Document:

Exhibit 10.1

 

 

 

Employment Contract

 

This Employment Contract of Chief Financial
Officer (this “Contract”) is entered into by and between the following parties as of August 1, 2013 in Wuxi, the People’s
Republic of China (the “PRC”).

 

Party A: Comjoyful International Company

Address: J4-2-12, Diplomatic Residence
Compound, No.1 Xiushui Street, Jianguomen Wai, Chaoyang District, Beijing 100600, China

 

Party B: G. Michael BENNETT

Home Address:

20 Edelweiss

Rancho Santa Margarita, California

USA 92668

ID/Passport Number:

 

 

Chapter 1- General Provisions

 

		1.	Pursuant to the PRC Labor Law (hereinafter the “Labor Law”), the PRC Employment Contract
Law (hereinafter the “Employment Contract Law”) and other relevant regulations, in consideration of the mutual promises
and covenants made herein, and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged,
Party A and Party B (collectively referred to as the "Parties") hereby agree as follows:

 

Chapter 2- Term

 

		2.	This Contract shall be a contract with a fixed term of 6 months, from August 1, 2013 ("Starting
Date") to January 31, 2014.

 

Chapter 3- Scope of Work

 

		3.	Party B agrees to assume the position of Chief Financial Officer on a part time basis. The position
duty as prescribed by Exhibit A. The main work location of Party B shall be Corporate Headquarters in Wuxi, PRC.

 

Chapter 4- Duties of Party B

 

		4.	Party B hereby agrees that, in addition to the duties and responsibilities otherwise set forth
herein, during the term of this Contract, Party B shall:

 

perform his/her duties hereunder
faithfully and diligently to the overall satisfaction of Party A in accordance with the terms hereunder, the rules and policies
of Party A and the applicable laws and regulations, engage in no activities which are in violation of any PRC laws or regulations
or may be prejudicial to the interests of Party A, and seek no personal gains, directly or indirectly, by utilizing his/her position
or power in Party A.

 

    	1

    	 

    

 

Chapter 5- Remuneration

 

5.1 The agreed remuneration is to be at the
rate of 30,000 rmb per month prior to the merger into the shell. Party A shall pay airfare for commuting between Beijing and Wuxi.

 

5.2 Party B shall be responsible for the payment
of due and payable individual income tax resulting from the salary and other remuneration paid by Party A in accordance with the
relevant PRC laws and regulations. Party A, as the withholding person, shall withhold the individual income tax and other due and
payable tax of Party B prior to paying the remuneration to Party B as required by law.

 

Chapter 6- Insurance, Welfare
and Leave

 

6. The Parties shall pay premiums for
social security insurance schemes such as Pension, Unemployment, Medical Insurance, etc. in accordance with the relevant PRC
laws and regulations.

 

Chapter 7- Confidentiality

 

7. Party B shall keep the proprietary
and confidential information of Party A confidential and shall abide by any confidentiality rules set forth by Party A. Party
B shall not take, use of or disclose any material or information of Party A to any third party except on behalf of Party A's
and with Party A's prior written consent. Party B shall, at the request of Party A, execute and abide by the Confidentiality
and Non-Competition Agreement in substance and form attached hereto as Appendix III (the "Confidentiality
Agreement"). Where Party B breaches the competition restriction obligation under the Confidentiality Agreement, Party B
shall pay liquidated damages to Party A in accordance with the Confidentiality Agreement.

 

Chapter
8- Modification, Termination and Extension of the Employment Contract

 

8.1 This Contract may be terminated upon mutual
agreement between Party A and Party B in writing.

 

8.2 Party A may terminate this Contract by
serving 30 days' prior written notice to Party B or giving Party B one month’s salary in lieu of notice in any one of the
following circumstances:

 

		(i)	where Party B, after undergoing a legally prescribed period of medical treatment and recuperation
for an illness or a non-work-related injury, remains unable to carry out the original job, and is also unfit for the job otherwise
assigned to Party B by Party A;

 

		(ii)	where this Contract cannot be performed due to any major changes of any objective circumstances
under which this Contract was concluded, and following consultation, Party A and Party B cannot agree upon the necessary modification
to be made to this Contract.

 

    	2

    	 

    

 

		8.3	The term "major changes of any objective circumstances" stipulated includes but not limited
to:

 

		(i)	Merger of Party A into another business entity, or sale or transfer by Party A of substantial portion
of the assets it owns to other enterprises or third parties;

 

		(ii)	Declaration of bankruptcy, dissolution or liquation by Party A;

 

		(iii)	Laws or regulations newly promulgated by the government that makes either Party or both Parties
not able to perform this Contract.

 

		8.4	Party B may resign his job and terminate this Contract during the Contract term with a prior written
notice of 30 days to Party A.

 

8.5 Upon the termination of this Contract,
Party B shall cease conducting any activities on Party A's behalf or complete the uncompleted matters pursuant to Party A's request,
and settle all accounts with Party A. Party B shall, within 3 days of the termination of this Contract, return all the property
and hand over all files and documents (including but not limited to written documents and electronic documents) he has in his possession
but is the property of Party A, and Party A may carry out the resign procedures with the confirmation of the aforesaid properties,
files and documents and issue resign consent letter .

 

Chapter 9- Economic Compensation
and Repayment

 

		9	Party A shall provide economic compensation and/or medical subsidies to Party B pursuant to relevant
laws and regulations in case Party A terminates this Contract .

 

Chapter 10- Settlement of Labor
Disputes

 

		10	This Agreement shall be governed by the laws of the PRC. Any dispute arising out of the interpretation
and performance of this contract shall be settled through friendly consultation between the Parties. If the parties fail to reach
a solution through friendly consultation, one or both parties can bring such dispute to the competent Labor Dispute Arbitration
Commission in accordance with law. In case the parties have no disagreement to the arbitral award of such Labor Dispute Arbitration
Commission, such arbitral award is final and binding upon the Parties. In case any party is not satisfied with the decision of
the arbitration, the party may bring a lawsuit to the court having jurisdiction, unless otherwise stipulates by law.

 

Chapter 11- Miscellaneous

 

		11	Party B has been aware of and agreed to abide by the Working Rules, which will be provided to Party
B from time to time, and shall be of the same legal validity with this Contract. However, this Contract shall prevail in the event
of any conflict between the Working Rules and this Contract.

 

		12	Party A may at its own discretion request Party B to enter into a Confidentiality and Non-competition
Agreement.

 

    	3

    	 

    

 

		13	The invalidity and non-enforcement of any provision of this Contract shall not affect the validity
of any other provision of this Contract.

 

		14	Failure or delay of any Party hereto to exercise a right under this Contract shall not constitute
a waiver thereof.

 

		15	If there is any conflict between this Contract and the relevant laws and/or regulations, the provisions
of the relevant laws and/or regulations shall prevail.

 

		16	This Contract shall become effective from the date of the execution hereof.

 

		17	This Contract is written in both Chinese and English. If the event of any conflict, the English version
shall prevail.

 

 

    	4

    	 

    

 

  

	
        Party
        A: Comjoyful International Company

         

        By: /s/ Yazhong Liao 

         

        Name: Yazhong Liao

         

        Date: August 9, 2013

         
	
        Party B: Gene Michael Bennett

         

        By: /s/ Gene Michael Bennett
        

         

        Date: August 9, 2013

         

 

 

 

 

 

    	 

    	 

    

 

Appendix A

Description
of Responsibilities 

 

 

A brief summary of my responsibilities
include:

 

•Ensuring that the company's financial
statements are accurate, complete and filed on a timely basis as required by regulators such as the SEC;

 

•Developing, maintaining and monitoring
the accounting and financial systems in accordance with USA GAAP and Chinese GAAP;

 

•Ensuring strong and acceptable
Internal Controls as required by the SEC and SOX 404 and other international and requirements;

 

•Assisting in determining cash
flow to ensure the company’s health, viability and ability to take advantage of opportunities;

 

•Assisting with the company’s
projects and their oversight and management;

 

•Establishing a high degree of
Corporate Governance to assist in the development of the company and in its international reputation;

 

•Utilizing my Chinese, USA and
European connections and professional relations to the benefit of the company, this incudes my relations with attorneys, CPAs,
investors, and governmental regulators such as the SEC.Convertible Note Financing Agreement

 

August 14, 2013

 

This Convertible Note Financing Agreement
(this “Agreement”) sets forth all principal terms of a business transaction between Mandalay Digital Group,
Inc., a Delaware corporation (“Issuer”), and Taja, LLC (“Investor”).

 

For good and valuable consideration, the
parties hereto hereby agree as follows:

 

	Securities Issuance:	 	The Investor hereby subscribes for, and the Company hereby promises to issue to Investor in accordance with this Agreement, 80,000 shares (the “Closing Shares”) of the Issuer’s fully paid, duly authorized and non-assessable shares of its common stock (par value $0.0001 per share) (“Common Stock”) and warrants to purchase 120,000 shares of Common Stock, having the terms described below under “Warrants” (the “Warrants”).  In addition, the Investor is converting certain debt securities into additional shares of Common Stock (the “Conversion Shares”) on the terms described below under “Conversion of Unsecured Note.”  The Closing Shares, the Warrants and the Conversion Shares are all referred to herein as the “Securities”, and the Securities shall be delivered as soon as practicable following the date hereof at the offices of the Issuer by delivery of physical certificates or such other manner of delivery as the parties agree.  The Closing Shares and Warrants are restricted under the securities laws and shall bear standard Securities Act of 1933 legends.  The Investor hereby represents that (a) it is an accredited investor as that term is defined in Regulation D under the Securities Act of 1933, (b) it is purchasing for investment purposes only and not with a view to a distribution and (c) it owns and has not transferred or assigned any interest in the Unsecured Note, the Secured Note or the warrants previously issued to Investor as set forth herein.  Except as set forth in this Agreement, no representations or other agreements are made by either party in connection with the transactions contemplated hereby.
	 	 	 
	 	 	The Investor shall have the following registration rights with respect to the Closing Shares, the shares underlying the Warrants and the 50,000 shares of common stock issued as consideration for the consent granted by the Investor in the MIA acquisition (the “Registrable Securities”): the Company shall file a registration statement on Form S-3 (the “Registration Statement”) not later than August 31, 2013 covering the resale of the Registrable Securities and shall use its best efforts to cause such registration statement to be declared effective as soon as practicable thereafter.

 

    	 

    	 

    

 

	 	 	In addition, if the Company and Investor in their respective discretion agree for the Company to issue the Investor additional securities as consideration or in exchange for securities already owned by the Investor (“Exchange Securities”), and if such Exchange Securities are not issued in compliance with Section 3(a)(9) under the Securities Act, then the Company shall agree to either file (i) a post-effective amendment to the Registration Statement or (ii) a new registration statement on Form S-3, in each case within 30 days of the closing of such new issuance of Exchange Securities and covering the resale of such securities, and use its best efforts to cause such registration statement to be declared effective by the SEC as soon as practicable after the filing thereof.  
	 	 	 
	 	 	In each case of the Company’s registration obligations above: (i) the Investor will reasonably cooperate, including providing customary selling stockholder questionnaires as a condition to inclusion, (ii) registrable securities (under either paragraph above) shall cease to be such when they all can be sold under Rule 144 in a three month period without limitation or under 3(a)(9), or once they have been sold, or after a period of 3 years from the date the registration statement is first declared effective (plus the additional period extending such 3 year period equal to the sum of all periods of blackout periods noted in clause (iv) below); (iii) if Form S-3 is not available then the Company shall instead use Form S-1; and (iv) the Company may suspend the use of the Registration Statement not more than one 45 day period in any 12 month period if the Company’s CEO certifies that doing so is necessary to avoid material detriment to the Company.
	 	 	 
	Conversion of Unsecured Note:	 	On the date hereof, $1,000,000.00 of the outstanding principal amount of the Unsecured Note is hereby converted into 285,714 Conversion Shares and the remaining principal of $180,000 and unpaid interest of $55,977 (in the amount of $239,977, and referred to as the “Exchange Amount”) is hereby exchanged for a like amount of additional Secured Notes as described in the next section.  Accordingly, the Unsecured Note is on the date hereof deemed to be repaid in full through a combination of conversion and exchange as set forth in this section.  The term “Unsecured Note” means that certain unsecured subordinated convertible note the terms of which are reflected in that certain Convertible Note Financing Binding Term Sheet dated December 29, 2011 as amended by that certain Convertible Note Financing Binding Term Sheet dated March 1, 2012.  
	 	 	 
	Increase of Principal of Secured Note: 	 	On the date hereof, the principal amount of the Secured Note is hereby increased by the Exchange Amount.  The new current remaining balance of principal and interest under the Secured Note as of the date hereof shall be $1,537,529.  The term “Secured Note” means that certain Second Amended and Restated Senior Subordinated Secured Note Due June 21, 2013 between Twistbox Entertainment, Inc., a subsidiary of the Issuer, and the Investor, as amended by those certain binding term sheets dated December 29, 2011 and March 1, 2012 between the Issuer and Investor.  Other than as expressly set forth in this Agreement (including the next section), the terms of the Secured Note shall remain in full force and effect.  

 

    	2

    	 

    

 

	Convertibility of Secured Note:	 	A new Section at the very end of the Secured Note is hereby added as of the date hereof as follows: “Notwithstanding anything herein to the contrary, this Note may, upon 10 days prior written notice to the Issuer, be converted into shares of Common Stock of Issuer, at a conversion price equal to $4.00 per share (subject to proportional adjustment for stock splits, stock dividends and the like occurring after the date hereof) at the Investor’s option at any time through the maturity date of the Secured Note, provided, however, notwithstanding the foregoing, the conversion rights shall effective immediately be deemed limited by a customary and reasonable beneficial ownership blocker set at 4.9% of the Issuers outstanding shares, all as measured in accordance with the applicable Rule 13d-3 standards.  If this Note is converted, the closing shall occur in a reasonable time, place and manner after the effective date of the conversion.”
	 	 	 
	 	 	The parties shall negotiate a long form of the above-referenced beneficial ownership blocker in good faith within 30 days but such short form blocker shall remain in effect until superseded by agreement.
	 	 	 
	Warrant Coverage:	 	
        The Warrant shall have an exercise price equal to the same price
        paid per share for shares of the Issuer’s Common Stock in the Issuer’s next round of equity financing, or, if no equity
        financing has occurred by September 9, 2013, the closing price of the Issuer’s Common Stock on such date on the Nasdaq Capital
        market. The Warrant shall have a five (5) year term from the date of the issuance and may be exercised by the Investor only following
        the first anniversary of the date hereof. The Warrants shall be in substantially the form of the most recent warrants issued by
        the Issuer to outside investors, modified only to reflect the specific terms herein. For purposes of determining the price paid
        for the Issuer’s Common Stock in the next equity financing, the price of the Common Stock issued in such financing shall
        be deemed to be aggregate gross proceeds raised divided by the number of shares of Common Stock issued at the closing, irrespective
        of any warrants.

         

	Existing Note Warrants:	 	The warrants described under the heading “Existing Note Warrant” in the term sheet dated December 29, 2011 shall vest and be exercisable February 4, 2014, and shall have a six (6) year term from the date of original issuance.  All other aspects of these warrants shall otherwise remain unchanged.  
	 	 	 
	 	 	The warrants described under the heading “Warrant Coverage” in the term sheet dated December 29, 2011 shall vest and be exercisable February 4, 2014, and shall have a six (6) year term from the date of original issuance.  All other aspects of these warrants shall otherwise remain unchanged.  
	 	 	 
	 	 	The section of the March 1, 2012 term sheet entitled “Warrant Coverage” is hereby deleted.  

 

    	3

    	 

    

 

	Prepayment Rights and Obligations: 	 	Issuer may prepay the Secured Note, in whole or in part, without penalty at any time upon 10 days’ prior notice to Investor.  
	 	 	 
	 	 	In addition, the obligation of the Issuer to prepay the Secured Note described under the heading “Existing Note Prepayment” in the binding term sheet dated March 1, 2012 shall be amended and restated in its entirety to read in full as follows:
	 	 	 
	 	 	In the event of the consummation of any sale by Issuer of the equity securities of Issuer that generates net proceeds to Issuer, when combined with the aggregate net proceeds generated by any and all previous equity sales occurring from and after the date of the March 1, 2012 Term Sheet of at least $10,000,000, Issuer shall give Investor written notice thereof (a “Notice of Receipt of Proceeds”) within five business days of such consummation.  The Notice of Receipt of Proceeds shall (a) state the aggregate net proceeds generated from the most recent equity sale and all previous equity sales occurring from and after the date of the March 1, 2012 Term Sheet and (b) set forth, if full prepayment in cash of all then outstanding principal and accrued and unpaid interest under the Secured Note is not tendered contemporaneously with the Notice of Receipt of Proceeds, a request by Issuer that Investor refrain from accelerating the Secured Note.  Upon receipt of any Notice of Receipt of Proceeds, and for a period of 30 days thereafter, Investor shall have the right, notwithstanding any request by Issuer to the contrary, to elect that all outstanding principal and accrued and unpaid interest under the Secured Note be accelerated and become immediately due and payable by Issuer.  Such election by Investor shall be exercised by written notice thereof given by Investor no later than 30 days after receipt by Investor of the Notice of Receipt of Proceeds.”
	 	 	    
	Consent to Amend Notes	 	Section 6(a) of the Secured Note shall hereby be amended to include the word, “amend,” following the word “Incur,” in the first clause of such Section.  
	 	 	 
	Press Release	 	Issuer intends to issue a press release following the execution of this Agreement and, to the extent Investor’s name is disclosed in such press release then the Issuer shall obtain the consent of the Investor with regard to the content of the press release, which such consent shall not be unreasonably withheld by the Investor.  This Agreement may be filed with the SEC to the extent required by securities laws or regulations of the Nasdaq.
	 	 	 
	Conflicts:	 	To the extent that this Agreement conflicts with the terms of any prior term sheet or note relating to the Unsecured Note or the Secured Note, this Agreement shall govern.

 

    	4

    	 

    

 

	Nasdaq Limitation:	 	Notwithstanding anything to the contrary herein, under no circumstances will this Agreement obligate the Issuer to issue any securities to the extent that, as a result thereof, more than 19.99% of the Common Stock or voting power outstanding immediately before the enactment of this Agreement (calculated under Nasdaq rules for determining shareholder approval) are (a) issued in the aggregate pursuant to this agreement or the transactions contemplated thereby or (b) owned by the Investor or any of its Affiliates.

 

This Agreement shall be binding on the parties
hereto and their respective successors and assigns and shall govern the parties’ respective rights and obligations under
the Unsecured Note and the Secured Note. This Agreement will be governed by and construed in accordance with the laws of the State
of California. Any disputes arising out of or relating to this Agreement shall be heard exclusively in state or federal courts
located in California, each party waiving any and all objections to such venue. This Agreement and the documents amended by this
Agreement comprise the entire understanding of the parties with respect to the subject matter hereof, as of the date hereof. This
Agreement shall not be amended, or any provision hereof waived, except in a writing signed by each party hereto. This Agreement
may be executed in any number of original, facsimile or other electronic counterparts.

 

[Remainder of page intentionally blank]

 

    	5

    	 

    

 

In Witness Whereof, the parties hereto have
executed this Agreement as of the date first above written.

 

	ISSUER:	 	INVESTOR:
	 	 	 
	MANDALAY DIGITAL GROUP, INC.	 	TAJA, LLC
	 	 	 
	By:	 	 	By:	 
	Name:	 	Name:
	Title:	 	Title:
	 	 	 	 	 

 

Binding Term Sheet

 

Convertible Note Financing

 

    	6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}]]