Document:

AGREEMENT FOR SHARE EXCHANGE

 

THIS AGREEMENT FOR SHARE EXCHANGE (this “Agreement”) is dated as of November 1, 2005, by and among NT HOLDING CORP., a Nevada corporation (“NT”), Alan Lew, an individual with resident address at 385 Freeport#1, Sparks, NV, 89431 (“Alan Lew”), Tagalder C3 Holdings Inc., a British Virgin Islands corporation (“Tagalder”), and the Shareholders of Tagalder who execute this Agreement (collectively the “Shareholders”).

 

RECITALS:

 

NT and Tagalder desire to complete a share exchange transaction pursuant to which NT shall acquire all of the issued and outstanding common stock of Tagalder, solely in exchange for the issuance of shares of voting stock of NT; and

 

THE Board of Directors of NT and the Board of Directors of Tagalder have each approved the proposed transaction, contingent upon satisfaction prior to closing of all of the terms and conditions of this Agreement; and

 

THE SHAREHOLDERS are the owners of all of the issued and outstanding common stock of Tagalder; and

 

THE PARTIES desire to make certain representations, warranties and agreements in connection with completion of the proposed share exchange transaction.

 

NOW, THEREFORE, in consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, and the covenants, conditions, representations and warranties hereinafter set forth, the parties hereby agree as follows:

 

ARTICLE I 

THE EXCHANGE

 

1.1          The  Exchange. At the Closing (as hereinafter
defined),  NT shall  acquire all of the issued and  outstanding  common stock of
Tagalder  from the  Shareholders.  Consideration  to be  issued by NT shall be a
total of 19,946,000 shares of its common stock (the “Exchange Shares”)
in exchange for 100% of the issued and outstanding common stock of Tagalder. The
Exchange  Shares  shall be issued in the  amounts  set forth in  Exhibit  A. The
Exchange  shall take place upon the terms and  conditions  provided  for in this
Agreement  and  in  accordance  with  applicable  law.   Immediately   following
completion of the share exchange  transaction  through  issuance of the Exchange
Shares,  NT shall have a total of approximately 25,395,665 shares of its common
stock issued and  outstanding.  For Federal income tax purposes,  it is intended
that the Exchange shall constitute a tax-free  reorganization within the meaning
of Section  368(a)(1)(B)  of the Internal  Revenue Code of 1986, as amended (the
“Code”).

 

 

 

 

1.2          Other Consideration. NT shall pay $150,000 to
PNC Lab, Inc., a Nevada corporation  (“PNC”)  upon the earlier to occur
of (a) NT  successfully  raising at least  $150,000  from third party  investors
subsequent to the Closing Date, or (b) November 1, 2006. 

 

1.3        Closing and Effective Time. Subject to the provisions of this Agreement, the parties shall hold a closing (the “Closing”) on (i) the first business day on which the last of the conditions set forth in Article V to be fulfilled prior to the Closing is fulfilled or waived or (ii) such other date as the parties hereto may agree (the “Closing Date”), at such time and place as the parties hereto may agree. Such date shall be the date of Exchange (the “Effective Time”).

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES

 

2.1        Representations and Warranties of NT. NT represents and warrants to Tagalder and the Shareholders as follows:

 

 (a)         Organization, Standing and Power. NT is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada, has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted, and is duly qualified and in good standing to do business in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification necessary.

 

 (b)        Capital Structure. As of the date of execution of this Agreement, the authorized capital stock of NT consists of 5,000,000 shares of Preferred Stock with a par value of USD 0.001, of which no share is issued and outstanding and 100,000,000 shares of Common Stock with a par value of USD 0.001 per share, of which approximately 3,086,665 shares are currently issued and outstanding. NT has issued and outstanding warrants to purchase a total of 525,000 shares of Common Stock. The Exchange Shares to be issued pursuant to this Agreement shall be, when issued pursuant to the terms of the resolution of the Board of Directors of NT approving such issuance, validly issued, fully paid and nonassessable and not subject to preemptive rights. Except as otherwise specified
herein, as of the date of execution of this Agreement, there are no other options, warrants, calls, agreements or other rights to purchase or otherwise acquire from NT at any time, or upon the happening of any stated event, any shares of the capital stock of NT whether or not presently issued or outstanding.

 

 (c)         Certificate of Incorporation, Bylaws, and Minute Books. The copies of the Articles of Incorporation and of the Bylaws of NT which have been delivered to Tagalder are true, correct and complete copies thereof. The minute book of NT, which has been made available for inspection, contains accurate minutes of all meetings and accurate consents in lieu of meetings of the Board of Directors (and any committee thereof) and of the shareholders of NT since the date of incorporation and accurately reflects all transactions referred to in such minutes and consents in lieu of meetings.

 

 (d)        Authority. NT has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. The execution and delivery of this 

 

 

Agreement and the consummation of the transactions contemplated hereby have been duly authorized by the Board of Directors of NT. No other corporate or shareholder proceedings on the part of NT are necessary to authorize the Exchange, or the other transactions contemplated hereby.

 

 (e)         Conflict with Other Agreements; Approvals. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not result in any violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or the loss of a material benefit under, or the creation of a lien, pledge, security interest or other encumbrance on assets (any such conflict, violation, default, right of termination, cancellation or acceleration, loss or creation, a “violation”) pursuant to any provision of the Articles of Incorporation or Bylaws or any organizational document of NT or, result in any violation of any loan or credit
agreement, note, mortgage, indenture, lease, benefit plan or other agreement, obligation, instrument, permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to NT which violation would have a material adverse effect on NT taken as a whole. No consent, approval, order or authorization of, or registration, declaration or filing with, any court, administrative agency or commission or other governmental authority or instrumentality, domestic or foreign (a “Governmental Entity”) is required by or with respect to NT in connection with the execution and delivery of this Agreement by NT or the consummation by NT of the transactions contemplated hereby.

 

 (f)         Books and Records. NT has made and will make available for inspection by Tagalder upon reasonable request all the books of NT relating to the business of NT. Such books of NT have been maintained in the ordinary course of business. All documents furnished or caused to be furnished to Tagalder by NT are true and correct copies, and there are no amendments or modifications thereto except as set forth in such documents.

 

 (g)        Compliance with Laws. NT is and has been in compliance in all material respects with all laws, regulations, rules, orders, judgments, decrees and other requirements and policies imposed by any Governmental Entity applicable to it, its properties or the operation of its businesses.

 

 (h)         SEC Filings.  NT has filed all periodic reports required to be filed with the Securities and Exchange Commission and as of the date hereof, is current in its filing obligations.

 

(i)         Financial Statements and Tax Returns. Copies
of NT’s audited financial statements for the fiscal year ended December 31,
2004,  its unaudited  financial  statements for the periods ended March 31, 2005
and June 30,  2005 and of its tax  return  for the  fiscal  year  2004 have been
delivered to NEWFAIR.

 

(j)           Litigation.  There  is no  suit,  action  or
proceeding pending,  or, to the knowledge of NT, threatened against or affecting
NT which is reasonably  likely to have a material  adverse  effect on NT, nor is
there any judgment, decree, injunction, rule or order of any Governmental Entity
or arbitrator outstanding against NT having, or which, insofar as reasonably can
be foreseen, in the future could have, any such effect.

 

 

 

 

 (k)        Tax Returns. NT has duly filed any tax reports and returns required to be filed by it and has fully paid all taxes and other charges claimed to be due from it by any federal, state or local taxing authorities. There are not now any pending questions relating to, or claims asserted for, taxes or assessments asserted upon NT.

 

2.2        Representations and Warranties of Tagalder. Tagalder represents and warrants to NT as follows:

 

 (a)          Organization, Standing, Power and Business. Tagalder is a corporation duly organized, validly existing and in good standing under the laws of the British Virgin Islands, has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted, and is duly qualified and in good standing to do business in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification necessary. Tagalder, through its wholly owned subsidiary Hopeful Asia Limited (incorporated in Hong Kong) owns 75% of Fujia Coking and Chemical Company Limited (“FJCC”), a company incorporated in the People’s Republic of China (the “PRC”), that owns
drilling rights of a coke mine property called Yong’an coal mine, located in Xixinzhuong Town of Xiaoyi City, Shanxi Province, PRC. 

 

 (b)        Capital Structure. The authorized capital stock of Tagalder consists of 50,000 shares of Common Stock with a par value of US$1.00 per share. As of the date of execution of this Agreement, it has a total of 1,000 shares of common stock issued and outstanding. All issued and outstanding shares of Tagalder stock are validly issued, fully paid and nonassessable and not subject to preemptive rights or other restrictions on transfer. All of the issued and outstanding shares of Tagalder were issued in compliance with all applicable securities laws. Except as otherwise specified herein, there are no options, warrants, calls, agreements or other rights to purchase or otherwise acquire from Tagalder at any time, or upon the happening of any stated event, any shares of the
capital stock of Tagalder.

 

 (c)         Certificate of Incorporation, Bylaws and Minute Books. The copies of the Certificate of Incorporation and of the other corporate documents of Tagalder which have been delivered to NT are true, correct and complete copies thereof. The minute books of Tagalder which have been made available for inspection contain accurate minutes of all meetings and accurate consents in lieu of meetings of the Board of Directors (and any committee thereof) and of the shareholders of Tagalder since the date of incorporation and accurately reflect all transactions referred to in such minutes and consents in lieu of meetings.

 

 (d)        Authority. Tagalder has all requisite power to enter into this Agreement and, subject to approval of the proposed transaction by the holders of 100% of its issued and outstanding shares which are entitled to vote to approve the proposed transaction, has the requisite power and authority to consummate the transactions contemplated hereby. Except as specified herein, no other corporate or shareholder proceedings on the part of Tagalder are necessary to authorize the Exchange and the other transactions contemplated hereby.

 

 (e)         Conflict with Agreements; Approvals. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, 

 

 

conflict with, or result in any violation of any provision of the Certificate of Incorporation or Bylaws of Tagalder or of any loan or credit agreement, note, mortgage, indenture, lease, benefit plan or other agreement, obligation, instrument, permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Tagalder or its properties or assets. No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Entity is required by or with respect to Tagalder in connection with the execution and delivery of this Agreement by Tagalder, or the consummation by Tagalder of the transactions contemplated hereby.

 

(f)         RESERVED
.

 

(g)         Books and Records. Tagalder has made and will make available for inspection by NT upon reasonable request all the books of account, relating to the business of Tagalder. Such books of account of NEWFAIR have been maintained in the ordinary course of business. All documents furnished or caused to be furnished to NT by Tagalder are true and correct copies, and there are no amendments or modifications thereto except as set forth in such documents.

 

 (h)        Compliance with Laws. Tagalder is and has been in compliance in all material respects with all laws, regulations, rules, orders, judgments, decrees and other requirements and policies imposed by any Governmental Entity applicable to it, its properties or the operation of its businesses.

 

 (i)         Liabilities and Obligations. Tagalder has no material liabilities or obligations (absolute, accrued, contingent or otherwise) except (i) liabilities that are reflected and reserved against on the Tagalder financial statements that have not been paid or discharged since the date thereof and (ii) liabilities incurred since the date of such financial statements in the ordinary course of business consistent with past practice and in accordance with this Agreement.

 

 (j)         Litigation. There is no suit, action or proceeding pending, or, to the knowledge of Tagalder threatened against or affecting Tagalder, which is reasonably likely to have a material adverse effect on Tagalder, nor is there any judgment, decree, injunction, rule or order of any Governmental Entity or arbitrator outstanding against Tagalder having, or which, insofar as reasonably can be foreseen, in the future could have, any such effect.

 

 (k)        Taxes. Tagalder has filed or will file within the time prescribed by law (including extension of time approved by the appropriate taxing authority) all tax returns and reports required to be filed with all other jurisdictions where such filing is required by law; and Tagalder has paid, or made adequate provision for the payment of all taxes, interest, penalties, assessments or deficiencies due and payable on, and with respect to such periods. Tagalder knows of (i) no other tax returns or reports which are required to be filed which have not been so filed and (ii) no unpaid assessment for additional taxes for any fiscal period or any basis therefore.

 

 (l)         Licenses, Permits; Intellectual Property. Tagalder owns or possesses in the operation of its business all material authorizations which are necessary for it to conduct its business as now conducted. Neither the execution or delivery of this Agreement nor the 

 

 

consummation of the transactions contemplated hereby will require any notice or consent under or have any material adverse effect upon any such authorizations.

 

2.3        Representations and Warranties of the Shareholders. By execution of this Agreement, each of the Shareholders represents and warrants to NT as follows:

 

 (a)         Shares Free and Clear. The shares of Tagalder which he or she owns are free and clear of any liens, claims, options, charges or encumbrances of any nature.

 

 (b)        Unqualified Right to Transfer Shares.  He or she has the unqualified right to sell, assign, and deliver the portion of the shares of Tagalder specified on Exhibit A and, upon consummation of the transactions contemplated by this Agreement, NT will acquire good and valid title to such shares, free and clear of all liens, claims, options, charges, and encumbrances of whatsoever nature.

 

 (c)         Agreement and Transaction Duly Authorized. He or she is authorized to execute and deliver this Agreement and to consummate the share exchange transaction described herein.  Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will constitute a violation or default under any term or provision of any contract, commitment, indenture, other agreement or restriction of any kind or character to which such Shareholder is a party or by which such Shareholder is bound.

 

ARTICLE III

COVENANTS RELATING TO CONDUCT OF BUSINESS

 

3.1        Covenants of Tagalder and NT. During the period from the date of this Agreement and continuing until the Effective Time, Tagalder and NT each agree as to themselves  (except as expressly contemplated or permitted by this Agreement, or to the extent that the other party shall otherwise consent in writing):

 

 (a)         Ordinary Course. Each party shall carry on its respective businesses in the usual, regular and ordinary course in substantially the same manner as heretofore conducted.

 

 (b)         Dividends; Changes in Stock. No party shall (i) declare or pay any dividends on or make other distributions in respect of any of its capital stock, or (ii) repurchase or otherwise acquire, or permit any subsidiary to purchase or otherwise acquire, any shares of its capital stock.

 

 (c)         Issuance of Securities.  No party shall issue, deliver or sell, or authorize or propose the issuance, delivery or sale of, any shares of its capital stock of any class, any voting debt or any securities convertible into, or any rights, warrants or options to acquire, any such shares, voting debt or convertible securities.

 

 (d)        Governing Documents. No party shall amend or propose to amend its Articles of Incorporation or Bylaws.

 

 

 

 

 (e)         No Dispositions. Except for the transfer of assets in the ordinary course of business consistent with prior practice, no party shall sell, lease, encumber or otherwise dispose of, or agree to sell, lease, encumber or otherwise dispose of, any of its assets, which are material, individually or in the aggregate, to such party.

 

 (f)         Indebtedness. No party shall incur any indebtedness for borrowed money or guarantee any such indebtedness or issue or sell any debt securities or warrants or rights to acquire any debt securities of such party or guarantee any debt securities of others other than in each case in the ordinary course of business consistent with prior practice.

 

3.2       Other Actions. No party shall take any action that would or is reasonably likely to result in any of its representations and warranties set forth in this Agreement being untrue as of the date made (to the extent so limited), or in any of the conditions to the Exchange set forth in Article V not being satisfied.

 

ARTICLE IV

ADDITIONAL AGREEMENTS, COVENANTS AND RELATED TRANSACTIONS

 

4.1        Restricted NT Shares. The Exchange Shares will not be registered under the Securities Act, but will be issued pursuant to applicable exemptions from such registration requirements for transactions not involving a public offering and/or for transactions which constitute “offshore transactions” as defined in Regulation S under the Securities Act of 1933. Accordingly, the Exchange Shares will constitute “restricted securities” for purposes of the Securities Act and the holders of Exchange Shares will not be able to transfer such shares except upon compliance with the registration requirements of the Securities Act or in reliance upon an available exemption therefrom. The certificates evidencing the Exchange Shares shall contain a legend to the
foregoing effect and the holders of such shares shall deliver at Closing an Investment Letter acknowledging the fact that the Exchange Shares are restricted securities and agreeing to the foregoing transfer restrictions.

 

4.2        Access to Information. Upon reasonable notice, NT and Tagalder shall each afford to the officers, employees, accountants, counsel and other representatives of the other company, access to all their respective properties, books, contracts, commitments and records and, during such period, each of NT and Tagalder shall furnish promptly to the other (a) a copy of each report, schedule, registration statement and other document filed or received by it during such period pursuant to the requirements of Federal or state securities laws and (b) all other information concerning its business, properties and personnel as such other party may reasonably request. Unless otherwise required by law, the parties will hold any such information which is nonpublic in confidence until
such time as such information otherwise becomes publicly available through no wrongful act of either party, and in the event of termination of this Agreement for any reason each party shall promptly return all nonpublic documents obtained from any other party, and any copies made of such documents, to such other party.

 

4.3        Legal Conditions to Exchange. Each of NT and Tagalder shall take all reasonable actions necessary to comply promptly with all legal requirements which may be imposed on itself with respect to the Exchange and will promptly cooperate with and furnish information to each 

 

 

other in connection with any such requirements imposed upon any of them or upon any of their related entities or subsidiaries in connection with the Exchange. Each party shall take all reasonable actions necessary to obtain (and will cooperate with each other in obtaining) any consent, authorization, order or approval of, or any exemption by, any Governmental Entity or other public or private third party, required to be obtained or made by NT or Tagalder or any of their related entities or subsidiaries in connection with the Exchange or the taking of any action contemplated thereby or by this Agreement.

 

NT Board of Directors and Officers. The current directors of NT shall resign as of the Closing Date except that one of the directors shall remain on the board of directors and resign only after Tagalder successfully appoints successors to the board of directors.

 

	
             
 	
            4.5
 	
            Additional Share Issuances. For a period of twelve months after the Closing Date, NT may not issue more than five percent (5%) of the total outstanding shares of NT as of the Closing Date under an exemption from registration under the Securities Act pursuant to Form S8 or similar form.
 

 

	
             
 	
            4.6
 	
            Acquisitions Using NT Equity. For a period of twelve months after the Closing Date, NT may not make an acquisition using equity of NT wherein the equity consideration consists of a premium of greater than 25% of the valuation of the acquiree. For purposes of determining such valuation, NT will retain the services of an independent, third party registered valuation firm in the United States. 
 

 

	
             
 	
            4.7
 	
            Filing of Required Reports with the SEC. In the event that NT does not file a Current Report on Form 8-K within 30 days of the Closing Date including all necessary and required financial information, including, but not limited to, audited financial statements, the current officers and directors of NT, in their sole discretion, may rescind the Share Exchange.
 

 

ARTICLE V

CONDITIONS PRECEDENT

 

5.1        Conditions to Each Party’s Obligation To Effect the Exchange. The respective obligations of each party to effect the Exchange shall be conditional upon the filing, occurring or obtainment of all authorizations, consents, orders or approvals of, or declarations or filings with, or expirations of waiting periods imposed by any governmental entity or by any applicable law, rule, or regulation governing the transactions contemplated hereby.

 

5.2        Conditions to Obligations of NT. The obligation of NT to effect the Exchange is subject to the satisfaction of the following conditions on or before the Closing Date unless waived by NT:

 

 (a)         Representations and Warranties. The representations and warranties of NEWFAIR and of the SHAREHOLDERS set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and (except to the extent such representations 

 

 

and warranties speak as of an earlier date) as of the Closing Date as though made on and as of the Closing Date, except as otherwise contemplated by this Agreement, and NT shall have received a certificate signed on behalf of Tagalder by the President of Tagalder and a certificate signed by each of the Shareholders  to such effect.

 

 (b)        Performance of Obligations of Tagalder. Tagalder shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing Date, and NT shall have received a certificate signed on behalf of Tagalder by the President to such effect.

 

 (c)         Closing Documents. NT shall have received such certificates and other closing documents as counsel for NT shall reasonably request.

 

 (d)         No Dissenting Shares.  Shareholders holding 100% of the issued and outstanding common stock of number of shares of common stock of Tagalder shall have executed this Agreement and consented to completion of the share exchange transaction described herein.

 

 (e)         Consents. Tagalder shall have obtained the consent or approval of each person whose consent or approval shall be required in connection with the transactions contemplated hereby under any loan or credit agreement, note, mortgage, indenture, lease or other agreement or instrument, except those for which failure to obtain such consents and approvals would not, in the reasonable opinion of NT, individually or in the aggregate, have a material adverse effect on Tagalder and its subsidiaries and related entities taken as a whole upon the consummation of the transactions contemplated hereby. Tagalder shall also have received the approval of its shareholders in accordance with applicable law.

 

 (f)         Due Diligence Review. NT shall have completed to its reasonable satisfaction a review of the business, operations, finances, assets and liabilities of Tagalder and shall not have determined that any of the representations or warranties of Tagalder contained herein are, as of the date hereof or the Closing Date, inaccurate in any material respect or that Tagalder is otherwise in violation of any of the provisions of this Agreement.

 

 (g)        Pending Litigation. There shall not be any litigation or other proceeding pending or threatened to restrain or invalidate the transactions contemplated by this Agreement, which, in the sole reasonable judgment of NT, made in good faith, would make the consummation of the Exchange imprudent. In addition, there shall not be any other litigation or other proceeding pending or threatened against Tagalder, the consequences of which, in the judgment of NT, could be materially adverse to Tagalder.

 

5.3        Conditions to Obligations of Tagalder. The obligation of Tagalder to effect the Exchange is subject to the satisfaction of the following conditions unless waived by Tagalder:

 

 (a)         Representations and Warranties. The representations and warranties of NT set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and (except to the extent such representations speak as of an earlier date) as of the Closing Date as though made on and as of the Closing Date, except as otherwise contemplated by 

 

 

this Agreement, Tagalder shall have received a certificate signed on behalf of NT by the President to such effect.

 

 (b)        Performance of Obligations of NT. NT shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing Date, and Tagalder shall have received a certificate signed on behalf of NT by the President to such effect.

 

 (c)         Closing Documents. Tagalder shall have received such certificates and other closing documents as counsel for Tagalder shall reasonably request.

 

 (d)        Consents. NT shall have obtained the consent or approval of each person whose consent or approval shall be required in connection with the transactions contemplated hereby.

 

 (e)         Due Diligence Review. Tagalder shall have completed to its reasonable satisfaction a review of the business, operations, finances, assets and liabilities of NT and shall not have determined that any of the representations or warranties of NT contained herein are, as of the date hereof or the Closing Date, inaccurate in any material respect or that NT is otherwise in violation of any of the provisions of this Agreement.

 

 (f)         Pending Litigation. There shall not be any litigation or other proceeding pending or threatened to restrain or invalidate the transactions contemplated by this Agreement, which, in the sole reasonable judgment of Tagalder, made in good faith, would make the consummation of the Exchange imprudent. In addition, there shall not be any other litigation or other proceeding pending or threatened against NT the consequences of which, in the judgment of Tagalder, could be materially adverse to NT.

 

ARTICLE VI

TERMINATION AND AMENDMENT

 

6.1        Termination. This Agreement may be terminated at any time prior to the Effective Time:

 

(a)          by mutual consent of NT and Tagalder;

 

 (b)         by either NT or Tagalder if there has been a material breach of any representation, warranty, covenant or agreement on the part of the other set forth in this Agreement which breach has not been cured within five (5) business days following receipt by the breaching party of notice of such breach, or if any permanent injunction or other order of a court or other competent authority preventing the consummation of the Exchange shall have become final and non-appealable; or

 

 (c)         by either NT or Tagalder if the Exchange shall not have been consummated before  November 15, 2005.

 

 

 

 

6.2        Effect of Termination. In the event of termination of this Agreement by either Tagalder or NT as provided in Section 6.1, this Agreement shall forthwith become void and there shall be no liability or obligation on the part of any party hereto. In such event, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses.

 

6.3        Amendment. This Agreement may be amended by mutual agreement of NT, Tagalder and the Shareholders, provided that in the case of NT and Tagalder, any such amendment must authorized by their respective Boards of Directors, and to the extent required by law, approved by their respective shareholders. Any such amendment must be by an instrument in writing signed on behalf of each of the parties hereto.

 

6.4        Extension; Waiver. At any time prior to the Effective Time, the parties hereto, by action taken or authorized by their respective Board of Directors, may, to the extent legally allowed, (a) extend the time for the performance of any of the obligations or other acts of the other parties hereto, (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto and (c) waive compliance with any of the agreements or conditions contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in a written instrument signed on behalf of such party.

 

ARTICLE VII

GENERAL PROVISIONS

 

7.1        Survival of Representations, Warranties and Agreements. All of the representations, warranties and agreements in this Agreement or in any instrument delivered pursuant to this Agreement shall survive the Effective Time for a period of three years from the date of this Agreement.

 

7.2        Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally, telecopied (which is confirmed) or mailed by registered or certified mail (return receipt requested) to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

 

	
             
 	
            (a)
 	
            If to NT and ALAN LEW:
 
	
             
 	
            385 Freeport#1
 	
             

					

Sparks, NV, 89431

 

	
             
 	
            (b)
 	
            If to Tagalder:
 	
             

	
             
 	
            8/F., No 211. Johnston Road
 
	
             
 	
            Wanchai, Hong Kong
 	
             

						

 

 

	
             
 	
            (c)
 	
            If to the SHAREHOLDERS, at their respective addresses specified on Exhibit A.
 

 

7.3        Interpretation. When a reference is made in this Agreement to Sections, such reference shall be to a Section of this Agreement unless otherwise indicated. The headings 

 

 

contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”. The phrase “made available” in this Agreement shall mean that the information referred to has been made available if requested by the party to whom such information is to be made available.

 

7.4        Counterparts. This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when two or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.

 

7.5        Entire Agreement; No Third Party Beneficiaries; Rights of Ownership. This Agreement (including the documents and the instruments referred to herein) constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof, and is not intended to confer upon any person other than the parties hereto any rights or remedies hereunder.

 

7.6        Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of Delaware without regard to principles of conflicts of law. Each party hereby irrevocably submits to the jurisdiction of any Delaware state court or any federal court in the State of Delaware in respect of any suit, action or proceeding arising out of or relating to this Agreement, and irrevocably accept for themselves and in respect of their property, generally and unconditionally, the jurisdiction of the aforesaid courts.

 

7.7        No Remedy in Certain Circumstances. Each party agrees that, should any court or other competent authority hold any provision of this Agreement or part hereof or thereof to be null, void or unenforceable, or order any party to take any action inconsistent herewith or not to take any action required herein, the other party shall not be entitled to specific performance of such provision or part hereof or thereof or to any other remedy, including but not limited to money damages, for breach hereof or thereof or of any other provision of this Agreement or part hereof or thereof as a result of such holding or order.

 

7.8        Publicity. Except as otherwise required by law or the rules of the SEC, so long as this Agreement is in effect, no party shall issue or cause the publication of any press release or other public announcement with respect to the transactions contemplated by this Agreement without the written consent of the other party, which consent shall not be unreasonably withheld.

 

7.9        Assignment. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other parties. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns.

 

 

 

 

 

                IN WITNESS WHEREOF, this Agreement for Share Exchange has been signed by the parties set forth below as of the date set forth above.

 

NT HOLDING CORP

 

 

	
            By:
 	
            /s/Alan Lew
 	
             

	
             
 	
            Alan Lew, President
 

 

	
             
 	
            Date: November 1, 2005
 

 

TAGALDER C3 HOLDINGS INC.

 

By: /s/ Chun Ka Tsun 

	
             
 	
            Chun Ka Tsun, Authorized Officer
 

 

	
             
 	
            Date: November 1, 2005
 

 

SHAREHOLDERS:

 

 

TG WANASPORTS MANAGEMENT LIMITED

 

By:  /s/  Chun Ka Tsun 

 

FUGU ENTERPRISES INC.

 

By:  /S/ Chan Tsz King

 

FIRST ASIA PRIVATE EQUITY INVESTMENT LIMITED

 

By: /S/ Li Sze Tang 

 

 

 

 

EXHIBIT A

 

	
            SHAREHOLDER
 	
            NUMBER OF SHARES
 

 

	
            TG Wanasports Management Holdings Limited
 	
            10,338,200
 

 

	
            Fugu Enterprises Inc.
 	
            8,974,840
 

 

	
            First Asia Private Equity Investment Limited
 	
            632,960Exhibit 10.10

EMPLOYMENT AGREEMENT
 BY AND BETWEEN
 FEDERAL TRUST CORPORATION
 AND
 JAMES V. SUSKIEWICH

          THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into this 1st day of October, 2005, by and between Federal Trust Corporation (“FTC” or “Employer”) and James V. Suskiewich (“Employee”).  Employer and Employee are collectively referred to herein as the “Parties.”

RECITALS

          WHEREAS, the Board of Directors of FTC has reviewed and accepted the recommendations of the Compensation Committee in finding that the current Amended and Restated Employment Agreement between FTC and Employee has become dated and revisions are necessary to comport with the current facts and circumstances regarding FTC and Employee’s employment therewith;

          WHEREAS, Employer wishes to retain Employee as FTC’s Chief Executive Officer and President, and as an executive officer of certain “Subsidiaries” of FTC, specifically as Federal Trust Bank’s (the “Bank”) Chief Executive Officer, and as Federal Trust Mortgage Corporation’s (“FTMC”) Chief Executive Officer to perform the duties and responsibilities as are described in this Agreement, and as the Employer may assign to Employee from time to time; and

          WHEREAS, Employee desires to continue to be employed by the Employer, in the capacities recited above and in accordance with the terms and provisions of this Agreement. 

          NOW, THEREFORE, in consideration of the mutual agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto represent, warrant, undertake, covenant, and agree as follows:

OPERATIVE TERMS

          1.          Employment and Term. Employer shall employ Employee pursuant to the terms of this Agreement to perform the services specified in Section 2 herein.  The initial term of employment shall be for a period of three years, commencing on January 1, 2005 (“Effective Date”). This Agreement shall be automatically renewed daily (such that the Agreement shall continually have three years remaining on its term) until December 31, 2008, which shall be the final daily renewal under this Agreement.  However, either Party may terminate such renewals of this Agreement at any time by giving the other Party written notice of its intent not to renew.

          The Board or its Compensation Committee shall, on at least an annual basis, review Employee’s performance and this Agreement to determine if the Agreement’s renewals should be continued. The Board’s or its Compensation Committee’s decision regarding such renewals shall be included in its meeting minutes.

          2.          Position, Responsibilities, and Duties. During the term of this Agreement, Employee shall devote all of his working time, attention, skill, and best efforts to accomplish and faithfully perform all of the duties assigned to Employee on a full-time basis. Employee shall, at all times, conduct himself in a manner that will reflect positively upon the Employer. Employee shall obtain and maintain such licenses, certificates, accreditations, and professional memberships and designations as the Employer may reasonably require. Employee shall notify Employer prior to any significant participation by him in any trade association or similar organization. Employee shall also have the specific duties as prescribed in Schedule A. 

          3.          Compensation. During the term of this Agreement, Employee shall be compensated as described in Schedule B.

          4.          Payment of Business Expenses. Employee is authorized to incur reasonable expenses in performing his duties hereunder. Employer will reimburse Employee for authorized expenses, according to the Employer’s established policies, promptly after Employee’s presentation of an itemized account of such expenditures.

          5.          Illness or Incapacity.

	
  
 
  	
  
            (a)          Duration: Employee   shall be paid his full Base Salary for any period of his illness or   incapacity for up to one year; provided, however, that Employer shall be   responsible only for that portion of Employee’s Base Salary which is not   covered through any disability insurance provided by the Employer. If   Employee’s illness renders him unable to perform his duties under this   Agreement for a period longer than three consecutive months, at the end of   such three-month period or any such time thereafter, Employer may terminate   Employee’s employment, at which time the provisions of Section 5(c) shall   apply.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
            (b)          Continuation of Coverages:   Notwithstanding any contrary provision herein, following any termination of   Employee’s employment pursuant to Section 5(a), the Employer will continue   any other life, health, and disability coverages for Employee substantially   identical to the coverages maintained prior to Employee’s termination until   the earlier of:
  

	
  
 
  	
  
     (1)
  	
  
Employee’s full time employment by another Person;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
     (2)
  	
  
one year after the date of such termination (with   the exception of any disability insurance coverage in place, which shall be   governed by the terms of such policy); or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
     (3)
  	
  
the date of Employee’s death.
  

	
  
 
  	
  
            (c)          Permanent Disability:  In the event that Employee is terminated   after having been deemed by Employer to be permanently disabled, Employer   shall continue to pay Employee his full Base Salary for the first six months   of Employee’s disability, and thereafter 75% of his Base Salary for the   remaining term of this Agreement.
  
	 	 
	 	            Provided, however, that Employer’s responsibility for paying Employee pursuant to this Subsection (c) shall be reduced by any amount actually received by Employee from any disability insurance coverage provided by the Employer, Social Security Insurance, any bank owned life insurance, supplemental retirement plan, or any other similar government or Employer-sponsored plan or program.

          6.          Termination for Other than Illness or Incapacity.

	
  
 
  	
  
            (a)          Death: This   Agreement shall immediately terminate upon Employee’s death, in which   instance Employer shall pay to Employee’s estate any compensation accrued,   but not yet paid.
  
	
   
  	
  
 
  
	
  
 
  	
  
            (b)          Termination for Cause:   The Employer shall have the right, at any time, upon written notice of   termination satisfying the requirements of Section 8 herein, to terminate   Employee’s employment hereunder, including termination for Cause as   determined by the Board of Directors. A termination for Cause shall be   effective immediately upon effectiveness of a notice of termination. For the   purpose of this Agreement, termination for “Cause” shall mean termination   for:
  

	
  
 
  	
  
(1)     personal dishonesty   resulting (directly or indirectly) in gain to or personal enrichment of   Employee at the expense of Employer, breach of fiduciary duty, violation of   any significant law, rule, or regulation, violation of a final   cease-and-desist order, or personal default on indebtedness, which is not   corrected within 30 days from the date of default; and/or
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(2)     insubordination,   conduct unbecoming of a senior officer of a financial institution, which   could have a material negative reflection on the Employer, materially failing   to perform the duties stated in Schedule A of this Agreement (i.e.,   failing to perform the essential duties of Employee’s position).
  

	 	          In the event Employee is terminated for cause for one of the reasons listed in (1) or (2) above, Employee shall have no right to compensation or other benefits for any period after such date of termination, other than compensation which was accrued, but not yet paid and (in the case of termination pursuant to Section 5[a]) the continuation of coverages and salary as described in Sections 5(b) and 5(c), or as provided elsewhere in this Agreement. 
	 	 
	 	          In the event Employee is terminated for cause for one of the reasons listed in (2) above, Employee shall have five business days to appeal such termination in writing to the Board. If Employee fails to appeal the termination within such five business day period, such termination shall become final and non-appealable.
	 	 
	 	          If Employee does appeal a termination for cause for one of the reasons listed in (2) above, Employer and Employee shall submit the question of whether such termination was properly for cause to a single arbitrator pursuant to the rules of the American Arbitration Association. Such arbitrator shall be mutually agreed upon by Employee and Employer. If Employee and Employer can not agree on the selection of an arbitrator, each of them shall select one arbitrator, who in turn shall select a third and the matter shall be submitted to a panel of those three arbitrators. The decision of the arbitrator(s) shall be final, binding and non-appealable.
	 	 
	 	          If the arbitrator(s) rule in favor of Employer, the termination for cause shall become final and non-appealable. If the arbitrator(s) rule in favor of the Employee, the termination shall be deemed to not be a termination for cause, but rather a termination without cause, and Employee shall be entitled to severance benefits under Sections 6(f) and (g).

	
  
 
  	
  
            (c)          Other Termination by Employer:  If Employee is terminated by Employer   other than for Cause, Employee’s right to severance benefits under this Agreement   shall be as set forth in Sections 6(f) and (g) herein.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
            (d)          Termination for Good Reason:   Employee may terminate his employment hereunder for Good Reason by delivering   a notice of termination (as defined in Section 8). For purposes of this   Agreement, “Good Reason” shall mean a failure by FTC to comply with any   material provision of this Agreement, which failure has not been cured within   15 business days after a notice of such noncompliance has been given by the   Employee to FTC. In the event Employee terminates his employment for Good   Reason, he shall be entitled to severance benefits as set forth in Sections   6(f) and (g).
  
	
  
 
  	
  
 
  
	
  
 
  	
  
            (e)          Termination by Employee:   Employee may terminate his employment hereunder and this Agreement for any   reason, by providing a notice of termination (as defined in Section 8). In   such event, Employee shall have no right to compensation or other benefits   after the date of termination, except for accrued but unpaid compensation.
  
	
   
  	
  
 
  
	
  
 
  	
  
            (f)          Severance Payment:  If Employee is entitled to severance   benefits under Sections 6(c) or (d), Employee shall be paid, as severance,   the total Base Salary (as defined in Schedule   B) due for the remaining term of this Agreement, but not for a   period of less than six months. Any such payment shall be made in   substantially equal semi-monthly installments on the 15th and last days of   each month until paid in full and shall only be paid subject to Employee’s   execution of a full release in favor of the Employer for any potential claims   related to this Agreement or to Employee’s employment with the Employer.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
            (g)          Additional Severance Benefits:   If Employee is entitled to severance benefits under Sections 6(c) or (d), the   Employer shall maintain in full force and effect, for the continued benefit   of the Employee any Employee benefit plans and programs in which the Employee   was entitled to participate immediately prior to the date of termination for   the shorter of:
  

	
   
  	
  
     (1)
  	
  
the remaining term of this Agreement; or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
     (2)
  	
  
the period of time ending on the date Employee   becomes eligible for participation in a comparable plan provided by another   employer; provided, however, that the Employee’s continued participation is   possible under the general terms and provisions of such plans and programs.
  

          7.          Regulatory Provisions. Employer and Employee acknowledge that the laws and regulations governing the Parties require that the employment of Employee be governed by certain standards contained in those laws and regulations. To that end, the Parties agree to be bound by the following provisions, as mandated by the Office of Thrift Supervision through Section 563.39(b) of the Code of Federal Regulations (“CFR”):

	
  
 
  	
  
            (a)          Suspension/Temporary Prohibition:   If the Employee is suspended and/or temporarily prohibited from participating   in the conduct and affairs of the Employer or the Bank by a notice served   under Sections 8(e) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C.   §1818[e][3] and [g][1]) FTC’s obligations under this Agreement shall be   suspended as of the date of such service unless stayed by appropriate   proceedings. If the charges and the notice are dismissed, FTC may in its   discretion:
  

	
  
 
  	
  
     (i)
  	
  
pay the Employee all or part of his compensation   withheld while the obligations under this Agreement are suspended; and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
     (ii)
  	
  
reinstate (in whole or part) any of FTC’s   obligations which were suspended.
  

	
  
 
  	
  
            (b)          Permanent Prohibition:   If the Employee is removed and/or permanently prohibited from participating   in the conduct and affairs of the Bank by an order issued under Sections   8(e)(4) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. §1818[e][4]   or [g][1]), all of FTC’s obligations under this Agreement shall terminate as   of the effective date of the order, but the Employee’s vested rights, if any   shall not be affected.
  
	
   
  	
  
 
  
	
  
 
  	
  
            (c)          Default Under FDIA:  If the Bank is in default (as defined in   Section 3(x)(1) of the Federal Deposit Insurance Act), all obligations under   this Agreement shall terminate as of the date of default, but this subsection   of this Agreement shall not affect the Employee’s vested rights if any.
  

          In addition, Employer’s obligations under this Agreement shall be terminated upon the Office of Thrift Supervision’s issuance of a Notice or Order upon Employee pursuant to Section 508.3 CFR. If after a hearing on any such Notice, Employee’s suspension, removal, or prohibition is rescinded, Employer may, in its discretion reinstate the Agreement.  Likewise under, Section 565.9 CFR, if the Office of Thrift Supervision issues an Order mandating the dismissal of Employee, Employer’s obligations under this Agreement shall terminate upon the issuance of such Order. 

          8.          Notice of Termination.

	
  
 
  	
  
            (a)          Specificity: Any   termination of Employee’s employment by Employer or by Employee shall be   communicated by written notice of termination to the other Party.  For purposes of this Agreement, a “notice   of termination” shall mean a dated notice which shall: (i) indicate the   specific relevant termination provision in the Agreement; (ii) set forth in   reasonable detail the facts and circumstances claimed to provide a basis for   termination of Employee’s employment under the provision; and (iii) set forth   the date of termination, which shall be not less than 30 days nor more than   45 days after such notice of termination is given, unless another Section of   the Agreement requires or permits a different effective date.
  
	
   
  	
  
 
  
	
  
 
  	
  
            (b)          Delivery of Notices:  All notices or resignations given or   required to be given herein shall be in writing, sent by United States   first-class certified or registered mail, postage prepaid, by way of   overnight carrier, or by hand delivery. If to Employee (or to the Employee’s   spouse or estate upon the Employee’s death) notice shall be sent to   Employee’s last-known address, and if to Employer, notice shall be sent to   the Employer’s corporate headquarters. All such notices shall be effective   five days after having been deposited in the mail if sent via first-class,   certified, or registered mail, or upon delivery if by hand delivery or if   sent via overnight carrier. Either Party, by notice in writing, may change or   designate the place for receipt of all such notices.

 

          9.          Post-Termination Obligations. Employer shall pay to Employee such payments and benefits as are required pursuant to this Agreement; provided, however, any such payments shall be subject to Employee’s post-termination cooperation. Such cooperation shall include the following:

	
  
 
  	
  
            (a)          Employee   shall furnish such information and assistance as may be reasonably required   by Employer in connection with any litigation or settlement of any dispute   between Employer and a customer or other third parties (including without   limitation serving as a witness in court or other proceedings);
  
	
   
  	
  
 
  
	
  
 
  	
  
            (b)          Employee   shall provide such information or assistance to Employer in connection with   any regulatory examination by any state or federal regulatory agency;
  

	
  
 
  	
  
            (c)          Employee   shall keep the Employer’s trade secrets and other proprietary or confidential   information secret to the fullest extent practicable, subject to compliance   with all applicable laws;
  
	
  
 
  	
  
 
  
	
  
 
  	
  
            (d)          Employee   shall return all Employer’s property, including, but not limited to, keys,   credit cards, manuals, and other written materials.
  
	
  
 
  	
  
 
  
	
   
  	
  
            (e)          Employee   shall execute a full release of all potential claims related to this   Agreement or to Employee’s employment with the Employer in favor of the   Employer.
  

          Upon submission of proper receipts, Employer shall promptly reimburse Employee for any reasonable expenses incurred by Employee in complying with the provisions of this Section.

          10.        Indebtedness. If during the term of this Agreement, Employee becomes indebted to  FTC or the Bank, for any reason, Employer may, at its election, set off and collect any sums due Employee out of any amounts which Employer may owe Employee pursuant to the terms of this Agreement. Furthermore, upon the termination of this Agreement, all sums owed to Employer by Employee shall become immediately due and payable. Employee shall pay all expenses and Attorneys’ Fees actually or necessarily incurred by Employer in connection with any collection proceeding for Employee’s indebtedness. Notwithstanding any of the foregoing, any indebtedness to Employer or to one of Employer’s subsidiaries, secured by a mortgage on Employee’s residence shall not be subject to the foregoing provisions, but shall be governed by the loan documents
evidencing such indebtedness.  

          11.        Maintenance of Trade Secrets and Confidential Information. Employee shall use his best efforts and utmost diligence to guard and protect all of Employer’s and its Subsidiaries’ trade secrets and confidential information. Employee shall not, either during the term, or after termination, of this Agreement, for whatever reason, use in any capacity, or divulge or disclose in any manner, to any Person, the identity of Employer’s or its Subsidiaries’ customers, methods of operation, marketing or promotional methods, processes, techniques, systems, formulas, programs, trade secrets, or other confidential information relating to the business of Employer and its Subsidiaries. Upon termination of this Agreement or Employee’s employment, for any reason, Employee shall immediately return and deliver to Employer and its
Subsidiaries, all records and papers and all materials which bear employment trade secrets or confidential information.  

          12.        Competitive Activities.   

	
  
 
  	
  
            (a)          Limitation on Outside Activities:   Employee agrees that during the term of this Agreement, except with the   express consent of the Board, Employee will not, directly or indirectly,   engage in, participate in, become a director of, render advisory or other   services to, become employed by, or make any financial investment in any   firm, corporation, business entity, or business enterprise competitive with   or to any business of the Employer and its Subsidiaries. Notwithstanding the   foregoing, Employee shall not be precluded or prohibited from owning passive   investments, including investments in the securities of other financial   institutions.  Employee, however, shall   be prohibited from making any investments or commitments of time, accepting   any positions or participating in any activities which
cause Employee to   devote time to such investments, commitments, positions, or activities which   interfere with Employee’s position with and obligations to Employer.
  

	
  
 
  	
  
            (b)          Agreement Not to Compete:   Employee acknowledges that by virtue of his employment with Employer,   Employee will acquire an intimate knowledge of the activities and affairs of   Employer and its Subsidiaries, including trade secrets and other confidential   matters.  Employee, therefore, agrees   that during the term of this Agreement, and for a period of six months   following  the termination of   Employee’s employment hereunder, Employee shall not become employed, directly   or indirectly, whether as an employee, independent contractor, consultant, or   otherwise, with any federally-insured financial institution, financial   holding company, bank holding company, or other financial services provider   located in Seminole County, Florida or in any other county in which the Bank   has a branch
location, or with any Person whose intent it is to organize   another such company or entity located in Seminole County, Florida or in any   other county in which the Bank has a branch location.
  
	
  
 
  	
 
  
	
  
 
  	
          Employee hereby agrees that the duration of the anti-competitive covenant set forth herein is reasonable, and that its geographic scope is not unduly restrictive.

          13.        Remedies for Breach.

	
  
 
  	
  
            (a)          Arbitration: The   Parties agree that, except for the specific remedies for Injunctive Relief as   contained in Section 13(b) herein, any controversy or claim arising out of or   relating to this Agreement, or any breach thereof, including, without   limitation, any claim that this Agreement or any portion thereof is invalid,   illegal, or otherwise voidable, shall be submitted to binding arbitration   before and in accordance with the Rules of the American Arbitration   Association. Judgment upon the determination and/or award of such arbitrator   may be entered in any court having jurisdiction thereof; provided, however,   that this clause shall not be construed to permit the award of punitive   damages to either Party.  The   prevailing party to said arbitration shall be entitled to an award of   reasonable
Attorneys’ Fees. The venue for arbitration shall be in Seminole   County, Florida.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
            (b)          Injunctive Relief:  The Parties acknowledge and agree that   the services to be performed by Employee are special and unique and that   money damages cannot fully compensate Employer in the event of Employee’s   violation of the provisions of Sections 11 and 12 of this Agreement. Thus, in   the event of a breach of any of the provisions of such Sections, Employee   agrees that Employer, upon application to a court of competent jurisdiction,   shall be entitled to an injunction restraining Employee from any further   breach of the terms and provision of such Section. Should Employer prevail in   an action seeking such an injunction, Employee shall pay all costs and   Attorneys’ Fees incurred by Employer in and relating to obtaining such   injunction. Employee’s sole remedy, in the event of the
wrongful entry of   such injunction, shall be the dissolution of such injunction and recovery of   Attorneys’ Fees. Employee hereby waives any and all claims for damages by   reason of the wrongful issuance of any such injunction.
  
	
   
  	
  
 
  
	
  
 
  	
  
            (c)          Cumulative Remedies: Notwithstanding   any other provision of this Agreement, the injunctive relief described in   Section 13(b) herein and all other remedies provided for in this Agreement,   which are available to Employer as a result of Employee’s breach of this   Agreement, are in addition to and shall not limit any and all remedies   existing at law or in equity which may also be available to Employer.
  

          14.        Assignment. This Agreement shall inure to the benefit of and be binding upon the Employee, and to the extent applicable, his heirs, assigns, executors, and personal representatives, and to the Employer, and to the extent applicable, its successors, and assigns, including, without limitation, any Person which may acquire all or substantially all of FTC’s assets and business, or with or into which FTC may be consolidated or merged, and this provision shall apply in the event of any subsequent merger, consolidation, or transfer.

          15.        Attorneys’ Fees.  In the event that any claim or controversy hereunder is the subject of any litigation or arbitration between the Parties, the prevailing Party shall be entitled to an award of all reasonable costs, including Attorneys’ Fees.

          16.        Miscellaneous.

	
  
 
  	
  
            (a)          Amendment of Agreement:   Unless as otherwise provided herein, this Agreement may not be modified or   amended except in writing signed by the Parties.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
            (b)          Certain Definitions:  For purposes of this Agreement, the   following terms whenever capitalized herein shall have the following   meanings:
  

	
  
 
  	
  
     (1)
  	
  
“Attorneys’ Fees” shall include the reasonable legal   fees and disbursements charged by attorneys and their related travel and   lodging expenses, court costs, paralegal fees, etc. incurred in arbitration,   mediation, settlement negotiations, discovery, trial, appeal, or bankruptcy   proceedings.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
     (2)
  	
  
“Person” shall mean any natural person, corporation,   partnership (general or limited), trust, association, or any other business   entity.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
     (3)
  	
  
“Subsidiaries” shall mean Federal Trust Bank and   Federal Trust Mortgage Corporation.
  

	
  
 
  	
  
            (c)          Headings for Reference Only:   The headings of the Sections and the Subsections herein are included   solely for convenient reference and shall not control the meaning or the   interpretation of any of the provisions of this Agreement.
  
	
   
  	
  
 
  
	
  
 
  	
  
            (d)          Governing Law/Jurisdiction:   This Agreement shall be construed in accordance with and governed by the   laws of the State of Florida. Any litigation involving the Parties and their   rights and obligations hereunder shall be brought in the appropriate court in   Seminole County, Florida.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
           (e)          Severability: If   any of the provisions of this Agreement shall be held invalid for any reason,   the remainder of this Agreement shall not be affected thereby and shall   remain in full force and effect in accordance with the remainder of its   terms.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
            (f)          Entire Agreement: This Agreement and all other documents incorporated or referred   to herein, contain the entire agreement of the Parties and there are no   representations, inducements, or other provisions other than those expressed   in this Agreement. No modification, waiver, or discharge of any provision or   any breach of this Agreement shall be effective unless it is in writing   signed by both Parties. A Party’s waiver of the other Party’s breach of any   provision of this Agreement, shall not operate, or be construed, as a waiver   of any subsequent breach of that provision or of any other provision of this   Agreement.
  
	
   
  	
  
 
  
	
  
 
  	
  
            (g)          Waiver: No course   of conduct by Employer or Employee and no delay or omission of Employer or   Employee to exercise any right or power given under this Agreement shall: (1)   impair the subsequent exercise of any right or power, or (2) be construed to   be a waiver of any default or any acquiescence in, or consent to, the curing   of any default while any other default shall continue to exist, or be   construed to be a waiver of such continuing default, or of any other right or   power that shall theretofore have arisen. Any power and/or remedy granted by   law and by this Agreement to any Party hereto may be exercised from time to   time, and as often as may be deemed expedient. All such rights and powers   shall be cumulative to the fullest extent permitted by law.
  

	
  
 
  	
  
            (h)          Pronouns:  As used herein, words in the singular   include the plural, and the masculine include the feminine and neuter gender,   as appropriate.
  
	
  
 
  	
  
 
  
	
   
  	
  
            (i)          Recitals:  The Recitals set forth at the beginning of   this Agreement shall be deemed to be incorporated into this Agreement by this   reference as if fully set forth herein and this Agreement shall be   interpreted with reference to and in light of such Recitals.
  

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

	
  
EMPLOYEE
  	
  
 
  	
  
FEDERAL TRUST CORPORATION
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  /s/ James V. Suskiewich
  	
  
 
  	
  
By:
  	
  
/s/ A. George Igler
  	
  
 
  
	
  

  	
  
 
  	
  
 
  	
  

  	
  
 
  
	
  
James V. Suskiewich
  	
  
 
  	
  
 
  	
  
A. George Igler
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
On behalf of the Board of Directors
  	
  
 
  

SCHEDULE A

Employee’s duties shall specifically include, but not be limited to:

	
  
 
  	
  
1.
  	
  
functioning as the Chief Executive Officer and   President of FTC, and as determined by the respective Boards of Directors of   Employer’s Subsidiaries as the Chief Executive Officer of the Bank, and the   Chief Executive Officer of FTMC;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
2.
  	
  
keeping FTC’s Board of Directors informed of   financial results of operations, the status of business, banking competition,   and new business developments;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
3.
  	
  
making recommendations to the Board on a wide range   of subjects, including: officer appointments and changes in organization,   loans, new or redesigned services, annual operating budget, salary and   benefit administration, and physical plan renovation;
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
4.
  	
  
meeting regularly with senior officers and other key   staff of Employer and its Subsidiaries to communicate policies and goals and   to delegate responsibility for daily operations and administration of   Employer and its Subsidiaries;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
5.
  	
  
participating in professional associations;   attending conventions, conferences, and seminars; and reading pertinent   publications;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
6.
  	
  
maintaining close industry relationships to be kept   aware of new services or opportunities that may increase the profits or   decrease the expenses of Employer and its Subsidiaries;
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
7.
  	
  
identifying and evaluating expansionary   opportunities for FTC;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
8.
  	
  
monitoring FTC’s capital position and needs, as well   as identifying and evaluating capital raising options;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
9.
  	
  
servings as the Investor Relation’s Officer of FTC;
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
10.
  	
  
serving as a member of such committees of FTC’s   Board of Directors as he may be appointed to; and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
11.
  	
  
conducting and undertaking all other activities,   responsibilities, and duties normally expected to be undertaken and   accomplished by the Chief Executive Officer and President of a financial   institution holding company similar in size and operation to FTC’s business.
  

SCHEDULE B

COMPENSATION

	
  
1
  	
  
Base Salary: Employee
shall receive an annual salary of $325,000 (the “Base Salary”).
Employer may adjust the Base Salary from time to time based upon the
Board’s evaluation of Employee’s performance. In no event, however,
will the Base Salary be reduced without Employee’s written
concurrence.
 
	
   
  	
  
 
  
	
  
2
  	
  
Vacation: Employee is
entitled to five weeks paid vacation time per year on a non-cumulative
basis.  Employer shall pay Employee, at the end of each fiscal year, his
regular daily rate of compensation, based on his Base Salary, for each day of
any unused vacation time.
 
	
  
 
  	
  
 
  
	
  
3
  	
  
Automobile
Allowance:  Employer shall provide Employee with an automobile
of like make and model as would be suitable to the character of Employee’s
position with Employer.  Employer shall reimburse Employee for the costs
associated with maintaining such automobile, including repairs completed at any
time during the term of this Agreement.  Employee shall relinquish
possession of the automobile to the Employer upon his termination for any
reason.
 
	
  
 
  	
  
 
  
	
  
4
  	
  
Performance Bonus: 
Employer shall pay Employee a Performance Bonus based upon the profitability of
Employer.  The executive will have a target opportunity of 40% of base
salary.  The target opportunity may fluctuate based on the performance of
the Bank. The Compensation Committee of the Bank will determine the performance
measures on a quarterly basis to be determined and paid within 30 days after the
release of each quarter’s financial statements.  For the 2006 fiscal
year, the Compensation Committee has decided to use Quarterly Return on
Assets, Net Income Growth, and other management objectives as the primary
performance measures.  Each performance criteria will be weighted as
follows:
 

	
  
Performance Measure Weighting
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Quarterly Return on Assets
  	
  
 
  	
  
 
  	
  
37.50
  	
  
%
  
	
  
Quarterly Net Income Growth
  	
  
 
  	
  
 
  	
  
37.50
  	
  
%
  
	
  MBO
  	
  
 
  	
  
 
  	
  
25
  	
  
%
  

	
  
 
  	
  
Each financial performance measure will have a   threshold, target, and maximum level of performance.  For each corresponding level of financial   performance, there will be a corresponding level of incentive payout.
  

	
   
 	
   
 	
  Quarterly   Return on Assets
  	
   
 	
  
Quarterly   Net Income Growth
  	
   
 
	
   
 	
   
 	
  

  	
   
 	
  

  	
   
 
	
   
 	
   
 	
  
Financial
   Goal
  	
   
 	
  
Payout
  	
   
 	
  
Financial
   Goal
  	
   
 	
  
Payout
  	
   
 
	
   
 	
   
 	
  

  	
   
 	
  

  	
   
 	
  

  	
   
 	
  

  	
   
 
	
  Threshold
  	
  
 
  	
  
 
  	
  
0.50
  	
  
%
  	
  
 
  	
  
18.75
  	
  
%
  	
  
 
  	
  
8
  	
  
%
  	
  
 
  	
  
18.75
  	
  
%
  
	
  
Target
  	
  
 
  	
  
 
  	
  
0.75
  	
  
%
  	
  
 
  	
  
37.50
  	
  
%
  	
  
 
  	
  
12
  	
  
%
  	
  
 
  	
  
37.50
  	
  
%
  
	
  Maximum
  	
  
 
  	
  
 
  	
  
0.85
  	
  
%
  	
  
 
  	
  
56.25
  	
  
%
  	
  
 
  	
  
15
  	
  
%
  	
  
 
  	
  
56.25
  	
  
%
  

	
  
 
  	
  
The balance of the incentive award (25% MBO   discretionary bonus) will be based upon qualitative management objectives   developed by the CEO and Compensation Committee.  The Compensation Committee will have discretion to “uptick” or   “downtick” this portion of the incentive award.
  
	
   
  	
  
 
  
	
  
 
  	
  
The Compensation Committee has the right to change   the number of performance measures, the type of performance measures, and the   weighting on each performance measure on an annual basis.
  

	
  
5
  	
  
Medical Benefits and Other
Plans: Employee shall be permitted to participate in all medical and
healthcare benefit plans provided by FTC to its officers. Employee shall also be
permitted to participate in all other benefit plans offered to Bank
officers.
 
	
  
 
  	
  
 
  
	
  
6
  	
  
Other Defined
Plans:  Employee shall be entitled to the benefits of the
Supplemental Retirement Plan in effect as of the day of the Effective Date of
the Employment Agreement dated October 1, 2005.
 
	
  
 
  	
  
 
  
	
  7
  	
  
Continuing Education:
Employer will reimburse Employee for admission or attendance fees for
pre-approved educational meetings or seminars offered by such organizations as
the Florida Bankers Association.
 
	
  
 
  	
  
 
  
	
  
8
  	
  
Change-in-Control
Payment: A “Change-in-Control” of the Employer shall mean
the first to occur of any one or more of the following:
 
	
  
 
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
any transaction, whether by merger, consolidation,   asset sale, recapitalization, reorganization, combination, stock purchase,   tender offer, reverse stock split, or otherwise, which results in the   acquisition of, or beneficial ownership (as such term is defined under rules   and regulations promulgated under the Securities Exchange Act of 1934, as   amended) by any person or entity or any group of persons or entities (other   than the group consisting of a majority of the directors currently serving on   the Board of Directors as of the date of this Agreement) “acting in concert,”   as contemplated by Section 225.41 of the Federal Reserve Board of Governors’   Regulation Y, of 25% or more of the outstanding shares of common stock of the   Employer;
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(b)
  	
  
the sale of all or substantially all of the assets   of the Employer;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
the liquidation of the Employer or a material amount   of Employer’s assets;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(d)
  	
  
a change in the majority of the members of the Board   of Directors of Employer, other than through new directors nominated or   appointed by the Employer’s Nominating and Corporate Governance Committee or   Board of Directors; or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(e)
  	
  
the takeover or control of all or substantially all   of the operations of Employer, through any of the means specified above.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
Upon the occurrence of a Change-in-Control, as   defined in this Schedule B, Employer shall pay to Employee a lump sum equal   to 2.5 times his base salary and last fiscal year bonus.   
  
	
  
 
  	
  
 
  
	
  
9
  	
  
Change-in-Control Performance
Bonus:  Employee shall be entitled to receive a performance
bonus upon a Change-in-Control (as defined in Paragraph 8 of this Schedule B) of
FTC, which shall be equal to 3 times the premium multiple paid over book value
for FTC, times $250,000.
 

	
  
10
  	
  
Excise Tax Gross-up
Payment:  In the event that Employee becomes entitled to
severance benefits as provided under Section 6 or the Change-in-Control Payment
or Performance Bonus  provided in this Schedule B (collectively
referred to as “severance payments”) and such severance payments are
subject to the tax imposed by Section 4999 of the Internal Revenue Code of 1986,
as amended (the “Excise Tax”), or any other similar tax that may
hereafter be imposed, the Employer shall pay to Employee in cash an additional
amount (the “Gross-Up Payment”) such that the net amount retained by
the Employee after deduction of (i) any Excise Tax and (ii) any federal, state,
and/or local income tax and Excise Tax incurred on the Gross-Up Payment shall be
equal to an amount such that the Excise Tax payable and any additional income
taxes incurred on the Gross-Up Payment will be apportioned 75% to the Employer
and 25% to the Employee.  For purposes of determining whether the severance
payments will be subject to the Excise Tax and the amounts of such Excise
Tax:
 
	
   
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
Any payments or benefits received or to be received   by Employee in connection with a Change-in-Control of FTC shall be treated as   “parachute payments” within the meaning of Section 280G(b)(2) of the Internal   Revenue Code (“Code”), and all “excess parachute payments” within the meaning   of Code Section 280G(b)(1) of the Code shall be treated as subject to the   Excise Tax, unless in the opinion of tax counsel selected by FTC’s   independent auditors and acceptable to Employee, such other payments or   benefits (in whole or in part) do not constitute parachute payments, or   unless such excess parachute payments represent reasonable compensation for   services actually rendered within the meaning of Code Section 280G(b)(4) in   excess of the base amount within the meaning of Code Section 280G(b)(3), or   are otherwise not subject to the excise tax;
  
	 	 	 
	
  
 
  	
  
(b)
  	
  
The amount of the severance payments which shall be   treated as subject to the Excise Tax shall be equal to the lesser of (1) the   total amount of the severance payments; or (2) the amount of excess parachute   payments within the meaning of Code Section 280G(b)(1) (after applying clause   [a] above); and
  
	 	 	 
	
  
 
  	
  
(c)
  	
  
The value of any non-cash benefits or any deferred   payment or benefit shall be determined by Employer’s independent auditors in   accordance with the principles of Code Sections 280G(d)(3) and (4). The base   amount shall be determined by Employer’s independent auditors in accordance with   the principles of Code Section 280G(d)(3).
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
For purposes of determining the amount of the   Gross-Up Payment, Employee shall be deemed to be paying federal income taxes   at the highest marginal rate for federal income taxation in the calendar year   in which the Gross-Up Payment is to be made, and any state and local income   taxes at the highest marginal rate in the state and locality as Employee’s   residence on the Effective Date of employment, net of the maximum reduction   in federal income taxes, which could be obtained from deduction of such state   and local taxes. 
  

	
  
11
  	
  
Bank Owned Life Insurance
(“BOLI”): Employee is covered by a Salary Continuation
Agreement that provides for differing levels of annual benefits to be paid for
life upon Employee’s termination of employment due to early or normal
retirement, disability or a change of control of Employer. Annual benefit
payments are generally based on an amount equal to the lesser of (a) 60% of
Employee’s actual annual salary in the year of termination, or (b)
$290,400.  Early retirement, disability or death benefits are subject to a
5% reduction (or 3% of annual salary for computational purposes) for each year
prior to Employee attaining age 62.  Death benefits payable in either 15
annual installments or a present value lump sum payment are also provided for
the benefit of Employee’s family, and 80% spousal benefits are payable for
life to Employee’s wife, if she survives Employee after retirement,
disability or change of control benefit payments have commenced. 
Employer’s funding liability for these benefits are covered by the cash
value investments in Bank Owned Life Insurance (BOLI) policies, which are held
by the Employer in a revocable grantor trust arrangement designed to secure
payment of Employee’s benefits.

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