Document:

EXHIBIT 10.32

Director Compensation

     On February 7, 2007, the Company’s Board of Directors voted to amend the director compensation package applicable to Non-employee Directors for 2007. The Board decided to maintain the total annual target of equity compensation at approximately $80,000, but adjusted the mix to 25% stock options and 75% restricted stock grants. The Board decided to maintain the annual cash retainer at $50,000, but increased the $1,200 per meeting fee for Board and Committee service to $1,500 per meeting attended. Annual retainers for service as Committee Chairs remained unchanged at $15,000 each for the Audit and Compensation Committees and others stayed at $10,000 per year. The annual retainer for service as Lead or Presiding Director increased from $10,000 to $25,000 per year.

210EXHIBIT 10.1

 

COMMON STOCK PURCHASE AGREEMENT

 

THIS COMMON STOCK PURCHASE AGREEMENT (“Agreement”) is made as of February 27,
2007 (the “Closing”), by and between Network CN Inc., a Delaware corporation
(the “Company”), and Lo Chun Yu Toby (the “Investor”). 

 

WHEREAS, subject to the terms and conditions set forth in this Agreement and
pursuant to the Securities Act of 1933, as amended (the “Securities
Act”) and Regulation S promulgated thereunder
(“Regulation S”), the Company desires to issue and sell to the Investor, and
Investor desires to purchase from the Company, securities of the Company as more
fully described in this Agreement.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this
Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and Investor agree as
follows:

	
            
			1.
 	
            
			Purchase and Sale of Stock.
 

	
            
			 
 	
            
			1.1.
 	
            
			Sale and Issuance of Common Stock. Subject
			to the terms and conditions of this Agreement, the Investor agrees
			to purchase at the Closing and the Company agrees to sell and issue
			to the Investor at the Closing Five Hundred Thousand (500,000)
			shares (“Shares”) of the Company’s common stock (the “Common
			Stock”).  
 

	
            
			 
 	
            
			1.2.
 	
            
			Purchase Price.  The aggregate purchase
			price to be paid by Investor for the Shares (the “Purchase Price”)
			shall be US$3.00 per Shares for an aggregate sum of One Million One
			Hundred and Five Thousand U.S. Dollars (US$1,500,000.00) to be
			delivered within thirty (30) business days of the execution of this
			Agreement in cash or by cashier’s or certified check or checks in
			immediately available funds or by wire transfer per the Company’s
			instructions provided on Exhibit A 
			hereto. 
 

	
            
			 
 	
            
			1.3.
 	
            
			Delivery. Within forty (40) business days of
			the Closing, the Company will deliver to the Investor a certificate
			or certificates, registered in Investor’s name, representing the
			Shares purchased by Investor hereunder, against payment of the
			purchase price therefor. 
 

 

1

 

 

 

	
            
			2.
 	
            
			Representations and Warranties of the Company.
			The Company hereby represents and warrants to the Investor as
			follows:
 

	
            
			 
 	
            
			2.1.
 	
            
			Organization and Standing; Articles and By-Laws;
			The Company is a corporation duly organized and existing under, and
			by virtue of, the laws of the State of Delaware and is in good
			standing under such laws. The Company has the requisite corporate
			power and authority to own and operate its properties and assets,
			and to carry on its business as presently conducted and as proposed
			to be conducted. 
 

	
            
			 
 	
            
			2.2.
 	
            
			Capitalization  The authorized capital stock
			of the Company consists of 805,000,000 shares of Capital Stock, of
			which 800,000,000 are common stock and 5,000,000 are preferred
			stock. As of February 16, 2007 (the most recent record date of the
			Company), 67,600,718 shares of Common Stock are issued and
			outstanding and zero (0) shares of preferred are issued and
			outstanding. No capital stock of the Company has been authorized or
			issued since the most recent record date. The outstanding shares
			have been duly authorized and validly issued, and are fully paid and
			nonassessable. All outstanding securities were issued in compliance
			with applicable federal or state securities laws. 
 

	
            
			 
 	
            
			2.3.
 	
            
			Authorization. All corporate action on the
			part of the Company, its directors and shareholders necessary for
			the authorization, execution, delivery and performance of this
			Agreement by the Company, the authorization, sale, issuance and
			delivery of the Shares and the performance of all of the Company’s
			obligations hereunder has been taken or will be taken on or before
			March 31, 2007. If board approval for the financing is not received
			on or before March 31, 2007, this Agreement shall forthwith
			terminate and cease to have any further force and effect and neither
			party shall have any further obligation to the other. This
			Agreement, when executed and delivered by the Company, shall
			constitute a valid and binding obligation of the Company,
			enforceable in accordance with its terms. The Shares, when issued by
			the Company in compliance with the provisions of this Agreement,
			will be validly issued, fully paid and nonassessable, and free of
			any liens or encumbrances, other than any liens and encumbrances
			created by or imposed upon the holders thereof through no action of
			the Company; provided however, the Shares are subject to certain
			restrictions on transfer under this Agreement and under applicable
			state and federal securities laws. 
 

	
            
			 
 	
            
			2.4.
 	
            
			Private Sale. Subject in part to the truth
			and accuracy of the Investor’s representations and warranties set
			forth in Section 3 below, the offer and sale of the Shares are
			exempt from the registration requirements of Section 5 of the
			Securities Act, and neither the Company nor any authorized agent
			acting on its behalf will take any action hereinafter that would
			cause the loss of such exemption.
 

	
            
			 
 	
            
			2.5.
 	
            
			Delivery of SEC Filings. The Company has
			made available to the Investor through the EDGAR system, true and
			complete copies of the Company’s most recent Annual Report on Form
			10-KSB
 

 

2

 

 

for the fiscal year ended December 31, 2005
(the “10-KSB”) and all other reports filed by the Company pursuant to the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) since the
filing of the 10-KSB and prior to the date hereof (collectively, the “SEC
Filings”). The SEC Filings are the only filings required of the Company pursuant
to the Exchange Act for such period. The Company and its Subsidiaries are
engaged in all material respects only in the business described in the SEC
Filings and the SEC Filings contain a complete and accurate description in all
material respects of the business of the Company and its Subsidiaries, taken as
a whole.

	
            
			 
 	
            
			2.6.
 	
            
			When issued pursuant to the terms of this Agreement, and subject to
			the accuracy of the Investors’ representations and warranties
			herein, the issuance of the Shares by the Company will not require
			registration or qualification with the U.S. Securities and Exchange
			Commission under the Securities Act of 1933, as amended, pursuant to
			Regulation S promulgated thereunder.
 

	
            
			3.
 	
            
			Representations and Warranties of the Investor.
			The Investor hereby represents and warrants to and covenants with
			the Company (which representations, warranties and covenants shall
			survive the Closing of this Agreement) that:
 

	
            
			 
 	
            
			3.1.
 	
            
			Binding Obligation. This Agreement, when
			executed and delivered by the Investor, shall constitute a valid and
			binding obligation of the Investor, enforceable in accordance with
			its terms. The entering into of this Agreement and the transactions
			contemplated hereby do not result in the violation of any of the
			terms and provisions of any law applicable to the Investor or of any
			agreement, written or oral, to which the Investor may be a party or
			by which the Investor is or may be bound. The sale of the Share to
			the Investor as contemplated in this Agreement complies with or is
			exempt from the applicable securities legislation of the
			jurisdiction of residence of the Investor.
 

	
            
			 
 	
            
			3.2.
 	
            
			No Registration. The Investor acknowledges
			and agrees that the Shares will be offered and sold to the Investor
			without such offer and sale being registered under the Securities
			Act, or under any state securities or “blue sky” laws of any state
			of the U.S., and will be issued to the Investor in an offshore
			transaction outside of the United States in accordance with a safe
			harbour from the registration requirements of the Securities Act
			provided by Regulation S. As such, the Investor further acknowledges
			and agrees that the Shares will, upon issuance, be “restricted
			securities” within the meaning of the Securities Act. The Investor
			understands that the Shares may not be offered or sold in the U.S.
			or, directly or indirectly, to U.S. Persons, as that term is defined
			in Regulation S, except in accordance with the provisions of
			Regulation S, pursuant to an effective registration statement under
			the Securities Act, or pursuant to an exemption from, or in a
			transaction not subject to, the registration requirements of the
			Securities Act and in each case in accordance with applicable state
			and federal securities laws.. Neither the SEC nor any other
			securities commission or similar regulatory authority has reviewed
			or passed on the merits of the Shares. The statutory and regulatory
			basis for the exemption claimed for the offer of the
Shares, although in technical compliance with Regulation S, would not be
available if the offering is part of a plan or scheme to evade the registration
provisions of the Securities Act or any applicable state and federal securities
laws
 

 

3

 

 

	
            
			 
 	
            
			3.3.
 	
            
			Investor Not a U.S. Person. The Investor is
			not a U.S. Person (as defined in Regulation S under the Securities
			Act). The Investor is not acquiring the Shares for the account or
			benefit of, directly or indirectly, any U.S. Person.
 

	
            
			 
 	
            
			3.4.
 	
            
			Purchase Entirely for Own Account. The
			Investor understands that the Company is making this Agreement with
			the Investor in reliance upon the Investor’s representation to the
			Company, which by the Investor’s execution of this Agreement the
			Investor hereby confirms, that the Investor is outside the United
			States when receiving and executing this Agreement and is acquiring
			the Shares as principal for the Investor’s own account, not as a
			nominee or agent, and not with a view to the resale or distribution
			of any part thereof, and that the Investor has no present intention
			of selling, granting any participation in, or otherwise distributing
			the same. By executing this Agreement, the Investor further
			represents that the Investor does not have any contract,
			undertaking, agreement or arrangement with any person to sell,
			transfer or grant participations to such person or to any third
			person, with respect to any of the Shares. 
 

	
            
			 
 	
            
			3.5.
 	
            
			Investment Experience. The Investor
			acknowledges that it is able to fend for itself, can bear the
			economic risk of its investment and has such knowledge and
			experience in financial or business matters that it is capable of
			evaluating the merits and risks of the investment in the Shares and
			has the ability to bear the economic risks of its prospective
			investment and can afford the complete loss of such investment.
 

	
            
			 
 	
            
			3.6.
 	
            
			No Directed Selling Efforts. The Investor
			acknowledges that the Investor has not acquired the Shares as a
			result of, and will not itself engage in, any “directed selling
			efforts” (as defined in Regulation S under the Securities Act) in
			the U.S. in respect of the Shares which would include any activities
			undertaken for the purpose of, or that could reasonably be expected
			to have the effect of, conditioning the market in the U.S. for the
			resale of the Shares; provided, however, that the Investor may sell
			or otherwise dispose of the Shares pursuant to registration of the
			Shares pursuant to the Securities Act and any applicable state and
			federal securities laws or under an exemption from such registration
			requirements and as otherwise provided herein.
 

	
            
			 
 	
            
			3.7.
 	
            
			No General Solicitation. The Investor is not
			aware of any advertisement of any of the Shares and is not acquiring
			the Shares as a result of any form of general solicitation or
			general advertising including advertisements, articles, notices or
			other communications published in any newspaper, magazine or similar
			media or broadcast over radio or television, or any seminar or
			meeting whose attendees have been invited by general solicitation or
			general advertising.
 

 

4

 

 

 

	
            
			 
 	
            
			3.8.
 	
            
			Disclosure of Information. The decision to
			execute this Agreement and acquire the Shares hereunder has not been
			based upon any oral or written representation as to fact or
			otherwise made by or on behalf of the Company, and such decision is
			based entirely upon a review of information (the receipt of which is
			hereby acknowledged) which has been filed by the Company with the
			Securities and Exchange Commission (the “SEC”). The Investor and the
			Investor’s advisor(s) have had a reasonable opportunity to ask
			questions of and receive answers from the Company in connection with
			the distribution of the Shares hereunder, and to obtain additional
			information, to the extent possessed or obtainable without
			unreasonable effort or expense, necessary to verify the accuracy of
			the information about the Company. The Investor acknowledges that it
			has had access to all the information it considers necessary or
			appropriate for deciding whether to purchase the Shares.
			Notwithstanding the Company’s representations set forth in Section
			2.2 above, the Investor acknowledges that the Company is (1)
			concurrently negotiating with other prospective investors for the
			purchase and sale of additional shares of Common Stock and (2)
			preparing an Employee Compensation Plan pursuant to which the
			Company may issue additional shares of Common Stock.
 

	
            
			 
 	
            
			3.9.
 	
            
			U.S. Civil Remedies. The Investor is
			acquiring the Shares pursuant to an exemption from the registration
			and prospectus requirements of applicable securities legislation in
			all jurisdictions relevant to this subscription, and, as a
			consequence, the Investor will not be entitled to use most of the
			civil remedies available under applicable securities legislation and
			the Investor will not receive information that would otherwise be
			required to be provided to the Investor pursuant to applicable
			securities legislation.
 

	
            
			 
 	
            
			3.10.
 	
            
			No Other Representations. No person has made
			to the Investor any written or oral representations:
 

	
            
			 
 	
            
			3.10.1.
 	
            
			that any person will resell or repurchase any of the Shares;
 

	
            
			 
 	
            
			3.10.2.
 	
            
			that any person will refund the purchase price of any of the Shares;
 

	
            
			 
 	
            
			3.10.3.
 	
            
			as to the future price or value of any of the Shares; or
 

	
            
			 
 	
            
			3.10.4.
 	
            
			that any of the Shares will be listed and posted for trading on any
			stock exchange or automated dealer quotation system or that
			application has been made to list and post any of the Shares of the
			Company on any stock exchange or automated dealer quotation system.
 

	
            
			 
 	
            
			3.10.5.
 	
            
			No Registration Rights. Except as provided
			in this Agreement, the Investor acknowledges that the Company has
			not undertaken, and will have no obligation, to register any of the
			Shares under the Securities Act.
 

	
            
			 
 	
            
			3.11.
 	
            
			Indemnification. The Investor will indemnify
			and hold harmless the Company and, where applicable, its directors,
			officers, employees, agents and advisors, from and against any and
			all loss, liability, claim, damage and expense whatsoever
			(including, but not limited to, any and all fees, costs and
 

 

5

 

 

expenses
whatsoever reasonably incurred in investigating, preparing or defending against
any claim, lawsuit, administrative proceeding or investigation whether commenced
or threatened) arising out of or based upon any representation or warranty of
the Investor contained herein or in any document furnished by the Investor to
the Company in connection herewith being untrue in any material respect or any
breach or failure by the Investor to comply with any covenant or agreement made
by the Investor to the Company in connection herewith.

	
            
			 
 	
            
			3.12.
 	
            
			OTC Bulletin Board. None of the Shares are
			listed on any stock exchange or automated dealer quotation system
			and no representation has been made to the Investor that any of the
			Shares will become listed on any stock exchange or automated dealer
			quotation system, except that currently market makers make a market
			for the Company’s common shares on the NASD’s OTC Bulletin Board.
 

	
            
			 
 	
            
			3.13.
 	
            
			Investor’s Advisors. The Investor has been
			advised to consult the Investor’s own legal, tax and other advisors
			with respect to the merits and risks of an investment in the Shares
			and with respect to applicable resale restrictions, and it is solely
			responsible (and the Company is not in any way responsible) for
			compliance with:
 

	
            
			 
 	
            
			3.13.1.
 	
            
			any applicable laws of the jurisdiction in which the Investor is
			resident in connection with the distribution of the Shares
			hereunder, and
 

	
            
			 
 	
            
			3.13.2.
 	
            
			applicable resale restrictions; and
 

	
            
			 
 	
            
			3.13.3.
 	
            
			this Agreement is not enforceable by the Investor unless it has been
			accepted by the Company, and the Investor acknowledges and agrees
			that the Company reserves the right to reject any subscription for
			any reason.
 

	
            
			 
 	
            
			3.14.
 	
            
			Legends. The Investor acknowledges and
			agrees that all certificates representing the Shares will be
			endorsed with the following legend, or such similar legend as deemed
			advisable by legal counsel for the Purchaser, to ensure compliance
			with Regulation S and to reflect the status of the Shares as
			restricted securities:
 

	
            
			 
 	
            
			3.14.1.
 	
            
			“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
			REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”), AND HAVE
			BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION
			REQUIREMENTS OF THE ACT PROVIDED BY REGULATION S PROMULGATED UNDER
			THE ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR
			OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF
			REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE ACT,
			OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE
			ACT. HEDGING TRANSACTIONS 
 

 

6

 

 

INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
ACT.”

	
            
			 
 	
            
			3.14.2.
 	
            
			Any legend required by the laws of any State, including any legend
			required by the California Department of Corporations and Sections
			417 and 418 of the California Corporations Code.
 

	
            
			 
 	
            
			3.15.
 	
            
			Prohibited Transactions. During the last
			thirty (30) days prior to the date hereof, neither Investor nor any
			Affiliate of Investor which (x) had knowledge of the transactions
			contemplated hereby, (y) has or shares discretion relating to
			Investor’s investments or trading or information concerning
			Investor’s investments, including in respect of the Shares, or (z)
			is subject to Investor’s review or input concerning such Affiliate’s
			investments or trading (collectively, “Trading Affiliates”) has,
			directly or indirectly, effected or agreed to effect any short sale,
			whether or not against the box, established any “put equivalent
			position” (as defined in Rule 16a-1(h) under the Exchange Act) with
			respect to the Common Stock, granted any other right (including,
			without limitation, any put or call option) with respect to the
			Common Stock or with respect to any security that includes, relates
			to or derived any significant part of its value from the Common
			Stock or otherwise sought to hedge its position in the Shares or
			sold any Common Stock (each, a “Prohibited Transaction”).
			“Affiliate” shall mean any other individual, enterprise,
			association, organization or other entity, or any governmental,
			self-regulatory or quasi-governmental authority of any nature,
			directly or indirectly, controlling, controlled by or under common
			control with the Investor. At no time prior to the termination of
			this Agreement, shall Investor or its Trading Affiliates engage,
			directly or indirectly, in a Prohibited Transaction. 
 

	
            
			4.
 	
            
			Miscellaneous.
 

	
            
			 
 	
            
			4.1.
 	
            
			Survival of Warranties. The warranties,
			representations and covenants of the Company and the Investor
			contained in or made pursuant to this Agreement shall survive the
			execution and delivery of this Agreement and the Closing.
 

	
            
			 
 	
            
			4.2.
 	
            
			Successors and Assigns. Except as otherwise
			provided herein, the terms and conditions of this Agreement shall
			inure to the benefit of and be binding upon the respective
			successors and assigns of the parties (including transferees of any
			Shares sold hereunder). Nothing in this Agreement, express or
			implied, is intended to confer upon any party other than the parties
			hereto or their respective successors and assigns any rights,
			remedies, obligations, or liabilities under or by reason of this
			Agreement, except as expressly provided in this Agreement.
 

	
            
			 
 	
            
			4.3.
 	
            
			Governing Law; Venue. This Agreement is
			being delivered and shall be construed and enforced in accordance
			with and governed by the laws of California applicable to contracts
			which are wholly executed, written and performed within California.
			By execution and delivery of this Agreement, the parties agree and
			accept that any legal action or proceeding brought with respect to
			this
 

 

7

 

 

Agreement shall be brought in the court of appropriate jurisdiction in
and for the County of San Francisco, State of California, and the parties
expressly waive any objection to personal jurisdiction, venue or forum non conveniens. 

	
            
			 
 	
            
			4.4.
 	
            
			Counterparts. This Agreement may be executed
			in two or more counterparts, each of which shall be deemed an
			original, but all of which together shall constitute one and the
			same instrument.
 

	
            
			 
 	
            
			4.5.
 	
            
			Titles and Subtitles. The titles and
			subtitles used in this Agreement are used for convenience only and
			are not to be considered in construing or interpreting this
			Agreement.
 

	
            
			 
 	
            
			4.6.
 	
            
			Notices. Unless otherwise provided, any
			notice required or permitted under this Agreement shall be given in
			writing and shall be deemed effectively given upon personal delivery
			to the party to be notified or on three (3) days after the date of
			deposit with the United States Post Office, by registered or
			certified mail, postage prepaid and addressed to the Company at the
			above address or to the Investor at the address indicated on the
			signature page hereof, or at such other address as the Investor may
			designate by written notice to the Company.
 

	
            
			 
 	
            
			4.7.
 	
            
			Litigation. If any action at law or in
			equity is necessary to enforce or interpret the terms of this
			Agreement, the prevailing party shall be entitled to reasonable
			attorney’s fees, costs and necessary disbursements in addition to
			any other relief to which such party may be entitled.
 

	
            
			 
 	
            
			4.8.
 	
            
			Amendments and Waivers. Any term of this
			Agreement may be amended and the observance of any term of this
			Agreement may be waived (either generally or in a particular
			instance and either retroactively or prospectively), only with the
			written consent of the waiving party. Any amendment or waiver
			affected in accordance with this paragraph shall be binding upon
			each holder of any Common Stock purchased under this Agreement at
			the time outstanding, each future holder of all such Common Stock,
			and the Company. 
 

	
            
			 
 	
            
			4.9.
 	
            
			Severability. If one or more provisions of
			this Agreement are held to be unenforceable under applicable law,
			such provision shall be excluded from this Agreement and the balance
			of the Agreement shall be interpreted as if such provision were so
			excluded and shall be enforceable in accordance with its terms.
 

	
            
			 
 	
            
			4.10.
 	
            
			Complete Agreement. This Agreement
			constitutes the entire agreement between the parties hereto with
			respect to the subject matter hereof and supersedes all prior
			agreements and understandings by and between the Investor and the
			Company.
 

 

 

8

 

 

 

IN WITNESS WHEREOF, the parties have executed this Common Stock
Purchase Agreement dated February 27, 2007

 

“COMPANY”

 

Network CN Inc.,  

a Delaware corporation

 

	
            
			 
 	
            
By:	
            /s/ Godfrey Chin Tong Hui    
 
	
             	
            
			Godfrey Chin Tong Hui, CEO

 

 

THE UNDERSIGNED PURCHASER UNDERSTANDS THAT AN INVESTMENT IN THE STOCK OF THE
COMPANY IS SPECULATIVE IN NATURE AND INVOLVES A HIGH DEGREE OF RISK. PURCHASER
UNDERSTANDS AND HAS CAREFULLY CONSIDERED THE RISKS INVOLVED IN AN INVESTMENT IN
THE STOCK OF THE COMPANY, AND CAN WITHSTAND THE TOTAL LOSS OF THE INVESTMENT.

 

 

	
            
			 
 	
            
			“INVESTOR”
 

 

 

	
            
			 
 	
            
			/s/ Lo Chun Yu Toby
 
	
            
			 
 	
            
			Lo Chun Yu Toby
 	
            
			 

 

                

 

 

9

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