Document:

exv10w6

Exhibit 10.6

EXPRESS SCRIPTS, INC.

2011 LONG-TERM INCENTIVE PLAN

RESTRICTED STOCK UNIT GRANT NOTICE

FOR NON-EMPLOYEE DIRECTORS

          Notice is hereby given of the following award of Restricted Stock Units (the “Award”), which
entitles the Grantee to receive one share of the common stock, $0.01 par value per share (“Common
Stock”), of Express Scripts, Inc. (the “Company”) for each Restricted Stock Unit pursuant to the
following terms and conditions:

	 	 	 	 	 	 	 

	 

	 	•
	 	Grantee:
	 	___________
	 
	 	 	 	 	 	 
	 

	 	•
	 	Grant Date:
	 	___________
	 
	 	 	 	 	 	 
	 

	 	•
	 	Number of Restricted Stock Units:
	 	___________

	 	•	 	Vesting Schedule: The Restricted Stock Units under the Award shall be
vested and become exercisable in accordance with the following vesting schedule:

	 	 	 

	 

	 	_________________________________
	 
	 	 
	 

	 	_________________________________
	 
	 	 
	 

	 	_________________________________

	 	•	 	Other Provisions: The Award is granted subject to, and in accordance with,
the terms of the Restricted Stock Unit Agreement (the “RSU Agreement”) attached hereto
as Exhibit A, including Schedule 1 thereto, and the Express Scripts, Inc. 2011
Long-Term Incentive Plan (the “Plan”).

    This Award is granted under, and governed by, the terms and conditions of this Grant Notice,
the Plan and the RSU Agreement.

	 	 	 	 	 
	 	EXPRESS SCRIPTS, INC.

 	 
	 	By:  	 	 
	 	 	[NAME]  	 
	 	 	[TITLE] 	 
	 

Attachments:

Exhibit A— Restricted Stock Unit Agreement

 

 

EXHIBIT A

EXPRESS SCRIPTS, INC.

2011 LONG-TERM INCENTIVE PLAN

RESTRICTED STOCK UNIT AGREEMENT

FOR NON-EMPLOYEE DIRECTORS

     Express Scripts, Inc., a Delaware corporation (“Company”), has granted you (“Grantee”) an
award of the number of Restricted Stock Units as set forth on the Grant Notice. Each Restricted
Stock Unit shall entitle Grantee to receive one share of Common Stock upon vesting in the future in
accordance with, and subject to, the terms and conditions set forth in your Restricted Stock Unit
Grant Notice (“Grant Notice”) and this Restricted Stock Unit Agreement (“RSU Agreement”).

     The Award is granted pursuant to the Express Scripts, Inc. 2011 Long-Term Incentive Plan, as
amended from time to time (the “Plan”), pursuant to which restricted stock units, and other awards,
may be granted to Non-Employee Directors of the Company. Except as otherwise specifically set
forth herein, all capitalized terms utilized herein (including on Schedule 1 hereto) shall have the
respective meanings ascribed to them in the Plan.

     The details of your Award are as follows:

     l. Grant of Restricted Stock Unit Award. Pursuant to action of the Board and/or a
committee authorized by the Board, the Company hereby grants to Grantee an award (the “Award”) of
the number of Restricted Stock Units as set forth on the Grant Notice. Each Restricted Stock Unit
shall entitle Grantee to receive one share of Common Stock upon vesting in the future in accordance
with, and subject to, the terms and conditions described herein.

     2. Vesting and Forfeiture.

          (a) Time Vesting. The Restricted Stock Units shall vest in one or more installments in
accordance with the Vesting Schedule as set forth on the Grant Notice, with the vesting of each
installment subject to the Grantee’s continued service as a member of the Board through the
applicable vesting date.

          (b) Accelerated Vesting. Any Restricted Stock Units which have not yet vested under
subparagraph (a) above shall, upon the occurrence of a Change in Control or the termination of the
Grantee’s service as a member of the Board, vest or be forfeited in accordance with the provisions
of the Plan, and the terms of this Agreement (including Schedule 1 hereto).

          (c) Forfeiture of Restricted Stock Units. If Grantee’s service as a member of the Board
terminates for any reason, Grantee shall forfeit all rights with respect to any portion of the
Award (and the underlying shares of Common Stock) that has not yet vested as of the effective date
of the termination, except to the extent such Award vests upon such termination under Section 2(b).

     3. Issuance of Common Stock upon Vesting. In accordance with the Vesting Schedule and
subject to all the terms and conditions set forth in this Agreement or the Plan, upon an applicable
vesting event, the Company shall issue and deliver to Grantee the number of shares of Common Stock
equal to the number of Restricted Stock Units which have become vested as a result of such event.
The Company may, in its sole discretion, deliver such shares of Common Stock (a) by issuing Grantee
a certificate of Common Stock representing the appropriate number of shares, (b) through electronic
delivery to a brokerage or similar securities-holding account in the name of Grantee, or (c)
through such other commercially reasonable means available for the delivery of securities.

 

 

     4. Incorporation of the Plan by Reference; Conflicting Terms. The Award of Restricted
Stock Units pursuant to this Agreement is granted under and expressly subject to, the terms and
provisions of the Plan, which terms and provisions are incorporated herein by reference. Grantee
hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all the terms and
provisions thereof. In the event of any conflict between the terms of the Plan and the terms of
this Agreement, the terms and provisions of the Plan shall govern.

     5. Non-Transferability of Restricted Stock Units. The Restricted Stock Units may not
be transferred in any manner and any purported transfer or assignment shall be null and void.
Notwithstanding the foregoing, upon the death of Grantee, Grantee’s Successor shall have the right
to receive any shares of Common Stock that may be deliverable hereunder, provided, that, for such
purposes, the terms of the Plan and this Agreement shall be binding upon the executors,
administrators, heirs, successors and assigns of Grantee.

     6. Ownership Rights. The Restricted Stock Units do not represent a current interest
in any shares of Common Stock. Grantee shall have no voting or other ownership rights in the
Company arising from the Award of Restricted Stock Units under this Agreement. Notwithstanding the
foregoing, unless otherwise determined by the Committee or the Board, and to the extent permitted
by the Plan, Grantee shall participate in any cash dividend declared by the Board applicable to
shares of Common Stock, which shall entitle Grantee to receive a cash payment for each Restricted
Stock Unit, subject to the same Vesting Schedule and restrictions as the underlying Restricted
Stock Unit and otherwise payable at the same time shares are issued and delivered to Grantee with
respect to the underlying Restricted Stock Unit, in an amount that would otherwise be payable as
dividends with respect to an equal number of shares of Common Stock.

     7. Adjustments upon Changes in Capitalization or Corporate Acquisitions. Should any
change be made to the Common Stock by reason of any Fundamental Change, divestiture, distribution
of assets to stockholders (other than ordinary cash dividends), reorganization, recapitalization,
reclassification, stock dividend, stock split, reverse stock split, stock combination or exchange,
rights offering, spin-off or other relevant change, appropriate adjustments shall be made to the
total number and/or class of securities subject to this Award in order to reflect such change and
thereby preclude a dilution or enlargement of benefits hereunder.

     8. Board Discretion. This Award has been made pursuant to a determination made by the
Board and/or one or more committees of the Board (as delegated by the Board). Notwithstanding
anything to the contrary herein, and subject to the limitations of the Plan, the Board or its
delegated committee(s) shall have plenary authority to: (a) interpret any provision of this
Agreement or the Award; (b) make any determinations necessary or advisable for the administration
of this Agreement or the Award; (c) make adjustments as it deems appropriate to the aggregate
number and type of securities available under this Agreement to appropriately adjust for, and give
effect to, any Fundamental Change, divestiture, distribution of assets to stockholders (other than
ordinary cash dividends), reorganization, recapitalization, reclassification, stock dividend, stock
split, reverse stock split, stock combination or exchange, rights offering, spin-off or other
relevant change; and (d) otherwise modify or amend any provision hereof, or otherwise with respect
to the Award, in any manner that does not materially and adversely affect any right granted to
Grantee by the express terms hereof, unless required as a matter of law, subject to the limitations
stated in the Plan.

     9. Tax Withholding. To the extent applicable and required by law, the Company shall
withhold from Grantee’s compensation any required taxes, including social security and Medicare
taxes,

 

 

and federal, state and local income tax, with respect to the income arising from the vesting
or payment in respect of any Restricted Stock Units under this Agreement. The Company shall have
the right to require the payment of any such taxes before delivering any shares of Common Stock
upon the vesting of any Restricted Stock Unit. Grantee may elect to have any such withholding
obligations satisfied by: (i) delivering cash; (ii) delivering part or all of the withholding
payment in previously owned shares of Common Stock; and/or (iii) irrevocably directing the Company
to reduce the number of shares that would otherwise be issued to Grantee upon the vesting of the
Award by that number of whole shares of Common Stock having a fair market value, determined by the
Company, in its sole discretion, equal to the amount of tax required to be withheld, but not to
exceed the Company’s required minimum statutory withholding. Absent a specific election to the
contrary by Grantee, such withholding obligations shall be satisfied pursuant to the method
described in phrase (iii) of the preceding sentence.

     10. Electronic Delivery. The Company may choose to deliver certain statutory or
regulatory materials relating to the Plan in electronic form, including without limitation
securities law disclosure materials. Without limiting the foregoing, by accepting this Award,
Grantee hereby agrees that the Company may deliver the Plan prospectus and the Company’s annual
report to Grantee in an electronic format. If at any time Grantee would prefer to receive paper
copies of any document delivered in electronic form, the Company will provide such paper copies
upon written request to the Investor Relations department of the Company.

     11. No Right to Continued Service on the Board. Nothing in this Agreement shall be
deemed to create any limitation or restriction on or otherwise affect such rights as the Company,
the stockholders of the Company, or the Board otherwise would have to remove Grantee from the
Board, to exclude Grantee from any slate of nominees for election to the Board, or to otherwise
terminate Grantee’s service on the Board at any time for any reason.

     12. Entire Agreement. This Agreement, including Schedule 1 hereto, and the Plan
contain the entire understanding of the parties with respect to the subject matter hereof and
supersede all prior agreements, understandings and negotiations between the parties.

     13. Governing Law. To the extent federal law does not otherwise control, this
Agreement shall be governed by the laws of Delaware, without giving effect to principles of
conflicts of laws.

 

 

SCHEDULE 1

TERMINATION AND CHANGE IN CONTROL PROVISIONS UNDER THE

EXPRESS SCRIPTS, INC. 2011 LONG-TERM INCENTIVE PLAN

RESTRICTED STOCK UNIT AGREEMENT

FOR NON-EMPLOYEE DIRECTORS

     I. Termination of Service of Non-Employee Director

          (A) Generally. Except as provided herein, if Grantee’s service as a member of the Board
terminates, then any Restricted Stock Units that have not vested as of the date of such termination
shall terminate as of such date, and such unvested Restricted Stock Units shall be forfeited to the
Company without payment therefor.

          (B) Death or Disability. If Grantee’s service as a member of the Board terminates on account
of death or Disability, Grantee shall vest in a number of Restricted Stock Units, to the extent
outstanding, pro-rated for the portion of the period from the Date of Grant (as set forth on the
Grant Notice) through the last vesting date on the Vesting Schedule set forth on the Grant Notice
during which Grantee served as a member of the Board. As soon as practicable following such
termination of service, the Company shall issue and deliver to Grantee the number of shares of
Common Stock equal to the number of vested Restricted Stock Units (subject to any reductions for
tax withholding or otherwise) calculated pursuant to the preceding sentence.

          (C) Retirement. The termination of Grantee’s service as a member of the Board after
attainment of age 65 for any reason other than death or Disability shall be considered a
Retirement, subject to the following:

	 	1.	 	Tenured Retirement. After attainment of age 70,
Grantee’s Retirement shall be deemed to be a “Tenured Retirement”. Upon a
Tenured Retirement, Grantee shall vest in all of the Restricted Stock Units
then outstanding. As soon as practicable following such termination of
service, the Company shall issue and deliver to Grantee the number of shares of
Common Stock equal to the number of vested Restricted Stock Units (subject to
any reductions for tax withholding or otherwise).

	 	2.	 	Early Retirement. If Grantee has attained the age of
65, but not age 70, and has at least ten years of service on the Board, then
Grantee’s Retirement shall be deemed to be an “Early Retirement”. Upon an
Early Retirement, the following shall occur:

	 	(a)	 	for any Restricted Stock Units then
outstanding, a pro-rata portion thereof (determined as set forth below)
shall vest immediately, and, as soon as practicable following such
vesting, the Company shall issue and deliver to Grantee the number of
shares of Common Stock equal to the number of such vested Restricted
Stock Units;

	 	(b)	 	the pro-rata portion of the Restricted Stock
Units that shall vest under the preceding paragraph shall be a
percentage which is equal to (i) the number of full months served by
Grantee past age 65, divided by (ii) 60. The remaining portion of the
Restricted Stock Units which are not eligible for vesting under the
preceding paragraph shall be forfeited to the Company without payment
upon Retirement.

 

 

	 	3.	 	Death or Disability While Eligible for Retirement. If
Grantee’s service as a member of the Board terminates because of his or her
death or Disability and, at the time of such termination of service Grantee
would have been eligible for either a Tenured Retirement or an Early
Retirement, the Restricted Stock Units shall be treated as if Grantee’s service
had terminated due to such applicable form of Retirement (rather than due to
death or Disability, as applicable) if such treatment would result in a greater
number of Restricted Stock Units becoming vested.

	 	4.	 	Standard Retirement. Any Retirement that is not either a
Tenured Retirement or an Early Retirement shall be deemed to be a Standard
Retirement, which shall be treated in accordance with Section I(A) above.

          II. Change in Control

               (A) Acceleration of Vesting Upon Change in Control

                      (i) Acceleration of Vesting. Upon the occurrence of a Change in Control, the
Restricted Stock Units shall, to the extent outstanding, vest in full.

                      (ii) Company Payment. Upon the occurrence of a Change in Control transaction, on the
Change in Control Date the Restricted Stock Units still outstanding shall be automatically
cancelled without further action by the Company or the Grantee, and the Company shall provide
payment in connection with such cancellation at a per share price equal to the number of such
Restricted Stock Units multiplied by the Change in Control Price (as defined below). The Change in
Control Price shall mean the value, expressed in dollars, as of the date of receipt of the per
share consideration received by the Company’s stockholders whose stock is acquired in a transaction
constituting a Change in Control. In case such all or part of such consideration shall be in a
form other than cash, the value of such consideration shall be as determined in good faith by a
majority of the Board of Directors based on a written opinion by a nationally recognized investment
banking firm, whose determination shall be described in a statement furnished to Participants.velatel_8k-ex1001.htm

Exhibit 10.1

 

Business Agreement

 

This Business Agreement is made on October 21st,2011 in P.R.C.by and between:

 

VelaTel Global Communications Inc.(“VelaTel”)

Address: 12656 High Bluff Drive, Suite 155, San Diego, California 92130 USA

Next Generation Special Network Communications Technology Co. Ltd. (“NGSN”)

Address: 4th Floor, Putian Building, No. 6 North Second Street, Haidian District, Beijing, 100080, PRC

 

VelaTel and NGSN are each referred to as a “Party” and together as the “Parties.”

 

WHEREAS:

 

	
A.

	
VelaTel is in the business of designing, building, deploying and operating high speed wireless broadband telecommunications networks in key markets throughout the world. VelaTel has technical expertise, sales, marketing, customer support, relationships with equipment vendors and access to vendor and institutional financing (collectively “VelaTel Resources”).

 

	
B.

	
NGSN holds a License for Value-added Telecom Service Business (“SP License”, see Annex 1 to this Agreement), by which NGSN is authorized to provide information service business nationwide in the People’s Republic of China (“PRC”) on wireless networks.

 

	
C.

	
NGSN has the ability to obtain licenses from appropriate government agencies in the PRC to use radio frequency spectrum in the 1.8GHz and 3.5GHz bandwidth, and has special authorizations from central, regional and local governments, including but not limited to concessions and other authorizations for the deployment of wireless broadband access networks.

 

	
D.

	
The Parties entered into a Memorandum of Understanding on August 26th, 2011, based on which the Parties wish to cooperate with each other, and to define the rights and obligations of each Party pursuant to the terms set forth below.

 

AGREEMENT

 

1.             Overview of Project Structure

 

1.1          NGSN shall, pursuant to relevant PRC laws and regulations, authorize one of its subsidiary companies (“NGSN’s Subsidiary”) to carry out telecom service business that is covered by its SP license and future telecom business related licenses (collectively “Telecom Licenses”). Such authorization shall be legal, irrevocable and exclusive. Without VelaTel’s written consent, NGSN shall not authorize any other third party to use its Telecom Licenses.  NGSN’s Subsidiary shall conduct business that is permitted under the Telecom Licenses.

 

  

  

  

1.2           VelaTel shall establish a holding company organized in Cayman Islands (“Cayman Co”) through one of its subsidiary companies.  Cayman Co shall have a wholly owned subsidiary organized in Hong Kong (“HK Co”).  HK Co shall have a wholly owned subsidiary organized in Beijing that also qualifies as a wholly foreign owned enterprise under Chinese law (“WFOE”, the Cayman Co, HK Co and WFOE are collectively referred to as “New Co”).  WFOE shall be a technical service company, engaged mainly in the business of telecom service related technology development, consulting, design, deployment management and operation management.

 

1.3           NGSN’s Subsidiary shall sign a set of agreements with WFOE, to exclusively and irrevocably contract WFOE for the provision of deployment management and operation management and other services by WFOE to NGSN’s Subsidiary (collectively the “Service Agreement”). WFOE and/or VelaTel shall pay capital expenditures, operating expenditures and other negative cash flow in connection with the Business for NGSN’s Subsidiary, and shall arrange financing for NGSN’s Subsidiary.  The revenue of NGSN’s Subsidiary shall be used in priority to reimburse WFOE and/or VelaTel for any amount paid for by either of them, and to repay any financing arranged by WFOE and/or VelaTel.  NGSN’s Subsidiary shall pay a service fee to WFOE, of which the method of calculation and payment shall be stipulated in the Service Agreement. In principal the total investment made by WFOE and/or VelaTel (including third-party financing) shall be no less than US$10million for each municipality and provincial capital city, and US$8million for any other city. The actual investment intensity and schedule shall comply with the Business Plan that shall be jointly prepared by NGSN’s Subsidiary and WFOE. The Business Plan shall be attached to the Shareholders and Share Subscription Agreement as a binding Annex.

 

1.4           VelaTel shall provide financing to WFOE and NGSN’s Subsidiary, and shall assist WFOE and/or NGSN’s Subsidiary to obtain vendor financing or other third-party financing. WFOE shall repay in priority to VelaTel the amount of financing provided by VelaTel, unless VelaTel consents for WFOE to retain the revenues for further investment until the time of equity capitalization of New Co or other time agreed by VelaTel.

 

1.5           As part of its capital contribution for its interest in New Co, VelaTel shall transfer to WFOE its resources concerning the design, planning and engineering works of wireless broadband network in 29 major cities throughout China (including Beijing, Shanghai, Guangzhou and other cities, a complete list the cities see Annex 2 to this Agreement).  NGSN’s Subsidiary and/or WFOE shall have the right to use such resources when the Business of NGSN’s Subsidiary is expanded to relevant cities.

 

1.6           To ensure the repayment of WFOE’s financing and payment of service fees to WFOE, to the maximum extent authorized by PRC law, the revenue of NGSN’s Subsidiary shall flow directly from the customers to WFOE.  If in case some revenues must be paid to NGSN’s Subsidiary in order to comply with PRC law, it shall be paid to a special account of NGSN’s Subsidiary that is jointly controlled by NGSN’s Subsidiary and WFOE.  The shareholders of NGSN’s Subsidiary shall pledge their shares in NGSN’s Subsidiary to WFOE as collateral for this repayment obligation.

 

 

 

  

2

  

 

1.7           VelaTel and NGSN shall sign a Shareholders and Share Subscription Agreement, according to which NGSN is entitled to obtain up to 45% shares of Cayman Co.  25% shares of Cayman Co will be issued after the execution of the Shareholders and Share Subscription Agreement, 10% shares will be issued after NGSN obtains approval from relevant government authorities to use the 3.5GHz spectrum in the Business Territory (as defined in Article 2.3) or other spectrum that is suitable for the Business, and the rest 10% will be issued when the New Co is approved for public listing on a stock exchange. In exchange for shares in Cayman Co, NGSN shall ensure the continuous validity of its Telecom License during the term of operation of the New Co, and shall use its best efforts to obtain additional Telecom Licenses, to secure NGSN’s Subsidiary’s exclusive right of use of its Telecom Licenses, and the effective performance of the Service Agreement. Based on the success in obtaining additional Telecom Licenses and the revenue of New Co, NGSN shall be entitled to issuance of Series A common stock of VelaTel, in amounts and based on milestones which shall be detailed in the Shareholders and Share Subscription Agreement.

 

2.              Business and Territory

 

2.1           The business of NGSN’s Subsidiary shall cover all the business that is permitted by NGSN’s Telecom Licenses, and other related business (collectively “Business”), which mainly includes wireless broadband network operation, internet information service, location based service and advertising service to government, enterprise and individual customers, e.g. fleet tracking by GPS, tracking people with Alzheimer disease, tracking children and pets, meter reading services, video surveillance service, trading services, distance education, and agriculture information.

 

2.2           WFOE shall be the exclusive contractor to provide service to NGSN’s Subsidiary for the aforementioned Business. Where a special qualification or expertise is required for any kind of service, WFOE shall have the right to sub-contract such service to a qualified third party after notify NGSN’s Subsidiary in written.

 

2.3           The Business of NGSN’s Subsidiary will mainly focus on the following territories: Heilongjiang Province, Jiangsu Province, Guangxi Autonomous Region, Guangzhou City, and Chongqing City (“Business Territory”). The Parties may broaden the scope of Business Territory through discussion.

 

3.             The Operation and Management of New Co

 

3.1           New Co shall establish a Board of Directors (the "Board") which shall be composed of 3 directors, of which 2 directors shall be designated by VelaTel and 1 director shall be designated by NGSN. The Chairman of the Board shall be one of the directors appointed by VelaTel.

 

3.2           HK Co and WFOE shall each have an executive director, who shall be designated by VelaTel.

 

  

3

  

 

3.3           VelaTel shall be responsible for the operation and management of WFOE.  NGSN shall be responsible for monitoring the operation of WFOE to ensure WOFE’s operations comply with relevant PRC rules on internet security, information security and national security.

 

3.4           WFOE shall assist NGSN’s Subsidiary on formulating its business development plan.  NGSN shall assist NGSN’s Subsidiary to obtain necessary licenses for conducting the business planned by NGSN, or shall obtain the necessary licenses in its own name, and then grant exclusive right of use to NGSN’s Subsidiary.  NGSN shall also assist NGSN’s Subsidiary to obtain government contract opportunities by using its resources.

 

3.5           The Parties shall make efforts to have New Co.be listed in a domestic or overseas stock market in about three years. VelaTel shall assist New Co in fulfilling such objective with its overseas financing resources and legal/financial professionals.

 

4.              Follow-up Actions

 

4.1           After the signing of this Agreement, the Parties shall jointly form a working group to promote the implementation of this Agreement. The working group shall consist of core management and technical staff of each Party, with Robert C. V. Chen, Executive VP and China GM to be the team leader of VelaTel, and Lu Bin, GM to be the team leader of NGSN.

 

4.2           VelaTel shall start with the formation of the entities comprising New Co, and endeavor its best efforts to establish New Co by the end of December 2011.

 

4.3           NGSN shall start to apply for 1.8G and 3.5G spectrum usage approval in the Business Territory, and endeavor its best efforts to obtain the approval by the end of March 2012.

 

4.4           The Parties shall start the drafting and negotiation of the Shareholders and Share Subscription Agreement and Service Agreement, the signing of which shall take place by the end of December 2011.

 

5.              Confidentiality

 

5.1           The confidential information in this Agreement includes this Agreement itself and the content it concerned, and any information obtained by one Party from the other Party or its affiliated company, during the execution and performance of this agreement, regarding its business, operation and marketing, technology etc., or document which has been taken confidential measures or marked as “Confidential”.

 

5.2           Both Parties guarantee that the confidential information shall only be used for the purpose related to this Agreement. Without the other Party’s written consent, neither Party shall disclose, publish, sell or transfer the confidential information in any way.

 

  

4

  

 

5.3           Either Party’s disclosure of confidential information according to the requirements of law or relevant supervision authority shall not be considered as breach of confidentiality obligation.

 

5.4          The confidentiality obligation of both Parties shall continue to be valid during the term of this agreement and continue for two years after this Agreement is terminated.

 

6.             Breach and Termination

 

6.1          Either Party that breaches this Agreement and causes loss to the other Party shall compensate the other Party’s loss arising from its breach, including but not limited to attorney fees and financial expenses that the other Party incurs for the execution and performance of this Agreement.

 

6.2          Before the date of expiration, this Agreement may be terminated through both Parties’ discussion.

 

7.             Governing Law and Dispute Resolution

 

7.1           This agreement and any dispute arising from it shall be governed and construed by Hong Kong law, without regard to the conflict of laws principles thereof, as the same apply to agreements executed solely by residents of Hong Kong and wholly to be performed within Hong Kong.

 

7.2           Any dispute relating to this Agreement shall be submitted to Hong Kong International Arbitration Center for resolution conducted pursuant to its procedural rules at the time of arbitration. The arbitration award shall be final and binding on both Parties, and may be enforced in any court of competent jurisdiction.  The prevailing Party in the arbitration shall be entitled to recover from the non-prevailing Party its reasonable attorney fees and other costs and expenses incurred in connection with the arbitration and/or any action to enforce the results of the arbitration.

 

8.              Others

 

8.1           Each Party shall bear its own expense arising from the execution and performance of this Agreement unless it is otherwise provided in this Agreement.

 

8.2           The Parties shall comply with all United States and Chinese laws and regulations applicable to the performance of their obligations under this Agreement and any anticipated follow-on agreement, including, but not limited to, the provisions of the United States Foreign Corrupt Practices Act.  Neither Party shall pay, promise to pay or authorize the payment of money or anything of value, directly or indirectly, to any person (whether a governmental official or a private individual) for the purpose of illegally or improperly inducing or attempting to induce any foreign official or political party or official thereof to make a buying decision or illegally or improperly assist New Co. in obtaining or retaining business, or to take any other action favorable to the Parties in connection with any proposed transaction between the Parties or a third party.

 

  

5

  

 

8.3           This Agreement constitutes the entire agreement between the Parties concerning the subject matter of this Agreement and shall supersede all previous written or oral agreements between the Parties.

 

8.4           The annexes to this Agreement are an integral part of this Agreement and have the same legal effect as this Agreement.

 

8.5           For matters that are not addressed in this Agreement, a supplementary agreement may be made by the Parties through discussion.

 

8.6           This Agreement is executed in both the English and Chinese language.  In the event of any conflict between the two languages on the meaning or interpretation of a word, phrase or clause in this Agreement, the English language version shall prevail.

 

8.7           This Agreement shall come into effect from the date that both Parties’ authorized representatives sign on this Agreement.

 

This Agreement has been signed by the authorized representatives of each Party on the date indicated above.

 

VelaTel Global Communications, Inc.

 

By: /s/ Colin Tay      

 

Authorized representative:

Colin Tay

Title: President

 

 

Next Generation Special Network Communications Technology Co. Ltd

 

By: /s/ Tianli Sui      

 

Authorized representative:

Tianli Sui

Title: General Manager

 

 

  

6

  

 

Annex 1

 

 

 

 

  

Annex 1-1

  

 

 

Annex 2

 

ANNEX 2 TO BUSINESS AGREEMENT BETWEEN VELATEL AND NGSN

 

29 PRC CITIES WHERE VELATEL HAS PERFORMED ENGINEERING WORK

 

 

	
Beijing

 

Changchun

 

Changsha

 

Chengdu

 

Chongqing

 

Dalian

 

Fuzhou

 

Guangzhou

 

Guiyang

 

Ha’erbin

 

	
Haikou

 

Hangzhou

 

Jinan

 

Kunming

 

Lanzhou

 

Nanchang

 

Nanjing

 

Nanning

 

Ningbo

 

Qingdao

 

 

	
Shanghai

 

Shenyang

 

Shenzhen

 

Shijiazhuang

 

Taiyuan

 

Wuhan

 

Xi’an

 

Xiamen

 

Zhengzhou

 

 

 

 

 

 

 

 Annex 2-1

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