature) 

	____________________

	(Signature)  

	 
	Tang Jinrong

	 
	Li Lifang

	 

	 
	 
	 
	 
	 

	 
	___________________

	(Signature)

	 
	 

	 
	Tang Shuiyou

	 
	 
	 

This Agreement is agreed and accepted by: 

Jianou Lujian Foodstuff Co., Ltd. (Seal) 

Legal Representative/Authorized Representative (Signature):

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