Document:

aob_10k-ex1011.htm

 

    
      

    

    Exhibit 10.11

     

    
      STOCK AWARD AND NON-QUALIFIED
STOCK OPTION

      GRANT
AGREEMENT

      UNDER THE 2006 EQUITY
INCENTIVE PLAN OF THE

      AMERICAN ORIENTAL
BIOENGINEERING, INC.

      

      

      

      
        	
                Company:

              	
                American Oriental
      Bioengineering, Inc.

              
	 
      	 
      
	
                Name of
      Grantee:

              	
                ____________________

              
	 
      	 
      
	
                Number of Stock
      Awards:

              	
                ______ Shares of Common
      Stock of Company

              
	 
      	 
      
	
                Number of Stock
      Options:

              	
                ______ Options for Shares of
      Common Stock of Company

              
	
                 

              	 (1:1
      basis)
	 
      	 
      
	
                Date of
      Grant:

              	 
      
	 
      	 
      
	
                Vesting
      Period:

              	
                __________

              
	 
      	 
      
	
                Option Exercise
      Price:

              	
                __________ per
      Share

              
	 
      	 
      
	
                Stock Purchase
      Price:

              	
                $0.00 per
      Share

              
	 
      	 
      
	
                Option Expiration
      Date:

              	
                __________

              

      

      

      

      

      SECTION 1.  
 STOCK
AWARDS AND STOCK OPTIONS

      

      (a) Pursuant to the American
Oriental Bioengineering, Inc. 2006 Equity Incentive Plan (“Plan”), Company, in exercise of
its sole discretion, hereby grants to the Grantee named above, who is a
Participant of the Plan, (1) a number of Shares at the purchase price as
indicated above (“Stock Awards”), and (2) stock options to purchase a number of
Shares at the exercise price as indicated above, which exercise price represents
the 100% percent of the Fair Market Value per Share on the Date of Grant (“Stock
Options”), subject to the terms and conditions set forth in this Grant Agreement
(“Agreement”).

      

      
        
          
            Common
Stock & Non-Qualified Common Stock Option – Executive

          

           

        

        
          
          

          
            

          

        

        
           

        

      

      (b) Capitalized terms
hereinafter used but not defined shall have the meanings defined in the Plan.
All references to Share prices and numbers herein shall be equitably adjusted
pursuant to the applicable provisions of Section 3 of the
Plan.

      

      SECTION 2. VESTING
SCHEDULE & EXPIRATION DATE

      

      (a) Subject to the terms of
this Agreement and the Plan, and provided that (1) Grantee remains in Continued
Status as a Participant (as defined in Section 1(d)(6) of the Plan), (2)
Grantee is not in breach of any duly executed written agreement with Company,
and (3) subject to other conditions set forth in this Agreement and Schedule A hereto:

      

      (i) The Stock Awards hereby
granted shall vest at the end of each consecutive twelve (12) month intervals
following the Date of Grant over the Vesting Period, and each time upon payment
of applicable purchase price, an equivalent of 1/5 of the number of Shares
granted hereunder shall be issued to Grantee. Payment for Stock Awards must be
made at the time of vesting.

      

      (ii) The Stock Options hereby
granted shall vest at the end of each twelve (12) month
intervals  following the Date of Grant over the Vesting Period, and
each time be converted into right to purchase, at the exercise price, 1/5 of the
number of Shares granted hereunder. Payment for Stock Options must be made at
the time of exercise.

      

      (b) The Grants issued
hereunder shall expire 6 years from the Date of Grant unless terminated earlier
pursuant to this Agreement and the Plan (“Expiration
Date”).

      

      SECTION 3. TERMINATION
OF GRANTS

      

      (a) Termination
of Stock Awards.
Unless otherwise terminated under this Agreement, a Grantee’s rights under this
Agreement with respect to the Stock Awards granted shall terminate at the time
when such Stock Awards are vested and Shares are issued to Grantee in accordance
with the terms hereof.

      

      (b) Termination
of Stock Options. Unless otherwise terminated
under this Agreement, a Grantee’s rights under this Agreement with respect to
the Stock Options granted shall terminate at the time when such Stock Options
are vested and exercised in accordance with the terms
hereof.

      

      (c) Date
of Termination.
For purposes of this Agreement, Date of Termination means the date when
Grantee’s Continuous Status as a Participant terminates, which, for purposes of
this Agreement and unless otherwise provided herein, shall be the earliest of:
(i) the date when Grantee’s actual relationship with Company as a Participant
(as defined in Section 1(d)(17) of the Plan) ceases, voluntarily or
involuntarily, with or without cause; (ii) the date when Grantee ceases
performing services for Company as a Participant; or (3) in the event of
involuntary termination of Grantee’s Participant status (regardless of the
reason or manner or validity thereof), the date when Grantee is no longer
actively engaged without extension by any notice period mandated under
applicable law. The Board shall have the exclusive discretion to determine when
Grantee is no longer actively engaged for purposes hereof.

      

      (d) Effect
of Termination of Grantee’s Status as a Participant. In the event of termination
of Grantee’s Continuous Status as a Participant as set forth in Section 3(c)
above, Grantee’s rights under this Agreement shall terminate, both as to then
unvested Stock Awards and as to then unvested Stock Options, as of the Date of
Termination. Grantee must exercise the Stock Options, to the extent vested and
exercisable as of the Date of Termination, within ninety (90) days after the
Date of Termination (but in no event later than the earlier of March 15 of the
following year or the Expiration Date), and the Stock Options shall terminate to
the extent not so exercised. Provided, however, if the Grantee died before the
vested Stock Options have expired or been terminated in accordance with the
foregoing, such vested Stock Options may be exercised within twelve (12) months
from the date of death, but in no event later than the earlier of March 15 of
the following year or the Expiration Date.

      

      
        
          
            Common
Stock & Non-Qualified Common Stock Option – Executive

          

           

        

        
          2

          
            

          

        

        
           

        

      

      (e) Disability
or Death of Grantee. Notwithstanding the
foregoing, in the event Grantee’s Continuous Status as a Participant is
terminated by reason of death or disability (as defined in Section 7(c) of the
Plan), as of such termination, any unvested Stock Awards and Stock Options
hereunder shall become fully vested, provided all of the other vesting
conditions under this Agreement are met. The vested Stock Options may thereafter
be exercised by the Grantee, Grantee’s estate, legal representative or legatee;
provided, however:

      

      (i)      In the event of termination
as a result of disability as defined above, the Stock Options must be exercised,
to the extent exercisable after application of this Section 3(e), within twelve
(12) months from the date of disability (but in no event later than the earlier
of March 15 of the following year or the Expiration Date), and the vested Stock
Options shall terminate to the extent not so exercised; and

      

      (ii)      In the event of termination
as a result of death, the Stock Options must be exercised, to the extent
exercisable after application of this Section 3(e), within twelve (12) months
from the date of death (but in no event later than the earlier of March 15 of
the following year or the Expiration Date); and the vested Stock Options shall
terminate to the extent not so exercised.

      

      (f) Change
of Control.
Notwithstanding the forgoing, in the event Grantee’s Continuous Status as a
Participant is terminated by Company without cause in connection with a Sale
Event (as defined in Section 3(c) of the Plan) and within eighteen (18) months
of such Sale Event, all of the unvested Stock Awards and unvested Stock Options
shall become fully vested provided all of the other vesting conditions under
this Agreement are met, and Grantee must exercise the Stock Options, to the
extent exercisable after application of this Section 3(f), within thirty (30)
days after the Date of Termination (but in no event later than the Expiration
Date), and the Stock Options shall terminate to the extent not so
exercised

      

      (g) Value
of Unvested Grants. Grantee agrees that as of
Date of Termination, and regardless of the reason or manner or validity of the
termination of Grantee’s Continuous Status as a Participant, any unvested Stock
Awards and Stock Options shall be deemed to have a value of zero dollars
($0.00).

      

      (h) Value
of Terminated Grants. Grantee agrees that any
Stock Awards or Stock Options terminated pursuant to this Agreement, regardless
of the reason or manner or validity of the termination, shall be deemed to have
a value of zero dollars ($0.00).

      

      SECTION
4.  PURCHASE
OF SHARES AND EXERCISE OF STOCK OPTIONS

      

      (a) Upon vesting of the Stock
Awards, and subject to the payment by Grantee of the applicable purchase price
and the satisfaction of applicable tax withholding obligations, in a manner
authorized by the Plan, an equivalent number of Shares will be issued and
distributed to the Grantee. Failure by Grantee to pay the applicable purchase
price for the Stock Awards, as notified by Company, will result in termination
of such Stock Awards as of the date of vesting.

      

      
        
          
            Common
Stock & Non-Qualified Common Stock Option – Executive

          

           

        

        
          3

          
            

          

        

        
           

        

      

      (b) Upon delivering to
Company or its designated agent the notice of exercise by Grantee for vested
Stock Options (“Notice of
Exercise”),
which notice shall set forth Grantee’s intention to exercise the vested Stock
Options and the number of Shares to be purchased, together with the payment by
Grantee of the applicable exercise price for such Shares and the satisfaction of
applicable tax withholding obligations therefore, in a manner authorized by the
Plan (“Date of
Exercise”), such
Shares will be issued and distributed to Grantee.

      

      (c) The distribution of
Shares to the Grantee, or in the event of Grantee’s death, to Grantee’s legal
representative, shall be evidenced by a stock certificate and appropriate entry
on the books of Company or a duly authorized transfer agent of Company, or other
appropriate means as determined by Company. No fractions of a Share may be
exercised hereunder.

      

      (d) The Company may, at its
option, allow such Grantee elect to pay all or part of the purchase/exercise
price with bank checks, or with shares which, as of the date of payment, the
officer or director has owned for six (6) months or more. Shares so used shall
be valued at their Fair Market Value on the exercise date.

      

      (e) Until the distribution to
Grantee of the Shares as set forth above, Grantee shall have no right to vote or
receive dividends or any other rights as a shareholder with respect to such
Shares, notwithstanding the grant or vesting of Stock Awards or Stock Options.
No adjustment will be made for a dividend or other right for which the record
date is prior to the date Grantee is distributed such Shares, except otherwise
authorized by the Plan.

      

      (f) The nature of Shares is
described in Schedule
A
hereto.

      

      SECTION
5.   WITHHOLDING
TAXES.

      

      (a) Grantee acknowledges and
agrees that Grantee is solely responsible to pay all applicable taxes in
connection with the grant, purchase, vesting and exercise of the Stock Awards
and Stock Options hereunder, and that Company has the right to deduct from
payment of any kind otherwise due to Grantee, or from the Shares to be issued,
any federal, state or local taxes required by law to be withheld with respect
thereto.

       

      (b) Company may, at its
option, satisfy such withholding tax obligations by withholding Shares having a
Fair Market Value equal to the amount required to be withheld on the date of
conversion of the Stock Awards or Stock Options to Shares; provided that such
Share withholding shall otherwise be made in compliance with Rule 16b-3 and
other applicable regulations.

      

      (c) For purposes of tax
withholding, the valuation and assessment made by the Board shall be
determinative. Company may refuse to issue the Shares to Grantee if Grantee
fails to comply with Grantee’s obligations in connection with the tax
withholding as described herein and in the Plan.

      

      

      

      
        
          
            Common
Stock & Non-Qualified Common Stock Option – Executive

          

           

        

        
          4

          
            

          

        

        
           

        

      

      SECTION 6.GRANTEE
REPRESENTATION.

      

      By accepting the Stock Awards
and Stock Options hereunder, Grantee represents and warrants that Grantee shall
not sell any of the Shares received hereunder where applicable laws, rules or
regulations of any government unit or stock exchanges on which the Shares are
listed, Company policies or this Agreement prohibit such a
sale.

      

      SECTION 7.NON-TRANSFERABILITY
OF GRANTS

      

      Grantee’s right in the Stock
Awards and Stock Options hereunder are personal to Grantee, and any interest
therein may not be sold, pledged, assigned, hypothecated, transferred, or
disposed of in any manner other than by will or by the laws of descent or
distribution. The Stock Awards and Stock Options hereunder shall not be subject
to execution, attachment or other process. Any attempted disposition of the
Stock Awards or Stock Options in violation of this section shall be null and
void.

      

      SECTION 8.GRANTEE
ACKNOWLEDGMENT.

      

      By accepting the Grants
hereunder, Grantee acknowledges that:

      

      (a) the Plan is established
voluntarily by Company, it is discretionary in nature and may be modified,
amended, suspended or terminated by Company, at any time and for any reason, as
provided in the Plan;

      

      (b) the Grants hereunder are
voluntary and occasional and do not create any contractual or other right to
receive future similar or different grants even if such may have been granted
repeatedly in the past;

      

      (c) the participation in the
Plan by Grantee is voluntary;

      

      (d) the future value of the
Stock Awards or Stock Options upon vesting may increase or decrease and cannot
be predicted with certainty;

      

      (e) Grantee has received and
has read, understood and accepted all the terms, conditions and restrictions set
forth in this Agreement and the Plan, all of which apply to Grantee as
applicable;

      

      (f) Grantee must execute this
Agreement and the related documents in the manner prescribed by the
Company;

      

      (g) neither this Agreement
nor any provision of this Agreement or the Plan or the Company policies adopted
pursuant to the Plan shall confer upon Grantee any right with respect to
employment/engagement with Company or as to the term or termination thereof;
and

      

      (h) Grantee is strictly
subject to the terms of the legends identified in Schedule
A
hereto.

      

      

        
          
            
              Common
Stock & Non-Qualified Common Stock Option – Executive

            

             

          

          
            5

            
              

            

          

          
             

          

        

      SECTION 9. NO
RIGHT TO DAMAGES

      

      Grantee agrees that,
regardless of the reason or manner or validity of the termination of Grantee’s
Continuous Status as a Participant, Grantee has no right to, and will not bring
any legal claim or action for any damages for the vested, unvested or terminated
Stock Awards or Stock Options, in whole or in part, under this Agreement or the
Plan.

      

      SECTION 10. COMPANY
POLICIES

      

      The Grantee’s rights in the
Stock Awards and Stock Options hereunder shall be affected, with regard to both
vesting and termination, by Company’s published written policies in related
matters. These policies may change from time to time without notice in Company’s
sole discretion.

      

      SECTION
11.  BOARD
APPROVAL.  

      

      This Agreement is subject to
approval by the Board. If such approval is not obtained, this Agreement is null
and void.

      

      SECTION 12.GENERAL
PROVISIONS.

      

      (a)  Plan
Governs.   Notwithstanding
anything in this Agreement to the contrary, the terms of this Agreement shall be
subject to the terms of the Plan, and this Agreement is subject to all
interpretations, amendments, rules and regulations promulgated by the Board from
time to time pursuant to the Plan.

      

      (b) Entire
Agreement and Amendment.  This Agreement,
the schedules hereto and the Plan constitute the entire agreement between the
parties hereto with respect to the subject matter hereof, and are supplemental
to any other agreements between the Grantee and Company. Any prior agreements,
commitments or negotiations concerning the subject matter hereof are superseded.
This Agreement may be changed, modified or terminated only by an agreement in
writing signed by both parties hereto, except as otherwise provided in the
Plan.

      

      (c) Governing
Law and Forum.  This Agreement
shall be governed by and construed in accordance with the laws of the State of
Nevada without regard to conflict of law principles. Without derogation to the
arbitration provision below, the parties consent to the jurisdiction of the
state or federal courts having jurisdiction over matters arising in New York,
New York. The parties agree that in any such proceeding, each party shall waive,
if applicable, inconvenience of forum and right to a jury.

      

      (d) Headings.  The headings are
intended only for convenience and do not constitute part of the text of this
Agreement and shall not be considered in the interpretation of this
Agreement.

      

      (e) Severability.  If one or more
of the provisions of this Agreement shall be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby;
however, to the extent permissible by law, such invalid, illegal or
unenforceable provisions shall be construed, interpreted or revised
retroactively so as to foster the intent of this Agreement and the
Plan.

      

      
        
          
            Common
Stock & Non-Qualified Common Stock Option – Executive

          

           

        

        
          6

          
            

          

        

        
           

        

      

      (f) Notices.  Any written
notices provided for in this Agreement which are sent by regular mail shall be
deemed received three business days after mailing, but not later than the date
of actual receipt. Notices shall be directed, if to Grantee, at the Grantee’s
address indicated by Company’s records and, if to Company, at
Beijing Economic and Technology Development Zone

      1 First
Liangshuihe Street, Beijing, E-town, PRC 100176.

      

      (g) Assignment.  This Agreement
shall be binding upon and shall inure to the benefit of the parties hereto,
their respective successors, permitted assigns and legal representatives.
Grantee may not assign this Agreement or Grantee’s rights or obligations
hereunder. Company has the right to assign this Agreement, and such assignee
shall become entitled to all the rights of Company hereunder to the extent of
such assignment.

      

      (h) Counterparts.  For the
convenience of the parties and to facilitate execution, this Agreement may be
executed in two or more counterparts, each of which shall be deemed an original,
but all of which shall constitute one and the same document.

      

      (i) Dispute
Resolution.  Any dispute,
controversy or claim arising out of or relating to this Agreement or the breach
thereof, shall be settled by arbitration, before one arbitrator in accordance
with the rules of the American Arbitration Association then in effect and
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction.  The arbitrator will be selected, by the parties,
from a panel of attorney arbitrators.  The parties agree that any
arbitration shall be held in New York, New York.  The language of the
arbitration shall be in English.  The arbitrator will have no
authority to make any relief, finding or award that does not conform to the
terms and conditions of this Agreement. Company shall bear the costs of the
arbitration charged by the AAA.  Each party shall bear its own
attorneys’ or expert fees and expenses incurred in the
arbitration.  Each party shall bear its own attorneys’ or expert fees
and any and all other party specific costs.  Either party, before or
during any arbitration, may apply to a court having jurisdiction for a
restraining order or injunction where such relief is necessary to protect its
interests.   Prior to initiation of arbitration, the aggrieved
party will give the other party written notice, in accordance with this
Agreement, describing the claim as to which it intends to initiate
arbitration.

      

      IN WITNESS WHEREOF, the
parties hereto have executed this Agreement below.

      

      
        	
                AGREED

              	
                AGREED

              
	
                American Oriental
      Bioengineering, Inc.

              	
                Grantee

              
	 
      	 
      
	 
      	 
      
	
                By:
      _____________________________

              	
                By:
      __________________________

              
	
                Name:

              	
                Name:

              
	
                Title:

              	
                Address:
      

              
	
                Date:

              	
                Date:

              

      

      
        
          
            Common
Stock & Non-Qualified Common Stock Option – Executive

          

           

        

        
          7

          
            

          

        

        
           

        

      

      SCHEDULE
A

      

      DESCRIPTON
OF SHARES

      

      

      Nature of
Shares:

      

      Common stock reserved under
the 2006 Stock Plan

      

      Registered under S-8 on April
4, 2007

      

      Shares Converted from Stock
Awards shall Bear the Following Legends:

      

      “Registered Shares. Control
Shares.

      Resale
restrictions:

      Rule 144,
Securities Act of 1933, as amended.

      Section
16(b)-(c), Securities Exchange Act of 1934, as amended.

      Lock-Up
period of 12 months after the date of vesting

      Employment
Agreement dated  ___, if applicable”

      

      Shares Exercised from Stock
Options shall Bear the Following Legends:

      

      “Registered Shares. Control
Shares.

      Resale
restrictions:

      Rule
144

      Section
16(b)-(c)”

      

      

      

      

      

      

      

      

      

      
        	
                AGREED

              	
                AGREED

              
	
                American Oriental
      Bioengineering, Inc.

              	
                Grantee

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                By:
      _____________________________

              	
                By:
      __________________________

              
	
                Name:

              	
                Name:

              
	
                Title:

              	
                Address:

              
	
                Date:

              	
                Date:

              

      

      

      

      
        
          
            Common
Stock & Non-Qualified Common Stock Option – Executive

          

           

        

        
          8AMENDED MARKETING AND SALES PARTNERSHIP AGREEMENT

     This  Amended  Marketing  and  Sales  Partnership  Agreement  (hereinafter
referred  to  as  the ("Agreement"), effective as of the 10th day of March 2010:

Between  GOLDEN  GATE  HOMES,  INC.,  whose  business  office  is located at 855
BORDEAUX  WAY,  SUITE  200,  Napa,  California,  U.S.A.
                    (Hereinafter referred to as the "Owner")

And PREMIER CAPITAL LIMITED, whose business office is located at Room 2813, SHUN
TAK  CENTER,  168  CONNAUGHT  ROAD,  Sheung  Wan  Central,  Hong  Kong
                   (Hereinafter referred to as the "Agent").

                                   RECITALS:

     WHEREAS,  the Owner and the Agent have previously entered into that certain
Marketing  and Sales Partnership Agreement dated September 23, 2009 (hereinafter
referred  to  as  the  "Original  Agreement");  and

     WHEREAS,  the  Owner  and the Agent wish to amend certain provisions of the
Original  Agreement,  and  to  clarify  certain other provisions of the Original
Agreement;  and

     WHEREAS,  to  amend  and  clarify  such provisions, the Owner and the Agent
agree to terminate and cancel the Original Agreement and to replace it with this
Agreement.

     IN  consideration  of the mutual covenants and agreements herein contained,
and  for  valuable consideration hereby acknowledged, the parties, the Owner and
the  Agent,  agree  as  follows:

     1.     Subject  to  the  terms  and  conditions set forth herein, the Owner
hereby  grants  to  the  Agent,  and  the  Agent  hereby  accepts, the exclusive
authority  and  right  to  list,  market  and  sell in Hong Kong and China (such
territory  hereafter  referred  to  as  the  "Exclusive  Territory") real estate
properties  located  in  the states of California, Arizona, Nevada or Washington
(such  states  hereinafter  referred  to as the "Exclusive States") that (a) the
Owner  has  identified  and presented  real  estate  properties to the Agent for
approval  to  sell  to  third parties, and (b) the Agent has approved these real
estate  properties and the Owner and the Agent have agreed to market for sale in
the  Exclusive  Territory (such properties and developments hereinafter referred
to  as  the  "Approved  Properties").  Real  estate properties not identified as
Approved  Properties  will  not  be  covered  by  this  Agreement.

     2.     The  Agent  shall  have  the  exclusive right to market and sell the
Approved  Properties  in  the  Exclusive  Territory  during  the  term  of  this
Agreement,  which  shall  commence  on  the date first set forth above and shall
terminate  at  the  close  of  business  on the 14th of October 2014 (such times
period  hereinafter  referred  to  as  the "Listing Period"), provided, however,
that  the Listing Period shall be extended by one year for every year that Agent
sells  at  least  one  hundred  (100) Approved Properties. Any extension thereof
shall  be  referred  to  hereinafter as the "Extended Listing Period". The Agent
will not list, market or sell any properties in the Exclusive States without the
approval  of the Owner during the Listing Period or the Extended Listing Period.

     3.     The  Owner  shall  provide at its own expense to the Agent, at least
four  (4)  weeks  before  the  exhibition held for the promotion of an Approved
Property,  the  following  materials  in  English:

     a. reasonably and customary promotional materials required by the marketing
plan,  including  display  boards,  photographs,  and  brochures in the quantity
approved  of  in  the  marketing  plan. The exhibition budgets for Hong Kong are
estimated  to be USD $15,000, and the exhibition budgets for China are estimated
to be USD $18,000. These may vary if changes to the marketing plans or the costs
change  and  are  mutually agreed upon. The Owner will pay for all out-of-pocket
expenses  associated  with such agreed upon marketing materials. The Agent shall
pay  for  any  costs of translating or reproducing these materials into Chinese.
The  initial  budgets  are  attached  for  reference  purposes;

     b.  sufficient  copies  of  all necessary legal documents (e.g., Disclosure
Statement,  Reservation  Form,  Contract  of  Sale)  for  each  of  the Approved
Properties;  and

4.     The  owner agrees to pay the Agent seventy-five percent (75%) of the cost
of  the  out-of-pocket third party advertising expenses for exhibitions incurred
by  the  Agent  (such advertising costs hereinafter referred to as the "Approved
Budget").  The  Owner  shall  advance fifty percent (50%) of the Approved Budget
against  presented  actual  out-of-pocket  expenses.  Copies of all invoices for
expenditures under the Approved Budget shall be sent to the Owner. The remaining
actual  expenses  owed  to  the Agent pursuant to this Paragraph 4 shall be paid
within  fifteen  (15) days of the close of the exhibition. In the event that the
Owner  pay  a  greater proportion of the Approved Budget than is contemplated by
this  Paragraph 4, the Owner shall have the right to seek reimbursement from the
Agent  or  set  off such amount against the commissions set forth in Paragraph 5
below.

5.     In  respect  of  the  sale  of  any  Approved  Property  to  a  purchaser
(hereinafter  referred  to  as  a "Purchaser"), whether or not introduced by the
Agent,  in the Exclusive Territory during the Listing Period or Extended Listing
Period, the Owner agrees to pay to the Agent a commission equal to seven percent
(7%) of the purchase price of such Approved Property sold, such commission to be
paid  upon  the  closing  of  the sale  to Purchaser. However, when the Owner is
selling  units  on  consignment option agreements the Owner agrees to pay to the
Agent  a  commission  equal  to  six percent (6%) of the purchase price. Agent's
commission  will not be paid from escrow but will be paid directly to Agent upon
closing.  However, in the event that the escrow agent for such Approved Property
releases  funds  to  the  Owner,  the  Agent  shall be entitled to receive up to
one-half  of  the  commission  (i.e.,  3%)  depending  upon  the amount of funds
released.  The Owner further agrees that unless cleared with the Agent, the only
party  receiving  funds  released  from escrow will be the Agent until the final
closing  of  the  sale  of  the  Approved  Property.

6.     The  Owner  and  the  Agent  agree  that  under the terms of any purchase
agreement  for  the  purchase of an Approved Property, the prospective Purchaser
will  be  required  to  place  into  escrow  a  non-refundable ten percent (10%)
deposit.  In the vent that the prospective Purchaser defaults, the Owner and the
Agent will first be reimbursed their respective expenses related to the costs of
processing  the  individual  Purchaser.  If  the  expenses  incurred  exceed the
deposit,  then  expenses  will  be  reimbursed  pro-rata.  In the event that the
deposit exceeds the expenses incurred, then the Agent will receive forty percent
(40%)  of  the  amount  remaining  after expenses are reimbursed, with the Owner
receiving  the  remaining  sixty  percent  (60%).

7.     The  Owner  will  either  own  title  to the Approved Property or have an
option  to  purchase  the  Approved  Property  and  engage the services of title
companies  based  in  the  United  States of America. These title companies will
receive  all  escrow  funds  directly  from  Purchaser or Purchaser's designated
agent.  No  escrow  funds will be released until closing without approval of the
Purchaser.

8.     In  the  event that the Agent introduces and properly registers potential
purchasers  to  an  Approved  Property  in  the Exclusive Territory and the same
individual(s)  subsequently  purchases such Approved Property during the Listing
Period  or  the  Extended Listing Period, then the Owner shall pay the Agent the
same  commission  set  forth  in  Paragraph  5.

9.     The Owner shall fully and completely indemnify Agent from and against all
actions,  proceedings,  claims  and  demands  whatsoever, directly or indirectly
resulting  from  promoting the Approved Properties, and any representations made
during  such  promotions, provided that the representations and statement, sales
and  marketing  techniques or literature comply with the advice, instructions or
statements previously conveyed to the Agent by the Owner or its representatives.

10.     The  Agent  shall  fully  and  completely  indemnify  the Owner from and
against  all  actions,  claims  and  demands  whatsoever  arising  directly  or
indirectly  from  errors  or  omissions  make  by  the  Agent's  employees,
representatives  or  agents.

11.     All  marketing  information,  prospect  leads  and such other commercial
information  acquired by the Agent with respect to an Approved Property shall be
the  exclusive  property  of  the  Agent  and  shall  remain with the Agent upon
termination  or  expiration  of  this  Agreement.

12.     The  prices  at  which  any Approved Property is offered for sale in the
Exclusive  Territory  shall be pursuant to a mutually agreed upon price schedule
and  price  expiration  date.

13.     Upon  the  expiration  or termination of this Agreement, all promotional
documents  and  other  materials  in the  possession  of  Agent shall become the
property of the Owner and shall be returned to the Owner. The Owner shall at its
cost  and  expense  pay  for  the  shipping  of  such  promotional documents and
materials from the Agent within a reasonable period of time after the expiration
of  this Agreement; otherwise the Agent, in its absolute discretion, may dispose
of  these  promotional  documents  and  materials  that  are  in its possession.
(However,  as stated in Paragraph 11, the leads and prospects generated from the
exhibition  and  newspaper advertising campaign shall remain the property of the
Agent).

14.     Time  is  of  the  essence  in this  Agreement.  No modification of this
Agreement  shall  be  effective  unless  set forth in writing and signed by both
parties.  This  Agreement  shall  be  binding  and  inure  to the benefit of the
respective  successors  and  assigns  of  the respective parties. This Agreement
contains  the  entire  agreement  between  the parties and no amendment shall be
effective  unless  the  same  shall  have  been  executed by the party obligated
thereunder.  Each  party  acknowledges  that  no  representations,  inducements,
promises  or  agreements  that  are not embodied herein have been made by either
party  or  anyone  acting  on  behalf  of  either  party.

15.     This  Agreement  is  governed  by  the  laws  of  Hong  Kong.  It  is
understood  that  all  contracts  written  by  the  Owner  for  sale of Approved
Properties  will  be  governed  by  California law. Also, both the Owner and the
Agent  agree that all contracts to purchase Approved Properties will have a JAMS
arbitration  clause,  with the arbitration to be held under California law. This
is  to  protect  all  parties.

The parties hereto have caused this Agreement to be executed on the day and year
first  written  above.

Signature  Page  follows  this  page

<PAGE>

SIGNED BY     Tim Wilkens

For and on behalf of the Owner

In the presence of Amy Flint

SIGNED BY  Philip Leung

For and on behalf of the Agent

In the presence of Erica Tonn

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]