Document:

ex1071.htm

    Exhibit
10.71

     

     

    
      ADVISORY
AGREEMENT

      

      This
Advisory Agreement (the “Agreement”) is made
and entered into as of the effective date June 1, 2008 (the “Effective Date”),
between Kronos Advanced Technologies, Inc. (“Kronos”), a Nevada
corporation and Marc Kloner, an individual, hereinafter collectively referred to
as “Advisor”.

      

      Recitals

      

      WHEREAS,
Kronos is interested in Advisor providing Specialized Consulting Services as
detailed in Attachment A.  For such service, Kronos is willing to
compensate Advisor, subject to the covenants, conditions and limitations set
forth in this Agreement.

      

      WHEREAS,
Advisor has special knowledge and other background experience relevant to the
field and is willing to provide the services contemplated by and in accordance
with the covenants, conditions and limitations of this Agreement.

      

      Agreement

      

      In
consideration of the foregoing recitals, the mutual covenants hereinafter
provided, and for other good and valuable considerations, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound and equitably bound, hereby agree as follows:

      

      
        	
                I.

              	
                Scope and Limitations
      of Engagement.  

              

      

       

      1.           Kronos appoints
Advisor.  Kronos hereby appoints Advisor and Advisor hereby
accepts such appointment, on a non-exclusive basis, to provide the Services as
described in Attachment A
Statement of Work.  The Statement of Work may be modified or amended
by mutual written consent of Kronos and Advisor.

       

      2.           Independent Status of
Advisor.  Advisor shall, at all times, be an independent
contractor hereunder, rather than a co-venturer, agent, employee, or
representative of Kronos.  Advisor shall be responsible for Advisor’s
taxes, shall not be required to work on a continuing daily basis or any
specific work schedule, and shall not be provided with office space or
administrative support by Kronos. Advisor is permitted to engage in other
businesses and ventures.  Advisor shall be solely responsible for
complying with all laws, rules, and regulations applicable to its services
hereunder.  Kronos shall not be liable for any injury (including
death) to Advisor or others, workmen’s compensation, employer’s liability,
social security, withholding tax, or other taxes of similar nature for or on
behalf of Advisor or any other person, persons, firms or corporations consulted
by Advisor in carrying out this Agreement.  It is understood, however,
that should Kronos be held liable for any social security, withholding or other
taxes of a similar nature on behalf of Advisor, then Kronos shall have the right
to recover an equivalent amount from Advisor or deduct such amount from any
compensation due to Advisor pursuant to this Agreement.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      3.           Confidentiality.  The
Advisor acknowledges that during the Term of this Agreement, the Advisor may be
given access to or may become acquainted with Confidential Information (as
hereinafter defined) and/or trade secrets of Kronos.  Subject to the
exceptions set forth below and permitted uses of Confidential Information in
connection with the provision of services pursuant to this Agreement, the
Advisor acknowledges that the Confidential Information and/or trade secrets of
Kronos as such may exist from time to time, are valuable, confidential, special
and unique assets of Kronos, expensive to produce and maintain and essential for
the operation of its business. The Advisor hereby agrees that he shall not,
during the Term of this Agreement and for a period of five (5) years thereafter,
directly or indirectly, communicate, disclose or divulge to any Person, as
defined below, or use for its benefit or the benefit of any Person, in any
manner any Confidential Information or trade secrets of Kronos acquired before
or during the Term of this Agreement, or any other Confidential Information
concerning the conduct and details of the businesses of Kronos, except as may be
required for the Advisor to perform the services hereunder and otherwise to
comply with the terms and conditions and intent of this Agreement and by law, or
to enforce the Advisor’s rights hereunder.  As used in this Section,
"Confidential
Information” of Kronos means any and all information (verbal and written)
relating to Kronos or any of its subsidiaries or any of its affiliates, or any
of their respective activities, including, but not limited to, information
relating to trade secrets, personnel lists, financial information, research
projects, services used, pricing, software, software code, technical memoranda,
designs and specifications, new products and services, comparative analyses of
competitive products, technology, know-how, customers, customer lists and
prospects, product sourcing, marketing and selling and
servicing.  Confidential Information shall not include information
that, at the time of disclosure, (a) is known or available to the general public
by publication (including, without limitation, the public disclosure of
information pursuant to Kronos’ reporting obligations under applicable federal
and state securities laws) or otherwise through no act or failure to act on the
part of the Advisor in violation of this Section I(3), (b) became known or
was derived by the Advisor by some demonstrable means other than as a result of
the Advisor’s access thereto, (c) was rightfully received from a third party
without similar restrictions and without breach of this Agreement or any other
agreement, or (d) was independently developed by the Advisor without any
utilization of the Confidential Information.  The Advisor shall not be
liable for any disclosure of Confidential Information made pursuant to a valid
and enforceable judicial or governmental order (a “Mandated Disclosure”)
not sought by the Advisor for the purpose of circumventing his obligations
hereunder; provided, however, that the Advisor’s obligations under this Section
I (3) shall be deemed satisfied if, promptly upon the Advisor’s receipt of
a subpoena or other written notice seeking disclosure of Confidential
Information, the Advisor shall provide written notice to Kronos of any attempt
to obtain the Mandated Disclosure and in any event prior to any disclosure of
Confidential Information pursuant thereto, and reasonably cooperates with Kronos
in the event that Kronos elects to legally contest and avoid the Mandated
Disclosure.

       

      
        
          
          

        

        
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                II.

              	
                Intellectual
      Property.

              

      

       

      1.           Advisor
covenants and agrees that any works of authorship, work product, materials,
copyrights, discoveries, improvements, inventions and/or patent rights and
anything else that Advisor may make or acquire, either solely or jointly with
others, which result from Advisor’s contact with Kronos personnel and operation
or from Advisor’s work for Kronos, during the Term of this Agreement or while
engaged upon the advisory work under this Agreement, and for six (6) months
thereafter, shall be the exclusive property of Kronos and agrees to assign, and
by these presents does hereby assign and transfer all his entire right, title
and interest in and to such inventions, improvements and patent rights to
Kronos, its successors and assigns, and Advisor agrees upon the request of
Kronos to execute and deliver all documents and perform such acts necessary or
advisable to secure to Kronos, its successors and assigns or its nominee without
payment of additional consideration therefore other than the payment for said
advisory services as herein provided, the entire right, title and interest in
and to said discoveries, improvements and inventions, including applications for
and/or letters patent of the United States and countries foreign thereto
provided the cost of preparing such papers, assignments and applications for
letters patent and the prosecution and maintenance of said applications for
and/or letters patent and all proceedings and litigation is borne by Kronos or
its nominee.  Both parties agree that any obligation Advisor may now
have to assign inventions to Kronos is not waived or changed by terms of this
Agreement.

       

      2.           Advisor
agrees that any and all information including know-how and trade secrets that
may be imparted to him by Kronos as well as Advisor’s advice, recommendations
and opinions resulting from such advisory service shall be maintained
confidential and secret and Advisor shall not use or disclose said information
to others except officials and duly authorized employees and representatives of
Kronos, without prior written consent and approval of Kronos.

       

      3.           Advisor
shall at all times during and after the Term of this Agreement, upon the request
and the expense of Kronos, execute and deliver any and all papers, and do any
and all lawful acts that may be necessary or desirable in the opinion of Kronos
including but not limited to:

       

      a.           To
obtain letters patent, both domestic and foreign on said
inventions;

       

      b.           To
secure, establish and maintain title in Kronos, its successors and assigns, to
said inventions, applications and letters patent, including making such title of
lawful and public record;

       

      c.           To
cooperate fully with Kronos, both during and after the Term of this Agreement,
with respect to the procurement, perfection of title, maintenance and
enforcement of copyrights, patents and other intellectual property rights (both
in the United States and foreign countries) relating to developments or
inventions; to sign all papers, including, without limitation, copyright
applications, patent applications, declarations, oaths, formal assignments,
assignments of priority rights, and powers of attorney, which Kronos may deem
necessary or desirable in order to protect its rights and interests in any
development or invention.  If Kronos is unable, after reasonable
effort, to secure Advisor’s signature on any such papers, any executive officer
of Kronos shall be entitled to execute any such papers as his agent and
attorney-in-fact, and Advisor hereby irrevocably designates and appoints each
executive officer of Kronos as his agent and attorney-in-fact to execute any
such papers on Advisor’s behalf, and to take any and all actions as Kronos may
deem necessary or desirable in order to protect its rights and interests in any
development or invention, under the conditions described in this
sentence.

       

      
        
          
          

        

        
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      d.           To
defend, establish or otherwise preserve the validity of said letter patent
against any and all infringers.

       

      4.           Advisor
shall promptly disclose to Kronos or its designees, in writing, all inventions
(regardless of whether such inventions are related to the business, products or
services of Kronos or any of its affiliated companies) made or conceived, either
solely or jointly with others, during the term of this Agreement and for six (6)
months thereafter.

       

      5.           Advisor
shall within two (2) days after written request by Kronos turn over to Kronos
all plans, notes, blueprints, designs, models, laboratory notebooks, etc.,
relating to inventions conveyed or covered by this Agreement, and Advisor hereby
assigns, sells, transfers and sets over unto Kronos all right, title and
interest in and to said plans, notes, blueprints, designs, models, laboratory
notebooks, etc.

       

      
        	
                III.

              	
                Compensation;
      Indemnification.

              

      

       

      1.           Advisor’s
Fee.  Kronos shall pay to Advisor and Advisor shall receive
from Kronos the Advisor’s Fee as described in Attachment A Statement of
Work.  Any compensation payable to any person other than the Advisor
in connection with the provision of the Advisor’s services hereunder shall be
paid out of the compensation described in this Section III.  The
compensation to be paid in accordance with Attachment A is the sole compensation
to be paid by Kronos in connection therewith.

       

      2.           Expense
Reimbursement.  Kronos shall reimburse pre-approved travel or
other pre-approved expenses incurred by Advisor in connection with services to
be rendered by Advisor pursuant to this Agreement, as expressly agreed in
advance and writing by Kronos.  Pre-approved travel and pre-approved
other expenses will be reimbursed within thirty (30) business days from receipt
of expense documentation.

       

      3.           Indemnification.  The
Company agrees that (a) if Advisor is made a party, or is threatened to be made
a party, to any “Proceeding” (defined
as any threatened or actual action, suit or proceeding whether civil, criminal,
administrative, investigative, appellate or other) by reason of the fact that he
is or was a contractor, agent or consultant of the Company, or (b) if any “Claim” (defined as
any claim, demand, request, investigation, dispute, controversy, threat,
discovery request or request for testimony or information) is made, or
threatened to be made, that arises out of or relates to the Advisor’s service in
any of the foregoing capacity or to the Company, then Advisor shall promptly be
indemnified and held harmless by the Company against any and all costs,
expenses, liabilities and losses (including, without limitation, attorney’s
fees, judgments, damages, interest, expenses of investigation, penalties, fines,
taxes or penalties and amounts paid or to be paid in settlement) incurred or
suffered by Advisor in connection therewith; provided that such Claims are not
based upon or arise out of (i) any negligent act or omission of Advisor, (ii)
any act or omission of Advisor in breach of this Agreement, subject to the
notice and cure period set forth herein, or (iii) criminal and/or fraudulent
acts or omissions of Advisor.  Such indemnification shall continue as
to Advisor even if he has ceased to be a contractor, agent or consultant of the
Company and shall inure to the benefit of Advisor’s successors, assigns, heirs,
executors and administrators.  The Company shall reimburse Advisor
reasonable and necessary costs and expenses incurred by him in connection with any such Proceeding or
Claim within thirty (30) days of written submission of a request for
reimbursement and provision of all documentation or information to support the
request.

       

      
        
          
          

        

        
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                IV.

              	
                Advisors Warranties,
      Representations and Additional
Covenants.

              

      

       

      1.           Full
Authority.  Advisor warrants and represents to Kronos
that:  (i) Advisor has the full unrestricted right to enter into this
Agreement; (ii) by entering into this Agreement, Advisor is not violating or
otherwise contravening any agreement to which Advisor is bound or any applicable
law; and (iii) no person must consent to the execution and performance of this
Agreement by Advisor.

       

      2.           Fraud and Bad
Acts.  Advisor represents and warrants to Kronos that Advisor
is not now, and covenants that Advisor shall not in the future be, a person (i)
subject to an order of any regulator under applicable law, or (ii) convicted
within the previous ten (10) years of a felony.

       

      3.           Compliance with all
laws.  Advisor covenants with Kronos that Advisor shall comply
with all applicable laws in connection with the execution and performance of
this Agreement.

       

      4.           Full Disclosure to
Kronos.  Without limiting any other provision of this
Agreement, Advisor agrees to fully disclose all activities in which Advisor is
engaged other than pursuant to this Agreement.

       

      
        	
                V.

              	
                Term and
      Termination.  

              

      

       

      1.           The
term of this Agreement is one (1) year from the Effective Date (the “Term”).

       

      2.           This
Agreement may be terminated immediately by either party, without notice, in the
event that either party commits a material breach of this Agreement, which
breach remains uncured for 10 business days after written notice
thereof.

       

      3.           In
the absence of a material breach by Advisor, Kronos may terminate this Agreement
upon ten (10) days prior written notice to Advisor.  In the event of
termination pursuant to this section V(3), Advisor shall be entitled to all
compensation which has been earned pursuant to this Agreement prior to and
including such date of termination.

       

      
        	
                VI.

              	
                Miscellaneous.

              

      

       

      1.           Binding Effect and Survival
of Rights.  This Agreement will benefit and bind the parties
and their respective personal representatives, executors, administrators, heirs,
legatees, devisees, successors and assigns.

       

      
        
          
          

        

        
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      2.           Notices.  All
notices, demands, requests and other communications required or permitted to be
given by any provision of this Agreement will be in writing addressed as
follows:

       

      
        	
                If to Kronos:

              	
                Kronos
      Advanced Technologies, Inc.

                464
      Common Street, Suite 301

                Belmont,
      MA 02478

                Telephone:  703-821-1905

                Attention: 
      Richard F. Tusing

                Chief
      Operating Officer

              
	 	 
	
                If to Advisor:

                 

              	
                Marc
      Kloner

                 

                 

                 

                 

                 

                 

              

      

       

      Any such notice, demand, request or
communication will be deemed to have been given and received for all purposes
under this Agreement: (a) on the date of delivery when delivered in person; (b)
on the date of transmission when delivered by facsimile transmission (provided
such transmission is confirmed by transmission receipt and such notice is
promptly confirmed by some other means described herein); and/or (c) on the next
business day after the same is deposited with a nationally recognized overnight
delivery service that guarantees overnight delivery; provided, however, if the
day such notice, demand, request or communication will be deemed to have been
given and received as aforesaid is not a business day, such notice, demand,
request or communication will be deemed to have been given and received on the
next business day.

      

      Any party to this Agreement may change
such parties address for the purpose of notice, demands, requests and
communications required or permitted under this Agreement by providing written
notice of such change of address to all of the parties by written notice as
provided herein.

      

      3.           Interpretation.  The
parties acknowledge to each other that each party has reviewed and participated
in the negotiation of this Agreement.  Accordingly, the normal rule of
construction to the effect that any ambiguities are resolved against the
drafting party will not be employed in the interpretation of this
Agreement.

       

      4.           Incorporation.  The
Recitals, all exhibits and schedules attached hereto, or to be attached hereto,
and all other agreements and instruments referred to herein are hereby
incorporated by reference into this Agreement as fully as if copied herein
verbatim.

       

      
        
          
          

        

        
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      5.           Further
Assurances.  The parties further agree that, upon request, they
will do such further acts and deeds and will execute, acknowledge, deliver and
record such other documents and instruments as may be reasonably necessary from
time to time to evidence, confirm or carry out the intent and purpose of this
Agreement.

       

      6.           Lawful
Authority.  Each party executing this Agreement hereby
represents and warrants to all other parties that they have been fully
authorized to execute and deliver this Agreement.

       

      7.           Attorneys
Fees.  If any legal action or other proceeding (including
arbitration pursuant to this Agreement) is brought for the enforcement of this
Agreement, or because of any alleged dispute, breach, default or
misrepresentation in connection with any provisions of this Agreement, the
prevailing party will be entitled to recover reasonable attorneys fees, court
costs and all reasonable expenses, even if not taxable or assessable as court
costs (including, without limitation, all such fees, costs and expenses incident
to appeal) incurred in that action or proceeding in addition to any other relief
to which such party may be entitled.

       

      8.           Waivers and
Consents.

       

      (i)           Each
and every waiver of any provision of this Agreement must be in writing and
signed by each party whose interests are adversely affected by such
waiver.

       

      (ii)          Unless
otherwise expressly provided in a waiver, no such waiver granted in any one
instance will be construed as a continuing waiver applicable in any other
instance.

       

      (iii)         No
waiver by any party to this Agreement to or of any breach or default by any
other party to this Agreement in the performance by such other party of its
obligations hereunder will be deemed or construed to be a waiver of any breach
or default of any other party of the same or any subsequent obligations
hereunder.

       

      (iv)         Subject
to applicable statutes of limitation, the failure on the part of any party to
this Agreement to complain of any act or failure to act of any other party to
this Agreement or to declare such other party in default, irrespective of how
long such failure continues, shall not constitute a waiver by the non-defaulting
party of its rights hereunder.

       

      (v)          Each
and every consent by any party to this Agreement must be in writing signed by
the party to be bound thereby.  No consent will be deemed or construed
to be a consent to any action except as described in such writing.

       

      9.           Section
Headings.  The Section headings contained in this Agreement are
for reference purposes only and will not affect the interpretation of this
Agreement.

       

      10.           Governing
Law.  This Agreement will be governed in all respects,
including validity, interpretation and effect by, and will be enforceable in
accordance with, the internal laws of the State of Massachusetts without regard
to conflicts of laws principles.

       

      
        
          
          

        

        
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      11.           Severability.  If
any provision of this Agreement is held to be unlawful, invalid or unenforceable
under present or future laws effective during the term hereof, such provision
will be fully severable, and this Agreement will be construed and enforced
without giving effect to such unlawful, invalid or unenforceable
provision.  Furthermore, if any provision of this Agreement is capable
of two (2) constructions, one of which would render the provision void, and the
other which would render the provision valid, then the provision will have the
meaning which renders it valid.

       

      12.           Counterpart
Execution.  This Agreement may be executed in multiple
counterparts, each one of which will be deemed an original, but all of which
will be considered together as one and the same instrument.  Further,
in making proof of this Agreement, it will not be necessary to produce or
account for more than one (1) such counterpart.  Provided all parties
have signed at least one counterpart, the execution by a party of a signature
page hereto will constitute due execution and will create a valid, binding
obligation of the party so signing, and it will not be necessary or required
that the signatures of all parties appear on a single signature page
hereto.

       

      13.           Amendments.  Each
and every modification and amendment of this Agreement must be in writing and
except as otherwise provided herein, signed by all the parties
hereto.

       

      14.           Entire
Agreement.  This Agreement and that certain Severance Agreement
dated as of May 16, 2008 by and between the parties (the “Severance Agreement”)
(including all agreements referenced in the “Entire Agreement” section of the
Severance Agreement) contain the entire agreement between the parties regarding
the subject matter hereof.  Any prior agreements, discussions or
representations not expressly contained in this Agreement will be deemed to be
replaced by the provisions hereof, and no party has relied on any such prior
agreements, discussions or representations as an inducement to the execution
hereof.  To the extent there is any conflict between this Agreement
and the Severance Agreement regarding Advisor’s provision of consulting services
to the Company, this Agreement shall control.

       

      15.           Rules of
Construction.  (a) All terms in this Agreement in the singular
and plural will have comparable meanings when used in the plural and vice-versa
unless otherwise specified;  (b) the words hereof, herein, hereunder
and words of similar import when used in this Agreement, will refer to this
Agreement as a whole and not any particular provision of this Agreement and all
references to articles, sections and subdivisions thereof are to this Agreement
unless otherwise specified;  (c) the words include, includes and
including will be deemed to be followed by the phrase without
limitation;  (d) all pronouns and any variations thereof will be
deemed to refer to masculine, feminine or neuter, singular or plural, as the
identity of the individual, individuals, entity or entities may
require;  (e) all references to documents, contracts, agreements or
instruments will include any and all supplements and amendments
thereto;  and (f) all accounting terms not specifically defined herein
will be construed in accordance with generally accepted accounting principles or
generally accepted auditing standards then applied in the United
States.

       

      
        
          
          

        

        
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      16.           Forum
Selection.  ADVISOR AND KRONOS DO HEREBY IRREVOCABLY AND
UNCONDITIONALLY SUBMIT TO THE SOLE AND EXCLUSIVE JURISDICTION OF THE COURTS OF
THE STATE OF MASSACHUSETTS AND DO FURTHER IRREVOCABLY AND UNCONDITIONALLY
STIPULATE AND AGREE THAT THE FEDERAL COURTS IN THE STATE OF MASSACHUSETTS OR THE
STATE COURTS OF MASSACHUSETTS WILL HAVE JURISDICTION TO HEAR AND FINALLY
DETERMINE ANY DISPUTE, CLAIM, CONTROVERSY OR ACTION ARISING OUT OF OR CONNECTED
(DIRECTLY OR INDIRECTLY) WITH THIS AGREEMENT THAT IS NOT SUBJECT TO ARBITRATION,
OR TO ENTER A JUDGMENT CONSISTENT WITH ANY ARBITRATION AWARD. ADVISOR AND KRONOS
FURTHER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY AND ALL OBJECTIONS OR
DEFENSES TO SAID JURISDICTION.  EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT SERVICE UPON ANY PARTY HERETO SHALL
BE MADE BY DELIVERY VIA PRIORITY OVERNIGHT DELIVERY (E.G., FEDEX) AND BY
FACSIMILE OF A COPY OF SUCH PROCESS TO THE ADDRESS OF SUCH PARTY FOR NOTICES TO
SUCH PARTY AS SET FORTH IN THIS AGREEMENT LETTER (OR SUCH DIFFERENT ADDRESS AT
SUCH PARTY WILL HEREAFTER SPECIFY IN ACCORDANCE WITH THE TERMS OF THIS
AGREEMENT).  THE FOREGOING CONSENT, IN ADVANCE, TO THE JURISDICTION OF
THE AFOREMENTIONED COURTS AND THE AFOREMENTIONED METHOD OF SERVICE ARE MATERIAL
INDUCEMENTS FOR THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT.

       

      17.           Personal Nature of
Undertaking.  Advisor acknowledges that the engagement of
Advisor’s services hereunder by Kronos is personal to Advisor, and such services
shall not be delegated or assigned to any other Person or Advisor without
Kronos’ express prior written consent, which may be withheld in Kronos’ sole and
absolute discretion.

       

      [signatures
appear on next page]

       

      
        
          
          

        

        
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      IN WITNESS WHEREOF, the
parties have executed this Advisors Agreement effective as of the date signed by
the parties, as shown below.

      

      Kronos Advanced
Technologies:

      

      

      

      By:      _________________________________     

      Richard F Tusing

      Title:  Chief Operating
Officer

      

      

      

      Advisor:

      

      

      

      By:      _________________________________     

      Marc Kloner

      

      

      
        
          
          

        

        
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      ATTACHMENT
A

      

      

      Statement of Work
#1

      

      Advisor
to provide Sales and Marketing consulting and Advisory support
services.

      

      

      Advisory
Fee:  $10,000.00 / month

      

      Advisory
Period:  June 1, 2008 through August 31, 2008cdiiex10-1.htm

     

    
      

      

    

    

      CONSULTING
AGREEMENT

       

      This
Consulting Agreement (“Agreement”) is made as of January 23, 2009 by and between
China Direct, Inc., a Florida corporation (“Client”) and Marc Siegel
(“Consultant”).  Client and Consultant may collectively be referred to
as the “Parties”.

      

      W
I T N E S S E T H:

       

      WHEREAS,
the Client deems it advisable to retain the Consultant to provide consulting and
advisory services, and the Consultant is willing to provide such services to the
Client on the terms and conditions described herein.

       

      NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained in
this Agreement, the parties hereto agree as follows:

       

      1.          Consulting
Services.  Upon the terms and subject to the conditions
contained in this Agreement, Consultant hereby agrees that it shall, during the
term of this Agreement, undertake the performance of the following services for
Client’s consulting companies (the “Services”):

       

      a.      Upon
request of Client, familiarize himself, to the extent appropriate and feasible,
with the business, operations, properties, financial condition, management and
prospects of Client and its client consulting companies;

       

      
        	
                 
      

              	
                a.

              	
                Provide
      advice relating to their
capitalization;

              

      

       

      
        	
                 
      

              	
                b.

              	
                Evaluate
      alternative financing structures and arrangements and potential sources of
      investment capital;

              

      

       

      
        	
                 
      

              	
                c.

              	
                Assist
      in developing appropriate acquisition criteria and identifying target
      industries;

              

      

       

      
        	
                 
      

              	
                d.

              	
                Identify,
      evaluate, structure and provide advice in connection with potential
      mergers and acquisitions, divestitures, spin-offs, joint ventures and
      other corporate transactions;

              

      

       

      b.      Assist
in evaluating and make recommendations concerning the relationships among
Client's and its client consulting companies various lines of business and
potential areas for business growth; and

       

      c.      Provide
such other services upon which the Parties may mutually agree.

       

      The services to be provided hereunder
may be performed at Client's office located in Deerfield Beach,
Florida.  Consultant shall be provided with office accommodations
located among the senior executive officers of Client.

       

      2.          Term. This Agreement
shall commence as of the effective date of this Agreement and terminate on
December 31, 2009.

       

      3.          Compensation. Upon
execution of this Agreement, the Client shall issue to Consultant

       

      a.      Client
shall pay to Consultant $120,000 in either cash or Common Stock, at the option
of the Client (the “Consulting Shares”). The number of Consulting Shares, if
issued in lieu of the cash amount,

       

      
        
           

        

        
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      shall be
equal to the result of dividing $120,000 by the per share closing price of the
Common Stock on the business day immediately following the Company’s filing of a
public announcement disclosing the resignation of Marc
Siegel.   The Consulting Shares shall be payable in four equal
installments payable on March 31, 2009, June 30, 2009, September 30, 2009 and
December 31, 2009.  The Severance Shares shall be issued pursuant to
the Company’s 2008 Non-Executive Stock Incentive Plan and are subject to
approval of the Compensation Committee of the Company’s board of
directors.  The award of the Severance Shares are intended to be
exempt from Section 16(b) of the Securities Exchange Act of 1934 (the “Act”)
pursuant to Rule 16b-3 of the Act.  In the event the Client elects to
pay Consultant in cash, such cash payments shall be made quarterly as follows:
$30,000 on March 31, 2009, $30,000 on or before June 30, 2009, $30,000 on or
before September 30, 2009, and $30,000 on or before December 31, 2009.

       

      4.          Warranties.  Consultant
warrants that the Services to be provided under this Agreement shall be
performed in a professional manner employing reasonable commercial
efforts.  This warranty shall be valid for a period of thirty (30)
days from the performance of the Services.  Except as specifically
provided in this Section 4, Consultant disclaims any and all other warranties
with respect to the services provided hereunder, including without limitation
any implied warranty of merchantability or fitness for a particular purpose.
Consultant does not warrant the results of any services. In addition, Client
acknowledges and agrees that Consultant is not engaged in the practice of law or
the provision of legal services, and that Client alone is completely and
independently responsible for compliance with all state, federal and
international laws applicable to Client and the operation of its
business.  Consultant’s entire liability to Client (or any other
person or entity) for any loss or damages resulting from any breach of this
Agreement, claims, demands or actions arising out of or relating to the
Services, whether in contract, tort (including negligence) or otherwise, shall
not exceed the sum of $5,000.  Except for the intentional conduct of
Consultant, Consultant will not be liable for any damages caused by the Client's
action or inaction, or for any indirect, incidental, consequential, special,
punitive or exemplary damages or lost profits, including, but not limited to,
damages for loss of business profits, business interruption, loss of business
information, data, goodwill or other pecuniary loss arising from Consultant’s
failure to provide the Services even if Consultant has been advised of the
possibility of such damages.

       

       

      5.           Termination.  This
Agreement may be terminated by the Consultant upon at least 30 days'
written notice to the Company to such effect or by the Company with "Cause" (as
defined below).  As used in this Agreement, "Cause" shall mean a
termination of the Consulting Period based upon:

       

       

      (i)  misconduct
by the Consultant or any of his employees to the material and demonstrable
detriment of the Company;

       

       

      (ii)   the
conviction (by a court of competent jurisdiction, not subject to further appeal)
of, or pleading guilty to, a felony by the Consultant;

       

       

      (iii)  the
Consultant's continued and ongoing gross negligence in the performance of his
duties and responsibilities to the Company as described in this
Agreement;

       

       

      (iv)  the
Consultant's material failure to perform his duties and responsibilities to the
Company as described in this Agreement (other than any such failure resulting
from the Consultant's incapacity due to physical or mental illness), in either
case after written notice from Client to the Consultant of the specific nature
of such material failure and the failure of the Consultant to cure such material
failure within thirty (30) days following receipt of such notice;
or

       

      
        
           

        

        
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      (v)  a
breach by Consultant of the Lock-Up Agreement entered into between Consultant
and the Company.

       

       

      Upon
termination of this Agreement pursuant to Section 5, the Consultant and the
Company shall not have any further obligation under this Agreement, except for
the obligations of the Consultant under Section 6 below.

       

      6.          Non-Compete and Confidential
Information.

       

       

      a.      Non-Competition
Covenant.

       

       

      i.           During
the term of this Agreement, the Consultant shall not, directly or indirectly,
become a consultant (including, but not limited to, through any entity of which
the Consultant is an employee, officer, director or advisor), employee, director
or advisor of, or otherwise affiliated with, any company (including such
company’s subsidiaries) that operates its business in the Peoples Republic of
China (the “PRC”).  

       

       

      ii.           During
the Consulting Period and for a period of two years thereafter, the
Consultant shall not, directly or indirectly, solicit or hire or encourage the
solicitation or hiring of any person who was an employee of Client at any time
on or after the date of such termination, exclusive of David Stein, (unless more
than six months shall have elapsed between the last day of such person's
employment by Client and the first date of such solicitation or
hiring).

       

      b.      Confidential
Information.  In the course of performing services under this
Agreement, Client may disclose to Consultant, and Consultant may otherwise
obtain knowledge of or access to, trade secrets and other proprietary and
confidential information concerning the Client, the Client products, financial
condition, services, research and development plans, and other matters
pertaining to the Client’s business (“Confidential
Information”).  Consultant agrees to treat and hold all Confidential
Information as secret and confidential, and to apply strict standards of care to
maintain the secrecy of the Confidential Information.  In this regard,
Consultant agrees not to copy or reproduce any Confidential Information and not
to disclose the contents of any Confidential Information to any person or
entity, other than officers and directors of the Client or with their written
permission.  Consultant further agrees to return to the Client written
or other copies (including electronic media containing Confidential Information)
of any and all Confidential Information in Consultant’s
possession.  The provisions of this Section 6 shall not apply to any
Confidential Information that Consultant is obligated by law to disclose to any
court or any federal or state government agency; provided, however, that in the
event disclosure is required by law Consultant shall provide the Client with
prompt notice of such requirement so that the Client may seek an appropriate
protective order prior to such required disclosure by Consultant.  In
addition, Consultant hereby acknowledges that he is aware that the United States
securities laws may prohibit any person who has material, nonpublic information
concerning Client from purchasing or selling securities of Client or from
communicating such information to any other person under circumstances in which
it is reasonably foreseeable that such person is likely to purchase or sell such
securities.

       

       

      7.           Relationship.
Consultant shall be an independent contractor within the meaning of all federal,
state and local laws and regulations governing employment insurance, workers'
compensation, industrial accident, labor and taxes. Consultant shall not, by
reason of this Agreement, acquire any benefits, privileges or rights under any
benefit plan operated by the Company or its subsidiaries or affiliates for the
benefit of their employees, including, without limitation, (i) any pension or
profit-sharing plans or (ii) any plans providing medical, dental, disability or
life insurance protection.

       

      
        
           

        

        
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      8.           Authority. Unless
otherwise agreed by the Company and Consultant in writing, during the term of
this Agreement, Consultant shall not have the power or authority to enter into,
execute agreements or other documents that are binding upon the Company or have
the authority to direct the operations of the Company, other than within the
scope of the services provided for in this
Agreement.       

       

      9.          Modifications.  This
Agreement can only be modified by a written agreement duly signed by persons
authorized to sign agreements on behalf of Client and Consultant, and variance
from or addition to the terms and conditions of this Agreement or other written
notification will be of no effect.  The failure of any Party to
enforce any right it is granted herein, or to require the performance by the
other Party hereto of any provision of this Agreement, or the waiver by any
Party of any breach of this Agreement, shall not prevent a subsequent exercise
or enforcement of such provisions or be deemed a waiver of any subsequent breach
of this Agreement.

       

      10.          Entire
Understanding.  This Agreement represents the entire
understanding and agreement between the Parties with respect to the subject
matter hereof, and merges all prior discussions between them and supersedes and
replaces any and every other agreement or understanding which may have existed
between the Parties to the extent that any such agreement or understanding
relates to providing services to Client. To the extent, if any, that the terms
and conditions of Client’s orders or other correspondence are inconsistent with
this Agreement, this Agreement shall control.

       

      11.          Force
Majeure.  No delay, failure or default in performance of any
obligation by either Party, excepting all obligations to make payments
hereunder, shall constitute a breach of this Agreement to the extent caused by,
in whole or in part, the other Party (and within the other party’s reasonable
control) or an act of God, war, civil disturbance, terrorist act, court order,
labor dispute, or other cause beyond its reasonable control, and such
nonperformance will not be a default under this Agreement.

       

      12.          Laws, Severability, Venue,
Waivers.  The validity of this Agreement and the rights,
obligations and relations of the Parties hereunder shall be construed and
determined under and in accordance with the laws of the State of Florida,
without regard to conflicts of law principles thereunder provided, however, that
if any provision of this Agreement is determined by a court of competent
jurisdiction to be in violation of any applicable law or otherwise invalid or
unenforceable, such provision shall to such extent as it shall be determined to
be illegal, invalid or unenforceable under such law be deemed null and void, but
this Agreement shall otherwise remain in full force.  Suit to enforce
any provision of this Agreement, or any right, remedy or other matter arising
therefrom, will be brought exclusively in the state or federal courts located in
Broward County, Florida.  Client agrees and consents to venue in
Broward County, Florida and to the in personam jurisdiction of these courts and
hereby irrevocably waives any right to a trial by jury.

       

      13.          Counterparts. This
Agreement may be executed in any number of counterparts, each of which when so
executed, shall constitute an original copy hereof, but all of which together
shall consider but one and the same document.

       

      14.          Disclaimer.
Consultant acknowledges that it has and will during the term of this Agreement,
rely upon information provided by Client in connection with the performance of
the Services and in accepting the Client’s securities as full or partial payment
of the Compensation under this Agreement.

       

      15.          Expenses. Client
shall reimburse Consultant in cash for all pre-approved expenses incurred by
Consultant in regard to the performance of services under this
Agreement.  Such reimbursement shall be made by Client within 5 days
after Consultant submits a request for reimbursement for such
expenses  which request shall include receipts for such
items.

       

      
        
           

        

        
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      16.          Notices. All notices
to be given hereunder shall be in writing by mail and/or and delivery
to:

      

      
        	
                Consultant:

              	
                Client:

                 

              
	
                Marc
      Siegel

                943
      Lake Wyman Road

                Boca
      Raton, Florida 33431

              	
                China
      Direct, Inc.

                431
      Fairway Drive

                Deerfield
      Beach, FL 33411

              
	 
      	 
      

      

      17.          Indemnification.
Except for intentional acts of Consultant, Consultant shall not be liable to the
Client or to any officer, director, employee, stockholders, or creditor of the
Client, for any act or omission in the course of or in connection with the
provision of advice or assistance hereunder.  The Client agrees to and
shall defend, indemnify and hold Consultant harmless from and against any and
all suits, claims, demand, causes of action, judgment damages, expenses and
liability, (including court costs and attorney’s fees paid in the defense of
Consultant) which may in any way result from services provided by Consultant
pursuant to or in connection with this Agreement. The Client agrees that if
Consultant is made a party, is threatened to be made a party, to any action,
suit or proceeding, whether civil, criminal, administrative, or investigative (a
“Proceeding”), by reason of the fact that Consultant is or was an employee of
the Client, or is or was serving at the request of the Client as an employee or
agent of another corporation, partnership, joint venture, trust, or other
enterprise, including service with respect to clients of the Client, whether or
not the basis of such Proceeding is Consultant’s alleged action in an official
capacity while serving as an employee or agent, Consultant shall be indemnified
and held harmless by the Client, to the same extent as the officers and
directors of the Client, to the fullest extent legally permitted against all
cost, expense, liability, and loss (including, without limitation, attorney’s
fees, judgments, fines, ERISA excise taxes or other liabilities or penalties and
amounts paid or to be paid in settlement) reasonably incurred or suffered by
Consultant in connection therewith, and such indemnification shall continue as
to Consultant even if he has ceased to be an employee or agent of the Client or
other entity and shall inure to the benefit of Consultant’s heirs, executors,
and administrators.  In return for the above provision, Consultant
promises to cooperate with the Client at its expense in his or the Client's
defense of any actions taken by private parties and/or federal or state
governmental bodies against the Consultant or the Client.

      

      18.          Other
Activities.  Except as provided for in Sections 6(a) and (b),
nothing contained herein shall prevent Consultant from acquiring or
participating in a transaction of any kind with any other entity.

       

      19.          Disclaimer.
Consultant acknowledges that he has relied upon the information provided by
Client. Consultant has in entering into this Amendment, relied on the warranties
or representations made by Client, its officers, directors, agents, legal
counsel or accountants concerning Client and/or its stock as to matters past,
present or future.

       

      20.          Attorney’s fees. The Client shall pay,
as and when due, any and all attorneys’ fees and costs incurred by Consultant in
connection with any dispute or settlement arising from his affiliation with the
Client, or as an employee or agent of another corporation, partnership, joint
venture, trust, or other enterprise, including service with respect to clients
of the Client, whether or not the basis of such Proceeding is Consultant’s
alleged action.  Consultant shall be indemnified and held harmless by
the Client, to the same extent as the officers and directors of the Client, to
the fullest extent legally permitted.

      

      

      
        
           

        

        
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      IN
WITNESS WHEREOF, the parties have executed this Agreement on the date first
above written.

       

      
        
          	
                  Client:

                   

                  China Direct,
      Inc.

                	 	 	
                   Consultant

                   

                  Marc
      Siegel

                	 
	
                  By:
      /s/James Wang

                	 	 	
                  By:
      /s/ Marc Siegel

                	 
	
                  Name:
      James Wang

                	 	 	
                  Name: Marc
      Siegel

                	 
	
                  Title:  CEO,
      Chairman

                	 	 	
                   

                	 

        

      

       

      
        
        

      

      

       

      
        
           

        

        
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