Exhibit 10.1
TERMINATION OF JOINT VENTURE
AGREEMENT
This Termination of Joint Venture Agreement (the
“Agreement”) is made and entered into as of May 1,
2009, between CHINA YOUTV CORP., a Nevada corporation (the
“ Company”), and Beijing Hua Ju
Net Media Technology Co. Ltd., a corporation organized and existing
under the laws of the People’s Republic of China (“Hua
Ju”).
RECITALS:
WHEREAS, the Company and Hua Ju have entered
into a Joint Venture Agreement, dated March 16, 2007 (the
“Joint Venture Agreement”), pursuant to which they
agreed to form a joint venture to jointly conduct a video sharing
web site and other related Internet media business in
China;
WHEREAS, the Joint Venture Agreement provided,
among other things, that (a) the Company owned 51% of the equity of
the joint venture, (b) the Company was required to contribute
RMB510,000 (US$72,728) to the registered capital of the joint
venture, (c) Hua Ju owned 49% of the equity of the joint venture,
(d) Hua Ju was required to contribute RMB490,000 (US$69,876) to the
registered capital of the joint venture, (e) the Company was
required to provide the working capital for the joint venture, (f)
Hua Ju was required to contribute its web site (
www.cnboo.com ) and customer contracts to the joint venture,
(g) the Board of Directors of the joint venture would
consist of three members, with the Company having the right to
appoint two members and Hua Ju having the right to appoint one
member, and (h) the Company, which was in charge of the joint
venture’s accounting management, had the right not to
distribute any profits to the parties during the first three
years;
WHEREAS, Article 6 of the Joint Venture
Agreement provided that the joint venture was to have a term of 20
years;
WHEREAS, the Joint Venture Agreement also
provided that the Company agreed to issue 20,000,000 restricted
shares of its common stock to Hua Ju or its designee as additional
consideration for entering into the Joint Venture Agreement in an
offering intended to be exempt from registration under the
Securities Act of 1933, as amended, pursuant to
Regulation S thereunder;
WHEREAS, on February 18, 2008, a joint venture
license was granted by the regulatory authorities of the People's
Republic of China;
WHEREAS, the required funding of the joint
venture h
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