BUSINESS COOPERATION
AGREEMENT
This Business
Cooperation Agreement (this “ Agreement” ) is
dated March 25, 2009, and is entered into in Beijing, China between
Gold Rock Resources Inc., a Nevada corporation (“ Party
A ”), and Beijing RainEarth Technology Co. Ltd., a
company incorporated under the laws of the PRC, located at No.1
SanLiTun, East, Chaoyang District, Beijing, China 100027 (“
Party B ”).
RECITALS
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Party A is a
company incorporated under the laws of the Nevada, which has the
expertise in the business of marketing, financing and business
development of Chinese entities.
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Party B is a
company incorporated in Beijing, China, and is an emerging new
technology company, which has leading technology on the research
and development, manufacturing and application of Hollow Fiber
Mambrane Materials, especially in the medical industry in China
(the “Business”);
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Party A desires
to provide marketing support, business support and related
consulting services and relevant services to Party B, for
compensation, and Party B agrees to accept such
services.
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The Parties are
entering into this Agreement to set forth the terms and conditions
under which Party A shall provide services to Party B.
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NOW THEREFORE, the Parties agree as follows:
1.1
In this Agreement the following
terms shall have the following meanings:
“ Affiliate, ” with respect
to any Person, shall mean any other Person that directly or
indirectly controls, or is under common control with, or is
controlled by, such Person. As used in this definition,
“control” shall mean possession, directly or
indirectly, of power to direct or cause the direction of management
or policies (whether ownership of securities or partnership or
other ownership interests, by contract or otherwise).
“ Consulting Services Fee ”
shall be as defined in Clause 3.1.
“ Indebtedness ” shall mean,
as to any Person, without duplication, (i) all indebtedness
(including principal, interest, fees and charges) of such Person
for borrowed money for the deferred purchase price of property or
services, (ii) the face amount of all letters of credit issued for
the amount of such Person and all drafts drawn thereunder, (iii)
all liabilities secured by any Lien on any property owned by such
person, whether or not such liabilities have been assumed by such
Person, (iv) the aggregate amount required to be capitalized under
leases under which such Person is the lessee and (v) all contingent
obligations (including, without limitation, all guarantees to third
parties) of such Person.
“ Lien ” shall mean any
mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), preference, priority or
other security agreement of any kind or nature whatsoever
(including, without limitation, any conditional sale or other title
retention agreement, any financing or similar statement or notice
filed under recording or notice statute, and any lease having
substantially the same effect as any of the foregoing).
“ Person ??shall mean any
individual, corporation, company, voluntary association,
partnership, joint venture, trust, unincorporated organization,
entity or other organization or any government body.
“ PRC ” means the
People’s Republic of China.
“ Quarterly Date ” shall mean
the last day of March, June, September and December in each year,
the first of which shall be the first such day following the date
of this Agreement; provided that if any such day is not a business
day in the PRC, then such Quarterly Date shall be the next
succeeding business day in the PRC.
“ Services ” means the
services to be provided under the Agreement by Party A to Party B,
as more specifically described in Clause 2; in this Agreement a
reference to a Clause, unless the context otherwise requires, is a
reference to a clause of this Agreement.
1.2
The headings in this Agreement shall
not affect the interpretation of this Agreement.
2.
RETENTION AND SCOPE OF
SERVICES
2.1
Party B hereby agrees to retain the
services of Party A, and Party A accepts such appointment, to
provide to Party B services in relation to the current and proposed
operations of Party B’s business in the PRC upon the terms
and conditions of this Agreement. The services subject to this
Agreement shall include, without limitation:
(a)
General Business
Operation . Advice and
assistance relating to development of marketing and provision of
consultancy services, particularly as related to the
Business.
(i)
Advice and assistance in relation to
the staffing of Party B, including assistance in the recruitment,
employment of management personnel, administrative personnel and
staff of Party B;
(ii)
Training of management, staff and
administrative personnel;
(iii)
Assistance in the development of
sound payroll administrative controls in Party B;
(iv)
Advice and assistance in the
relocation of management and staff of Party B;
(v)
Marketing and other related
advice;
(c)
Research and
Development .
(i)
Advice and assistance in relation to
research and development of Party B;
(ii)
Advice and assistance in strategic
planning;
(d)
Guaranty . Party A shall take such action as
may be reasonably required to raise up to RM 136 million ($ 20
million U.S.) of Party B's financial obligations; and
(e)
Other . Such other advice and assistance as
may be agreed upon by the Parties.
2.2
Exclusive Services
Provider . During the
term of this Agreement, Party A shall be the exclusive provider of
the Services. Party B shall not seek or accept similar services
from other providers unless the prior written approval is obtained
from Party A.
2.3
Intellectual Properties Related
to the Services . Party A
shall own all intellectual property rights developed or discovered
through research and development, in the course of providing
Services, or derived from the provision of the Services. Such
intellectual property rights shall include patents, trademarks,
trade names, copyrights, patent application rights, copyright and
trademark application rights, research and technical documents and
materials, and other related intellectual property rights including
the right to license or transfer such intellectual properties. If
Party B must utilize any intellectual property, Party A agrees to
grant an appropriate license to Party B on terms and conditions to
be set forth in a separate agreement.
(a)
In consideration of the Services
provided by Party A hereunder, Party B shall pay to Party A during
the term of this Agreement a consulting services fee, equal to 60%
of the quarterly revenues after deduction of direct operating
costs, expenses and taxes (the “Consulting Services
Fee”). Party B shall pay the Consulting Services Fee based on
the quarterly financial statements provided under Clause 5.1 below.
Such quarterly payment shall be made within 15 days after receipt
by Party A of the financial statements referenced above.
(b)
Party B will permit, from time to
time during regular business hours as reasonably requested by Party
A, or its agents or representatives (including independent public
accountants, which may be Party B’s independent public
accountants), (i) to conduct periodic audits of books and records
of Party B, (ii) to examine and make copies of and abstracts from
all books, records and documents (including, without limitation,
computer tapes and disks) in the possession or under the control of
Party B (iii) to visit the offices and properties of Party B for
the purpose of examining such materials described in clause (ii)
above, and (iv) to discuss matters relating to the performance by
Party B hereunder with any of the officers or employees of Party B
having knowledge of such matters. Party A may exercise the audit
rights provided in the preceding sentence at any time, provided
that Party A provides ten (10) days written notice to Party B
specifying the scope, purpose and duration of such audit. All such
audits shall be conducted in such a manner as not to interfere with
Party B’s normal operations.
3.2
Party B shall not be entitled to set
off any amount it may claim is owed to it by Party A against any
Consulting Services Fee payable by Party B to Party A unless Party
B first obtains Party A’s written consent.
3.3
The Consulting Services Fee shall be
paid in RMB by wire transfer to a bank account or accounts
specified by Party A, as may be specified in writing from time to
time.
3.4
Should Party B fail to pay all or
any part of the Consulting Service’s Fee due to Party A in
RMB under this Clause 3 within the time limits stipulated, Party B
shall pay to Party A interest in RMB on the amount overdue based on
the three (3) month lending rate for RMB announced by the Bank of
China on the relevant due date.
3.5
All payments to be made by Party B
hereunder shall be made free and clear of and without deduction for
or on account of tax, unless Party B is required to make such
payment subject to the deduction or withholding of tax.
4.
FURTHER TERMS OF
COOPERATION
4.1
All business revenue of Party B
shall be directed in full by Party B into a bank account(s)
directed by Party A.
5.
UNDERTAKINGS OF PARTY B
Party B hereby agrees that, during the term of
the Agreement:
5.1
Information Covenants
. Party B will furnish to Party
A:
5.1.1
Monthly Reports
. Within ten (10) days after the end
of each calendar month, a monthly report from Party B on the
financial situation such as income statements, balance sheet and
results of operations of Party B made up to and as at the end of
such calendar month and for the elapsed portion of the relevant
financial year, setting forth in each case in comparative form
figures for the corresponding period in the p