Chapter 619: Memorandum of Understanding (1) – Part 2
When Gun-Ho and President Jeong-Sook s.h.i.+n arrived at the Shanghai Pudong International Airport, Huanle s.h.i.+ji’s President Baogang Chen was waiting for them at the airport to pick them up with his car. He was driving a K4— a Kia model that was manufactured in China.
“It’s good to see you, Mr. President Goo.”
“I didn’t expect to see you at the airport. You came all the way to the airport to pick us up. Thank you.”
“Of course, I should. You are a very important guest to us.”
“Oh, let me introduce the lady who I came with. She is the president of GH Media— Ms. Jeong-Sook s.h.i.+n.”
“Oh, is that right? She is a beautiful woman. It’s a pleasure meeting you, ma’am. I’m Huanle s.h.i.+ji Production Company’s president— Baogang Chen.”
“Nice to meet you too.”
President Jeong-Sook s.h.i.+n gave her business card to President Baogang Chen. And, President Baogang Chen also gave his business card to President s.h.i.+n.
Baogang Chen took Gun-Ho and President s.h.i.+n to a building in the Pudong area. It was a seven story building, and they went up to the third floor. When they arrived at an office, there was a business sign saying Huanle s.h.i.+ji Production Company on the front door.
When they opened the door and entered the office, there were several staff working.
“I don’t see Director Yan Wu here.”
“I believe that he went out to the studio with several staff. He will come and join us soon.”
At the moment, a female worker brought tea to them. The workers at Huanle s.h.i.+ji seemed to be curious about President Jeong-Sook s.h.i.+n.
“Why don’t we move to another place. This office is a bit depressing. There is a business conference room at Pudong Hotel next to this building. Let’s talk about our business there.”
“That wouldn’t be necessary. Here is fine.”
“Please. Let me take you to a better place. Director Yan Wu will be there too. I’ve made a reservation for their business conference room already.”
Gun-Ho and President Jeong-Sook s.h.i.+n went to the business conference room at the next building with President Baogang Chen.
“This is a very nice place.”
Pudong Hotel’s business conference room was clean and quiet. Gun-Ho liked the place. A moment later, Director Yan Wu entered the conference room.
The meeting began. The female worker who had brought them tea earlier at the Huanle s.h.i.+ji’s office came along with them. President Baogang Chen asked her to record the meeting.
President Baogang Chen spoke first.
“Here is how we receive your investment funds. We are not forming a joint venture, but our company is receiving the investment funds from your company. So, we will raise our capital by third-party allocation shares.”
Gun-Ho said, “You said that Huanle s.h.i.+ji’s current capital is 1 million dollars as it started the company with the amount, right? I will put the same amount of 1 million dollars in the company.”
“We can’t possibly make a drama with 1 million dollars.”
“I agree with you. 1 million dollars is a start. I will invest more funds later by another form other than raising the capital, like a short-term debt or receivables.”
“Can you send the 1 million dollars to us right away?”
“It’s possible. But I will need the investment policy statement about the new drama— s.h.i.+guang Ru Meng first. Also, I want to see the plan about the drama’s TV schedule which must include the broadcasting time and the number of days it would be on air per week, etc.”
“Okay, no problem. We already started discussing it with the broadcasting station about it, and I’m pretty confident that we will reserve the prime time. I will send you the schedule plan as soon as it’s confirmed.”
“The third one is that once we decide to make the investment, I will send a Korean director here to work with you.”
“Oh, will it be Director Sim who I met last time?”
“That’s the plan. Please discuss with Director Sim about casting actors and actresses, and organizing the producing crew with staff.”
It seemed that President Baogang Chen and Director Yan Wu wanted to discuss it before giving Gun-Ho a clear answer on his third request. They took some time discussing something in a low voice between them before saying, “Sounds good. We will do that.”
“I want you to give Director Sim coming from Korea a vice president position in this company. You can decide about his term though according to your company policy.”
“Okay, we accept that.”
“Also, you can determine his salary, accommodation, and other necessary arrangements according to your company policy and common practice around this area and industry.”
“Okay.”
“I will send 50,000 dollars first when Director Sim is sent here. And, once the producing crew is organized, I will send 1 million dollars.”
“Sounds good.”
“Once the capital increase is completed and casting of actors and actresses is done, I will send the second 1 million dollars. By that time, you will receive a subsidy from the broadcasting station, so I will make my determination about the further investment considering the situation.”
“Okay. So, we are not signing the investment contract today?”
“Let’s sign the memorandum of understanding (MOU) for today. Please make the memorandum based on what we have just discussed and agreed, and I will sign it.”
The attendants of the meeting took a break for 30 minutes, so the staff lady could have the agreement in writing. Gun-Ho and President Jeong-Sook s.h.i.+n walked out to the hotel lobby to get some fresh air.
Baogang Chen came to Gun-Ho who was sitting on a sofa in the lobby and said, “I love the idea that Director Sim will join us. I believe that we can get his help on the matters handled by our art team such as setting the studio, makeup, etc., and also technical matters such as lighting, music, recording, editing, etc. But, the thing is that we can’t pay him a lot. His salary will be set somewhere between my salary and Director Yan Wu’s.”
“I understand that. Instead of paying him a high salary, you can compensate him later once the drama succeeds.”
“It is very easy to talk with you, Mr. President Goo. Since you have extensive business experience, you seem to be open to a lot of things, and you are willing to negotiate on most stuff, not to mention that you are highly understanding.”
“How much rent do we expect for Director Sim?”
“For a condo with two bedrooms, a monthly rent would be 3,000 Yuan more or less.”
“Hmm, I see.”
“As to his monthly salary, I can tell you that it will be about 10,000 Yuan. I hope you understand the arrangement.”
“That should be fine. Our main focus should be to produce a drama that will hit a jackpot. So, we can all make money.”
Baogang Chen stood up from his seat and made a call to someone.
At that moment, Director Yan Wu came to them and informed them, “The memorandum of understanding is ready.”
Gun-Ho went back to the business conference room. The staff lady handed the paper to Gun-Ho with a smile.
“Investment Statement? Hmm, that’s how it is called here?”
Gun-Ho carefully reviewed the memorandum of understanding. Everything seemed to be correctly stated reflecting what they discussed and agreed upon earlier.
“Good. I will sign it.”
Please hold one second, sir.”
A man who was wearing a business suit stopped Gun-Ho from signing the memo. He was carrying a camera.
“We want to take a picture recording this moment.”
Before taking pictures and signing the MOU, they rearranged the seats around the table a bit, by having President Jeong-Sook s.h.i.+n and President Baogang Chen sit at the table with the Korean flag and the Chinese red flag with five stars in front of them. Gun-Ho, Director Yan Wu, and the staff lady who recorded the meeting stood up behind the two presidents. The man with a camera took pictures when they signed the MOU and when they exchanged the signed MOU with each other.