Document:

ex10x1.htm

Exhibit 10.1

 

 

SEPARATION AGREEMENT AND GENERAL RELEASE

 

 

This Separation Agreement and General Release (the “Agreement”) is made as of September 18, 2012 (the “Effective Date”), by and between China XD Plastics Company Limited, a Nevada corporation having its principal place of business at No. 9 Dalian North Road, Haping Road Centralized Industrial Park, Harbin Development Zone, Heilongjiang Province, PRC 150060 (the “Company”), and Robert L. Brisotti, an individual, whose address is 60 East 96th Street, Apt 9A, New York, NY 10128 (the “Director”. The Company and the Director individually referred to as a “Party” and collectively as “Parties”).

WHEREAS, the Company and the Director entered into a Service Agreement (the “Service Agreement”) on October 4, 2010 to secure the Director’s services as an independent director at the Board of Directors of the Company (the “Board”); and

WHEREAS, the Director will resign as an independent director from the Board on October 4, 2012 (the “Resignation Date”) and the Company will accept his resignation.

NOW THEREFORE, the Company and the Director, having reviewed this Agreement, agree as follows:

	
1.

	
Resignation and Services.

1.1           Resignation.

The Director hereby voluntarily resigns from the Company and such resignation shall be effective on Resignation Date. The Director shall execute and deliver to the Company, on this date, a resignation letter substantially in the form attached hereto as Annex I.

1.2           Services from Effective Date to Resignation Date.

The Director acknowledges and agrees that from the Effective Date to the Resignation Date, he shall:

	
  

	
(a)

	
Perform his duties and obligations as an independent director, the chairperson of the compensation committee, a member of the audit committee and a member of the nominating committee at the Board in a professional manner and with great care and skill of a good independent director; and

	
  

	
(b)

	
Not negotiate, conclude or execute any transaction on behalf of the Company unless prior written consent is obtained from the Company.

	
2.

	
Severance payment.

2.1           Service fee and reimbursement.

The Company shall continue to pay the monthly compensation of US$5,000 as set forth in Section 2.1 of the Service Agreement to the Director until the Resignation Date, and the Company shall continue to pay or reimburse the Director for all reasonable expenses actually or properly incurred or paid by him in connection with the performance of his services as an independent director until the Resignation Date pursuant to Section 2.2 of the Service Agreement.

 

 

  

  

  

2.2           Stock Issuance.

The Company shall issue to the Director and the Director is entitled to obtain an annual retainer consisting of US$50,000 restricted shares of common stock for his services rendered to the Company as the chairperson of the compensation committee until the Resignation Date.

2.3           Director Insurance.

The Director shall continue to be entitled to Director insurance coverage from the Effective Date to the Resignation Date.

2.4           Payment Date.

The foregoing payment, reimbursement and stock issuance will be made as soon as administratively practical in conformity with the Company’s internal policy and practices.

	
3.

	
Release of Claims.

The Company and the Director agree to release each other from each and every claim, cause of action, right, liability or demand of any kind, and from any claims which may be derived there from; other than (i) claims that may arise under this Agreement, (ii) as a result of disputes with third-parties, or (iii) in connection with circumstances which occurs during the Director’s service period for which the Company has an indemnification obligation under its by-laws, and/or any indemnification agreement covering the Director  (collectively referred to as “Claims”). With the foregoing exceptions, this release encompasses known and/or unknown claims that the Director has and/or has against the Company at the time the Director executes this Agreement, including but not limited to any and all claims:

	
  

	
(a) arising from the Director’s services, pay, stock issuance, and other terms and conditions of services to the Company;

	
  

	
(b) relating to the termination of the Director’s services rendered to the Company or the surrounding circumstances thereof;

	
  

	
(c) based on any contract, tort, whistleblower, personal injury, or wrongful discharge theory; and

(d) any claims arising out of or related to any law or regulation, including, without limitation, the laws of United States and any and all other jurisdictions, domestic and foreign.

 

 

  

  

  

	
4.

	
Promise Not to Sue.

Each party agrees not to voluntarily assist any individual or entity in connection with any administrative charges, investigations, actions, lawsuits, or remedies which may be filed against the other party unless required by law or judicial proceeding. As of the date of this Agreement, neither party has filed any charge, complaint, or lawsuit over any claim(s) referred to in this Agreement. Each party agrees not to file any other lawsuit at any time over any claims released in this Agreement.

	
5.

	
Confidential Information.

The Director acknowledges that in the course of his work with the Company, he has had access to and obtained knowledge of trade secret and/or other confidential information.  The Director recognizes and acknowledges that the trade secret and other confidential information constitutes valuable, special and unique assets of the Company and its direct and indirect subsidiaries, affiliates and parent companies.  Further, the trade secret and other confidential information of customers, suppliers and others that have been provided to the Company and its direct and indirect subsidiaries, affiliates and parent companies confidence constitute valuable, special and unique assets of customer, suppliers and others that Company and its direct and indirect subsidiaries, affiliates and parent companies and the Director may be required to protect.  The trade secret and other confidential information of the Company, its direct and indirect subsidiaries, affiliates and parent companies, customers, suppliers, and others is protected by both law and this Agreement and use or disclosure thereof contrary to the law or the terms of this Agreement could cause substantial loss of competitive advantage and other serious injury to the Company and its direct and indirect subsidiaries, affiliates and parent companies and/or impose significant liabilities on the Company and its direct and indirect subsidiaries, affiliates and parent companies.

	
6.

	
Non-solicitation.

The Director agrees for a period of twenty-four (24) months following the Resignation Date not to, either directly or indirectly, separately or in association with others, interfere with, impair, disrupt or damage the Company’s business by soliciting, encouraging or attempting to hire any person who is or has been within the twenty-four (24) months immediately preceding the date of this Agreement an offer or employee of the Company, or cause or attempt to cause, directly or indirectly, separately or in association with others, any client, customer or supplier of the Company or a related company to terminate or reduce its business with the Company or a related company.

	
7.

	
Mutual Disparagement.

The Director represents that he will not, in any way, disparage the Company, any of its direct and indirect subsidiaries, affiliates and parent companies, or any of their respective directors, officers, managers, agents, employees, attorneys, representatives, successors and assigns, or make or solicit any comments, statements or the like to the media or to others that would reasonably be considered to be derogatory or detrimental to the good name or business reputation of any of the aforementioned persons or entities.  The Company represents that it will not, in any way, disparage the Director or make or solicit any comments, statements or the like to the media that may be considered to be derogatory or detrimental with respect to the Director and will encourage employees to not make statements that may be considered derogatory or detrimental with respect to the Director.

 

  

  

  

 

	
8.

	
Indemnification.

 

 

	
  

	
The Company hereby agrees that the Director will be indemnified for any cost, loss or damages with respect to all actions brought against him after the execution of this Agreement relating to or arising out of the business and affairs of the Company while he was engaged by the Company as a director of the Board.

 

 

	 	
Nothing in this Agreement shall be construed to limit the Director’s right to indemnification pursuant to Nevada law or the Company’s bylaws arising from actions taken in the scope of his engagement with the Company as a director of the Board.

 

	
9.

	
Confidentiality of Agreement. 

The Director hereby agrees and covenants to keep the nature and terms of this Agreement, the information contained in it and the negotiations leading thereto confidential and not to disclose the same in any manner whatsoever, whether orally or in writing, whether directly or indirectly, to any other person or entity except for disclosure to his attorney, his accountant, his financial advisor or his spouse or domestic partner, or unless otherwise required by law. The Director hereby represents that neither him nor anyone acting on his behalf has previously done so. Nothing in this paragraph is intended to prohibit or restrict the Director from providing truthful information about his services or the Company’s business practices to any governmental or regulatory or self-regulatory agency. Similarly, nothing in this paragraph is intended to prohibit or restrict the Director from disclosing the terms and the underlying facts upon inquiry by the Financial Industry Regulatory Authority, Inc. (the “FINRA”), the NASDAQ OMX Group, Inc. (the “NASDAQ”), or other securities regulators or from responding to any court order or subpoena, or to a request for information from or to cooperate with any governmental or regulatory agency.

	
10.

	
Return of Company Property.

The Director agrees to return to the Company by the Resignation Date all correspondence, lists, notes, proposals, records, reports, drafts, documents, specifications, equipment or reproductions of any aforementioned items belonging to the Company, including without limitation the computer provided by the Company (including the password to any encrypted files), files, electronic documents and database saved on his computer (either on the network or locally (personal hard drive) or on a mobile device (including but not limited to USB keys and CD-ROMs or alike), bank passbooks, all corporate seals, company credit cards and password to online banking (as applicable) and bank cards and any other passwords.  The Director agrees that by the same date as noted above, he shall also return all access cards and keys to the Company’s offices, factory buildings and other property.

 

 

  

  

  

	
11.

	
Entire Agreement.

The Director acknowledges that this Agreement constitutes the entire agreement between the Company and the Director regarding the ending of the Director’s services to the Company as an Independent Director at the Board. No oral or written representations or promises have been made to the Director, or anyone acting on the Director’s behalf, that are not embodied in this Agreement. No modification of this Agreement shall be valid or binding, unless executed in writing by both the Company and the Director.

	
12.

	
Further Assurances.

Each  party shall execute such documents and perform such further acts (including, without limitation, obtaining any consents, exemptions, authorizations, or other actions by, or giving any notices to, or making any filings with, any governmental authority , to the extent necessary) as may be reasonably required or desirable to carry out or to perform the provisions of this Agreement.

	
13.

	
Severability.

Should any provision of this Agreement be found to be invalid or unenforceable, that provision shall be considered severable and the remaining provisions shall remain in effect.

	
14.

	
Governing Law.

This Agreement shall be governed by and construed in accordance with the law of the State of New York without regard to choice of law principles.

	
15.

	
Full and Knowing Waiver.

By signing this Agreement, the Director certifies that:

	
  

	
(i)

	
The Director has carefully read and fully understand the provisions of this Agreement; and

	
  

	
(ii)

	
The Director agrees to its terms knowingly, voluntarily and without intimidation, coercion or pressure.

	
16.

	
Understanding All Terms.

The Director acknowledges and agrees that he has signed this Agreement voluntarily, and with full knowledge of its consequences. In addition, the Director acknowledges and agrees as follows:

 

 

  

  

  

	
  

	
(a) This Agreement has been written in a manner that is calculated to be understood, and is understood by the Director;

	
  

	
(b) The Company hereby advises the Director to consult with an attorney prior to signing this Agreement;

	
  

	
(c) The Company is giving the Director a period of seven (7) days to consider this Agreement. The Director may accept and sign this Agreement before the expiration of the 7-day period; however, the Director is not required to do so. If the Director signs this Agreement before the expiration of the 7-day period, the Director agrees that the Director is knowing and expressly waiving the time-period.

 [remainder of page intentionally left blank; signature pages follow]

 

 

 

 

 

  

  

  

 

In WITNESS WHEREOF, the Company and the Director have executed this Agreement as of the day and year first above written.

	 	 	 	
China XD Plastics Company Limited

 

	 
	
/s/ Robert Brisotti  

	 	 	
/s/ Jie Han

	 
	
Name: Robert Brisotti  

	 	 	
Name: Jie Han

	 
	
Title: Independent Director and Chairman of the Compensation Committee

	 	 	
Title: Chief Executive Officer and Chairman

	 

 

 

 

 

 

 

  

  

  

 

ANNEX I

LETTER OF RESIGNATION

                                                                 Date: October 4, 2012

 

The Board of Directors

China XD Plastics Company Limited (the "Company")

No. 9 Dalian North Road, Haping Road Centralized Industrial Park,

Harbin Development Zone, Heilongjiang Province, PRC 150060

To: The Board of Directors

I hereby tender my unconditional and irrevocable resignation as a director of the Company, the Chairperson of the Compensation Committee, and a member of the Audit Committee and of the Nominating Committee of the Board of Directors of the Company with effect from the date of this letter.  I confirm that I have not had any disagreements with the Company concerning its operations, policies or practices that have caused, in whole or in part, this resignation.

Signed:/s/Robert Brisottiex10x2.htm

Exhibit 10.2

 

 

CONSULTING AGREEMENT

 

This Consulting Agreement (“Agreement”) is made as of _October 4, 2012__ (“Effective Date”), by and between China XD Plastics Company Limited, a Nevada corporation having its principal place of business at No. 9 Dalian North Road, Haping Road Centralized Industrial Park, Harbin Development Zone, Heilongjiang Province, PRC 150060 (“Company”), and Robert L. Brisotti, an individual, whose address is 60 East 96th Street, Apt 9A, New York, NY 10128 (“Consultant”).

 

Company desires to have Consultant stand ready to perform consulting services for Company and Consultant desires to perform such services for Company, subject to and in accordance with the terms and conditions of this Agreement.

 

NOW, THEREFORE, the parties agree as follows:

 

1.           SERVICES.

 

1.1           Performance of Services.  Consultant will perform general business and market advisory services for the Company which shall include without limitation providing advice related to products, market positioning, customer leads, trade shows, and others as mutually agreed upon by the parties and in accordance with the terms and conditions of this Agreement (“Services”).

 

1.2           Payment.  In consideration for making himself available to provide Services to Company, Company will pay Consultant an monthly fee of US $_5,000_.   Unless otherwise agreed upon by the parties, Company will not reimburse Consultant for any expenses incurred by Consultant in connection with performing Services.

 

2.           RELATIONSHIP OF PARTIES.

 

2.1           Consultant Not an Employee.  Consultant is not an agent or employee and has no authority to bind, Company by contract or otherwise.  Consultant shall accept any directions issued by Company pertaining to the goals to be attained and the results to be achieved but shall be solely responsible for the manner and hours in which Services are performed under this Agreement.

 

2.2           Compliance with Laws and No Employee Benefits.  Consultant shall comply at Consultant’s expense with all applicable provisions of workers’ compensation laws, unemployment compensation laws, federal Social Security law, the Fair Labor Standards Act, federal, state and local income tax laws, and all other applicable federal, state and local laws, regulations and codes relating to terms and conditions of employment required to be fulfilled by employers or independent contractors.  Consultant will report as self-employment income all compensation received by Consultant pursuant to this Agreement.  Consultant will indemnify Company and hold it harmless from and against all claims, damages, losses, costs and expenses, including reasonable fees and expenses of attorneys and other professionals, relating to any obligation imposed by law on Company to pay any withholding taxes, social security, social insurance or similar items in connection with compensation received by Consultant pursuant to this Agreement.  Consultant will not be entitled to receive any vacation or illness payments or to participate in any plans, arrangements, or distributions by Company pertaining to any bonus, stock option, profit sharing, insurance or similar benefits for Company’s employees.

 

 

  

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2.3           Liability Insurance.  Consultant will be responsible for making adequate provision (through insurance or otherwise) to protect Consultant from the following and will also exculpate and hold harmless the Company from the following: (i) claims relating to work-related injury or any amounts incurred to insure against the same; (ii) claims for damages because of bodily injury, sickness, disease or death that arise out of any negligent act or omission of Consultant; and (iii) claims for damages because of injury to or destruction of tangible or intangible property, including loss of use resulting therefrom, that arise out of any negligent act or omission of Consultant.

 

3.           CONFIDENTIAL INFORMATION.    Consultant agrees to hold all Confidential Information in strict confidence, not to use it in any way, commercially or otherwise, except in performing the Services, and not to disclose it to others.  Consultant further agrees to take all action reasonably necessary to protect the confidentiality of all Confidential Information including, without limitation, implementing and enforcing procedures to minimize the possibility of unauthorized use or disclosure of Confidential Information.  For purposes of this Agreement, “Confidential Information” means and will include: (i) any information, materials or knowledge regarding Company and its business, financial condition, products, programming techniques, clients, suppliers, technology or research and development that is disclosed to Consultant or to which Consultant has access in connection with performing Services; and (ii) the existence and terms and conditions of this Agreement.  Confidential Information will not include, however, any information that is or becomes part of the public domain through no fault of Consultant or that Company regularly gives to third parties without restrictions on use or disclosure.

 

4.           WARRANTIES.

 

4.1           Competitive Activities.  During the Term of this Agreement, Consultant will not, directly or indirectly, in any individual or representative capacity, engage or participate in or provide services to any business that is competitive with the types and kinds of business being conducted by Company.

 

4.2           Pre-existing Obligations.  Consultant represents and warrants that Consultant has no pre-existing obligations or commitments and, for the Term of this Agreement, will not assume or otherwise undertake any obligations or commitments that would be in conflict or inconsistent with, or that would hinder Consultant’s performance of its obligations under this Agreement.

 

5.           TERM AND TERMINATION.

5.1           Term.  This Agreement will commence on the Effective Date and will remain in force and effect for a period of six (6) months from the date of this Agreement (“Term”).

 

 

  

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5.2           Effect of Termination.                                           Upon the expiration or termination of this Agreement for any reason, Consultant will promptly notify Company of all Confidential Information in Consultant’s possession or control and will promptly deliver all such Confidential Information to Company, at Consultant’s expense and in accordance with Company’s instructions.

 

5.3           Survival.  The provisions of Sections 2.2, 2.3, 3 this Section 5.3, and Sections 6 and 7 will survive the expiration or termination of this Agreement.

 

6.           LIMITATION OF LIABILITY.  IN NO EVENT WILL COMPANY BE LIABLE FOR ANY SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES OF ANY KIND IN CONNECTION WITH THIS AGREEMENT, EVEN IF COMPANY HAS BEEN INFORMED IN ADVANCE OF THE POSSIBILITY OF SUCH DAMAGES.

 

7.           GENERAL.

 

7.1           No Election of Remedies.  Except as expressly set forth in this Agreement, the exercise by Company of any of its remedies under this Agreement will be without prejudice to its other remedies under this Agreement or available at law or in equity.

 

7.2           Assignment.  Consultant may not assign or transfer any of Consultant’s rights or delegate any of Consultant’s obligations under this Agreement, in whole or in part, without Company’s express prior written consent.  Any attempted assignment, transfer or delegation, without such consent, will be void.  Subject to the foregoing, this Agreement will be binding upon and will inure to the benefit of the parties permitted successors and assigns.

 

7.3           Equitable Remedies.  Because the Services are personal and unique and because Consultant will have access to Confidential Information of Company, Company will have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief, without having to post a bond or other consideration, in addition to all other remedies that Company may have for a breach of this Agreement.

 

7.4           Attorneys’ Fees.  If any action is necessary to enforce the terms of this Agreement, the substantially prevailing party will be entitled to reasonable attorneys’ fees, costs and expenses in addition to any other relief to which such prevailing party may be entitled.

 

7.5           Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the State of New York, excluding that body of law pertaining to conflict of laws.

 

7.6           Severability.  If any provision of this Agreement is held invalid or unenforceable by a court of competent jurisdiction, the remaining provisions of the Agreement will remain in full force and effect, and the provision affected will be construed so as to be enforceable to the maximum extent permissible by law.

 

7.7           Notices.  All notices required or permitted under this Agreement will be in writing and delivered by confirmed facsimile transmission, by courier or overnight delivery service, or by certified mail, and in each instance will be deemed given upon receipt.  All notices will be sent to the addresses set forth above or to such other address as may be specified by either party to the other in accordance with this Section.

 

 

  

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7.8           Entire Agreement.  This Agreement constitutes the complete and exclusive understanding and agreement of the parties with respect to the subject matter hereof and supersedes all prior understandings and agreements, whether written or oral, with respect to the subject matter hereof.  Any waiver, modification or amendment of any provision of this Agreement will be effective only if in writing and signed by the parties hereto.

 

7.9           Waiver.  The waiver of any breach of any provision of this Agreement will not constitute a waiver of any subsequent breach of the same other provisions hereof.

 

7.10         Counterparts.  This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

 

IN WITNESS WHEREOF, the parties have signed this Agreement as of the Effective Date.

 

	
COMPANY:

China XD Plastics Company Limited

	
CONSULTANT:  

Robert L. Brisotti

 

	
By:  /s/Jie Han                                                                 

	
By:  /s/Robert Brisotti          

	
Title:   Chairman and CEO                                                                  

	
Name:   Robert Brisotti 

	
Name:   Jie Han

	  

 

 

 

 

  

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