Document:

Yayi International Inc.: Exhibit 10.4 - Filed by newsfilecorp.com

Exhibit 10.4

English Translation of 

Agreement on GMP Cleaning Workshop Installation 

Signing Date: May 26, 2010 

Project Location: Silver Sea Road, Tianjin Jinghai Development Area

Tender: Tianjin Yayi Industrial Co., Ltd.(hereinafter referred to as Party A)

Address: No.9 Xingguang Road,Northen Industrial Park of Zhongbei Town, Xiqing District, Tianjin

Contractors: Tianjin Jinquan Co., Ltd. Tianjin Development Zone(hereinafter referred to as Party B)

Address: No.  109 Tianjin Unicom Building,
Tianjin Economic and Technological Development Zone

The Parties have achieved mutual understanding through friendly negotiations in accordance with PRC Contract Law and other laws and regulations, regarding the following issues concerning the installation of equipment by Party B:

I. 

Project overview 

Cooperate with the equipment installation company to complete GMP cleaning construction for the site after the installation of central air-conditioning system and manufacturing equipment are completed, and obtain the GMP certification. 

Project Location: Silver Sea Road, Tianjin Jinghai Development Area

Project Cost: ¥ 3,000,000 ; (RMB Three Million) 

Commencement Date: June 15, 2010 

Completion date: November 30, 2010 

Payment: 2 

(1)
Cash (2) Check for transfer 

II. 

Party A shall examine and designate unloading location, which shall be safety
guaranteed, for the construction materials at the entry of such materials
provided by Party B. The safety of such materials shall be undertaken by both
Parties. After the installation and trial by Party B, Party A shall sign and
accept the installation with field examination. 

III. 

The installation, Trial and Acceptance: 

1. Party B is responsible for the acceptance by GMP. 

Both parties agreed that: 

(1)  

The engineering and construction personnel of Party B shall arrive at the
construction site and commence construction prior to June 15, 2010.  

	
 	
(2) 		
The prophase covert construction shall be completed and accepted prior to October 1, 2010;

	
	 	 	 
	
 	
(3) 		
The installation and trial run shall be completed prior to November 1, 2010; the full central air-conditioning project
should be completed and accepted at the same time of the completion of innovation. All required materials should be ready on the time agreed by the both parties. 

	

2. The quality standard of such installation shall be in conformity with state and industry requirements, and the installation construction specifications provided by Party B and the supplier. Party B shall notify Party A of the acceptance at the
day of construction completion, and Party A shall arrange for the examination of the construction within in three (3) days after the notification. The representatives of the Parties shall sign the acceptance certificates should the quality and
content of the construction is confirmed as in conformity with the construction requirements. Party B shall provide the quality certificate of the products, quality certificate of the materials, certificate of guaranteed-repair of the products,
routine operation
specifications and malfunction consultation services. The installation shall be in conformity with the installation and type selection schemes proposed by Party B and approved by Party A. Under the circumstance that amendments to the aforesaid
schemes is required, the Parties shall negotiate, and shall sign supplementary documents upon such issue should alteration of type is required. 

IV.

Price and settlement period:

	
1. 		
The contract price shall be paid in the way agreed by the both parties.

	
	 	 
	
2. 		
Payment

	

(1) Within 7 days after signing the agreement, Party A shall pay Party B RMB 1.5 million (RMB One Million and Five Hundred Thousand)  as the first phase project payment, which accounts for 50% of the total contract value.  

(2) After Party B’s materials arrive at the site and are accepted by Party A upon signature, within three (3) days Party A
shall pay Party B RMB 1.05 million (RMB One Million and Fifty Thousand)  as the second phase project payment, which accounts for 35% of the total contract value. 

(3) Party A shall pay Party B the project balance due RMB 450,000 (RMB Four Hundred and Fifty Thousand) within three (3) days after the trial and acceptance of the Project. Party B duly possesses any and all legal entitlements regarding the
materials and/or the air-conditioner products before Party A has duly paid all the fees. 

V. Liability for breach of contract 

1   

Responsibilities of Party B: 

	
1) 		
The representative Chen Yuanxing of Party B at the construction site shall be responsible for the work at the site.

	
	 	 
	
2) 		
Unless otherwise provided and/or prior approved by Party A with written consent, under the circumstance that Party
B fails to duly complete the work in accordance with this Agreement, Party B shall pay Party A the default of 1‰ of the total fee, while the amount of which shall not exceed 20% of the total construction fee. Under the circumstance that Party B
fails to complete the construction within the time limit, Party A is entitled to terminate this Agreement, and Party B shall be liable for any damage of Party A thereof. 

	
	
 	
 
	
3) 		
Under the circumstance that Party B unjustly delay the installation, Party B
shall pay 1‰ of the total fee, unless such delay is caused due to Party A’s
fault.
	
	
 	
 
	
4) 		
Party B is liable for any damage due to the inconsistency of quality.
	

	
    	
	
	
2. 		
Responsibilities of Party A

	
		
	
1. 		
The representative Hu Haoyong of Party A at the construction site shall be responsible for the work at the site.

	
		
	
2. 		
Party A shall create conditions for the entry and construction by Party B, which includes vacating the sites and providing
the hydropower facilities, within 7 days prior to the commencement of construction; 

	
	
    	
	
	
3.	
Party A shall supply Party B with confirmed design drawings and installation
construction list within 15 days prior to the commencement of construction.
	
	
    	
	
	
4.	
Under the circumstance that Party A terminates the Project halfway, Party A
shall pay Party B 50% of the total fee as default.
	
    	
	
	
5.	
Under the circumstance that Party A fails to pay the construction fee in accordance with relative terms under this Agreement, Party A shall pay 1‰ of the total fee to Party B as default for each day of delay, while the amount of which shall
not exceed 20% of the total construction fee. Under the circumstance that Party A fails to pay the relative fee within such time limit, Party B is entitled to terminate this Agreement, and Party A shall be liable for any damage of Party B thereof.
	
	
    	
	
	
6.	
Party A shall notify Party B regarding any change of the type of installation,
and shall be liable for any cost, such as repeated transportation, storage,
price differences, material lost and etc., thereof.
	
	
    	
	
	
7.	
The construction period of the Project may extend with the Parties’ consent and confirmation under the circumstance that the Project is delayed due to any of the following reasons:
	

 

	
 	
 	
 
	
 	
(1) 		
change of construction quantity and/or of design;

	
	 	 	 
	
 	
(2) 		
force majeure;

	
	 	 	 
	
 	
(3) 		
shutdown caused by the delayed payment and/or stage acceptance by Party A; and/or

	
	 	 	 
	
 	
(4) 		
other circumstances under which the extension of construction period is approved by Party A.

	
	 	 	 
	 		
 

	

VI. 

Product Quality Liability and After Service Items

1. The warranty period of the Project is One (1) year from the date of acceptance.Under
the circumstance that any repair is required due to product quality within the
warranty period, Party B shall only require basic maintenance fee for the
relative repair. Party B is entitled to the cost of replacing spare-part at the
factory price should replacement of spare-part is required. 

2. Party B shall provide lifelong compensable maintenance services for the user
of air-conditioner after the expiry of the warranty period. The content and
method of such services shall be stipulated under the specific willingly-entered
agreements between the user and Party B. 

	
VII. 		
Any incapacity of executing this Agreement due to force majeure is subject to the negotiation of the Parties.

	
	 	 
	
VIII. 		
Dispute Resolution: Any disputes concerning the execution of this Agreement shall be negotiated by the Parties. Under
the circumstance that the Parties fail to achieve mutual understandings in relation to such disputes, any Party is entitled to bring civil actions toward the people’s court of the plaintiff’s residency. 

	

	
IX. 		
This Agreement came into force on the date of signing.

	
	 	 
	
X. 		
Any design plan of the Project submitted by Party B and approved by Party A, specification of invoices and/or other
documents shall be regarded as appendixes to this Agreement. 

	

XI. 

Any outstanding issue which has not been stipulated under this Agreement shall
be subject to the negotiation of the Parties for supplementary. Any such
supplementary shall be regarded as with the same validity of any other part of
this Agreement. 

	
XII. 		
The originals of this Agreement is provided in quadruplicates, with each Party holds two originals.

	
	 	 
	
XIII. 		
Any appendix thereof shall be regarded part of this Agreement, and with the same validity as any other part of this
Agreement.

	

Tender: Tianjin Yayi Industrial Co., Ltd.(Corporate Seal) 

Contractors: Tianjin Jinquan Co., Ltd. Tianjin Development Zone(Corporate Seal)

 

Date: May 26, 2010China Packaging Group, Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

Exhibit 10.1

AMENDMENT NUMBER 1 TO SECURITIES PURCHASE AGREEMENT

 THIS AMENDMENT NUMBER 1 TO SECURITIES PURCHASE AGREEMENT, dated as of August 13, 2010 (this “Amendment”), is entered into by and among China Packaging Group, Inc., a Nevada corporation (collectively with its predecessors, the
“Company”), the Investors and Nengbin Fang. Capitalized terms used herein but not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement (as defined below). 

BACKGROUND 

 The Company and the Investors are parties to that certain Securities Purchase Agreement, dated as of April 29, 2010 (the “Securities Purchase Agreement”). Following the closing of the transactions contemplated by the Securities
Purchase Agreement, the Investors and the Company identified a mutual mistake relating to Section 4.15 of the Securities Purchase Agreement.  Section 4.15 is a negative claw back provision that, as drafted, requires the Company to issue additional
shares to the Investors upon the occurrence of a specified trigger event. The mutual mistake of the Company and the Investors is that both parties intended that the Company’s Chairman, Nengbin Fang, transfer shares of his that are already
outstanding to the Investors on a pro rata basis if the triggering event occurs instead of requiring the Company to issue shares to the Investors in such event.  The parties desire to modify the Securities Purchase Agreement to correct this mutual
mistake.

Section 6.4 of the Securities Purchase Agreement provides that no provisions of the Securities Purchase Agreement may be waived or amended except in a written instrument signed by the Company and the Requisite Holders.
This Amendment constitutes a written agreement signed by the necessary parties in order to effectuate the amendments to the Securities Purchase Agreement specified below.

AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements set forth herein, the parties hereto agree as follows: 

Section 1. Section 4.15 is amended in its entirety to read as follows: 

 4.15 Negative Claw Back. 

(a) If in connection with any financing transactions in which the Company sells Common Stock or Common Stock Equivalents, including, without limitation the Next Underwritten Public Offering (an “Equity
Financing”), the gross sales price per share of common stock (or Common Stock Equivalent) sold in the Equity Financing (the “Financing Price Per Share”) is less than $6.86 (as appropriately adjusted for any stock split,
stock combination, recapitalization or similar transaction) (the “Trigger Price”), then the founder and Chairman of the Company, Nengbin Fang
(“Mr. Fang”), shall be obligated to transfer to the Investors on a pro rata basis, for no additional consideration, that number of shares of Common Stock as is equal to 

$5,000,000/(Financing Price Per Share/2) – (1,456,311 + any shares already issued to the Investors prior to the current Equity Financing pursuant to this Section 4.15) 

1 

The following hypothetical calculation is prepared as an illustration of this formula:

On the date hereof, the Investors own 1,456,311 Shares in the aggregate. Assume that the Company completes an Equity Financing at a price of $6.00. Assume that no adjustment to the Trigger Price was required as a
result of a stock split, stock combination, recapitalization or similar transaction. Based upon the foregoing assumptions, the Financing Price Per Share would be $6.00 and the number of additional shares the Investors, in the aggregate, would be
entitled to under this Section 4.15 is calculated as follows:

Applicable Formula 

$5,000,000/(Financing Price Per Share/2) – 1,456,311 

Calculation Based Upon Hypothetical Example 

$5,000,000/($6.00/2) – 1,456,311 = 210,355.67

Therefore, based upon the foregoing hypothetical example, Mr. Fang would transfer 210,355.67 of his shares to the Investors in the aggregate. The shares would be transferred to the investors on a pro rata basis based on
their respective Investment Amounts. 

(b) If the Financing Price Per Share is less than the Trigger Price, then on or before the second Business Day following the Equity Financing, the Company shall give to the Investors a notice (the “Financing
Notice”), setting forth the Financing Price Per Share, a statement as to the adjustment to be made pursuant to this Section 4.15 and the number of shares of Common Stock to be delivered to the Investors by Mr, Fang. Mr. Fang shall deliver to
the Investors a certificate evidencing the appropriate number of shares of Common Stock deliverable to the Investors as a result of this Section 4.15 within five Business Days following the Equity Financing. 

(c) The rights of the Investors under this Section 4.15 shall automatically terminate upon the occurrence of the Closing of the Company's next underwritten public offering with gross proceeds to the Company greater than
$30 million.  

 2 

Section 2. Mr. Fang agrees
that promptly following the execution and delivery of this Amendment he will
enter into an escrow agreement with the Investors and an escrow agent that is
mutually agreeable to Mr. Fang and the Investors. Pursuant to such escrow
agreement, Mr. Fang shall deposit the maximum number of shares of the Company's
common stock deliverable to the Investors pursuant to Section 4.15 for the
duration of the covenant contained in Section 4.15. 

Section 3. Except as amended hereby, the Securities Purchase Agreement
shall remain in full force and effect.

Section 4. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

[SIGNATURE PAGE FOLLOWS] 

 3 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized signatories as of the date first indicated above. 

COMPANY: 

CHINA PACKAGING GROUP, INC.

By:/s/ Daliang Teng 

Name: Daliang Teng 

Title: Chief Executive Officer 

 

REQUISITE HOLDERS: 

ENVISION CAPITAL PARTNERS, L.P.

 

By:/s/ Gang Wang 

Name: Gang Wang 

Title: Managing Partner 

NENGBIN FANG 

(For purposes of this Amendment and Section 4.15 of the Securities Purchase Agreement only) 

/s/ Nengbin Fang 

 

Signature Page to the Amendment to Securities Purchase Agreement

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