Document:

f8k121913ex10i_mopalscominc.htm

Exhibit 10.1

 

	CONFIDENTIAL	 

 

December 19, 2013

Relativity Sports, LLC

345 North Maple Drive, Suite 205

Beverly Hills, CA 90210

Attention: Josh Swartz

	
Re:

	
Letter of Intent regarding proposed relationship between MoPals.com, Inc. and Relativity Sports, LLC

Dear Mr. Swartz,

MoPals.com, Inc. (“MoPals”) is interested in entering into a relationship with Relativity Sports, LLC (“Relativity”), whereby Relativity will provide certain services in connection with its athletes’ participation in endorsing MoPals’ brand (the “Proposed Relationship”).

This letter of intent establishes a framework for the Proposed Relationship and is intended to facilitate the negotiation of a definitive agreement between MoPals and Relativity on the terms and conditions outlined in Schedule “A” attached hereto, in addition to customary representations, warranties, covenants and conditions (the “Definitive Agreement”).  This letter of intent is an expression of the present intention of the parties to explore the Proposed Relationship.  Except for the obligations set forth in paragraphs 1 through 6 hereof, which are intended to be legally binding, no other liability or obligation of any nature is intended to be created hereby.  For greater certainty the terms proposed in Schedule “A” and Schedule “B” are not binding on the parties hereto.

	
1.

	
Exclusive Dealing

In consideration of MoPals incurring substantial time, effort and expense in investigating and evaluating the Proposed Relationship, Relativity agrees that for the period from the date first written above up to and including 60 calendar days (the “Exclusivity Period”):

(a)    Relativity and MoPals shall deal exclusively with each other in connection with the Proposed Relationship; and

(b)    Relativity and MoPals shall not, directly or indirectly, whether through any of their respective officers, directors, partners, employees, shareholders, affiliates, agents or other representatives encourage or solicit any offers, inquiries or proposals by, or engage in any discussions or negotiations with, any person concerning the Proposed Relationship.

  

  

  

 

	CONFIDENTIAL	 

 

	
2.

	
Facilitation of Player Negotiations

Relativity accepts that MoPals will enter into negotiations with some of Relativity’s athletes with the objective of entering into definitive agreements for the endorsement of MoPals’ loyalty program and social media network (“Endorsement Agreements”) during the Exclusivity Period.  The parties hereto acknowledge that the Endorsement Agreements will contain terms similar to those listed in Schedule “B” attached hereto.

Relativity agrees to facilitate the negotiations between MoPals and its athletes in relation to the Endorsement Agreements during the Exclusivity Period.  Mopals shall negotiate exclusively through Relativity with regards to the Endorsement Agreements.

	
3.

	
Confidentiality

“Confidential Information” as used in this letter of intent shall mean all information disclosed by the one party hereto (the “Disclosing Party”) to the other (the “Receiving Party”), regardless of whether it is marked confidential or whether it is conveyed in writing or orally, that relates to the business, property or services of the Disclosing Party and its business partners, affiliates or clients, including, without limitation, business books, business records, financial information, trade secrets, identity of business contacts, intellectual property rights, know-how, marketing information, competitive plans, and strategies.

Confidential Information shall not include information that: (i) is, or at any time becomes, part of the public domain other than by a breach of this letter of intent or by a third party’s breach of any confidentiality obligation in respect of the Confidential Information; (ii) becomes available to the Receiving Party on a non-confidential basis from a source other than the Disclosing Party, provided that the source is not bound with respect to that information by a confidentiality agreement with the Receiving Party or its clients or is otherwise prohibited from transmitting that information by a contractual, legal or other obligation; (iii) was in the Receiving Party’s possession prior to disclosure of the same by the Disclosing Party; or (iv) has been disclosed by the Disclosing Party to a third party who is not obligated to protect such information as confidential.

The Receiving Party agrees to not use any Confidential Information for any reason during the Exclusivity Period other than for investigating, evaluating and negotiating the Proposed Relationship and any Endorsement Agreements with Relativity’s athletes.

The Receiving Party shall not disclose the Confidential Information to any third party, excluding Relativity’s clients and both parties’ advisors on the Proposed Relationship, without the prior written consent of the Disclosing Party and will protect such information from being disclosed to any third party, except those mentioned above, for a period of three years after the termination of the Exclusivity Period.

All Confidential Information shall be and remain the property of the Disclosing Party and shall be destroyed or returned by the Receiving Party to the Disclosing Party upon written request.  If the Receiving Party is requested or required by judicial, administrative or regulatory process to disclose any Confidential Information, the Receiving Party shall promptly notify the Disclosing Party of such request or requirement, so that the Disclosing Party may seek an appropriate protective order. This paragraph 3 shall survive the termination of this letter of intent and any termination of the negotiation period by either party hereto.

 

  

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	CONFIDENTIAL	 

 

	
4.

	
No Publicity

Except as required by law, no public announcement or press release concerning the Proposed Relationship shall be made by either party hereto without the prior mutual written consent of the parties hereto, except as required by securities law.

	
5.

	
Termination of Negotiation Period

Each of the parties hereto is free to withdraw from further discussions and negotiations at any time and for any reason prior to the execution of the Definitive Agreement by giving fifteen days’ written notice to the other.

	
6.

	
Transaction Costs

Each of the parties hereto shall bear its own costs relating to the Proposed Relationship, the Definitive Agreement, Endorsement Agreements and any matter related thereto or to this letter of intent, unless otherwise agreed to in the aforementioned Agreements.

 

	
7.

	
Schedules

 

MoPals and Relativity acknowledge and agree that the terms and conditions in Schedule “A” and Schedule “B” reflect their current understanding of the contemplated relationship but they do not constitute a legally binding or enforceable agreement.

If Relativity agrees with the foregoing, please deliver a signed copy of this letter to the undersigned.

	  	
Yours truly,

	  	  
	  	
MOPALS.COM, INC.

	  	  	  
	  	
By:

	  
	  	
Name:

	
Alex Haditaghi

	  	
Title:

	
CEO

 

  

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	CONFIDENTIAL	 

 

Agreed to as of the date first written above:

	  	
RELATIVITY SPORTS, LLC

	  	  	  
	  	
By:

	  
	  	
Name:

	
Josh Swartz

	  	
Title:

	
President

 

  

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	CONFIDENTIAL	 

 

SCHEDULE “A”

NON-BINDING TERMS AND CONDITIONS OF THE PROPOSED RELATIONSHIP

	
1.

	
Definitions.

All capitalized terms used in this Schedule “A”, which are undefined, shall have the meaning given to that term in the letter of intent to which this Schedule “A” is attached.

	
2.

	
Covenants of Relativity.

Relativity will provide consulting services to MoPals, including with respect to a capital raise and product placement in movies for MoPals related merchandise, as well as general marketing of the MoPals brand and assistance negotiating Endorsement Agreements with Relativity’s athletes.

	
3.

	
Covenants of MoPals.

MoPals will dedicate social media strategists, creative designers and software and web engineers to assist Relativity and its clients in growing its social media exposure on Facebook, Twitter, MoPals and all new and upcoming platforms.

	
4.

	
Announcement and Launch Period.

The parties will announce their relationship on a mutually agreeable date, currently set at [February 1, 2014], but in no case shall the announcement occur prior to the full execution of the Definitive Agreements and Endorsement Agreements unless otherwise required by securities law.

The launch period of the relationship will begin on [February 14, 2014] and end on [May 14, 2014], or such other dates as mutually agreed by the parties hereto.

	
5.

	
Dedicated Contacts.

Relativity and MoPals will each provide dedicated contacts to manage the relationship.

	
6.

	
Board of Directors.

MoPals will appoint an executive officer of Relativity to its board of directors.

	
7.

	

Share Subscription.

MoPals will issue 3,000,000 shares to Relativity (these shares shall be in addition to any shares issued to Relativity’s athlete clients) upon execution of the Definitive Agreement and Endorsement Agreements with each of the athletes listed in section 5 of Schedule “B”.

Proposed details for equity:

	
  

	
-

	
1 million shares vested at the beginning of each contract year for 3 years

	
  

	
-

	
After vest period, shares are eligible to be sold

	
  

	
-

	
No dilution provision

	
  

	
-

	
If MoPals is acquired, sold, merged, reorganized, etc. where a new entity or person controls the majority of the outstanding voting securities, the full share allotment is deemed to be earned

 

  

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	CONFIDENTIAL	 

 

	
8.

	
Exclusivity.

MoPals will not enter into a relationship with any other sports agency or athlete management company in connection with an endorsement by such agency’s athletes during the term of the Definitive Agreement.

Relativity will not enter into an endorsement relationship with any third party loyalty programs that may be in competition with MoPals or that may involve the promotion of or generation of sign-ups for third party social media sites and networks.

Relativity will not facilitate its athletes’ endorsement or promotion of any third party loyalty programs that may be in competition with MoPals or that may involve the promotion of, or the generation of, sign-ups for third party social media sites and networks.

	
9.

	
Term and Termination.

The term of the agreement is set to begin on [February 1, 2014] and to end on [February 1, 2017] unless amended by mutual agreement of the parties hereto.

	
10.

	
Condition of Closing.

The execution of one or more of the Endorsement Agreements is a condition precedent to the execution of the Definitive Agreement.

 

  

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	CONFIDENTIAL	 

 

SCHEDULE “B”

TERMS AND CONDITIONS OF ENDORSEMENT AGREEMENTS

[REDACTED]

 

7Unassociated Document

Exhibit 10.5

 

Employment Contract

BETWEEN:  Laifeng Anpulo (Group) Food Development Co., Ltd., a company legally incorporated under the laws of People’s Republic of China, having a mailing address at Hangkong Road, Xiangfeng Town, Laifeng County, Hubei, acting and represented herein by Mr. Wenping Luo, Legal Representative, declaring duly authorized, (hereinafter called the "COMPANY")

 

AND:   Mr. Wenping Luo, residing at 39 Fengshan Road, Xiangfeng Town, Laifeng County, Hubei, (hereinafter called the “EMPLOYEE ")

 

(COMPANY and EMPLOYEE hereinafter collectively called "Parties")

WHEREAS:

 

COMPANY requires the services of EMPLOYEE as President and CEO;

 

EMPLOYEE agreed to provide COMPANY his full-time services as President and CEO;

 

the parties wish to confirm their agreement in writing;

 

the parties have the capacity and quality of exercise all the rights necessary for the conclusion and implementation of the agreement found in this contract;

 

THEREFORE THE FOREGOING, THE PARTIES AGREE AS FOLLOWS:

 

1. Employment

EMPLOYEE agrees to assume full-time for COMPANY (minimum of forty (40) hours per week) the role of president and CEO during the entire duration of the contract;

2. Term

 

This contract is for an initial term of 36 months, namely from December 1, 2013 to November 30, 2016, renewable for an additional period of 24 months unless either party terminates it in writing at least sixty (60) days before the expiration of the initial term;

 

  

  

  

 

3. Responsibilities

 

EMPLOYEE agrees and undertakes to COMPANY to the following: The services must be made full time in a professional manner, according to the rules generally accepted by industry.

 

3.1 Shall be subject to regulatory oversight of the Board, and shall take overall responsibility for the production, operation and management of the COMPANY, to ensure the safety of production, effective management and the preservation and appreciation of assets.

 

3.2 Shall be strictly compliance with laws, regulations and financial and accounting system, drafting plans on the establishment of the COMPANY’s internal management departments and basic management system of the COMPANY.

 

3.3 Unless agreed by the boards, shall not make change to the legal representative, company name, business scope of the company.

 

3.4 Unless agreed by the boards, shall not dispose the property of the COMPANY, including but not limited to transfer, selling off, mortgaging, pledge, leasing or giving out.

 

3.5 If the COMPANY needs to ask for a loan, consent of the broad shall be made.

 

3.6 Shall not provide external guarantee in the name of the COMPANY.

 

3.7 Shall regularly submit factual financial reports to the boards.

 

3.8 Deciding on the hiring or dismissing of the persons-in-charge other than those who shall be decided by the boards.

 

3.9 Performing other responsibility granted by the articles of association or the boards.

 

4. CONSIDERATION

 

4.1 Service Awards

 

In consideration of the provision of services, COMPANY to pay EMPLOYEE, as compensation;

 

The gross amount of RMB 240,000.00 annually calculated at the rate of twelve (12) equal monthly installments consecutively of RMB20, 000.00 each.

   

4.2 Expenditure incurred

 

COMPANY will reimburse EMPLOYEE all reasonable expenses incurred in connection with this Agreement, upon presentation of appropriate documentation. The date of reimburse EMPLOYEE shall be 24th of each month.

 

  

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5. Commitment to confidentiality and nondisclosure

 

EMPLOYEE recognizes that certain disclosures to be provided by COMPANY have or may have considerable strategic importance, and therefore represent trade secrets for purposes of this contract. During the term of this Contract and for a period of 36 months following the end of it, EMPLOYEE is committed to COMPANY to:

 

a) keep confidential and not disclose the information;

 

b) take and implement all appropriate measures to protect the confidentiality of the information;

 

c) not disclose, transmit, exploit or otherwise use for its own account or for others, elements of information;

 

6. Exclusivity of service provider

 

During the term of this Contract and for a period of 24 months following the end of it, EMPLOYEE is committed to COMPANY not render services to or for direct or indirect competitors of COMPANY.

 

7. Termination of Contract

 

Either party may terminate this contract at any time, upon presentation of a sixty (60) days notice given to the other party.

8. GENERAL PROVISIONS

 

Unless specific provision to the contrary in this Agreement, the following provisions apply.

 

8.1 Force Majeure

 

Neither party can be considered in default under this contract if the performance of its obligations in whole or in part is delayed or prevented by following a force majeure situation. Force majeure is an external event, unforeseeable, irresistible and it absolutely impossible to fulfill an obligation.

 

  

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8.2 Severability

 

The possible illegality or invalidity of an article, a paragraph or provision (or part of an article, a paragraph or provision) does not in any way affect the legality of other items, paragraphs or provisions of this contract, nor the rest of this article, this paragraph or provision unless a contrary intention is evident in the text.

 

8.3 Notices

 

Any notice to a party is deemed to have been validly given if in writing and sent by registered or certified mail, by bailiff or by courier to such party at the address listed at the beginning of this contract or any other address that the party may indicate a similar notice to another party. A copy of any notice sent by mail must be sent by one mode of delivery mentioned above.

 

8.4 No Waiver

 

The inertia, neglect or delay by any party to exercise any right or remedy under this Agreement shall in no way be construed as a waiver of such right or remedy.

 

8.5 Contract Amendment

 

This contract may be amended only by a writing signed by all parties.

 

9. Applicable Laws and Election of domicile

 

This contract is subject to the laws of the People’s Republic of China.

 

The parties agree to elect domicile in the judicial district of Laifeng County, Hubei,China, and chose it as the appropriate district to hear any claim arising from the interpretation, application, and performance, the entry into force, validity and effect of this contract.

 

10. Currencies

 

All sums of money under this contract refer to Chinese currency.

11. Effectiveness and Copies

 

This contract will come into force upon signature and seal by both parities. This contract is made in duplicate and both are of equally binding force. The COMPANY and the EMPLOYEE each holds one copy.

 

  

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IN THE CITY OF LAIFENG, HUBEI PROVINCE, 

December 1st, 2013

	 	 
	

/s/ Laifeng Anpulo (Group) Food Development Co., Ltd.

	 
	

Laifeng Anpulo (Group) Food Development Co., Ltd.

	 
	 	 
	/s/ Wenping Luo	 
	
Wenping Luo

	 

 

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