Document:

Exhibit 10.4

 

FORM OF EMPLOYMENT AGREEMENT

 

THIS AGREEMENT is made on       ,

 

BETWEEN:

 

(1)                                 ZUOAN FASHION LIMITED, a company established in accordance with the law of the Cayman Islands, whose registered office is situated at Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman, KY1-1111, Cayman Islands (the “Company”); and

 

(2)                                          (“you”).

 

This agreement (the “Agreement”) comprises the terms and conditions of your employment by the Company.

 

1.                                      JOB TITLE

 

The Company will employ you and you will serve the Company as a full time                                           .

 

2.                                      DUTIES

 

2.1                                You will be in charge of                          of the Company and will report to                                     .

 

2.2                                You will perform your duties to the highest professionalism and save for those disclosed in the disclosure letter accepted by the Company, and subject to the Clause 13.2 of this Agreement, shall not carry on any business or do any paid work outside of the business of the Company without the prior specific agreement of the Board, except for investment in any publicly listed company in which you are not involved in any management and your interest is less than 5% of the issued securities and, in all circumstances, carries less than 5% of the voting rights (if any) attaching to the issued securities.

 

3.                                     RESPONSIBILITIES

 

During the period of employment with the Company you will:

 

(a)                                  devote your full attention and best endeavours to furthering the development, reputation and business of the Company ; and

 

(b)                                 observe all lawful directions, orders or instructions given to you by the Board.

 

4.                                     DATE OF COMMENCEMENT

 

Your employment with the Company will begin on any date of this agreement.

 

5.                                     PLACE OF WORK

 

Your normal place of work is the office premises of the Company of the subsidiaries of the Compnay but you may be required to travel within or outside the PRC based on the business needs of the Company and as may be directed by management from time to time.

 

 

6.                                     SALARY

 

6.1                                Your salary is set at market price and agreed by the Board.  Your salary, which will be no less than              yuan per annum, shall comprise your base salary and overtime allowance.  Your salary is payable in 12 equal monthly installments in arrears on the last working day of each month or on such other dates as may be specified in the Company’s payroll policy from time to time.

 

6.2                                Your remuneration package shall comprise of the salary described in Clause 6.1, the non-compete compensation allowance of RMB             yuan described in Clause 13.3 and where appropriate, the discretionary performance bonus described in Clause 7.

 

6.3                                Your salary will be reviewed by the Board according to the Company’s standard salary review policy for each position currently every 12 months.  The Company reserves the right to change the salary review procedure from time to time with 14 days prior notice.

 

6.4                                If this Agreement is terminated prior to the end of a calendar month, you shall only be entitled to a proportionate part of your monthly salary in respect of the period of service during the relevant month up to the date of termination.

 

7.                                     BONUS

 

At the sole discretion of the Company you may be entitled to a performance bonus payable on 31st December provided the Company meets its performance targets.  If you resign prior to the date upon which the bonus is payable, you will not be entitled to a pro-rata bonus.

 

8.                                     WORKING HOURS

 

Your normal hours of work are 9:00 am to 6:00 pm Monday to Friday.  However, you may be required to work such additional times as are necessary to fulfill your responsibilities as the needs of the business may from time to time demand.  You will be paid an overtime allowance as specified in Clause 6.1 to cover such additional work and it is expressly agreed that no further amount will be payable to you in respect of such additional work.

 

9.                                     ANNUAL LEAVE

 

9.1                                You are entitled to annual leave at the rate provided by the relevant PRC laws as may be specified in the Company’s policy.  You are also entitled to statutory holidays and sick leave.

 

9.2                                The dates on which you propose taking holidays must be acceptable to the Company by arrangement with the Board.  No annual leave entitlement may be carried forward from one holiday year to the next without the agreement of the Board except in respect of statutory entitlement in accordance with PRC laws.  All annual leave will be additional to your statutory holidays entitlement.  No payment in lieu will be made in respect of any accrued but untaken annual leave entitlement.

 

9.3                                If you join or leave the Company during the calendar year, your holiday entitlement will be reduced pro rata.  In the event that you have exceeded your holiday entitlement in the year of leaving, a deduction will be made from your final salary payment.

 

9.4                                The calendar year commences on the 1st January and ends on the 31st December of each year.

 

2

 

10.                              BENEFIT SCHEMES AND PENSION

 

10.1                          You are entitled to take part in the Company’s medical and life benefit scheme.  Costs for dental, cosmetic treatment, pregnancy and preventive medicine etc. are not covered.

 

10.2                          The Company will provide social insurance and welfare benefits to you in accordance with the PRC Labor Law and any other applicable laws and regulations of the PRC. You also agree to contribute to social insurance and welfare benefits as may be required by applicable laws and regulations.

 

10.3                          These benefits may be subject to change, amendment or termination in accordance with the documentation governing the scheme and the requirements of the relevant legislation from time to time without prior notice.

 

11.                              TERMINATION

 

11.1                          Subject to the provisions of other sub-clauses of this Clause 11, each party may terminate this Agreement by giving the other party three months prior notice in writing.

 

11.2                          The Company may terminate this Agreement immediately in any of the following circumstances without any compensation to you:

 

(i)                                      You materially breach this Agreement;

 

(ii)                                   You seriously or persistently violate the labor disciplines or the rules and regulations of the Company;

 

(iii)                                You cause significant losses to the Company due to serious dereliction of duty or engagement in fraudulent acts for selfish ends;

 

(iv)                               You are convicted of any criminal offence or are imprisoned for not less than 3 months in accordance with the law; or

 

(v)                                  Any other circumstances provided by relevant laws and regulations.

 

11.3                          The Company may terminate this Agreement by giving you a 30-day prior notice in writing in any of the following circumstances:

 

(i)                                      You are unable to resume your original work or engage in any new work arranged by the Company after the expiration of the period of the medical treatment for your illness or injury not suffered at work;

 

(ii)                                   You are unqualified for your work and remain unqualified even after receiving training or being transferred to another work post;

 

(iii)                                The Company and you fail to reach agreement through consultation on the modification of this Agreement when the objective circumstances under which this Agreement was concluded have materially changed so that it is impossible to perform this Agreement by the parties; or

 

(iv)                               Where the Company genuinely needs to reduce the number of its personnel during the period of statutory restructuring on the verge of bankruptcy or when major operation problems arise.

 

3

 

11.4                          Except where you are terminated in accordance with Clause 11.2 above, in all other circumstances in which the Company terminates you, the Company shall provide you with severance pay in accordance with relevant PRC laws and regulations where applicable.

 

11.5                          Under no circumstances will the annual leave to which you are entitled to be included in the period of notice to terminate this Agreement.  The party who receives the notice has the right to give one month salary in lieu of notice to cease the employment contract immediately.

 

11.6                          Clauses 2 and 3 do not limit the Company’s right to suspend any of your duties and responsibilities during any period after notice of termination of this Agreement has been given by either party. In addition or alternatively, the Company may during the whole or any part of such period of notice require you to perform duties (including any modified duties arising from an exercise by the Company of its rights under this clause) at such locations as the Company may require consistent with Clause 5.  Throughout any such period of suspension your salary and other benefits to which you are entitled under this Agreement shall continue to be paid or provided by the Company.

 

12.                              CONFIDENTIALITY

 

12.1                          You acknowledge that by virtue of your employment with the Company you may become aware of information relating to the business or affairs of the Company or its subsidiaries which is disclosed to you in confidence and is not readily available in the public domain including without limitation, its manner of operation, pricing, costings, business or product plans, sketches, drawings, artwork, moulds, certain secret ideas, formulas processes, recipes, manuals, designs, specifications, tooling, and other items, including subsequent developments and improvements thereof, mailing lists, client lists, accounts or financial records and other information relating to the Company’s clients’ business and information relating to the affairs of the Company (the “Confidential Information”).

 

12.2                          You acknowledge and agree that:

 

(a)                                  the Confidential Information has and is being developed by the Company through the initiative and expenditure of substantial time and effort and is a valuable and necessary asset which the Company must retain in confidence and withhold from disclosure and availability to others; and

 

(b)                                 the Confidential Information is the sole property of the Company and its subsidiaries and is confidential to them.

 

12.3                          You will not any time during or after your employment make use of, disclose, copy, permit to be used or copied, or retain any documents or Confidential Information relating to the business of the Company or its subsidiaries otherwise than for the benefit of the Company.  All rights, title and interest to and in such information will be that of the Company or its subsidiaries.

 

12.4                          While employed with the Company, you will not directly or indirectly be involved with any business activity which conflicts or may tend to conflict or be in competition with any of the Company’s operations, unless otherwise agreed in writing by the Company or its nominee.

 

12.5                           If, during your period of employment with the Company, you make or become possessed of any invention, discovery or any improvement of any kind relating, or which could be applied to, the business of the Company or any of its subsidiaries (“Invention”), then any such Invention, will be the property of the Company and you hereby assign and release to the Company your entire right, title and interest in and to every such Invention, and such Invention will vest in the Company as and when created.

 

4

 

12.6                           Any of the following will apply to you during your period of employment with the Company:

 

(a)                                 if you make any original work of authorship (“Work”) of any kind relating to the business of the Company or any of its subsidiaries, whether within or outside the working hours as required by the Company according to Clause 8 of this Agreement, then any such Work will be the property of the Company and you hereby assign and release to the Company your entire right, title and interest in and to every such Work, and such Work will vest in the Company as and when created;

 

(b)                                any Work made by you other than those specified in paragraph (a) above will be your own property.

 

12.7                          You acknowledge that no license rights or any interest whatsoever in respect of Confidential Information or Inventions or Work (other than the Work classified as your property according to subclause 12.6 (b) above) are granted to you either directly or by implication.

 

12.8                          You agree to indemnify and hold harmless the Company from all damages and expenses, including reasonable legal fees which the Company may sustain as a result of any unauthorised disclosure of Confidential Information or Invention or Work by you and that the Company will have the right to enforce this Agreement by injunctive relief as well as by recovery of damages.

 

13.                              RESTRICTIVE COVENANTS

 

13.1                          During your employment and prior to engaging or being interested (whether as a director, shareholder, principal, consultant, agent, partner, employee or otherwise) in any business concern (of whatever kind) in an industry connected with any of the businesses carried on by the Company or its affiliates or subsidiaries in the PRC, you must disclose such prospective engagement or interests to the Board.

 

13.2                          Since you will in the course of your employment hereunder have dealings with customers and obtain knowledge of the trade secrets and other confidential information in regard to the business of the Company, you hereby agree and undertake with the Company that you shall not without first disclosing the same to and obtaining the prior written consent of the Board (such consent to be withheld only so far as may be reasonably necessary to protect legitimate interests of the Company) during the period of your employment hereunder and for a period of         years after the termination for whatever reason of your employment hereunder:

 

(a)                                 be engaged or interested (whether as a director, shareholder, principal, consultant, agent, partner or employee) in any business concern (of whatever kind) which shall in the PRC be in competition with any of the businesses carried on by the Company or its affiliates or subsidiaries during your employment and within six months after the termination of employment, and in which business you were actively involved during the course of your employment hereunder;

 

(b)                                  directly or indirectly on your own account or on behalf of or in conjunction with any person (except on behalf of the Company):

 

(i)                           canvass or solicit business or custom for services similar to those being provided by the Company during your employment hereunder, and with which services you were actively involved in the course of your employment during the Relevant Period, from any person who has been at any time during the Relevant Period a customer of the Company with whom you were actively involved in the course of your employment during the Relevant Period; or

 

5

 

(ii)                        deal with any such person.

 

(c)                                  either on your own behalf or on behalf of any other person, firm or company:

 

(i)                                      directly or indirectly solicit or entice or endeavor to solicit or entice away from the Company any employee of executive or managerial status engaged in its or their business; and

 

(ii)                                   interfere or seek to interfere with the continuance of supplies to the Company (or the terms relating to such suppliers) from any suppliers who have been supplying goods, materials or services to the Company at any time during the Relevant Period.

 

“Relevant Period” for the purposes of this Clause 13.2, means 12 months prior to the date of termination of your employment with the Company.

 

13.3                          In consideration of your undertaking to observe the above restrictive covenants, the Company agrees to pay you an amount of RMB        yuan per annum a non-compete compensation allowance.  Such non-compete compensation allowance will be paid monthly at the same time as payment of your salary under Clause 6 and shall be regarded as a special allowance paid in advance for your observance of the above restrictive covenants.

 

13.4                          Whilst each of the restrictions in this clause are considered by the parties to be reasonable in all the circumstances as at the date hereof it is hereby agreed and declared that if any one or more of such restrictions shall be judged to be void as going beyond what is reasonable in all the circumstances for the protection of the interests of the Company but would be valid if words were deleted therefrom the said restrictions shall be deemed to apply with such modifications as may be necessary to make them valid and effective and any such modification shall not thereby affect the validity of any other restriction contained in this Agreement.

 

14.                              EXPENSES

 

The Company will reimburse all reasonable travelling, entertainment and other expenses which are incurred by you directly in the course of your employment in accordance with the Company’s expenses policy from time to time.  An account of these, accompanied by supporting vouchers, invoices or dockets must be provided by you to the Company when seeking reimbursement.

 

15.                              TAX

 

You will be liable for income taxes on all remuneration received by you from the Company, including any bonus, ex-gratia or other payments, and such income taxes will be deducted from your salary package by the Company.

 

16.                              COMPANY PROPERTY

 

On leaving employment you must return all property, documents and correspondence belonging to or relating to the Company, its business or affairs or affairs of any of its associated or subsidiary companies.

 

6

 

17.                              DISCIPLINE PROCEDURE

 

We expect the highest standards of performance and conduct from our employees.  Any failing in this regard may be dealt with informally or formally as appropriate to each case.

 

18.                              SETTLEMENT OF DISPUTE

 

When a labor dispute under this Agreement takes place between you and the Company, you may seek consultation with the Company to resolve the dispute. If the consultation fails, either party may apply to the local labor dispute arbitration committee for arbitration within sixty (60) days from the occurrence of the labour dispute. If one of the parties is not satisfied with the award of the arbitration, that party may bring a lawsuit in the local People’s Court within fifteen (15) days of receiving the arbitration award.

 

19.                              MISCELLANEOUS

 

19.1                          You shall comply with the provisions of the Company policy manuals as updated from time to time.

 

19.2                          The arrangements set out herein shall be in substitution for any subsisting agreement or arrangement or representation (oral or otherwise) made between you and the Company which shall be deemed to have been terminated by mutual consent as from the date of your acceptance of the terms and conditions set out in this Agreement.

 

19.3                          This Agreement may not be amended, supplemented or modified except by a written agreement or instrument signed by or on behalf of the parties hereto.

 

19.4                          Any provision of this Agreement which is or becomes illegal, void or unenforceable will be ineffective to the extent only of such illegality voidness or unenforceability and will not invalidate the remaining provisions.

 

19.5                          You acknowledge having received independent advice with respect to this Agreement and further acknowledge that the terms and conditions of this Agreement are fair and reasonable.

 

19.6                          You and the Company agree to undertake a review of the terms of this Agreement every 3 years from the commencement date of this Agreement.  Any amendment to this Agreement shall be mutually agreed by the parties and amended according to Clause 19.3 above.

 

19.7                          This Agreement may be executed in both Chinese and English language versions. In case of any discrepancies or different interpretation between the two language versions, the Chinese language version shall prevail.

 

20.                              APPLICABLE LAW

 

20.1                          The laws of the PRC shall apply to this Agreement.

 

20.2                          For the matters which have not been provided for in this Agreement, the relevant provisions of the laws, regulations and rules of the PRC shall apply.  If no PRC laws or regulations directly control particular points in this Agreement, or if the appropriate interpretation of PRC laws or regulations are uncertain, then international commercial practice shall be used as a reference to interpret and implement such points.

 

Could you please countersign the enclosed copy of this Agreement signifying your acceptance of the terms and conditions set out above and return it as soon as possible.

 

7

 

	
SIGNED for and on behalf of
  	
 
  	
 
  
	
Zuoan Fashion Limited
  	
 
  	
 
  
	
On the day of                
  	
 
  	
 
  
	
 
  	
 
  	
Witness
  
	
(signed)
  	
 
  	
 
  

 

 

I confirm that I have read, understood and accept the terms of employment as set out in this Agreement.

 

 

	
(signed)
  	
 
  	
 
  
	
Name:
  	
 
  	
Witness
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
Date
  	
 
  	
 
  

 

8Exhibit 10.5

 

 

Dated 5 October 2010

 

 

 

The persons whose names and

addresses are set out in Schedule 1

(Vendors)

 

 

 

and

 

 

 

Zuoan Fashion Limited

(Purchaser)

 

 

 

Share Exchange Agreement relating to

Fast Boost Holdings Limited

 

 

 

 

This Share Exchange Agreement is made on the 5th  day of October 2010

 

BETWEEN:

 

(1)                                  The persons whose names and addresses are set out in Schedule 1 (the “Vendors”); and

 

(2)                                  Zuoan Fashion Limited, a company incorporated under the laws of Cayman Islands with its registered office at Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman KY1-1111, Cayman Islands (the “Purchaser”).

 

RECITALS

 

(A)                              The parties intend that a corporate reorganisation of a group of companies involving Fast Boost Holdings Limited will take place whereby the Company will become a wholly-owned subsidiary of the Purchaser.

 

(B)                                Pursuant to the corporate reorganisation, the Vendors will sell to the Purchaser and the Purchaser will purchase from the Vendors the entire issued share capital of the Company subject to and upon the terms and conditions of this Agreement.

 

OPERATIVE PROVISIONS

 

1.                                       Interpretation

 

1.1                                 In this Agreement and the Schedules hereto the following words and expressions shall, where the context so admits, bear the following meanings:

 

	
“Agreement”
  	
 
  	
this Share Exchange Agreement;
  
	
 
  	
 
  	
 
  
	
“Business Day”
  	
 
  	
a day (not being a Saturday or Sunday) on which banks generally are open for business in the PRC;
  
	
 
  	
 
  	
 
  
	
“Companies Law”
  	
 
  	
The Companies Law (Law 3 of 1961, as consolidated and revised) of the Cayman Islands;
  
	
 
  	
 
  	
 
  
	
“Company”
  	
 
  	
Fast Boost Holdings Limited, a company incorporated under the laws of the British Virgin Islands, further particulars of which are set out in Part A of Schedule 2;
  
	
 
  	
 
  	
 
  
	
“Completion”
  	
 
  	
completion of this Agreement as provided in Clause 4 below;
  

 

1

 

	
“Completion Date”
  	
 
  	
the date of signing hereof or such later date as shall be agreed between the Parties;
  
	
 
  	
 
  	
 
  
	
“Consideration Shares”
  	
 
  	
19,900 Ordinary Shares of US$1.00 each in the share capital of the Purchaser to be issued and allotted in exchange for the Sale Shares;
  
	
 
  	
 
  	
 
  
	
“Disclosed”
  	
 
  	
matter(s) as set out in Schedule 3;
  
	
 
  	
 
  	
 
  
	
“Group”
  	
 
  	
the Company and the Subsidiaries;
  
	
 
  	
 
  	
 
  
	
“Parties”
  	
 
  	
the parties to this Agreement and “Party” means any of them;
  
	
 
  	
 
  	
 
  
	
“PRC”
  	
 
  	
The People’s Republic of China;
  
	
 
  	
 
  	
 
  
	
“Sale Shares”
  	
 
  	
20,000 Ordinary Shares of US$0.01 each in the capital of the Company constituting the entire issued share capital thereof;
  
	
 
  	
 
  	
 
  
	
“Subsidiaries”
  	
 
  	
Champion Goal Holdings Limited and Zuoan Dress Co., Ltd. Shishi, further particulars of which are set out in Part B and Part C of Schedule 2; and
  
	
 
  	
 
  	
 
  
	
“US$”
  	
 
  	
United States dollars, the lawful currency of the United States.
  

 

1.2                                 Words and expressions defined in the Companies Law shall (unless the context clearly does not so permit) bear the same meanings where used in this Agreement.

 

1.3                                 The ejusdem generis rule of construction shall not apply to this Agreement and accordingly general words shall not be given a restrictive meaning by reason of their being preceded or followed by words indicating a particular class or examples of acts matters or things.

 

1.4                                 Words importing the singular shall include the plural and vice versa and words importing any gender shall include all other genders and references to persons shall include corporations and unincorporated associations.

 

1.5                                 References in this Agreement to any agreed draft document or any document in agreed form are references to the document described in the form of the draft agreed between the parties and initialled by them for identification purposes.

 

1.6                                 References in this Agreement to statutory provisions shall be construed as references 

 

2

 

to those provisions as respectively amended consolidated extended or re-enacted from time to time and shall include the corresponding provisions of any earlier legislation (whether repealed or not) and any orders regulations instruments or other subordinate legislation made from time to time under the statute concerned.

 

1.7                                 References to this Agreement shall include the Schedules hereto which shall form part hereof and shall have the same force and effect as if expressly set out in the body of this Agreement.

 

1.8                                 The Clause headings in this Agreement are for convenience only and shall not affect the interpretation hereof.

 

1.9                                 The obligations of the Vendors shall, save where the context expressly requires to the contrary, be several.

 

2.                                       Agreement to sell and purchase

 

2.1                                 On and subject to the terms of this Agreement, each of the Vendors as beneficial owners shall sell those of the Sale Shares set against their respective names in column (2) of Schedule 1 and the Purchaser agrees to purchase the same in each case free from all, saved as Disclosed, liens, charges, encumbrances and other equities of any description and together with all rights and benefits now and hereafter attaching thereto, including (without limitation) all rights to dividends and other distributions hereafter paid declared or made in respect of the Sale Shares.

 

2.2                                 The Vendors hereby waive all right of first refusal, co-sale rights, liquidation preference rights, pre-emption and similar or other rights over the Sale Shares or any of them or any proceeds deriving therefrom to which they or any other person may be entitled under the Memorandum of Association and Articles of Association of the Company or otherwise in relation to the sale and purchase of the same hereunder.

 

2.3                                 Nothing in this Agreement shall oblige the Purchaser to buy any of the Sale Shares or otherwise complete the transaction contemplated by this Agreement unless the sale and purchase of all of the Sale Shares are completed simultaneously.

 

3.                                       Consideration

 

The consideration payable by the Purchaser to the Vendors for the Sale Shares shall be satisfied or deemed to have been satisfied in full by the Purchaser allotting and issuing to each Vendor or any entity controlled by the respective Vendor as he, she or it may direct, the number of Consideration Shares as set against his, her or its respective name in Column (3) of Schedule 1 credited as fully paid and crediting as fully paid the 100 nil paid Ordinary Shares in the Purchaser held by Fame Brilliant Group Limited.

 

3

 

4.                                       Completion

 

4.1                                 Unless otherwise agreed, Completion shall take place at the offices of the Company’s principal place of business on or before 5:00 p.m. on the Completion Date.

 

4.2                                 On Completion:

 

(a)                                  the Vendors shall deliver to the Purchaser:

 

(i)                                     duly executed transfers of the Sale Shares in favour of the Purchaser together with the share certificates therefor or an indemnity in a form reasonably required by the Purchaser in the case of any missing share certificates; and

 

(ii)                                  all the constitutive documents of each of the members of the Group, including (without limitation) the certificates of incorporation, certificates of incorporation on change of name (if any), memorandum and articles of association, the common seals and company chops, minute books, registers of members and registers of directors (both duly written up to date), share certificate books and all other statutory records and documents of each member of the Group; and

 

(b)                                 the Vendors shall procure that a written resolution of all directors of the Company be passed at which the following shall be approved:

 

(i)                                     the transfers of the Sale Shares;

 

(ii)                                  the entry of the name of the Purchaser into the register of members of the Company; and

 

(iii)                               all such other business as the Purchaser shall reasonably require to vest in the Purchaser the beneficial ownership of the Sale Shares.

 

4.3                                 Subject to the conclusion of the matters referred to in Clause 4.2 above, the Purchaser shall within three Business Days from the Completion Date:

 

(i)                                     issue and allot the Consideration Shares, credited as fully paid to each of the Vendors or as he/it may direct in writing as set out in Clause 3 above;

 

(ii)                                  credit as fully paid the 100 shares issued nil paid to Fame Brilliant Group Limited as set out in Clause 3 above; and

 

(iii)                               deliver to the Vendors a copy of the register of members of the Purchaser evidencing the issue and allotment of the relevant number of the Consideration Shares to the Vendors or their named allottees respectively and 

 

4

 

the credit of the 100 nil paid Ordinary Shares in the Purchaser held by Fame Brilliant Group Limited.

 

5.                                       Vendors Warranties

 

Each of the Vendors hereby represents warrants and undertakes to the Purchaser that:

 

(i)                                     he/it has full power and authority and has obtained all necessary consents waivers and licences to enter into and perform the obligations to be performed by each of them under or pursuant to this Agreement and any agreement to be entered into by each of them as herein mentioned;

 

(ii)                                  each of the Vendors is the absolute beneficial owner of the number of Sale Shares (or otherwise has full power to sell and transfer to the Purchaser full legal and beneficial interest in the number of Sale Shares and beneficial ownership of the number of Sale Shares) set against their respective names in column (2) of Schedule 1 as the case may be and each of the Sale Shares is and will at Completion be free from, save as Disclosed, all charges liens encumbrances and equities whatsoever; and

 

(iii)                               consent from Phillip Ventures Enterprise Fund 2 Ltd. has been obtained for the transfer of the Sale Shares held by Fame Brilliant Group Limited to the Purchaser.

 

6.                                       Further Assurance

 

The Vendors hereby agree to do any such further acts documents and things as the Purchaser may reasonably require to vest in the Purchaser (or as it shall direct) the beneficial ownership of the Sale Shares free from all, saved as Disclosed, charges, liens encumbrances and other adverse interests and to vest the benefit of this Agreement in the Purchaser.

 

7.                                       Survival of Agreement

 

This Agreement (and in particular the warranties representations covenants agreements and undertakings of the Vendors hereunder) shall, insofar as the terms hereof remain to be performed or are capable of subsisting, remain in full force and effect after and notwithstanding Completion.

 

8.                                       Successors and Assigns

 

This Agreement shall not be assignable by the Vendors (save as expressly permitted herein) but shall be binding upon and enure for the benefit of each Party’s successors in title.

 

5

 

9.                                       Announcements

 

Save in respect of statutory returns or matters required to be disclosed by law or other governmental or regulatory authorities or in connection with the proposed listing of the share capital of the Purchaser, none of the parties hereto shall make any press statement or other public announcement in connection with this Agreement without the prior written approval of the text of such statement or announcement by the Purchaser.

 

10.                                 Notices

 

Any notice required to be given hereunder shall be in writing and shall be served by sending the same by prepaid recorded post, facsimile or by delivering the same by hand to the address of the Party or Parties in question as set out below (or such other address as such Party or Parties shall notify the other Parties of in accordance with this clause).  Any notice sent by post as provided in this clause shall be deemed to have been served five Business Days after despatch and any notice sent by facsimile as provided in this clause shall be deemed to have been served at the time of despatch and in proving the service of the same it will be sufficient to prove in the case of a letter that such letter was properly stamped, addressed and placed in the post; and in the case of a facsimile that such facsimile was duly despatched to a current facsimile number of the addressee.

 

To the Vendors

 

	
Name
  	
:
  	
Fame Brilliant Group Limited
  
	
Address
  	
:
  	
P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands
  
	
Fax
  	
:
  	
852-28690088
  
	
 
  	
 
  	
 
  
	
Name
  	
:
  	
Joyous Fly International Limited
  
	
Address
  	
:
  	
P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands
  
	
Fax
  	
:
  	
852-28690088
  
	
 
  	
 
  	
 
  
	
Name
  	
:
  	
Splendid Pearl International Limited
  
	
Address
  	
:
  	
P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands
  
	
Fax
  	
:
  	
852-28690088
  
	
 
  	
 
  	
 
  
	
Name
  	
:
  	
Head Park Holdings Limited
  
	
Address
  	
:
  	
P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands
  
	
Fax
  	
:
  	
852-28690088
  

 

6

 

To the Purchaser

 

	
Name
  	
:
  	
Zuoan Fashion Limited
  
	
Address
  	
:
  	
Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman, KY1-1111, Cayman Islands
  
	
Fax
  	
:
  	
86-595-88505229
  

 

11.                                 General

 

11.1                           The obligations and liabilities of any Party hereto shall not be prejudiced released or affected by any time or forbearance or indulgence release or compromise given or granted by any person to whom such obligations and liabilities are owed or by any other person to such Party or any other Party so obliged or liable nor by any other matter or circumstance which (but for this provision) would operate to prejudice release or affect any such obligations except an express written release by all the parties to whom the relevant obligations and liabilities are owed or due.

 

11.2                           This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same document.

 

11.3                           This Agreement represents the entire agreement between the Parties and it may only be varied by written document signed by all the Parties.

 

11.4                           Except where expressly provided to the contrary, the rights and remedies reserved to the Parties or any of them under any provision of this Agreement or in any document to be executed pursuant hereto shall be in addition and without prejudice to any other rights or remedies available to such Parties whether under this Agreement or any such document by statute common law or otherwise.

 

11.5                           This Agreement shall be governed by and construed in accordance with the laws of the Cayman Islands and the parties hereby irrevocably undertake to submit themselves to the non-exclusive jurisdiction of the courts of the Cayman Islands.

 

7

 

IN WITNESS whereof this Agreement has been duly executed by each of the Parties the day and year first before written.

 

The Vendors

 

	
SIGNED by  Or Siu Fong  
  	
)
  
	
for and on behalf of Fame Brilliant Group 
  	
)
  
	
Limited
  	
)
  
	
 
  	
 
  	
/s/ Or Siu Fong
  

 

	
SIGNED by Hung Kam Nog for and on behalf 
  	
)
  
	
of Joyous Fly International Limited
  	
)
  
	
 
  	
)
  
	
 
  	
 
  	
/s/ Hung Kam Nog
  

 

 

	
SIGNED by Cai Huatan for and on behalf of 
  	
)
  
	
Splendid Pearl International Limited 
  	
)
  
	
 
  	
)
  
	
 
  	
 
  	
/s/ Cai Huatan
  

 

 

	
SIGNED by Yung Tin Yuet for and on behalf 
  	
)
  
	
of Head Park Holdings Limited 
  	
)
  
	
 
  	
)
  
	
 
  	
 
  	
/s/ Yung Tin Yuet
  

 

 

The Purchaser

 

	
SIGNED by Hung Kam Shan, director
  	
)
  
	
for and on behalf of
  	
)
  
	
Zuoan Fashion Limited
  	
)
  
	
 
  	
 
  	
/s/ Hung Kam Shan
  

 

8

 

 

SCHEDULE 1

 

VENDORS

 

	
Name and address of
  Vendors
  	
 
  	
No. of Sale Shares
  	
 
  	
No. of
  Consideration Shares
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
1
  	
 
  	
Fame Brilliant Group Limited  

P.O. Box 957, Offshore 

Incorporations Centre, Road Town, 

Tortola, British Virgin Islands
  	
 
  	
15,408
  	
 
  	
15,308
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
2
  	
 
  	
Joyous Fly International Limited  

P.O. Box 957, Offshore 

Incorporations Centre, Road Town, 

Tortola, British Virgin Islands
  	
 
  	
890
  	
 
  	
890
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
3
  	
 
  	
Splendid Pearl International Limited  

P.O. Box 957, Offshore 

Incorporations Centre, Road Town, 

Tortola, British Virgin Islands
  	
 
  	
2,222
  	
 
  	
2,222
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
4
  	
 
  	
Head Park Holdings Limited  

P.O. Box 957, Offshore 

Incorporations Centre, Road Town, 

Tortola, British Virgin Islands
  	
 
  	
1,480
  	
 
  	
1,480
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
Total
  	
 
  	
20,000
  	
 
  	
19,900
  	
 
  

 

9

 

SCHEDULE 2

 

Part A                     FAST BOOST HOLDINGS LIMITED

 

	
Incorporation date
  	
:
  	
8th February 2008
  
	
 
  	
 
  	
 
  
	
Place of Incorporation
  	
:
  	
British Virgin Islands
  
	
 
  	
 
  	
 
  
	
Authorised share capital
  	
:
  	
5,000,000 shares of a single class each with a par value of US$0.01
  
	
 
  	
 
  	
 
  
	
Issued share capital
  	
:
  	
20,000 shares of a single class each with a par value of US$0.01
  
	
 
  	
 
  	
 
  
	
Shareholders
  	
:
  	
As set out in Schedule 1
  
	
 
  	
 
  	
 
  
	
Director
  	
:
  	
Fame Brilliant Group Limited
  

 

Part B                     CHAMPION GOAL HOLDINGS LIMITED

 

	
Incorporation date
  	
:
  	
4 July 2008
  
	
 
  	
 
  	
 
  
	
Place of Incorporation
  	
:
  	
Hong Kong
  
	
 
  	
 
  	
 
  
	
Authorised capital
  	
:
  	
10,000 shares of a single class each with par value of HK$1.00
  
	
 
  	
 
  	
 
  
	
Issued share capital
  	
:
  	
2 shares of a single class each with a par value of HK$1.00
  
	
 
  	
 
  	
 
  
	
Shareholder
  	
:
  	
Name
  	
 
  	
% of equity interest held
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
Fast Boost Holdings Limited
  	
 
  	
100
  	
%
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
Director
  	
 
  	
Hung Kam Shan
  

 

10

 

Part C                     ZUOAN DRESS CO., LTD. SHISHI 

 

	
Incorporation date
  	
:
  	
29 April 2002
  
	
 
  	
 
  	
 
  
	
Place of Incorporation
  	
:
  	
The People’s Republic of China
  
	
 
  	
 
  	
 
  
	
Registered capital
  	
:
  	
RMB3,500,000
  
	
 
  	
 
  	
 
  
	
Shareholder
  	
:
  	
Champion Goal Holdings Limited
  
	
 
  	
 
  	
 
  
	
Director
  	
 
  	
Hung Kam Shan
  

 

11

 

SCHEDULE 3

 

1.                       15,408 shares of the Sale Shares, which are held by Fame Brilliant Group Limited, are charged in favor of Phillip Ventures Enterprise Fund 2 Ltd. pursuant to the deeds of charge dated 24 December 2008 and 22 January 2010 entered by Fame Brilliant Group Limited.

 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]