Document:

exh10-10.htm

 

Exhibit 10.10

CONSULTING AGREEMENT

 

This Consulting Agreement (“Agreement”) is made as of this 31 day of December, 2010 by and between USChina Channel, Inc. (“Client”), and China Direct Investments, Inc., a Florida corporation (“China Direct”), CDI Shanghai Management Co., Ltd., a Chinese corporation (“CDI Shanghai”) and Capital One Resource Co., Ltd. a Brunei company (“Capital One”) (China Direct, CDI Shanghai and Capital One are collectively referred to as “Consultant”).  Client and Consultant may collectively be referred to as the “Parties”.

 

W I T N E S S E T H:

 

WHEREAS, Client desires to engage the services of Consultant to provide Client with the services as more fully set forth in this Agreement; and

 

WHEREAS, Consultant is desirous of performing such services on behalf of Client and has been engaged in ongoing discussions and consultations with Client since August 2010 about possible acquisition targets, among other business opportunities.

 

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 continue to identify, evaluate, structure and provide advice to Client in connection with potential mergers and acquisitions, divestitures, spin-offs, joint ventures and other corporate transactions and in particular the possible acquisition of China Education Schools, Ltd., a British Virgin Islands company by Client (the “CES Acquisition”) and such other services upon which the Parties may mutually agree (the “Services”):

 

2. Term. This Agreement shall terminate upon the earlier of the closing of the CES Acquisition or 60 days after the date hereof.

 

3. Consulting Fees. Client shall pay Consultant for providing the Services at total of 4,740,694 shares (the “Shares”) of USChina Channel, Inc. common stock (the “Compensation”) upon the closing of the CES Acquisition (the “Closing”).  Client recognizes the complexity of the Services provided based on the varying nationalities and multiple jurisdictions where the parties to the various transaction are located. For this reason, Consultant has allocated the Compensation among themselves, and Client agrees such allocation is reasonable under the circumstances,  as follows:

a. China Direct – 2,370,347 Shares

b. CDI Shanghai – 1,185,174 Shares

c. Capital One – 1,185,173 Shares

Consultant understands that the Shares have not been registered under the Securities Act of 1933 (the “Securities Act”) or any applicable state securities laws, and that such Shares must be held indefinitely unless a subsequent disposition is registered under the Securities Act or any applicable state securities laws or is exempt from such registration. The Shares to be issued to Consultant hereunder will be restricted stock under the federal securities laws and will be issued pursuant to an exemption from registration under the Securities Act.  Consultant hereby represents to USChina Channel, Inc. and China Direct that it has acquired the Shares as principal for its own account for investment only and not with a view toward, or for resale in connection with, the public sale or any distribution thereof. The stock certificates may bear an appropriate Securities Act legend.

 

  

  

  

            4. Termination. Either Party may terminate this Agreement upon thirty (30) days prior written notice to the other Party, but such termination shall not affect the Consulting Fees paid by Client to Consultant pursuant to Section 3 of this Agreement.  All Consulting Fees provided under this Agreement are deemed fully earned by Consultant upon the earlier of: (a) the date provided for elsewhere in this Agreement; or (b) the date of termination.  In the event of a termination of this Agreement, Client shall not be entitled to any refund of any Consulting Fees paid to Consultant under this Agreement. From and after termination of this Agreement, the Parties shall continue to be bound by such provisions of this Agreement as by their nature survive such events.

 

5.  Assignment and Subcontractors. This Agreement, and the Compensation payable under this Agreement, shall be assignable in whole or in part by Consultant. Client acknowledges that from time to time, Consultant may enlist a subcontractor to perform some of the Services provided to Customer. In the event services to be performed as outlined in this Agreement are subcontracted to a third party, the third party shall accept responsibility for the performance of such activities. Consultant will cease to bear any responsibility related to the performance of subcontracted services; however the Consultant will act as liaison between the subcontractor and Client, to monitor the performance of services to be provided by any third party.

 

6.  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.

 

7.  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.

 

8.  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.

 

9.  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.

  

 

 

  

  

  

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

 

	
Client:

 

USChina Channel, Inc.

 

 

By: /s/ Andrew Chien

Name: Andrew Chien

Title: President

	
Consultant:

 

 China Direct Investments, Inc.

 

 

By: /s/ Lazarus Rothstein

Name: Lazarus Rothstein

Title: Vice President

	  	  
	
CDI Shanghai Management Co., Ltd

 

 

By: /s/ John Zhao

Name: John Zhao

Title: General Manager

	
Capital One Resource Co., Ltd.

 

 

By: /s/Robert Zhuang

Name: Robert Zhuang

Title: General Managerexh10-11.htm

 

Exhibit 10.11

SERVICES AGREEMENT

 

THIS SERVICES AGREEMENT (the "Agreement") is made and entered into as of December 31, 2010 (the "Effective Date") by and between China Bull Management, Inc., a Nevada corporation ("Management Company") and China Bull Holding, Inc., a Nevada corporation ("Operating Company").

 

BACKGROUND

 

Management Company and Operating Company wish to establish an "arms length" agreement for the provision of services to be provided to Operating Company by Management Company.

 

Operating Company is in the business of  providing various corporate management services primarily to Chinese companies operating  in the United States (the “Business”).

 

Operating Company has requested Management Company to provide certain services related to the operation of the Business and Management Company desires to provide such services to Operating Company during the Term (as defined hereinafter).

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained in this Agreement and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.    Services.   During the term of this Agreement, Management Company shall be entitled to the use of Operating Company's present facilities, equipment, information systems and files in order for Management Company to provide the following services as it relates to the Business (the “Services”):

 

a.    Payroll.   All necessary payroll services, including the preparation and filing of Form W-2 for each employee of the Business.  Operating Company shall establish a bank account with funds sufficient to make payments for all amounts paid out to the employees of the Business pursuant to this Section 1(a) and such account shall be funded by Operating Company from the revenues generated by the Business.   Management Company shall make all information relating to the payment of such employee payroll available to Operating Company upon reasonable request therefore.

 

b.  Accounting Services.   Management Company agrees to provide Operating Company with accounting and financial assistance in closing the Business's books consistent with the fiscal close periods and procedures established by Operating Company.   Management Company shall also assist Operating Company in maintaining financial statements for the Business, including preparation by Management Company of balance sheets, profit and loss statements and a general ledger, preparing tax returns and whatever additional accounting and financial services as may reasonably be requested by Operating Company relating to the Business.

 

c.  Sales and Customer Service.  Management Company shall provide all sales and customer service support for the Business including, without limitation, obtaining orders for sales and marketing of products offered by Operating Company and the supply of such products in connection with the operation of the Business answering customer inquiries, referring return information and requests to the appropriate personnel and such other functions as may be reasonably requested by Operating Company.

 

 d.  Collection of Accounts Receivable.  Management Company shall collect accounts receivable of Operating Company in a commercially reasonable manner.  Management Company shall pay over to Operating Company all such Accounts Receivable as specified in Section 1 (e) hereof.  Management Company will make available to Operating Company reports setting forth the amount of Accounts

  

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Receivable collected, the persons from whom such Accounts Receivable have been collected and, if specified by the payor, the invoice number and date to which such Accounts Receivable are to be applied.  Management Company further agrees to make all information relating to the collection of the Accounts Receivable available to Operating Company upon reasonable request therefore.

 

e.  Collection Procedures.  Management Company will collect all payments on invoices rendered by Operating Company.  Management Company shall post all funds received to the corresponding invoice and make any appropriate deduction or adjustment in accordance with the procedures set forth by Operating Company.  Management Company shall remit to Operating Company all cash collected on invoices, to the extent they are Accounts Receivable of the Business.

 

f.  Payment of Trade Payables.  Management Company shall fund bank accounts from the revenues of the Business the proceeds of which shall be used for the payment of Operating Company's obligations relative to the Business such as payroll checks and checks for payment of accounts payable.

 

g.  Email.  Management Company acknowledges and agrees that it shall be obligated to maintain at its own cost and expense, an email system relative to the operation of the Business.

 

h.  Computer Systems.  Management Company acknowledges and agrees that it will maintain and operate the computer and information systems currently being utilized by Operating Company for sales and inventory reporting and tracking, accounts receivable and general ledger accounting (the “Computer Systems”).  Operating Company shall be permitted access to and use of the Computer Systems in order to permit Operating Company and/or Management Company on behalf of Operating Company to close Operating Company's books, to record sales transactions, collect accounts receivables, process customer orders, process purchase orders, maintain inventory and to maintain Operating Company's general ledger.

 

i.  Data and Communication Services.  Management Company shall provide all communication services, including, but not limited to, maintenance of the data communication lines and system, telephone system and other like services required for the Business.

 

j.  Employee Benefits.  Management Company will be responsible for the administration of all existing health and welfare benefit plans offered to Operating Company employees, if any.

 

2.  Payments.  In addition to any specific reimbursement or other obligation of Operating Company set forth herein, during the term hereof, Operating Company shall pay to Management Company an amount equal to all net revenues of the Business after payment of all expenses associated with the operation of such business including a reserve for payment of future expenses related to the operation of the business.

   

3.  Term.  Management Company understands and acknowledges that the term of this Agreement is (i) on an “at-will” basis, (ii) is for an unspecified duration, and (iii) may be terminated at any time, with or without cause, and with or without notice, at Operating Company’s option.  In the event of the termination or expiration of this Agreement, the following provisions shall apply:

 

a.   Management Company shall cease performing Services and shall submit an invoice for any amounts which may be due Management Company under this Agreement as of the date of termination if there are any funds available from Business’ operations; and

 

b.   Management Company shall deliver to Operating Company all information related to the operation of Business in Management Company’s possession or under Management Company’s control.

 

4.  Miscellaneous.

  

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a.  Assignment.  Neither party shall assign any of its rights or delegate any of its obligations under this Agreement, without the express prior written consent of the other party.

 

b.  Amendments.  This Agreement may be amended, modified, or superseded, and any of the terms hereof may be waived, only by written instrument executed by the parties hereto or in the case of a waiver, by the party waiving compliance.  The failure of any party at any time to require performance of any provision hereof shall in no manner affect the right at a later time to enforce the same.  No waiver by any party of any term continued in this Agreement shall be deemed or construed as a further or continuing waiver of any such breach in any subsequent instance or a waiver of any such breach in any subsequent instance or a waiver of any breach of any other terms contained in this Agreement.

 

c.  Independent Contractors.   In performing the Services, nothing in this Agreement shall be construed to create the relationship of employer-employee, principal-agent or master-servant, either expressed or implied. Further, the relationship between the Parties is that of contract, Management Company being an independent contractor, free from interference or control by Operating Company in the performance of the services set forth herein, subject only to the terms of this Agreement. Neither Operating Company nor Management Company has the authority to bind or incur any obligation for the other, and each agrees that Management Company will not hold itself out to any third party as having, or act toward any third party in any manner which would suggest that they have, any such authority.

 

d.  Ownership of Information.  Management Company and Operating Company agree that all files, computer programs, tapes, records, materials, data, papers, reports, and other information relating to the services which were obtained as a result of its performance of its obligations under this Agreement are vested in and owned by Operating Company.  Management Company agrees to return to Operating Company all such property owned by Operating Company and which is in Management Company’s possession upon termination of this Agreement or at any earlier time immediately upon the request of Operating Company.  This clause will survive the termination of this Agreement.

 

e.  Headings.  Headings in this Agreement are for convenience only and shall not be deemed to have any substantive effect.

 

 f.  Counterparts.  This Agreement may be executed on separate counterparts, each of which will be deemed an original, which counterparts may be delivered to the other party hereto by facsimile transmission, and all of which taken together will constitute one and the same instrument.

 

f.  Severability.  If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.

 

g.  Governing Law.  This Agreement shall be governed by, and construed and interpreted in accordance with the laws of the State of Florida, without regard to choice of law principles thereof.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

 

China Bull Management, Inc.

 

By: /s/ Andrew Chien

 

Name: Andrew Chien

  

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China Bull Holding, Inc.

 

By: /s/ Andrew Chien

Name: Andrew Chien

Title: Chief Executive Officer

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