NOTE 10 – RELATED PARTY TRANSACTIONS

The relationship and the nature of related party transactions are summarized as follow:


	Relationship	Nature
Name of Related Party	to the Company	of Transactions
Ford Glory International Limited, or (“FGIL”)	Affiliate, subsidiary of Ford Glory Holdings (“FGH”)	Right of Use Asset, Purchase Agreement
Value Plus (Macao Commercial Offshore) Limited (“VPMCO”)	Affiliate, subsidiary of FGH	Purchases
Yukwise Limited (“Yukwise”)	Wholly owned by our President, Chief Executive Officer and Chairmen, a significant stockholder	Consulting Services
Multi-Glory Corporation Limited (“Multi-Glory”)	Wholly owned by a significant stockholder	Consulting Services

a.Related party lease and purchase agreement

On October 3, 2018, Treasure Success and FGIL entered into a lease agreement pursuant to which Treasure Success leases its office space in Hong Kong from FGIL by providing for rent in the amount of HK$119,540 (approximately $15,253) per month and having a one-year term with an option to extend the term for an additional year at the same rent.

On July 15, 2019, the Company, through Treasure Success, entered into an agreement to purchase this space together with certain parking spaces from FGIL for an aggregate purchase price of HK$63,000,000 or approximately US$8.1 million (see Note 16).

b.Consulting agreements

On January 16, 2018, Treasure Success and Multi-Glory entered into a consulting agreement, pursuant to which Multi-Glory will provide high-level advisory, marketing and sales services to the Company for $300,000 per annum. The agreement renews automatically for one-month terms. The agreement became effective as of January 1, 2018. Total consulting fees under this agreement were $75,000 for each of the three months ended June 30, 2019 and 2018.

On January 12, 2018, Treasure Success and Yukwise entered into a consulting agreement, pursuant to which Mr. Choi will serve as Chief Executive Officer and provide a high level of advisory and general management services for $300,000 per annum, with automatic renewal for one-month terms. This agreement became effective as of January 1, 2018. Total advisory and management expense under this agreement were $75,000 for each the three months ended June 30, 2019 and 2018.

c.Personal Guarantees

Borrowings under the Credit Facilities, as defined in Note 11, with HSBC have been collateralized by the personal guarantees of Mr. Choi and Mr. Ng Tsze Lun, which are expected to be released in calendar year 2019.