Document:

Form 8-K, Exhibit 10.6

        

        OPTION AGREEMENT  

        

        This Option Agreement (this “Agreement”) is entered into as of November 17, 2008 between and among
        General Red Company, Ltd., a limited liability company organized under the laws of British Virgin Islands (“General Red BVI”), and
        Xingguo General Red Navel Orange Preservation Company, Ltd (“Xingguo”), a limited liability company organized under the laws of the People’s Republic of China
        (“PRC”), and each of the shareholders of Xingguo (“Shareholders”). General Red BVI, Xingguo, and Shareholders are collectively referred to in this Agreement as the
        “Parties.”

         

        RECITALS

        

        	
                    A.

                	
                    The Shareholders are shareholders of Xingguo. The Shareholders collectively own more than 50% of the outstanding equity interest in Xingguo (each, an “Equity
                    Interest” and collectively the “ Equity Interest”);

                

        

        

        

        	
                    B.

                	
                    A series of agreements such as the Consultation Agreement (the “Consultation Agreement”) have been entered into between General Red BVI and Xingguo concurrently
                    with this Agreement;

                

        

        

        

        	
                    C.

                	
                    An Share Pledge Agreement (the “Share Pledge Agreement”) has been entered into by the Parties concurrently herewith;

                

        

        

        

        	
                    D.

                	
                    The Parties are entering into this Option Agreement in conjunction with the Pledge Agreement, Consultation Agreement and related agreements.

                

        

        

        NOW, THEREFORE, the Parties to this Agreement hereby agree as follows:

        

        	
                    1.

                	
                    Option Grant 

                

        

        

        

        	
                     

                	
                    1.1

                	
                    Grant of Rights. The Shareholders (hereafter collectively referred to as the
                    “Transferor”) hereby irrevocably grants to General Red BVI an option to purchase or cause any person designated by General Red BVI (“Designated Persons”) to
                    purchase, to the extent permitted under PRC Law, according to the steps determined by General Red BVI, at the price specified in Section 1.3 of this Agreement, at any time from the Transferor a portion or all of the equity interests held by Transferor in Xingguo (the “Option”). No option or similar right shall be granted
                    by Transferor to any third party other than General Red BVI and/or the Designated Persons. Xingguo hereby agrees to the granting of the Option by The Shareholders to General Red BVI and/or the Designated Persons. The “person” set forth in this clause and this Agreement means an individual, corporation, joint venture, partnership, enterprise, trust or a non-corporation organization.

                

        

        

        

        

        	
                     

                	
                    1.2

                	
                    Exercise of Rights. According to the stipulations of PRC laws and regulations, General Red BVI and/or the Designated Persons may exercise Option by issuing a written notice (the
                    “Notice ”) to the Transferor and specifying the equity interest purchased from Transferor (the “Purchased Equity Interest”) and the manner of purchase.

                

        

        

        

        	
                     

                	
                    1.3

                	
                    Purchase Price.

                

        

        

        

        	
                     

                	
                    1.3.1

                	
                    For General Red BVI to exercise the Option, the purchase price of the Purchased Equity Interest (“Purchase Price”) shall be equal to the original paid-in price of
                    the Purchased Equity Interest by the Transferor, unless the applicable PRC laws and regulations require appraisal of the equity interests or stipulate other restrictions on the purchase price of equity interests.

                

        

        

        

        	
                     

                	
                    1.3.2

                	
                    

                    If the applicable PRC laws require appraisal of the equity interests or stipulates other restrictions on the purchase price of the Equity Interest at the time that General Red BVI exercise the Option, the Parties agree that the Purchase Price shall be set at the lowest price permissible under the applicable laws.

                

        

        

        
            

        

        

        	
                     

                	
                    1.4

                	
                    Transfer of the Purchased Equity Interest. Upon each exercise of the Option rights under this Agreement:

                

        

        

        

        

        	
                     

                	
                    1.4.1

                	
                    Xingguo shall convene a shareholders’ meeting upon request by the Transferor, and Transferor agrees to call such meeting. During the meeting, resolutions shall be proposed, approving the transfer of the appropriate Equity Interest to General Red BVI and/or the Designated Persons;

                

        

        

        

        	
                     

                	
                    1.4.2

                	
                    The Transferor shall, upon the terms and conditions of this Agreement and the Notice related to the Purchased Equity Interest, enter into Equity Interest purchase agreement in a form reasonably acceptable to General Red BVI, with General Red BVI and/or the Designated Persons (as applicable);

                

        

        

        

        	
                     

                	
                    1.4.3

                	
                    The related parties shall execute all other requisite contracts, agreements or documents, obtain all requisite approval and consent of the government, conduct all necessary actions, without any security interest, transfer the valid ownership of the Purchased Equity Interest to General Red BVI and/or the Designated
                    Persons, and cause General Red BVI and/or the Designated Persons to be the registered owner of the Purchased Equity Interest. In this clause and this Agreement, “Security Interest” means any mortgage, pledge, the right or interest of the third party, any purchase right of equity interest, right of acquisition, right of
                    first refusal, right of set-off, ownership detainment or other security arrangements, however, it does not include any security interest created under the Share Pledge Agreement.

                

        

        

        

        	
                     

                	
                    1.5

                	
                    Payment. The payment of the Purchase Price shall be determined by the consultation of General Red BVI and/or the Designated Persons with the Transferor according to the applicable laws at the time of exercise of the Option.

                

        

        

        

        	
                    2.

                	
                    Promises Relating Equity Interest.  

                

        

        

        

        	
                     

                	
                    2.1

                	
                    Promises Related to Xingguo. Xingguo, the Shareholders hereby promise:

                

        

        

        

        	
                     

                	
                    2.1.1

                	
                    Without prior written consent by General Red BVI, not, in any form, to supplement, change or renew the Articles of Association of Xingguo, to increase or decrease registered capital of the corporation, or to change the structure of the registered capital in any other forms;

                

        

        

        

        	
                     

                	
                    2.1.2

                	
                    According to customary fiduciary standards applicable to managers with respect to corporations and their shareholders, to maintain the existence of the corporation, prudently and effectively operate the business;

                

        

        

        

        	
                     

                	
                    2.1.3

                	
                    Without prior written consent by General Red BVI, not, upon the execution of this Agreement, to sell, transfer, mortgage or dispose, in any other form, any asset, legitimate or beneficial interest of business or income of Xingguo, or encumber or approve any encumbrance or imposition of any security interest on General
                    Red BVI’s assets;

                

        

        

        

        	
                     

                	
                    2.1.4

                	
                    Without prior written notice by General Red BVI, not issue or provide any guarantee or permit the existence of any debt, other than (i) the debt arising from normal or daily business but not from borrowing; and (ii) the debt disclosed to General Red BVI and obtained the written consent from General Red BVI;

                

        

        

        

        	
                     

                	
                    2.1.5

                	
                    To normally operate all business to maintain the asset value of Xingguo, without taking any action or failing to take any action that would result in a material adverse effect on the business or asset value of Xingguo;

                

        

        

        
            

        

        

        	
                     

                	
                    2.1.6

                	
                    Without prior written consent by General Red BVI, not to enter into any material agreement, other than agreements in the ordinary course of business (for purposes of this paragraph, if the amount of the Agreement involves an amount that exceeds a hundred thousand Yuan (RMB 100,000) the agreement shall be deemed
                    material);

                

        

        

        

        	
                     

                	
                    2.1.7

                	
                    Without prior written consent by General Red BVI, not to provide loan or credit loan to any others;

                

        

        

        

        	
                     

                	
                    2.1.8

                	
                    Upon the request of General Red BVI, to provide all materials of operation and finance relevant to Xingguo to the extent they are in possession of such materials;

                

        

        

        

        	
                     

                	
                    2.1.9

                	
                    Purchase and hold insurance from an insurance company acceptable to General Red BVI, and the insurance amount and category shall be the same with those held by the companies in the same industry or field, operating the similar business and owning the similar properties and assets as Xingguo;

                

        

        

        

        	
                     

                	
                    2.1.10

                	
                    Without prior written consent by General Red BVI, not to cause Xingguo to merge or associate with any person, or acquire or invest in any person;

                

        

        

        

        	
                     

                	
                    2.1.11

                	
                    To notify General Red BVI of the occurrence or the potential occurrence of the litigation, arbitration or administrative procedure related to the assets, business and income of Xingguo;

                

        

        

        

        	
                     

                	
                    2.1.12

                	
                    To cause Xingguo to maintain and preserve its assets, and to execute all requisite or appropriate documents, take all requisite or appropriate actions, and pursue all appropriate claims, or make requisite or appropriate pleas for all claims;

                

        

        

        

        	
                     

                	
                    2.1.13

                	
                    Without prior written notice by General Red BVI, not to assign equity interests to shareholders in any form; however, General Red BVI shall distribute all or part of its distributable profits to their own shareholders upon request by General Red BVI;

                

        

        

        

        	
                     

                	
                    2.1.14

                	
                    According to the request of General Red BVI, to appoint any person designated by General Red BVI to be the directors of Xingguo.

                

        

        

        

        	
                     

                	
                    2.2

                	
                    Promises Related to Transferor. The Shareholders hereby promise:

                

        

        

        

        	
                     

                	
                    2.2.1

                	
                    Without prior written consent by General Red BVI, not, upon the execution of this Agreement, to sell, transfer, mortgage or dispose in any other form any legitimate or beneficial interest of equity interest, or to approve any other security interest set on it, with the exception of the pledge set on the equity interest
                    of the Transferor subject to Share Pledge Agreement;

                

        

        

        

        	
                     

                	
                    2.2.2

                	
                    Without the prior written notice by General Red BVI, not to decide or support or execute any shareholder resolution at any shareholder meeting of Xingguo that approves any sale, transfer, mortgage or dispose of any legitimate or beneficial interest of equity interest, or allows any other security interest set on it,
                    other than the pledge on the equity interests of Transferor pursuant to Share Pledge Agreement;

                

        

        

        

        	
                     

                	
                    2.2.3

                	
                    Without prior written notice by General Red BVI, the Parties shall not agree or support or execute any shareholder resolution at any shareholder meeting of Xingguo that approves Xingguo’s merger or association with any person, acquisition of any person or investment in any person;

                

        

        

        

        	
                     

                	
                    2.2.4

                	
                    To notify General Red BVI the occurrence or the potential occurrence of the litigation, arbitration or administrative procedure related to the equity interest owned by them;

                

        

        

        

        	
                     

                	
                    2.2.5

                	
                    To cause the Board of Directors of Xingguo to approve the transfer of the Purchased Equity Interest subject to this Agreement;

                

        

        

        
            

        

        

        	
                     

                	
                    2.2.6

                	
                    In order to keep its ownership of the equity interest, to execute all requisite or appropriate documents, conduct all requisite or appropriate actions, and make all requisite or appropriate claims, or make requisite or appropriate defend against fall claims of compensation;

                

        

        

        

        	
                     

                	
                    2.2.7

                	
                    Upon the request of General Red BVI, to appoint any person designated by General Red BVI to be the directors of Xingguo;

                

        

        

        

        	
                     

                	
                    2.2.8

                	
                    Upon the request of General Red BVI at any time, to transfer its Equity Interest immediately to the representative designated by General Red BVI unconditionally at any time and abandon its prior right of first refusal of such equity interest transferring to another available shareholder;

                

        

        

        

        	
                     

                	
                    2.2.9

                	
                    To prudently comply with the provisions of this Agreement and other Agreements entered into collectively or respectively by the Transferor, Xingguo and General Red BVI and perform all obligations under these Agreements, without taking any action or any nonfeasance that sufficiently affects the validity and
                    enforceability of these Agreements;

                

        

        

        

        	
                    3.

                	
                    Representations and Warranties. As of the execution date of this Agreement and every transferring date, Xingguo, the Shareholders hereby jointly and severally represent and warrant collectively and respectively to General Red BVI as
                    follows:

                

        

        

        

        	
                     

                	
                    3.1

                	
                    It has the power and ability to enter into and deliver this Agreement, and any equity interest transferring Agreement (“Transferring Agreement,” respectively)
                    having it as a party, for every single transfer of the Purchased Equity Interest according to this Agreement, and to perform its obligations under this Agreement and any Transferring Agreement. Upon execution, this Agreement and the Transferring Agreements having it as a party will constitute a legal, valid and binding obligation of it enforceable against it in accordance with its terms;

                

        

        

        

        	
                     

                	
                    3.2

                	
                    To its knowledge and without independent verification, the execution, delivery of this Agreement and any Transferring Agreement and performance of the obligations under this Agreement and any Transferring Agreement will not: (i) cause to violate any relevant laws and regulations of PRC; (ii) constitute a conflict with
                    its Articles of Association or other organizational documents (if an entity); (iii) cause to breach any Agreement or instruments to which it is a party or having binding obligation on it, or constitute the breach under any Agreement or instruments to which it is a party or having binding obligation on it; (iv) cause to violate relevant authorization of any consent or approval to it and/or any continuing valid condition; or (v) cause any consent or approval authorized to it
                    to be suspended, removed, or into which other requests be added;

                

        

        

        

        	
                     

                	
                    3.3

                	
                    The shares of Xingguo are transferable, and Xingguo has not permitted or caused any security interest to be imposed upon the shares of Xingguo.

                

        

        

        

        	
                     

                	
                    3.4

                	
                    Xingguo does not have any unpaid debt, other than (i) debt arising from its normal business; and (ii) debt disclosed to General Red BVI and obtained by written consent of General Red BVI;

                

        

        

        

        	
                     

                	
                    3.5

                	
                    Xingguo has complied with all PRC laws and regulations applicable to the acquisition of assets and securities in connection with this Agreement;

                

        

        

        

        	
                     

                	
                    3.6

                	
                    No litigation, arbitration or administrative procedure relevant to the Equity Interests and assets of Xingguo or Xingguo itself is in process or to be settled and the Parties have no knowledge of any pending or threatened claim;

                

        

        

        

        	
                     

                	
                    3.7

                	
                    The Transferor bears the fair and salable ownership of its Equity Interest free of encumbrances of any kind, other than the security interest pursuant to the Share Pledge Agreement.

                

        

        

        

        	
                    4.

                	
                    Assignment of Agreement 

                

        

        

        

        	
                     

                	
                    4.1

                	
                    Xingguo, the Shareholders shall not transfer their rights and obligations under this Agreement to any third party without the prior written consent of the General Red BVI.

                

        

        

        
            

        

        

        	
                     

                	
                    4.2

                	
                    Xingguo, the Shareholders hereby agree that General Red BVI shall be able to transfer all of its rights and obligation under this Agreement to any third party with its needs, and such transfer shall only be subject to a written notice sent to Xingguo, the Shareholders by General Red BVI, and no any further consent from
                    Xingguo, the Shareholders will be required.

                

        

        

        

        	
                    5.

                	
                    Effective Date and Term 

                

        

        

        

        	
                     

                	
                    5.1

                	
                    This Agreement shall be effective as of the date first set forth above.

                

        

        

        

        	
                     

                	
                    5.2

                	
                    The term of this Agreement is twenty (20) years unless the early termination in accordance with this Agreement or other terms of the relevant agreements stipulated by the Parties. This Agreement may be extended according to the written consent of General Red BVI before the expiration of this Agreement. The term of
                    extension will be decided unanimously through mutual agreement of the Parties.

                

        

        

        

        	
                     

                	
                    5.3

                	
                    If General Red BVI or Xingguo terminates by the expiration of its operating period (including any extended period) or other causes in the term set forth in Section 5.2, this Agreement shall be terminated simultaneously, except General Red BVI has transferred its rights and obligations in accordance with Section 4.2 of
                    this Agreement.

                

        

        

        

        	
                    6.

                	
                    Applicable Law and Dispute Resolution

                

        

        

        

        	
                     

                	
                    6.1

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

                

        

        

        

        	
                     

                	
                    6.2

                	
                    Dispute Resolution. The parties shall strive to settle any dispute arising from the interpretation or performance in connection with 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 accordance with its rules. Arbitration shall take place in Beijing and the proceedings shall be conducted in Chinese. Any resulting arbitration award shall be
                    final conclusive and binding upon both parties.

                

        

        

        

        	
                    7.

                	
                    Taxes and Expenses. Each Party shall, according to the PRC laws, bear any and all registering taxes, costs and expenses for equity transfer arising from the preparation and execution of this Agreement and all Transferring Agreements, and the
                    completion of the transactions under this Agreement and all Transferring Agreements.

                

        

        

        

        	
                    8.

                	
                    Notices. Notices or other communications required to be given by any party pursuant to this Agreement shall be written in English and Chinese and delivered personally or sent by registered mail or postage prepaid mail or by a recognized courier
                    service or by facsimile transmission to the address of relevant each party or both parties set forth below or other address of the party or of the other addressees specified by such party from time to time. The date when the notice is deemed to be duly served shall be determined as the follows: (a) a notice delivered personally is deemed duly served upon the delivery; (b) a notice sent by mail is deemed duly served the tenth
                    (10th ) day after the date when the air registered mail with postage prepaid has been sent out (as is shown on the postmark), or the fourth (4th) day after the delivery date to the
                    internationally recognized courier service agency; and (c) a notice sent by facsimile transmission is deemed duly served upon the receipt time as is shown on the transmission confirmation of relevant documents.

                

        

        

        

        

        	
                    9.

                	
                    Confidentiality. The Parties acknowledge and confirm 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 (except that written approval of the Shareholders shall not be required), any Party shall not disclose to any third Party any relevant materials, but the following circumstances shall be excluded:

                

        

        

        

        	
                     

                	
                    9.1

                	
                    The materials that is known or may be known by the general public (but not include the materials disclosed by each party receiving the materials);

                

        

        

        
            

        

        

        	
                     

                	
                    9.2

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

                

        

        

        

        	
                     

                	
                    9.3

                	
                    The materials disclosed by each Party to its legal or financial consultant relating the transaction of this Agreement, and this legal or financial consultant shall comply with the confidentiality set forth in this Section. The disclosure of the confidential materials by staff or employed institution of any Party shall
                    be deemed as the disclosure of such materials by such Party, and such Party shall bear the liabilities for breaching the contract. This clause shall survive whatever this Agreement is invalid, amended, revoked, terminated or unable to implement by any reason.

                

        

        

        

        	
                    10.

                	
                    Further Warranties. The Parties agree to promptly execute documents reasonably required to perform the provisions and the aim of this Agreement or documents beneficial to it, and to take actions reasonably required to perform the provisions and
                    the aim of this Agreement or actions beneficial to it.

                

        

        

        

        	
                    11.

                	
                    Miscellaneous.

                

        

        

        

        	
                     

                	
                    11.1

                	
                    Amendment, Modification and Supplement. Any amendment and supplement to this Agreement shall only be effective is made by the Parties in writing.

                

        

        

        

        	
                     

                	
                    11.2

                	
                    Entire Agreement. Notwithstanding the Article 5 of this Agreement, the Parties acknowledge that this Agreement constitutes the entire agreement of the Parties with respect to the subject matters therein and supercede and replace all prior or
                    contemporaneous agreements and understandings in verb or/and in writing.

                

        

        

        

        	
                     

                	
                    11.3

                	
                    Severability. If any provision of this Agreement is judged as invalid or non-enforceable according to relevant Laws, the provision shall be deemed invalid only within the applicable laws and regulations of the PRC, and the validity, legality and
                    enforceability of the other provisions hereof shall not be affected or impaired in any way. The Parties shall, through fairly consultation, replace those invalid, illegal or non-enforceable provisions with valid provisions that may bring the similar economic effects with the effects caused by those invalid, illegal or non-enforceable provisions.

                

        

        

        

        	
                     

                	
                    11.4

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

                

        

        

        

        	
                     

                	
                    11.5

                	
                    Language and Copies. This Agreement has been executed in Chinese in duplicate originals; each Party holds one (1) original and each duplicate original shall have the same legal effect.

                

        

        

        

        	
                     

                	
                    11.6

                	
                    Successor. This Agreement shall bind and benefit the successor of each party and the transferee allowed by each Party.

                

        

        

        

        	
                     

                	
                    11.7

                	
                    Survival. Any obligation taking place or at term hereof prior to the end or termination ahead of the end of this Agreement shall continue in force and effect notwithstanding the occurrence of the end or termination ahead of the end of the
                    Agreement. Article 6, Article 8, Article 9 and Section 11.7 hereof shall continue in force and effect after the termination of this Agreement.

                

        

        

        

        	
                     

                	
                    11.8

                	
                    Waiver. Any Party may waive the terms and conditions of this Agreement in writing with the signature of the Parties. Any waiver by a Party to the breach by other Parties within certain situation shall not be construed as a waiver to any similar
                    breach by other Parties within other situations.

                

        

        

        
            

        

         

        IN WITNESS WHEREOF, the parties hereof have caused this Agreement to be executed by their duly authorized representatives as of the date first written above.

        

         

        GENERAL RED BVI:

        

        By: /s/  Xingping Hou

             Xingping Hou

         

        Director

         

         

        XINGGUO:

         

        By: /s/  Xingguo General Red Navel Orange Preservation Company, Ltd.

             Xingguo General Red Navel Orange Preservation Company, Ltd.

        

        SHAREHOLDERS:

         

         

        [SIGNATURES PAGES FOR SHAREHOLDERS FOLLOWS]

        

        By: /s/  Xingping Hou

             Xingping Hou

         

         

        By: /s/  Xingguo General Fruits Development Company, Ltd.

             Xingguo General Fruits Development Company, Ltd.Form 8-K. Exhibit 10.7

         

        

        SHARE TRANSFER AND ISSUANCE AGREEMENT

        

        This SHARE TRANSFER AND ISSUANCE AGREEMENT, dated
        November 17, 2008 (“Agreement”) is entered by and among General Red International, Inc. (“Company”), a Texas corporation, General Red Company, Ltd. (“General Red
        BVI”), a limited liability company organized under the laws of British Virgin Islands, Xingping Hou, the sole shareholders of General Red BVI (“Xingping Hou”), and Xingguo General Fruits Development
        Company, Ltd. (“General Fruits”). Company, General Red BVI, Xingping Hou, and General Fruits are hereinafter collectively referred to as “parties”.

         

        WHEREAS, Xingping Hou owns 100% of the issued and outstanding shares of common stock of General Red BVI (the "General Red BVI Shares");

        

        WHEREAS, Xingping Hou and General Fruits are the majority shareholders of Xingguo General Red Navel Orange Preservation Company, Ltd (“Xingguo”);

        

        WHEREAS, Xingguo entered a series of agreements (including a Consultation Agreement, an Operating Agreement, a Proxy Agreement, a Share Pledge Agreement and an Option Agreement) with General Red BVI on November
        17, 2008 under which General Red BVI gained controlling interest in Xingguo;

          

        WHEREAS, in connection with the above described agreements that General Red BVI and Xingguo entered on November 17, 2008, the parties intend that:
        (i) Company shall acquire from Xingping Hou 100% of the General Red BVI Shares in exchange for the shares of the common stock of Company as set forth herein; (ii) Company shall also issue to General Fruits the shares of common stock of the Company as set forth herein;

         

        NOW, THEREFORE, in consideration of the mutual terms, conditions and other agreements set forth herein, the parties hereto hereby agree as follows:

         

        ARTICLE I

         

        SHARES TRANSFER AND ISSUANCE

         

        Section 1.1 Share Transfer and Issuance. On the
        Closing Date (as hereinafter defined) and subject to the terms and conditions set forth in this Agreement, Xingping Hou shall assign, transfer, convey and deliver the General Red BVI Shares (representing 100% of the issued and outstanding General Red BVI Shares), to Company, and Company shall accept the General Red BVI Shares from the Xingping Hou in exchange for the issuance to the Xingping Hou a total of
        10,200,000 shares of the common stock of the Company. Also on the Closing Date, the Company shall issue 11,800,000 shares of the common stock of the Company
        to General Fruits. The shares of common stock of the Company issued to Xingping Hou and General Fruits according to this section are hereinafter collectively referred to as “Company Shares”.

        

        Section 1.2 Closing. The closing of the exchange
        to be made pursuant to this Agreement (“Closing”) shall take place at 10:00 a.m. E.S.T. on the day when the conditions to closing set forth in Articles V and VI have been satisfied or waived, or at such other time and date as the parties hereto shall agree in writing (“Closing Date”) at
        the place mutually designated by both parties. At the Closing, Xingping Hou shall deliver to Company the stock certificates representing 100% of the General Red BVI Shares, duly endorsed in blank for transfer or accompanied by appropriate stock powers duly executed in blank. Company shall issue to Xingping Hou 10,200,000
        shares of common stock of Company and issue to General Fruits 11,800,000 shares of common stock. 

         

        

        ARTICLE II

        
            

        

         

        

        REPRESENTATIONS AND WARRANTIES OF Company

        

        Company hereby, jointly and severally, represents, warrants and agrees as follows:

         

        Section 2.1 Corporate Organization

        

        a. Company is a corporation duly organized, validly existing and in good standing under the laws of Texas, and has all requisite corporate
        power and authority to own its properties and assets and to conduct its business and is duly qualified to do business in good standing in each jurisdiction in which the nature of the business conducted by Company or the ownership or leasing of its properties makes such qualification and being in good standing necessary, except where the failure to be so qualified and in good standing will not have a material adverse effect on the business, operations, properties, assets, condition or
        results of operation of Company (a "Company Material Adverse Effect");

          

        b. Copies of the Articles of Incorporation and By-laws of Company, with all amendments thereto to the date hereof, have been furnished to all other parties to this Agreement, and such copies are accurate and complete as of the date hereof. The minute books of Company are current as required by law, contain the
        minutes of all meetings of the Board of Directors and shareholders of Company from its date of incorporation to the date of this Agreement, and adequately reflect all material actions taken by the Board of Directors and shareholders of Company.

         

         

        Section 2.2 Subsidiaries and Equity Investments.
        Company has no subsidiaries or equity interest in any corporation, partnership or joint venture.

        

        Section 2.3 Authorization and Validity of
        Agreements. Company has all corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby and upon the execution and delivery by other parties and the performance of their obligations herein, will constitute, a legal, valid and binding obligation of Company. The execution and delivery of this Agreement
        by Company and the consummation by Company of the transactions contemplated hereby have been duly authorized by all necessary corporate action of Company, and no other corporate proceedings on the part of Company are necessary to authorize this Agreement or to consummate the transactions contemplated hereby.

        

        Section 2.4 
        No Conflict or Violation. The execution, delivery and performance of this Agreement by Company do not and will not violate or conflict with any provision of its Articles of Incorporation or By-laws, and does not and will not violate any provision of law, or any order, judgment or decree of any court or other
        governmental or regulatory authority, nor violate or result in a breach of or constitute (with due notice or lapse of time or both) a default under, or give to any other entity any right of termination, amendment, acceleration or cancellation of, any contract, lease, loan agreement, mortgage, security agreement, trust indenture or other agreement or instrument to which Company is a party or by which it is bound or to which any of their respective properties or assets is subject, nor
        will it result in the creation or imposition of any lien, charge or encumbrance of any kind whatsoever upon any of the properties or assets of Company, nor will it result in the cancellation, modification, revocation or suspension of any of the licenses, franchises, permits to which Company is bound.

        

        Section 2.6 Consents and Approvals. No consent,
        waiver, authorization or approval of any governmental or regulatory authority, domestic or foreign, or of any other person, firm or corporation, is required in connection with the execution and delivery of this Agreement by Company or the performance by Company of its obligations hereunder.

         

        Section 2.7 Absence of Certain Changes or Events.
        Since its inception:

        

        a.   As of the date of this Agreement, Company does not know or have reason to know of any event, condition, circumstance or prospective
        development which threatens or may threaten to have a material adverse effect on the assets, properties, operations, prospects, net income or financial condition of Company;

         

        b.  there has not been any declaration, setting aside or payment of dividends or distributions with respect to shares of capital stock of Company; and

        
            

        

         

        c.  there has not been an increase in the compensation payable or to become payable to any director or officer of Company.

          

        Section 2.8 Litigation. There is no action, suit,
        proceeding or investigation pending or threatened against the Company or any subsidiary that may affect the validity of this Agreement or the right of Company to enter into this Agreement or to consummate the transactions contemplated hereby.

        

        Section 2.9 Survival. Each of the representations
        and warranties set forth in this Article II shall be deemed represented and made by Company at the Closing as if made at such time and shall survive the Closing for a period terminating on the second anniversary of the date of this Agreement.

         

        

        ARTICLE III

        

        REPRESENTATIONS AND WARRANTIES OF GENERAL RED BVI AND XINGPING HOU

        

        General Red BVI, Xingping Hou and General Fruits, severally, represent, warrant and agree as follows:

        

        Section 3.1 Corporate Organization.

        

        a. General Red BVI is duly organized, validly existing and in good standing under the laws of the British Virgin Islands and has all requisite
        corporate power and authority to own its properties and assets and to conduct its business as now conducted and is duly qualified to do business, is in good standing in each jurisdiction wherein the nature of the business conducted by General Red BVI or the ownership or leasing of its properties makes such qualification and being in good standing necessary, except where the failure to be so qualified and in good standing will not have a material adverse effect on the business,
        operations, properties, assets, condition or results of operation of General Red BVI (a “General Red BVI Material Adverse Effect”).

        

        b. Copies of the Certificate of Incorporation and By-laws of General Red BVI with all amendments thereto to the date hereof, have been
        furnished to Company, and such copies are accurate and complete as of the date hereof. The minute books of General Red BVI are current as required by law, contain the minutes of all meetings of the Board of Directors and shareholders of General Red BVI, and adequately reflect all material actions taken by the Board of Directors, shareholders of General Red BVI.

         

         

        Section 3.2 Authorization and Validity of
        Agreements. General Red BVI has all corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement by General Red BVI and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action and no other
        corporate proceedings on the part of General Red BVI are necessary to authorize this Agreement or to consummate the transactions contemplated hereby. Xingping Hou has approved this Agreement on behalf of General Red BVI and no other stockholder approvals are required to consummate the transactions contemplated hereby. Xingping Hou is competent to execute this Agreement, and has the power to execute and perform this Agreement. No other proceedings on the part of General Red BVI or
        Xingping Hou are necessary to authorize this Agreement or to consummate the transactions contemplated hereby.

        

        Section 3.3 No Conflict or Violation. The
        execution, delivery and performance of this Agreement by General Red BVI or Xingping Hou does not and will not violate or conflict with any provision of the constituent documents of General Red BVI, and does not and will not violate any provision of law, or any order, judgment or decree of any court or other governmental or regulatory authority, nor violate, result in a breach of or constitute (with due notice or lapse of time or both) a default under or give to any other entity any
        right of termination, amendment, acceleration or cancellation of any contract, lease, loan agreement, mortgage, security agreement, trust indenture or other agreement or instrument to which General Red BVI or Xingping Hou is a party or by which it is bound or to which any of its respective properties or assets is subject, nor result in the creation or imposition of any lien, charge or encumbrance of any kind whatsoever upon any of the properties or assets of General Red BVI or Xingping
        Hou, nor result in the cancellation, modification, revocation or suspension of any of the licenses, franchises, permits to which General Red BVI or Xingping Hou is bound.

        
            

        

         

        Section 3.4 Investment Representations. (a) The
        Company Shares will be acquired hereunder solely for the account of the Xingping Hou and General Fruits, for investment. Xingping Hou and General Fruits had full access to all the information such shareholder considers necessary or appropriate to make an informed investment decision with respect to the Company Shares to be acquired under this Agreement. Xingping Hou and General Fruits had had an opportunity to ask questions and receive answers from Company’s directors regarding
        Company and to obtain additional information (to the extent Company’s directors possessed such information or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to such shareholder or to which such shareholder had access. Xingping Hou and General Fruits had been at the time of the offer and execution of this Agreement, either domiciled and resident outside the United States (a
        “Non-U.S. Shareholder”) and or been an “accredited investor” (as such term is defined in Rule 501(a) of Regulation D promulgated by the Securities and Exchange Commission under the Securities Act).

        

        Section 3.5 Disclosure. This Agreement, the
        schedules hereto and any certificate attached hereto or delivered in accordance with the terms hereby by or on behalf of General Red BVI or the Xingping Hou in connection with the transactions contemplated by this Agreement, when taken together, do not contain any untrue statement of a material fact or omit any material fact necessary in order to make the statements contained herein and/or therein not misleading.

         

        Section 3.6 Survival. Each of the representations
        and warranties set forth in this Article III shall be deemed represented and made by General Red BVI, Xingping Hou and General Fruits at the Closing as if made at such time and shall survive the Closing for a period terminating on the second anniversary of the date of this Agreement.

        

        ARTICLE IV

        

        MISCELLANEOUS PROVISIONS

        

        Section 4.1 Survival of Provisions. The
        respective representations, warranties, covenants and agreements of each of the parties to this Agreement (except covenants and agreements which are expressly required to be performed and are performed in full on or before the Closing Date) shall survive the Closing Date and the consummation of the transactions contemplated by this Agreement. In the event of a breach of any of such representations, warranties or covenants, the party to whom such representations, warranties or covenants
        have been made shall have all rights and remedies for such breach available to it under the provisions of this Agreement or otherwise, whether at law or in equity, regardless of any disclosure to, or investigation made by or on behalf of such party on or before the Closing Date.

        

        Section 4.2 Publicity. No party shall cause the
        publication of any press release or other announcement with respect to this Agreement or the transactions contemplated hereby without the consent of the other parties, unless a press release or announcement is required by law. If any such announcement or other disclosure is required by law, the disclosing party agrees to give the non-disclosing parties prior notice and an opportunity to comment on the proposed disclosure.

        

        Section 4.3 Successors and Assigns. This
        Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors and assigns; provided, however, that no party shall assign or delegate any of the obligations created under this Agreement without the prior written consent of the other parties.

        

        Section 4.4 Fees and Expenses. Except as
        otherwise expressly provided in this Agreement, all legal and other fees, costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such fees, costs or expenses.

        
            

        

        Section 4.5     Methods of Termination. This Agreement may be terminated and the transactions contemplated hereby may be abandoned at any time before the Closing by the mutual written consent of
        General Red BVI, Xingping Hou, General Fruits and Company;

        

        Section 4.6 Notices. All notices and other
        communications given or made pursuant hereto shall be in writing and shall be deemed to have been given or made if in writing and delivered personally or sent by registered or certified mail (postage prepaid, return receipt requested) to the parties or to such other persons or at such other addresses as shall be furnished by any party by like notice to the others, and such notice or communication shall be deemed to have been given or made as of the date so delivered or
        mailed.

        

        Section 4.7 Entire Agreement. This Agreement,
        together with the exhibits hereto, represents the entire agreement and understanding of the parties with reference to the transactions set forth herein and no representations or warranties have been made in connection with this Agreement other than those expressly set forth herein or in the exhibits, certificates and other documents delivered in accordance herewith. This Agreement supersedes all prior negotiations, discussions, correspondence, communications, understandings and
        agreements between the parties relating to the subject matter of this Agreement and all prior drafts of this Agreement, all of which are merged into this Agreement. No prior drafts of this Agreement and no words or phrases from any such prior drafts shall be admissible into evidence in any action or suit involving this Agreement.

        

        Section 4.8 Severability. This Agreement shall be
        deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible so as to be valid and
        enforceable.

        

        Section 4.9 Titles and Headings. The Article and
        Section headings contained in this Agreement are solely for convenience of reference and shall not affect the meaning or interpretation of this Agreement or of any term or provision hereof.

        

        Section 4.10 Counterparts. This Agreement may be
        executed in two or more counterparts, each of which shall be deemed an original and all of which together shall be considered one and the same agreement.

        

        Section 4.11 Convenience of Forum; Consent to
        Jurisdiction. The parties to this Agreement, acting for themselves and for their respective successors and assigns, without regard to domicile, citizenship or residence, hereby expressly and irrevocably elect as the sole judicial forum for the adjudication of any matters arising under or in connection with this Agreement, and consent and subject themselves to the jurisdiction of, the courts of the
        State of New York located in County of New York, and/or the United States District Court for the Southern District of New York, in respect of any matter arising under this Agreement. Service of process, notices and demands of such courts may be made upon any party to this Agreement by personal service at any place where it may be found or giving notice to such party.

        

        Section 4.12 Enforcement of the Agreement. The
        parties hereto agree that irreparable damage would occur if any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereto, this being in addition to any other remedy to which they are entitled at law or in equity.

        

        Section 4.13 Governing Law. This Agreement shall
        be governed by and interpreted and enforced in accordance with the laws of the State of New York without giving effect to the choice of law provisions thereof.

        

        Section 4.14 Amendments and Waivers.
        No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by all of the parties hereto. No waiver by any party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any
        way any rights arising by virtue of any prior or subsequent such occurrence.

        
            

        

        

         

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

         

        COMPANY

         

        By: /s/   Xingping Hou

             Xingping Hou

        

        President, Chairman of the Board

         

        

        GENERAL RED BVI:

         

         

        By: /s/   Xingping Hou

             Xingping Hou

         

        Director

         

        

        XINGPING HOU

         

        

        By: /s/   Xingping Hou

             Xingping Hou

         

        

        GENERAL FRUITS

         

        

        By: /s/  Xingguo General Fruits Development Company, Ltd.

             Xingguo General Fruits Development Company, Ltd.

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