Document:

Unassociated Document

 

SHARE EQUITY PLEDGE AGREEMENT

BETWEEN

BRS (TIANJIN) INVESTMENT MANAGE CO., LTD.

AND

WANG GANGYI

HUANG MIAO

YANG CHANGRUI

WALKER RESOURCES RECYCLING CO., LTD.

DECEMBER 2010 

TIANJIN, CHINA

 

  

  

  

 

Share Equity Pledge Agreement

 

This Agreement is executed by the following Parties on December 15, 2010, in Tianjin, China:

Pledgeors (hereinafter collectively referred to as "Party A"):

 

1 WANG Gangyi, a citizen of PRC with Identity Card number of 220102196211043315, owns 30% share equity of Walker Resources Recycling Co., Ltd.;

 

2 HUANG Miao, a citizen of PRC with Identity Card number of 120102197802033160, owns 65% share equity of Walker Resources Recycling Co., Ltd.;

 

3 YANG Changrui, a citizen of PRC with Identity Card number of 12010419360916215X, owns 5% share equity of Walker Resources Recycling Co., Ltd.

 

and

Pledgee (hereinafter referred to as "Party B'): BRS (Tianjin) Investment Manage Co., Ltd., a wholly foreign-owned enterprise registered in Tianjin.

 

Party C: Walker Resources Recycling Co., Ltd., the registration number of its legal and valid Business License is 120112000082272 and the legal registered address is B319 Chuangyi Center, Private Enterprise Economy Demonstration Base, Binhai District, Tianjin City.

 

In this Agreement, Party A, Party B and Party C are called collectively as the "Parties" and each of them is called as the "Party".

Whereas:

 

	 	
1.

	
Party Aconsists of all of the shareholders of Walker Resources Recycling Co., Ltd. (hereinafter referred to as "Opco"), who legally hold dl of the share equity of Opco.

 

	 	
2

	
Party B is a wholly foreign-owned enterprise incorporated and existing within the territory of China in accordance with the law of the People's Republic of China.

 

	 	
3.

	
Opco is an enterprise incorporated and existing within the territory of China in accordance with the law of the People's Republic of China, the registration number of its legal and valid Business License is 120112000082272 and the legal registered address is B319 Chuangyi Center, Private Enterprise Economy Demonstration Base, Binhai District, Tianjin City.

 

  

  

  

 

	 	
4.

	
Party B intends to acquire all of the share equity or assets of Opco. Prior to the completion of such acquisition, Party A agrees to entrust the management and operation of Opco to Party B and to sell part of operating assets of Opco to Party B. In order to protect the interests of Party B, Party A agrees to pledge the 100% of share equity of Opco they own to Party B.

	 	
5.

	
PartyB accepts the pledge of the share equity by Party A.

Therefore, in accordance with applicable laws and regulations of the People's Republic of China, the Parties hereto reach the Agreement through friendly negotiation on the principle of equality and mutual benefit and abide by.

 

Article 1 Guaranteed Obligations

 

The share equity is being pledged to guarantee all of the rights and interests Party B is entitled to under all of the following listed agreements by and among Party A, Party B and Party C:

(a) Entrusted Management Agreement, by and between Party A, Opco and Party B on December 15, 2010, in Tianjin;

 

(b) Exclusive Option Agreement by and among Party A, Opco and Party B on December 15, 2010, in Tianjin;

 

(c) Shareholders' Voting Proxy Agreement, by and between Party A and Party B on December 15, 2010, in Tianjin; and

 

(d) Exclusive Technology Service Agreement, by and between Party B and Opco on December 15, 2010, in Tianjin.

Article 2 Pledged Properties

 

Party A pledges, by way of first priority pledge, all of its rights, title and interest, in, to and under all or any part of:

(a) 100% of the share equity in Opco;

 

(b) 100% of the registered capital ("Registered Capital") of Opco;

 

(c) all investment certificates and other documents in respect of the Registered Capital of Opco;

 

  

  

  

 

 

(d) all money, dividends, interest and benefits at any time arising in respect of all the share equity and Registered Capital of Opco; and

 

(e) all voting rights and all other rights and benefits attaching to or accruing to the share equity or the Registered Capital of Opco to Party B.

Article 3 Scope of Guaranteed Obligations

 

The scope of the guaranteed obligations is all rights and interests Party B is entitled to in accordance with all the agreements signed by and among Party A and Party B.

 

Article 4 Pledge Procedure and Registration

 

Party A shall be responsible for, and Opco shall assist Party A in processing the registration procedures with Administration for Industry and Commerce concerning the pledged share equity and shall ensure that all other approval(s) from or registration with relevant PRC authorities is granted or duly secured as soon as possible.

Article 5 Transfer of Pledged Share Equity

 

Party A shall not transfer any of the pledged share equity without the prior written consent of Party B during the term of this Agreement.

Article 6 Representations and Warranties

 

6.1 Pledgeors hereby represent and warrant to the Pledgee that:

 

(a) have all the necessary rights, powers and authorizations to enter into this Agreement and perform its duties and obligations hereunder;

 

(b) this Agreement constitutes its legal, valid and binding obligations which are enforceable pursuant to the terms of this Agreement;

 

(c) Pledgeors are and will, at all times, during the term of this Agreement, be the lawful and beneficial owners of the Pledged Share Equity free from pledge or other encumbrances (other than the Pledge created by this Agreement);

 

(d) Pledgeors are legally registered shareholders of Opco and have paid up all the amount of the registered capital of Opco.

 

6.2 Opco hereby represents and warrants to the Pledgee that:

 

(a) it is duly incorporated and validly existing under the laws of the PRC;

 

(b) it has and will at all times have the necessary power, and has obtained the necessary approvals and authorizations, to enable it to enter into and perform its  obligations under this Agreement;

 

  

  

  

 

(c) its entry into and performance of this Agreement do not and will not violate any applicable laws, its articles of association or any agreement or document binding it or its assets; and

 

(d) this Agreement constitutes its legal, valid and binding obligations which are enforceable pursuant to the terms of this agreement.

Article 7 Covenants

 

7.1 Pledgeors further undertake that they shall:

 

(a) at no time during the term of this Agreement, except with the prior written consent of the Pledgee, transfer, sell, pledge (other than the pledge created under this Agreement), encumber or otherwise dispose of the Pledged Share Equity;

 

(b) notify the Pledgee immediately of any event that may affect the title of the Pledgeor in relation to the whole or any part of the Pledged Share Equity under this Agreement;

7.2 Opco further undertakes that it shall:

 

(a) assist the Pledgeor with the completion of this share equity pledge and all subsequent process required by applicable laws and its articles and association; 

 

(b) enter into any transaction which may materially affect its assets, liability, operation, shareholders' share equity or other legal rights (unless such transaction is relating to its daily operation or has been disclosed to and agreed upon by Party B in writing).

Article 8 Effectiveness, Modification and Termination

 

8.1 This Agreement shall go into effect when it is signed by the authorized representatives of the Parties with seals affixed;

 

8.2 Upon the effectiveness of this Agreement and unless otherwise agreed upon by the Parties hereto, neither Party may modify or terminate this Agreement. Any modification or termination shall be in writing after both Parties' consultations. The provisions of this Agreement remain binding on the Parties prior to any written agreement on modification or termination.

Article 9 Governing Law

 

The execution, validity, interpretation and performance of this Agreement and the disputes resolution under this Agreement shall be governed by the laws and regulations of PRC.

 

  

  

  

 

Article 10 Liability for Breach of Agreement

 

Upon the effectiveness of this Agreement, the Parties hereto shall perform their respective obligations under the Agreement. Any failure to perform the obligations stipulated in the Agreement, in part or in whole, shall he deemed as breach of this Agreement and the breaching party shall compensate the non-breaching party for the loss incurred as a result of the breach.

Article 11 Settlement of Dispute

 

The Parties shall strive to settle any dispute arising from the interpretation or performance of this Agreement through friendly consultation. In case no settlement can be reached through consultation within thirty (30) days after such dispute is raised, each party can submit such matter to China International Economic and Trade Arbitration Commission (the "CIETAC") in Beijing in accordance with its rules then in effect. The arbitration shall take place in Beijing. The arbitration award shall be final, conclusive and binding upon both parties.

Article 12 Severability

 

12.1 Any provision of this Agreement that is invalid or unenforceable due to the laws and regulations shall be ineffective without affecting in any way the remaining provisions hereof.

 

12.2 In the event of the foregoing paragraph, the Parties hereto shall prepare supplemental agreement as soon as possible to replace the invalid provision through friendly consultation.

 

Article 13 Miscellaneous

 

13.1 The headings contained in this Agreement are for the convenience of reference only and shall not in any other way affect the interpretation of the provisions of this Agreement.

 

13.2 The Agreement shall be executed in 7 copies, both in Chinese and English. Each party holds one Chinese and one English original, and the remaining shall be kept for completing relevant procedures. Each copy shall have equal legal force, and both the English version and Chinese version shall have the same effect.

 

(REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)

 

  

  

  

 

In Witness Hereof, the Parties hereto have executed this Agreement on the date described in the first page.Unassociated Document

 

EXCLUSIVE OPTION AGREEMENT

 

BETWEEN

 

BRS (TIANJIN) INVESTMENT MANAGE CO., LTD.

 

AND

 

WANG GANGYI

 

HUANG MIA0

 

YANG CHANGRUI

 

WALKER RESOURCES RECYCLING CO., LTD.

 

December 2010

TIANJlN, CHINA

 

  

  

  

 

EXCLUSIVE OPTION AGREEMENT

This Exclusive Option Agreement (the "Agreement") is entered into as of December 15, 2010, by and between the following Parties in Tianjin.

Party A.                         BRS (Tianjin) Investment Manage Co., Ltd.

 

Party B:

 

1. WANG Gangyi

A citizen of PRC, Identity Card Number: 220102196211043315

2. HUANG Miao

A citizen of PRC, Identity Card Number: 120102197802033160

3. YANG Changrui

A citizen of PRC, Identity Card Number: 12010419360916215X

 

Party C: Walker Resources Recycling Co., Ltd.

Legal Representative: WANG Gangyi

Registered Address: B319 Chuangyi Center, Private Enterprise Economy Demonstration Base, Binhai District, Tianjin City.

In this Agreement, Party A, Party B, Party C are called collectively as the "Parties" and each of them is called as the "Party".

 

WHEREAS:

 

1. Party A is a wholly foreign-owned enterprise incorporated under the laws of the People's Republic of China (the "PRC");

 

2. Party C is a limited liability company incorporated under the laws of the PRC;

 

3. As of the date of this Agreement, Party B are shareholders of Walker Resources Recycling Co., Ltd. (hereinafter referred to as "Opco") and collectively legally hold all of the share equity of Opco.

 

NOW, THEREFORE, the Parties through mutual consultation hereby enter into this Agreement according to the following terms and conditions:

	
1.

	
THE GRANT AND EXERCISE OF PURCHASE OPTION

 

	 	
1.1 

	
Grant: Party B hereby grant Party A an irrevocable exclusive purchase option to purchase all or part of the share equity of Opco, currently owned by any of Party B; Opco further hereby grant Party A an irrevocable exclusive purchase option to purchase all or part of the assets and business

 

  

  

  

of Opco, in each case in accordance with Article 1.3 of this Agreement (the "Option"). The aforesaid purchase options are irrevocable and shall be exercised only by Party A (or the qualified persons appointed by Party A). The term "person" used herein shall include any entity, corporation, partnership, joint venture and non-corporate organizations.

	 	
1.2

	
Exercise Procedures:

 

1.2.1 Party A shall notify Party B in writing prior to exercising its option (the "Option Notice" hereinafter).

 

1.2.2 The next day upon receipt of the Option Notice, Party B and Opco, together with party A (or the qualified person appointed by Party A), shall promptly compile a whole set of documents (the "Transfer Documents") to be submitted to the government bodies for approving the share equity or assets and business transfer in connection with the Option exercise so that the share equity or assets and business can be transferred, in whole or in Part.

 

1.2.3 Upon the completion of the compilation of all the Transfer Documents and the Transfer Documents being confirmed by Party A, Party B and Opco shall promptly and unconditionally obtain, together with Party A (or the qualified person appointed by Party A), all approvals, permissions, registrations, documents and other necessary approvals to effectuate the transfer of the share equity and remaining assets and business of Opco in connection with the Option exercise.

 

	 	
1.3

	
Exercise Condition: Party A may immediately exercise the option of acquiring the share equity or remaining assets and business of Opco whenever Party A considers it necessary to acquire Opco and it is doable in accordance with PRC laws and regulations.

 

	
2.

	
PRICE OF ACQUISITION

 

	 	
2.1

	
The total Transfer Price shall be the minimum price permitted under the PRC Law then applicable. All Transfer Price received by Party B shall be refunded to Party A or Opco at no consideration. Refund of the Transfer Price shall be made by Party B by an appropriate manner decided by Party A. Transfer Price means all the considerations which Party A or its designated entity or individual is obliged to pay to Party B or the Opco for the Option in each exercise.

 

	 	
2.2

	
Party A has the discretion to decide the time and arrangement of the acquisition, provided that the acquisition will not violate any PRC laws or  regulations then in effect.

	
3.

	
REPRESENTATIONS AND WARRANTIES

 

	 	
3.1 

	
Each party hereto represents to the other Parties that: (1) it has all the necessary rights, powers and authorizations to enter into this Agreement and perform its duties and obligations hereunder; (2) Party B warrant, represent and guarantee that this Agreement shall be in compliance with any and all applicable PRC laws and shall indemnify, defend and hold harmless Party A and Opco for all fines, penalties, damages or claims sustained by Party A or Opco arising out of Party B's violation of this section; and (3) the execution or performance of this Agreement shall not violate any contract or agreement to which it is a party or by which it or its assets are bounded.

 

	 	
3.2

	
Party B and Opco hereto represent to Party A that, except as disclosed to PartyA: With respect to the share equity held by Party B in Opco, (1) Party B are legally registered shareholders of Opco and have paid Opco the full amount of their respective portions of Opco's registered capital required under the PRC laws; (2) except Pledge of Share Equity Agreement, signed by and between Party B and Party A on December 15, 2010, in Tianjin, none of Party B, has mortgaged or pledged its share equity of Opco, nor has either of them granted any security interest or borrow against its share equity of Opco in any form; and (3) none of Party B has sold or will sell to any third party its share equity in Opco.

 

With respect to the assets of Opco which may be transferred to Party A at Party A's option hereunder, except as disclosed to Party A: (1) Opco owns all such assets and has not mortgaged or pledged or otherwise encumber such assets; and (2) Opco has not sold or will sell to any third party such assets.

 

	 	
3.3 

	
Opco hereto represents to Party A that: (1) it is a limited liability company duly registered and validly existing under the PRC law; and (2) its business operations are in compliance with applicable laws of the PRC in all material aspects.

 

	
4.

	
COVENANTS

 

The Parties further agree as follows:

 

	 	
4.1 

	
Before Party A has acquired all the share equity/assets and business of Opco by exercising the purchase option provided hereunder, Opco shall not:

 

  

  

  

 

4.1.1 sell, assign, mortgage or otherwise dispose of, or create any encumbrance on, any of its assets, operations or any legal or beneficiary interests with respect to its revenues (unless such sale, assignment, mortgage, disposal or encumbrance is relating to its daily operation or has been disclosed to and agreed upon by Party A in writing);

 

4.1.2 enter into any transaction which may materially affect its assets, liability, operation, shareholders' share equity or other legal rights (unless such transaction is relating to its daily operation or has been disclosed to and agreed upon by Party A in writing); and

 

4.1.3 distribute any dividend to its shareholders in any manner.

 

	 	
4.2 

	
Before PartyA has acquired all the share equity/assets/business of Opco by exercising the purchase option provided hereunder, Party B and Party C shall not:

 

4.2.1 sell, assign, mortgage or otherwise dispose of, or create any encumbrance on, any of the share equity held by them in Opco, except for the pledge of such share equity made according to the Share Equity Pledge Agreement, signed by and between Party B and Party A on December 15, 2010, in Tianjin.

 

	 	
4.3 

	
Before Party A has acquired all the share equity/assets/Business of Opco by exercising the purchase option provided hereunder, Party B and/or Opco shall not individually or collectively:

 

4.3.1 supplement, alter or amend the articles of association of Opco in any manner to the extent that such supplement, alteration or amendment may have a material effect on Opco's assets, liability, operation, shareholders' share equity or other legal rights;

 

4.3.2 cause Opco to enter into any transaction to the extent such transaction may have a material effect on Opco's assets, liability, operation, shareholders' share equity or other legal rights (unless such transaction is relating to Opco's daily operation or has been disclosed to and agreed upon by Party A in writing); and

 

	 	
4.4 

	
Party B shall entrust Party A to manage Opco in accordance with Entrusted Management Agreement, signed by and between Party B, Opco and PartyA on December 15, 2010, in Tianjin.

 

  

  

  

 

	 	
4.5

	
Non Competition:

 

When Party A exercises the Option, each of Party B and Opco irrevocably and unconditionally agree and undertake to Party A that it will not without the prior written consent of Party A:

a. be directly or indirectly engaged or concerned (whether as an employee, agent, independent contractor, consultant, advisor or otherwise) in the conduct of any business competing with Party A's Business (the "Business");

b. carry on for his/its own account either alone or in partnership or be concerned as a director or shareholder in any company engaged in any business competing with the Business;

c. assist any person, firm or company with technical advice or assistance in relation to any business competing with the Business;

d. solicit or entice away or attempt to solicit or entice away the custom of any person, firm, company or organization who shall at any time have been a customer, client, distributor or agent of Party A or in the habit of dealing with Party A;

e. solicit or entice away or attempt to solicit or entice away from Party A any person who is an officer, manager or employee of Party A whether or not such person would commit a breach of his contract of employment by reason of leaving Party A;

f. in relation to any trade,, business or company, use any name in such a way as to be capable of or likely to be confused with the name of Party A and shall use all reasonable endeavors to procure that no such name shall be used by any other person, firm or company;

g. otherwise be interested, directly or indirectly, in any business competing with the Business.

	
5.

	
ASSIGNMENT OF AGREEMENT

 

	 	
5.1

	
Party B and Opco shall not transfer their rights and obligations under this Agreement to any third party without the prior written consent of Party A.

 

	 	
5.2

	
Each of Party B and Opco hereby agrees that Party A shall have the right to transfer all of its rights and obligation under this Agreement to any third party whenever it desires. Any such transfer shall only be subject to a written notice sent to Party B and Opco by PartyA, and no any further  consent from Party B and Opco will be required.

 

  

  

  

 

	
6.

	
CONFIDENTIALITY

 

The Parties acknowledge and confirm that any oral or written materials exchanged by the Parties in connection with this Agreement are confidential. The Parties shall maintain the secrecy and confidentiality of all such materials. Without the written approval by the other Parties, any Party shall not disclose to any third party any relevant materials, but the following circumstances shall be excluded:

	 	
6.1

	
The materials are known or will be known by the public (except for any materials disclosed to the public by the Party who receives such materials);

 

	 	
6.2

	
The materials are required to be disclosed under the applicable laws or the rules or provisions of stock exchange; or

 

	 	
6.3

	
The materials disclosed by each Party to its legal or financial consultant relate to the transaction contemplated under this Agreement, and such legal or financial consultant shall comply with the confidentiality set forth in this Section. The disclosure of the confidential materials by an employee of any Party shall be deemed disclosure of such materials by such Party, and such Party shall be liable for breaching the contract. This Article 6 shall survive even if this Agreement is invalid, amended, revoked, terminated or unenforceable by any reason.

	
7.

	
BREACH OF CONTRACT

 

Any violation of any provision hereof, any incomplete or mistaken performance of any obligation provided hereunder, any misrepresentation made hereunder, any material nondisclosure or omission of any material fact, or any failure to perform any covenants provided hereunder by any Party shall constitute a breach of this Agreement. The breaching Party shall be liable for any such breach pursuant to the applicable laws.

 

	
8.

	
APPLICABLE LAW AND DISPUTE RESOLUTION

 

8.1 Applicable Law

 

The execution, validity, interpretation and performance of this Agreement and the disputes resolution under this Agreement shall be governed by the laws of PRC.

 

8.2 Dispute Resolution

 

The Parties shall strive to settle any dispute arising from the interpretation or performance of this Agreement through friendly consultation. In case no

 

  

  

  

 

settlement can be reached through consultation within thirty (30) days after such dispute is raised, each party can submit such matter to China International Economic and Trade Arbitration Commission (the "CIETAC") in Beijing in accordance with its rules. The arbitration shall take place in Beijing. The arbitration award shall be final, conclusive and binding upon both Parties.

 

	
9.

	
EFFECTIVENESS AND TERMINATION

 

	 	
9.1 

	
This Agreement shall be effective upon the execution hereof by all Parties hereto and shall remain effective thereafter.

 

	 	
9.2

	
This Agreement may not be terminated except that Party A may, by giving thirty days prior notice to the other Parties hereto, terminate this Agreement.

	
10.

	
MISCELLANEOUS

 

10.1 Amendment, Modification and Supplement

Any amendment and supplement to this Agreement shall be made by the Parties in writing. The amendment and supplement duly executed by each Party shall be deemed an integral part of this Agreement and shall have the same legal effect as this Agreement.

 

10.2 Entire Agreement

The Parties acknowledge that this Agreement constitutes the entire agreement of the Parties with respect to the subject matters therein and supersedes and replaces all prior or contemporaneous agreements and understandings in oral or written form.

 

10.3 Severability

Any provision of this Agreement that is invalid or unenforceable due to the laws and regulations shall be ineffective without affecting in any way the remaining provisions hereof. The Parties hereto shall prepare supplemental agreement as soon as possible to replace the invalid provision through friendly consultation.

 

10.4 Headings

The headings contained in this Agreement are for the convenience of reference only and shall not in any other way affect the interpretation, explanation or the meaning of the provisions of this Agreement.

 

10.5 Language and Copies

This Agreement is written in Chinese and English and both the English version and Chinese version shall have the same effect. This Agreement is executed in 5 copies for each version; each Party holds one and each original copy has the same legal effect.

 

  

  

  

 

10.6 Successor

 

This Agreement shall bind and benefit the successor or the transferee of each Party.

(Remainder of This Page Intentionally Left Blank)

 

  

  

  

 

IN WITNESS HEREOF, the Parties hereof have caused this Agreement to be executed as of the date first written above.

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