Document:

exh10_1.htm

 

Exhibit 10.1

 

 

 

Execution Version 

 

 

安徽美能储能系统有限公司

 

合资协议的补充协议

ANHUI MEINENG STORE ENERGY CO., LTD.

SUPPLEMENTAL AGREEMENT TO THE JOINT VENTURE AGREEMENT

本合资协议的补充协议(下称“本协议”)于2011年11月15日由(i)ZBB POWERSAV HOLDINGS LIMITED,一家香港的有限责任公司(下称“香港控股公司”)和(ii)安徽鑫东投资管理有限公司,一家中国的有限责任公司(下称“内资合资公司”)签署。香港控股公司和内资合资公司以下可合称为“双方”,可独称为“一方”。

 

This Supplemental Agreement to the Joint Venture Agreement (hereinafter as this “Agreement”) is entered into on November 15, 2011 by and between (i) ZBB POWERSAV HOLDINGS LIMITED, a Hong Kong limited liability company (“Hong Kong Holdco”) and (ii) ANHUI XINDONG INVESTMENT MANAGEMENT CO., LTD., a Chinese limited liability company (“China JV”). Hong Kong Holdco and the China JV are sometimes referred to collectively herein as the “Parties” and individually as a “Party.”

 

鉴于,

Whereas,

为设立安徽美能储能系统有限公司(下称“合资公司”),双方均作为合资公司投资方于2011年08月17日签署合资协议(下称“合资协议”)。现为合资公司的批准与登记程序,双方拟签署本协议,修订合资协议。

For the purpose of establishing Anhui Meineng Store Energy Co., Ltd. (hereinafter as the “Joint Venture Company”), the Parties, as investors of the Joint Venture Company, entered into a Joint Venture Agreement (hereinafter as the “Joint Venture Agreement”) dated August 17, 2011.  Now, for the purpose of the approval and registration procedures of the Joint Venture Company, the Parties intend to enter into this Agreement to amend and modify the Joint Venture Agreement.

 

 

 

 

  

1

  

 

Execution Version 

为此,以上述目的和其他双方承认充分价值的对价,双方共同签署如下协议:

NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

	
1.  

	
修订合资公司名称

Amendment to the Joint Venture Company Name

根据合资协议“目的称述”第一段的语言:“合资公司名称暂定为安徽美能储能有限公司,实际名称以经审批机关审核的名称预核准通知书所载名称为准”,且现根据2011年11月1日安徽省工商行政管理局出具的企业名称预先核准通知书,合资公司中文名称确认为“安徽美能储能系统有限公司”,合资协议(包括全部合资协议后附附件)内出现“安徽美能储能有限公司”的文字均改为“安徽美能储能系统有限公司”。

Pursuant to the first section of the “STATEMENT OF PURPOSE” under the Joint Venture Agreement, which states: “a Sino – foreign equity joint venture company (the “Company”), the name of which is temporarily Anhui Meineng Store Energy Co., Ltd. (Chinese name:安徽美能储能有限公司) and subsequently shall be what is verified on the Name Verification Notification by the Approval Authority as defined below”, and pursuant to the Company Name Pre-approval Notice issued by the Anhui Administration of Industry and Commerce on November 1, 2011, which confirms the Chinese name of the Joint Venture Company as “安徽美能储能系统有限公司”, the words “安徽美能储能有限公司”, wherever they may appear in the Joint Venture Agreement (including all Exhibits attached thereto), shall be revised to “安徽美能储能系统有限公司”.

	
2.  

	
修订注册资本与投资总额

	
  

	
Amendment to the Registered Capital and Total Investment

 

 

 

  

2

  

 

Execution Version 

合资协议第4.1条原为:

Article 4.1 of the Joint Venture Agreement originally written as:

	
   4.1注册资本:合资公司初始注册资本为8720万人民币(下称:注册资本),具体出资信息详见附件A。但是如果:(i)双方初始出资资产于评估之时,相关中国当局认定,依适用法律之规定,该等资产不值附件A所述之价值,且(ii)届时,该等投资方在收到上述(i)所述认定通知10个工作日内,未能按附件A所载金额追加出资到位;那么,本协议自动终止,且无需双方采取任何进一步行动,并且,对合资公司的此前出资应将立即退还原来的相关出资方。

	
 

4.1 Registered Capital.  The initial registered capital of the Company shall be Eighty Seven Million Two Hundred Thousand Renminbi (RMB 87,200,000) (“Registered Capital”), which will be contributed by the Parties in the amounts, and forms, as set forth on Exhibit A; provided, however, that if (i) upon an assessment of the initial assets to be contributed by the Parties hereunder, the relevant People’s Republic of China Governmental Authority determines under Applicable Law that certain assets do not warrant the valuations set forth on Exhibit A and (ii) whereupon, unless the JV Investors contribute such amount of funds as is necessary to maintain the Percentage Ownership Interests of the JV Investors as set forth on Exhibit A within ten (10) Business Days of the JV Investors’ receipt of notice of the occurrence of (i) hereof, this Agreement shall terminate automatically without any further actions by the Parties and all previous contributions to the Company shall be returned promptly to the relevant JV Investor who made such contribution originally.

修改为:

Shall be amended as:

	
   4.1注册资本与投资总额:合资公司初始注册资本为13625852美元(下称:注册资本),具体出资信息详见下述第4.3条与附件A。但是如果:(i)双方初始出资资产于评估之时,相关中国当局认定,依适用法律之规定,该等资产不值附件A所述之价值,且(ii)届时,该等投资方在收到上述(i)所述认定通知10个工作日内,未能按附件A所载金额追加出资到位;那么,本协议自动终止,且无需双方采取任何进一步行动,并且,对合资公司的此前出资应将立即退还原来的相关出资方。 合资公司投资总额为2000万美金(下称:投资总额);投资总额与注册资本的差额可以境外借款或任何其它合法方式融资。

 

 

  

3

  

 

Execution Version 

 

 

4.2  Registered Capital and Total Investment. The initial registered capital of the Company shall be thirteen million six-hundred and twenty-five thousand eight-hundred and fifty-two U.S. dollars (US$13,625,852) (“Registered Capital”), which will be contributed by the Parties in the amounts, and forms, as set forth in Article 4.3 below and on Exhibit A; provided, however, that if (i) upon an assessment of the initial assets to be contributed by the Parties hereunder, the relevant People’s Republic of China Governmental Authority determines under Applicable Law that certain assets do not warrant the valuations set forth on Exhibit A and (ii) whereupon, unless the JV Investors contribute such amount of funds as is necessary to maintain the Percentage Ownership Interests of the JV Investors as set forth on Exhibit A within ten (10) Business Days of the JV Investors’ receipt of notice of the occurrence of (i) hereof, this Agreement shall terminate automatically without any further actions by the Parties and all previous contributions to the Company shall be returned promptly to the relevant JV Investor who made such contribution originally.  The total investment amount of the Company shall be twenty million U.S. dollars (US$20,000,000) (“Total Investment Amount”).  The difference between the Total Investment Amount and the Registered Capital may be financed by external debt or any other legal means.

 

	
3.  

	
修订注册资本实缴计划

	
  

	
Amendment to the Payment Schedule of Initial Registered Capital Contributions

合资协议第4.3条原为:

Article 4.3 of the Joint Venture Agreement originally written as:

 

 

 

 

 

 

 

  

4

  

 

Execution Version 

	
4.3 初始注册资本实缴计划:合资投资方的任一方应将按其出资比例分二期支付:

(a)第一期支付:合资公司经审批机关颁发营业执照日之次日起第30日。本期支付出资额如下:

(i)香港控股公司支付总计人民币36,700,000元,其中,10,500,000以现金,其余26,200,000元将由香港控股公司的股东ZBB能源的关联机构ZBB威州能源公司以香港控股公司的名义向合资公司授予知识产权的形式支付。

(ii)内资合资公司支付现金总计人民币20,000,000元。

(b)第二期支付:不迟于2012年6月1日。本期支付出资额如下:

(i)香港控股公司支付现金总计人民币10,500,000元。

(ii)内资合资公司总计支付现金人民币20,000,000元。

	
4.3 Payment Schedule of Initial Registered Capital Contributions.  Each of the JV Investors shall contribute to the Company its corresponding portion of the initial registered capital of the Company in two (2) installments:

 

(a) First Installment.  The JV Investors shall contribute the respective amounts listed below within thirty (30) days following the issuance of the Business License to the Company by the Approval Authority:

 

	 	 (i) 	 Hong Kong Holdco shall contribute an aggregate amount of Thirty Six Million Seven Hundred Thousand Renminbi (RMB 36,700,000), of which Ten Million Five Hundred Thousand Renminbi (RMB 10,500,000) will be contributed in cash and Twenty Six Million Two Hundred Thousand Renminbi (RMB 26,200,000) will be credited to Hong Kong Holdco for the intellectual property rights granted to the Company by ZBB Corp., an Affiliate of Hong Kong Holdco member, ZBB Energy; and

 

 

  

5

  

 

Execution Version 

 

	 	 (ii)	 the China JV shall contribute an aggregate amount in cash of Twenty Million Renminbi (RMB 20,000,000).
	 	 	 
	 (b)	  Second Installment.  The JV Investors shall contribute the respective amounts listed below by June 1, 2012:
	 	 	 
	 	 (i)	 Hong Kong Holdco shall contribute an aggregate amount in cash of Ten Million Five Hundred Thousand Renminbi (RMB 10,500,000); and
	 	 	 
	 	 (ii)	 the China JV shall contribute an aggregate amount in cash of Twenty Million Renminbi (RMB 20,000,000).

 

 

修改为:

Shall be amended as:

	
4.3初始注册资本实缴计划:合资投资方的任一方应将按其出资比例分二期支付:

 

(a)第一期支付:合资公司经审批机关颁发营业执照日之次日起第30日,本期支付出资额如下:

 

(i)香港控股公司支付总计5734733美元,其中,1640727.5美元以现金,其余4094006美元将由香港控股公司的股东ZBB能源的关联机构ZBB威州能源公司以香港控股公司的名义向合资公司授予知识产权的形式支付。

(ii)内资合资公司支付现金总计3125295.5美元等值人民币。

 

(b)第二期支付:不迟于2012年6月1日。本期支付出资额如下:

(i)香港控股公司支付现金总计1640727.5美元。

(ii)内资合资公司支付现金总计3125295.5美元等值人民币。

	

  

 

 

  

6

  

 

Execution Version 

 

 

(b)第二期支付:不迟于2012年6月1日。本期支付出资额如下:

 

(i)香港控股公司支付现金总计1640727.5美元。

 

(ii)内资合资公司支付现金总计3125295.5美元等值人民币。

 

4.3 Payment Schedule of Initial Registered Capital Contributions.  Each of the JV Investors shall contribute to the Company its corresponding portion of the initial registered capital of the Company in two (2) installments:

(a) First Installment.  The JV Investors shall contribute the respective amounts listed below within thirty (30) days following the issuance of the Business License to the Company by the Approval Authority

 

 

	 	 (i) 	 Hong Kong Holdco shall contribute an aggregate amount of five million seven-hundred and thirty-four thousand seven-hundred and thirty three U.S. dollars (US$5,734,733), of which one million six-hundred and forty thousand seven-hundred and twenty-seven U.S. dollars and fifty cents (US$1,640,727.5) will be contributed in cash and four million ninety-four thousand and six U.S. dollars (US$4,094,006) contributed by granting an license of intellectual property rights to the Company by ZBB Corp., an Affiliate of Hong Kong Holdco and ZBB Energy, in the name of Hong Kong Holdco; and
	 	 	 
	 	 (ii) 	 the China JV shall contribute in RMB an aggregate amount equal to three million one-hundred and twenty-five thousand two-hundred and ninety five U.S. dollars and fifty cents (US$3,125,295.5) in cash.
	 	 	 
	 (b)	 Second Installment.  The JV Investors shall contribute the respective amounts listed below by June 1, 2012:
	 	 	 
	 	 (i) 	 Hong Kong Holdco shall contribute an aggregate amount of one million six-hundred and forty thousand seven-hundred and twenty-seven U.S. dollars and fifty cents (US$1,640,727.5) in cash; and

 

  

7

  

 

Execution Version 

 

 

	 	 (ii)	 the China JV shall contribute in RMB an aggregate amount equal to three million one-hundred and twenty-five thousand two-hundred and ninety five U.S. dollars and fifty cents (US$3,125,295.5) in cash.
	 	 	 
	 	 	 

 

 

	
4.  

	
修订附件A:合资公司投资双方信息

	
  

	
 

Amendment to Exhibit A: JV Investor Information

合资协议附件A表格原为:

 

The table under Exhibit A of the Joint Venture Agreement originally written as:

	
合资投资方

	
主要营业地

	
法定代表人

	
注册资本

	
占有比例

	
香港控股公司

	  	  	
 

47,200,000人民币。

 

其中:

 

现金:21,000,000人民币;

 

知识产权折合26,200,000

人民币, 由ZBB威州能源公司以许可协议项下

 

的许可代为出资。

	
54.13%

	
内资合资公司

	  	  	
 

40,000,000人民币

	
45.87%

	
总计

	  	  	
 

87,200,000人民币

	
100%

 

 

  

8

  

Execution Version 

 

	
JV

Investor

	
Principal Office

	
Legal Representative

	
Registered Capital

	
Percentage Ownership Interest

	
Hong

Kong 

Holdco

	  	  	
RMB 47,200,000

 

(RMB 21,000,000 contributed in cash; the remaining RMB 26,200,000 will be credited to Hong Kong Holdco for ZBB Corp.’s grant of a license to certain Intellectual Property under the License Agreement for purposes of determining the Percentage Ownership Interests of the Investors

 

	
54.13%

	
China JV

	  	  	
RMB 40,000,000

 

	
45.87%

	
Total

	  	  	
RMB 87,200,000

	
100%

修改为:

Shall be amended as:

	
合资投资方

	
主要营业地

	
法定代表人

	
注册资本

 

	
占有比例

	
香港控股公司

	  	  	
7375461美金。

	
54.13%

 

 

  

9

  

 

Execution Version 

 

 

	
公司

	  	  	
其中:

 

现金:3281455美元;

 

知识产权折合4094006美元, 由ZBB威州能源公司通过香港控股公司以许可

 

协议项下的许可代为出资。

 

	
 

	
内资合资公司

	  	  	
6250391美元等值人民币

 

	
45.87%

	
总计

	  	  	
13625852美元

	
100%

 

 

	
JV

Investor

	
Principal 

Office

	
Legal 

Representative

	
Registered Capital

	
Percentage

 Ownership

 Interest

	
Hong

Kong Holdco

	  	  	
US$7,375,461

 

(US$3,281,455 contributed in cash; the remaining US$ 4,094,006 will contributed by ZBB Corp.’s grant of a license to certain Intellectual Property under the License Agreement in the name of Hong Kong Holdco

 

	
54.13%

	
China JV

	  	  	
US$6,250,391 equivalent in RMB

 

	
45.87%

	
 

Total

	  	  	
US$13,625,852

	
100%

 

 

  

10

  

 

Execution Version 

 

	
5.  

	
其他条款

 

Other Terms

剩余合资协议条款应不变。

Remaining terms of the Joint Venture Agreement are not amended.

	
6.  

	
语言

 

Language

本协议以中英文双语签署;中英文均有同等效力。

This Agreement is executed in both the Chinese and English languages.  Each language shall be equally effective.

	
7.  

	
副本

 

Counterparts

本协议可签署任意数目的副本,每一副本构成原件文件,但所有的该等副本构成同一文件。

This Agreement may be executed in any number of counterparts, and each counterpart shall constitute an original instrument, but all such separate counterparts shall constitute one and the same instrument.

(以下无正文,附后签字页)

(Remainder of page intentionally left blank, Signature Page to follow)

 

 

 

 

 

 

  

11

  

 

Execution Version 

 

 

 

 

(签字页)

(Signature Page)

有鉴于此,双方在上述日期签署本协议。

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date above first written.

 

 

 

	
香港控股公司:

ZBB PowerSav Holdings Limited

 

“Hong Kong Holdco”

ZBB PowerSav Holdings Limited

 

	
内资合资公司

安徽鑫东投资管理有限公司

“China JV”

Anhui Xindong Investment Management Co., Ltd.

	
授权代表 / Authorized Signatory:

Daniel Anthony Nordloh

 

职位/Title: 董事Director

 

 

 

______________________________

 

	
授权代表 / Authorized Signatory:

束龙胜

 

职位/Title: 董事长 Chairman of the Board

 

 

______________________________

	  	  

 

 

12exh10_2.htm

 

 

Exhibit 10.2

 

 

EXECUTION VERSION

 

ANHUI MEINENG STORE ENERGY CO., LTD.

 

ZBB POWERSAV HOLDINGS LTD.

 

LICENSE AGREEMENT

 

This LICENSE AGREEMENT (the “License Agreement”) is made and entered into as of November 11, 2011 (“License Effective Date”), by and between ZBB POWERSAV HOLDINGS LTD., a Hong Kong limited liability company (“Hong Kong Holdco”), and ANHUI MEINENG STORE ENERGY CO., LTD., a Chinese limited liability company (the “Company”).  Hong Kong Holdco and the Company are referred to collectively herein as the “Parties” and individually as a “Party.”

 

STATEMENT OF PURPOSE

 

ZBB Energy Corporation, a Wisconsin corporation, (“ZBB Energy”) designs and manufactures ZBB Products (as defined below) and owns the related intellectual property therein.

 

ZBB Cayman Corporation, an Affiliate of ZBB Energy, is a member of Hong Kong Holdco.  Hong Kong Holdco is a member of, and joint venture partner in, the Company along with the other member, the China JV (as defined below).  Hong Kong Holdco and the China JV are parties to the JV Agreement (as defined below).

 

In conjunction with its indirect relationship with the Company through its Affiliates, ZBB Energy has licensed to Hong Kong Holdco certain intellectual property of ZBB Energy associated with the ZBB Products (as defined below), including its energy storage and power control technology, for the purposes of Hong Kong Holdco sublicensing such intellectual property to the Company.  This sublicense will enable the Company (i) to manufacture, have made, reproduce, distribute, offer to sell, sell and service certain ZBB Products in Greater China (as defined below); (ii) to incorporate that technology in the Company Products (as defined below; collectively with the ZBB Products, the “Products”) for manufacture and sale in Greater China and (iii) to provide certain support services in conjunction with the same.

 

The Parties desire to enter into this License Agreement for the purpose of setting forth the rights and obligations of the Parties with respect to the licensed intellectual property described above.

 

NOW THEREFORE, in consideration of the aforesaid Statement of Purpose, the mutual terms, provisions, covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

	
1.  

	
DEFINITIONS.

 

1.1 For purposes of this License Agreement, the following capitalized terms have the respective meanings set forth below:

 

  

1

  

 

EXECUTION VERSION

 

 

“Business Day” means a day on which commercial banks in Shanghai, China generally are open to conduct their regular banking business.

 

“Business Plans” means, collectively, the (i) the initial business plan of the Company, covering the period running from the Effective Date through the end of the fifth full Fiscal Year after the Effective Date, as agreed upon by the JV Investors and adopted by the Board and (ii) any subsequent business plan of the Company, as approved by the Board pursuant to the terms of the JV Agreement, and in effect from time to time.

 

“Company Documents” means this License Agreement, the JV Agreement, the Business Plans, the Management Services Agreement, the R&D Agreement and the Articles of Association of the Company, as amended from time to time.

 

“Company Products” means authorized Company products designed, manufactured, distributed or sold by the Company that incorporate, in whole or in part, ZBB Products and/or related IPR.

 

“Greater China” means Mainland China, Hong Kong and Taiwan.

 

“Intellectual Property Rights” or “IPR” means all intellectual property and proprietary rights throughout the world, whether existing under statute or at common law or equity, now or hereafter in force or recognized, including: (a) trade secrets, trademarks, service marks, copyrights (including all other literary and author rights), patents, inventions, designs, logos and trade dress, moral rights, mask works, rights of personality, publicity, and privacy, rights in customer information, rights (if any) in domain names; (b) any application or right to apply for any of the rights referred to in clause (a); (c) all renewals, reissues, extensions, divisions, continuations, continuations in part, future equivalents, and restorations thereof, now or hereafter in force and effect; and (d) all rights or causes of action for infringement or misappropriation of any of the foregoing, including the right to collect and retain damages from those causes of action.

 

“JV Agreement” means that certain Joint Venture Agreement of the Company, of even date herewith, by and between (i) Hong Kong Holdco and (ii) Anhui Xindong Investment Management Co. Ltd. (the “China JV”), a Chinese limited liability company, each a “JV Investor”.

 

“Mainland China” means the People’s Republic of China, excluding Hong Kong and Macau.

 

“Management Services Agreement” means that certain Management Services Agreement, of even date herewith, by and between Hong Kong Holdco and the Company.

 

“Power Management Industry” means all industry sectors related to power supply management.

 

“R&D Agreement” means that certain Research and Development Agreement, of even date herewith, by and between (i) ZBB Energy and (ii) the Company.

 

  

2

  

 

EXECUTION VERSION

 

 

“Related Agreements” means (i) the JV Agreement, (ii) the Management Services Agreement and (iii) the R&D Agreement.

 

“Telecom Industry” means any and all industry sectors related to the telecommunications industry, including but not limited to: telephone, radio, television, internet, or other data (analog or digital) transmission goods and services, satellite goods and services, wired or wireless communication goods and services including local area networks and wide area networks, and any other similar goods and services.

 

“ZBB Products” means certain ZBB Energy product families, which are designated by Hong Kong Holdco on Exhibit A hereto, as may be amended by Hong Kong Holdco from time to time, and any related IPR.

 

1.2 Other Definitions.  Terms not otherwise defined, but used, herein that are defined in any Related Agreement shall have the same meaning as in such Related Agreement when used in this Agreement, unless the context otherwise requires.

 

	
2.  

	
LICENSE.

 

2.1 Exclusive License.  Conditioned upon the Company’s full compliance with all of the terms herein and in the Related Agreements, including any Exhibits attached thereto, Hong Kong Holdco hereby grants to the Company an exclusive, non-assignable, non-transferable, non-sublicensable, royalty-free, limited license to the ZBB Products to manufacture, reproduce, distribute, offer to sell, sell, and service ZBB Products and to incorporate the same into the development, manufacture, distribution, and sale of the Company Products during the term of this License Agreement, all such uses being limited to the Power Management Industry in Mainland China.

 

2.2 Non-Exclusive License.  Conditioned upon the Company’s full compliance with all of the terms herein and in the Related Agreements, including any Exhibits attached thereto, Hong Kong Holdco hereby grants to the Company a non-exclusive, non-assignable, non-transferable, non-sublicensable, royalty-free, limited license to distribute, offer to sell, sell, and service ZBB Products and the Company Products, all such used being limited to the Power Management Industry in Hong Kong and Taiwan.

 

2.3 Trademarks.  Hong Kong Holdco hereby grants to the Company a non-assignable, non-transferable, non-sublicensable, royalty-free, limited license to use the ZBB trademarks as set forth in Exhibit A (“Trademarks”) in conjunction with the rights sublicensed in Sections 2.1 and 2.2.  All use of the Trademarks by the Company will inure to the benefit of Hong Kong Holdco.  The Company further agrees that the nature and quality of all goods distributed, offered for sale, or sold and services rendered by the Company in conjunction with the Trademarks will conform to the standards set by and be under the control of Hong Kong Holdco.

 

2.4 License Limitations.  In addition to the conditions set forth in Sections 2.1, 2.2, and 2.3, the licenses granted in Sections 2.1, 2.2, and 2.3 are expressly conditioned upon the Company’s compliance with the following terms and conditions:

 

  

3

  

 

EXECUTION VERSION

 

 

	
(a)  

	
The Company will not manufacture, or have manufactured, the ZBB Products or the Company Products outside of Mainland China.  Such limitation extends to those geographical regions considered part of Greater China (i.e., Hong Kong and Taiwan).

 

	
(b)  

	
The Company will not reverse engineer, decompile, modify or disassemble the ZBB Products in any way, except and only to the extent such activity is permitted by law notwithstanding this limitation.

 

	
(c)  

	
The Company will use the Trademarks on all ZBB Products, the Company Products, and any other goods incorporating, in whole or in part, the ZBB Products.

 

	
(d)  

	
The Company will only use the Trademarks on authorized ZBB Products, the Company Products, and other goods incorporating, in whole or in part, the ZBB Products.

 

	
(e)  

	
The Company may not make any representations, warranties, or other commitments on behalf of Hong Kong Holdco to any third party.

 

	
(f)  

	
The Company must comply with all obligations as set forth herein and any other Company Documents.

 

	
3.  

	
TELECOM INDUSTRY FIRST RIGHT OF REFUSAL.

 

If Hong Kong Holdco receives notice from ZBB Energy that a third party has proposed to ZBB Energy a Commercially Feasible joint venture opportunity in the Telecom Industry within Greater China, Hong Kong Holdco will notify the Company of the same and provide a summary of the proposal as promptly as practicable.  Following receipt of such notice and summary from Hong Kong Holdco, the Company shall have ninety (90) days to propose to ZBB Energy a similar Commercially Feasible joint venture opportunity agreeable to ZBB Energy.  “Commercially Feasible” means a credible, commercially and technically feasible opportunity to qualify ZBB Products in the Telecom Industry in Greater China.  If the Company does not propose a Commercially Feasible joint opportunity to ZBB Energy or if the Company’s proposal is not acceptable to ZBB Energy, the Parties will amend this License Agreement in order to grant to the Company a non-exclusive, non-assignable, non-transferable, non-sublicensable, royalty-free limited license to the ZBB Products to manufacture, reproduce and distribute the ZBB Products and to incorporate the same into the development, manufacture and distribution of the Company Products during the term of this License Agreement in the Telecom Industry in Mainland China.

 

	
4.  

	
INTELLECTUAL PROPERTY OWNERSHIP.

 

4.1 Independently Developed IPR.  Each Party will retain ownership of any and all IPR that the Party owned on or before the License Effective Date.  Additionally, any IPR developed on or after the License Effective Date by either Party independently, and without the use of any of the IPR of the other Party, will be owned solely by the developing Party (collectively, “Independently Developed IPR”).

 

  

4

  

 

EXECUTION VERSION

 

 

4.2 Newly Developed IP.  All IPR developed by Company and Hong Kong Holdco in any derivative works of, modifications of, or improvements to the ZBB Products or the Company Products under this Agreement will be solely owned by Company (subject to Hong Kong Holdco’s ownership of Independently Developed IPR), regardless of whether the IPR is developed solely by a Party or jointly by the Parties (“Newly Developed IP”).  Hong Kong Holdco hereby assigns to Company, all rights, title and interest in and to all Newly Developed IP.  At the Company’s sole expense, Hong Kong Holdco will execute and deliver all instruments and take all other action as may be requested by the Company to perfect or protect the Company’s rights in the Newly Developed IP.  At the Company’s sole expense, Hong Kong Holdco will cooperate with the Company in the filing and prosecution of any copyright or patent applications that the Company may elect to file on the Newly Developed IP or in inventions and designs relating to the Newly Developed IP.  To the maximum extent permitted by law, Hong Kong Holdco waives all moral rights in the Newly Developed IP.  The Company hereby grants to Hong Kong Holdco an exclusive, perpetual, royalty-free, sublicensable license to manufacture, have made, reproduce, distribute, offer to sell, sell, and service the Newly Developed IP in all industry sectors in any and all territories other than Greater China and in any and all industry sectors other than the Power Management Industry in Greater China.

 

4.3 No Other Rights.  Except as expressly granted in this License Agreement, the Company has no other rights in the ZBB Products.  Hong Kong Holdco is not obligated to provide the Company with (a) updates to the ZBB Products or (b) support for the ZBB Products.  All rights not expressly granted are reserved by and retained by Hong Kong Holdco.

 

	
5.  

	
CONFIDENTIALITY.

 

Each Party (the "Receiving Party") undertakes to retain in confidence the terms of this License Agreement and all other non-public information, technology, materials and know-how of the other Party (“Disclosing Party”) disclosed or acquired by the Receiving Party pursuant to or in connection with this License Agreement that is either designated as proprietary and/or confidential or, by the nature of the circumstances surrounding disclosure, ought in good faith to be treated as proprietary and/or confidential ("Confidential Information"); provided, that each Party may disclose the terms and conditions of this License Agreement to its immediate legal and financial consultants in the ordinary course of its business.  Neither Party may use any Confidential Information with respect to which it is the Receiving Party for any purpose other than to carry out the activities contemplated by this License Agreement.  Each Party agrees to use commercially reasonable efforts to protect Confidential Information of the other Party, and in any event, to take precautions at least as great as those taken to protect its own confidential information of a similar nature.  Each Party will also notify the other promptly in writing if such Party learns of any unauthorized use or disclosure of any Confidential Information that it has received from the other Party, and will cooperate in good faith to remedy the occurrence to the extent reasonably possible.  The restrictions set forth in this Section do not apply to any information that: (a) was known by the Receiving Party without obligation of confidentiality prior to disclosure thereof by the other Party; (b) was in or entered the public domain through no fault of the Receiving Party; (c) is disclosed to the Receiving Party by a third party legally entitled to make the disclosure without violation of any obligation of confidentiality; (d) is required to be disclosed by applicable laws or regulations (but in that event, only to the extent required to be disclosed, and provided that the Disclosing Party is given the opportunity to review and redact the License Agreement prior to disclosure); or (e) is independently developed by the Receiving Party without reference to any Confidential Information of the other Party.  Upon request of the Disclosing Party, the Receiving Party will return to the Disclosing Party all materials, in any medium, that contain or reveal all or any part of any Confidential Information of the Disclosing Party.  Each Party acknowledges that breach of this provision by it would result in irreparable harm to the other Party, for which money damages would be an insufficient remedy, and therefore that the other Party will be entitled to seek injunctive relief to enforce the provisions of this Section.

 

  

5

  

 

EXECUTION VERSION

 

 

	
6.  

	
DISCLAIMER OF WARRANTIES.

 

THE ZBB PRODUCTS ARE PROVIDED TO THE COMPANY “AS IS” WITHOUT WARRANTY OF ANY KIND.  THE ENTIRE RISK AS TO THE RESULTS AND PERFORMANCE OF THE ZBB PRODUCTS IS ASSUMED BY THE COMPANY.  HONG KONG HOLDCO DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, AND WARRANTIES OF TITLE AND NONINFRINGEMENT, WITH RESPECT TO THE ZBB PRODUCTS.

 

	
7.  

	
INDEMNITY.

 

7.1 Indemnity Obligation.  The Company will, at its sole expense, defend (upon request), indemnify and hold harmless Hong Kong Holdco and ZBB Energy, and their respective directors, officers, employees, agents, and independent contractors (collectively, "Indemnitees") from and against, and pay for, any and all judgments, liabilities, bona fide settlements, penalties, losses, costs, damages, and other expenses (including reasonable fees of attorneys and other professionals) arising out of or related to the use of the ZBB Products.

 

7.2 Right to Counsel; Payment.  Hong Kong Holdco and ZBB Energy will have the right to employ separate counsel, at such entity’s sole expense, and participate in the defense of any claim.  The Company will reimburse Hong Kong Holdco or ZBB Energy, as applicable, upon demand, for any payments made or loss suffered by any of the Indemnitees at any time, based upon the judgment of any court of competent jurisdiction or pursuant to a bona fide compromise or settlement of any claim, regarding any damages related to any claim under this Section.  The Company will not settle any claim or action on Hong Kong Holdco or ZBB Energy’s behalf without first obtaining Hong Kong Holdco or ZBB Energy’s written consent, as applicable.

 

	
8.  

	
TERM.

 

8.1 Term.  This License Agreement shall commence on the License Effective Date and shall continue in full force and effect until the termination of this License Agreement by either Party as set forth below.

 

  

6

  

 

EXECUTION VERSION

 

 

8.2 Termination for Cause.  Either Party may terminate this License Agreement for an uncured Cause (as defined below) upon at least thirty (30) days prior written notice to the other Party.  If the subject Cause is not cured within such thirty (30) day period, then the Party providing notice may terminate this Agreement.  “Cause” means the material breach or default of the Party in the performance of the terms of this Agreement.

 

8.3 Termination for Bankruptcy.  If a Party is declared bankrupt or insolvent by a court of competent jurisdiction, or is dissolved or liquidated due to adverse financial conditions, the other Party may terminate this License Agreement upon at least thirty (30) days prior written notice to such Party.

 

8.4 Termination of the JV Agreement.  If the JV Agreement is terminated in accordance with the terms thereof, this License Agreement shall terminate automatically, effective immediately, without any further action by the Parties; provided, further for the avoidance of doubt, if Hong Kong Holdco exercises a buy or sell option pursuant to the terms of the JV Agreement, this License Agreement shall terminate automatically, effective immediately.

 

	
9.  

	
EFFECTS OF TERMINATION.

 

The provisions of this License Agreement required to survive the termination of this License Agreement to carry out their full intent and purposes, including Sections 4, 5, 6, 7, 8 and 10 shall survive termination of this License Agreement either for the duration set forth in the applicable Section or, if no duration is specified, indefinitely.

 

	
10.  

	
GOVERNING LAW; DISPUTE RESOLUTION.

 

10.1 Governing Law.  The validity, construction and enforceability of this License Agreement shall be governed by and construed in accordance with the laws of the People’s Republic of China.

 

10.2 Discussions and Arbitration.  The Parties will discuss and finally settle all disputes between them arising out of this License Agreement (including with respect to this Section 10), in accordance with the Domestic Arbitration Rules of Hong Kong International Arbitration Centre.  The Company shall at all times maintain authorized agents in each of the United States and Wuhu City, AnHui Province, the People’s Republic of China to receive, for and on its behalf service of any summons, complaint or other legal process.

 

	
11.  

	
MISCELLANEOUS PROVISIONS.

 

11.1 Notices and Other Communications.  Any and all notices, requests, demands and other communications required by or otherwise contemplated to be made under this License Agreement or Applicable Law shall be in writing and in English and shall be provided by one or more of the following means and shall be deemed to have been duly given (a) if delivered personally, when received; (b) if transmitted by facsimile, on the date of transmission with receipt of a transmittal confirmation or (c) if by international courier service, on the fourth (4th) Business Day following the date of deposit with such courier service, or such earlier delivery date as may be confirmed in writing to the sender by such courier service. All such notices, requests, demands and other communications shall be addressed as follows:

 

  

7

  

 

EXECUTION VERSION

 

If to the Company:

 

ANHUI MEINENG STORE ENERGY SYSTEM CO., LTD.

No. 15 Yangmin Road (N)

Jiujiang Economic Development Zone

Wuhu Anhui  241007

If to Hong Kong Holdco:

 

Mr. Daniel A. Nordloh

ZBB PowerSav Holdings Limited

N93 W14475 Whittaker Way

Menomonee Falls, WI 53051

with a copy (which copy shall not constitute notice) to:

 

Mr. Mark Busch and Mr. Eliab Erulkar

K&L Gates LLP

Hearst Tower, 47th Floor

214 North Tryon Street

Charlotte, North Carolina, USA 28202

or to such other address or facsimile number as a Party may specify to the other Party from time to time in writing.

 

11.2 Severability.  If any provision in this License Agreement shall be found or be held to be invalid or unenforceable then the meaning of said provision shall be construed, to the extent feasible, so as to render the provision enforceable, and if no feasible interpretation would save such provision, it shall be severed from the remainder of this License Agreement which shall remain in full force and effect.  In such event, the Parties shall use their respective best efforts to negotiate in good faith a substitute, valid and enforceable provision or agreement that most nearly affects the Parties’ intent in entering into this License Agreement.

 

11.3 References to this License Agreement; Headings.  Unless otherwise indicated, references to sections and exhibits herein are to sections of, and exhibits to, this License Agreement.  Words such as “herein,” “hereby,” “hereinafter,” “hereof,” “hereto,” and “hereunder” refer to this License Agreement as a whole, unless the context otherwise requires.  The subject headings of the sections of this License Agreement are for reference only, and shall not affect the construction or interpretation of any of the provisions of this License Agreement.

 

11.4 Further Assurances.  The Parties shall each perform such acts, execute and deliver such instruments and documents, and do all such other things as may be reasonably necessary to carry out the provisions of this License Agreement.

 

11.5 No Waiver.  No waiver of any term or condition of this License Agreement shall be valid or binding on a Party unless the same shall have been set forth in a written document, specifically referring to this License Agreement and duly signed by the waiving Party.  The failure of a Party to enforce at any time any of the provisions of this License Agreement, or the failure to require at anytime performance by the other Party of any of the provisions of this License Agreement, shall in no way; be construed to be a present or future waiver of such provisions, nor in any way affect the ability of a Party to enforce each and every such provision thereafter.

 

  

8

  

 

EXECUTION VERSION

 

 

11.6 Entire Agreement; Amendments.  The terms and conditions contained in this License Agreement and the Related Agreements (including the exhibits hereto and thereto) constitute the entire agreement between the Parties and supersede all previous agreements and understandings, whether oral or written, between the Parties with respect to the subject matter hereof and thereof.  No agreement or understanding amending this License Agreement shall be binding upon any Party unless set forth in a written document which expressly refers to this License Agreement and which is signed and delivered by duly authorized representatives of each Party.

 

11.7 Assignment.  No Party shall have the right to assign its rights or obligations under this License Agreement without the written consent of the other Party.  Any assignment or purported assignment not made in accordance with this Section shall be void and of no force and effect.  This License Agreement shall inure to the benefit of, and shall be binding upon, the Parties and their respective successors and permitted assigns.

 

11.8 No Agency.  The Parties are independent contractors.  Nothing contained herein or done in pursuit of this License Agreement shall be construed as establishing a partnership, joint venture or similar relationship between the Parties for any purpose whatsoever.

 

11.9 No Third Party Beneficiaries.  This License Agreement is made solely and specifically between and for the benefit of the Parties and their respective successors and assigns, and no other Person, unless express provision is made herein to the contrary, shall have any rights, interests or claims hereunder or be entitled to any benefits under or on account of this License Agreement as a third party beneficiary or otherwise.

 

11.10 Incidental and Consequential Damages.  No Party will be liable to any other Party under any contract, negligence, strict liability or other theory for any indirect, incidental or consequential damages (including without limitation lost profits) with respect to a breach of this License Agreement.

 

11.11 Counterparts.  This License Agreement may be executed in any number of counterparts, and each counterpart shall constitute an original instrument, but all such separate counterparts shall constitute one and the same instrument.

 

[SIGNATURES APPEAR ON NEXT PAGE]

 

  

9

  

 

EXECUTION VERSION

 

 

IN WITNESS WHEREOF, the Parties have executed this License Agreement as of the License Effective Date.

	
“Hong Kong Holdco”

ZBB PowerSav Holdings Limited

 

	  	
“Company”

Anhui Meineng Store Energy Co., Ltd.

	
/s/ Dan Nordloh                                                               

By: (Sign)

 

 

 

 

	  	
/s/ Bradley L. Hansen                                                               

By: (Sign)

	
Dan Nordloh                                                                  

Name: (Print)

 

 

 

 

	  	
Bradley L. Hansen                                                                      

Name: (Print)

	
Title: Director

	  	
Title: CEO

 

 

 

 

 

Page 10 of 12

[Signature Page - License Agreement]

  

  

  

 

EXHIBIT A

 

ANHUI MEINENG STORE ENERGY CO., LTD.

 

ZBB POWERSAV HOLDINGS LIMITED

 

LICENSE AGREEMENT

 

EXHIBIT A

ZBB PRODUCTS

1.           Energy Storage.

ZBB Version 3 Zinc Bromide Flow Battery / 50kWh Current Design

2.           Power Electronics.

ZBB Power & Energy Control Center (PECC) up to 250KW

ZBB TRADEMARKS

 

 

 

 

 

 

 

 

Page 11 of 12

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