Document:

Exhibit 10.10

 

TRUST AGREEMENT

 

This
TRUST AGREEMENT (this “Trust Agreement”) is made as of August 26, 2004, by
and between:

 

Li Shun Xing, a male citizen of People’s Republic of
China (the “PRC”) holding Identity Certificate number
                   ;

Li Xiang Ning, a male citizen of the PRC, holding
Identity Certificate number
                   ;

Pang Da Qing, a male citizen of the PRC, holding
Identity Certificate number
                   ;

Xie Li, a male citizen of the PRC, holding Identity
Certificate number
                   ;

 

(Each
of the above 4 individuals is an “Existing Shareholder”, and collectively, such
individuals are the “Existing Shareholders”).

 

and

 

SCL Ventures Ltd. (“SCL”), a British Virgin Islands
company;

 

and

 

Weida Communications Technology Company Limited (the
“Company”), a PRC company, which is being converted from a PRC domestic company
into a Sino-foreign Equity Joint Venture (the “EJV”) under the laws of the PRC.

 

WHEREAS,
the Existing Shareholders presently hold all of the shares of the Company; and

 

WHEREAS,
the Existing Shareholders and SCL have executed various documents (including
but not limited to an Equity Joint Venture Agreement, an Equity Interest
Transfer Agreement, and a Future Equity Interest Transfer Agreement), under
which SCL is acquiring equity ownership (subject to PRC law, up to 51%) of the
Company and the EJV; and

 

WHEREAS,
the Existing Shareholders, SCL, and the Company intend that the Existing
Shareholders shall hold 51% of the shares of the Company and the EJV in trust,
for the benefit of SCL, pursuant to the terms and conditions of this Trust
Agreement;

 

NOW
THEREFORE, in consideration of the mutual covenants contained herein and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Existing Shareholders, SCL, and the Company hereby agree as
follows:

 

1.               Effective Date.  This Trust Agreement shall become effective
immediately upon the signing hereof by the Existing Shareholders, SCL, and the
Company.

 

1

 

2.               Declaration of Trust.  Each of the Existing Shareholders agrees and
declares that 51% of all shares of the Company which each Existing Shareholder
holds, presently or in the future (such shares being the “Trust Shares”), shall
henceforth be held, in trust, for the use and benefit of SCL.  All dividends, proceeds, rights, privileges,
and interests pertaining to the Trust Shares, whether existing presently or
acquired in the future, shall be held by each Existing Shareholder, in trust,
for the use and benefit of SCL. 
Further, it is specifically acknowledged and agreed that 51% of the
interests of each Existing Shareholder in the registered capital of the EJV
(into which the Company intends to convert) shall similarly be held, in trust,
for the use and benefit of SCL, including all dividends, proceeds, rights,
privileges, and interests pertaining to such 51% of the registered capital of
the EJV.  (References in this Agreement
to the Trust Shares shall include the interests of the Existing Shareholders in
51% of the registered capital of the EJV.)

 

3.               Each Existing Shareholder shall at all times
deal with, transfer and dispose of the Trust Shares (and all dividends,
proceeds, rights, privileges, and interests pertaining thereto), pursuant to
the written instructions of the SCL.

 

4.               Each Existing Shareholder will at any and all
times requested by SCL, sign and deliver any transfer, proxy form, receipt,
notice or other instrument relating to the Trust Shares (or any dividends,
proceeds, rights, privileges, and interests pertaining thereto). Each Existing
Shareholder shall at all times exercise the voting rights of the Trust Shares,
whether at any meetings of the Company or the EJV, or otherwise, in strict
compliance with the directions of SCL.

 

5.               Instructions, directions, or requests from SCL
to the Existing Shareholders shall be in writing.

 

6.               The following matters have been approved by SCL
(and are acknowledged as being intended and presently being implemented by Existing
Shareholders and the Company)

 

(a)                                  SCL is
acquiring 25% of the equity ownership of the Company, and simultaneously, the
Company is being converted from a PRC domestic company into a Sino-foreign
Equity Joint Venture; and

 

(b)                                 The Existing
Shareholders will pledge the Trust Shares to that certain wholly foreign owned
enterprise (the “WOFE”), which has entered into a certain Service and Support
Agreement with the Company, as security for the Company’s performance of its
obligations under the said Service and Support Agreement; and

 

(c)                                  The Existing
Shareholders shall transfer to SCL, free of trust, all of the Existing
Shareholders’ interests in the Trust Shares, from time to time, up to the then
maximum permitted by PRC law.

 

7.               No
encumbrance, liability, or obligation whatsoever, shall be created, imposed, or
incurred against or concerning the Trust Shares or SCL, by the actions or
inaction of any Existing Shareholder or the Company, without the prior written
consent of SCL.

 

2

 

8.               Miscellaneous.

 

A.           This Trust Agreement shall not be
amended or waived, except with the written consent of SCL.

 

B.             This Trust
Agreement shall be construed in accordance with the laws of the Hong Kong
Special Administrative Region of the People’s Republic of China, without regard
to the principles of conflicts of law. 
Any unresolved dispute shall be submitted to arbitration in Hong Kong,
pursuant to the rules of the Hong Kong International Arbitration Centre.

 

C.             This Trust
Agreement shall inure to the benefit of and be binding upon the successors and
assigns of SCL.  An Existing Shareholder
shall not assign or transfer any of his/her rights or obligations under this
Trust Agreement.

 

D.            The captions
to sections or subsections of this Trust Agreement have been inserted for
reference purposes only and shall not be used to construe or interpret this
Trust Agreement.

 

3

 

IN
WITNESS WHEREOF, the Existing Shareholders, SCL, and the Company have executed
this Trust Agreement as of the date first above written.

 

	
  Li Shun Xing

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  
	
   

  	
   

  
	
  /s/ Li Shun Xing

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Li Xiang Ning

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  
	
   

  	
   

  
	
  /s/ Li Xiang Ning

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Pang Da Qing

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  
	
   

  	
   

  
	
  /s/  Pang Da Qing

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Xie Li

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  
	
   

  	
   

  
	
  /s/  Xie Li

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SCL Ventures Ltd.

  	
   

  
	
   

  
	
  By:

  	
  /s/  Mitchell Sepaniak

  	
   

  
	
  Name:

  	
  Mitchell Sepaniak

  
	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Weida Communications Technology Company Limited

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Li Shunxing

  	
   

  
	
  Name:

  	
  Li Shunxing

  
	
  Title:  Legal Representative

  
							

 

4Exhibit 10.11

 

POWER OF ATTORNEY

 

GRANTORS:

 

Li Shunxing, a PRC citizen; ID card no. 440102401122232

Li Xiangning, a PRC citizen; ID card no. 110108570130491

Pang Daqing, a PRC citizen; ID card no. 110102590924233

Xie Li, a PRC citizen; ID card no. 110108580903632; and

Guangzhou Weida Communication Technology Co., Ltd., a PRC limited
company.

 

GRANTEE:

 

Deng Longlong; ID card no. 440102400325321.

 

Concerning the acquisition (the “Project”) of Guangzhou Weida
Communication Technology Co., Ltd., (“Weida”) by SCL Ventures Ltd., and its
affiliates, the Grantors hereof authorize the Grantee to conduct the following
activities on behalf of the Grantors:

 

1.               to negotiate concerning the Project;

2.               to make commitments concerning the
Grantors’ rights and obligations concerning the Project; and

3.               to sign all contracts, agreements and
documents concerning the Project.

 

The Grantors hereby represent that all activities conducted by and all
documents signed by the Grantee within the scope described above shall be legally
binding upon the Grantors.

 

This Power of Attorney has been executed by the Grantors on August 23,
2004.

 

Signatures:

 

	
  Li Shunxing

  	
  /s/  Li Shunxing

  	
   

  
	
   

  	
   

  
	
  Li Xiangning

  	
  /s/  Li Xiangning

  	
   

  
	
   

  	
   

  
	
  Xie Li

  	
  /s/  Xie Li

  	
   

  
	
   

  	
   

  
	
  Pang Daqing

  	
  /s/  Pang Daqing

  	
   

  
	
   

  	
   

  
	
  Guangzhou Weida Communication Technology Co., Ltd.

  
	
   

  	
   

  
	
  Authorized Representative:  Li
  Shun Xing

  	
  /s/  Li Shun Xing

  	
   

  
	
   

  
	
  Deng Longlong

  	
  /s/  Deng LonglongExhibit 10.12

 

Contract
Number:  DXHZ-JT-20040004

 

CHINA TELECOM GROUP SYSTEM INTEGRATION CO., LTD.

 

AND

 

GUANGZHOU WEIDA COMMUNICATION TECHNOLOGY CO., LTD.

 

 

 

BUSINESS EXPANSION COOPERATION AGREEMENT

 

 

August 27, 2004

 

 

 

BUSINESS EXPANSION COOPERATION AGREEMENT

 

Party
A: China Telecom Group System Integration Co., Ltd.

Address:
15th floor, No. 31, Finance Avenue, West City Area, Beijing

Post
Code: 100032

Legal
Representative: Zhang Xinjian

 

Party
B: Guangzhou Weida Communication Technology Co., Ltd.

Address:
the Four of Room 102, Office Building, Science City Area, Development District,
Guangzhou

Post
Code: 510665

Legal
Representative: Li Shunxin

 

In
accordance with the General Principles of the Civil Law of the People’s
Republic of China and the Contract Law of the People’s Republic of China, Party
A and Party B, adhering to the principles of friendly cooperation, mutual
benefit, complementary advantages, and mutual development and through friendly
consultation, enter into this “Business Expansion Cooperation Agreement”
(“Agreement”) concerning establishing a long-term business expansion
cooperative relationship as follows:

 

Article 1         Scope of Cooperation and Undertakings by the Parties

 

1.                   The Parties
conduct, throughout China and in various fields of trade, cooperation in the
expansion, promotion, joint development and application of their businesses.

 

2.                   Party B agrees
that all clauses hereof apply to all branch companies of Party A and any
subsidiaries or companies invested by Party A.

 

3.                   The Parties,
adhering to the principles of friendly and pragmatic attitude and mutual
benefit, jointly settle all issues occurring during the cooperation.

 

4.                   Party B agrees
to provide Party A and its clients, at the most favored market price for the
corresponding period, with quality satellite communications products and
relevant services.

 

5.                   Party B
undertakes that the satellite communications products provided by it conform to
the corresponding trade standards of China, and have licenses for product use,
licenses for operation, and other necessary documents issued by the competent
authorities of their trades.

 

1

 

Article 2         Content of Cooperation

 

Party B provides Party A and its clients with
such satellite communications products and services as follows:

 

1.                   Satellite
communications Products:

Party B is in a position to provide Party A and
its clients with following products:

 

Satellite communications terminal;

Fixed station satellite antenna;

Satellite communications channel;

 

The catalogue and catalogue price of the above
satellite communications products are attached hereto as Attachment 1: List of
Satellite Communications Products & Catalogue Price (Where there is any
adjustment in the catalogue price of products, the adjusted catalogue price
shall prevail.  Party B undertakes to
notify Party A promptly of such adjustment.).

 

2.                   Satellite
Communications Services:

Party B is in a position to provide Party A and
its clients with following services:

 

Technical support services;

Equipment renting services;

Installation and debugging of equipment;

Maintenance of equipment and network;

Training services;

 

The detailed content and catalogue price of the
above services are attached hereto as Attachment 2: List of Services &
Catalogue Price (Where there is any adjustment in the catalogue price of
services, the adjusted catalogue price shall prevail.  Party B undertakes to notify Party A promptly of such
adjustment.).

 

3.                   The flow of
collaboration of providing clients with products and services by the Parties is
attached hereto as Attachment 3.

 

4.                   Party B shall,
at the same when providing Party A with products and services, provide it with
licenses for product use and licenses for operation.

 

Article 3         Price of Products and Services

 

Party B undertakes to provide Party A with
satellite communications products and services (see Attachment 1 and Attachment
2 for such products and services which Party B provide to Party A and its
clients), at following ***:

 

2

 

	
  Type

  	
   

  	
  ***

  
	
  Satellite Communications Terminal

  	
   

  	
  ***

  
	
  Fixed Station Antenna

  	
   

  	
  ***

  
	
  Fee for Satellite Communications

  	
   

  	
  ***

  
	
  Equipment Renting

  	
   

  	
  ***

  
	
  Installation of Equipment and Network
  Maintenance

  	
   

  	
  ***

  

 

(Remark: contract price = catalogue price  ***)

 

If Party B conducts unified adjustment in the
market price of products and services, Party A and Party B shall consult with
each other to re-determine the above ***.

 

*** 
Portions of this Article 3 have been omitted pursuant to a request for
Confidential Treatment and filed separately with the Securities and Exchange
Commission.

 

Article 4         Method of Payment

 

1.                   For any
satellite communications equipment to be purchased by Party A from Party B, the
Parties shall enter into a Project Contract (“Project Contract”) in accordance
with this Agreement. All payments for the equipments shall be made by Party A
in accordance with the terms of payment specified in the Project Contract, and
Party B shall provide complete and corresponding documents, invoices,
certificate of arrival, etc.  The method
of payment may refer to the terms as follows:

 

Advance Payment: After the Parties enter into
the Contract, Party A shall pay in advance to Party B ***;

 

Payment on Arrival: After the arrival of goods,
if the conclusion of the inspection of such goods conforms to the requirements
of the Contract, and after the Parties sign on the conclusion, Party A shall
pay to Party B ***.

 

Payment on Preliminary Inspection of Operation:
After installation, debugging and initial operation of equipment, and the
conclusion conforms to the requirements of the Contract, Party A shall organize
a preliminary inspection as soon as possible. 
If the conclusion of the preliminary inspection conforms to the
requirements of the Contract, and after the Parties sign on the preliminary
inspection report, Party A shall pay to Party B ***.

 

Payment on Final Inspection and Acceptance: If
the conclusion of the final inspection and acceptance conforms to the
requirements of the Contract and the operation, Party A shall pay to Party B
***.

 

*** 
Portions of this Article 4, Section 1 have been omitted pursuant to a
request for Confidential Treatment and filed separately with the Securities and
Exchange Commission.

 

3

 

2.                   With regard to
the equipment and satellite channels, which Party A rent from Party B, Party A
shall settle the rental with Party B on a seasonal basis.

 

Article 5    
Confidentiality and Protection of Trademark by the Parties

 

1.                   Neither party
shall create other symbols, which contain the trademark of the other party,
without prior written consent of the other party.

 

2.                   Each Party
shall take reasonable measures to avoid any conduct, which may reduce or impair
the reputation of the trademark of the other party.

 

3.                   In the
corresponding process of preparation and execution, each Party shall treat any
information provided by the other party as confidential information.  The confidential information defined
hereunder include any form of proprietary technology, design, plan, report,
technical data, data resource, software, documentation, corresponding materials
of the Parties, etc.  Each Party shall
assume the obligation to maintain strictly the confidentiality of business secret
for the other party, and shall not provide the third party, in any form, any
confidential information relating to the other party.

 

4.                   The Parties
shall be responsible for maintaining the confidentiality of the concrete
content of the cooperation and the Agreement. 
Neither party shall disclose, to any third party and in any form, the
concrete content thereof, without prior written consent of the other party.

 

Article 6    
Liabilities for Breach of Contract

 

1.                   If any party
hereto unilaterally reject or violate the clauses of the Agreement, without
prior written approval of the other party, such party shall be deemed to have
breached the Agreement.  The breaching
party shall assume the corresponding economic and legal liabilities to the
other party.  When a party hereto commit
serious breach of the Agreement and causes the failure of fulfillment of the
objective of the Agreement, the non-breaching party has right to terminate the
cooperative relation and rescind the Agreement by giving five (5) days’ unilateral
written notice to the other.

 

2.                   Should any
party be prevented from executing or completely executing the obligations
hereunder, due to earthquake, fire, political upheaval or other unavoidable or
irresistible causes, neither party shall be held liable to the other party,
provided that the affected party shall notify the other party in writing within
fifteen (15) workdays after the occurrence of such event of force majeure,
otherwise the terms of force majeure hereunder shall fail to apply to the Parties.  Within the reasonable period after the
removal of the effect of force majeure, a party or the Parties shall continue
to perform the Agreement.

 

Article 7  
Effectiveness and Term of the Agreement

 

1.                   The term of
the Agreement shall be one (1) year, from the date on which the legal
representatives or authorized representatives of the Parties sign and seal on
the Agreement.

 

4

 

After the expiration, the Parties shall consult
with each other to determine whether to renew and complement the Agreement.

 

2.                   Upon the
expiration of the Agreement, if the Parties agree to terminate the Agreement,
the Parties shall endeavor to handle carefully and skillfully the matters
concerned after the termination of the Agreement, and conclude the legal and
economic matters of the departments in respect of the Agreement.  Once the Agreement is terminated, the
cooperative relation between two parties shall be terminated promptly, and neither
party shall be legally liable to the other party, except for the economic
liabilities.

 

3.                   Without the
written approval of the Parties, neither party shall, within the term of the
Agreement, unilaterally amend, modify, or terminate the Agreement, nor shall it
breach the clauses hereunder.  If there
is any matter which is not covered under the Agreement, the Parties may consult
with each other to settle such matter and enter into a complementary
agreement.  The complementary agreement
shall be an integral part of the Agreement, and has the equal effectiveness
with it.

 

4.                   If the
contract relating to each project, which Party A or Party B enter into with the
end users, breaks the terms agreed upon in the Agreement, the Parties shall
confirm such breaks in writing, and such confirmation shall come into effect as
the content of the favored terms in the particular project, provided that such
content has no retroactivity on other projects.

 

5.                   If the
Agreement is not renewed after the expiration date, the unfulfilled project
contract, which Party A enter into with the end users within the term of the
Agreement, shall be executed in accordance with the Agreement.

 

6.                   The clauses of
confidentiality and maintenance set forth hereunder shall not be terminated as
the result of the termination of the Agreement.

 

7.                   The Parties
agree that, the address for receiving mails of Party A shall be: China Telecom
Group System Integration Co., Ltd., 15th floor, No. 31, Finance
Avenue, West City Area, Beijing (100032)

Fax number and the person receiving the fax:
010-58501964, Guo Qiusheng

E-mail address and the person receiving the
e-mail: guoqsh@ct1000.com, Guo Qiusheng

 

8.                   The Parties
agree that, the address for receiving mails of Party B shall be: Apartment C,
10th floor, Bin He Mansion, No. 1, Che Dao Gou, Hai Dian District,
Beijing (100089)

Fax number and the person receiving the fax:
010-68716935, Li Xiangning

E-mail address and the person receiving the
e-mail: lixiangning@weidasat.com, Li Xiangning

 

9.                   Any dispute
arising out of the execution of the Agreement shall be settled by the Parties
through friendly consultation.  If the
dispute cannot be settled through friendly consultation, the Parties shall
submit the dispute to Beijing Arbitration Committee for arbitration.  The

 

5

 

arbitration award shall be final and binding
upon the Parties.  Unless otherwise
determined by the arbitration award, the losing party shall assume the expense
in arbitration.

 

10.             The Agreement
shall be in four (4) copies, of which two (2) shall be kept by each Party.  Each copy shall be of equal effect.

 

Article 8    The
Attachments

 

The Agreement includes the following
attachments:

Attachment 1: List of Satellite Communications
Products & Catalog Price

Attachment 2: List of Services & Catalog
Price

Attachment 3: Flow of Collaboration and Way of
Contact

 

The above attachments shall be integral parts
of the Agreement, and be of equal effect.

 

 

Signatories:

 

Party A: China Telecom Group
System Integration Co., Ltd.

 

Legal Representative:

(or authorized representative)

 

Date:  August 27, 2004

 

Party B: Guangzhou Weida
Communication Technology Co., Ltd.

 

Legal Representative:

(or authorized representative)

 

Date:  August 27, 2004

 

6

 

ATTACHMENT 1

 

LIST OF SATELLITE
COMMUNICATIONS PRODUCTS & CATALOG PRICE

 

***

 

*** 
This Attachment 1 has been omitted pursuant to a request for
Confidential Treatment and filed separately with the Securities and Exchange
Commission.

 

7

 

ATTACHMENT 2

 

LIST OF SERVICES AND
CATALOGUE PRICE

 

***

 

*** 
This Attachment 2 has been omitted pursuant to a request for
Confidential Treatment and filed separately with the Securities and Exchange
Commission.

 

8

 

ATTACHMENT 3

 

FLOW OF COLLABORATION
AND WAY OF CONTACT

 

***

 

*** 
This Attachment 3 has been omitted pursuant to a request for
Confidential Treatment and filed separately with the Securities and Exchange
Commission.

 

9

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