Document:

ex10_20.htm

     

    
      

      Loan
Agreement

      

      This
agreement is entered into between and amongst the following parties on November
  10th , 2009.

      

      

      
        	
                1.  

              	
                Shi
      Quanling (the “Lender”), a citizen of the People’s Republic of China,
      resides at Suite 2401, 24th
      floor, China Insurance Group Building, 141 Des Voeux Road, Central, Hong
      Kong.

              

      

      

      
        	
                2.  

              	
                Dongguan
      CHDITN Printing Co., Ltd. (the "Borrower"), a corporation organized under
      the laws of the People’s Republic China, with headquarters at No.6
      Economic Zone, Wushaliwu, Chang’an Town, Dongguang, Guangzhou Province,
      China.  

              

      

      

      In
accordance to the terms and conditions herein, the Lender hereby agrees to
provide the Borrower with a loan of total two million dollars
(USD$2,000,000.00), of which one million dollars (USD$1,000,000.00) will be paid
in RMB 6,827,500.00 based on the current exchange rate of $1=RMB6.8275 (the
“Loan”).

      

      NOW,
THEREFORE, in consideration of the premises and the agreements herein, the
Lender hereby agrees with the Borrower, as follows:

      

      Section 1
Loan

      

      

      
        	
                1.  

              	
                Loan
      Amount:

              

      

      

      RMB SIX
MILLION EIGHT HUNDRED TWENTY SEVEN THOUSAND FIVE HUNDRED (RMB
6,827,500.00);

      

      ONE
MILLION DOLLARS (USD$1,000,000.00)

      

      
        	
                2.  

              	
                Use
      of Proceeds: Set up new printing production
  lines

              

      

      

      
        	
                3.  

              	
                Duration
      of the Loan: one year, from the 10th   day
      of November, 2009 through the 10th  day of
      November, 2010 (the “Maturity
Date”)

              

      

      

      

      
        	
                4.  

              	
                Lender
      and Borrower agree to enter a separate Escrow Agreement to retain an
      escrow agent to supervise the deposit and distribution of the
      Loan.

              

      

      Section 2
Interest

      
        	
                5.  

              	
                The
      interest rate of the Loan shall be 8% per annum.
      The calculation of daily interest rate is based on 360 days per
      year.

              

      

      

      
        	
                6.  

              	
                The
      interest shall be incurred from November 10, 2009, paid per quarter. The
      principal of the Loan shall be due on the Maturity
  Date.

              

      

      

      
        	
                7.  

              	
                With
      consent of the Lender, the Borrower could pay off the loan in full prior
      to the Maturity Date. The interest shall be incurred until the pay date,
      based on the daily interest rate
herein.

              

      

      

      

      
        	
                8.  

              	
                The
      interest shall be withdrawn automatically from the Borrower’s account at
      the interest due date.

              

      

      

      

      Section 3
Guaranty

      

      

      
        	
                9.  

              	
                The
      principal, interest, default interest, and any expenses incurred due to
      the collection of the Loan shall be secured by the total assets owned by
      the Borrower and her associates. A separate guaranty agreement shall be
      entered into between the Lender and the
  Borrower.

              

      

      

      

      
        	
                10.  

              	
                The
      Loan shall be secured by the common shares of Décor Products International
      Inc. (Symbol: DCRD.OB) (the “Shares”) held by the Borrower, the
      certificates of which shall be delivered to JPF Securities Law, LLC., a
      legal firm assigned by the Lender (A Pledge Agreement shall be signed
      separately). The Lender shall have a lien on the Shares pursuant to the
      security law of the People’s Republic of China. When the Event of Default
      occurred, the Lender shall have the preemptive right to the
      Shares.

              

      

      

      

      Section 4
Agreement

      

      
        	
                11.  

              	
                Borrower
      agrees:

              

      

      
        	
                (1)  

              	
                Use
      of proceeds shall remain unchanged pursuant to this
    Agreement;

              

      

      

      
        	
                (2)  

              	
                The
      proceeds shall not be used in any illegitimate
  operation;

              

      

      
        	
                (3)  

              	
                Any
      material changes in the Borrower’s business, including subcontract,
      leasing, merger, split off, reform, joint venture, and so forth, before
      the Maturity Date, the Borrower shall notify the Lender with 30 days prior
      written notice regarding such changes, and the principal and interest of
      the Loan shall become immediately due and
  payable;

              

      

      
        	
                (4)  

              	
                The
      principal and interest of the Loan shall become immediately due and
      payable when the Borrower’s business is dissolved, dismissed, suspended,
      or the business license is revoked.

              

      

      
        	
                (5)  

              	
                Any
      material changes, including lawsuits for significant amount, deterioration
      in financial status, and so on, cause the loan at high risk, the Borrower
      shall notify the Lender with a written notice within   3  
      days upon the event occurring, and the principal and interest of the Loan
      shall become immediately due and
payable;

              

      

      

      
        	
                (6)  

              	
                Provide
      the Lender with necessary information, including balance sheets, income
      statements, all bank accounts information, and so on, on timely basis;
      assist the Lender in due diligence, auditing and inspecting the
      production, operation and assets in connection with the use of
      proceeds.

              

      

      

      

      
        	
                12.  

              	
                Lender
      agrees:

              

      

      
        	
                (1)  

              	
                Deposit
      the Loan in its full amount;

              

      

      

      
        	
                (2)  

              	
                Keep
      confidential to the Borrower’s debt financials, production and
      operation.

              

      

      

      Section 5
Payment Terms

      

      

      The
Lender is entitled to take one of the following payment terms set forth in Item
13 and Item 14:

      

      

      
        	
                13.  

              	
                The
      Borrower agrees herein and accepts, in any day before the maturity date,
      the Loan shall be converted into the common shares of Décor Products
      International Inc. (symbol: DCRD.OB) in part or in full, per the Lender’s
      written notice, pursuant to the terms as
  follows:

              

      

      

      
        	
                (1)  

              	
                The
      conversion price is US$1 per share, based on the current exchange rate of
      $1=RMB6.8275;

              

      

      

      
        	
                (2)  

              	
                Total
      converted shares shall be 2,000,000
shares;

              

      

      

      
        	
                (3)  

              	
                The
      Lender cannot convert more than $25,000 within one week, with the
      exception when the share price is over US$2.00, the Lender can convert up
      to US$500,000 within one week;

              

      

      

      
        	
                (4)  

              	
                Prior
      to the Maturity Date, the Borrower is entitled to redeem the shares
      converted by the Lender, in cash, at the price of 150% of the principal,
      plus the interest incurred and payable to the
  date;

              

      

      

      
        	
                (5)  

              	
                The
      Lender is entitled to exercise 2,000,000 Warrants at the price of $1.00
      per share within five years, which is defined in a separate
      agreement.

              

      

      

      
        	
                14.  

              	
                The
      interest of the Loan shall be paid every quarter starting from November
      10, 2009. The principal and the interest incurred during the last quarter
      prior to the Maturity Date shall be due and payable on the Maturity
      Date.

              

      

      

      If the
Loan are not paid in full on the Maturity Date, the Lender shall have the right
to convert the Loan into the common shares of Décor Products International Inc.
(Symbol: DCRD.OB) at the price of 50% of the weighted average price during the
past 20 trading days prior to the Maturity Date. This right shall be waived in
the event that the conversion price is above $2.00 per share.

      

      

      
        	
                15.  

              	
                Lender’s
      option to payment terms set forth under Item 13 shall not have effect or
      impact on the obligations and enforcement set forth under other items in
      this Agreement. In the event that the conversion fails to be completed,
      the Borrower shall make payments of interest and principal of the Loan in
      accordance to the terms and conditions of this
  Agreement.

              

      

      

      

      

      

      Section 6
Amendment

      
        	
                16.  

              	
                If
      the Borrower intends to extend the Loan, the Borrower shall notify the
      Lender with 60 days prior
      written notice before the Maturity Day and receive a written consent by
      the Lender.

              

      

      
        	
                17.  

              	
                If
      the Borrower intends to transfer the Loan to a third party (the
      “Transferee”), the Borrower shall receive a written consent by the Lender.
      This Agreement remains valid until a new loan agreement is signed between
      and amongst the Transferee and the
Lender.

              

      

      

      
        	
                18.  

              	
                The
      Lender shall have a right to transfer the rights set forth in this
      Agreement to a third party without consent of the Borrower. The Lender
      shall notify the Borrower with a written
notice.

              

      

      
        	
                19.  

              	
                Any
      amendments to this Agreement shall be notified each other with a written
      notice. The amendments shall be finalized in writing upon mutual
      consents.       

              

      

      Section 7
Event of Default

      

      

      
        	
                20.  

              	
                If
      the Borrower fails to make payments of the interest set forth under
      Section 2, the default interest rate shall be 16%, starting from the
      signing date of this Agreement.

              

      

      

      
        	
                21.  

              	
                If
      the Borrower fails to make payments of the interests and principal on the
      Maturity Date, the default interest rate shall be 16%, starting from the
      signing date of this Agreement.

              

      

      

      
        	
                22.  

              	
                If
      the Borrower fails to make payments of the interests and principal on the
      Maturity Date, the Lender shall have rights to keep the proceeds from the
      sales of the pledge and the Shares to the extent of the unpaid interest
      and principal of Loan. The Lender shall have recourse for the outstanding
      balance.

              

      

      

      
        	
                 
      

              	
                       

              

      

      Section 8
Settlement of Disputes

      

      

      
        	
                23.  

              	
                All disputes
      arising out of or in connection with this agreement, both parties
      shall seek for
      the solution by negotiation. If fail in negotiation, the dispute
      shall only be heard in any competent court residing in the Lender’s
      residence.

              

      

      

      Section 9
Miscellaneous

      

      
        	
                24.  

              	
                This
      Agreement shall be effective upon signing date by the authorized
      representative with corporate seal,
  respectively.

              

      

      

      
        	
                25.  

              	
                This
      Agreement shall end upon the full payments for all the outstanding
      interests, principal, default interest, if any, and expenses incurred due
      to the collection of the Loan.

              

      

      

      
        	
                26.  

              	
                The
      Borrower may have changes in the location, mailing address, business
      scope, legal representative, registered
      capital, and so forth. The Borrower shall notify the Lender with a
      written notice within   5  
      days upon the event occurring.

              

      

      
        	
                27.  

              	
                Any
      other matters that are not covered in this Agreement shall be settled in
      compliance with the applicable laws, rules and
  regulations.

              

      

      

      
        	
                28.  

              	
                This
      Agreement shall two original copies, each of which shall be held by the
      Lender and the Borrower,
respectively.

              

      

      
        	
                 
      

              	
                       November
      10th,
      2009

              

      

      

        

      At
Guangzhou

      

      1.           Lender:
Shi Quanling

       

      (Seal)

      

      (Signature)

      

                  

      
        	
                Address:

              	
                Suite
      2401, 24th
      floor, China Insurance Group
Building,

              

      

      
        	
                 
      

              	 	
                141
      Des Voeux Road, Central, Hong Kong

              

      

      

      
        	
                2.  

              	
                Borrower:
      Dongguan CHDITN Printing Co.,Ltd.

              

      

       

      (Seal)

       

      (Signature)

       

      Address:           No.6
Economic Zone, Wushaliwu, Chang’an Town,

                                Dongguang,
Guangzhou Province, Chinaex10_21.htm

     

    
      

       

      PLEDGE
AGREEMENT

       

      THIS PLEDGE AGREEMENT (the
“Agreement”) is
made and entered into as of November 10th, 2009 (the “Effective Date”) by
and among LIU RUI SHENG, an
individual located at No. 6 Economic Zone, Wushaliwu, Chang’an Town,
Dongguan, Guangdong
Province, China (the “Pledgor”) ZHUANG, JINGHUA and SHI,
QUANLING, (the “Pledgees”), and Greentree Financial Group,
Inc., as escrow agent (“Escrow
Agent”).

       

      RECITALS:

       

       

      WHEREAS, in order to secure
the full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of all of the Pledgor’s obligations (the “Obligations”) to the
Pledgees or any successor to the Pledgees under this Agreement, the Subsidiary
Loan Agreement of even date herewith between the subsidiary of the Company
(defined below) and the Pledgees (the “Subsidiary Loan
Agreement”), the Warrants (the “Warrants”) issued or
to be issued by Decor Products International, Inc. (the “Company”) to the
Pledgees, either now or in the future, up to a total of Two Million Three
Hundred Forty Thousand Dollars ($2,340,000), and all other contracts entered
into between the parties hereto (collectively, the “Transaction
Documents”), the Pledgor has agreed to irrevocably pledge to the Pledgees
Thirteen Million Five Hundred Thirty Two Thousand (_13,532,000_) shares
of the Pledgor’s common stock (the “Pledged
Shares”).

       

       

      NOW, THEREFORE, in
consideration of the mutual covenants, agreements, warranties, and
representations herein contained, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

       

       

      TERMS AND
CONDITIONS

       

       

      1. Pledge
and Transfer of Pledged Shares.

       

       

      1.1. The
Pledgor hereby grants to Pledgees a security interest in all Pledged Shares as
security for the obligations under the Subsidiary Loan Agreement, Guaranty and
Warrants. Simultaneously with the execution of the Transaction Documents, the
Pledgor shall deliver to the Escrow Agent stock certificates representing the
Pledged Shares, in such denominations as requested by the Pledgees, together
with duly executed stock powers or other appropriate transfer documents executed
in blank by the Pledgor (the “Transfer Documents”),
and such stock certificates and Transfer Documents shall be held by the Escrow
Agent until the full payment of all amounts due to the Pledgees under the
Subsidiary Loan Agreement through repayment in accordance with the terms of the
Subsidiary Loan Agreement, or the termination or expiration of this
Agreement.

       

       

      2. Rights
Relating to Pledged Shares. Upon the occurrence of an Event of Default
(as defined herein), the Pledgees shall be entitled to vote the Pledged Shares,
to receive dividends and other distributions thereon, and to enjoy all other
rights and privileges incident to the ownership of the Pledged
Shares.

       

      2.1 Further
Pledges. Notwithstanding the
foregoing pledge of 13,532,000 shares by Pledgor as collateral for the loan
from the Pledgees under the Subsidiary Loan Agreement and the limitations
imposed on the Pledgor with respect to the collateral under the terms of the
Agreement and Transaction Documents, the Pledgees hereby agree that the Pledgor
may make a further pledge of the collateral, on a pari-passu basis, to induce
additional lenders to extend credit to the Company (or any of its affiliates
determined on the basis of the GAAP rules for consolidation) for an amount
up to US$3,000,000 in principal amount and including the interest due
thereon and any other obligations arising from such further extension of credit
to the Company. The Pledgees hereby grant permission to Pledgor to be able
to use the collateral for additional loans to the Company without notice or
consent, during the term of the Pledgees extension of credit, whether or
not the prinicpal is repaid when due or whether or not any interest or
other obligation remain outstanding to the Pledgees, provided that the Pledgor
will not further pledge the collateral at and after such time as the Pledgees
commence to exercise their rights to take the collateral in satisfaction of the
obligations to the Pledgees pursuant to the terms of the Transaction
Documents.

       

      3. Release
of Pledged Shares from Pledge. Upon the payment of all amounts due to the
Pledgees under the Subsidiary Loan Agreement by repayment in accordance with the
terms of the Subsidiary Loan Agreement, the parties hereto shall notify the
Escrow Agent to such effect in writing. Upon receipt of such written notice for
payment of the amounts due to the Pledgees under the Subsidiary Loan Agreement,
the Escrow Agent shall return to the Pledgor the Transfer Documents and the
certificates representing the Pledged Shares, (collectively the “Pledged Materials”),
whereupon any and all rights of Pledgees in the Pledged Materials shall be
terminated. Notwithstanding anything to the contrary contained herein, upon full
payment of all amounts due to the Pledgees under the Subsidiary Loan Agreement,
by repayment in accordance with the terms of the Subsidiary Loan Agreement, this
Agreement and Pledgees’s security interest and rights in and to the Pledged
Shares shall terminate.

       

       

      4. Event of
Default. An “Event of Default”
shall be deemed to have occurred under this Agreement upon an Event of Default
under the Transaction Documents.

       

       

      5. Remedies.
Upon and anytime after the occurrence of an Event of Default, the Pledgees shall
have the right to provide written notice of such Event of Default (the “Default Notice”) to
the Escrow Agent, with a copy to the Pledgor. As soon as practicable after
receipt of the Default Notice, the Escrow Agent shall deliver to Pledgees the
Pledged Materials held by the Escrow Agent hereunder. Upon receipt of the
Pledged Materials, the Pledgees shall have the right to (i) sell the
Pledged Shares and to apply the proceeds of such sales, net of any selling
commissions, to the Obligations owed to the Pledgees by the Pledgor under the
Transaction Documents, including, without limitation, outstanding principal,
interest, legal fees, and any other amounts owed to the Pledgees, and exercise
all other rights and (ii) any and all remedies of a secured party with
respect to such property as may be available under the Uniform Commercial Code
as in effect in the State of Florida. To the extent that the net proceeds
received by the Pledgees are insufficient to satisfy the Obligations in full,
the Pledgees shall be entitled to a deficiency judgment against the Pledgor for
such amount. The Pledgees shall have the absolute right to sell or dispose of
the Pledged Shares in any manner it sees fit and shall have no liability to the
Pledgor or any other party for selling or disposing of such Pledged Shares even
if other methods of sales or dispositions would or allegedly would result in
greater proceeds than the method actually used. The Escrow Agent shall have the
absolute right to disburse the Pledged Shares to the Pledgees in batches not to
exceed 9.9% of the outstanding capital of the Pledgor (which limit may be waived
by the Pledgees providing not less than 65 days’ prior written notice to
the Escrow Agent). The Pledgees shall return any Pledged Shares released to it
and remaining after the Pledgees has applied the net proceeds to all amounts
owed to the Pledgees.

       

       

      5.1. Each
right, power and remedy of the Pledgees provided for in this Agreement or any
other Transaction Document shall be cumulative and concurrent and shall be in
addition to every other such right, power or remedy. The exercise or beginning
of the exercise by the Pledgees of any one or more of the rights, powers or
remedies provided for in this Agreement or any other Transaction Document or now
or hereafter existing at law or in equity or by statute or otherwise shall not
preclude the simultaneous or later exercise by the Pledgees of all such other
rights, powers or remedies, and no failure or delay on the part of the Pledgees
to exercise any such right, power or remedy shall operate as a waiver thereof.
No notice to or demand on the Pledgor in any case shall entitle it to any other
or further notice or demand in similar or other circumstances or constitute a
waiver of any of the rights of the Pledgees to any other further action in any
circumstances without demand or notice. The Pledgees shall have the full power
to enforce or to assign or contract is rights under this Agreement to a third
party.

       

       

      5.2. Demand Registration Rights.
In addition to all other remedies available to the Pledgees, upon an
Event of Default, the Pledgor shall promptly, but in no event more than thirty
(30) days after the date of the Default Notice, file a registration
statement to register with the Securities and Exchange Commission the Pledged
Shares for the resale by the Pledgees. The Pledgor shall cause the registration
statement to remain in effect until all of the Pledged Shares have been sold by
the Pledgees.

       

       

      6. Concerning
the Escrow Agent.

       

       

      6.1. The
Escrow Agent undertakes to perform only such duties as are expressly set forth
herein and no implied duties or obligations shall be read into this Agreement
against the Escrow Agent.

       

       

      6.2. The
Escrow Agent may act in reliance upon any writing or instrument or signature
which it, in good faith, believes to be genuine, may assume the validity and
accuracy of any statement or assertion contained in such a writing or
instrument, and may assume that any person purporting to give any writing,
notice, advice or instructions in connection with the provisions hereof has been
duly authorized to do so. The Escrow Agent shall not be liable in any manner for
the sufficiency or correctness as to form, manner, and execution, or validity of
any instrument deposited in this escrow, nor as to the identity, authority, or
right of any person executing the same; and its duties hereunder shall be
limited to the safekeeping of such certificates, monies, instruments, or other
document received by it as such escrow holder, and for the disposition of the
same in accordance with the written instruments accepted by it in the
escrow.

       

       

      6.3.
Pledgees and the Pledgor hereby agree, to defend and indemnify the Escrow Agent
and hold it harmless from any and all claims, liabilities, losses, actions,
suits, or proceedings at law or in equity, or any other expenses, fees, or
charges of any character or nature which it may incur or with which it may be
threatened by reason of its acting as Escrow Agent under this Agreement; and in
connection therewith, to indemnify the Escrow Agent against any and all
expenses, including attorneys’ fees and costs of defending any action, suit, or
proceeding or resisting any claim (and any costs incurred by the Escrow Agent
pursuant to Sections 6.4 or 6.5 hereof). The Escrow Agent shall be vested
with a lien on all property deposited hereunder, for indemnification of
attorneys’ fees and court costs regarding any suit, proceeding or otherwise, or
any other expenses, fees, or charges of any character or nature, which may be
incurred by the Escrow Agent by reason of disputes arising between the makers of
this escrow as to the correct interpretation of this Agreement and instructions
given to the Escrow Agent hereunder, or otherwise, with the right of the Escrow
Agent, regardless of the instructions aforesaid, to hold said property until and
unless said additional expenses, fees, and charges shall be fully paid. Any fees
and costs charged by the Escrow Agent for serving hereunder shall be paid by the
Pledgor.

       

       

      6.4. If
any of the parties shall be in disagreement about the interpretation of this
Agreement, or about the rights and obligations, or the propriety of any action
contemplated by the Escrow Agent hereunder, the Escrow Agent may, at its sole
discretion deposit the Pledged Materials with the Clerk of the United States
District Court Southern District of Florida, sitting in Miami, Florida, and,
upon notifying all parties concerned of such action, all liability on the part
of the Escrow Agent shall fully cease and terminate. The Escrow Agent shall be
indemnified by the Pledgor, the Company and Pledgees for all costs, including
reasonable attorneys’ fees in connection with the aforesaid proceeding, and
shall be fully protected in suspending all or a part of its activities under
this Agreement until a final decision or other settlement in the proceeding is
received.

       

       

      6.5. The
Escrow Agent may consult with counsel of its own choice (and the costs of such
counsel shall be paid by the Pledgor and Pledgees) and shall have full and
complete authorization and protection for any action taken or suffered by it
hereunder in good faith and in accordance with the opinion of such counsel. The
Escrow Agent shall not be liable for any mistakes of fact or error of judgment,
or for any actions or omissions of any kind, unless caused by its willful
misconduct or gross negligence.

       

       

      6.6. The
Escrow Agent may resign upon ten (10) days’ written notice to the parties
in this Agreement. If a successor Escrow Agent is not appointed within this ten
(10) day period, the Escrow Agent may petition a court of competent
jurisdiction to name a successor.

       

       

      6.7 Conflict Waiver. The Pledgor hereby
acknowledges that JPF Securities Law, LLC is securities counsel to the Pledgor
and counsel to the Escrow Agent in connection with the transactions contemplated
and referred herein. The Pledgor agrees that in the event of any dispute arising
in connection with this Agreement or otherwise in connection with any
transaction or agreement contemplated and referred herein,  JPF
Securities Law, LLC shall be permitted to continue to represent the Escrow Agent
and the Pledgor will not seek to disqualify such counsel and waives any
objection Pledgor might have with respect to JPF Securities Law, LLC acting as
securities counsel pursuant to this transaction.

       

       

      6.8 Notices.
Unless otherwise provided herein, all demands, notices, consents, service of
process, requests and other communications hereunder shall be in writing and
shall be delivered in person or by overnight courier service, or mailed by
certified mail, return receipt requested, addressed:

       

       
 

        If
to the Pledgor,
to:                       Decor
Products International, Inc.

      No. 6
Economic Zone, Wushaliwu, Chang’an Town

      Dongguan,
Guangdong Province, China

      Attention:  Mr.
Liu Rui Sheng, President

                                                                 
Telephone  0769-85533948

                                   
Facsimile:                                

      

      With a
copy
to:                                  Jared
P. Febbroriello, Esq. LL.M. 

      JPF
Securities Law, LLC

      19720
Jetton Road

      3rd
Floor

      Cornelius,
NC 28031

      Phone:
(704) 897-8334

      Fax:
(704) 897-8349

      If to the
Pledgees:                   
         Zhuang,
Jinghua

      
        	
                 
      

              	
                Suite
      2401, 24th
      floor, China Insurance Group Building, 141 Des Voeux Road, Central, Hong
      Kong

              

      

      
        	
                 
      

              	
                Telephone:
      00852 21160965

              

      

      
        	
                 
      

              	
                Fax:
      00852 22973635

              

      

      

      Shi,
QuanLing

      
        	
                 
      

              	
                Suite
      2401, 24th
      floor, China Insurance Group Building, 141 Des Voeux Road, Central, Hong
      Kong

              

      

      
        	
                 
      

              	
                Telephone:
      00852 21160965

              

      

      
        	
                 
      

              	
                Fax:
      00852 22973635

              

      

      

      

        With
copy
to:                                

      

      

      Any such
notice shall be effective (a) when delivered, if delivered by hand delivery
or overnight courier service, or (b) five (5) days after deposit in
the United States mail, as applicable.

       

      7. Binding
Effect. All of the covenants and obligations contained herein shall be
binding upon and shall inure to the benefit of the respective parties, their
successors and assigns.

       

       

      8. Governing
Law; Venue; Service of Process. The validity, interpretation and
performance of this Agreement shall be determined in accordance with the laws of
the State of Florida applicable to contracts made and to be performed wholly
within that state except to the extent that Federal law applies. The parties
hereto agree that any disputes, claims, disagreements, lawsuits, actions or
controversies of any type or nature whatsoever that, directly or indirectly,
arise from or relate to this Agreement, including, without limitation, claims
relating to the inducement, construction, performance or termination of this
Agreement, shall be brought in the state courts located in Broward County,
Florida or United States District Courts for the Southern District of Florida,
and the parties hereto agree not to challenge the selection of that venue in any
such proceeding for any reason, including, without limitation, on the grounds
that such venue is an inconvenient forum. The parties hereto specifically agree
that service of process may be made, and such service of process shall be
effective if made, pursuant to Section 8 hereto.

       

       

      9. Enforcement
Costs. If any
legal action or other proceeding is brought for the enforcement of this
Agreement, or because of an alleged dispute, breach, default or
misrepresentation in connection with any provisions of this Agreement, the
successful or prevailing party or parties shall be entitled to recover
reasonable attorneys’ fees, court costs and all expenses even if not taxable as
court costs (including, without limitation, all such fees, costs and expenses
incident to appeals), incurred in that action or proceeding, in addition to any
other relief to which such party or parties may be entitled.

       

       

      10. Remedies
Cumulative. No
remedy herein conferred upon any party is intended to be exclusive of any other
remedy, and each and every such remedy shall be cumulative and shall be in
addition to every other remedy given hereunder or now or hereafter existing at
law, in equity, by statute, or otherwise. No single or partial exercise by any
party of any right, power or remedy hereunder shall preclude any other or
further exercise thereof.

       

       

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

       

       

      12. No
Penalties. No
provision of this Agreement is to be interpreted as a penalty upon any party to
this Agreement.

       

       

      13. JURY
TRIAL. EACH OF THE PLEDGEES AND THE PLEDGOR HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVES THE RIGHT WHICH IT MAY HAVE TO A TRIAL BY JURY OF ANY
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION BASED HEREON, OR ARISING OUT OF, UNDER
OR IN ANY WAY CONNECTED WITH THE DEALINGS BETWEEN PLEDGEES AND PLEDGOR, THIS
PLEDGE AND ESCROW AGREEMENT OR ANY DOCUMENT EXECUTED IN CONNECTION HEREWITH, OR
ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN)
OR ACTIONS OF ANY PARTY HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR
OTHERWISE.

       

       

       

       

      

       

      IN WITNESS WHEREOF, the
parties hereto have duly executed this Pledge Agreement as of the date first
above written

      

      LIU RUI
SHENG

      

      By: /s/ Liu Rui
Sheng                                                      

      Name: Liu Rui Sheng

      Title:   Individual

      

      

      

      

      By: /s/ Zhuang,
Jinghua                                                      

      Name: Zhuang, Jinghua

      Title:   Individual

      

      

      

      

      By: Shi,
Quanling                                           

      Name:
Shi, Quanling

      Title: Individual

      

      

      

      

      GREENTREE FINANCIAL GROUP, INC.

      

      By: R. Chris
Cottone

      Name: R. Chris Cottone

      Title:   Vice-President

       

      

       

       

    

    PLEDGE
AGREEMENT

     

    THIS PLEDGE AGREEMENT (the
“Agreement”) is
made and entered into as of November 10th, 2009 (the “Effective Date”) by
and among LIU RUI SHENG, an
individual located at No. 6 Economic Zone, Wushaliwu, Chang’an Town,
Dongguan, Guangdong
Province, China (the “Pledgor”) ZHUANG, JINGHUA and SHI,
QUANLING, (the “Pledgees”), and Greentree Financial Group,
Inc., as escrow agent (“Escrow
Agent”).

     

    RECITALS:

     

     

    WHEREAS, in order to secure
the full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of all of the Pledgor’s obligations (the “Obligations”) to the
Pledgees or any successor to the Pledgees under this Agreement, the Subsidiary
Loan Agreement of even date herewith between the subsidiary of the Company
(defined below) and the Pledgees (the “Subsidiary Loan
Agreement”), the Warrants (the “Warrants”) issued or
to be issued by Decor Products International, Inc. (the “Company”) to the
Pledgees, either now or in the future, up to a total of Two Million Three
Hundred Forty Thousand Dollars ($2,340,000), and all other contracts entered
into between the parties hereto (collectively, the “Transaction
Documents”), the Pledgor has agreed to irrevocably pledge to the Pledgees
Thirteen Million Five Hundred Thirty Two Thousand (_13,532,000_) shares
of the Pledgor’s common stock (the “Pledged
Shares”).

     

     

    NOW, THEREFORE, in
consideration of the mutual covenants, agreements, warranties, and
representations herein contained, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

     

     

    TERMS AND
CONDITIONS

     

     

    1. Pledge
and Transfer of Pledged Shares.

     

     

    1.1. The
Pledgor hereby grants to Pledgees a security interest in all Pledged Shares as
security for the obligations under the Subsidiary Loan Agreement, Guaranty and
Warrants. Simultaneously with the execution of the Transaction Documents, the
Pledgor shall deliver to the Escrow Agent stock certificates representing the
Pledged Shares, in such denominations as requested by the Pledgees, together
with duly executed stock powers or other appropriate transfer documents executed
in blank by the Pledgor (the “Transfer Documents”),
and such stock certificates and Transfer Documents shall be held by the Escrow
Agent until the full payment of all amounts due to the Pledgees under the
Subsidiary Loan Agreement through repayment in accordance with the terms of the
Subsidiary Loan Agreement, or the termination or expiration of this
Agreement.

     

     

    2. Rights
Relating to Pledged Shares. Upon the occurrence of an Event of Default
(as defined herein), the Pledgees shall be entitled to vote the Pledged Shares,
to receive dividends and other distributions thereon, and to enjoy all other
rights and privileges incident to the ownership of the Pledged
Shares.

     

    2.1 Further
Pledges. Notwithstanding the
foregoing pledge of 13,532,000 shares by Pledgor as collateral for the loan
from the Pledgees under the Subsidiary Loan Agreement and the limitations
imposed on the Pledgor with respect to the collateral under the terms of the
Agreement and Transaction Documents, the Pledgees hereby agree that the Pledgor
may make a further pledge of the collateral, on a pari-passu basis, to induce
additional lenders to extend credit to the Company (or any of its affiliates
determined on the basis of the GAAP rules for consolidation) for an amount
up to US$3,000,000 in principal amount and including the interest due
thereon and any other obligations arising from such further extension of credit
to the Company. The Pledgees hereby grant permission to Pledgor to be able
to use the collateral for additional loans to the Company without notice or
consent, during the term of the Pledgees extension of credit, whether or
not the prinicpal is repaid when due or whether or not any interest or
other obligation remain outstanding to the Pledgees, provided that the Pledgor
will not further pledge the collateral at and after such time as the Pledgees
commence to exercise their rights to take the collateral in satisfaction of the
obligations to the Pledgees pursuant to the terms of the Transaction
Documents.

     

    3. Release
of Pledged Shares from Pledge. Upon the payment of all amounts due to the
Pledgees under the Subsidiary Loan Agreement by repayment in accordance with the
terms of the Subsidiary Loan Agreement, the parties hereto shall notify the
Escrow Agent to such effect in writing. Upon receipt of such written notice for
payment of the amounts due to the Pledgees under the Subsidiary Loan Agreement,
the Escrow Agent shall return to the Pledgor the Transfer Documents and the
certificates representing the Pledged Shares, (collectively the “Pledged Materials”),
whereupon any and all rights of Pledgees in the Pledged Materials shall be
terminated. Notwithstanding anything to the contrary contained herein, upon full
payment of all amounts due to the Pledgees under the Subsidiary Loan Agreement,
by repayment in accordance with the terms of the Subsidiary Loan Agreement, this
Agreement and Pledgees’s security interest and rights in and to the Pledged
Shares shall terminate.

     

     

    4. Event of
Default. An “Event of Default”
shall be deemed to have occurred under this Agreement upon an Event of Default
under the Transaction Documents.

     

     

    5. Remedies.
Upon and anytime after the occurrence of an Event of Default, the Pledgees shall
have the right to provide written notice of such Event of Default (the “Default Notice”) to
the Escrow Agent, with a copy to the Pledgor. As soon as practicable after
receipt of the Default Notice, the Escrow Agent shall deliver to Pledgees the
Pledged Materials held by the Escrow Agent hereunder. Upon receipt of the
Pledged Materials, the Pledgees shall have the right to (i) sell the
Pledged Shares and to apply the proceeds of such sales, net of any selling
commissions, to the Obligations owed to the Pledgees by the Pledgor under the
Transaction Documents, including, without limitation, outstanding principal,
interest, legal fees, and any other amounts owed to the Pledgees, and exercise
all other rights and (ii) any and all remedies of a secured party with
respect to such property as may be available under the Uniform Commercial Code
as in effect in the State of Florida. To the extent that the net proceeds
received by the Pledgees are insufficient to satisfy the Obligations in full,
the Pledgees shall be entitled to a deficiency judgment against the Pledgor for
such amount. The Pledgees shall have the absolute right to sell or dispose of
the Pledged Shares in any manner it sees fit and shall have no liability to the
Pledgor or any other party for selling or disposing of such Pledged Shares even
if other methods of sales or dispositions would or allegedly would result in
greater proceeds than the method actually used. The Escrow Agent shall have the
absolute right to disburse the Pledged Shares to the Pledgees in batches not to
exceed 9.9% of the outstanding capital of the Pledgor (which limit may be waived
by the Pledgees providing not less than 65 days’ prior written notice to
the Escrow Agent). The Pledgees shall return any Pledged Shares released to it
and remaining after the Pledgees has applied the net proceeds to all amounts
owed to the Pledgees.

     

     

    5.1. Each
right, power and remedy of the Pledgees provided for in this Agreement or any
other Transaction Document shall be cumulative and concurrent and shall be in
addition to every other such right, power or remedy. The exercise or beginning
of the exercise by the Pledgees of any one or more of the rights, powers or
remedies provided for in this Agreement or any other Transaction Document or now
or hereafter existing at law or in equity or by statute or otherwise shall not
preclude the simultaneous or later exercise by the Pledgees of all such other
rights, powers or remedies, and no failure or delay on the part of the Pledgees
to exercise any such right, power or remedy shall operate as a waiver thereof.
No notice to or demand on the Pledgor in any case shall entitle it to any other
or further notice or demand in similar or other circumstances or constitute a
waiver of any of the rights of the Pledgees to any other further action in any
circumstances without demand or notice. The Pledgees shall have the full power
to enforce or to assign or contract is rights under this Agreement to a third
party.

     

     

    5.2. Demand Registration Rights.
In addition to all other remedies available to the Pledgees, upon an
Event of Default, the Pledgor shall promptly, but in no event more than thirty
(30) days after the date of the Default Notice, file a registration
statement to register with the Securities and Exchange Commission the Pledged
Shares for the resale by the Pledgees. The Pledgor shall cause the registration
statement to remain in effect until all of the Pledged Shares have been sold by
the Pledgees.

     

     

    6. Concerning
the Escrow Agent.

     

     

    6.1. The
Escrow Agent undertakes to perform only such duties as are expressly set forth
herein and no implied duties or obligations shall be read into this Agreement
against the Escrow Agent.

     

     

    6.2. The
Escrow Agent may act in reliance upon any writing or instrument or signature
which it, in good faith, believes to be genuine, may assume the validity and
accuracy of any statement or assertion contained in such a writing or
instrument, and may assume that any person purporting to give any writing,
notice, advice or instructions in connection with the provisions hereof has been
duly authorized to do so. The Escrow Agent shall not be liable in any manner for
the sufficiency or correctness as to form, manner, and execution, or validity of
any instrument deposited in this escrow, nor as to the identity, authority, or
right of any person executing the same; and its duties hereunder shall be
limited to the safekeeping of such certificates, monies, instruments, or other
document received by it as such escrow holder, and for the disposition of the
same in accordance with the written instruments accepted by it in the
escrow.

     

     

    6.3.
Pledgees and the Pledgor hereby agree, to defend and indemnify the Escrow Agent
and hold it harmless from any and all claims, liabilities, losses, actions,
suits, or proceedings at law or in equity, or any other expenses, fees, or
charges of any character or nature which it may incur or with which it may be
threatened by reason of its acting as Escrow Agent under this Agreement; and in
connection therewith, to indemnify the Escrow Agent against any and all
expenses, including attorneys’ fees and costs of defending any action, suit, or
proceeding or resisting any claim (and any costs incurred by the Escrow Agent
pursuant to Sections 6.4 or 6.5 hereof). The Escrow Agent shall be vested
with a lien on all property deposited hereunder, for indemnification of
attorneys’ fees and court costs regarding any suit, proceeding or otherwise, or
any other expenses, fees, or charges of any character or nature, which may be
incurred by the Escrow Agent by reason of disputes arising between the makers of
this escrow as to the correct interpretation of this Agreement and instructions
given to the Escrow Agent hereunder, or otherwise, with the right of the Escrow
Agent, regardless of the instructions aforesaid, to hold said property until and
unless said additional expenses, fees, and charges shall be fully paid. Any fees
and costs charged by the Escrow Agent for serving hereunder shall be paid by the
Pledgor.

     

     

    6.4. If
any of the parties shall be in disagreement about the interpretation of this
Agreement, or about the rights and obligations, or the propriety of any action
contemplated by the Escrow Agent hereunder, the Escrow Agent may, at its sole
discretion deposit the Pledged Materials with the Clerk of the United States
District Court Southern District of Florida, sitting in Miami, Florida, and,
upon notifying all parties concerned of such action, all liability on the part
of the Escrow Agent shall fully cease and terminate. The Escrow Agent shall be
indemnified by the Pledgor, the Company and Pledgees for all costs, including
reasonable attorneys’ fees in connection with the aforesaid proceeding, and
shall be fully protected in suspending all or a part of its activities under
this Agreement until a final decision or other settlement in the proceeding is
received.

     

     

    6.5. The
Escrow Agent may consult with counsel of its own choice (and the costs of such
counsel shall be paid by the Pledgor and Pledgees) and shall have full and
complete authorization and protection for any action taken or suffered by it
hereunder in good faith and in accordance with the opinion of such counsel. The
Escrow Agent shall not be liable for any mistakes of fact or error of judgment,
or for any actions or omissions of any kind, unless caused by its willful
misconduct or gross negligence.

     

     

    6.6. The
Escrow Agent may resign upon ten (10) days’ written notice to the parties
in this Agreement. If a successor Escrow Agent is not appointed within this ten
(10) day period, the Escrow Agent may petition a court of competent
jurisdiction to name a successor.

     

     

    6.7 Conflict Waiver. The Pledgor hereby
acknowledges that JPF Securities Law, LLC is securities counsel to the Pledgor
and counsel to the Escrow Agent in connection with the transactions contemplated
and referred herein. The Pledgor agrees that in the event of any dispute arising
in connection with this Agreement or otherwise in connection with any
transaction or agreement contemplated and referred herein,  JPF
Securities Law, LLC shall be permitted to continue to represent the Escrow Agent
and the Pledgor will not seek to disqualify such counsel and waives any
objection Pledgor might have with respect to JPF Securities Law, LLC acting as
securities counsel pursuant to this transaction.

     

     

    6.8 Notices.
Unless otherwise provided herein, all demands, notices, consents, service of
process, requests and other communications hereunder shall be in writing and
shall be delivered in person or by overnight courier service, or mailed by
certified mail, return receipt requested, addressed:

     

     
 

      If
to the Pledgor,
to:                       Decor
Products International, Inc.

    No. 6
Economic Zone, Wushaliwu, Chang’an Town

    Dongguan,
Guangdong Province, China

    Attention:  Mr.
Liu Rui Sheng, President

                    
                                           Telephone  0769-85533948

           
                      Facsimile:                                

    

    With a
copy
to:                                  Jared
P. Febbroriello, Esq. LL.M. 

    JPF
Securities Law, LLC

    19720
Jetton Road

    3rd
Floor

    Cornelius,
NC 28031

    Phone:
(704) 897-8334

    Fax:
(704) 897-8349

    

    If to the
Pledgees:                         Zhuang,
Jinghua

    
      	
               
      

            	
              Suite
      2401, 24th
      floor, China Insurance Group Building, 141 Des Voeux Road, Central, Hong
      Kong

            

    

    
      	
               
      

            	
              Telephone:
      00852 21160965

            

    

    
      	
               
      

            	
              Fax:
      00852 22973635

            

    

    

    Shi,
QuanLing

    
      	
               
      

            	
              Suite
      2401, 24th
      floor, China Insurance Group Building, 141 Des Voeux Road, Central, Hong
      Kong

            

    

    
      	
               
      

            	
              Telephone:
      00852 21160965

            

    

    
      	
               
      

            	
              Fax:
      00852 22973635

            

    

    

    

      With
copy
to:                                

    

    

    Any such
notice shall be effective (a) when delivered, if delivered by hand delivery
or overnight courier service, or (b) five (5) days after deposit in
the United States mail, as applicable.

     

    7. Binding
Effect. All of the covenants and obligations contained herein shall be
binding upon and shall inure to the benefit of the respective parties, their
successors and assigns.

     

     

    8. Governing
Law; Venue; Service of Process. The validity, interpretation and
performance of this Agreement shall be determined in accordance with the laws of
the State of Florida applicable to contracts made and to be performed wholly
within that state except to the extent that Federal law applies. The parties
hereto agree that any disputes, claims, disagreements, lawsuits, actions or
controversies of any type or nature whatsoever that, directly or indirectly,
arise from or relate to this Agreement, including, without limitation, claims
relating to the inducement, construction, performance or termination of this
Agreement, shall be brought in the state courts located in Broward County,
Florida or United States District Courts for the Southern District of Florida,
and the parties hereto agree not to challenge the selection of that venue in any
such proceeding for any reason, including, without limitation, on the grounds
that such venue is an inconvenient forum. The parties hereto specifically agree
that service of process may be made, and such service of process shall be
effective if made, pursuant to Section 8 hereto.

     

     

    9. Enforcement
Costs. If any
legal action or other proceeding is brought for the enforcement of this
Agreement, or because of an alleged dispute, breach, default or
misrepresentation in connection with any provisions of this Agreement, the
successful or prevailing party or parties shall be entitled to recover
reasonable attorneys’ fees, court costs and all expenses even if not taxable as
court costs (including, without limitation, all such fees, costs and expenses
incident to appeals), incurred in that action or proceeding, in addition to any
other relief to which such party or parties may be entitled.

     

     

    10. Remedies
Cumulative. No
remedy herein conferred upon any party is intended to be exclusive of any other
remedy, and each and every such remedy shall be cumulative and shall be in
addition to every other remedy given hereunder or now or hereafter existing at
law, in equity, by statute, or otherwise. No single or partial exercise by any
party of any right, power or remedy hereunder shall preclude any other or
further exercise thereof.

     

     

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

     

     

    12. No
Penalties. No
provision of this Agreement is to be interpreted as a penalty upon any party to
this Agreement.

     

     

    13. JURY
TRIAL. EACH OF THE PLEDGEES AND THE PLEDGOR HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVES THE RIGHT WHICH IT MAY HAVE TO A TRIAL BY JURY OF ANY
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION BASED HEREON, OR ARISING OUT OF, UNDER
OR IN ANY WAY CONNECTED WITH THE DEALINGS BETWEEN PLEDGEES AND PLEDGOR, THIS
PLEDGE AND ESCROW AGREEMENT OR ANY DOCUMENT EXECUTED IN CONNECTION HEREWITH, OR
ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN)
OR ACTIONS OF ANY PARTY HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR
OTHERWISE.

     

     

    IN WITNESS WHEREOF, the
parties hereto have duly executed this Pledge Agreement as of the date first
above written

    

    LIU RUI
SHENG

    

    By: /s/ Liu Rui
Sheng                                                      

    Name: Liu Rui Sheng

    Title:   Individual

    

    

    

    

    By: /s/ Zhuang,
Jinghua                                                      

    Name: Zhuang, Jinghua

    Title:   Individual

    

    

    

    

    By: Shi,
Quanling                                           

    Name:
Shi, Quanling

    Title:  Individual

    

    

    

    

    GREENTREE FINANCIAL GROUP, INC.
 

    

    By: R. Chris
Cottone

    Name: R. Chris Cottone

    Title:   Vice-President

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