Document:

FIRST AMENDMENT TO AGREEMENT FOR SHARE EXCHANGE

AGREEMENT FOR SHARE EXCHANGE

This AGREEMENT FOR SHARE EXCHANGE (this “Agreement”) is entered into on October __, 2007, by and between Green Dragon Wood Products, Inc., a Florida corporation (“GREEN DRAGON FL”), and Fit Sum Group Limited, a British Virgin Islands company (“FIT SUM”).  

RECITALS

GREEN DRAGON FL desires to complete a share exchange transaction pursuant to which GREEN DRAGON FL shall acquire certain shares of the common stock of FIT SUM in exchange for delivering to FIT SUM a certain number of shares of the voting stock of GREEN DRAGON FL as set forth below; and 

The Board of Directors of GREEN DRAGON FL and the Board of Directors of FIT SUM have each approved the proposed transaction, contingent upon satisfaction prior to closing of all of the terms and conditions of this Agreement.

AGREEMENT

THE PARTIES desire to make certain representations, warranties and agreements in connection with completion of the proposed share exchange transaction.

NOW, THEREFORE, in consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, and the covenants, conditions, representations and warranties hereinafter set forth, the parties hereby agree as follows:

ARTICLE I 

THE EXCHANGE

1.1      The Exchange. At the Closing (as hereinafter defined), GREEN DRAGON FL shall acquire from the shareholders of FIT SUM a total of 1,037,500 shares (the allocation of which is specifically set forth on Exhibit A attached hereto) in FIT SUM.  Consideration to be paid by GREEN DRAGON FL shall be a total of 83,000,000 shares of its common stock (the “Exchange Shares”) allocated pro ratabased on each shareholder’s contribution. The Exchange shall take place upon the terms and conditions provided for in this Agreement and in accordance with applicable law.  For Federal income tax purposes, it is intended that the Exchange shall constitute a tax-free reorganization within the meaning of Section 368(a)(1)(B) of the Internal Revenue Code of 1986, as amended (the “Code”). 

1.2    Closing and Effective Time. Subject to the provisions of this Agreement, the parties shall hold a closing (the "Closing") on (i) the first business day on which the last of the conditions set forth in Article V to be fulfilled prior to the Closing is fulfilled or waived or (ii) at such time and place as the parties hereto may agree. Such date shall be the date of Exchange (the "Effective Time"). 

 ARTICLE II

REPRESENTATIONS AND WARRANTIES

2.1    Representations and Warranties of GREEN DRAGON FL. GREEN DRAGON FL represents and warrants to FIT SUM as follows:

(a)       Organization, Standing and Power. GREEN DRAGON FL is a corporation duly organized, validly existing and in good standing under the laws of Florida, has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted, and is duly qualified and in good standing to do business in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification necessary.

 

(b)       Capital Structure. As of the date of execution of this Agreement, the authorized capital stock of GREEN DRAGON FL consists of ______________
 shares of Common Stock with a par value of $0.001 per share. The Exchange Shares to be issued pursuant to this Agreement shall be, when issued pursuant to the terms of the resolution of the Board of Directors of GREEN DRAGON FL approving such issuance, validly issued, fully paid and nonassessable and not subject to preemptive rights. GREEN DRAGON FL has no other options, warrants, calls, agreements or other rights to purchase or otherwise acquire from GREEN DRAGON FL at any time, or upon the happening of any stated event, any shares of the capital stock of GREEN DRAGON FL whether or not presently issued or outstanding except as set forth herein.  

(c)    Certificate of Incorporation, Bylaws, and Minute Books. The copies of the Articles of Incorporation and of the Bylaws of GREEN DRAGON FL which have been delivered to FIT SUM are true, correct and complete copies thereof. The minute book of GREEN DRAGON FL, which has been made available for inspection, contains accurate minutes of all meetings and accurate consents in lieu of meetings of the Board of Directors (and any committee thereof) and of the shareholders of GREEN DRAGON FL since the date of incorporation and accurately reflects all transactions referred to in such minutes and consents in lieu of meetings.

(d)    Authority. GREEN DRAGON FL has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by the Board of Directors of GREEN DRAGON FL. No other corporate or shareholder proceedings on the part of GREEN DRAGON FL are necessary to authorize the Exchange, or the other transactions contemplated hereby.

(e)    Conflict with Other Agreements; Approvals. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not result in any violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation 

or the loss of a material benefit under, or the creation of a lien, pledge, security interest or other encumbrance on assets (any such conflict, violation, default, right of termination, cancellation or acceleration, loss or creation, a "violation") pursuant to any provision of the Articles of Incorporation or Bylaws or any organizational document of GREEN DRAGON FL or, result in any violation of any loan or credit agreement, note, mortgage, indenture, lease, benefit plan or other agreement, obligation, instrument, permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to GREEN DRAGON FL which violation would have a material adverse effect on GREEN DRAGON FL taken as a whole. No consent, approval, order or authorization of, or registration, declaration or filing with, any court, administrative agency or commission or other governmental authority or instrumentality, domestic or foreign (a "Governmental Entity") is required by or with respect to GREEN DRAGON FL in connection with the execution and delivery of this Agreement by GREEN DRAGON FL or the consummation by GREEN DRAGON FL of the transactions contemplated hereby.

(f)    Books and Records. GREEN DRAGON FL has made and will make available for inspection by FIT SUM upon reasonable request all the books of GREEN DRAGON FL relating to the business of GREEN DRAGON FL. Such books of GREEN DRAGON FL have been maintained in the ordinary course of business. All documents furnished or caused to be furnished to FIT SUM by GREEN DRAGON FL are true and correct copies, and there are no amendments or modifications thereto except as set forth in such documents.

(g)    Compliance with Laws. GREEN DRAGON FL is and has been in compliance in all material respects with all laws, regulations, rules, orders, judgments, decrees and other requirements and policies imposed by any Governmental Entity applicable to it, its properties or the operation of its businesses.

(h)    Dilutive Securities. GREEN DRAGON FL has no dilutive securities of any kind, including but not limited to warrants, options or employee stock options outstanding.

(i)    Litigation. There is no suit, action or proceeding pending, or, to the knowledge of GREEN DRAGON FL, threatened against or affecting GREEN DRAGON FL which is reasonably likely to have a material adverse effect on GREEN DRAGON FL, nor is there any judgment, decree, injunction, rule or order of any Governmental Entity or arbitrator outstanding against GREEN DRAGON FL having, or which, insofar as reasonably can be foreseen, in the future could have, any such effect.

(j)    Tax Returns. GREEN DRAGON FL has duly filed or will file prior to Closing any tax reports and returns required to be filed by it and has fully paid all taxes and other charges claimed to be due from it by any federal, state or local taxing authorities. There are not now any pending questions relating to or claims asserted for, taxes or assessments asserted upon GREEN DRAGON FL.

2.2    Representations and Warranties of FIT SUM. FIT SUM represents and warrants to GREEN DRAGON FL as follows:

(a)    Organization, Standing and Power. FIT SUM is a corporation duly organized, validly existing and in good standing under the laws of the British Virgin Islands; each company has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted, and is duly qualified and in good standing to do business in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification necessary except for any such failure, which when taken together with all other failures, is not likely to have a material adverse effect on the business of the relevant Acquirer taken as a whole. For purpose of this Section 2.2, “material adverse effect” shall mean, with respect to each Acquirer, the result of one or more events, charges or effects which, individually or in the aggregate, would have a material adverse effect or impact on the business, assets, results of operations, intellectual property rights, prospects or financial condition of such party, taken as a whole, or is reasonably likely to delay or prevent the consummation of the transactions contemplated hereby.

(b)    Capital Structure. There are no options, warrants, calls, agreements or other rights to purchase or otherwise acquire from FIT SUM at any time, or upon the happening of any stated event, any share of the capital stock of FIT SUM.

(c)    Certificate of Incorporation, Bylaws and Minute Books. Copies of the Certificate of Incorporation and of the other corporate documents of FIT SUM which will be delivered to GREEN DRAGON FL are true, correct and complete copies thereof. The minute books of FIT SUM which will be made available for inspection contain accurate minutes of all meetings and accurate consents in lieu of meetings of the Board of Directors (and any committee thereof) and of the shareholders of FIT SUM since the date of incorporation and accurately reflect all transactions referred to in such minutes and consents in lieu of meetings.

(d)    Authority. FIT SUM has all requisite power to enter into this Agreement and, subject to approval of the proposed transaction by its shareholders, has the requisite power and authority to consummate the transactions contemplated hereby. Except as specified herein, no other corporate or shareholder proceedings on the part of FIT SUM are necessary to authorize the Exchange and the other transactions contemplated hereby.

 

(e)    Conflict with Agreements; Approvals. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, conflict with, or result in any violation of any provision of the Certificate of Incorporation or Bylaws of FIT SUM or of any loan or credit agreement, note, mortgage, indenture, lease, benefit plan or other agreement, obligation, instrument, permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to FIT SUM or its properties or assets except for any such conflict or violation, which when taken together with all other conflict or violation, is not likely to have a material adverse effect on the business of the relevant Acquirer taken as a whole. 

No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Entity is required by or with respect to FIT SUM in connection with the execution and delivery of this Agreement by FIT SUM, or the consummation by FIT SUM of the transactions contemplated hereby.

(f)    Books and Records. FIT SUM has made and will make available for inspection by GREEN DRAGON FL upon reasonable request all the books of account, relating to the business of FIT SUM. Such books of account have been maintained in the ordinary course of business. All documents furnished or caused to be furnished to GREEN DRAGON FL by FIT SUM are true and correct copies, and there are no amendments or modifications thereto except as set forth in such documents.

(g)    Compliance with Laws. FIT SUM is and has been in compliance in all material respects with all laws, regulations, rules, orders, judgments, decrees and other requirements and policies imposed by any Governmental Entity applicable to it, its properties or the operation of its businesses.

(h)    Liabilities and Obligations. FIT SUM has no material liabilities or obligations (absolute, accrued, contingent or otherwise) except (i) liabilities that are reflected and reserved against on the FIT SUM financial statements delivered to GREEN DRAGON FL that have not been paid or discharged since the date thereof and (ii) liabilities incurred since the date of such financial statements in the ordinary course of business consistent with past practice and in accordance with this Agreement.

(i)    Litigation. There is no suit, action or proceeding pending, or, to the knowledge of FIT SUM threatened against or affecting FIT SUM, which is reasonably likely to have a material adverse effect on FIT SUM, nor is there any judgment, decree, injunction, rule or order of any Governmental Entity or arbitrator outstanding against FIT SUM having, or which, insofar as reasonably can be foreseen, in the future could have, any such effect.

(j)    Taxes. FIT SUM has filed or will file within the time prescribed by law (including extension of time approved by the appropriate taxing authority) all tax returns and reports required to be filed with all other jurisdictions where such filing is required by law; and FIT SUM has paid, or made adequate provision for the payment of all taxes, interest, penalties, assessments or deficiencies due and payable on, and with respect to such periods. FIT SUM knows of (i) no other tax returns or reports which are required to be filed which have not been so filed and (ii) no unpaid assessment for additional taxes for any fiscal period or any basis therefore.

(k)    Licenses, Permits; Intellectual Property. FIT SUM owns or possesses in the operation of its business all material authorizations which are necessary for it to conduct its business as now conducted. Neither the execution nor delivery of this Agreement nor the consummation of the transactions contemplated hereby will require any notice or consent under or have any material adverse effect upon any such authorizations.

 2.3    Additional Representations and Warranties. 

(a)    Shares Free and Clear. The shares of FIT SUM are free and clear of any liens, claims, options, charges or encumbrances of any nature.

(b)    Unqualified Right to Transfer Shares. The shareholders of FIT SUM have the unqualified right to sell, assign, and deliver the shares of FIT SUM and, upon consummation of the transactions contemplated by this Agreement, GREEN DRAGON FL will acquire good and valid title to such shares, free and clear of all liens, claims, options, charges, and encumbrances of whatsoever nature.

(c)    Agreement and Transaction Duly Authorized. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will constitute a violation or default under any term or provision of any contract, commitment, indenture, other agreement or restriction of any kind or character to which such shareholders are a party or by which such shareholders are bound.

(d)    Share Ownership. Shareholders are presently shareholders of FIT SUM.

 

ARTICLE III

COVENANTS RELATING TO CONDUCT OF BUSINESS

RESERVED

ARTICLE IV

ADDITIONAL AGREEMENTS AND RELATED TRANSACTIONS

4.1    Restricted GREEN DRAGON FL Shares. The Exchange Shares will not be registered under the Securities Act, but will be issued pursuant to applicable exemptions from such registration requirements for transactions not involving a public offering and/or for transactions which constitute “offshore transactions” as defined in Regulation S under the Securities Act of 1933. Accordingly, the Exchange Shares will constitute "restricted securities" for purposes of the Securities Act and the holders of Exchange Shares will not be able to transfer such shares except upon compliance with the registration requirements of the Securities Act or in reliance upon an available exemption therefrom. 

4.2    Access to Information. Upon reasonable notice, GREEN DRAGON FL and FIT SUM shall each afford to the officers, employees, accountants, counsel and other representatives of the other company, and with respect to FIT SUM, the Acquired Entities, access to all their respective properties, books, contracts, commitments and records and, during such period, each of GREEN DRAGON FL and FIT SUM shall furnish promptly to the other (a) a copy of each report, schedule, registration statement and other document filed or received by it during such period pursuant to the requirements of Federal or state securities laws and (b) all other information concerning its business, properties and personnel as such other party may reasonably request. Unless otherwise required by law, the parties will hold any such information which is nonpublic 

in confidence until such time as such information otherwise becomes publicly available through no wrongful act of either party, and in the event of termination of this Agreement for any reason each party shall promptly return all nonpublic documents obtained from any other party, and any copies made of such documents, to such other party.

4.3 Legal Conditions to Exchange. Each of GREEN DRAGON FL and FIT SUM shall take all reasonable actions necessary to comply promptly with all legal requirements which may be imposed on itself with respect to the Exchange and will promptly cooperate with and furnish information to each other in connection with any such requirements imposed upon any of them or upon any of their related entities or subsidiaries in connection with the Exchange. Each party shall take all reasonable actions necessary to obtain (and will cooperate with each other in obtaining) any consent, authorization, order or approval of, or any exemption by, any Governmental Entity or other public or private third party, required to be obtained or made by GREEN DRAGON FL or FIT SUM or any of their related entities or subsidiaries in connection with the Exchange or the taking of any action contemplated thereby or by this Agreement.

ARTICLE V

CONDITIONS PRECEDENT

5.1    Conditions to Each Party's Obligation to Effect the Exchange. The respective obligations of each party to effect the Exchange shall be conditional upon the filing, occurring or obtainment of all authorizations, consents, orders or approvals of, or declarations or filings with, or expirations of waiting periods imposed by any governmental entity or by any applicable law, rule, or regulation governing the transactions contemplated hereby. FIT SUM represents and warrant that it has obtained the appropriate required consents of the PRC government, if any

5.2    Conditions to Obligations of GREEN DRAGON FL. The obligation of GREEN DRAGON FL to effect the Exchange is subject to the satisfaction of the following conditions on or before the Closing Date unless waived by GREEN DRAGON FL:

(a)    Representations and Warranties. The representations and warranties of FIT SUM set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and (except to the extent such representations and warranties speak as of an earlier date) as of the Closing Date as though made on and as of the Closing Date, except as otherwise contemplated by this Agreement, and FIT SUM shall complete all government and legal process to transfer the shares of common stock to GREEN DRAGON FL.

(b)    Performance of Obligations of FIT SUM. FIT SUM shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing, and GREEN DRAGON FL shall have received a certificate signed on behalf of GREEN DRAGON FL by the President to such effect.

(c)    Closing Documents. GREEN DRAGON FL shall have received all closing documents as counsel for GREEN DRAGON FL shall reasonably request.

(d)    Consents. FIT SUM shall have obtained the consent or approval of each person whose consent or approval shall be required in connection with the transactions contemplated hereby under any loan or credit agreement, note, mortgage, indenture, lease or other agreement or instrument, except those for which failure to obtain such consents and approvals would not, in the reasonable opinion of GREEN DRAGON FL, individually or in the aggregate, have a material adverse effect on FIT SUM and of its subsidiaries and related entities taken as a whole upon the consummation of the transactions contemplated hereby. FIT SUM shall also have received the approval of its shareholders in accordance with applicable law.

(e)    Due Diligence Review. GREEN DRAGON FL shall have completed to its reasonable satisfaction a review of the business, operations, finances, assets and liabilities of FIT SUM and shall not have determined that any of the representations or warranties of FIT SUM or its shareholders contained herein are, as of the date hereof or the Closing, inaccurate in any material respect or that FIT SUM or its shareholders is otherwise in violation of any of the provisions of this Agreement.

 

(f)    Pending Litigation. There shall not be any litigation or other proceeding pending or threatened to restrain or invalidate the transactions contemplated by this Agreement, which, in the sole reasonable judgment of GREEN DRAGON FL, made in good faith, would make the consummation of the Exchange imprudent. In addition, there shall not be any other litigation or other proceeding pending or threatened against FIT SUM, the consequences of which, in the judgment of GREEN DRAGON FL, could be materially adverse to FIT SUM.

5.3    Conditions to Obligations of FIT SUM. The obligations of FIT SUM to effect the Exchange is subject to the satisfaction of the following conditions unless waived by FIT SUM:

(a)    Representations and Warranties. The representations and warranties of GREEN DRAGON FL set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and (except to the extent such representations speak as of an earlier date) as of the Closing Date as though made on and as of the Closing Date, except as otherwise contemplated by this Agreement, FIT SUM shall have received a certificate signed on behalf of GREEN DRAGON FL by the President to such effect.

(b)    Performance of Obligations of GREEN DRAGON FL. GREEN DRAGON FL shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing Date, and GREEN DRAGON FL shall have received a certificate signed on behalf of GREEN DRAGON FL by the President to such effect.

 

(c)    Closing Documents. FIT SUM shall have received all closing documents as counsel for FIT SUM shall reasonably request.

(d)    Consents. GREEN DRAGON FL shall have obtained the consent or approval of each person whose consent or approval shall be required in connection with the transactions contemplated hereby.

(e)    Due Diligence Review. FIT SUM shall have completed to its reasonable satisfaction a review of the business, operations, finances, assets and liabilities of GREEN DRAGON FL and shall not have determined that any of the representations or warranties of GREEN DRAGON FL contained herein are, as of the date hereof or the Closing Date, inaccurate in any material respect or that GREEN DRAGON FL is otherwise in violation of any of the provisions of this Agreement.

(f)    Pending Litigation. There shall not be any litigation or other proceeding pending or threatened to restrain or invalidate the transactions contemplated by this Agreement, which, in the sole reasonable judgment of FIT SUM, made in good faith, would make the consummation of the Exchange imprudent. In addition, there shall not be any other litigation or other proceeding pending or threatened against GREEN DRAGON FL the consequences of which, in the judgment of FIT SUM, could be materially adverse to GREEN DRAGON FL.

ARTICLE VI

TERMINATION AND AMENDMENT

6.1    Termination. This Agreement may be terminated at any time prior to the Effective Time:

(a)    by mutual consent of GREEN DRAGON FL and FIT SUM;

 

(b)    by either GREEN DRAGON FL or FIT SUM if there has been a material breach of any representation, warranty, covenant or agreement on the part of GREEN DRAGON FL or FIT SUM, as the case may be set forth in this Agreement which breach has not been cured within five (5) business days following receipt by the breaching party of notice of such breach, or if any permanent injunction or other order of a court or other competent authority preventing the consummation of the Exchange shall have become final and non-appealable.

6.2    Effect of Termination. In the event of termination of this Agreement by either GREEN DRAGON FL or FIT SUM as provided in Section 6.1, this Agreement shall forthwith become void and there shall be no liability or obligation on the part of any party hereto. In such event, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses.

6.3    Amendment. This Agreement may be amended by mutual agreement of GREEN DRAGON FL and FIT SUM.   Any such amendment must be by an instrument in writing signed on behalf of each of the parties hereto.

6.4    Extension; Waiver. At any time prior to the Effective Time, the parties hereto, by action taken or authorized by their respective Board of Directors, may, to the extent legally allowed, (a) extend the time for the performance of any of the obligations or other acts of the other parties hereto, (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto and (c) waive compliance with any of the agreements or conditions contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in a written instrument signed on behalf of such party.

.ARTICLE VII

GENERAL PROVISIONS

7.1    Survival of Representations, Warranties and Agreements. All of the representations, warranties and agreements in this Agreement or in any instrument delivered pursuant to this Agreement shall survive the Effective Time for as long as the applicable status of limitation shall remain open.

7.2    Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally, telecopied (which is confirmed) or mailed by registered or certified mail (return receipt requested) to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

(a)  If to GREEN DRAGON FL:

____________________________

____________________________

 

____________________________

____________________________

(b)  If to FIT SUM:

 

____________________________

____________________________

 

____________________________

____________________________

7.3    Interpretation. When a reference is made in this Agreement to Sections, such reference shall be to a Section of this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words "include", "includes" or "including" are used in this Agreement, they shall be deemed to 

be followed by the words "without limitation". The phrase "made available" in this Agreement shall mean that the information referred to has been made available if requested by the party to whom such information is to be made available.

7.4    Counterparts. This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when two or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.

7.5    Entire Agreement; No Third Party Beneficiaries; Rights of Ownership. This Agreement (including the documents and the instruments referred to herein) constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof, and is not intended to confer upon any person other than the parties hereto any rights or remedies hereunder.

7.6    Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of Florida without regard to principles of conflicts of law. Each party hereby irrevocably submits to the jurisdiction of any Florida state court or any federal court in the State of Florida in respect of any suit, action or proceeding arising out of or relating to this Agreement, and irrevocably accept for themselves and in respect of their property, generally and unconditionally, the jurisdiction of the aforesaid courts.

7.7    No Remedy in Certain Circumstances. Each party agrees that, should any court or other competent authority hold any provision of this Agreement or part hereof or thereof to be null, void or unenforceable, or order any party to take any action inconsistent herewith or not to take any action required herein, the other party shall not be entitled to specific performance of such provision or part hereof or thereof or to any other remedy, including but not limited to money damages, for breach hereof or thereof or of any other provision of this Agreement or part hereof or thereof as a result of such holding or order.

 

7.8    Publicity. Except as otherwise required by law or the rules of the SEC, so long as this Agreement is in effect, no party shall issue or cause the publication of any press release or other public announcement with respect to the transactions contemplated by this Agreement without the written consent of the other party, which consent shall not be unreasonably withheld.

7.9    Assignment. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other parties. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns.

IN WITNESS WHEROF, this Agreement has been signed by the parties set forth below as of the date set forth above.

		
	 

	 
	FIT SUM GROUP LIMITED

____________________________

	 

	Lee Kwok Leung

	 

	

GREEN DRAGON WOOD PRODUCTS, INC. 

	 
	

____________________________

	 

	Lee Kwok Leung

	 

	 

	 
	 

	 

	 

	 

	 

	 
	 

	 

	 

EXHIBIT A

			
	Name of Stockholder

	FIT SUM Shares Exchanged

	GREEN DRAGON FL Shares Received 

	Chan Tsz King 

	69,600

	5568000

	Uchida Kazumi

	36,000

	2880000

	Wong Kune Kuan

	36,000

	2880000

	Wai Kau Winnie Lo

	68,800

	5504000

	Chun Ka Tsun

	36,000

	2880000

	Ching Ping Law

	36,000

	2880000

	Wai Man Florence Yip

	36,000

	2880000

	Yuet Ha Wong

	36,000

	2880000

	Lau Shing Ip

	36,000

	2880000

	Ching Ting Law

	36,000

	2880000

	Roger Chi-him Yip

	69,600

	5568000

	Yick Kwan Lam

	36,000

	2880000

	Siu Fai Cheng

	36,000

	2880000

	Mei Cheng Wong

	36,000

	2880000

	Tean Yee Ng

	36,000

	2880000

	Sai Wing Wong

	36,000

	2880000

	Lau Pui Yip

	36,000

	2880000

	Hoi Wah Hui

	36,000

	2880000

	Kam Lan Ho

	36,000

	2880000

	Kam Lam Law

	36,000

	2880000

	Chi Chung Yip

	36,000

	2880000

	Chi Wing Yau

	36,000

	2880000

	Michael J. Daniels

	36,000

	2880000

	Lynnette Harrison

	36,000

	2880000

	David Rees

	36,000

	2880000

	Lee Kwok Leung

	30,000

	2400000

	Mei Ling Law

	7,500

	600000

	 

	 

	 

	Total

	1,037,500

	83000000SB-2/A

Exhibit 10.21  

Personal Employment
Agreement  

Entered into and signed
in Lod on December 19, 2006  

	Between:  	Nimrod
Zehavi I.D. 032051302  

	                    	Address 17
Shprinzak, Tel Aviv 

(the "Employee") 

	and:  	Future
I.T. Ltd. Private Company 51-355602-7 
4 Hamelacha, Northern Industrial
Area, Lod  

(the "Company") 

	Whereas  	the
 Company  offered  the  Employee  to be  employed  thereby  as a full time  salaried
                  employee; and 

	Whereas  	the
Employee accepted the offer; and 

	Whereas  	the
 parties  wish to  regulate  their  mutual  rights  and  obligations  in  connection
therewith; 

Therefore, it has been
agreed and stipulated  

by and between the
parties as follows:  

	1.  	The
          preamble above constitutes an integral part of the agreement. 

	2.  	The
date of commencement of work: September 1, 2005. 

	3.  	Scope
of the position: Full time position – 5 days in a week. 

	 	
Working
hours: Senior employee and/or an employee in a fiduciary position, and based on an
undertaking to perform the work irrespective of the working hours component. 

1

	4.  	Employee’s
Function: CEO of the Company. 

	5.  	Terms
of Compensation:  

	 	
Base
salary – NIS 21,000 gross, beginning in January 2007.  

	 	
The
Employee’s salary shall be paid to the Employee at the end of each month of his
employment, no later than the 10th day of the following month. 

	 	
In
addition, the following bonus components exist:  

	 	a. 	NIS
9,000 quarterly bonus to be paid in the last salary of each quarter, i.e. in
               the salaries of: March, June, September, December. 

	 	b. 	Annual
bonus at a minimum rate of two monthly salaries to be paid at the end of
               December each year. 

	6.  	Leave - The Employee shall be entitled to a leave in the period that is determined according
to the law, but no less than 16 days in a year, and after coordination in
advance and receipt of the Company's consent to the anticipated date of
commencement of the leave. Unutilized leave cannot be accrued or redeemed
other than with the Company's prior written consent. 

	7.  	Mobile
Telephone: A mobile telephone shall be made available to the Employee but the
Company shall bear a part of the telephone's expenses in the sum which shall
be updated by the Company from time to time (the "Company's Participation in
the Use of the Mobile Telephone"). Any sum exceeding the Company's
Participation in the Use of the Mobile Telephone shall be paid by the
Employee, and it is agreed that the same shall be deducted from the
Employee's salary in the context of non-mandatory deductions. Any and all
debts which the Employee will accumulate, if any, due to the use of the Mobile
Telephone, shall be deducted from any sum due to the Employee from the Company.
The Employee confirms that he shall bear the payment of the taxes which apply
due to the imputation of the component of the telephone benefit in his salary.  

	8.  	Sick
Pay - According to the law; Convalescence Pay - According to the law;  

	9.  	Advance
Notice - Subject to the fulfillment of the Employee's obligation to train his
replacement for such period of time as shall be required by the trainee or the
Company's Board of Directors, the Employee shall be entitled to 60 days
of advance notice with full compensation (and all the accompanying
benefits according to this agreement) without the employee working in the
Company in the advance notice period. 

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	10.  	Car
 - The Company shall allot a Car to the Employee whose current expenses shall be
borne by the Company, however, the Employee is responsible for accident
damage and/or traffic violations, parking tickets etc. in the entire
period of the agreement and/or the period of possession of the car by the
Employee, whichever is later between the two. In the event that a car will not
be allotted, travel expenses shall be paid according to the law. 

	11.  	Managers'
Insurance  

	 	11.1. 	From
the date of  commencement  of the Employee's  employment and subject to the directives to
be                   determined  from  time  to time by the  Income  Tax  Commission,
 and  according  to the                   permitted  deduction  cap,  the  Company  shall
 remit to the  insurance  company of its                   choice, in the context of
managers'  insurance for the Employee,  a sum that is equal to                   13.33%
of the total salary (excluding car allowance,  per diems and telephone  expenses)
                  due , and the  Employee  shall  remit at his  expense  a sum  equal  to
5% of the  total                   salary (excluding car allowance,  per diems,  bonuses,
 overtime and telephone expenses)                   due to his share in the insurance.

	 	11.2. 	In
the event that the Employee has an existing  managers'  insurance  policy,  the Company
 shall                   bear the above  remittances  to the credit of the existing
 policy,  subject to that the                   employer's  remittances shall not exceed
13.33%:  8.33% for severance pay and 5% for the                   employer's provident
payments.

	 	11.3. 	The
Employee  hereby agrees to a deduction of 5% as aforesaid  from his salary for the
purpose of                   the managers' insurance policy.

	 	11.4. 	The
Company  undertakes to transfer the  Employee's  share and its share as aforesaid  each
month                   on a current basis to the managers' insurance policy.

	 	11.5. 	The
 Company  shall remit up to an  additional  2.5% from the  Employee's  salary for the
loss of                   working capacity component in the above managers' insurance
policy.

	 	11.6. 	The
Company's  payments  according to this section shall be in accordance  with Section 14 of
the                   Severance  Pay Law and  performance  of the  payments  by the
 Company  shall  fully and                   finally  exhaust the  Employee's  rights for
 severance pay according to any law. In the                   event of  termination  or
 resignation - the Employee shall only be entitled to payments
                  according  to the  managers'  insurance  policy  and under the terms
 determined  in the                   managers' insurance policy.

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	 	11.7. 	The
Employee hereby agrees to the arrangement as specified in this Section which is
compatible , inter alia, with the general approval pertaining to
employers' payments to a pension fund and to an insurance fund,
published in Official Gazette 4659 dated June 9, 1968. 

	12.  	General:  

	 	12.1. 	The
Employee  shall  dedicate his entire  time,  work  capacity and energy for the benefit of
the                   Company's affairs.

	 	12.2. 	The
Employee shall have no bearing on matters which involve the  generation of personal
 benefit,                   competition  or prejudice or conflict of interests  with the
Company's  affairs,  and is                   subject a duty to immediately report any
such case.

	 	12.3. 	So
long as this  agreement  is  effective,  the Employee  shall not be entitled to undertake
 any                   other  employment.  other than past  clients in the field of
finances  according  to the                   attached  list marked as Annex A and
 constituting  an integral part of the agreement as                   well as lectures
 which the  Employee  gives from time to time,  all subject to that the
                  dates of the  lectures  shall  have been  coordinated  in  advance  and
that  nothing in                   providing  the  above  services  and/or  lectures
 prejudices  the  functioning  of  the                   Employee or his availability at
his work as CEO of the Company.

	 	12.4. 	The
Employee  undertakes  that in the period of this  agreement  and also after the expiry of
its                   effect,  he shall not  disclose  to any  person  and/or  body any
matter  pertaining  to                   commercial  secrets of the Company or
 subsidiaries  or any  information  with regard to                   the business and
affairs of the Company and the  subsidiaries.  The aforesaid  shall not
                  apply to matters  which the  Employee  is  required  to  disclose  for
 purposes  of the                   current work, for its benefit and in the context of
the business thereof.

	 	12.5. 	It
is hereby  clarified  that all the  information  which  reaches the  Employee in the
course of                   this  employment  with the  Company is the  Company's
 property  only,  and it is hereby                   clarified  that the  Employee is not
 entitled  to make any use  thereof  other than for                   purposes of his
 employment  with the  Company  and during the period of his  employment
                  with the Company alone.

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	 	12.6. 	For
 purposes  of this  agreement  and with regard to the  employment  of the  Employee  with
the                   Company,  the terms of a general and/or special  collective
 bargaining  agreement shall                   not apply to the Employee and the Company.

	 	12.7. 	The
Company is entitled to require the Employee to undergo the polygraph  examinations  from
time                   to time, in matters  connected with his  employment and this
contract,  and the Employee                   undertakes  to undergo the required
 examinations  whenever he shall be so required.  It                   is hereby
 explicitly  agreed that in any case that the findings of the  polygraph  will
                  teach of answers  that are untrue,  the  Company  shall be  entitled
 to  terminate  the                   Employee.

	 	12.8. 	Considering
that the Employee is employed according to this agreement in a position requiring a
special degree of personal trust, the provisions of the Hours of
Work and Rest Law, 5711-1951, or any law which will amend or replace
the same (the "Rest Law") do not apply to the Employee and his
employment with the Company and he shall not be entitled to payments
according to the Rest Law. For the avoidance of doubt it is hereby
clarified that the Employee's salary was so determined so that it
already includes in it a component of all the payments that would
have been due to the Employee if the provisions of the Rest Law did
apply to him. 

	 	12.9. 	Car  

	 	12.9.1. 	In
the context of his employment, a car shall be made available to the Employee (the
"Car") and therefore the Employee shall be personally
responsible for any and all violations which will be
performed in the car in the entire period of his
employment with the Company. The Employee is personally
responsible for all the consequences and the expenses,
fines, tickets etc. deriving from any violation which will
be performed by the Car and/or following the use of the Car,
including payment of traffic tickets, fines, payments according to a
judgment, judgments which will be imposed, if any, on
the Car and/or the driver and/or the Company by virtue of
its being the owner and/or renter of the Car (in the case of
a Car which is rented by the Company).  

	 	12.9.2. 	The
Employee is  responsible  for the  cleanliness of the Car, for making it available for
tests,                             for the  presence of parking  vouchers in the Car,
 and for the filling in of                             the Car's work card  either by
 himself or by anyone to whom he will  deliver                             the Car. 

5

	 	12.9.3. 	The
 Employee is  responsible  for all the damage  which will be caused to the Car and/or a
third                             party insofar as the Company's  insurance policy will
not cover such payments                             for any reason  whatsoever  and he
waives any  demand  and/or  claim from the                             Company  in such
case.  The  Employee  is aware that  failure to notify of an
                            accident may entail lack of insurance coverage. 

	 	12.9.4. 	The
 Employee  knows that the taxes  imposed on the  Employee  due to the value of the use of
the                             Car according to law shall be borne by him. 

	 	12.9.5. 	The
Employee  hereby  confirms that he holds a valid drivers'  license for a private  vehicle
and                             hereby  undertakes  to  drive  and  use  the  Car
 according  to all  traffic                             regulations and road safety rules. 

	 	12.9.6. 	The
 Employee is  obligated  to inform the Company of any  accident in which the Car was
involved                             as a condition for the  applicability  of the
insurance  policy which applies                             to the Car.  The  Employee
 undertakes  to fill in an accident  report in any                             case that
the Car is involved in an accident. 

	13.  	It
is  hereby  explicitly  agreed  that  in any  case of a  breach  of  trust,  a  breach
 of the          Employee's  undertaking in Section 12.2 and 12.4 above, the filing of an
indictment  against the          Employee and/or a criminal  conviction  against the
Employee,  the employee shall be immediately          terminated.  In any case in which
the offenses will be against the employer,  the Employee shall          be  terminated
 and the Company  shall be exempt from payment of  severance  pay to the Employee
         until such time as a judgment acquitting the Employee from any charge shall be
issued.

	14.  	Breaches  

	 	
Throughout
the entire term of the agreement and/or employment, the Employee shall not receive any
payment or other benefit from any third party in direct or indirect connection with his
employment. A breach of this provision shall be deemed as the breach of a fundamental term
of this agreement, which entitles the employer to immediately terminate the agreement
without payment of severance pay. In addition, the Employee shall be obligated to
reimburse any sum or benefit which shall have been received by him as aforesaid. 

	15.  	The
parties agree that this agreement  expresses the full agreement  between the Employee and
the          Company.  Any  modification  of this  agreement  shall  be  binding  only if
the  same  shall be          performed in writing and in advance and with the signature
of the parties.

6

In witness whereof,
the parties have hereto set their hands: 

		
	[Stamp of Future I.T. Ltd.]	 
	(-)	(-) 
	The Company 	The Employee 

7

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