Document:

EXCLUSIVE OPTION AGREEMENT

 

AMONG

 

Shaanxi Techteam
Jinong Humic Acid Products Co. Ltd.

 

AND

 

Chen Lixiang

 

AND

 

Xi’an
Hu County Yuxing Agriculture Technology Developing Ltd. 

 

 

【June
16th, 2013 】

 

    	 

    	 

    

 

 

  

EXCLUSIVE OPTION AGREEMENT

 

 

This Exclusive Option Agreement (the “Agreement)
is entered into as of【June 16th, 2013
】among the following Parties in【
Xi’an】.

 

Party A: 【Shaanxi
Techteam Jinong Humic Acid Products Co. Ltd.】

Registered Address: 【3/F
, Borough A ,Block A,

No.181, South Tai Bai Road, Xi’an
City, China 】

Legal Representative: 【610000100003655
】

 

Party B: Chen Lixiang

 

Party
C: Xi’an Hu County Yuxing Agriculture Technology Developing Ltd.

Registered Address: 【North
Xinan Village, Wei Feng Town, Hu County 】

Legal Representative: 【
Chen Lixiang 】

 

Yuxing

In this Agreement, Party A, Party B, Party
C, 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.             
Yuxing is a sole proprietorship incorporated in Hu County and with business license issued by the Hu County Administration
for Industry and Commerce;

 

3.             
As of the date of this Agreement, Party B is shareholder of Xi’an Hu County Yuxing Agriculture Technology Developing
Ltd, (hereinafter referred to as “Yuxing”) and legally hold all of the equity interest of Yuxing, of which Party
B holds 100%.

 

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

 

 Article 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 shares of Yuxing
(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

    	 

    

 

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 Yuxing, 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 shares or assets and business transfer in connection with the Option exercise so that
the shares or assets and business transfer 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 andYuxing 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
shares and remaining assets and business of Yuxing in connection with the Option exercise.

 

1.3         
Exercise Condition: Party A may immediately exercise the option of acquiring the equity interests in or remaining assets
and business of Yuxing whenever Party A considers it necessary to acquire Yuxing and it is doable in accordance with PRC laws and
regulations.

 

 Article 2                   Price of Acquisition 

 

2.1         
Party A and Party B shall enter into relevant agreements regarding the price of acquisition based on the circumstances of
the exercise of option, and the consideration shall be refunded to Party A or Yuxing at no consideration in an appropriate manner
decided by Party A.

 

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.

 

 Article 3                   Representations and Warranties

 

3.1         
Each party hereto represents to the other Parties that: (i) it has all the necessary rights, powers and authorizations to
enter into this Agreement and perform its duties and obligations hereunder; (ii) Party B, represent and guarantee that this Agreement,
the Restructuring Exercise or the Listing shall be in compliance with any and all applicable PRC laws and shall indemnify, defend
and hold harmless Party A, Party B and Yuxing for all fines, penalties, damages or claims sustained by Party A or Party B, or Yuxing’s
violation of this section; and (iii) 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.

 

    	2

    	 

    

 

 

 

3.2               
Party B and Yuxing hereto represent to Party A that: With respect to the equity interest held by Party B in Yuxing are legally
registered shareholders of Yuxing and have paid Yuxing the full amount of their respective portions of Yuxing's registered capital
required under the PRC laws; (ii) except Pledge of Equity Agreement, signed by and between
Party B and Party A on 【 June 16th,2013】
in 【Xi’an 】,
none of Party B, has mortgaged or pledged his/her shares of Yuxing, and none of them has granted any security interest or borrow
against his/her shares of Yuxing in any form; and (iii) none of Party B, has sold or will sell to any third party its equity interests
in Yuxing.

 

Yuxing encumber such assets; and (ii) Yuxing
has not sold or will sell to any third party such assets.

 

3.3         
Yuxing hereto represents to Party A that: (i) it is a sole proprietorship duly registered and validly existing under the
PRC law; and (ii) its business operations are in compliance with applicable laws of the PRC in all material aspects.

 

 Article 4                   Covenants

 

The Parties further agree as follows:

 

4.1         
Before Party A has acquired all the equity/assets and business of Yuxing by exercising the purchase option provided
hereunder, Yuxing 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’ 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 Party A has acquired all the equity/assets/business of Yuxing by exercising the purchase option provided hereunder,
Party B shall not:

 

4.2.1 
sell, assign, mortgage or otherwise dispose of, or create any encumbrance

on, any of the equity held by them in Yuxing
except for the pledge of such shares made according to the Pledge of Equity Agreement, signed by and between Party B and Party
A on【June 16th,2013 】in
【 Xi’an】.

 

4.3         
Before Party A has acquired all the equity/assets/business of Yuxing by exercising the purchase option provided hereunder,
Party B and/or Yuxing shall not individually or collectively:

 

    	3

    	 

    

  

 

 

4.3.1 
supplement, alter or amend the articles of association of Yuxing in any

manner to the extent that such supplement,
alteration or amendment may have a material effect on Yuxing's assets, liability, operation, shareholders’ equity or other
legal rights;

 

4.3.2 
cause Yuxing to enter into any transaction to the extent such transaction

may have a material effect on Yuxing's
assets, liability, operation, shareholders’ equity or other legal rights (unless such transaction is relating to Yuxing's
daily operation or has been disclosed to and agreed upon by Party A in writing); and

 

4.4         
Non Competition:

 

When Party A exercises the Option, Party
B 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, her or 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.

 

 Article 5                   Assignment of Agreement

 

5.1         
Party B and Yuxing shall not transfer their rights and obligations under this Agreement to any third party without
the prior written consent of Party A.

 

5.2               
Party B and Yuxing 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
Yuxing by Party A, and no any further consent from Party B, and Yuxing will be required.

 

    	4

    	 

    

 

 Article 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 is 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 this Agreement even if this Agreement is invalid,
amended, revoked, terminated or unenforceable by any reason.

 

 Article 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.

 

 Article 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 in accordance with its rules. The arbitration award shall be final, conclusive
and binding upon both Parties.

 

    	5

    	 

    

  

 

 

 Article 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 without the unanimous consent of all the Parties except that Party A may, by giving
thirty days prior notice to the other Parties hereto, terminate this Agreement.

 

 Article 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

 

If any provision of this Agreement is adjudicated
to be invalid or non-enforceable according to relevant PRC laws of the PRC, such a provision shall be deemed invalid only to the
extent the PRC laws are applicable in China, and the validity, legality and enforceability of the other provisions hereof shall
not be affected or impaired in any way. The Parties shall, through consultation based on the principal of fairness, replace such
invalid, illegal or non-enforceable provision with valid provision so that any substituted provision may bring the similar economic
effects as those intended by the invalid, illegal or non-enforceable provision.

 

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.

 

    	6

    	 

    

 

 

 

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 three 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.

 

(This space intentionally
left blank)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	7

    	 

    

  

 

 

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

 

PARTY A: 【Shaanxi
Techteam Jinong Humic Acid Products Co. Ltd.】

 

(Seal)

 

 

 

Legal Representative/Authorized Representative

 

	(Signature):	 /s/ Li Tao	 

 

 

 

PARTY B: 

Chen Lixiang

 

	(Signature) :	 /s/ Chen Lixiang	 

 

 

 

PARTY
C: Xi’an Hu County Yuxing Agriculture Technology Developing Ltd.

 

(Seal)

 

 

 

Legal Representative/Authorized Representative

 

	(Signature) :	 /s/ Chen Lixiang	 

 

    	8PLEDGE OF EQUITY AGREEMENT

 

 

 

BETWEEN

 

 

CHEN LIXIANG

 

 

 

AND

 

 

 

SHAANXI TECHTEAM JINONG HUMIC ACID PRODUCTS
CO. LTD

 

 

 

 

 

June 16th 2013

 

    	 

    	 

    

  

PLEDGE OF EQUITY AGREEMENT 

 

 

This Pledge of Equity Agreement (“the
Agreement”) is executed on June 16, 2013 in Xi’an by:

 

Pledgeors (hereinafter collectively referred
to as “Party A”):

 

Xi’an Hu County
Yuxing Agriculture Technology Developing Ltd.

 

and

 

Pledgee (hereinafter referred to as “Party
B”):

 

Shaanxi Techteam
Jinong Humic Acid Products Co. Ltd.

 

Whereas,

 

1.             
Party A consists of the sole shareholder of Xi’an Hu County Yuxing Agriculture Technology Developing Ltd. (hereinafter
referred to as “Yuxing”), who legally hold all of the equity interest of Yuxing.

 

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, the registration number of its legal and valid Business License is 610000100003655,
and the legal registered address is 3/F , Borough A, Block A, No.181, South Tai Bai Road, Xi’an City, P.R.China.

 

3.             
Xi’an Hu County Yuxing Agriculture Technology Developing Ltd is an enterprise limited by shares which is 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 610125100002883 and the legal registered address is the North
Xinan Village, Wei Feng Town, Hu County, Xi’an City, P.R.China.

 

4.             
Party B intends to acquire all of the equity interests or assets of Yuxing. Prior to the completion of such acquisition,
Party B agrees to provide exclusive product supply to Yuxing. In order to protect the interests of Party B, Party A agrees to pledge
the 100% of equity interest of Yuxing they own to Party B.

 

5.             
Party B accepts the pledge of the equity interest 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.

 

    	2

    	 

    

 

 Article 1            Guaranteed Obligations

 

The equity interest 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 between Party
A and Party B:

 

(a)         
Entrusted Management Agreement, by and among Party A and Party B on June 16, 2013 in Xi’an.

(b)        
Exclusive Product Supply Agreement, by and between A and Party B on June 16, 2013 in Xi’an.

(c)         
Exclusive Option Agreement by and among Party A, and Party B on June 16, 2013 in Xi’an.; and

(d)        
Shareholders’ Voting Proxy Agreement, by and between Party A and Party B on June 16, 2013 in Xi’an.

 

 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 equity interest in Yuxing;

(b)        
100% of the registered capital (“Registered Capital”) of Yuxing;

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

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

(e)         
all voting rights and all other rights and benefits attaching to or accruing to the equity interest or the Registered Capital
of Yuxing.

 

 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 between Party A and Party
B.

 

 Article 4            Pledge Procedure and Registration 

 

Party A shall process the registration
procedures with Xi’an Administration for Industry and Commerce concerning the pledged equity interest and ensure that all
other approval(s) from or registration with relevant PRC authorities is granted or duly secured.

 

 Article 5            Transfer of Pledged Equity Interest 

 

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

 

    	3

    	 

    

 

 Article 6            Effectiveness, Modification and Termination 

 

6.1         
This Agreement shall go into effect when it is signed by the authorized representatives of the Parties with seals
affixed;

 

6.2               
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 both parties prior to any written agreement on modification or termination.

 

 Article 7            Governing 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.

 

 Article 8            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 be deemed as breach of contract and the breaching party
shall compensate the non-breaching party for the loss incurred as a result of the breach.

 

 Article 9            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 in accordance with its rules then in effect. The arbitration award shall
be final, conclusive and binding upon both parties.

 

 Article 10        Severability

 

10.1     
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.

 

10.2           
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.

 

    	4

    	 

    

 

 Article 11        Miscellaneous

 

11.1     
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.

 

11.2           
The Agreement shall be executed in two 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.

 

(This space intentionally
left blank)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	5

    	 

    

 

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

 

 

 

PARTY A: 

 

Chen Lixiang

 

	(Signature) :	 /s/ Chen Lixiang	 

 

 

 

 

 

 

 

PARTY B: 

 

Shaanxi Techteam Jinong Humic Acid Products
Co. Ltd

 

 

(Seal):

 

 

 

 

 

 

Legal Representative/Authorized Representative

 

	(Signature):	 /s/ Li Tao	 

 

    	6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}]]