Document:

chtl_10q-ex1001.htm

 

 

	
  

 

	
EXHIBIT 10.1

	
  

	 

C  O  N  S  U  L  T  I  N  G    A  G  R  E  E  M  E  N   T

AGREEMENT made as of the 11th day of March by and between CHINA TEL GROUP INC., maintaining its principal offices at  8105 Irvine Center Drive Suite 800 Irvine, CA 92618 (hereinafter referred to as "CHINATEL") and STRATEGIC PARTNERS CONSULTING, LLC maintaining his principal offices at 58 Autumn Lane Bristol, NH 03222 (hereinafter referred as "STRATEGIC").

W I T N E S S E T H:

WHEREAS, STRATEGIC is engaged in the business of financial consulting services and has knowledge, expertise and personnel to render the requisite services to CHINATEL; and

WHEREAS, CHINATEL is desirous of retaining STRATEGIC for the purpose of obtaining these services so as to better, more fully and more effectively present itself in the financial services community.

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained herein, it is agreed as follows:

I. Engagement of STRATEGIC.  CHINATEL herewith engages STRATEGIC and STRATEGIC agrees to render to CHINATEL financial consulting services which would include evaluating various business strategies and recommending changes where appropriate and also critically evaluate CHINATEL’s performance in view of its corporate planning and business objectives.

A.           The consulting services to be provided by the STRATEGIC shall include, but are not limited to, the development, implementation and maintenance of a sound financial advisory strategy which would include:

1. Corporate Planning--(a) develop an in-depth familiarization with CHINATEL's business objectives and bring to its attention potential or actual opportunities which meet those objectives or logical extensions thereof, (b) alert the CHINATEL to new or emerging high potential forms of production and distribution which could either be acquired or developed internally, (c) comment on CHINATEL's corporate development including such factors as position in competitive environment, financial performances vs. competition, strategies, operational viability, etc., and (d) identify prospective suitable merger or acquisition candidates for the CHINATEL, perform appropriate diligence investigations with respect thereto, advise the CHINATEL with respect to the desirability of pursuing such candidates, and assist the CHINATEL in any negotiations which may ensue there from.

B. The services to be rendered by STRATEGIC to the CHINATEL shall under NO circumstances include the following:

1.  Any activities which could be deemed by the Securities and Exchange Commission to constitute investment banking or any other activities required by  STRATEGIC to be registered as a broker-dealer under the Securities Act of 1934.

2.  Any activities which could be deemed to be in connection with the offer or sale of securities in a capital-raising transaction.

  

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C.           CHINATEL acknowledges that STRATEGIC will devote such time as is reasonably necessary to perform the services for CHINATEL, having due regard for STRATEGIC's commitments and obligations to other businesses for which it performs consulting services.

II. Compensation and Expense Reimbursement.

A.           CHINATEL will pay  STRATEGIC, as compensation for the services provided for in this Agreement and as reimbursement for expenses incurred by STRATEGIC on CHINATEL's behalf, in the manner set forth in Schedule A annexed to this Agreement which Schedule is incorporated herein by reference.

Term and Termination.  This Agreement shall be for a period of six months commencing March 11th, 2009 and terminating September 11th, 2009.

Treatment of Confidential Information.   STRATEGIC shall not disclose, without the consent of CHINATEL, any financial and business information concerning the business, affairs, plans and programs of CHINATEL which are delivered by CHINATEL to STRATEGIC in connection with  STRATEGIC's services hereunder, provided such information is plainly and prominently marked in writing by CHINATEL as being confidential (the "Confidential Information").  That STRATEGIC will not be bound by the foregoing limitation in the event (i) the Confidential Information is otherwise disseminated and becomes public information or (ii) that STRATEGIC is required to disclose the Confidential Informational pursuant to a subpoena or other judicial order.

Indemnification by CHINATEL as to information provided to STRATEGIC.  CHINATEL acknowledges that STRATEGIC, in the performance of its duties, will be required to rely upon the accuracy and completeness of information supplied to it by CHINATEL's officers, directors, agents and/or employees.  CHINATEL agrees to indemnify, hold harmless and defend STRATEGIC, its officers, agents and/or employees from any proceeding or suit which arises out of or is due to the inaccuracy or incompleteness of any material or information supplied by CHINATEL to STRATEGIC.

Independent Contractor.  It is expressly agreed that STRATEGIC is acting as an independent contractor in performing its services hereunder.  CHINATEL shall carry no workers compensation insurance or any health or accident insurance on STRATEGIC or consultant's employees. CHINATEL shall not pay any contributions to social security, unemployment insurance, Federal or state withholding taxes nor provide any other contributions or benefits which might be customary in an employer-employee relationship.

Assignment.  This Agreement may be assigned all or in part by STRATEGIC without the written consent of the other party.

Notices.  Any notice to be given by either party to the other hereunder shall be sufficient if in writing and sent by registered or certified mail, return receipt requested, addressed to such party at the address specified on the first page of this Agreement or such other address as either party may have given to the other in writing.

Entire Agreement.  The within agreement contains the entire agreement and understanding between the parties and supersedes all prior negotiations, agreements and discussions concerning the subject matter hereof.

  

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Modification and Waiver.  This Agreement may not be altered or modified except by writing signed by each of the respective parties hereof.  No breach or violation of this Agreement shall be waived except in writing executed by the party granting such waiver.

Law to Govern; Forum for Disputes.  This Agreement shall be governed by the laws of the Commonwealth of Massachusetts without giving effect to the principle of conflict of laws.  Each party acknowledges to the other that courts within the City of Boston, Massachusetts shall be the sole and exclusive forum to adjudicate any disputes arising under this agreement.

Cancellation.  This agreement may be cancelled by CHINATEL with seven days written notice and that all prorated shares will be returned to CHINATEL upon such cancellation.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above.

By:           ____________________________

STRATEGIC PARTNERS CONSULTING, LLC

By:           ____________________________

CHINA TEL GROUP, INC.

  

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SCHEDULE A-1

PAYMENT FOR SERVICES

AND REIMBURSEMENT OF EXPENSES

 

	
A.      

	
For the services to be rendered and performed by STRATEGIC during the term of the Agreement, CHINATEL agrees to pay to STRATEGIC, 2,300,000 shares (Two-Million Three Hundred Thousand shares) of CHINA TEL GROUP, INC. restricted common stock issued in two traunches, with the first traunch of 1,300,000 shares to be received within 10 days of the signing of this agreement and the remaining 1,000,000 shares to be received within 45 days of the signing of this agreement.  All shares issued will have Piggy-Back Rights of registration or after any period applicable under Rule 144, CHINATEL will have an attorney issue an opinion letter for the removal of the legend and release all stock transfer instructions on such stock except as may be required under state or federal securities laws.

	 	 

	
B.      

	
STRATEGIC agrees that all expenses must be approved in advance by CHINA TEL and that STRATEGIC may invoice CHINA TEL for those expenses upon and only with the approval of CHINA TEL.

          By:         __________________________________

          STRATEGIC PARTNERS CONSULTING, LLC

                                                                                                    By:        ___________________________________

CHINA TEL GROUP, INC..

 

 

 

-4-chtl_10k-ex1020.htm

    
      
        
          

        

      

      EXHIBIT
10.20

    

     

    

     

    
      Independent
Contractor Agreement

       

       

      1.  Parties

      

      This
Independent Contractor Agreement (“Agreement”) is between China Tel Group, Inc.
(“ChinaTel”) and Negotiart of America Inc. (“Independent
Contractor”).

       

      2.  Term
of this Agreement

      

      The term
of this Agreement shall be effective as of January 1, 2009 and shall expire
December 31, 2011 (“Term”).

      

      3.  Services
to be Performed by Independent Contractor

      

      Independent
Contractor shall perform the following professional services (the “Services”) of
the following description as an independent contractor to ChinaTel: (i) wireless
telecommunications deployment and development of strategic partners, joint
ventures, mergers and acquisitions for ChinaTel worldwide; (ii) assist legal
counsel with due diligence of potential acquisitions of companies or assets of
companies in the broadband wireless telecommunications sector worldwide; and
(ii) review and analysis of existing and proposed business plans and market
studies associated with the development of strategic partners, joint ventures,
mergers and acquisitions for ChinaTel worldwide.

       

      4.  Payment

       

      ChinaTel
shall pay Independent Contractor a fixed fee for the Services in the amount of
Two Million Five Hundred Thousand (2,500,000) restricted shares of ChinaTel
Series A common stock (“Independent Contractor Fee”).  ChinaTel shall
pay Independent Contractor’s Fee no later thirty (30) days after this Agreement
has been signed by Independent Contractor and received by ChinaTel at its
corporate offices identified in Section 15 of this Agreement.

      

      5.  State and Federal
Taxes

      

      Independent
Contractor shall assume full responsibility for the payment of any taxes (or any
other obligations or payments) that may be claimed as owed by any unit of
government, as a result of remuneration paid to Independent Contractor for the
performance of the Services.  This includes income, Social Security,
Medicare and self-employment taxes.  Independent Contractor shall also
pay all unemployment contributions related to the performance of the
Services.  Independent Contractor shall defend and indemnify ChinaTel
with regard to any such payments.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      6.  Fringe
Benefits

      

      Independent
Contractor shall not be eligible to receive any employee benefits from ChinaTel,
including, but not limited to, medical, dental, vision, long-term disability,
accidental death and dismemberment, flexible spending account, mental health
services, family and medical care leave benefits, vacation benefits and
participation in any ChinaTel 401 (k) plan.

      

      7.  Independent Contractor
Status

      

      The
parties intend Independent Contractor to act as an independent contractor in the
performance of the Services.  Independent Contractor shall have the
right to control and determine the methods and means of performing the
Services.  Independent Contractor shall use his own expertise and
judgment in performing the Services, recognizing that ChinaTel is relying on
Independent Contractor to consult, when appropriate, with employees of ChinaTel
and its subsidiaries and affiliated companies.

      

      8.  Other Clients of
Independent Contractor

      

      ChinaTel
understands that, in addition to providing services to ChinaTel on its matters,
Independent Contractor may be retained, directly or indirectly, by other
entities or individuals to provide services separate and apart from the
Services. Independent Contractor shall be responsible for following appropriate
procedures to avoid any breach of client confidentiality or any conflicts of
interest on the part of Independent Contractor which regard to the performance
of the Services.  These procedures include, but are not limited to,
the following:

      

      
        	
                a.   

              	
                The
      parties associated with any matter for which Independent Contractor is
      retained outside of the Services must be processed in advance for
      conflicts with ChinaTel and any of its subsidiaries and affiliated
      companies (collectively, “ChinaTel Group”). If a conflict of interest
      exists or appears to exist, Independent Contractor shall not perform any
      services for such third party, unless and until the conflict is
      resolved.

              

      

      

      
        	
                b.   

              	
                Independent
      Contractor shall use Independent Contractor’s own letterhead and business
      cards, and not those of ChinaTel, when providing service to its clients
      outside of this Agreement.  Independent Contractor’s shall use
      Independent Contractor’s own letterhead for engagement letters and all
      other correspondence on matters not associated with the
      Services.

              

      

      

      
        	
                c.   

              	
                Independent
      Contractor shall not utilize any ChinaTel personnel or resources on any
      matters for a client outside of this Agreement.  Should
      Independent Contractor desire to utilize the services of such personnel or
      resources on any such matter, Independent Contractor must first obtain
      prior written approval from the Chief Executive Officer of
      ChinaTel.

              

      

      

      
        	
                d.   

              	
                Independent
      Contractor shall bill any client not associated with this Agreement using
      Independent Contractor’s own letterhead or billing
  form.

              

      

      

      
        	
                e.   

              	
                Independent
      Contractor shall not discuss with his other clients the Services being
      performed pursuant to this Agreement; likewise, Independent Contractor
      shall not discuss with any   ChinaTel personnel issues
      pertaining to Independent Contractor’s work for his other
      clients.

              

      

        

      
        
           

        

        
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      9.  Assistants

      

      Independent
Contractor, at Independent Contractor’s sole expense, may employ assistants as
Independent Contractor deems appropriate to perform the Services. Independent
Contractor shall be responsible for paying these assistants and expenses
attributable to them, including income, Social Security, Medicare taxes and
unemployment contributions.  Independent Contractor shall maintain
Worker’s Compensation Insurance for all his employees in connection with their
work on the Services.

      

      10.  Equipment and
Supplies

      

      Independent
Contractor, at Independent Contractor’s sole expense, shall provide all
equipment, tools and supplies necessary to perform the Service.

      

      11.  Expenses

      

      Independent
Contractor shall be responsible for all expenses required for the performance of
the Services, which shall be included in the Independent Contractor
Fee.

      

      12.  Confidential
Information

      

      In order
to assist Independent Contractor in the performance of the Services, ChinaTel
may supply Independent Contractor, from time to time, with information
concerning ChinaTel and the ChinaTel Group, and their respective customers and
suppliers, hereinafter referred to as “Confidential
Information.”  Independent Contractor shall hold confidential and not
disclose to others, either directly or indirectly, any and all Confidential
Information, propriety information, technical data, trade secrets or know-how,
including, but not limited to, research, product plans, products, services,
customers, customer lists, markets, software, developments, inventions,
processes, formulas, technology, designs, financial data and other business
information which may be learned from ChinaTel and/or the ChinaTel Group before
and during the term of this Agreement, unless the same have been furnished
directly to Independent Contractor by ChinaTel and Independent Contractor is
advised in writing by ChinaTel that such information is not Confidential
Information. Independent Contractor acknowledges that the terms and conditions
of this Agreement are deemed confidential by ChinaTel and agrees not to disclose
any information regarding it to any third party, without ChinaTel’s prior
written consent.  All documents containing Confidential Information
shall be returned to ChinaTel, and no copies shall be retained by Independent
Contractor on the termination or expiration of this Agreement.  Not
withstanding the foregoing, such duty of confidentiality shall not extend to
information which is or comes into the public domain, is rightfully obtained for
third parties under a duty of confidentiality, or which is independently
developed without reference to ChinaTel’s Confidential
Information.  The duties of confidentiality imposed by this Agreement
shall survive any termination or expiration of this Agreement for a period of
three (3) years. All data and information developed by Independent Contractor
(including notes, summaries, and reports), while performing the Services, shall
be kept strictly confidential and shall not be revealed to third parties,
without ChinaTel’s prior written consent thereto. All such data and information
shall be delivered to ChinaTel by Independent Contractor at ChinaTel’s
request.

      

      13.  Dispute
Resolution

      

      If a
dispute arises relating to this Agreement or the termination thereof, claims for
breach of contract or breach of the covenant of good faith and fair dealing,
claims of discrimination or any other claims under any federal, state or local
law or regulation now in existence or hereinafter enacted, and as amended from
time to time (“Dispute), the parties shall attempt in good faith to settle the
Dispute through mediation conducted by a mediator to be mutually selected by the
parties. The parties shall share the costs of the mediator
equally.  Each party shall cooperate fully and fairly with the
mediator, and shall reach a mutually satisfactory compromise of the
Dispute.  If the Dispute is not resolved within thirty (30) days after
it is referred to the mediator, it shall be resolved through final and binding
arbitration, as specified in this Section 13.

       

      
        
           

        

        
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      Binding
arbitration shall be conducted by the Judicial Arbitration and Mediation
Services, Inc. (“JAMS”), sitting in Orange County, California, for resolution by
a single arbitrator acceptable to both parties.  If the parties fail
to agree to an arbitrator within ten (10) days of a written demand for
arbitration being sent by one party to the other party, then JAMS shall select
the arbitrator according to the JAMS Rules for Commercial
Arbitration.  The arbitration shall be conducted pursuant to the
California Code of Civil Procedure and the California Code of
Evidence.  The award of such arbitrator shall be final and binding on
the parties, and may be enforced by any court of competent jurisdiction. In the
event of arbitration to resolve a Dispute, the prevailing party shall be
entitled to recover its attorney’s fees and other out-of-pocket costs incurred
in connection therewith from any non-prevailing party involved
therein.

      

      14.  Assignment
of the Agreement; Delegation of Responsibilities; Successors and
Assignees

      

      Independent
Contractor shall not assign any of his rights under this Agreement or delegate
any of his responsibilities without the prior written consent of ChinaTel, which
may be exercised in its sole discretion. This Agreement binds and benefits the
heirs, successors and assignees of the parties to this Agreement, subject to the
prohibition on assignments contained in this Section 14.

      

      15.  Notices

      

      All
notices, requests and demands to or upon a party hereto, to be effective, shall
be in writing and shall be sent: (i) certified or registered mail, return
receipt requested; (ii) by personal delivery against receipt; (iii) by overnight
courier; or (iv) by facsimile and, unless otherwise expressly provided herein,
shall be deemed to have been validly served, given, delivered and received: (a)
on the date indicated on the receipt, when delivered by personal delivery
against receipt or by certified or registered mail; (b) one business day after
deposit with an overnight courier; or (c) in the case of facsimile notice, when
sent. Notices shall be addressed as follows:

      

      ChinaTel
Group, Inc.

      8105
Irvine Center Drive, Suite 820

      Irvine,
California 92618

      Fax No.
(949) 585-0072

      Attention:  George
Alvarez

      

      Negotiart
of America Inc.

      501 West
Broadway

      Suite
A212

      San
Diego, California  92101

      Fax No.
(619) 306-0606

      Attention:
Tony Isaac

      

      16.  Governing
Law

      

      This
Agreement shall be governed by and construed in accordance with the laws of the
State of California, without resort to California’s conflict-of-laws
rules.

      

      
        
           

        

        
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      17.  Counterparts

      

      This
Agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original copy of this Agreement and all of which, when taken
together, shall be deemed to be one and the same agreement.

      

      18.  Waiver

      

      If one
party waives any term or provision of this Agreement at any time, that waiver
will be effective only for the specific instance and specific purpose for which
the waiver was given.  If either party fails to exercise or delays
exercising any of his or her rights or remedies under this Agreement, the party
retains the right to enforce that term or provision at a later
time.

      

      19.  Severability

      

      If any
court determines that any provision of this Agreement is invalid or
unenforceable, any invalidity or unenforceability will affect only that
provision and will not make any other provision of this Agreement invalid or
unenforceable, and such provision shall be modified, amended or limited only to
the extent of necessary to render it valid and enforceable.

      

      20.  ChinaTel’s
Responsibilities

      

      ChinaTel
shall be responsible to keep Independent Contractor apprised of facts pertinent
to the Services and to review and comment concerning documents prepared by
Independent Contractor.

      

      21.  Entire
Agreement and Modification

      

      This
Agreement supersedes all prior agreements between the parties with respect to
its subject matter and constitutes a complete and exclusive statement of the
terms of this Agreement with respect to its subject matter. This Agreement may
not be amended, except in writing signed by both parties.

      

      China
Tel Group, Inc.

      

      

      By: 
/s/ George
Alvarez                               

      George
Alvarez

       

      Title:
Chief Executive Officer

       

      Negtiart
of America Inc.

       

      

      By: 
/s/ Tony
Issac                                        

      Tony
Issac

      

      Title:
Chief Executive Officer

       

      
        
           

        

        
          5

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