Document:

cdiiex10-2.htm

     

    
      

      

    

    

    SEPARATION AND SEVERANCE AGREEMENT

     

    This
Separation and Severance Agreement (“Agreement”) is made and entered into on
January 23, 2009 by and between China Direct, Inc., a Florida corporation, and
its various subsidiaries and affiliates, (hereafter collectively referred to as
the “Company”), and Marc Siegel (“Siegel”).

    

    RECITALS

    

    A.           Siegel
has been employed by the Company as its President.

     

    B.           Siegel
and the Company entered into an employment agreement on August 7, 2008, as
amended (the “Employment Agreement”).

     

    C.           Siegel
holds the following securities of China Direct, Inc.

     

    (i) Common
Stock:

     

    4,400,000
shares of China Direct, Inc. common stock, par value, $.0001, (“Common
Stock”)

     

    (ii) Options to purchase
Common Stock:

    

    
      
        
          
            
              	
                      Amount

                    	 	 	
                      Ex Price

                    	 	
                      Issued

                    	
                      Exp.

                    	
                      Vest

                    
	 	 	 	 	 	 
      	 
      	 
      
	 	400,000	 	 	$	5.00	 	
                      1/1/05

                    	
                      1/1/2012

                    	
                      1/1/2007

                    
	 	500,000	 	 	$	7.50	 	
                      1/1/05

                    	
                      1/1/2013

                    	
                      1/1/2008

                    
	 	500,000	 	 	$	10.00	 	
                      1/1/05

                    	
                      1/1/2014

                    	
                      1/1/2009

                    

            

          

        

      

    

    

    D.           The
parties desire to terminate their relationship on an amicable basis pursuant to
the terms and conditions set forth herein.

    

    NOW, THEREFORE, in
consideration of the mutual promises, undertakings and releases, receipt of
which is hereby acknowledged as sufficient consideration by both parties, the
parties agree as follows:

    

    1.           Recitals.  The
above recitals are true, correct, and are herein incorporated by
reference.

    

    2.           Resignation
of Employment.  Siegel hereby
resigns as President and Director and from any and all other offices or
positions he may have with the Company or any of its subsidiaries or affiliated
companies, to be effective on the date hereof (“Termination Date”).

    

    3.           Termination.  The Employment
Agreement is permanently terminated effective on the Termination
Date.  The Company shall reimburse Siegel pursuant to section 4. D. of
the August 7, 2008 Employment Agreement for expenses incurred up to and
including the Termination Date.  In addition Siegel hereby waives his
right to receive all Base Salary, Incentive Compensation, performance bonus, if
any, and additional forms of compensation provided for in the Employment
Agreement whether due or accrued through the Termination Date.

    

    4.           Severance
and Benefits. Subject to the conditions set forth herein, the Company and
Siegel agree to the following.

    

    
      
        
           

        

        
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                 (a) Siegel’s
obligations under this Agreement are conditioned upon Siegel entering into an
agreement to sell an aggregate of 1,500,000 shares of Common Stock in exchange
for $1,650,000.

    

    

    (b) On the
Termination Date, the Company shall pay Siegel $165,000 in either cash or Common
Stock, at the option of the Company (the “Severance Shares”).  The
number of Severance Shares, if issued in lieu of the cash amount, shall be equal
to the result of dividing $165,000 by the per share closing price of the Common
Stock on the business day immediately following the Company’s filing of a public
announcement disclosing the resignation of Marc Siegel.  The Severance
Shares can be sold by Siegel on a daily basis at no more than 10% of the daily
trading volume of the Common Stock at the Volume-Weighted Average Price (“VWAP”)
of the Common Stock.  The Severance Shares shall be issued pursuant to
the Company’s 2008 Non-Executive Stock Incentive Plan and are subject to
approval of the Compensation Committee of the Company’s board of
directors.  The award of the Severance Shares are intended to be
exempt from Section 16(b) of the Securities Exchange Act of 1934 (the “Act”)
pursuant to Rule 16b-3 of the Act.

     

    (c) The
Company shall retain Siegel as a consultant pursuant to consulting agreement
mutually agreeable to the Company and Siegel to be entered into upon execution
of this Severance Agreement.

     

    (d) Commencing
on the Termination Date and continuing until January 31, 2010, the Company shall
pay for all insurance premiums for Siegel to participate in the Company’s health
care and dental insurance plans (the “Benefit Plans”).  Should Siegel
elect not to participate in the Benefit Plans, the Company will reimburse Siegel
in cash for the expense incurred in participating in another health care and
dental insurance plan procured by Siegel.  The Company’s obligation to
reimburse Siegel is limited to the Company’s cost of providing benefits to
Siegel under the Benefit Plans.

     

    (e) Commencing
on the Termination Date, Siegel will enter into the Lock-Up Agreement attached
to this Severance Agreement as Exhibit A (the “Lock-Up
Agreement”).  Siegel hereby agrees to forfeit the following options to
purchase shares of the Company’s Common Stock:

     

    Options to purchase Common
Stock:

    

    

    
      
        	 
      	
                Amount

              	
                Ex Price

              	
                Issued

              	
                Exp.

              	
                Vest

              
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                  400,000

              	
                 $      5.00

              	
                1/1/05

              	
                1/1/2012

              	
                1/1/2007

              
	 
      	
                  500,000

              	
                 $      7.50

              	
                1/1/05

              	
                1/1/2013

              	
                1/1/2008

              
	 
      	
                  500,000

              	
                 $    10.00

              	
                1/1/05

              	
                1/1/2014

              	
                1/1/2009

              

      

    

    

    

    (f) So long
as the Company is a reporting company under the Act, the Company agrees to
maintain a current registration statement covering the resale of the Severance
Shares.  The Company shall maintain the effectiveness of the current
registration statement covering the shares of Common Stock issuable pursuant to
the stock options to be retained by Siegel.  Following the issuance of
shares pursuant to the exercise of such stock options, the Company will have no
obligation to maintain a registration statement covering those
shares.

     

    (g) At the
request of the Company, Siegel, during normal business hours, will reasonably
assist the Company in furnishing, to the extent he has or can ascertain,
documents and information for any filings required by the Company with the state
or federal authorities and in responding to other inquiries on matters handled
during his employment with the Company.  The

     

    

    
      
        
          
            
               

            

          

           

        

        
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     Company
shall reimburse Siegel in cash for all preapproved expenses incurred by Siegel
in the performance of this Section 4 (i).

     

    (h) The
Company agrees that if Siegel is made a party, is threatened to be made a party,
to any action, suit or proceeding, whether civil, criminal, administrative, or
investigative (a “Proceeding”), by reason of the fact that Siegel is or was an
employee of the Company, is or was a consultant to the Company, or is or was
serving at the request of the Company as an employee or agent of another
corporation, partnership, joint venture, trust, or other enterprise, including
service with respect to clients of the Company, whether or not the basis of such
Proceeding is Siegel’s alleged action in an official capacity while serving as
an employee, agent or consultant, Siegel shall be indemnified and held harmless
by the Company, to the same extent as the officers and directors of the Company,
to the fullest extent legally permitted against all cost, expense, liability,
and loss (including, without limitation, attorney’s fees, judgments, fines,
ERISA excise taxes or other liabilities or penalties and amounts paid or to be
paid in settlement) reasonably incurred or suffered by Siegel in connection
therewith, and such indemnification shall continue as to Siegel even if he has
ceased to be an employee or agent of the Company or other entity and shall inure
to the benefit of Siegel’s heirs, executors, and administrators.  In
return for the above provision, Siegel promises to cooperate with the Company at
its expense in his or the Company's defense of any actions taken by private
parties and/or federal or state governmental bodies against the
Company.  Such cooperation includes, but is not limited to, travel to
the State of Florida at the Company’s expense, for purposes of deposition and/or
trial, if necessary.

     

    (i) The
Company shall pay in cash, as and when due, any and all attorneys’ fees and
costs incurred by Siegel in connection with any dispute or settlement arising
from his affiliation with the Company, as an employee or as a consultant, or as
an employee or agent of another corporation, partnership, joint venture, trust,
or other enterprise, including service with respect to clients of the Company,
whether or not the basis of such Proceeding is Siegel’s alleged
action.  Siegel shall be indemnified and held harmless by the Company,
to the same extent as the officers and directors of the Company, to the fullest
extent legally permitted.

     

    (j) Siegel
acknowledges that, in consideration of the terms of this Agreement, the Company
is not obligated to pay him any other severance pay and Siegel agrees that the
amounts set forth above are all Siegel is to receive from the
Company.  Such severance pay is full and complete satisfaction of all
of the Company’s obligations to Siegel, including all obligations under the
Employment Agreement and constitutes consideration for the releases of Siegel in
this Agreement.

     

    5.           Return of
Property.  Company
acknowledges that Siegel has returned to
the Company, in good condition, all property, documentation and materials of the
Company in Siegel’s possession.  Siegel will return to the Company,
upon request from the Company, any property, documentation and materials as may
be requested by the Company.

     

    6.           Non-Disparagement. The Company and Siegel
further agree that they shall not make any disparaging, denigrating, critical or
untrue statements (public or private) about the Company, its management or about
any other employee of the Company, its technology, products, customers,
suppliers, business or prospects or about Siegel.  In addition, Siegel
shall not make any public statements about the Company, its management or about
any other employee of the Company, its technology, products, customers,
suppliers, business or prospects or about Siegel.  It is agreed and
understood that any breach of this paragraph by Siegel or the Company would be
material to the other.

     

    7.           General
Releases and Voluntary Waiver of Rights.

     

    (a)           Except
for the obligations created by or arising out of this Agreement or any future
consulting agreement between the Company and Siegel, effective on or after the
Termination Date, Siegel (and his heirs, successors and assigns) waives, and
releases and forever discharges Company and

     

    

    
      
        
          
            
              

            

             

             

          

           

        

        
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    its
shareholders, directors, officers, successors, assigns, transferees, employees,
representatives and agents, both current and former (the “Company Indemnitees”)
from all claims, rights, and causes of action, in law or in equity, or any kind
whatsoever, which has or may have against the Company Indemnitees, as of this
date whether such claims, right or causes of action are known or later
discovered.  The claims, rights and causes of action covered by this
waiver and release include, but are expressly not limited to, any claim, right
or cause of action based on any federal, state or local law, constitution,
statute or ordinance, including without limitation, Title VII of the Civil
Rights Act of 1964, as amended; the Civil Rights Acts  of 1866 and 1871,
the Equal Pay Act of 1963, as amended; the Fair Labor Standards Act of 1938, as
amended; the Family and Medical Leave Act of 1993, as amended; the Age
Discrimination in Employment Act of 1967, as amended; the Rehabilitation Act of
1973, as amended; Employee Retirement Income Security Act of 1974, as
amended;  the Americans With Disabilities Act of 1990; as amended; the
Older Workers Benefit Protection Act; the Occupational Safety and Health Act of
1970, as amended; the National Labor Relations Act of 1935, as amended
(including the Labor Management Relations Act of 1947, as amended); the
Uniformed Services Employment and Re-employment Rights Act, as amended; the
Immigration Reform and Control Act of 1986; the Fair Credit Reporting Act, as
amended; the Employee Polygraph Protection Act of 1988; the Florida Civil Rights
Act of 1992, as amended; Fla. Stat. Section 112.3187, 440.15, 440.205,760.50,
and 540.08; Fla. Stat. Ch. 295, 447, 448, 768 and 770; and any other claim right
or cause of action found in tort (including negligence), contract, public,
policy, estoppel or any other common law or equitable basis of action except
those which may not lawfully be waived.  Siegel specifically
acknowledges that he has been advised that he should consult with an attorney
concerning his rights and the signing of this Release and has done so.

     

    (b)           Except
for the obligations created by or arising out of this Agreement or any future
consulting agreement between the Company and Siegel, effective on the
Termination Date, the Company, and the Company’s subsidiaries and affiliated
companies, do hereby release, acquit, satisfy and forever discharge and covenant
not to sue Siegel or Siegel's descendants, heirs, successors and assigns, and
each of them, past or present, from any and all manner of action, causes of
action, rights, liens, agreements, contracts, covenants, obligations, suits,
claims, debts, dues, sums of monies, costs, expenses, attorneys' fees,
judgments, orders and liabilities, accounts, covenants, controversies, promises,
damages, of whatever kind and nature in law or equity or otherwise whether now
known or unknown, including specifically but not limited to, any and all claims
arising out of such employment relationship Siegel had with the Company and the
transactions and relationships described herein.

     

    (c)           Siegel
does not and will not seek reinstatement, future employment or return to active
employment status at Company and further acknowledges that he has no rights to
such reinstatement, future employment or return to active status, unless
formally requested by the Company or the Board of Directors.

     

    (d)           This
Agreement may not be revoked.  In the event that either party
initiates a legal proceeding and/or arbitration against the other party which
arises from or relates to this Agreement and/or Siegel’s employment by the
Company, the prevailing party shall be entitled to recover reasonable attorneys
fees.

     

    8.           Non-Admissions.  The Company and
Siegel agree that neither this Agreement nor the consideration given shall be
construed as an admission of any wrongdoing or liability by the Company or
Siegel, and that all such liability or wrongdoing is expressly
denied.

     

    9.           Confidentiality.  In
the course of serving as an employee of the Company, the Company has disclosed
to Siegel, and Siegel may otherwise have obtained knowledge of or access to,
trade secrets and other proprietary and confidential information concerning the
Company, the Company products, financial condition, services, research and
development plans, and other matters pertaining to the Company’s business
(“Confidential Information”).  Siegel agrees to treat and hold all
Confidential

     

    

    
      
        
          
            
              

            

             

             

          

           

        

        
          - 4
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    Information
as secret and confidential, and to apply strict standards of care to maintain
the secrecy of the Confidential Information.  In this regard, Siegel
agrees not to copy or reproduce any Confidential Information and not to disclose
the contents of any Confidential Information to any person or entity, other than
officers and directors of the Company or with their written
permission.  Siegel further agrees to return to the Company written or
other copies (including electronic media containing Confidential Information) of
any and all Confidential Information in Siegel’s possession.  Further,
Siegel and Company shall not directly or indirectly disclose, or cause to be
disclosed, any information whatsoever regarding the terms of this Agreement to
anyone except to each party's immediate family members, accountants, legal or
tax advisor(s), or as required by law. This Agreement shall not be used as
evidence in any proceeding, except a proceeding to enforce the terms of this
Agreement. The provisions of this Section 9 shall not apply to any Confidential
Information that Siegel is obligated by law to disclose to any court or any
federal or state government agency; provided, however, that in the event
disclosure is required by law Siegel shall provide the Company with prompt
notice of such requirement so that the Company may seek an appropriate
protective order prior to such required disclosure by Siegel.

     

     10.           Anti-Coercion.  Each
of the Parties hereto has entered into this Agreement without undue influence,
fraud, coercion, duress, misrepresentation, or restraint having been imposed
upon them by any other party, and further acknowledges that each party had the
opportunity to be represented by counsel of their own selection.

     

    11.           Interpretation
of Release.  For the purposes
of interpretation and construction of this Agreement, this Agreement shall be
deemed to have been drafted by the Company and by Siegel.

     

    12.           Notices.  Any notice
required or permitted to be given under the terms of this Agreement shall be
sufficient if in writing and if sent postage prepaid by registered or certified
mail, return receipt requested; by overnight delivery; by courier; or by
confirmed telecopy, in the case of Siegel to the business or residence as shown
on the records of the Company, or in the case of the Company to its principal
office or at such other place as it may designate.

     

    13.           Entire
Agreement.  This Agreement
constitutes the entire agreement between the parties and shall not be modified,
altered, or discharged, except by a writing signed by each of the parties
hereto.

     

    14.           Governing
Law, Jurisdiction and Venue.  This Agreement
shall be governed by the laws of the State of Florida.  The Parties
acknowledge that this Agreement contains provisions, which are enforceable in
the State of Florida, and all Parties consent to the personal jurisdiction of
the State of Florida and County of Broward. However, both parties agree to waive
any and all rights to trial or litigation of any dispute arising out of this
agreement, and to submit to final and binding arbitration any and all claims,
controversies and/or disputes of any nature arising out of or related in any way
to this Agreement or its enforcement.  Said arbitration shall be conducted
pursuant to the Employment Arbitration and Mediation Procedures currently in
effect with the American Arbitration Association, the designated arbitral
forum.

     

    15.           Counterparts.  This Agreement
may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same
Agreement.

     

    16.           Waiver of
Breach - Effect.  No waiver or any
breach of any term or provision of this Agreement shall be construed to be, nor
shall be, a waiver of any other breach of this Agreement.  No waiver
shall be binding unless in writing and signed by the Party waiving the
breach.

     

    17.           Full
Understanding and Voluntary Acceptance.  In entering into
this Agreement, the parties represent that they have relied upon the advice of
their attorneys or have chosen to enter into this Agreement without the
assistance of counsel based upon their understanding of the terms
hereof.  The terms of this Agreement have been completely read and
explained to them by their attorneys and/or they have
reviewed the terms hereof in complete detail and that the terms are fully
understood and voluntarily accepted by them.

     

    

    
      
        
          
            
              

            

             

             

          

           

        

        
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    18.           Headings.  The headings in
this Agreement are for convenience only and shall not be used to interpret or
construe its provisions.

     

    SIEGEL
ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT, THAT HE HAS BEEN GIVEN AMPLE
OPPORTUNITY TO REVIEW IT AND TO CONSULT WITH A REPRESENTATIVE OR ATTORNEY OF
SIEGEL’S CHOOSING CONCERNING ITS TERMS.  SIEGEL FURTHER ACKNOWLEDGES
THAT HE UNDERSTANDS THE TERMS AND CONDITIONS OF THIS AGREEMENT AND IS
VOLUNTARILY ENTERING INTO IT WITH THE COMPANY.

     

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

     

    
 

    
      
        
          
            
              
                
                  	
                          China
      Direct, Inc.

                        	 
      	 
      	
                           

                        	 
      
	
                          By:
      /s/James Wang

                        	 
      	 
      	
                          /s/
      Marc Siegel

                        	 
      
	
                          Yuejian
      (James) Wang, Chief Executive Officer, Chairman of the Board of
      Directors

                        	 
      	 
      	
                          Marc
      Siegel

                        	 
      
	
                          

                            Dated:  January 23,
      2009

                          

                        	 
      	 
      	Dated:  January 23,
      2009	 
      

                

              

            

          

        

      

      
        
           

        

        
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    Exhibit
A

    

    Lock-Up
Agreement

    

    
      
        
          
            
              

            

             

             

          

           

        

        
          - 7
-cdiiex10-3.htm

     

    
      

      

    

    

      STOCK
PURCHASE AGREEMENT

      

      

      Seller:

      

      Marc
Siegel

      943 Lake
Wyman Road

      Boca
Raton, FL 33431

      

      

      THIS
STOCK PURCHASE AGREEMENT (the “Agreement”) is made this January 23, 2009 between
Marc Siegel (the “Seller” or “Siegel”), and China Direct, Inc., referred to as
the (the “Purchaser”).

      

      W
I T N E S S E T H:

      

      WHEREAS,
Seller owns directly 4,400,000 shares of China Direct, Inc. common stock, par
value $0.0001 per share (the “Common Stock”); and

      

      WHEREAS,
the Purchaser desire to purchase an aggregate of 1,500,000 shares of Common
Stock of China Direct, Inc. (the “Shares”) from the Seller on the terms and
conditions set forth in this Agreement; and

      

      WHEREAS,
the Seller desires to sell the Shares to the Purchaser on the terms and
conditions set forth in this Agreement; and

      

      NOW,
THEREFORE, in consideration of the mutual promises and covenants herein
contained, and other good and valuable consideration, the receipt of which is
hereby acknowledged, the Seller and the PurchaserPurchaser hereby agree as
follows:

      

      1. Incorporation
by reference.  The above recitals are herein incorporated by
reference.

      

      2. Purchase
and Sale.  The Purchaser shall purchase from Seller, and the Seller
shall sell to the Purchaser, the Shares on the terms and conditions of this
Agreement.

      

      3. Consideration/Purchase
Price.  In consideration of the transfer by Seller of the Shares to
the Purchaser, the Purchaser shall deliver to the Seller the purchase price of
One Million Six Hundred Fifty Thousand Dollars ($1,650,000) ($1.10 per Share)
representing payment for the Shares which shall be transferred on the date
hereof.

      

      4. Obligations
of Seller.  Upon the date hereof, Seller shall deliver to the
Purchaser or its designees, the Shares.

      

      5. Obligations
of the Purchaser.  Upon the date hereof, the Purchaser shall deliver
to the Seller the Purchase Price pursuant to the terms of Section 3 of this
Agreement.

      

      6. Closing
and Condition to Closing.  Closing. The closing of the transactions
contemplated by this Agreement (the “Closing”) shall take place on or before
January 23, 2009 (the “Closing Date”).

      

      7. Representations
and Warranties of the Purchaser.

      
        
           

        

        
          - 1
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          A. 
Authority of the Purchaser; Execution of Agreement.  The Purchaser
have all requisite power, authority, and capacity to enter into this Agreement
and to perform the transactions and obligations to be performed by them
hereunder.  No consent, authorization, approval, license, permit or
order of, or filing with, any person or governmental authority is required in
connection with the execution of the transactions and obligations to be
performed by them hereunder.  This Agreement has been duly executed
and delivered by the Purchaser and constitutes a valid and legally binding
obligation of the Purchaser, enforceable in accordance with its terms, except as
enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws.

       

          B. The
Purchaser is an experienced and sophisticated investors, able to fend for itself
in the transactions contemplated by this Agreement, and has such knowledge and
experience in financial and business matters that it is capable of evaluating
the risks and merits of acquiring the Shares.

      

      8. Notices.  All
notices or other communications required or permitted hereunder shall be in
writing and shall be deemed to have been duly given if physically delivered;
delivered by overnight delivery, confirmed telecopy, telegram or courier; or
three days after having been deposited in the United States Mail, as certified
mail with return receipt requested and with postage prepaid, addressed to the
recipient at the address listed at the top of the first page of this
Agreement.  Any of the foregoing addresses may be changed by giving
notice of such change in the foregoing manner, except that notices for changes
of address will be effective only upon receipt.

      

      9. Miscellaneous.

      

      A. Assurances.  All
parties hereto shall execute and deliver such other instruments and do such
other acts as may be necessary to carry out the intent and purposes of this
Agreement.

      

      B. Entire
Agreement.  This Agreement constitutes the entire agreement between
the parties hereto with respect to the subject matter hereof.  It
supersedes all prior negotiations, letters and understandings relating to the
subject matter hereof.

      

      C. Amendment.  This
Agreement may not be amended, supplemented or modified in whole or in part
except by an instrument in writing signed by the party or parties against whom
enforcement of any such amendment, supplement or modification is
sought.

      

      D. Choice of
Law.  This Agreement will be interpreted, construed and enforced in
accordance with the laws of the State of Florida.

      

      E. Effect of
Waiver.  The failure of any party at any time or times to require
performance of any provision of this Agreement will in no manner affect the
right to enforce the same.  The waiver by any party of any breach of
any provision of this Agreement will not be construed to be a waiver by any such
party of any succeeding breach of that provision or a waiver by such party of
any breach of any other provision.

      

      F. Non-Public
Information.  China Direct, Inc. represents that neither it nor any
other person acting on its behalf has provided Siegel with any information that
it believes constitutes material non-public information.  China
Direct, Inc. agrees that neither it nor any other person acting on its behalf
will provide Siegel with any information that it believes constitutes material
non-public information, unless prior thereto Siegel shall have agreed in writing
to receive such information.

      

      
        
           

        

        
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        G.  Severability.  Whenever
possible, each provision of this Agreement will be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under
any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability will not affect any other provision or any other jurisdiction,
but this Agreement will be reformed, construed and enforced in such jurisdiction
as if such invalid, illegal or unenforceable provision had never been contained
herein.

        

        H.           Enforcement.  Should
it become necessary for any party to institute legal action to enforce the terms
and conditions of this Agreement, the successful party will be awarded
reasonable attorneys' fees at all trial and appellate levels, expenses and
costs.  Venue for any such action, in addition to any other venue
permitted by statute, will be in Broward County, Florida.

        

        I.      Binding
Nature.  This Agreement will be binding upon and will inure to the
benefit of any successor or successors of the parties to this
Agreement.

        

        J.      Counterparts.  This
Agreement may be executed in one or more counterparts, each of which will be
deemed an original and all of which together will constitute one and the same
instrument.

        

        K.           Construction.  This
Agreement shall be construed within the fair meaning of each of its terms and
not against the party drafting the document.

      

       

      The
parties, as evidenced by their signatures below, acknowledge that this Agreement
has been presented to their attorneys and that their attorneys have had the
opportunity to review and explain to them the terms and provisions of the
Agreement, and that they fully understand those terms and
provisions.

      

      IN
WITNESS WHEREOF, the parties have respectively caused this Agreement to be
executed on January 23, 2009.

       

       

      
        
          
            	
                    Purchaser:

                     

                    China Direct, Inc.

                    (Purchaser)

                     

                    Authorized Officer

                     

                    By: Yuejian Wang, Ph.D., Chief Executive
      Officer

                    (print
      name)

                     

                    /s/ Yuejian
      Wang

                    (sign
      name)                                                               

                     

                    431
      Fairway Drive

                    Deerfield
      Beach, FL 33411

                    954.363.7333
      Phone

                    954.363.7320
      Fax

                     

                  	
                    Seller:  Marc
      Siegel

                     

                    Marc Siegel

                    (print
      name)

                     

                      /s/ Marc Siegel

                    (sign
      name)

                     

                    943
      Lake Wyman Road

                    Boca
      Raton, FL 33431

                     

                  

          

        

      

      

      
        
           

        

        
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