Document:

OCRX Exhibit 10.2 2Q 2014

Exhibit 10.2
CONSULTING AGREEMENT
This Consulting Agreement (the “Agreement”) is made effective as of June 2, 2014 (the “Effective Date”), by and between Ocera, a Delaware corporation, with its principal place of business being 525 University Avenue, Suite 610, Palo Alto, CA 94301 (the “Company”) and Danforth Advisors, LLC, a Massachusetts limited liability corporation, with its principal place of business being 91 Middle Road, Southborough, MA 01772 (“Danforth”).  The Company and Danforth are herein sometimes referred to individually as a “Party” and collectively as the “Parties.”
WHEREAS, the Company possesses know-how and proprietary technology related to the hepatic encephalopathy and

WHEREAS, Danforth has expertise in financial and corporate operations and strategy; and

WHEREAS, Danforth desires to serve as an independent consultant for the purpose of providing the Company with certain strategic and financial advice and support services, as more fully described in Exhibit A attached hereto, (the "Services"); and 

WHEREAS, the Company wishes to engage Danforth on the terms and conditions set forth herein.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which are hereby acknowledged, the Parties agree and covenant as follows.
		
	1.
	Services of Consultant.  Danforth will assist the Company with matters relating to the Services.  The Services are more fully described in Exhibit A attached hereto.  Danforth and the Company will review the Services on a monthly basis to prioritize and implement the tasks listed on Exhibit A. 

		
	2.
	Compensation for Services.  In full consideration of Danforth’s full, prompt and faithful performance of the Services, the Company shall compensate Danforth a consulting fee more fully described in Exhibit A (the “Consulting Fee”).  Danforth shall, from time to time, but not more frequently than twice per calendar month invoice the Company for Services rendered and such invoice will be paid upon fifteen (15) days of receipt. Each month the Parties shall evaluate jointly the current fee structure and scope of Services. Upon termination of this Agreement pursuant to Section 3, no compensation or benefits of any kind as described in this Section 2 shall be payable or issuable to Danforth after the effective date of such termination.  In addition, the Company will reimburse Danforth for reasonable out-of-pocket business expenses, including but not limited to travel and parking, incurred by Danforth in performing the Services hereunder, upon submission by Danforth of supporting documentation reasonably acceptable to the Company.  Any such accrued expenses in any given three (3) month period that exceed one thousand dollars ($1,000) shall be submitted to the Company for its prior written approval.  

		
	3.
	Term and Termination. The term of this Agreement will commence on the Effective Date and will continue through the anniversary of such date in the next calendar year (the “Term”). This Agreement may be extended for an additional period by mutual written agreement.  This Agreement may be terminated by either Party hereto: (a) with Cause (as defined below), upon thirty (30) days prior written notice to the other Party; or (b) without cause upon ninety (90) days prior written notice to the other Party. For purposes of this Section 3, “Cause” shall include: (i) a breach of the terms of this Agreement which is not cured within thirty (30) days of written notice of such default or (ii) the commission of any act of fraud, embezzlement or deliberate disregard of a rule or policy of the Company.  

		
	4.
	Time Commitment. Danforth will devote such time to perform the Services under this Agreement as may reasonably be required.      

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	5.
	Place of Performance.  Danforth will perform the Services at such locations upon which the Company and Danforth may mutually agree.  Danforth will not, without the prior written consent of the Company, perform any of the Services at any facility or in any manner that might give anyone other than the Company any rights to or allow for disclosure of any Confidential Information (as defined below).  

		
	6.
	Compliance with Policies and Guidelines.  Danforth will perform the Services in accordance with all rules or policies adopted by the Company that the Company discloses in writing to Danforth.

		
	7.
	Confidential Information.  Danforth acknowledges and agrees that during the course of performing the Services, the Company may furnish, disclose or make available to Danforth information, including, but not limited to, material, compilations, data, formulae, models, patent disclosures, procedures, processes, business plans, projections, protocols, results of experimentation and testing, specifications, strategies and techniques, and all tangible and intangible embodiments thereof of any kind whatsoever (including, but not limited to, any apparatus, biological or chemical materials, animals, cells, compositions, documents, drawings, machinery, patent applications, records and reports), which is owned or controlled by the Company and is marked or designated as confidential at the time of disclosure or is of a type that is customarily considered to be confidential information (collectively the “Confidential Information").  Danforth acknowledges that the Confidential Information or any part thereof is the exclusive property of the Company and shall not be disclosed to any third party without first obtaining the written consent of the Company.  Danforth further agrees to take all practical steps to ensure that the Confidential Information, and any part thereof, shall not be disclosed or issued to its affiliates, agents or employees, except on like terms of confidentiality.  The above provisions of confidentiality shall apply for a period of five (5) years.  

		
	8.
	Intellectual Property.  Danforth agrees that all ideas, inventions, discoveries, creations, manuscripts, properties, innovations, improvements, know‐how, inventions, designs, developments, apparatus, techniques, methods, and formulae that Danforth conceives, makes, develops or improves as a result of performing the Services, whether or not reduced to practice and whether or not patentable, alone or in conjunction with any other party and whether or not at the request or upon the suggestion of the Company (all of the foregoing being hereinafter collectively referred to as the “Inventions”), shall be the sole and exclusive property of the Company.  Danforth hereby agrees in consideration of the Company’s agreement to engage Danforth and pay compensation for the Services rendered to the Company and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged that Danforth shall not, without the prior written consent of the Company, directly or indirectly, consult for, or become an employee of, any company which conducts business in the Field of Interest anywhere in the world.  As used herein, the term “Field of Interest” shall mean the research, development, manufacture and/or sale of the products resulting from the Company’s technology. The limitations on competition contained in this Section 7 shall continue during the time that Danforth performs any Services for the Company (whether as a consultant, employee or otherwise), and for a period of three (3) months following the termination of any such Services that Danforth performs for the Company.  If any part of this section should be determined by a court of competent jurisdiction to be unreasonable in duration, geographic area, or scope, then this Section 7 is intended to and shall extend only for such period of time, in such area and with respect to such activity as is determined to be reasonable.  Except as expressly provided herein, nothing in this Agreement shall preclude Danforth from consulting for or being employed by any other person or entity.  

		
	9.
	Non Solicitation. All personnel representing Danforth are contracted agents of Danforth.  As such, they are obligated to provide the Services to the Company and are obligated to Danforth under confidentiality, non-compete, and non-solicitation agreements.  Accordingly, they are not retainable as employees or contractors by the Company and the Company hereby agrees not to solicit, hire or retain their services for so long as they are contracted agents of Danforth and for two (2) years thereafter.  Should the Company violate this restriction, it agrees to pay Danforth liquidated damages equal to fifteen thousand ($15,000) dollars for each Danforth contracted agent solicited and/or hired by the Company in violation of this Agreement, plus Danforth’s reasonable attorneys’ fees and costs incurred in enforcing this agreement should the Company fail or refuse to pay the liquidated damages amount in full within thirty (30) days following its violation.

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	10.
	Placement Services. In the event that Danforth refers a potential employee to the Company and that individual is hired, Danforth shall receive a fee equal to fifteen percent (15%) of the employee’s starting annual base salary and target annual bonus.  This fee is due and owing whether an individual is hired, directly or indirectly on a permanent basis or on a contract or consulting basis by the Company, as a result of Danforth’s efforts within one (1) year of the date applicant(s) are submitted to the Company. Such payment is due within thirty (30) days of the employee’s start date.

		
	11.
	No Implied Warranty. Except for any express warranties stated herein, the Services are provided on an "as is" basis, and the Company disclaims any and all other warranties, conditions, or representations (express, implied, oral or written), relating to the Services or any part thereof.  Further, in performing the Services Danforth is not engaged to disclose illegal acts, including fraud or defalcations, which may have taken place.  The foregoing notwithstanding, Danforth will promptly notify the Company if Danforth becomes aware of any such illegal acts during the performance of the Services.  Because the Services do not constitute an examination in accordance with standards established by the American Institute of Certified Public Accountants (the “AICPA”), Danforth is precluded from expressing an opinion as to whether financial statements provided by the Company are in conformity with generally accepted accounting principles or any other standards or guidelines promulgated by the AICPA, or whether the underlying financial and other data provide a reasonable basis for the statements.

		
	12.
	Indemnification.  Each Party hereto agrees to indemnify and hold the other Party hereto, its directors, officers, agents and employees harmless against any claim based upon circumstances alleged to be inconsistent with such representations and/or warranties contained in this Agreement. Further, the Company shall indemnify and hold harmless Danforth and any of its subcontractors against any claims, losses, damages or liabilities (or actions in respect thereof) that arise out of or are based on the Services performed hereunder, except for any such claims, losses, damages or liabilities arising out of the gross negligence or willful misconduct Danforth or any of its subcontractors. The Company will endeavor to add Consultant and any applicable subcontractor to its insurance policies as additional insureds.

		
	13.
	Independent Contractor.  Danforth is not, nor shall Danforth be deemed to be at any time during the term of this Agreement, an employee of the Company, and therefore Danforth shall not be entitled to any benefits provided by the Company to its employees, if applicable.  Danforth’s status and relationship with the Company shall be that of an independent contractor and consultant.  Danforth shall not state or imply, directly or indirectly, that Danforth is empowered to bind the Company without the Company's prior written consent.  Nothing herein shall create, expressly or by implication, a partnership, joint venture or other association between the parties.  Danforth will be solely responsible for payment of al charges and taxes arising from his or her relationship to the Company as a consultant.

		
	14.
	Records.  Upon termination of Danforth’s relationship with the Company, Danforth shall deliver to the Company any property or Confidential Information of the Company relating to the Services which may be in its possession including products, project plans, materials, memoranda, notes, records, reports, laboratory notebooks, or other documents or photocopies and any such information stored using electronic medium.

		
	15.
	Notices.  Any notice under this Agreement shall be in writing (except in the case of verbal communications, emails and teleconferences updating either Party as to the status of work hereunder) and shall be deemed delivered upon personal delivery, one day after being sent via a reputable nationwide overnight courier service or two days after deposit in the mail or on the next business day following transmittal via facsimile.  Notices under this Agreement shall be sent to the following representatives of the Parties: 

If to the Company:
Name:        Linda Grais
Title:        Chief Executive Officer

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Address:        525 University Avenue, Suite 610
Palo Alto, CA 94301
650-475-0158
E-mail:        lgrais@ocerainc.com
    
If to Danforth:

Name:        Gregg Beloff
Title:        Managing Director    
Address:        91 Middle Road 
Southborough, MA 01772
Phone:        1 617 686-7679
E-mail:        gbeloff@danforthadvisors.com
		
	16.
	Assignment and Successors.  This Agreement may not be assigned by a Party without the consent of the other which shall not be unreasonably withheld, except that each Party may assign this Agreement and the rights, obligations and interests of such Party, in whole or in part, to any of its Affiliates, to any purchaser of all or substantially all of its assets or to any successor corporation resulting from any merger or consolidation of such Party with or into such corporation.

		
	17.
	Force Majeure.  Neither Party shall be liable for failure of or delay in performing obligations set forth in this Agreement, and neither shall be deemed in breach of its obligations, if such failure or delay is due to natural disasters or any causes beyond the reasonable control of either Party.  In event of such force majeure, the Party affected thereby shall use reasonable efforts to cure or overcome the same and resume performance of its obligations hereunder.

		
	18.
	Headings.  The Section headings are intended for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

		
	19.
	Integration; Severability.  This Agreement is the sole agreement with respect to the subject matter hereof and shall supersede all other agreements and understandings between the Parties with respect to the same.  If any provision of this Agreement is or becomes invalid or is ruled invalid by any court of competent jurisdiction or is deemed unenforceable, it is the intention of the Parties that the remainder of the Agreement shall not be affected.

		
	20.
	Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, excluding choice of law principles.  The Parties agree that any action or proceeding arising out of or related in any way to this Agreement shall be brought solely in a Federal or State court of competent jurisdiction sitting in the Commonwealth of Massachusetts.

		
	21.
	Counterparts.  This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one agreement.

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If you are in agreement with the foregoing, please sign where indicated below, whereupon this Agreement shall become effective as of the Effective Date.

DANFORTH ADVISORS, LLC            COMPANY 

By:     /s/ Sharon Tetlow ___              By:     /s/ Linda S. Grais, M.D.                                 

Print Name:    Sharon Tetlow                        Print Name:    Linda Grais                                          
        
Title:     Managing Director                          Title:     Chief Executive Officer                                      

Date:     June 2, 2014______                                      Date:     June 2, 2014__________    ____        

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EXHIBIT A

Description of Services and Schedule of Fees

Services: 
		
	•
	Active oversight of finance and accounting operational functions including cash management, SOX, reporting

		
	•
	Audit committee and disclosure committee support including reporting, preparing meeting materials

		
	•
	Periodic SEC filings and certification signoff, quarterly conference call management

		
	•
	Investor, conference, road show and banker and analyst relationship outreach and management

		
	•
	Manage treasury, risk management (insurance), employee equity incentive programs and reporting

		
	•
	Other as needed

		
	•
	All subject to mutual agreement and adjustment by Danforth and the Company

Fees:     Sharon Tetlow $325/hour; estimated 2 days per week

6China Shengda Packaging Group Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

Exhibit 10.1

CHINA SHENGDA PACKAGING GROUP INC. 
INDEPENDENT DIRECTOR
AGREEMENT 

THIS AGREEMENT (The “Agreement”) is made as of the _____
day of ________, 2014 and is by and between China Shengda Packaging Group Inc.,
a Nevada corporation (hereinafter referred to as the “Company”), and
__________________ (hereinafter referred to as the “Director”). 

BACKGROUND 

The Board of Directors of the Company desires to appoint the
Director to fill an existing vacancy and to have the Director perform the duties
of an independent director and the Director desires to be so appointed for such
position and to perform the duties required of such position in accordance with
the terms and conditions of this Agreement. 

AGREEMENT 

In consideration for the above recited promises and the mutual
promises contained herein, the adequacy and sufficiency of which are hereby
acknowledged, the Company and the Director hereby agree as follows: 

1. DUTIES. The Company requires that the Director
be available to perform the duties of an independent director customarily
related to this function as may be determined and assigned by the Board of
Directors of the Company and as may be required by the Company’s constituent
instruments, including its certificate or articles of incorporation, bylaws and
its corporate governance and board committee charters, each as amended or
modified from time to time, and by applicable law, including the Nevada Revised
Statutes (the “NRS”). The Director agrees to devote as much time as is
necessary to perform completely the duties as the Director of the Company,
including duties as a member of the Audit Committee and such other committees as
the Director may hereafter be appointed to. The Director will perform such
duties described herein in accordance with the general fiduciary duty of
directors arising under the NRS. 

2. TERM. The term of this Agreement shall
commence as of the date of the Director’s appointment by the Board of Directors
of the Company and shall continue until the Director’s removal or resignation.

3. COMPENSATION. For all services to be rendered
by Director in any capacity hereunder, the Company agrees to pay Director a fee
of $[ ] in cash per year payable in equal quarterly installments (the “Cash
Compensation”). Director shall be responsible for his or her own individual
income tax payment on the Cash Compensation in jurisdictions where Director
resides. U.S. withholding tax is not imposed on the Cash Compensation paid to
Director who is not a resident alien or a U.S. citizen for services performed
outside the United States.

4. EXPENSES. In addition to the Cash Compensation
provided in paragraph 3 hereof, the Company will reimburse the Director for
pre-approved reasonable business related expenses incurred in good faith in the
performance of the Director’s duties for the Company. Such payments shall be made by the Company upon submission by
the Director of a signed statement itemizing the expenses incurred. Such
statement shall be accompanied by sufficient documentary matter to support the
expenditures. 

5. CONFIDENTIALITY. The Company and the Director
each acknowledge that, in order for the intents and purposes of this Agreement
to be accomplished, the Director shall necessarily be obtaining access to
certain confidential information concerning the Company and its affairs,
including, but not limited to business methods, information systems, financial
data and strategic plans which are unique assets of the Company
(“Confidential Information”). The Director covenants not to, either
directly or indirectly, in any manner, utilize or disclose to any person, firm,
corporation, association or other entity any Confidential Information. 

6. NON-COMPETE. During the term of this Agreement
and for a period of twelve (12) months following the Director’s removal or
resignation from the Board of Directors of the Company or any of its
subsidiaries or affiliates (the “Restricted Period”), the Director shall
not, directly or indirectly, (i) in any manner whatsoever engage in any capacity
with any business competitive with the Company’s current lines of business or
any business then engaged in by the Company, any of its subsidiaries or any of
its affiliates (the “Company's Business”) for the Director’s own benefit
or for the benefit of any person or entity other than the Company or any
subsidiary or affiliate; or (ii) have any interest as owner, sole proprietor,
shareholder, partner, lender, director, officer, manager, employee, consultant,
agent or otherwise in any business competitive with the Company's Business;
provided, however, that the Director may hold, directly or
indirectly, solely as an investment, not more than two percent (2%) of the
outstanding securities of any person or entity which are listed on any national
securities exchange or regularly traded in the over-the-counter market
notwithstanding the fact that such person or entity is engaged in a business
competitive with the Company's Business. In addition, during the Restricted
Period, the Director shall not develop any property for use in the Company’s
Business on behalf of any person or entity other than the Company, its
subsidiaries and affiliates. 

7. TERMINATION. With or without cause, the Company and
the Director may each terminate this Agreement at any time upon ten (10) days
written notice, and the Company shall be obligated to pay to the Director the
compensation and expenses due up to the date of the termination. Nothing
contained herein or omitted herefrom shall prevent the shareholder(s) of the
Company from removing the Director with immediate effect at any time for any
reason. 

8. INDEMNIFICATION. The Company shall indemnify, defend
and hold harmless the Director, to the full extent allowed by the law of the
State of Nevada, and as provided by, or granted pursuant to, any charter
provision, bylaw provision, agreement (including, without limitation, the
Indemnification Agreement executed herewith), vote of stockholders or
disinterested directors or otherwise, both as to action in the Director’s
official capacity and as to action in another capacity while holding such
office. The Company and the Director are executing an indemnification agreement
in the form attached hereto as Exhibit A. 

9. EFFECT OF WAIVER. The waiver by either party
of the breach of any provision of this Agreement shall not operate as or be
construed as a waiver of any subsequent breach thereof. 

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10. NOTICE. Any and all notices referred to
herein shall be sufficient if furnished in writing at the addresses specified on
the signature page hereto or, if to the Company, to the Company’s address as
specified in filings made by the Company with the U.S. Securities and Exchange
Commission. 

11. GOVERNING LAW. This Agreement shall be
interpreted in accordance with, and the rights of the parties hereto shall be
determined by, the laws of the State of Nevada without reference to that state’s
conflicts of laws principles. 

12. ASSIGNMENT. The rights and benefits of the
Company under this Agreement shall be transferable, and all the covenants and
agreements hereunder shall inure to the benefit of, and be enforceable by or
against, its successors and assigns. The duties and obligations of the Director
under this Agreement are personal and therefore the Director may not assign any
right or duty under this Agreement without the prior written consent of the
Company. 

13. MISCELLANEOUS. If any provision of this
Agreement shall be declared invalid or illegal, for any reason whatsoever, then,
notwithstanding such invalidity or illegality, the remaining terms and
provisions of the this Agreement shall remain in full force and effect in the
same manner as if the invalid or illegal provision had not been contained
herein. 

14. ARTICLE HEADINGS. The article headings
contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement. 

15. COUNTERPARTS. This Agreement may be
executed in any number of counterparts, all of which taken together shall
constitute one instrument. Facsimile execution and delivery of this Agreement is
legal, valid and binding for all purposes. 

16. ENTIRE AGREEMENT. Except as provided
elsewhere herein, this Agreement sets forth the entire agreement of the parties
with respect to its subject matter and supersedes all prior agreements,
promises, covenants, arrangements, communications, representations or
warranties, whether oral or written, by any officer, employee or representative
of any party to this Agreement with respect to such subject matter. 

[Signature Page Follows]

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IN WITNESS WHEREOF, the parties hereto have caused this
Independent Director Agreement to be duly executed and signed as of the day and
year first above written. 

CHINA SHENGDA PACKAGING GROUP INC.

By:
__________________________________
Name: 
Title: 

Independent Director 

_____________________________________
Name: 

Address: 

 

[Signature Page to Independent Director Agreement] 

EXHIBIT A 

Form of Indemnification Agreement 

(See Attached) 

INDEMNIFICATION AGREEMENT 

This Indemnification Agreement, dated as of the [  ] day
of [  ], 2014 is made by and between China Shengda Packaging Group Inc., a
Nevada corporation (the "Company"), and [DIRECTOR], an officer or director of
the Company (the “Indemnitee”). 

RECITALS 

A. The Company and the Indemnitee recognize that the present
state of the law is too uncertain to provide the Company's officers and
directors with adequate and reliable advance knowledge or guidance with respect
to the legal risks and potential liabilities to which they may become personally
exposed as a result of performing their duties for the Company; 

B. The Company and the Indemnitee are aware of the substantial
growth in the number of lawsuits filed against corporate officers and directors
in connection with their activities in such capacities and by reason of their
status as such; 

C. The Company and the Indemnitee recognize that the cost of
defending against such lawsuits, whether or not meritorious, is typically beyond
the financial resources of most officers and directors of the Company; 

D. The Company and the Indemnitee recognize that the legal
risks and potential liabilities, and the threat thereof, associated with
proceedings filed against the officers and directors of the Company bear no
reasonable relationship to the amount of compensation received by the Company's
officers and directors; 

E. The Company, after reasonable investigation prior to the
date hereof, has determined that the liability insurance coverage available to
the Company as of the date hereof is inadequate, unreasonably expensive or both.
The Company believes, therefore, that the interest of the Company and its
current and future shareholders would be best served by a combination of (i)
such insurance as the Company may obtain pursuant to the Company's obligations
hereunder and (ii) a contract with its officers and directors, including the
Indemnitee, to indemnify them to the fullest extent permitted by law (as in
effect on the date hereof, or, to the extent any amendment may expand such
permitted indemnification, as hereafter in effect) against personal liability
for actions taken in the performance of their duties to the Company; 

F. Section 78.7502 of the Nevada Revised Statutes empowers
Nevada corporations to indemnify their officers and directors and further states
that the indemnification provided by Section 78.7502 shall not be deemed
exclusive of any other rights to which those seeking indemnification may be
entitled under the articles of incorporation or any bylaw, agreement, vote of
shareholders or disinterested directors or otherwise, both as to action in an
official capacity and as to action in another capacity while holding such
office; thus, Section 78.7502 does not by itself limit the extent to which the
Company may indemnify persons serving as its officers and directors; 

G. The Company's Amended Articles of Incorporation and Amended
and Restated Bylaws authorize the indemnification of the officers and directors
of the Company in excess of that expressly permitted by Section 78.7502; 

H. The Board of Directors of the Company has concluded that, to
retain and attract talented and experienced individuals to serve as officers and
directors of the Company and to encourage such individuals to take the business
risks necessary for the success of the Company, it is necessary for the Company
to contractually indemnify its officers and directors, and to assume for itself
liability for expenses and damages in connection with claims against such
officers and directors in connection with their service to the Company, and has
further concluded that the failure to provide such contractual indemnification
could result in great harm to the Company and its shareholders; 

I. The Company desires and has requested the Indemnitee to
serve or continue to serve as a director or officer of the Company, free from
undue concern for the risks and potential liabilities associated with such
services to the Company; and 

J. The Indemnitee is willing to serve, or continue to serve,
the Company, provided, and on the expressed condition, that she is furnished
with the indemnification provided for herein. 

AGREEMENT 

NOW, THEREFORE, the Company and Indemnitee agree as follows:

1. DEFINITIONS. 

(a) “EXPENSES” means, for the purposes of this Agreement, all
direct and indirect costs of any type or nature whatsoever (including, without
limitation, any fees and disbursements of Indemnitee's counsel, accountants and
other experts and other out-of-pocket costs) actually and reasonably incurred by
the Indemnitee in connection with the investigation, preparation, defense or
appeal of a Proceeding; provided, however, that Expenses shall not include
judgments, fines, penalties or amounts paid in settlement of a Proceeding. 

(b) “PROCEEDING” means, for the purposes of this Agreement, any
threatened, pending or completed action or proceeding, whether civil, criminal,
administrative or investigative (including an action brought by or in the right
of the Company) in which Indemnitee may be or may have been involved as a party
or otherwise, by reason of the fact that Indemnitee is or was a director or
officer of the Company, by reason of any action taken by her or of any inaction
on her part while acting as such director or officer or by reason of the fact
that she is or was serving at the request of the Company as a director, officer,
employee or agent of another foreign or domestic corporation, partnership, joint
venture, trust or other enterprise, or was a director or officer of the foreign
or domestic corporation which was a predecessor corporation to the Company or of
another enterprise at the request of such predecessor corporation, whether or
not she is serving in such capacity at the time any liability or expense is
incurred for which indemnification or reimbursement can be provided under this
Agreement. 

2. AGREEMENT TO SERVE. 

Indemnitee agrees to serve or continue to serve as a director
or officer of the Company to the best of her abilities at the will of the
Company or under separate contract, if such contract exists, for so long as
Indemnitee is duly elected or appointed and qualified or until such time as she
tenders her resignation in writing. Nothing contained in this Agreement is
intended to create in Indemnitee any right to continued employment.

3. INDEMNIFICATION. 

(a) THIRD PARTY PROCEEDINGS. The Company shall indemnify
Indemnitee against Expenses, judgments, fines, penalties or amounts paid in
settlement (if the settlement is approved in advance by the Company) actually
and reasonably incurred by Indemnitee in connection with a Proceeding (other
than a Proceeding by or in the right of the Company) if Indemnitee acted in good
faith and in a manner Indemnitee reasonably believed to be in the best interests
of the Company, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe Indemnitee's conduct was unlawful. The termination
of any Proceeding by judgment, order, settlement, conviction, or upon a plea of
NOLO CONTENDERE or its equivalent, shall not, of itself, create a presumption
that Indemnitee did not act in good faith and in a manner which Indemnitee
reasonably believed to be in the best interests of the Company, or, with respect
to any criminal Proceeding, had no reasonable cause to believe that Indemnitee's
conduct was unlawful. 

(b) PROCEEDINGS BY OR IN THE RIGHT OF THE COMPANY. To the
fullest extent permitted by law, the Company shall indemnify Indemnitee against
Expenses and amounts paid in settlement, actually and reasonably incurred by
Indemnitee in connection with a Proceeding by or in the right of the Company to
procure a judgment in its favor if Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in the best interests of the Company
and its shareholders. Notwithstanding the foregoing, no indemnification shall be
made in respect of any claim, issue or matter as to which Indemnitee shall have
been adjudged liable to the Company in the performance of Indemnitee's duty to
the Company and its shareholders unless and only to the extent that the court in
which such action or proceeding is or was pending shall determine upon
application that, in view of all the circumstances of the case, Indemnitee is
fairly and reasonably entitled to indemnity for expenses and then only to the
extent that the court shall determine. 

(c) SCOPE. Notwithstanding any other provision of this
Agreement but subject to SECTION 14(b), the Company shall indemnify the
Indemnitee to the fullest extent permitted by law, notwithstanding that such
indemnification is not specifically authorized by other provisions of this
Agreement, the Company's Amended Articles of Incorporation, the Company's
Amended and Restated Bylaws or by statute. 

4. LIMITATIONS ON INDEMNIFICATION. 

Any other provision herein to the contrary notwithstanding, the
Company shall not be obligated pursuant to the terms of this Agreement:

(a) EXCLUDED ACTS. To indemnify Indemnitee for any acts or
omissions or transactions from which a director may not be relieved of liability
under applicable law; 

(b) EXCLUDED INDEMNIFICATION PAYMENTS. To indemnify or advance
Expenses in violation of any prohibition or limitation on indemnification under
the statutes, regulations or rules promulgated by any state or federal
regulatory agency having jurisdiction over the Company. 

(c) CLAIMS INITIATED BY INDEMNITEE. To indemnify or advance
Expenses to Indemnitee with respect to Proceedings or claims initiated or
brought voluntarily by Indemnitee and not by way of defense, except with respect
to proceedings brought to establish or enforce a right to indemnification under
this Agreement or any other statute or law or otherwise as required under
Section 78.7502 of the Nevada Revised Statutes, but such indemnification or
advancement of Expenses may be provided by the Company in specific cases if the
Board of Directors has approved the initiation or bringing of such suit; 

(d) LACK OF GOOD FAITH. To indemnify Indemnitee for any
Expenses incurred by the Indemnitee with respect to any proceeding instituted by
Indemnitee to enforce or interpret this Agreement, if a court of competent
jurisdiction determines that each of the material assertions made by the
Indemnitee in such proceeding was not made in good faith or was frivolous;

(e) INSURED CLAIMS. To indemnify Indemnitee for Expenses or
liabilities of any type whatsoever (including, but not limited to, judgments,
fines, ERISA excise taxes or penalties, and amounts paid in settlement) which
have been paid directly to or on behalf of Indemnitee by an insurance carrier
under a policy of directors' and officers' liability insurance maintained by the
Company or any other policy of insurance maintained by the Company or
Indemnitee; 

(f) CLAIMS UNDER SECTION 16(b). To indemnify Indemnitee for
Expenses and the payment of profits arising from the purchase and sale by
Indemnitee of securities in violation of Section 16(b) of the Securities
Exchange Act of 1934, as amended, or any similar successor statute.

5. DETERMINATION OF RIGHT TO INDEMNIFICATION. 

Upon receipt of a written claim addressed to the Board of
Directors for indemnification pursuant to SECTION 3, the Company shall determine
by any of the methods set forth in Section 78.751 of the Nevada Revised Statutes
whether Indemnitee has met the applicable standards of conduct which makes it
permissible under applicable law to indemnify Indemnitee. If a claim under
SECTION 3 is not paid in full by the Company within ninety (90) days after such
written claim has been received by the Company, the Indemnitee may at
any time thereafter bring suit against the Company to recover the unpaid amount
of the claim and, unless such action is dismissed by the court as frivolous or
brought in bad faith, the Indemnitee shall be entitled to be paid also the
expense of prosecuting such claim. The court in which such action is brought
shall determine whether Indemnitee or the Company shall have the burden of proof
concerning whether Indemnitee has or has not met the applicable standard of
conduct. 

6. ADVANCEMENT AND REPAYMENT OF EXPENSES. 

Subject to SECTION 4 hereof, the Expenses incurred by
Indemnitee in defending and investigating any Proceeding shall be paid by the
Company in advance of the final disposition of such Proceeding within 30 days
after receiving from Indemnitee the copies of invoices presented to Indemnitee
for such Expenses, if Indemnitee shall provide an undertaking to the Company to
repay such amount to the extent it is ultimately determined that Indemnitee is
not entitled to indemnification. In determining whether or not to make an
advance hereunder, the ability of Indemnitee to repay shall not be a factor.
Notwithstanding the foregoing, in a proceeding brought by the Company directly,
in its own right (as distinguished from an action bought derivatively or by any
receiver or trustee), the Company shall not be required to make the advances
called for hereby if the Board of Directors determines, in its sole discretion,
that it does not appear that Indemnitee has met the standards of conduct which
make it permissible under Applicable law to indemnify Indemnitee and the
advancement of Expenses would not be in the best interests of the Company and
its shareholders. 

7. PARTIAL INDEMNIFICATION. 

If the Indemnitee is entitled under any provision of this
Agreement to indemnification or advancement by the Company of some or a portion
of any Expenses or liabilities of any type whatsoever (including, but not
limited to, judgments, fines, penalties, and amounts paid in settlement)
incurred by him in the investigation, defense, settlement or appeal of a
Proceeding, but is not entitled to indemnification or advancement of the total
amount thereof, the Company shall nevertheless indemnify or pay advancements to
the Indemnitee for the portion of such Expenses or liabilities to which the
Indemnitee is entitled.

8. NOTICE TO COMPANY BY INDEMNITEE. 

Indemnitee shall notify the Company in writing of any matter
with respect to which Indemnitee intends to seek indemnification hereunder as
soon as reasonably practicable following the receipt by Indemnitee of written
notice thereof; provided, however, that any delay in so notifying the Company
shall not constitute a waiver by Indemnitee of her rights hereunder. The written
notification to the Company shall be addressed to the Board of Directors and
shall include a description of the nature of the Proceeding and the facts
underlying the Proceeding and be accompanied by copies of any documents filed
with the court in which the Proceeding is pending. In addition, Indemnitee shall
give the Company such information and cooperation as it may reasonably require
and as shall be within Indemnitee's power. 

9. MAINTENANCE OF LIABILITY INSURANCE. 

(a) Subject to SECTION 4 hereof, the Company hereby agrees that
so long as Indemnitee shall continue to serve as a director or officer of the
Company and thereafter so long as Indemnitee shall be subject to any possible
Proceeding, the Company, subject to SECTION 9(B), shall use reasonable
commercial efforts to obtain and maintain in full force and effect directors'
and officers' liability insurance (“D&O Insurance”) which provides
Indemnitee the same rights and benefits as are accorded to the most favorably
insured of the Company's directors, if Indemnitee is a director; or of the
Company's officers, if Indemnitee is not a director of the Company but is an
officer. 

(b) Notwithstanding the foregoing, the Company shall have no
obligation to obtain or maintain D&O Insurance if the Company determines in
good faith that such insurance is not reasonably available, the premium costs
for such insurance are disproportionate to the amount of coverage provided, the
coverage provided by such insurance is limited by exclusions so as to provide an
insufficient benefit, or the Indemnitee is covered by similar insurance
maintained by a subsidiary or parent of the Company. 

(c) If, at the time of the receipt of a notice of a claim
pursuant to SECTION 8 hereof, the Company has D&O Insurance in effect, the
Company shall give prompt notice of the commencement of such Proceeding to the
insurers in accordance with the procedures set forth in the respective policies.
The Company shall thereafter take all necessary or desirable action to cause
such insurers to pay, on behalf of the Indemnitee, all amounts payable as a
result of such Proceeding in accordance with the terms of such policies.

10. DEFENSE OF CLAIM. 

In the event that the Company shall be obligated under SECTION
6 hereof to pay the Expenses of any Proceeding against Indemnitee, the Company,
if appropriate, shall be entitled to assume the defense of such Proceeding, with
counsel approved by Indemnitee, which approval shall not be unreasonably
withheld, upon the delivery to Indemnitee of written notice of its election to
do so. After delivery of such notice, approval of such counsel by Indemnitee and
the retention of such counsel by the Company, the Company will not be liable to
Indemnitee under this Agreement for any fees of counsel subsequently incurred by
Indemnitee with respect to the same Proceeding, provided that (i) Indemnitee
shall have the right to employ her counsel in any such Proceeding at
Indemnitee's expense; and (ii) if (A) the employment of counsel by Indemnitee
has been previously authorized by the Company, or (B) Indemnitee shall have
reasonably concluded that there may be a conflict of interest between the
Company and the Indemnitee in the conduct of such defense or (C) the Company
shall not, in fact, have employed counsel to assume the defense of such
Proceeding, then the fees and expenses of Indemnitee's counsel shall be at the
expense of the Company. 

11. ATTORNEYS' FEES. 

In the event that Indemnitee or the Company institutes an
action to enforce or interpret any terms of this Agreement, the Company shall
reimburse Indemnitee for all of the Indemnitee's reasonable fees and expenses in bringing and pursuing such
action or defense, unless as part of such action or defense, a court of
competent jurisdiction determines that the material assertions made by
Indemnitee as a basis for such action or defense were not made in good faith or
were frivolous. 

12. CONTINUATION OF OBLIGATIONS. 

All agreements and obligations of the Company contained herein
shall continue during the period the Indemnitee is a director or officer of the
Company, or is or was serving at the request of the Company as a director,
officer, fiduciary, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, and shall continue thereafter so long as the
Indemnitee shall be subject to any possible proceeding by reason of the fact
that Indemnitee served in any capacity referred to herein. 

13. SUCCESSORS AND ASSIGNS. 

This Agreement establishes contract rights that shall be
binding upon, and shall inure to the benefit of, the successors, assigns, heirs
and legal representatives of the parties hereto. 

14. NON-EXCLUSIVITY. 

(a) The provisions for indemnification and advancement of
expenses set forth in this Agreement shall not be deemed to be exclusive of any
other rights that the Indemnitee may have under any provision of law, the
Company's Amended Articles of Incorporation or Amended and Restated Bylaws, the
vote of the Company's shareholders or disinterested directors, other agreements
or otherwise, both as to action in her official capacity and action in another
capacity while occupying her position as a director or officer of the Company.

(b) In the event of any changes, after the date of this
Agreement, in any applicable law, statute, or rule which expand the right of a
Nevada corporation to indemnify its officers and directors, the Indemnitee's
rights and the Company's obligations under this Agreement shall be expanded to
the full extent permitted by such changes. In the event of any changes in any
applicable law, statute or rule, which narrow the right of a Nevada corporation
to indemnify a director or officer, such changes, to the extent not otherwise
required by such law, statute or rule to be applied to this Agreement, shall
have no effect on this Agreement or the parties' rights and obligations
hereunder. 

15. EFFECTIVENESS OF AGREEMENT. 

To the extent that the indemnification permitted under the
terms of certain provisions of this Agreement exceeds the scope of the
indemnification provided for in the Nevada Revised Statutes, such provisions
shall not be effective unless and until the Company's Articles of Incorporation
authorize such additional rights of indemnification. In all other respects, the
balance of this Agreement shall be effective as of the date set forth on the
first page and may apply to acts of omissions of Indemnitee which occurred prior
to such date if Indemnitee was an officer, director, employee or other agent of
the Company, or was serving at the request of the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, at the time
such act or omission occurred. 

16. SEVERABILITY. 

Nothing in this Agreement is intended to require or shall be
construed as requiring the Company to do or fail to do any act in violation of
applicable law. The Company's inability, pursuant to court order, to perform its
obligations under this Agreement shall not constitute a breach of this
Agreement. The provisions of this Agreement shall be severable as provided in
this SECTION 16. If this Agreement or any portion hereof shall be invalidated on
any ground by any court of competent jurisdiction, then the Company shall
nevertheless indemnify Indemnitee to the full extent permitted by any applicable
portion of this Agreement that shall not have been invalidated, and the balance
of this Agreement not so invalidated shall be enforceable in accordance with its
terms. 

17. GOVERNING LAW. 

This Agreement shall be interpreted and enforced in accordance
with the laws of the State of Nevada, without reference to its conflict of law
principals. To the extent permitted by applicable law, the parties hereby waive
any provisions of law which render any provision of this Agreement unenforceable
in any respect.

18. NOTICE. 

All notices, requests, demands and other communications under
this Agreement shall be in writing and shall be deemed duly given (i) if
delivered by hand and receipted for by the party addressee or (ii) if mailed by
certified or registered mail with postage prepaid, on the third business day
after the mailing date. Addresses for notice to either party are as shown on the
signature page of this Agreement, or as subsequently modified by written notice.

19. MUTUAL ACKNOWLEDGMENT. 

Both the Company and Indemnitee acknowledge that in certain
instances, federal law or applicable public policy may prohibit the Company from
indemnifying its directors and officers under this Agreement or otherwise.
Indemnitee understands and acknowledges that the Company has undertaken or may
be required in the future to undertake with the appropriate state or federal
regulatory agency to submit for approval any request for indemnification, and
has undertaken or may be required in the future to undertake with the Securities
and Exchange Commission to submit the question of indemnification to a court in
certain circumstances for a determination of the Company's right under public
policy to indemnify Indemnitee. 

20. COUNTERPARTS. 

This Agreement may be executed in one or more counterparts,
each of which shall constitute an original. 

21. AMENDMENT AND TERMINATION. 

No amendment, modification, termination or cancellation of this
Agreement shall be effective unless in writing signed by both parties hereto.

[Signature Page Follows]

IN WITNESS WHEREOF, the parties have executed this Agreement as
of the day and year set forth above. 

	COMPANY: 	INDEMNITEE: 
	  	  
	CHINA SHENGDA PACKAGING GROUP INC. 	
	  	__________________________________
	  	[DIRECTOR] 
	  	Address: 
	By: __________________________________	  
	       Name: 	  
	       Title: 	  
	  	  
	Address: 	  

[Signature Page to Indemnification Agreement]

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