Artisan Business Group,Inc.
-Yourtrustedbusinesspartner
EB-5 ProjectAdvisoryandFeeAgreement
AmericaTowneInc.
Prepared on Feb. 4,2016
Artisan BusinessGroup,Inc.3309 Robbins Road,#188
Springfield,IL62704 www.ArtisanBusinessGroup.com
Tel:(217)303-5393
Fax:(888)839-7089
STATEMENTANDDISCLAIMERS
Thiswillconfirmthearrangements,termsandconditionspursuanttowhichArtisanBusinessGroup,Inc.,anIllinoiscorporation,("Artisan"or"Advisor")havebeenretainedtoserveasanadvisortoAmericaTowneInc.("Client" or "Project").Theundersignedherebyagreetothe followingtermsandconditions:
I.DutiesofAdvisor:AdvisorwillprovidesuchChinamarketentryconsultingservicesandadvice pertaining to preparing the Project forChinesemarketinChina.Advisormakesnoguarantees orassurances regarding the finaloutcomeinthe matter, excepttoagreewithand assuretoClientthatAdvisorwillput forth itsbestefforts,underallrelevantcircumstances,in providing marketabilityanalysisrelatedconsulting and businessservices.Advisordoesnotmakeandhasnotmade anyexpressedorimplicitguarantees.Itismutually understoodthatneitherAdvisornorany ofitspartners,directors,agents,employees and controllingpersons(ifany)haveanyresponsibilities concerningthefairnessofthetermsset forth inClient'slegaldocumentsortheircomplianceswithUSCISandSECregulations,whethertotheClient,anyapplicantor anyinvestor.
2. AvailableTime:Advisorshallmakeavailablesuch time,as, inits sole discretion,itshall deem appropriate for the performanceofitsobligationsunderthisAgreement.ClientacknowledgesandagreesthatAdvisorwillperformconsultingservicesforothercompanies.
3. IfAdvisor'spastorpresent representationof anypartyin a related orunrelatedmatterisofconcerntoClient,whetherClientwasAdvisor'sclientoranother partymayhavebeenAdvisor'sclient,pleasecontact Advisor toreviewtheseconcernsbeforesigningthisAdvisoryandFeeAgreementtodetermineifyou wantAdvisortoassistClientinworkingontheproposedproject.
ThisAgreement('"Agreement")willconfirm thearrangements,termsandconditions,pursuanttowhichArtisan BusinessGroup,Inc.,anIllinois corporation("Artisan"or"Advisor")hasbeenretainedtoserveasanadvisortoAmericaTowneInc.("Client"or"Project")onthelastdateindicatedonthesignature page("EffectiveDate").Advisor's servicescommenceonlyuponconfirmationofthereceiptofconsulting feepayment.The undersignherebyagreetothefollowingtermsandconditions:
Situation Appraisal:ClientisplanningtodevelopAmericaTowneprojectsthroughEB-5program.ClientrequiresassistanceindevelopinganeffectiveEB-5businessstrategyandstrengtheningprojectawarenessinthemarketplaceand establishingandenhancingrelationshipwithmigrationagentsinChina.
RoleofAdvisor:Artisanwillbeabusinessadvisorduringthetermperiodof thisAgreementand itsresponsibilitiesinclude:
| • | Reviewandanalyzekeydocuments oftheproject,including,butnotlimitedto,ProjectExecutiveSummary,ProjectPresentation,BusinessPlan,PrivatePlacementMemorandum,EconomicImpact Study,Agreements,MarketingMaterials,etc.andprovideananalysissummarizingtheviabilityandmarketabilityoftheproject;arrangereasonable opportunitytodiscussthe findingsandrecommendations |
| • | DiscusstheprojectbusinessplantoenhanceandstrengthenitsEB-5marketability;discussabout theprojectfinancialstructuresandrisksspecificallyconcerningChineseinvestorsmarket; shareexpertiseandknowledgeonkeyelementsoffinanciallystructuringinvestmentprojectinordertoattractemigrationagentsandinvestorsinChina |
• AdviseClienttominimizecostsandexpenses
| • | AdviseonthedevelopmentofChinesemarketentrystrategiesandinsightsofChineseemigrationindustry aswellasup-to-datemarketconditionsinChina |
• GuideClienttodevelop anddesignkeypromotionalmaterialsforagent/investoraudiences
• Visitprojectsiteforbasicdueddiligencereviewandddiscussprojectstrategies
| • | AssistClientinfacilitatingwithexistingandnewrelationships(includingmigrationagents)inChina |
| • | ArrangemeetingswithinboundChinese emigrationpartners(agents)ifsuchopportunitiesbecomeavailable |
| • | IntroduceClientandtheprojectto aselectedgroupofChineseemigrationagentsandserviceprovidersat Advisor'ssolediscretion,forfurtherdiscussion,afterthe projectacceptsrecommendationsandmeetswithAdvisor'squalityexpectations.However, Advisorwillnotguaranteetheoutcomeofsuchintroductionsinceddialoguesandmutual negotiations will occur |
• Assist Client in conducting social media and promotional campaign in China
| • | AdviseonrelatedChineseregulations,riskcontrolandmanagement the Chinesemarketplace |
Artisan will not fundraise or recruit investors,norshall becompensated based on fundraisingefforts.
Client have unlimited access to Advisorfrom8:00 amto6:00pmU.S.CentralTimeduring theweekby e-mail and phone for Advisoradviceandopinion.If not immediately available, Advisor will returnallphonecallsin timelymanneror,ifat the endoftheday,firstthingthe following morning.Allemailswillbe responded towithin24hoursandusuallymuchfaster.Advisormayhaveregularlyscheduledcallsattimesbothagreeonforwhateverdurationisneeded.ClientmayalsocontactAdvisorinemergencyor criticalsituationsbeyondtheseprovisions.Anyadditionstothisscopewillrequire an amendedproposal,andthisagreementexcludesChineseMarketEntryGuidedTourServicesinChinaandanytrademissionstoChina.
ServicePlan Duration andTiming:Theserviceisbaseduponmonthlyretainer,andfour(4) monthsretainerisrequired. One monthismeant toinclude30calendardaysinthisagreement.Theservicecanbeextended atthemonthlyretainer rateuponthecompletionof thisagreement.Thisnon-cancelableagreementwillonlybecomefullyexecuteduponthe confirmationofpayment.
ConsultingFees and PaymentTerms:
EngagementFee:Aone-timeengagement fee of$8,000isrequired whentheAgreementismutuallysigned.Theengagementfeewillcover the first monthof services.(SeeExhibitA)
Monthly Retainer:$5,000mustbe paidevery thirty(30)days.Clientwillbebilledahead ofpaymentduedate.Fourmonthsengagementisrequiredunderthisagreement.
All feesarenon-refundable.Feesmustbemadewithin7(seven)businessdaysuponthedue datein ordertofullyexecute thisagreement.Thefailureoftimelypaymentwillresultdelayedservicesand/orimmediateterminationofthisagreement atAdvisor'ssolediscretion.Theagreementisnon-cancelablefor anyreasons,includingClientnotcontactingAdvisorforgivenperiods,andpaymentsaretobe madeonduedateasscheduled.Theagreementmaynotbepostponed,delayed,orothe1wiserescheduled.
ServiceDelivery:Theconsultingservices arcmainlyconductedand provided throughphoneconference,E-mail,postal mails, etc.AllmajoractivitieswillbecommunicatedwithClientinatimelymanner andonaregularbasis.OverseastripisatAdvisor'ssolediscretion (atadditionalcharges)uponavailabilityandmay notbeavailableatall.
On-siteMeeting: One on-siteproject (intheUS)meetingisincludedinthisAgreement.Whenadditional meetingsare requiredbyClient,travelandlodgingexpensesshallbe billedasactuallyincurred.ExpensereimbursementisdueonpresentationofinvoicefromAdvisor.Howevertravelandlodging arrangementsandpaymentbyClientinadvancearepreferred.Internationaltravelexpenseswillbepaidby Client.
Third PartyServices:Professionalservicesprovidedbyother partiesshouldbepaidadditionallyby Client,theseservicesmayincludepromotionalbrochureandbusinessflyerdesign,Chinesematerialsprinting,web development,videoproduction,videovoiceover,legalservices,documentationtranslation,accounting,travelarrangements,andtradeshowandtradeshowassistance,etc.AquotationisalwaysobtainedandsenttoClientforconsiderationandapprovalinadvance.AllthirdpartypaymentswillbebilledtoClientandreceivedbyAdvisorpriortoorderingtheservicesrequested.
JointAccountabilities:
Client'saccountabilitieswillinclude:
• ProvidingAdvisorwithaccesstoprojectprincipals,includingtheircontactinfom1ation
• Sharingfinancialdetailsofthe proposedproject,businessplan,andsoforth, asneeded
• Respondingquicklyto Advisor'srequestsforinformation
• Providingreasonableleadtimewhendiscussingurgentmatterswheneverpossible
• AbidingbyUSCISrulesandSECregulationsforthisproject
• Makingretainerpaymentspriortoorondueelates
Advisor's accountabilitieswillinclude:
• Signingnondisclosureandconfidentialitydocuments
• Responding toClient'squestionsandrequestsasstipulatedabove
Bothpartieswillboth beaccountablefor:
| • | Immediatelyinformingtheotherofanynewdevelopments,whichmightmateriallyaffectthesuccessofthisproject. |
Relationship:NothinghereinshallconstituteAdvisoranditsChinastaff asemployeesofClient.ItisunderstoodthatAdvisorwillbeanindependentcontractor.Excepttosuchextentasmayhereinafterbeexpresslyagreed foraspecificpurpose,AdvisorshallnothavetheauthoritytoobligateorcommitClientinanymannerwhatsoever.NothinginthisAgreementshallbeinterpreted tocreateanagency,jointventure,orpartnershipbetweenthepa1ties.
Information:ClientacknowledgesthatAdvisorwillrely on informationfurnishedbyClientconcerningClient'sbusinessaffairs withoutindependentcertificationandClientrepresentsthatsuchinformationwillbemateriallycompleteandcorrect.
Confidentiality:Eachparty tothisAgreementagreestokeepconfidentialalltrade secrets,know-how, orotherproprietaryinformationof theotherparty("ConfidentialInformation")presented,disclosedorrevealedtooneparty("ReceivingParty")bytheother("DisclosingParty")inconnectionwith thisAgreement.
EachpartymaydisclosecertainConfidentialInformationtothirdpartiesona"need-to-know"basisforthepurposeassistingthepartycompletetheirobligationsunderthisAgreement,providedthatallof suchthirdpersons shallbedirectedandrequiredtomaintainthedisclosedConfidentialInformationinconfidenceaccordingtothetermsofthisAgreement.
ReceivingPartyshallnotbeliableto theDisclosingPartyfordisclosureofsuchinformationwhich:
| a) | isknowntothegeneralpublicthroughnoactoromissionoftheReceivingParty,itbeingunderstoodthatConfidentialInformationisnotdeemedtobeinthepublicdomainmerelybecauseitisembracedbymoregeneralinformationwhichmaybeinthepublicdomain; |
| b) | ismadeavailableto theReceivingPartybyathird partywhohasalegalrighttodoso,asdocumentedbywrittenrecords; |
| c) | isrequired,butonlytotheextentrequired,to bedisclosedbytheReceivingPartypursuantto anorderissuedbyacourtoflaworanyfederalstate, ormunicipalregulatoryoradministrativeagency,providedthat(i)ReceivingPartyshallgivepriornoticetoDisclosingPartyofanyintentto orrequestforsuchadisclosureand(ii) ReceivingPartyshallreasonablycooperatewithDisclosingPartywithregards tolimitingany suchdisclosure,at DisclosingParty'sexpense;or |
| d) | wasinthepossession oftheReceivingParty priortothedatehereof,asevidencedbywrittenrecords kept inthe ordinarycourseofbusinessbyReceivingPartyorbyproofofactualuse byReceivingParty. |
Non-Exclusive:AdvisoragreesthatitshallnotbeconsideredClient'sexclusiveprovider of theservicesprovided pursuanttothisAgreementandClient retainstheunconditional right to utilizesuppliersin the provisionof similarservices.
Assignment:ThisAgreementshallnotbeassignablebyeitherparty.
Governing Law:ThisAgreementshallbedeemed tobeacontractmadeunderthelawsofthe StateofIllinois,andforallpurposes shall beconstrued inaccordancewiththelawsofsaid State.Anydisputeshall besubject to finalandbinding arbitrationto bebroughtinSpringfield,Illinois.
Execution of Agreement:ThisAgreementmaybeexecutedinoneormorecounterparts,eachof which willbe deemed tobeanoriginalcopyofthisAgreement and all ofwhich,whentakentogether,willbe deemed toconstitute oneandthesameAgreement.TheexchangeofcopiesofthisAgreementand ofsignature pagesbyfacsimileand/orinternettransmissionshallconstituteeffectiveexecutionanddeliveryofthisAgreementastothepartiesandmaybeusedin lieuoftheoriginalAgreement forallpurposes.Signaturesofthepartiestransmitted byfacsimile orInternetshall be deemed to betheiroriginalsignaturesforallpurposes.
Legal Responsibility of Client:Clienthasthesoleresponsibilityofensuringthatitsactions orinactioncomplywithall U.S. andChineselaws,includingbut notlimitedtoprovidingallrequireddisclosure documentstoinvestorsandfilingall requireddocumentationwiththeSecurities andExchangeCommission (SEC) oranyotherapplicationgovernmentagency.Clientshallindemnify Advisor,andholdAdvisorharmless,for anyviolationof U.S. andChinesesecuritieslaws, whicharisefromClient's actions orinaction.Advisormakesnowarrantyorrepresentationasto whetheranyinvestormay be determined tobean"accredited investor."
Indemnity:Eachparty shallindemnify,defend andholdtheotherparty(and any otherrelation to theotherparty) harmlessagainstany andallclaimsofwhatsoever naturearisingfrom thatparty'sgrossnegligence,recklessnessorwillful misconduct.
Limitation of Liability:ADVISOR'STOTALLIABILITYTOCLIENTFORANYLEGALLY PROVENCLAIM,REGARDLESS OFTHECAUSE OF ACTIONANDWHETHERANYLEGALLYPROVENDAMAGES,SHALLBE LIMITED TOATOTALAGGREGATEAMOUNTWHICHWILLNOT EXCEEDTHEAMOUNTPAIDORPAYABLEBY THECLIENT TO THE ADVISORINTHE12MONTHSPREVIOUS TOTHECAUSE OF ACTION ARISING.
NOTWITHSTANDING ANYOTHER PROVISION OFTHISAGREEMENT, NOPARTYHERETO SHALL BE LIABLE TOANYOTHER PARTY HERETOFORANY LOST PROFITS, CONSEQUENTIAL OR INCIDENTAL, SPECIAL, OR PUNITIVE DAMAGES.
INTENDING TO BE LEGALLYBOUND, thepartieshaveexecutedthisAgreementwhenbothpartiessign theAgreement. Alternatively,Clientinitialpayment per thetermsabovewillalsorepresentacceptanceofthisAgreement.
PLEASE, DONOTSIGN THISAGREEMENTUNLESS AND UNTIL YOU FULLYUNDERSTANDITSTERMS.
SIGNATURESAREON NEXTPAGE
AGREED AND ACCEPTED
Artisan Business Group Inc.
By: /s/ Brian Su
Name: Brian Su
Title: CEO & President
Date: 2/4/2016
AmericaTowne Inc.
By: /s/ Alton Perkins
Name: Alton Perkins
Title: Chairman & CEO
Date: 2/4/2016
