Document:

Unassociated Document

    
      
        	
                Fenghui
      Leasing Co., Ltd

              	
                Privacy
      Information       
  

              

      

    

      

    Financial
Sale-Back-Lease Contract

    

    Contract
No.: FHL2010SHZIND001

    

    
      Lessor:
Fenghui Leasing Co., Ltd

    

     

    Contact Address: Floor3, Tower
East, No.28 Inner Street, Fuxingmen, Xicheng Dst. Beijing

     

    P.O:100031

     

    Tel:
010-59566399

     

    Fax:
010-59566399

    
 

    Lessee:
Hailun
Xing'anling Dairy Co., Ltd

     

    Contact
Address:  No.3, Dongan Street, North Ring Road, Hailun Town,
Suihua City, Henglongjiang province

     

    P.O:152300

     

    Tel:
0455-5753388

     

    Fax:
0455-5753388

      

    Signing
data: 6/12/2010

     

    Signing
place:         Beijing,
Xicheng Dst.

    
      
         

      

      
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              Fenghui
      Leasing Co., Ltd

            	
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    The
parties agree after negotiations to achieve the goal of financing with the form
of Sale-Back-Lease and sign following articles of Financial Sale-Back-Lease
Contract (hereafter named as “This contract”).

     

    Article 1 Nature of trade and leasing
equipment

     

    The
parties lease back the equipment after transfer of leasing equipment ownership,
that is, the lessee transfers self-owned equipment (hereafter named as “leasing
equipment”, see appendix 2 for detailed equipment information.) to the lessor,
who will lease it back to lessee after getting equipment ownership.

     

    Article
2 Purchasing of leasing equipment

     

    
      	
              1.

            	
              On
      request of lessee, the lessor purchase leasing equipment from the lessee
      with the purpose of leasing back to lessor, and signs Ownership Transfer
      Agreement with the lessee (see annex 3 for Ownership Transfer
      Agreement).

            

    

     

    
      	
              2.

            	
              The
      lessee guarantees its ownership of all leasing equipment, without setting
      any debt claims, any security right and other rights
    burden.

            

    

     

    
      	
              3.

            	
              The
      lessee should provide the lessor all necessary leasing equipment files,
      including but not limited to the ownership certificate and related
      no-third party rights certificate, original copy of original leasing
      equipment purchase, invoice originals, letter of undertaking of the
      contract and other relevant
documents.

            

    

     

    
      	
              4.

            	
              The
      lessee agrees to transfer the ownership of leasing equipment to lessor at
      the price pursuant to paragraph 1 of article 1 of Ownership Transfer
      Agreement (hereinafter referred to as "the transfer
    price").

            

    

     

    
      	
              5.

            	
              According
      to the paragraph 3 of article 2 of the Ownership Transfer Agreement,
      within 5 days after the lessor pays transfer price, the lessee shall hand
      over leasing equipment product quality certificate, product specifications
      and relevant documents attached to the
lessor.

            

    

     

    Article
3 Term of lease

     

    
      	
              1.

            	
              The
      two parties agreed to confirm that, the actual lease commencement date
      under this contract is the transfer price payment date stipulated in
      paragraph 3 of article 2 of the ownership transfer agreement. After paying
      this transfer price, the actual lease commencement date will be listed in
      actual rent payment list (hereafter refer to “actual rent payment list”),
      and the lessee has no question about this. The date listed in rent Payment
      list (hereafter refer to “rent payment list”, see appendix 1) is predicted
      lease commencement date.

            

    

     

    
      
        
        

      

      
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              2.

            	
              Term
      of lease refers to the period from the actual lease commencement date to
      lease expiration date listed in the table of Actual Rent
      Payment.

            

    

    
    

    Article
4 Rental

     

    1. When
signing this contract, because lease commencement date is predicted lease
commencement date, rent payment date for the first phrase agreed on Rent Payment
List is predicted payment date. Within 10 days after the lessor receives Payment
Notice issued by the lessee according to paragraph 3 of article 2 of Ownership
Transfer Agreement and pays the lessee the transfer price, the lessor shall
issue Actual Rent Payment List. The lessee shall sign and accept this list and
pay on time and in full amount unconditionally by list regulation.  If
the lessee fails to sign the Actual Rent Payment List, it does not affect the
lessee’s liability to pay the rent in accordance with the list. The Actual Rent
Payment list is an integral part of this contract, and in case of inconsistence
with Rent Payment List, Actual Rent Payment List shall prevail.

     

    2.Rent payment day
is the rent payment day that the lessee pays rent to the lessor regulated in
Actual Rent Payment List. In case of holidays, a banking day in advance shall
prevail. At the same time, the lessee pays the expense along with rent
payment.

     

    3. If on
the year of lease commencement date and the same day of every year (hereinafter
referred to as the "reference day"), the people's bank of China's benchmark
lending rate of the same period is changed compared with the last year of
reference day, the lessor shall have the right to adjust the rent according to
the current financing cost and adjusted benchmark lending rate. Rent adjustment
day is the first rent payment day after reference day. After adjusting rent
based on above regulations, the lessor shall send Rent Adjustment Notice no less
than 30 days before rent adjustment. The lessee shall follow Rent Adjustment
Notice and pay rent to the lessor unconditionally.

     

    4.Within the lease
term, the lessee agrees unconditionally with this contract and pays the rent and
other payment on time and in full amount according to Actual Rent Payment List.
If payment of the lessee is delayed, from the payment day on, overdue interest
shall be calculated according to the payment amount at 0.5‰ for each delayed day
(hereinafter referred to as "overdue interest"). The lessor has the right to
withdraw payment each time to compensate the overdue payment of interest first,
until payment of all overdue interest.

     

    5. Both
parties shall bear the tax item and fees arising from this contract
respectively. All tax items and fees that any government departments or
institutes collect from the lessee on this contract, shall be borne by the
lessee. And the agreed rent without accounted in the contract, in case of
payment on account by the lessor, the lessee shall pay back lessor immediately.
All tax items and fees collected or calculated on net income of the lessor shall
be borne by the lessor respectively.

     

    6. Due to
operation need, when the lessor transfers rent receivable under the contract to
the third party, the lessor should send out written notice to the lessee, and
the lessee shall cooperate and bear the duty of paying certain amount under this
contract to third party (assignee of the claim).

     

    
      
        
        

      

      
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      Article
5 Down payment, deposits from lessees and the lease fees

       

    

    1. Within 5 days
after signing the contract, the lessee shall pay the lessor down payment,
deposits from lessees and the lease fees in accordance with the provisions of
Rent Payment List. The lease deposit from the lessee shall be used as the
guarantee of the contract. The lessee shall bear the fees along with down
payment, deposits from lessees and the lease fee.

     

    2.The above lease
deposit has no interest accounted, unless otherwise agreed by the contract.
After rent begins, if the lessee has no breach or default of contract or make
relief work of all breach behavior, lessor will handle lease deposit under the
regulation of Rent Payment List.

     

    3. If the lessee
claims to terminate or cancel the contract after paying above down payment
deposits from lessees and the lease fees to lease expire date, or termination of
contract due to the reason out of the lessor, the above down payment deposits
from lessees and the lease fees are not refundable.

     

    Article
6 Lease equipment delivery and possession change

     

    After the
Ownership Transfer Agreement is signed by both parties, from the time that the
lessor pays transfer price according to the paragraph 3 of article 2 of
Ownership Transfer Agreement, the ownership of the leasing equipment is
transferred to the lessor. Due to that the lessee has occupied leasing
equipment; the leasing equipment has no actual occupation transfer. Since the
lessor getting the ownership, the lessor is considered to have delivered leasing
equipment to the lessee.

     

    Article
7 Quality flaw of leasing equipment

     

    Considering
the guarantee in paragraph 2 of article 2 of this contract and the fact that the
leasing equipment is transferred to the lessor by the lessee and rented back to
the lessee by the lessor, so in case of quality flaw of leasing equipment during
leasing term, the lessor bears no liability and the lessee has no right to
recourse to the lessor. The lessee should not refuse or delay to pay the rent
due to the equipment quality defects.

     

    Article
8 Ownership and right of use of leasing equipment

     

    
      	
              1.

            	
              Within
      leasing period, the lessor has ownership of the lease equipment under the
      contract and its appendices. The lessor shall have the right to indicate
      ownership on the lease equipment. The lessee shall regularly or by any
      time provides the lessor provides use damage and maintenance condition,
      allowing the lessor to understand the real condition of the lease
      equipment. The lessor has the right to appoint or authorize the local
      three party to supervise use of leasing equipment; on the condition of not
      affecting the normal operating circumstances, regulator has the right to
      conduct on-the-spot inspection towards leasing equipment. Intellectual
      property rights attached to or related to the leasing equipment belongs to
      the right owner. Use right and other rights of the intellectual property
      right shall obtain the consent of the right owner, otherwise the tort
      liability arising from this shall be borne by the lessee. This contract
      has no effect on the intellectual property ownership and use
      right.

            

    

    
    

    
      
        
        

      

      
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              2.

            	
              On
      the condition that the lessee agrees within contract performance period
      and not affect lessee’s use of leasing equipment, in accordance with the
      relevant provisions of the state, he lessor may transfer all or part of
      the rights under this contract, or set other rights on
      equipment.

            

    

     

    
      	
              3.

            	
              During
      the lease term, the lessee has the right to the full use of
      equipment.

            

    

     

    
      	
              3.1

            	
              The
      lessee shall place the equipment in the appropriate condition by
      designated equipment manufacturers by itself or through the third party;
      keep good conditions and operating conditions, with the relevant expenses
      borne by the lessee.

            

    

     

    
      	
              3.2

            	
              The
      lessee should provide good leasing repair, maintenance and program design
      to leasing equipment, to keep the normal condition and normal function.
      Lease equipment maintenance, repair and program design shall be borne by
      the lessee, and the lessee shall bear all the related expenses. If
      necessary of replacing parts, only spare parts provided by leasing
      equipment suppliers/manufacturers shall be
used.

            

    

     

    
      	
              3.3

            	
              During
      the possession period of the lease equipment, any third party claim
      arising from the lease equipment, including but not limited personal
      injury or property damage caused by lease equipment shall be borne by the
      lessee, and the lessor has no liability. In case of any law suit, claims,
      losses, and costs, the lessee should give full
    compensation.

            

    

     

    
      
        	
                4. 

              	
                 During
      the lease term, unless by written agreement from the lessor, the lessee
      has no right of sublet, lend, mortgage, pledge leasing; shall not sell or
      transfer lease equipment; shall not invest to a third party with leasing
      equipment; shall not leave the lease equipment detained; shall not modify
      or add attachments to the equipment; shall not deliver leasing equipment
      away from the prescribed or designated areas under leasing equipment
      details, and shall not allow third-party  to use the lease
      equipment.

              

      

    

     

    Article
9 Risk and insurance of the leasing equipment

     

    1.During the whole
lease term, the lessee shall bear the risk of damage to or loss of the
equipment, whatever within the scope of insurance or not covered by insurance.
In case of damage or loss situation, the lessee’s other liability such as paying
the rent under this contract shall not be influenced.

     

    2.The lessee shall
issue written notice to the lessor 5 working days before signing the contract,
the lessee has following options towards lease equipment insurance
matters:

     

    2.1 The
lessee shall apply to the insurance company and cover property all risk to lease
equipment with the first beneficiary being the lessor, and bear all cost, and
continue insurance to the performance of all obligations or liabilities under
this contract; or

     

    2.2 In
case that the lessee entrust lessor to handle insurance, the lessor is still the
first beneficiary. And the lessee shall pay the lessor insurance fee according
to regulation of Rent Payment List within 5 days after signing the contract. The
lessee acknowledges and agrees that the insurance expenses are budget insurance
fee. If the fee that lessor actually pays to lease equipment insurance
((including renewed insurance) differs from expenses, the lessee shall pay the
actual insurance fee 5 days after the notification of the lessor.

     

    
      
        
        

      

      
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    If the
lessee fails to make an option according to above agreement or chooses insurance
by its own expense but has no actual purchased insurance, the lessor shall have
the right to pay the rent at the Rent Payment List within the scope of insurance
premium, with the lessee bearing all related expenses.

     

    3.During the lease
term, in case of any insurance accidents, the lessee shall immediately (within
24 hours) notify the lessor and the insurance company, and promptly provides
inspection report and all the related necessary data to the lessor (including
but not limited to 1 insurance accident notice; 2Claim application; 3Photo of
the leasing equipment on the scene of the accident; 4Regular repair invoice,
equipment repair list and other fees invoice such as sue and labour fee and
list, 5Certificate from related departments (such as fire, public security,
meteorology, etc.) According to the different insurance accident; 6If necessary,
provides equity transfer letter and other claim files 7Other relevant
information with insurance accident, etc) in conjunction with the lessor to
insurance company to claim for compensation. If claim is damaged or delayed due
to the lessee’s fault, the lessee shall assume the liability for compensation to
the lessor.

     

    4.In case of partial
damage to the lease equipment when suffering insurance accident, the lessee
shall continue to pay the lessor rent on time and in full amount, and the lessee
shall immediately (within 24 hours) notify the lessor. The lessor shall
negotiate with the insurance company, and the appoint lessee one of the
following disposal method:

     

    4.1
Recover lease equipment to fully recovered condition or normal use
state.

     

    4.2
Replace equipment with equal condition and performance with the leasing
equipment, and the replaced equipment shall be owned by the lessor.

     

    If
insurance claim is not sufficient to cover all necessary fees in 4.1 and 4.2,
the rest part shall be borne by the lessee.

     

    5.After the supplier
delivers the lease equipment to the lessee, if leasing equipment encounters
insurance accident with leasing equipment loss or damage to unrepaired degree,
the lessee shall firstly pay rent to the lessor on time and in full amount unter
the contract. The lessee shall immediately (within 24 hours) notify the lessor.
The lessor shall negotiate with the insurance company, and the appoint one of
the following disposal method:

     

    5.1 The
lessor’s insurance claims and lease deposit amount directly charge against all
repayable such as overdue interest, all unpaid rent and purchase payment. In
case of insufficient payable, the lessee has the obligation to pay insufficient
part; in case of surplus, the lessor shall return to the lessee within 10
working days after getting insurance claims. The contract shall be automatically
terminated after all payment is done under this contract.

     

    
      
        
        

      

      
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    5.2 In
case that the lessor use insurance claims to obtain the lease equipment, and the
received insurance claim is not enough to pay obtaining price, the insufficient
part shall be borne by the lessee. Meanwhile, the two parties continue to
perform this contract.

     

    6.If the leasing
equipment encounters loss and damage outside the scope of insurance, the lessee
shall bear the economic loss and repair the equipment by itself and continue to
perform the contract. The lessee shall pay the rent or pay in advance related
payments after getting written consent of the lessor pay (including but not
limited to overdue interest, rent unpaid when maturity, rent without maturity,
the purchase payment leaved) after obtaining ownership of the lease equipment,
the contract equipment is terminated.

     

    7.Economic loss
caused by insurance accident and influence on the use of leasing equipment, the
lessee shall bear by himself, and this does not affect rent payment on
time.

     

    8. If the
lessee needs to replace the leasing equipment away from specified area, the
lessee shall notify the lessor and the insurance company with written notice 5
working days before relocating the leasing equipment. Any consequences or losses
caused by the lessee’s short of notice or not timely informing, the lessee shall
undertake all the compensation liability.

     

    9.
Insurance disclaimer clauses, namely in case of the following matters, the
insurance company shall not compensate and the lessee shall bear all the
risks.

     

    (1)Stored in outdoor
condition or use of reed mat, tent, ruberoid, plastic or nylon cloth as the
cover or covered leasing equipment suffering wind and frost, cold, rain, snow,
flood , hail, dust, as well as the loss caused

     

    (2)Leasing equipment
loss caused by operation fault of the lessee and employees.

     

    (3)Any loss, fee and
liability caused by intentional or major fault behavior of the lessee and
employees, as well as loss caused by theft of the relatives and employees of the
lessee.

     

    (4)Losses and
expenses by earthquakes and tsunamis.

     

    (5)As to other losses
that lead to the fact that insurance companies shall not compensate, see leasing
equipment insurance policy issued by insurance company.

     

    Article
10 Breach of contract

     

    If the
lessee conducts any of the following behaviors, the lessee shall be considered
to violate this contract seriously.

     

    1. The
lessee fails to pay relevant expenses on time in full amount according to the
provisions of this contract, including but not limited to rents, down payment,
handling charges and deposits.

     

    
      
        
        

      

      
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    2. The
lessee violates the provisions of this contract concerning the transfer,
collateralization, hypothecation and sublease of the leased
equipment.

     

    3. The
lessee or the lessee’s guarantor provides false information in any credit report
and other financial data submitted for this contract.

     

    4. The
lessee closes, terminates, suspends businesses, stops production,
conducts   reorganization and merger, separates and experiences
any events that shall lead to deteriorating operation. The lessee sells and
sells off its important assets or transfers all the assets in batches. The
lessee voluntarily applies for bankruptcy, or is forced to apply for bankruptcy
or enters the process of bankruptcy.

     

    5. The
lessee fails to fulfill the other obligations and violates the promises and
representations of this contract. If the failure to fulfill the obligations and
the breach of contract shall not be relieved within fifteen days since the
lessor issues the notice on breach of contract.

     

    Article
11 Relief methods

     

    If the
lessee conducts any of the above mentioned behaviors in Article 10, the lessor
has the right to adopt any one or several following relief methods to gain
reasonable economic benefits in accordance with this contract.

     

    1.
Require the lessee to pay the overdue interests, due and unmatured rents, hire
purchase funds and other payments immediately.

     

    2. Notify
the lessee to dissolve the contract, and recall and dispose leased equipment
immediately. The lessee shall not lodge a dispute on the methods and results of
the lessor’s disposal of the leased equipment. If the earnings derived from the
recall and disposal of the leased equipment can not cover the overdue interests,
due and unmatured rentals, hire purchase funds and other payments of the lessee
and the expenses arising from the recall and disposal of leased equipment, the
lessee shall be liable to compensate the lessor for the difference.

     

    3.
Full-amount deposits shall not be refunded and shall not offset any payments of
the lessee.

     

    4.
Without legal process and notification, the lessor has the right to stop the
lessee from using the leased equipment.

     

    5. Demand
lessee to pay the expenses of the lessor arising from the fulfillment and
protection of the lessor’s rights stipulated in this contract, including but not
limited to litigation costs, attorney fees, agent fees, consultation and service
charges and the expenses arising from the recall and disposal of leased
equipment.

     

    All the
above mentioned rights and relief methods shall not exclude other rights and
relief methods stipulated by this contract and permitted by laws.

     

    Article
12 Terminal option right

     

    1. If the
lessee never breaches the contract or all its behaviors of breach are relieved,
the lessee shall make terminal option at least five days in advance of the day
for the last payment of rent in written form in following ways:

     

    1.1 If
the lessee chooses to conduct hire purchase of the leased equipment, the lessee
shall pay the hire purchase fund for the leased equipment to the lessor on the
day for last payment of rent listed in the “Statement of Actual Rent
Payment”(the amount is based on the stipulation of the “Statement of Rent
Payment”) and other related expenses shall also be covered by the
lessee.

     

    
      
        
        

      

      
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    2. If the
lessee fails to notify its terminal option in written form or makes terminal
option but fails to fulfill its obligations, the lease period of this contract
will be extended automatically. During the extended lease period, the lessee
shall pay full-amount rents to the lessor in accordance with this contract until
the lessee return the leased equipment in conformity with the provisions of this
contract.

     

    Article
13 Warranty

     

    If
necessary, the lessor shall ask the lessee to provide warranty of a third party
or in other forms. The content of warranty and the obligations of warrantor
shall be listed and signed in relevant letter of warranty.

     

    Article
14 Force majeure

     

    Lessor
shall not be held responsible for any losses of lessee due to force majeure.
Lessee shall not refuse to pay rents for losses caused by force majeure. Force
majeure events include but are not limited to wars, labor disputes, strikes,
earthquakes, fires, floods, demonstrations, riots and government
limitations.

     

    Article
15 Commitment on illegitimate interest transport

     

    The
lessee of this contract shall not have any illegitimate interest transport
relations with the suppliers of the leased equipment or other related legal
persons, individuals to facilitate the reach of this agreement or relevant
contracts, shall not provide and accept any illegitimate interest transport. If
the lessee break commitments, no matter the lessor knows or not, the lessor has
the right to resolve this contract and claim all the losses.

     

    Article
16 Obligations of confidentiality and exception

     

    Both
parties of this contract hold the obligation of confidentiality over all the
materials related to this contract. The obligation of confidentiality of lessee
includes but is not limited to not divulging the lease arrangement and other
commercial secrets of the lessor to a third party. The obligation of
confidentiality of lessor includes but is not limited to not divulging the all
the examination materials submitted by the lessee to a third party. However,
because the lessor joins the state, local and industrial credit reporting
systems, the lessee shall agree to incorporate relevant information to the
related credit reporting systems through the lessor.

     

    Article
17 Representations of both sides

     

    On the
day when both parties sign or reach the contract, both parties represent and
warrant as follows:

     

    1. Both
parties are companies legally registered and validly existing in accordance with
the laws of the People’s Republic of China. Both parties have the qualification
and rights to sign and fulfill this contract and all its annexes.

     

    2. Both
parties have already completed all the examination, verification and recording
procedures in accordance with laws and regulations of the People’s Republic of
China and signed this contract by representatives who have been given the
authorization through proper internal examination process. This contract shall
be legally valid and bonding to both parties and enforceable after the contract
is signed by the above mentioned representatives and stamped by the official
seal or the specific seal for contract.

     

    
      
        
        

      

      
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    3. Both
parties warrant: both parties sign and fulfill this contract, shall not violate
the laws, regulations and rules of the People’s Republic of China, shall not
violate any provisions in any verdict, order, government regulations and
organization documents that are bonding to either party. Both parties shall not
lead to the failure to fulfill any agreement or the breach of contract which is
participated by either party or is bonding to either party.

     

    Article
18 Laws applied and legal jurisdiction

     

    1. The
titles contained in this contract are only for the convenience of writing and
shall not have influence on the meaning of any provisions and
sentences.

     

    2. The
laws of the People’s Republic of China are applicable to this contract. If any
provision is ruled as legally null and non-enforceable, all the other provisions
continue to be effective.

     

    3. All
disputes in connection with this contract and its annexes shall be settled
friendly through negotiation. In case no settlement can be reached, the case
then may be submitted for people’s court which has jurisdiction over the area
where the contract is signed. All the litigation costs (including but not
limited to the legitimate attorney fees of the wining party) shall be borne by
the losing party.

     

    4. If the
contact address of the lessee is changed, the lessee shall notify the lessor in
time. If the lessee fails to notify the change of address to the lesser in time
in written form, the lessor shall regard the address of the lessee recorded in
this contract as contact address and send relevant notices and documents to this
address of lessee, including but not limited to Actual Rent Payment List, notice
letter on breach of contract. The lessor shall send the above mentioned notices
in the form of registered letter or express delivery. After the seven natural
days since the delivery day, the letter shall be regarded as
delivered.

     

    Article
19 Contract completeness

     

    1. This
contract and its annexes form the complete contract on the lease of equipment
between both parties. Unless the lessor issues written consent, the lessee shall
not make any change in this contract and its annexes.

     

    2. The
annexes of this contract

     

    
      	
               
      

            	
              2.1

            	
              Lease
      Schedule (Annex 1)

            

    

     

    
      	
               
      

            	
              2.2

            	
              Lease
      equipment details (Annex 2)

            

    

     

    
      	
               
      

            	
              2.3

            	
              Ownership
      transfer agreement (Annex 3)

            

    

     

    Article
20 Contract comes into effect and its legal effect

     

    1. This
contract and its annexes shall be established since the day when both parties
sign and stamp them, and come into effect since the day when the lessor receive
full-amount down payment, deposits, and handling charges from lessee. Since this
contract comes into effect, the lessee shall not terminate and cancel this
contract in advance, unless the lessor issues written consent.

     

    
      
        
        

      

      
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    2. There
are three originals of this contract. Lessor will hold two originals.
Leaseholder will hold one original.

     

    
      
        
          	
                  Lessor:  Fenghui
      Leasing Co., Ltd

                	
                  Lessee:
      Hailun Xing'anling Dairy Co., Ltd

                
	 
      	 
      
	
                  Seal

                	
                  Seal

                
	 	 
	Signature
      from legal representative/authorized agent /s/ Zhang Guang Bin  	Signature
      from legal representative/authorized agent /s/ Yang Yong Shan  

        

      

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Annex
I: Lease Schedule

     

    Leased
equipment description: Production line for whole milk powder and formula mild
powder

    Leased
equipment supplier: Heilongjiang Laoli Dairy Machinery Co.Ltd of the US Laoli
Group

    Leased
equipment purchase price: RMB 35 million

    Leased
equipment installation location:  No.3, Dongan Street, North Ring
Road, Hailun Town, Suihua City, Henglongjiang province

    Expected
and actual lease commencement date:  Expected lease commencement date
is in June, ××× , 2010,  expected date of first rent payment is July,
××× ,2010. Actual lease commencement date shall be determined by the day when
the lessee signs the Lease Receipt Certificate, and
the lessee agrees.

    Options
upon lease termination: Hire Purchase leased equipment

    
 

    
      	
              Deposits
      from lessee: RMB 5.25 million

              Commission
      fee: RMB 1.05 million

              First
      payment: RMB 0 Yuan

              Deposit
      Premium: RMB 0 Yuan

            	
                

            	
              Deposits
      from lessee, handling charges, down payment and deposit premium shall be
      payed within 5 days after signing. If lessee terminates or cancels the
      contract before the lease commencement date, payments shall not be
      refunded no matter the lessor agrees or not. Once the contract comes into
      effect, handling charges and down payment shall not be refunded. From
      lease commencement to termination, if the lessee never breaches the
      contract or all its behaviors of breach are relieved, the deposit from
      lessee shall be refunded within 5 working days.  When the lease
      terminates, if the lessee never breaches the contract or all its behaviors
      of breach are relieved, the lessee’s demand of paying the rest rent with
      deposit shall be granted.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	
              Fenghui
      Leasing Co., Ltd

            	
              Privacy
      Information       
  

            

    

     

    The
lessor shall issue the Actual Rent Payment List based on the Rent Payment List
to the lessee when the actual lease commencement date is specified. The
Statement shall list date for each payment, the lessee shall sign the Statement
and pay rent in full amount and on time according to the provisions of the
Statement. If the lessee fails to receive or sign the Statement, the lessee must
shoulder obligations of payment. If any differences exist between the two
statements, both parties must comply with the Actual Rent Payment
List.

     

    
      
        
          
            
              
                
                  
                    	
                            Lease Period

                          	 	
                            Rent for each term(RMB

                            Yuan)

                          	 	
                            Lease Period

                          	 	
                            Rent for each term(RMB Yuan)

                          	 
	
                            No.1

                          	 	RMB	1,112,991.00	 	
                            No.19

                          	 	RMB	1,112,991.00	 
	
                            No.2

                          	 	RMB	1,112,991.00	 	
                            No.20

                          	 	RMB	1,112,991.00	 
	
                            No.3

                          	 	RMB	1,112,991.00	 	
                            No.21

                          	 	RMB	1,112,991.00	 
	
                            No.4

                          	 	RMB	1,112,991.00	 	
                            No.22

                          	 	RMB	1,112,991.00	 
	
                            No.5

                          	 	RMB	1,112,991.00	 	
                            No.23

                          	 	RMB	1,112,991.00	 
	
                            No.6

                          	 	RMB	1,112,991.00	 	
                            No.24

                          	 	RMB	1,112,991.00	 
	
                            No.7

                          	 	RMB	1,112,991.00	 	
                            No.25

                          	 	RMB	1,112,991.00	 
	
                            No.8

                          	 	RMB	1,112,991.00	 	
                            No.26

                          	 	RMB	1,112,991.00	 
	
                            No.9

                          	 	RMB	1,112,991.00	 	
                            No.27

                          	 	RMB	1,112,991.00	 
	
                            No.10

                          	 	RMB	1,112,991.00	 	
                            No.28

                          	 	RMB	1,112,991.00	 
	
                            No.11

                          	 	RMB	1,112,991.00	 	
                            No.29

                          	 	RMB	1,112,991.00	 
	
                            No.12

                          	 	RMB	1,112,991.00	 	
                            No.30

                          	 	RMB	1,112,991.00	 
	
                            No.13

                          	 	RMB	1,112,991.00	 	
                            No.31

                          	 	RMB	1,112,991.00	 
	
                            No.14

                          	 	RMB	1,112,991.00	 	
                            No.32

                          	 	RMB	1,112,991.00	 
	
                            No.15

                          	 	RMB	1,112,991.00	 	
                            No.33

                          	 	RMB	1,112,991.00	 
	
                            No.16

                          	 	RMB	1,112,991.00	 	
                            No.34

                          	 	RMB	1,112,991.00	 
	
                            No.17

                          	 	RMB	1,112,991.00	 	
                            No.35

                          	 	RMB	1,112,991.00	 
	
                            No.18

                          	 	RMB	1,112,991.00	 	
                            No.36

                          	 	RMB	1,112,991.00	 

                  

                

              

            

          

        

      

    

    

    
      
        	
                Total
      Rent Period: 36 Periods

                Term
      of lease: 36 months

              	 
      	
                Total
      Contract Amount: RMB 41,157,788.00

                Total
      Contract Amount includes down payment, handling charges and
      rents.

              
	 	 	 
	
                Payment
      Interval: Once every month

              	
                  

              	
                Means
      of payment: Payment at the end of each
period

              

      

    

    

    Within
the lease, the lessee shall never cancel the contract and must make
unconditional promise that rent shall be remitted to the lessor’s designated
bank account five working days before the payment day. Rent shall be paid on the
nearest working day in advance in the event of holidays or weekends and the
lessee shall pay fees of payment. The designated account is 0200 2153
0920 001 5115 with the account title Fenghui Lease Co.,
Ltd in the Funei Outlet of Beijing ICBC Branch. A delay in payment shall
be punished with default interest in accordance with Article 4 in the
contract.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	
              Fenghui
      Leasing Co., Ltd

            	
              Privacy
      Information       
  

            

    

     

    According
to articles and conditions in the contract and annexes, the lessor hereby agrees
to rent out, the lessee agrees to rent the leased equipment detailed in the
contract. The contract is formed upon the signature of the legal representative
or authorized agent of both parties, and it comes into force when the lessor
receives the down payment, deposits from lessee, handling charges, and deposit
premium (if any). Once the contract comes into force, the lessee must not
terminate or cancel this contract, unless the lessor issues written consent. If
there is any contradiction between the above-mentioned provisions and the
clauses and provisions written in the contract, the above-mentioned provisions
shall govern.

     

    
      
        
          
            
              	
                      Lessor:Fenghui
      Leasing Co., Ltd

                    	
                      Lessee: Hailun
      Xing'anling Dairy Co.,
Ltd

                    

            

          

        

      

    

    
    

    Seal and Signature from Legal
representative / Authorized
agent                   
Seal and Signature from Legal representative / Authorized agent

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
    

    
      	
              Fenghui
      Leasing Co., Ltd

            	
              Privacy
      Information       
  

            

    

     

    Annex
II

    
 

    Leased
Equipment Details

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          Leased

                                          equipment

                                        	 	
                                          Item No/ Product

                                          Norm

                                        	 	
                                          Number

                                        	 	
                                          Price per unit

                                          RMB)

                                        	 	
                                          Equipment

                                          Delivery

                                          location 

                                        	 	
                                          Supplier/producer

                                        
	
                                          Triple-effect
      falling-film
      evaporator

                                        	 	
                                          9000KG/H

                                        	 	
                                          1
      unit

                                        	 	 	27,750,000.00	 	
                                          Hailun

                                        	 	
                                          US
      Laoli Equipment

                                        
	
                                          New
      spray drying tower with upper ventilation

                                        	 	
                                          1500KG/H

                                        	 	
                                          1
      unit

                                        	 	 	32,850,000.00	 	
                                          Hailun

                                        	 	
                                          US
      Laoli
Equipment

                                        

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    Total
purchase amount: say sixty million, six hundred thousand yuan only

    Leased
equipment installation location: No.3, Dongan Street, North Ring Road, Hailun
Town, Suihua City, Henglongjiang province

     

    Lessor(seal): Hailun
Xing'anling Dairy Co., Ltd

    
    

    Legal
representative / Authorized agent(signature):

       

    
      Lessee(seal):Fenghui Leasing
Co., Ltd

    

     

    Legal
representative / Authorized agent(signature):

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Annex 3

    
      
        
        

        Ownership
Transfer Agreement

         

        
          Transferee: Fenghui
Leasing Co.,
Ltd (hereafter
abbreviated as “lessor” )

        

         

        Transferer: Hailun
Xing'anling Dairy Co., Ltd (hereafter abbreviated as
“lessee”)

         

        The
lesser shall transfer the equipment in its own possession to the lesser and
shall lease back the equipment. Both parties shall make this ownership transfer
agreement in accordance with the following provisions (hereafter referred to as
“this agreement”)

         

        I.     Transferred
leased equipment

      

       

       

      
        	
                Fenghui
      Leasing Co., Ltd

              	
                Privacy
      Information    

              

      

       

    

    See annex
II for The leased equipment details

     

    II.    Transfer
price and payment

     

    1. The
total price of leased equipment from the lessor to the lessee(“transfer
price”): ¥35,000,000.00
yuan(the capital form of Chinese numerals: Say thirty-five million Yuan
Only)

     

    2. The
lessor shall remit 50% of the transfer
payment to the designated bank account of the lessee, after the lessor receive
all the down payment, deposits ,handling charges and deposit premium agreed in
the Financial Sale-back-Lease from the lessee.

     

    3. The
lessor shall remit 50% of the transfer
payment to the designated bank account of the lessee, after the lessor receive
the Leased Equipment Receipt Certificate, the photos of the leased equipment,
the original copy of the insurance policies of the equipment, the original
purchase contract between the lessee and 【    】, original
customer copy of the full-amount value-added tax invoice with the lessee as the
title presented by  and after the
lessee presented the Payment notice.

     

    Designated
bank account of the lessee as follows:

     

    Account name: Hailun Xing'anling Dairy Co.,
Ltd

     

    Beneficiary
bank: Hailun City Branch of Bank of China

     

    Account
number: 255749339118091001

     

    I.     The
transfer of ownership and risks

     

    1. The
ownership of the leased equipment shall be automatically transferred to the
lessor from the lessee, since the day when the lessor pays part of the transfer
price to the lessee, in accordance with the Clause Three of the Article
Two.

     

    2. Before
and after the ownership transfer, the damage and loss on the leased equipment
shall be held by the lessee, the lessor shall not hold any risk of the leased
equipment.

     

    
      	
              Lessor:  Fenghui
      Leasing Co., Ltd

            	
              Lessee:
      Hailun Xing'anling Dairy Co., Ltd

            
	 
      	 
      
	
              Seal

            	
              Seal

            

    

     

    Signature
from legal representative/authorized agent

     

    Signature
from legal representative/authorized agent

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
    

    
      	
              Fenghui
      Leasing Co., Ltd

            	
              Privacy
      Information       
  

            

    

     

    Annex 4

     

    The
issuance of Emerald Warrants

     

    Within 10
business day after the date company receiving fund of Lease Transaction from
each phase, Emerald shall issue warrants to Feng Hui Leasing.

     

    
      	
               
      

            	
              (i)

            	
              With
      expected first phase leasing funding of RMB35,000,000 (US$5,140,000 =
      35000000/6.81), a total number of 934,600 (5140000*0.3/1.65) warrants
      should be issued exercisable at
$1.65.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              any
      subsequent leasing funding, the total number of warrants should be
      calculated using the following formula (Number of warrants = Total Funding
      in US$ x 0.3 / exercise price, For example, if a leasing funding of
      US$8,000,000 with exercisable price at $2.00, the total warrants should be
      1,200,000=8,000,000x0.3/2.00) and issued with exercise price equal to 120%
      using the previous 10 trading day average price preceding the issuance
      date

            

    

     

    
      	
               
      

            	
              (iii)

            	
              All
      warrants should expire three (3) years from the date of
      issuance.

            

    

     

    
      
         

      

      
        17EXHIBIT
10.1

     

    EMPLOYMENT
AGREEMENT

     

    EMPLOYMENT AGREEMENT, dated as of June
30, 2010 (this “Agreement”), by and between ATRINSIC, INC., a Delaware
corporation (the “Company”), and Thomas Plotts (“Employee”).

     

    W I T N E
S S E T H :

     

    WHEREAS, the Company desires to employ
Employee on the terms and subject to the conditions hereinafter set forth, and
Employee desires so to be employed.

     

    NOW, THEREFORE, in consideration of the
premises and the mutual covenants hereinafter set forth, the parties agree as
follows:

     

    1.           Offices and
Duties.  During the Term (as hereinafter defined), Employee
shall serve as the Chief Financial Officer of the Company and shall have such
duties and responsibilities that are commensurate with such position and such
other duties and responsibilities as are from time to time assigned to the
Employee by the Company’s Chief Executive Officer.  The Company’s
Chief Executive Officer may elect or designate Employee to serve in such other
corporate offices of the Company or a subsidiary or affiliate of the Company as
the Company’s Chief Executive Officer from time to time may reasonably deem
necessary, proper or advisable and as the Employee shall
accept.  Employee hereby agrees that throughout the Term he shall
faithfully, diligently and to the best of his ability, in furtherance of the
business of the Company, perform the duties assigned to him or incidental to the
offices assumed by him pursuant to this Section.  Employee shall
devote all of his business time and attention to the business and affairs of the
Company and the performance of Employee’s duties and responsibilities
hereunder.  Employee shall at all times observe and comply with such
written rules, regulations, policies and practices as the Company may from time
to time establish.  The Employee represents and warrants to the
Company that (i) the Employee has the legal right to enter into this Agreement
and to perform all of the obligations on the Employee’s part to be performed
hereunder in accordance with its terms; and (ii) that the Employee is not a
party to any agreement or understanding, written or oral, which could prevent
the Employee from entering into this Agreement or performing all of the
Employee’s obligations hereunder.

     

    2.           Term.  The
employment of Employee hereunder shall commence on the date hereof (the
“Commencement Date”) and continue for a term ending on the third (3rd)
anniversary of the Commencement Date, subject to earlier termination upon the
terms and conditions provided elsewhere herein (the “Term”).  As used
herein, “Termination Date” means the last day of the Term.  The
Employee shall be an “at-will” employee of the Company such that the Company may
terminate the Employee’s employment with the Company and the Term upon advance
written notice at any time and for any reason (or no reason).

     

    3.           Compensation.

     

    (a)           As
compensation for Employee’s services hereunder, the Company shall pay to
Employee during the Term an annual salary (the “Base Salary”) equal to Two
Hundred Fifty Thousand Dollars ($250,000.00), payable in accordance with the
ordinary payroll practices of the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)           Employee
may also receive a target annual bonus equal to fifty percent (50%) of his Base
Salary for each calendar year during the Term if the Company’s business
operations meet or exceed certain financial performance standards to be
determined by the Company’s board of directors in accordance with Exhibit A and the
Company’s 2010 Annual Incentive Compensation Plan, a copy of which is included
in Exhibit A
hereto.

     

     (c)           In
addition to his Base Salary and other compensation provided herein, during the
Term, Employee shall be entitled to participate in the Company’s 401(k) plan and
healthcare plan generally available to the employees of the Company, to the
extent he is eligible under the terms and conditions thereof.

     

    (d)           During
the Term, Employee shall not be entitled to additional compensation for serving
in any office of the Company (or any subsidiary thereof) to which he is elected
or appointed.

     

     

    4.           Options to Purchase Common
Stock.

     

    (a)           On
the Commencement Date, the Company shall grant to Employee (i) an option (the
“Option”) to acquire Two Hundred and Fifty Thousand (250,000) shares of the
Company’s common stock, par value $.001 per share (the “Common Stock”) pursuant
to the Company’s 2009 Stock Incentive Plan.  The Option will vest in
equal monthly installments over a period of thirty six months commencing on May
31, 2010 and on the last day of each calendar month thereafter until fully
vested and be subject to the terms and conditions of the Company’s 2009 Stock
Incentive Plan and a stock option agreement substantially in the form annexed to
this Agreement as Exhibit
B.  As a condition to receiving the Option, Employee shall
execute and deliver to the Company the stock option
agreement.  Notwithstanding the foregoing, if a Change of Control (as
defined herein) occurs while Employee is employed with the Company, and
Employee’s employment is terminated by the Company other than for Disability,
death or cause (as defined herein) within three (3) months before or six (6)
months after the effective date of the Change of Control, all Options will
automatically vest immediately prior to the termination of Employee’s employment
and shall remain exercisable for a period of one (1) year after such
termination.

    

    (b)           As
provided in the stock option agreement, any portion of the Option that remains
unvested at the time of termination of Employee’s employment (the “Unvested
Portion”) shall be extinguished and cancelled and Employee shall have no rights
or benefits whatsoever with respect to the Unvested Portion.  Employee
represents and warrants that he is acquiring the Option and the shares of Common
Stock issuable upon exercise thereof for investment purposes only, and not with
a view to distribution thereof.  Employee is aware that the Option and
such shares may not be registered under the federal or any state securities laws
and that, in addition to the other restrictions, the Option and such shares
issuable upon exercise thereof will not be able to be transferred unless an
exemption from registration is available or the Option or such shares become
registered.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    5.           Expense
Allowance.  The Company shall pay directly, or advance funds to
Employee or reimburse Employee for, all out-of-pocket expenses reasonably
incurred by him in connection with the performance of his duties hereunder and
the business of the Company, including travel and accommodations, in each case
subject to and in accordance with the Company’s standard policies and practices
(including, without limitation, expense verification policies) regarding the
reimbursement of business expenses, as in effect from time to time.

     

    6.           Vacation.  Employee
shall be entitled to four (4) weeks paid vacation during each year of his
employment hereunder (as pro rated for partial years), such vacation to be taken
at such time or times as shall be agreed upon by Employee and the Company with
due regard to the needs of the Company.  Vacation time shall not be
cumulative from year to year and shall be otherwise subject to the Company’s
policies on vacation as in effect from time to time.

     

    7.           Ancillary
Agreement.  Without limiting any other rights that the Company
may have, if Employee breaches any provision of that certain Non-Competition,
Non-Solicitation and Confidentiality Agreement executed by Employee on even date
herewith and attached hereto as Exhibit C, any right
that Employee may have to receive any compensation or payments from the Company
hereunder shall be forfeited by Employee and extinguished in all
respects.

     

    8.           Termination of
Employment.  Employee’s employment and the Term will terminate on
the first of the following to occur:

     

    (a)           Automatically
upon Employee’s death.

    

    (b)           Upon
written notice by the Company to Employee of termination due to Disability (as
defined below).  For the purposes of this Agreement, “Disability”
shall mean a condition that entitles Employee to benefits under an applicable
Company long-term disability plan or, if no such plan exists, a physical or
mental disability which, in the reasonable judgment of the Company’s Chief
Executive Officer, is likely to render Employee unable to perform his regular
assigned duties and obligations under this Agreement for 90 days in any 12-month
period.

    

    (c)           Upon
written notice by the Company to the Employee of a termination for “cause”
pursuant to Section 9 of this Agreement.

    

    (d)           Upon
written notice by the Company to the Employee of a termination without “cause”,
other than for death or Disability.

    

    (e)           Upon
“voluntary termination” by Employee under Section 10 of this
Agreement.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    9.           Termination for
Cause.

    

    (a)           In
addition to any other rights or remedies provided by law or in this Agreement,
the Company may terminate Employee’s employment under this Agreement for “cause”
if:

    

    
      	
              (i)

            	
              Employee
      is convicted of, or enters a plea of guilty or nolo contendere to,
      a felony offense (unless, in the case of a conviction, the conviction
      shall have been reversed on appeal);
or

            

    

    

    
      	
              (ii)

            	
              the
      Company’s Board or Chief Executive Officer determines that Employee
      has:

            

    

    

    (A)           committed
fraud against, or embezzled or misappropriated funds or other assets of, the
Company (or any subsidiary thereof);

    

    (B)           violated,
or caused the Company (or any subsidiary thereof) or any officer, employee or
other agent thereof, or any other person to violate, any material law,
regulation or ordinance or, repeatedly violated, or caused the Company (or any
subsidiary thereof) or any officer, employee or other agent thereof, or any
other person to violate, any material rule, regulation, policy or practice
established by the Company;

    

    (C)           willfully,
or because of gross or persistent negligence, (A) failed to properly perform his
duties hereunder or (B) acted in a manner detrimental to, or adverse to the
interests of, the Company;

    

    (D)           violated,
or failed to perform or satisfy any covenant, condition or obligation required
to be performed or satisfied by Employee under this Agreement or contained in
the Company’s employee handbook or policies, as in force from time to time;
or

    

    (E)           used
illegal drugs or consumed alcohol and such consumption has caused or is likely
to cause material damage to the Company.

    

    (b)           The
Company may effect such termination for cause by giving Employee written notice
to such effect, setting forth in reasonable detail the factual basis for such
termination (the “Cause Notice”); provided, however, that
Employee may avoid such termination if the termination is based on any
occurrence, act or event described in clauses (A) to (E) of paragraph (ii) of
Section 9(a) (each, a “For Cause Event”), if the matters giving rise to such
termination (including without limitation, any breach or violation by Employee)
are remedied or cured, if capable of remedy or cure, within 15 days after
receipt of the Cause Notice (“15-Day Cure Period”).  For the avoidance
of doubt, Employee’s employment hereunder and the Term shall be terminated
immediately upon delivery of the Cause Notice if Employee’s employment is being
terminated due to the occurrence, act or event described in paragraph (i) of
Section 9(a), and Employee’s employment hereunder and the Term shall be
terminated immediately upon expiration of the 15-Day Cure Period if Employee’s
employment is terminated due to the occurrence, act or events described in
clauses (A) to (E) of paragraph (ii) of Section 9(a) (assuming the matters,
violations or conditions giving rise to such termination are capable of being
cured or remedied, provided that if they are incapable of being so cured or
remedied, then such termination shall be immediate upon delivery of the Cause
Notice).

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    10.           Voluntary Termination by
Employee.  In addition to any other rights or remedies provided
by law or in this Agreement, Employee may terminate his employment hereunder at
any time by giving the Company written notice to such effect at least ninety
(90) days prior to the date of termination set forth therein, such termination
to be irrevocable upon receipt of such notice by the Company.

    

    11.           Compensation and Benefits
upon Termination.

     

    (a)           If
Employee’s employment is terminated as a result of his death or Disability, the
Company will pay or provide to Employee: (1) any unpaid Base Salary through the
date of termination; (2) reimbursement for any unreimbursed expenses incurred
through the date of termination; (3) any unused vacation time accrued (through
the date of termination) in accordance with Company policy or as otherwise
required by law; and (4) any other payments, benefits or fringe benefits to
which the Employee may be entitled under the terms of any applicable
compensation arrangement or benefit plan or program or this Agreement, in all
cases only through the date of termination (collectively items (1) through (4)
shall be hereafter referred to as “Accrued Benefits”).

     

    (b)           If
Employee’s employment is terminated for cause under Section 9, or if Employee’s
employment is terminated by Employee voluntarily under Section 10, the Company
will pay or provide to Employee any Accrued Benefits.

    

    (c)           If
Employee’s employment is terminated by the Company other than for cause under
Section 9, death or Disability, the Company will pay or provide the Employee
with (i) any Accrued Benefits and (ii) subject to Employee’s compliance with the
obligations herein, a one time payment equal to six months of his Base Salary.
Any amount due to Employee under clause (i) and (ii) of this Section shall be
payable in a lump sum within thirty (30) days of termination of employment,
except as provided in Section 12 hereof.  Amounts payable to Employee
under this Section 11(c), if any, are hereinafter referred to as the “Parachute
Amount.”

    

    (d)           Except
as expressly set forth herein, any amount payable to Employee upon termination
of his employment hereunder shall be paid promptly, and in any event within
thirty (30) days, after the Termination Date.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    12.           Change of
Control.

    

    (a)           For
the purposes of this Section 12, the following terms shall be defined as
hereinafter provided:

    

    (i)           The
"Act" is the Securities Exchange Act of 1934, as amended.

    

    (ii)           A
"person" includes a "group" within the meaning of Section 13(d)(3) of the
Act.

    

    (iii)           "Beneficially
owns" and "acquisition" are used herein as defined in Rules 13d-3 and 13d-5,
respectively, under the Act.

    

    (iv)           "Non-Affiliated
Person" means any person, other than Employee, an employee stock ownership trust
of the Company (or any trustee thereof for the benefit of such trust), or any
person controlled by Employee, the Company or such a trust.

    

    (v)           "Voting
Securities" includes Common Stock and any other securities of the Company that
ordinarily entitle the holders thereof to vote, together with the holders of
Common Stock or as a separate class, with respect to matters submitted to a vote
of the holders of Common Stock; provided, however, that securities of the
Company as to which the consent of the holders thereof is required by applicable
law or the terms of such securities only with respect to certain specified
transactions or other matters, or the holders of which are entitled to vote only
upon the occurrence of certain specified events (such as default in the payment
of a mandatory dividend on preferred stock or a scheduled installment of
principal or interest of any debt security), shall not be Voting
Securities.

    

    (vi)           "Right"
means any option, warrant, restricted stock unit or other right to acquire any
Voting Security (other than such a right of conversion or exchange included in a
Voting Security).

    

    (vii)           The
"Code" is the Internal Revenue Code of 1986, as amended.

    

    (viii)                      "Base
amount," "present value" and "parachute payment" are used herein as defined in
Section 280G of the Code.

    

    (b)           A
"Change of Control" occurs upon an acquisition of Voting Securities or Rights by
a Non-Affiliated Person or any change in the number or voting power of
outstanding Voting Securities, which results in such Non-Affiliated Person
beneficially owning Voting Securities or Rights entitling such person to cast a
number of votes (determined in accordance with Section 12(f)) equal to or
greater than fifty percent (50%) of the sum of (A) the number of votes that may
be cast by all other holders of outstanding Voting Securities and (B) the number
of votes that may be cast by such Non-Affiliated Person (determined in
accordance with Section 12(f)).

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (c)           It
is intended that the present value of any payments or benefits to Employee,
whether hereunder or otherwise, that are includible in the computation of the
Parachute Amount shall not exceed 2.99 times the Employee's base
amount.  Accordingly, if Employee receives any payment or benefit from
the Company prior to payment of the Parachute Amount which, when added to the
Parachute Amount, would subject any of the payments or benefits to Employee to
the excise tax imposed by Section 4999 of the Code, the Parachute Amount shall
be reduced by the least amount necessary to avoid such tax. The Company shall
have no obligation hereunder to make any payment or provide any benefit to
Employee after the payment of the Parachute Amount which would subject any of
such payments or benefits to the excise tax imposed by Section 4999 of the
Code.

    

    (d)           Any
other provision hereof notwithstanding, Employee may, prior to his receipt of
the Parachute Amount pursuant to Section 11(c), waive the payment thereof, or,
after his receipt of the Parachute Amount thereunder, treat some or all of such
amount as a loan from the Company which Employee shall repay to the Company
within one hundred eighty (180) days after the receipt thereof, together with
interest thereon at the rate provided in Section 7872 of the Code, in either
case, by giving the Company notice to such effect.

    

    (e)           Any
determination of the Employee 's base amount, the Parachute Amount, any
liability for excise tax under Section 4999 of the Code or other matter required
to be made pursuant to this Section 12, shall be made by the Company's
regularly-engaged independent certified public accountants, whose determination
shall be conclusive and binding upon the Company and Employee; provided that
such accountants shall give to Employee, on or before the date on which payment
of the Parachute Amount or any later payment or benefit would be made, a notice
setting forth in reasonable detail such determination and the basis therefor,
and stating expressly that Employee is entitled to rely thereon.

    

    (f)           The
number of votes that may be cast by holders of Voting Securities or Rights upon
the issuance or grant thereof shall be deemed to be the largest number of votes
that may be cast by the holders of such securities or the holders of any other
Voting Securities into which such Voting Securities or Rights are convertible or
for which they are exchangeable or exercisable, determined as though such Voting
Securities or Rights were immediately convertible, exchangeable or exercisable
and without regard to any anti-dilution or other adjustments provided for
therein.

     

    13.           IRC
409A.  This Agreement is intended to satisfy the requirements
of Section 409A(a)(2), (3) and (4) of the Code, including current and future
guidance and regulations interpreting such provisions.  To the extent
that any provision of this Agreement fails to satisfy those requirements, the
provision shall automatically be modified in a manner that, in the good-faith
opinion of the Company, brings the provisions into compliance with those
requirements while preserving as closely as possible the original intent of the
provision.  Notwithstanding anything to the contrary in this
Agreement, no severance payments or benefits shall be paid to Employee during
the six (6) month period following Employee's separation from service to the
extent that the Company and Employee mutually agree and determine in good faith
that paying such amounts at the time or times indicated in this Agreement would
cause Employee to incur an additional tax under Section 409A of the Code, in
which case such amounts shall be paid at the time or times indicated in this
Section. If the payment of any such amounts are delayed as a result of the
previous sentence, then on the first day following the end of such six (6) month
period, the Company will pay Employee a lump-sum amount equal to the cumulative
amount that would have otherwise been payable to Employee during such six (6)
month period.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
 

    14.           Notices.  All
notices which are required by or may be given pursuant to the terms of this
Agreement must be in writing and must be delivered personally; sent by certified
mail, return receipt requested, postage prepaid; sent by facsimile (with written
confirmation of transmission), provided that notice is also sent via first class
mail, postage prepaid; or sent for next business day delivery by a nationally
recognized overnight delivery service as follows:

     

    If to the
Company at:

    

    469
7th
Avenue, 10th
Floor

    New York,
NY 10018

    Attn:  Jeffrey
Schwartz

    

    with a
copy to:

    

    Stubbs
Alderton & Markiles LLP

    15260
Ventura Blvd., 20th
Floor

    Sherman
Oaks, California 91403

    Attn:
Scott Galer, Esq.

    Fax:
(818) 444-6313

    

    If to
Employee at:

    

    

    

    

    Any of
the addresses and other contact information set forth above may be changed from
time to time by written notice (delivered in accordance with this Section) from
the party requesting the change.

     

    Such
notices and other communications will be treated for all purposes of this
Agreement as being effective immediately if delivered personally or by facsimile
(with written confirmation of transmission) during normal business hours, or
five (5) days after mailing by certified mail, return receipt requested, first
class postage prepaid, or one business day after deposit for next business day
delivery by a nationally recognized overnight delivery service.

     

    15.           Amendment.  Except
as otherwise provided herein, no amendment of this Agreement shall be valid or
effective, unless in writing and signed by or on behalf of the parties
hereto.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    16.           Waiver.  No
course of dealing or omission or delay on the part of either party hereto in
asserting or exercising any right hereunder shall constitute or operate as a
waiver of any such right.  No waiver of any provision hereof shall be
effective, unless in writing and signed by or on behalf of the party to be
charged therewith.  No waiver shall be deemed a continuing waiver or
waiver in respect of any other or subsequent breach or default, unless expressly
so stated in writing.

     

    17.           Governing
Law.  This Agreement shall be governed by, and interpreted and
enforced in accordance with, the laws of the State of New York without regard to
principles of choice of law or conflict of laws.

     

    18.           Severability.  The
provisions hereof are severable and in the event that any provision of this
Agreement shall be determined to be invalid or unenforceable in any respect by a
court of competent jurisdiction, the remaining provisions hereof shall not be
affected, but shall, subject to the discretion of such court, remain in full
force and effect, and any invalid or unenforceable provision shall be deemed,
without further action on the part of the parties hereto, amended and limited to
the extent necessary to render the same valid and enforceable.

     

    19.           Counterparts.  This
Agreement may be executed in counterparts, including, without limitation, by
facsimile, each of which shall be deemed an original and which together shall
constitute one and the same agreement.

     

    20.           Assignment.  This
Agreement, and each right, interest and obligation hereunder, may not be
assigned by either party hereto without the prior written consent of the other
party hereto, and any purported assignment without such consent shall be void
and without effect, except that this Agreement shall be assigned to, and assumed
by, any person with or into which the Company merges or consolidates, or which
acquires all or substantially all of its assets, or which otherwise succeeds to
and continues the Company’s business substantially as an
entirety.  Except as otherwise expressly provided herein or required
by law, Employee shall not have any power of anticipation, assignment or
alienation of any payments required to be made to him hereunder, and no other
person may acquire any right or interest in any thereof by reason of any
purported sale, assignment or other disposition thereof, whether voluntary or
involuntary, any claim in a bankruptcy or other insolvency proceeding against
Employee, or any other ruling, judgment, order, writ or decree.

     

    21.           Withholding.   The
Company may withhold from any and all amounts payable under this Agreement such
federal, state and local taxes, as may be required to be withheld pursuant to
any applicable law or regulation, and all other applicable
withholdings.

     

    22.           Binding
Effect.  This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns.  This Agreement is not intended, and shall not be deemed, to
create or confer any right or interest for the benefit of any person not a party
hereto.

     

    23.           Titles and
Captions.  The titles and captions of the Articles and Sections
of this Agreement are for convenience of reference only and do not in any way
define or interpret the intent of the parties hereto or modify or otherwise
affect any of the provisions hereof.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    24.           Certain
Definitions.  As used herein “person” includes, without
limitation, a natural person, corporation, joint stock company, limited
liability company, partnership, joint venture, association, trust, government or
governmental authority, agency or instrumentality, or any group of the foregoing
acting in concert.

    

    25.           Entire
Agreement.  This Agreement embodies the entire agreement of the
parties hereto with respect to the subject matter hereof and supersedes any
prior or contemporaneous agreement, commitment or arrangement relating thereto,
written or oral, except that the certain Acknowledgement regarding Proprietary
Information and Inventions attached hereto as Exhibit D between New
Motion Mobile, Inc. f/k/a New Motion, Inc. and Employee, dated June 4, 2007,
which shall remain in full force and effect.

     

    [signature page
follows]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    

     

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

     

    
      
        
          
            
              
                	 	ATRINSIC,
      INC.	 
	 	 	 	 
	
                         

                      	
                        By:
      

                      	/s/ Jeffrey
      Schwartz	 
	 	 	Name:  Jeffrey
      Schwartz	 
	 	 	Title:
      Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	 	/s/
      Thomas Plotts	 
	 	 	Thomas
      Plotts	 

              

            

          

        

      

    

    
 

    
      
        
        

      

      
        11

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