Document:

Sales Contract between Gain Star International Limited and Registrant

 Exhibit 10.8 
  
 SALES CONTRACT 
  

	1.	Preamble 

  
 AMERICAN TELECOM SERVICES, INC., a Delaware corporation with a registered business office at 2433 PECK ROAD, CITY OF INDUSTRY, CA 90601 (hereinafter called “the buyer”), agrees to buy and GAIN STAR
INTERNATIONAL LIMITED, with a registered office at 20/F., THE SUN’S GROUP CENTRE, 200 GLOUCESTER ROAD, HONG KONG (hereinafter called “the seller”) agrees to sell, certain products based upon a Sales Contract (hereinafter called
“the contract”) which contains the terms and conditions in the following: 
  

	2.	Source of Goods 

  
 The buyer shall source certain goods at buyer’s specifications (hereinafter called “the goods”) from manufacturer (hereinafter called
“the manufacturer”) directly. Specifications, including but not limited to quantity, packaging and delivery schedule of the goods shall be negotiated between the buyer and the manufacturer directly, under no circumstance shall the seller
be responsible for the Quality, Specification and the Performance of the Manufacturer. Seller will authorize Manufacturer to handle all the QA and QC issues and return issues direct with the buyer in writing and will notify the Manufacturer of this
document as it pertains to the QA, QC and specifications responsibility. In the event there are returned goods, the buyer will instruct the seller to deduct the amount designated and documented by the buyer from those purchase orders that the Letter
of Credit hasn’t been opened yet, if authorized by the manufacturer. And if there is a discrepancy in the existing Letter of Credit opened to the manufacturer when the documents are presented, the seller will hold the payment until the Letter
of Credit expires or the discrepancy is cured. The seller will use this leverage to support the buyer in a best efforts basis to deduct the amount. 
  

	3.	Independent Transactions 

  
 Each source contract of the goods between the seller and the manufacturer shall form an independent transaction under the contract. Unless otherwise
stated, the terms of each transaction hereunder shall follow all terms and conditions and amendments in the said source contracts concurrently. 
  

	4.	Market of Goods 

  
 Unless otherwise agreed, the buyer agrees to resell the goods to customers and/or chain stores in the North America who to be approved one by one by THE
CIT GROUP/ COMMERCIAL SERVICES, INC. (“CIT”) and at open account within the credit limit approved by CIT. The buyer will authorize the seller to have full access to CIT’s online service system which CIT grants to the buyer, as the
information provided on CIT’s online service system pertains only to the seller’s specific transaction. 

	5.	The Buyer’s Sales Price 

  
 The buyer’s sales price of the goods shall be determined at costs to the manufacturer plus the Charges in term 17(“Initial Charges”). The
Initial Charges may be altered from time to time subject to written mutual agreement with 30 days notification in writing and will not effect any current transaction opened prior to the written notification. 
  
 The wholesale selling price of the goods shall be determined by the buyer
only. The seller shall inform the buyer immediately in written notice of the wholesale selling price change and any such change will not effect any current transaction opened prior to the written notice. The seller shall take appropriate action to
assure that the percentage payable to the seller can cover the buyer’s sales price. Schedule I represents the standard wholesale selling price the buyer will offer. In the event the price changes up or down on an existing product or a new
product, the buyer and seller agree to notify CIT and to instruct CIT to amend or create a new three party agreement that will amend the percentage payable to the seller. This percentage may go up or down as it relates to the price changes and/or
new products prices where the cost of goods is representing a different ratio to the wholesale selling price. 
  

	6.	Payment 

  
 Payment due dates may vary from time to time to be determined by the seller in invoices. However, the payment will always be at a minimum of 90 days after the shipping date as shown on the Bill of Lading. 

 

	7.	Returned or Rejected Goods 

  
 Under no circumstances, shall the seller refund to the buyer any money arising from returned or rejected goods without collecting the same from the
manufacturer. In the event the manufacturer pays the seller for any returns, product allowances, or discounts and not limited to these categories or any payment that pertains to the buyer, then the it will be required by the seller to remit the
funds within 5 days of receipt to the buyer. In the event the manufacturer violates the agreement with the buyer in any material way or there is an epidemic issue on any transaction, then upon buyer’s notification the seller shall help the
buyer to suspend opening a new Letter of Credit and, only when the documents are presented with a discrepancy for an existing Letter of Credit, to hold the acceptance procedure until the situation is reconciled with the acceptance of both the buyer
and the seller. Any catastrophic issue must be settled to the mutual written and signed satisfaction by and of all three parties. 
  

	8.	Hold Harmless 

  
 The buyer shall insure, defend indemnify and hold the seller harmless from and against any and all claims arising out of this contract, provided the
seller did not contribute in any material way to a breach, including but not limited to attorney’s fees and costs and also agrees to reimburse the seller on demand all direct expenses documented and listed in section 17. And the buyer agrees to
add the seller as an additional insured on the Product Liability Insurance that the buyer purchases from the insurance company. 
  

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	9.	Condition Precedents to the Contract 

  

	 	9.1	Factoring Agreement 

  
 The buyer shall factor its invoices or account receivables with CIT as an approved factor by the seller. 
  

	 	9.2	Assignment Agreement 

  
 The buyer shall assign 70% of the proceeds of the total account receivable collected by CIT from each transaction as it applies to the order according to
mutual agreement between the buyer and the seller prior to the transaction. CIT will participate in a three party agreement between the seller and the buyer to guarantee their payment upon collection from the bank and or retail channel to the
seller. The amount payable to the seller may never exceed the buyer’s sales price plus all expenses to land the product to the US warehouse. 
  

	10.	Condition Precedents to Each Transaction 

  

	 	10.1.	The seller must receive a purchase order from the buyer. 

  

	 	10.2.	The seller must receive a copy of purchase order from approved customers or chain stores by CIT. 

  

	 	10.2.1.	The order Amount must be approved by CIT used by the buyer and submitted to the seller. 

  

	 	10.2.2.	The seller must receive a copy of source contract which will be evidenced by the actual PO submitted to the manufacturer through the seller relating to the above purchase order; and

  

	 	10.2.3.	The seller must receive a sample wording of the required letter of credit required by the buyer and the manufacturer. 

  

	11.	Trust Account 

  
 The Buyer shall create a Trust Account for the benefit of the Seller and the buyer with WESTERN STATES BANK IN, DUARTE CA, except when the buyer notifies
the seller that a bank change will be made prior to a transaction. The seller will not withhold acceptance of this change at any time as long as all rights and guidelines remain the same as designated in the Trust Account Agreement and
Section 11 of this contract. 
  
 The Trust Account is a
contingency fund to deal with any returned or rejected goods from customers or chain stores. Upon receipt of the sales proceeds, the buyer and the seller agree to instruct CIT to wire automatically 10% of each lot of payment (“Proceeds”)
that CIT collects from customers or chain store to the Trust Account, except in the event the actual rate of returned or rejected goods is less than 10%, after evaluation in the first 6 months calculated from the date that the seller receives the
first payment. Then both parties will agree to reduce the percentage required for the Trust Account by the amount 

  

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documented on future transactions and will notify CIT within 3 (three) working days of this conclusion, of the change in the Trust Account percentage to be
wired by CIT in each of the seller’s transaction. Such 10% of Proceeds can be released 90 days after it is deposited into the Trust Account by wire or other electronic transmittal methods to a bank account specified by the buyer unless the
followings occur: 
  

	 	A.	In case the amount CIT the factor wires to the seller is not sufficient to cover amount under the Letter of Credit plus the Initial Charges as stated in Section 17 of this
contract in the required payment term period, then the seller may request the buyer to pay upon the seller’s documented statement of the account, and the buyer shall not refuse to pay the seller within 7 (seven) working days the difference from
the Trust Account and the balance due within the terms of the specific transaction. 

  

	 	B.	In case the amount in the Trust Account is not sufficient to cover the difference, within the payment term period, as it relates to the specific transaction from the seller and the
requirements of the sale contract as agreed upon, the buyer shall then have the obligation under the Sales Contract to pay to the seller after receiving the seller’s documented statement of account as it pertains to the specific transaction,
the remaining balance within 7 (seven) working days after the amount in the Trust Account is paid to the seller in accordance with the terms as stated in the sales contract and as it relates to the specific transaction designated. An Extra of 0.5
every day will be charged in case the buyer effects payment of the remaining balance after 7 (seven) working days. 

  

	12.	Right of Refusal 

  
 The seller has the absolute discretion to decline a particular transaction without an obligation to advise the buyer the reasons to the final decision
except where all requirements are followed in accordance with this agreement, such decision must be given in writing within 7 (seven) days after the seller receives a proposal of transaction or a purchase order. 
  

	13.	Governing Law 

  
 The contract shall be governed by the laws of the Hong Kong Special Administrative Region. 
  

	14.	Arbitration 

  
 Any dispute, controversy or claim arising out of or relating to the contract, or the breach termination or invalidity thereof, shall be settled by arbitration or litigation in Hong Kong or in Los Angeles California
USA under the laws of the Hong Kong Special Administrative Region. In case of arbitration, there shall be only one arbitrator in the arbitral tribunal to be appointed by Hong Kong International Arbitration Centre. 
  
 Both parties agree that arbitral proceedings in the above may be
consolidated with other arbitral proceedings if they exist and that the power to order consolidation of proceedings shall be conferred on the arbitral tribunal. 
  

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	15.	Commencement and Termination 

  
 The contract shall commence on [            ], 2005 and be perpetual subject to written notice
of cancellation tendered by either party at any time in 30 (seven) days in the future. Termination of the contract shall not relieve the liabilities of both parties hereunder until their natural expiration on existing transactions. 
  

	16.	Communication 

  
 Any written notices regarding the contract shall be sent by mail or fax, return receipt requested and shall be deemed received three business days after
delivery, addressed as follows: 
  
 The Buyer’s Address: 

 American Telecom Services, Inc.  
 2433 PECK ROAD, CITY OF INDUSTRY, CA 90601 
 Tel:
562-205-1080             Fax: 562-205-1088 
  
 The Seller’s Address:  
 Gain
Star International Limited  
 20/F., The Sun’s Group Centre, 200 Gloucester Road, Hong Kong 
 Tel: 852-2721 6699            Fax: 852-2721 4383 
  

	17.	Initial Charges 

  

	 	•	 	Handling Charge 

  
 The Seller’s Handling Charge is 1.5% of the amount of the Letter of Credit , a minimum margin of [US$1,500] is required for each transaction. If a
usance Letter of Credit is required to be opened to the manufacturer, the seller is entitled to charge the buyer an extra of 0.2% for Letter of Credit after 30 days sight or 0.4% for Letter of Credit after 60 days sight and so on. 
  

	 	•	 	Banking Charge 

  

	 	•	 	Commission on Letter of Credit, current at [0.5]% of the amount of Letter of Credit; 

  

	 	•	 	Commission in lieu of exchange, [0.25]% of amount of the amount of Letter of Credit; 

  

	 	•	 	Interests are to be calculated from Bills of lading issuing date to the date that the seller receives payment of full invoice value. The Prime Rate of US dollars on the date of Bill
of lading as shown on website: www.bloomberg.com/markets/rates/ shall be applicable when interests are calculated. 

  

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	 	•	 	Legal expenses in establishing security required by the seller. The seller may not file any first position security interest as CIT will have the first position on all assets.

  
 In witness whereof, the contract is hereby executed by their
respective authorized representatives in duplicate. 
  

					
	 For and on behalf of
	 	 	 	 For and on behalf of

	 American Telecom Services, Inc.
	 	 	 	 Gain Star International Limited

			
	 /s/ Adam Somer or Bruce Hahn
	 	 	 	 /s/ Sun Kuong Wei

			
	 Authorized Signature
	 	 	 	 Authorized Signature

	 Date:
	 	 	 	 Date:

	 Reference:
	 	 	 	 Reference:

  

 - 6 -Factoring Agreement between CIT Commercial Services and Registrant

 Exhibit 10.9 
  
 CIT COMMERCIAL SERVICES 
 300 South Grand Avenue 
 Los Angeles, California 90071 
  
 Date: July 6, 05 
  
 American Telecom Services, Inc. 
 2466 Peck Road 
 City of Industry, California 90601 
  
 FACTORING AGREEMENT 
  
 Ladies and Gentlemen: 
  
 We are pleased to confirm the terms and conditions that will govern our funds
in use accounting, non-borrowing, notification factoring arrangement with you (the “Agreement”). 
  
 1. Sale Of Accounts. You sell and assign to us, and we purchase as absolute owner, all accounts arising from your sales of inventory or rendition
of services, including those under any trade names, through any divisions and through any selling agent (collectively, the “Accounts” and individually, an “Account”). 
  
 2. Credit Approval. 
  
 2.1. Requests for credit approval for all of your orders must be submitted to
our Credit Department via computer by either: (a) On-Line Terminal Access, or (b) Electronic Batch Transmission. If you are unable to submit orders via computer, then orders can be submitted over the phone, by fax or in writing. All credit
decisions by our Credit Department (including approvals, declines and holds) will be sent to you daily by a Credit Decisions Report, which constitutes the official record of our credit decisions. Credit approvals will be effective only if shipment
is made or services are rendered within thirty (30) days from the completion date specified in our credit approval. Credit approval of any Account may be withdrawn by us any time before (a) such time that shipment is made or services are
rendered and (b) title to the goods being sold has passed to your customer. 
  
 2.2. We assume the Credit Risk on each Account approved in the Credit Decision Report. “Credit Risk” means the customer’s failure to pay the Account in full when due on its longest maturity
solely because of its financial inability to pay. If there is any change in the amount, terms, shipping date or delivery date for any shipment of goods or rendition of services (other than accepting returns and granting allowances as provided in
Section 8 below), you must submit a change of terms request to us, and, if such pertains to a Factor Risk Account, then we shall advise you of our decision either to retain the Credit Risk or to withdraw the credit approval. Accounts on which
we bear the Credit Risk are referred to collectively as “Factor Risk Accounts”, and individually as a “Factor Risk Account”. Accounts on which you bear some or 

 
all of the risk as to credit are referred to collectively as “Client Risk Accounts”, and individually as a “Client Risk
Account”. 
  
 2.3. We shall have no liability to you or
to any person, firm or entity for declining, withholding or withdrawing credit approval on any order. If we decline to credit approve an order and we furnish to you any information regarding the credit standing of that customer, such information is
confidential and you agree not to reveal same to the customer, your sales agent or any third party. You agree that we have no obligation to perform, in any respect, any contracts relating to any Accounts. 
  
 3. Invoicing. You agree to place a notice (in form and content
acceptable to us) on each invoice and invoice equivalent that the Account is sold, assigned and payable only to us, and to take all necessary steps so that payments and remittance information are directed to us. All invoices, or their equivalents,
will be promptly mailed or otherwise transmitted by you to your customers at your expense. You will provide us with copies of all invoices (or the equivalent thereof if the invoices were sent electronically), confirmation of the sale of the Accounts
to us and proof of shipment or delivery, all as we may reasonably request. If you fail to provide us with copies of such invoices (or equivalents) or such proofs when requested by us, we will not bear any Credit Risk as to those Accounts.

  
 4. Representations And Warranties. 
  
 4.1. You represent and warrant that: each Account is based upon a bona fide
sale and delivery of inventory or rendition of services made by you in the ordinary course of business; the inventory being sold and the Accounts created are your exclusive property and are not, and will not be, subject to any lien, consignment
arrangement, encumbrance or security interest other than in our favor; all amounts are due in United States Dollars; all original invoices bear notice of the sale and assignment to us; any taxes or fees relating to your Accounts or inventory are
solely your responsibility; and none of the Accounts factored with us hereunder represent sales to any subsidiary, affiliate or parent company. You also warrant and represent that: your customers have accepted the goods or services and owe and are
obligated to pay the full amounts stated in the invoices according to their terms, without dispute, claim, offset, defense, deduction, rejection, recoupment, counterclaim or contra account, other than as to returns and allowances as provided in
Section 8 below (the foregoing being referred to in this Agreement as “Customer Claims”). 
  
 4.2. You further represent and warrant that: your legal name is exactly as set forth on the signature page of this Agreement, you are a duly organized and
validly existing business organization incorporated or registered in the state of Delaware, and are qualified to do business in all states where required; the most recent financial statements provided by you to us accurately reflect your financial
condition as of that date and there has been no material adverse change in your financial condition since the date of those financial statements. You agree to furnish us with such information concerning your business affairs and financial condition
as we may reasonably request from time to time, including financial statements as of the end of each fiscal year. 
  
 4.3. You agree that you will promptly notify us of any change in your: name, state of incorporation or registration, location of your chief executive
office, place(s) of business, 

  

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and legal or business structure. Further, you agree that you will promptly notify us of any change in control of the ownership of your business organization,
and of significant lawsuits or proceedings against you. 
  
 5.
Purchase Of Accounts. We shall purchase the Accounts for the gross amount of the respective invoices, less: factoring fees or charges, trade and cash discounts allowable to, or taken by, your customers, credits, cash on account and allowances
(“Purchase Price”). Our purchase of the Accounts will be reflected on the Statement of Account (defined in Section 10 below), which we shall render to you, which will also reflect all credits and discounts made available to
your customers. 
  
 6. Advances. We do not expect to
advance funds to you prior to the collection of the Accounts, but we may do so at your request in our sole discretion, subject to such additional terms and conditions as we may reasonably request. We have the right, at any time and from time to
time, to hold any reserves we deem reasonably necessary as security for the payment and performance of any and all of your Obligations (defined in Section 12 below). All amounts you owe us, including all advances to you and any debit balance in
your Client Position Account (defined in Section 10 below), and any Obligations, are payable on demand and may be charged to your account at any time. 
  
 7. Payment Of Accounts. 
  
 7.1. All payments received by us on the Accounts will be promptly applied to your account with us after crediting your customer’s account. The
Purchase Price for Accounts with respect to which such remittances have been received and applied by us during a week, less any amounts due us, will be transferred and disbursed to you on Thursday of the following week, or on the next business day
thereafter, if said Thursday is not a business day. No checks, drafts or other instruments received by us will constitute final payment of an Account unless and until such items have actually been collected. 
  
 7.2. The amount of the Purchase Price of any Factor Risk Account which
remains unpaid will be deemed collected and will be credited to your account as of the earlier of the following dates: 
  
 (a) the date of the Account’s longest maturity if a proceeding or petition is filed by or against the customer under any state or federal bankruptcy
or insolvency law, or if a receiver or trustee is appointed for the customer; or 
  
 (b) the last day of the third month following the Account’s longest maturity date if such Account remains unpaid as of said date without the occurrence of any of the events specified in clause (a) above.

  
 If any Factor Risk Account credited to you was not paid for any reason other
than Credit Risk, we shall reverse the credit and charge your account accordingly, and such Account is then deemed to be a Client Risk Account. 
  

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 8. Customer Claims And Charge Backs. 
  
 8.1. You must notify us promptly of any matter affecting the value, enforceability or collectibility of any Account and of
all Customer Claims. You agree to promptly issue credit memoranda or otherwise adjust the customer’s account upon accepting returns or granting allowances. For full invoice credit memoranda, you agree to send duplicate copies thereof to us and
to confirm their assignment to us. We shall cooperate with you in the adjustment of Customer Claims, but we retain the right to adjust Customer Claims on Factor Risk Accounts directly with customers, upon such terms as we in our sole discretion may
deem advisable. 
  
 8.2. We may at any time charge back to your
account the amount of: (a) any Factor Risk Account which is not paid in full when due for any reason other than Credit Risk; (b) any Factor Risk Account which is not paid in full when due because of an act of God, civil strife, or war;
(c) anticipation (interest) deducted by a customer on any Account; (d) Customer Claims; (e) any Client Risk Account which is not paid in full when due; and (f) any Account for which there is a breach of any representation or
warranty. A charge back does not constitute a reassignment of an Account. We shall immediately charge any deduction taken by a customer to your account. 
  
 8.3. We may at any time charge to your account the amount of: (a) payments we receive on client risk Accounts which we are required at any time to
turnover or return (including preference claims); (b) all remittance expenses (including incoming wire charges, currency conversion fees and stop payment fees), other than stop payment fees on Factor Risk Accounts; (c) expenses, collection
agency fees and attorneys’ fees incurred by us in collecting or attempting to collect any Client Risk Account or any Obligation (defined in Section 12 below); and (d) our fees for handling collections on client risk Accounts which you
have requested us to process, as provided in the Guide (see Section 18.2 below). 
  
 9. Handling And Collecting Accounts; Returned Goods. 
  
 9.1. As owners of the Factor Risk Accounts, we have the right to: (a) bring suit, or otherwise enforce collection, in your name or ours; (b) modify the terms of payment (c) settle, compromise or
release, in whole or in part, any amounts owing, and (d) issue credits in your name or ours. To the extent applicable, you waive any and all claims and defenses based on suretyship. If moneys are due and owing from a customer for both Factor
Risk Accounts and Client Risk Accounts, you agree that any payments or recoveries received on such Accounts may be applied first to any Factor Risk Accounts. Once you have granted or issued a discount, credit or allowance on any Account, you have no
further interest therein. Any checks, cash, notes or other documents or instruments, proceeds or property received with respect to the Accounts must be held by you in trust for us, separate from your own property, and immediately turned over to us
with proper endorsements. We may endorse your name or ours on any such check, draft, instrument or document. 
  
 9.2. As owners and assignees of the Accounts and all proceeds thereof, upon our written notice, you will, at your expense, comply with our instructions
relative to any and all returned, rejected, reclaimed or repossessed inventory (“Returned Goods”). 
  

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 10. Statement Of Account. After the end of each month, we shall send you certain reports
reflecting Accounts purchased, advances made, if any, fees and charges and all other financial transactions between us during that month (“Reports”). The Reports sent to you each month include a Statement of Account reflecting
transactions in three sections: Accounts Receivable, Client Position Account and Funds In Use. The Reports shall be deemed correct and binding upon you and shall constitute an account stated between us unless we receive your written statement of
exceptions within thirty (30) days after same are mailed to you. 
  
 11. Grant Of Security Interest. 
  
 11.1. You
hereby assign and grant to us a continuing security interest in all of your right, title and interest in and to all of your now existing and future (herein collectively the “Collateral”): (a) accounts (including the Accounts),
instruments, documents, chattel paper (including electronic chattel paper), and any other obligations owing to you; (b) unpaid seller’s rights (including rescission, repossession, replevin, reclamation and stoppage in transit);
(c) rights to any inventory represented by the foregoing, including Returned Goods; (d) reserves and credit balances arising hereunder; (e) guarantees, collateral, supporting obligations and letter of credit rights with respect to the
foregoing; (f) insurance policies, proceeds or rights relating to the foregoing; (g) general intangibles (including all payment intangibles and all other rights to payment); (h) cash and non-cash proceeds of the foregoing; and
(h) Books and Records (defined in Section 13 below) evidencing or pertaining to the foregoing. 
  
 11.2. You agree to comply with all applicable laws to perfect our security interest in collateral pledged to us hereunder, and to execute such documents
as we may require to effectuate the foregoing and to implement this Agreement. You irrevocably authorize us to file financing statements, and all amendments and continuations with respect thereto, all in order to create, perfect or maintain our
security interest in the Collateral, and you hereby ratify and confirm any and all financing statements, amendments and continuations with respect thereto heretofore and hereafter filed by us pursuant to the foregoing authorization. 
  
 12. Obligations Secured. The security interest granted hereunder and
any lien or security interest that we now or hereafter have in any of your other assets, collateral or property, secure the payment and performance of all of your now existing and future indebtedness and obligations to us, whether absolute or
contingent, whether arising under this Agreement or any other agreement or arrangement between us, by operation of law or otherwise (“Obligations”). Obligations also includes ledger debt (which means indebtedness for goods and
services purchased by you from any party whose accounts receivable are factored or financed by us), and indebtedness arising under any guaranty, credit enhancement or other credit support granted by you in our favor. Any reserves or balances to your
credit and any other assets, collateral or property of yours in our possession constitutes security for any and all Obligations. 
  
 13. Books And Records And Examinations. 
  
 13.1. You agree to maintain such Books and Records concerning the Accounts as we may reasonably request and to reflect our ownership of the Accounts
therein. “Books and Records” means your accounting and financial records (whether paper, computer or electronic), data, tapes, discs, or other media, and all programs, files, records and procedure manuals relating thereto, wherever
located. 
  

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 13.2. Upon our reasonable request, you agree to make your Books and Records available to us for
examination and to permit us to make copies or extracts thereof. Also, you agree to permit us to visit your premises during your business hours and to conduct such examinations as we deem reasonably necessary. To cover our costs and expenses of any
such examinations, we shall charge you a fee for each day, or part thereof, during which such examination is conducted, plus any out-of-pocket costs and expenses incurred by us, as provided in the Guide (see Section 18.2 below). 
  
 14. Interest. 
  
 14.1. Interest is charged on any adjustments under this Agreement and on any
advances that may be made under section 6 above, as of the last day of each month based on the daily debit balances in your Funds In Use account for that month, at a rate equal to the greater of: (a) the sum of 1.5% plus the JPMorgan Rate
(defined below), or (b) 5% per annum. The JPMorgan Rate is the per annum rate of interest publicly announced by JPMorgan Chase Bank (or its successor) in New York, New York from time to time as its prime rate, and is not intended to be the
lowest rate of interest charged by JPMorgan Chase Bank to its borrowers. Any change in the rate of interest hereunder due to a change in the JPMorgan Rate will take effect as of the first of the month following such change in the JPMorgan Rate. All
interest is calculated on a 360 day year. 
  
 14.2. If you, as a
client of ours, purchase goods or services from another client of ours and your payments on these invoices are not timely received, a late interest payment, at our then late interest rate, will be charged to your account with us and shall be deemed
an Obligation under this Agreement. 
  
 14.3. In no event will
interest charged hereunder exceed the highest lawful rate. In the event, however, that we do receive interest in excess of the highest lawful rate, you agree that your sole remedy would be to seek repayment of such excess, and you irrevocably waive
any and all other rights and remedies which may be available to you under law or in equity. 
  
 15. Factoring Fees And Other Charges. 
  
 15.1. For our services hereunder, you will pay us a factoring fee or charge as set forth below on the gross face amount of all Accounts factored with us, but in no event less than $5.00 per invoice. 
  
 The factoring fee will be as follows: 
  
 (a) 1.25% on the gross face amount of all Accounts factored with us during
each calendar month on the first Five Million Dollars ($5,000,000.00) of Accounts during any Contract Year; and 
  
 (b) 1% on the gross face amount of all Accounts factored with us during each calendar month on Accounts in excess of Five Million Dollars ($5,000,000.00)
up to Ten Million Dollars ($10,000,000.00) during such Contract Year; and 
  

 6 

 (c) 0.9% on the gross face amount of all Accounts factored with us during each calendar month on
Accounts in excess of Ten Million Dollars ($10,000,000.00) during such Contract Year. 
  
 The term “Contract Year” shall mean the twelve-month period commencing July 1, 2005 and each consecutive twelve-month period thereafter. 
  
 In addition, you will pay a fee of one-quarter of one percent ( 1/4 of 1%) of the gross face amount of each Account for each thirty (30) day period or part thereof by which the longest terms of sale applicable to such Account exceed
sixty (60) days (whether as originally stated or as a result of a change of terms requested by you or the customer). For Accounts arising from sales to customers located outside the fifty states of the United States of America, you will pay us
an additional factoring fee of 1% of the gross face amount of all such Accounts. All factoring fees or charges are due and charged to your account upon our purchase of the underlying Account. Commencing July 1, 2005, if the actual factoring
fees or charges paid to us by you during any quarter or part thereof (“Period”) is less than $12,500.00 (“Minimum Factoring Fees”), we shall charge your account as of the end of such Period with an amount equal to
the difference between the actual factoring fees or charges paid during such Period and said Minimum Factoring Fees. 
  
 15.2. You agree to pay all costs and expenses incurred by us in connection with or in any way related to: (i) this Agreement or (ii) the
preparation, execution, administration and enforcement of this Agreement, including all reasonable fees and expenses attributable to the services of our attorneys (whether in-house or outside), search fees and public record filing fees. Furthermore,
you agree to pay to us our fees (as more fully set forth in the Guide, see section 18.2 below) including fees for: (a) special reports prepared by us at your request; (b) wire transfers; (c) handling change of terms requests relating
to Accounts; and (d) your usage of our on-line computer services. Beginning on the first of the month six months from the date hereof, you also agree to pay us our fees for: (i) each new customer set-up on our customer accounts receivable
data base and each new customer relationship established for you; (ii) crediting your account with proceeds of non-factored invoices received by us; and (iii) charge backs of invoices factored with us that were paid directly to you. All
such fees will be charged to your account when incurred. We may change our fees from time to time upon notice to you; however, any failure to give you such notice does not constitute a breach of this Agreement and does not impair our ability to
institute any such change. 
  
 15.3. Any tax or fee of any
governmental authority imposed on or arising from any transactions between us, any sales made by you, or any inventory relating to such sales is your sole responsibility (other than income and franchise taxes imposed on us which are not related to
any specific transaction between us). If we are required to withhold or pay any such tax or fee, or any interest or penalties thereon, you hereby indemnify and hold us harmless therefor and we shall charge your account with the full amount thereof.

  
 15.4. In addition to the fees and charges under this
Agreement, you will pay us, as of the date hereof, a facility fee in the amount of $3,000.00 for the initial setup and implementation of your account with us including the fees and expenses of our legal department for the initial preparation and
execution of this Agreement. 
  

 7 

 15.5. If during the next six (6) months from the date hereof, you have not begun to process all
invoices with us by means of Electronic Batch Transmission, then we will charge you a factoring fee of 1.125% instead of the fee provided in Section 15.1, until such time as your invoices are processed by means of Electronic Batch Transmission.

  
 16. Termination. 
  
 16.1. You may terminate this Agreement only as of an Anniversary Date and
then only by giving us at least sixty (60) days prior written notice of termination Upon any termination of this Agreement, we shall be entitled to the unpaid portion of the Minimum Factoring Fees, if any, for such Period or Periods for the
remainder of the term of this Agreement as applicable and as provided in Section 15.1 above, as of the effective date of termination. “Anniversary Date” means the last day of the month occurring one year from the date hereof,
and the same date in each year thereafter. Except as otherwise provided, we may terminate this Agreement at any time by giving you at least sixty (60) days prior written notice of termination. However, we may terminate this Agreement
immediately, without prior notice to you, upon the occurrence of an Event of Default (defined in Section 17.1 below). 
  
 16.2. This Agreement remains effective between us until terminated as herein provided. Unless sooner demanded, all Obligations will become immediately due
and payable upon any termination of this Agreement. 
  
 16.3. All
of our rights, liens and security interests hereunder continue and remain in full force and effect after any termination of this Agreement and pending a final accounting, we may withhold any balances in your account unless we are supplied with an
indemnity satisfactory to us to cover all Obligations. You agree to continue to assign accounts receivable to us and to remit to us all collections on accounts receivable, until all Obligations have been paid in full or we have been supplied with an
indemnity satisfactory to us to cover all Obligations. 
  
 17.
Events Of Default And Remedies Upon Default. 
  
 17.1. It
is an “Event of Default” under this Agreement if: (a) your business ceases or a meeting of your creditors is called; (b) any bankruptcy, insolvency, arrangement, reorganization, receivership or similar proceeding is
commenced by or against you under any federal or state law; (c) you breach any representation, warranty or covenant contained in this Agreement; (d) you fail to pay any Obligation when due, or (e) any default shall have occurred under
any other agreement or arrangement between us which remains uncured for seven (7) days. 
  
 17.2. After the occurrence of an Event of Default which is not waived by us, we may terminate this Agreement without notice to you. We shall then have immediate access to any and all Books and Records as may pertain
to the Accounts, Returned Goods and any other collateral hereunder. Furthermore, as may be necessary to administer and enforce our rights in the Accounts, Returned Goods and any other collateral hereunder, or to facilitate the collection or
realization thereof, we have your permission to use (at your expense) your personnel, supplies, equipment, computers and space, at your place of business or elsewhere. 
  

 8 

 17.3. After the occurrence of an Event of Default which is not waived by us, with respect to any other
property or collateral in which we have a security interest, we shall have all of the rights and remedies of a secured party under Article 9 of the Uniform Commercial Code. If notice of intended disposition of any such property or collateral is
required by law, it is agreed that five (5) days notice constitutes reasonable notice. The net cash proceeds resulting from the exercise of any of the foregoing rights, after deducting all charges, costs and expenses (including reasonable
attorneys’ fees) will be applied by us to the payment or satisfaction of the Obligations, whether due or to become due, in such order as we may elect. You remain liable to us for any deficiencies. With respect to Factor Risk Accounts and
Returned Goods relating thereto, you hereby confirm that we are the owners thereof, and that our rights of ownership permit us to deal with this property as owner and you confirm that you have no interest therein. 
  
 18. Miscellaneous Provisions. 
  
 18.1. This Agreement, and all attendant documentation, as the same may be
amended from time to time, constitutes the entire agreement between us with regard to the subject matter hereof, and supersedes any prior agreements or understandings. This Agreement can be changed only by a writing signed by both of us. Our failure
or delay in exercising any right hereunder will not constitute a waiver thereof or bar us from exercising any of our rights at any time. The validity, interpretation and enforcement of this Agreement is governed by the laws of the State of
California, excluding the conflict laws of such State. 
  
 18.2.
The Client Service Guide, as supplemented and amended from time to time (the “Guide”) has been furnished to you or is being furnished to you concurrently with the signing of this Agreement, and by your signature below you
acknowledge receipt thereof. The Guide provides information on credit approval processes, accounting procedures and fees. The procedures for Electronic Batch Transmission are covered in supplemental instructions to the Guide. From time to time, we
may provide you with amendments, additions, modifications, revisions or supplements to the Guide, which will be operative for transactions between us. All information and exhibits contained in the Guide, on any screen accessed by you, and on any
print-outs, reports, statements or notices received by you are, and will be, our exclusive property and are not to be disclosed to, or used by, anyone other than you, your employees or your professional advisors, in whole or in part, unless we have
consented in writing. 
  
 18.3. This Agreement binds and benefits
each of us and our respective successors and assigns, provided, however, that you may not assign this Agreement or your rights hereunder without our prior written consent. 
  
 18.4. Section headings are for convenience only and are not controlling. The use of “including” means
“including without limitation”. 
  
 18.5. If any
provision of this Agreement is contrary to, prohibited by, or deemed invalid under applicable laws or regulations, such provision will be inapplicable and deemed omitted to such extent, but the remainder will not be invalidated thereby and will be
given effect so far as possible. 
  
 [Remainder of this page
intentionally left blank] 
  

 9 

 19. Jury Trial Waiver. TO THE EXTENT PERMITTED BY APPLICABLE LAW, WE EACH HEREBY
WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING DIRECTLY OR INDIRECTLY OUT OF THIS AGREEMENT, OR ANY OTHER AGREEMENT OR TRANSACTION BETWEEN US OR TO WHICH WE ARE PARTIES. 
  
 If the foregoing is in accordance with your understanding, please so indicate
by signing and returning to us the original and one copy of this Agreement. This Agreement will take effect as of the date set forth above but only after being accepted below by one of our officers in Los Angeles, California, after which we shall
forward a fully executed copy to you for your files. 
  

					
	Very truly yours,
	
	THE CIT GROUP/COMMERCIAL SERVICES, INC.
		
	 By:
	 	/s/Vivian Lee
	 	 	Name:	 	Vivian Lee
	 	 	Title:	 	Vice President and Director of Business Development - Asian Pacific

  
 Read and Agreed to: 
  
 AMERICAN TELECOM
SERVICES, INC. 
  

					
	 By:
	 	/s/Bruce Hahn
	 	 	Name:	 	Bruce Hahn
	 	 	Title:	 	CEO

  
  

					
	Accepted at Los Angeles, California:
	
	THE CIT GROUP/COMMERCIAL SERVICES, INC.
		
	 By:
	 	/s/Peggy Joyce
	 	 	Name:	 	Peggy Joyce
	 	 	Title:	 	 Vice President
 Client Service
Director

  

 10 

 American Telecom Services, Inc. 
 2466 Peck Road 
 City of Industry, California 90601 
  
 CUSTOMER
SURCHARGE LETTER AGREEMENT 
  
 Ladies and
Gentlemen: 
  
 We refer to the Factoring Agreement between us, as supplemented
and amended (the “Agreement”). Capitalized terms used herein without definition shall have the meanings ascribed to them in the Agreement. 
  
 This shall confirm our mutual understanding and agreement that, notwithstanding anything to the contrary contained in the Agreement, all of your accounts receivable
arising from your sales to any of the customers listed on the attached Schedule and their respective divisions, trade names, affiliates and subsidiaries including, but not limited to, those listed on the attached Schedule (collectively, the
“Customers”; all such accounts receivable being referred to herein as “Customer Accounts”) shall be subject to the following express terms and conditions: 
  

	A.	Only those sales to the Customers that are made by you on terms of sale which do not exceed the terms listed on the attached Schedule will be eligible for credit approval under the
Agreement. 

  

	B.	We shall charge your account with a Surcharge based on the gross face amount of each Customer Account approved by us as to credit whose terms of sale do not exceed the days listed,
at the Surcharge Rate applicable to the Customer involved, all as set forth on the attached Schedule. The Surcharge shall be in addition to any other fees or commissions we are entitled to charge you under the Agreement, and shall be due and charged
to your account in the same manner as factoring fees or commissions are charged thereunder, and shall not be included in the calculation of any minimum fees or commissions under the Agreement. 

  

	C.	You shall continue to request credit approvals from our Credit Department on all orders from each Customer as per the Agreement. Any Customer Account whose terms of sale exceed the
terms listed on the Schedule, or which has not been credit approved by us, shall be at your sole Credit Risk. 

  

	D.	 All payments that we receive from any Customer prior to the commencement of any liquidation of all or substantially all of its assets, or prior to the commencement
by or against it of any case under Chapter 7 or Chapter 11 (as applicable) of the Bankruptcy Code (herein a “Liquidation”), shall be applied by us in accordance with our normal procedures. If at the commencement of a
Liquidation with respect to any Customer, there are any Customer Accounts on our books at your Credit Risk, as well as Customer Accounts on our books at our Credit Risk, then any dividends or other payments that we receive relating to any such
Customer Accounts shall be applied in reduction of the 

  

 11 

	 	 
outstanding amounts of all such Customer Accounts at your and our Credit Risk, in proportion to the percentage of your and our Credit Risk on such Customer
Accounts. 

  
 Except as herein specifically provided, the
Agreement remains in full force and effect in accordance with its terms. If you are in agreement with the foregoing, please so indicate by signing and returning to us the enclosed copy of this letter. 
  

					
	Very truly yours,
	
	THE CIT GROUP/COMMERCIAL SERVICES, INC.
		
	 By:
	 	/s/ Vivian Lee
	 	 	Name:	 	Vivian Lee
	 	 	Title:	 	Vice President and Director of Business Development—Asian Pacific

 Read and Agreed to: 
  
 AMERICAN TELECOM SERVICES, INC. 
  

					
	 By:
	 	/s/ Adam Somer or Bruce Hahn
	 	 	Name:	 	Adam Somer
	 	 	Title:	 	President Communications Services

  

					
	 By:
	 	/s/ Bruce Hahn
	 	 	Name:	 	Bruce Hahn
	 	 	Title:	 	CEO

  

 12

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