Document:

Exhibit 10.02

    

    

    

    
      Supplementary Agreement to

       

      Partnership Agreement of

       

      Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.)

       

      This Supplementary Agreement (hereinafter referred to as “this Agreement”) is executed on June 15, 2020 by and between:

       

      General Partner: China Fortune-Tech Capital Co., Ltd. (hereinafter referred to as “GP”); and

       

      Limited Partners: Shanghai Sinyang Semiconductor Materials Co., Ltd, Advanced Micro-Fabrication Equipment Inc. China, Zing Semiconductor Corporation, Montage-Tech Investment
        Co., Ltd., Tianjin Zhonghuan Semiconductor Co., Ltd., Will Semiconductor Co., Ltd., Shenzhen Goodix Technology Co., Ltd., Giantec Semiconductor Corporation, Anji Microelectronics Technology (Shanghai) Co., Ltd., Allwinner Technology Co., Ltd., ACM
        Research (Shanghai), Inc., Shanghai Laimu Electronic Limited by Share Ltd, PNC Process Systems Co., Ltd., and Konfoong Materials International Co., Ltd.

       

      WHEREAS:

       

      	(A)	
              The GP and all Limited Partners (collectively referred to as “LPs”) signed a Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.) (hereinafter

                referred to as “Partnership Agreement”) on June 9, 2020 to agree on the matters relating to the establishment of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.) (hereinafter referred to as “Partnership Enterprise”); and

            

       

      
        
          

      

      	(B)	
              The Parties intend to set forth supplementary provisions on the investment decisions and income distributions to be implemented by the Partnership Enterprise with respect to the investment projects.

            

       

      NOW, THEREFORE, through friendly negotiation, the Parties hereby agree as follows:

       

      
        1. About the Investment Project

      

       

      

      	1.1	
              Special foundation

            

       

      

      	

            	1.1.1	
              The Parties unanimously acknowledge and agree that the Partnership Enterprise sets up a special fund to invest specifically in the strategic placement of shares of Semiconductor Manufacturing International Corporation (SMIC) (hereinafter
                referred to as “Project Company”) to be listed on the SSE STAR Market (hereinafter referred to as “Investment Project”). All the Parties shall keep the
                information herein strictly confidential. Before the Project Company publicly discloses its listing on the SSE STAR Market and strategic placement, no Party shall publicly disclose the information in any form. Considering that early
                disclosure will bring material adverse effect on the implementation of the Investment Project, in case that the LP is required to disclose the information due to a written request from the securities regulatory departments or other
                mandatory requirements, the LP shall actively communicate with the securities regulatory departments to obtain an exemption from or postponement of disclosing, and the GP and the LPs shall communicate to agree on response measures and
                plans.

            

       

      	

            	1.1.2	
              In case that the Partnership Enterprise fails to be record-filed or approved by the Asset Management Association of China (AMAC) or fails to obtain a strategic placement quota of the Investment Project, the GP shall arrange the
                Partnership Enterprise to refund the capital contribution and the actually accrued bank deposit interest for the corresponding period to all Partners, and the GP shall refund the received management fee to the Partnership Enterprise. In
                case that the custodian fee cannot be refunded due to restrictions of the business rules of the Custodian Bank, the custodian fee that the Custodian Bank has received shall be apportioned to all Partners in proportion to the paid-in capital
                contribution and deducted from the refundable money.

            

       

      
        
          

      

      	

            	1.1.3	
              In case that, after completion of investment in the Investment Project and deduction of the payable taxes, the surplus cash held by the Partnership Enterprise exceeds RMB 1 million because the investment quota available distributed from
                the Investment Project to the Partnership Enterprise is insufficient or due to round-down of the number of shares during the implementation of the strategic placement, the surplus cash shall be refunded to all Partners in proportion to each
                Partner’s paid-in capital contribution to the Partnership Enterprise within 15 business days after the Partnership Enterprise completes the investment in the Investment Project.

            

       

      	1.2	
              Capital contribution by the GP

            

       

      

      	

            	1.2.1	
              The Parties unanimously acknowledge and agree that the amount (RMB 5 million) of the capital contribution subscribed by the GP under the Partnership Agreement and specified in the industrial and
                commercial registration information serves the only purpose of meeting the requirements of the Partnership Agreement and the requirements on the completeness of the industrial and commercial
                registration information. To meet the regulatory requirements imposed by the regulatory departments on the Investment Project, the GP does not actually make paid-in capital contributions to the Partnership Enterprise. Neither party shall
                require GP to assume any liability for breach of contract or other liabilities for such excuses.

            

       

      	

            	1.2.2	
              For purpose of clarity, the GP does not participate in the apportioning of stock assets under this Agreement or the distribution of investment income under the Partnership Agreement and this
                Agreement; but the Partnership Enterprise still needs to pay the GP the management fee in accordance with the Partnership Agreement in an amount receivable as a Fund Manager.

            

       

      
        
          

      

      
        2. Investment Decision-making Mechanism

         

        

      

      
        	
                2.1

              	
                Project investment decision-making

              

      

       

        

      	

            	2.1.1	
              The Parties hereby unanimously agree that the Partnership Enterprise will participate in the Investment Project, and the GP will act on behalf of the Partnership Enterprise to invest in the Investment Project in accordance with the laws
                and regulations and business rules on the strategic placement of listing on the SSE STAR Market and the requirements of the intermediary agencies that act for listing of the Project Company on the SSE STAR Market. When necessary, the GP
                may, in the GP’s name or in the name of the Partnership Enterprise, provide relevant documents to the outside to reflect the investment decisions of the Partnership Enterprise on Investment Project.

            

       

      	

            	2.1.2	
              All the LPs of the Partnership Enterprise are large enterprises that can form upstream and downstream business cooperation relationships with the GP’s significant shareholders (that is, the Project Company). The investment decisions of
                the Partnership Enterprise are made jointly by the GP and all LPs in accordance with this Agreement. With the stake in the Partnership Enterprise being relatively decentralized and no single participant being able to control the investment
                decisions of the Partnership Enterprise, the Partnership Enterprise has no actual controller.

            

       

      
        	
                2.2

              	
                Apportionment of stock assets

              

         

        

      

      The initial number of shares owned after the Partnership Enterprise completes the investment in the Investment Project is apportioned to all the LPs in proportion to each LP’s paid-up capital contribution in the
        Partnership Enterprise, and is managed by the GP through establishing an internal ledger. After initially apportioning the number of shares, the GP shall notify the apportioned number to each LP in a proper manner as soon as practicable. In case of
        selling down the stake in the Partnership Enterprise, the GP shall set out, in a selldown proceeds distribution document, the change of the apportioned shares to each LP that participates in the selldown. Such share apportionment does not go
        through any procedure of securities registration and transfer. In case of capitalization from capital reserve of the Project Company, distribution of bonus shares, share placement, or other capital equity adjustments subsequently, the number of
        shares apportioned above and belonging to all LPs shall be adjusted proportionally. For ease of operation, the fractional portion in the number of shares caused by rounding down the apportioned number of shares in the calculation process (the
        resulting figure of the number is accurate to single digits, without decimal points) shall be reasonably apportioned among all LPs by the GP.

       

      
        
          

      

      
        	
                2.3

              	
                Divestment principles

              

      

       

        

      	

            	2.3.1	
              Selldown of shares shall meet the requirements of laws, regulations, and stock trading rules, and shall be applicable to non-restricted shares only.

            

       

      	

            	2.3.2	
              Each LP makes independent selldown decisions on the shares apportioned and belonging to the LP, and the GP performs selldown operations in accordance with the laws, regulations, trading rules, the Partnership

                  Agreement, and this Agreement.

            

       

      
        	
                2.4

              	
                Divestment decision-making mechanism

              

      

       

      

      	

            	2.4.1	
              Preferred divestment mechanism: block trading.

            

       

      	

            	(1)	
              Considering the background of the establishment of the Partnership Enterprise and the rigid requirements of the stock trading rules, in order to minimize the potential conflicts of interest between the LPs arising from the selldown
                performed in a call auction mechanism, the shares belonging to each LP are preferably sold down in a block trading mechanism. The LP finds a suitable buyer to take the shares to be sold down in a block trading transaction, provided,
                however, that the LP shall send a reasonably prior written trading notice to the GP and issue a trading instruction in accordance with the GP’s requirements. The GP may also recommend a suitable buyer to the LP, and subject to consent of
                the LP, carry out the block trading selldown according to this Agreement. The trading instruction shall include at least: the number of shares to be sold down, the trading price, the name of the transferee, the transferee’s securities
                account information, and the specified trading number.

            

       

      	

            	(2)	
              In principle, the GP accepts a block trading instruction of only one LP within one trading day in order to avoid conflicts of interest. If more than one LP issues a block trading instruction to the GP in one day, only the trading
                instruction of the LP whose prior trading notice arrives at the GP first will be executed. The specific arrangements are as follows:

            

       

      
        
          

      

      	

            	A.	
              The LP that intends to sell down its shares in a block trading transaction in a trading day shall send a prior trading notice to the GP by email before 11:00 a.m. of the trading day, and thereafter make a telephone call to the GP to
                confirm that the GP has received the prior trading notice. The prior trading notice shall specify the number of shares to be sold down, and the selldown price or a lower limit of the discount rate against the closing price of the day.

            

       

      	

            	B.	
              The GP replies to the LP by email before 14:00 of the trading day to confirm that the LP whose prior trading notice arrives at the GP first will participate in the block trading selldown of the trading day, and that other LPs cannot
                participate in the block trading selldown of the trading day.

            

       

      	

            	C.	
              For an LP that participates in the block trading selldown as confirmed by the GP, the LP shall send a formal block trading instruction as required by the GP.

            

       

      	

            	(3)	
              Any prior trading notice and any trading instruction that do not meet the foregoing requirements hereof are invalid, and may be rejected and repudiated by the GP, and the liability arising therefrom shall be borne by the corresponding
                LP.

            

       

      	

            	(4)	
              Given that the time window of the block trading is 30 minutes after the closing of the trading day, the LP shall communicate with the GP as early as possible and agree on the specific arrangements for the trading. If the remaining
                available trading time is not enough to complete the block trading selldown operation after the LP’s trading instruction reaches the GP, the GP has the right to repudiate the instruction, and the relevant liability shall be borne by the
                corresponding LP.

            

       

      	

            	(5)	
              The GP will exercise its best efforts to complete the trading instruction of the LP. However, the trading instruction issued by the LP under this Agreement is vulnerable to trading failure, subject to the communication and confirmation
                between the LP and the GP, the communication and confirmation between the GP and the trading buyer and the securities brokerage company, the securities trading rules, the time that the selldown operation takes, the requirements of the
                securities brokerage company on the reporting of the instruction and the procedure of circulating the instruction, and the operation collaboration of the trading counterparty, and other factors uncontrollable by the GP such as possible
                technical failures. The Parties agree that if any of such matters occurs, the GP shall not be held liable, and the Parties shall initiate another new block trading procedure in accordance with this Agreement.

            

       

      
        
          

      

      	

            	2.4.2	
              Alternative divestment mechanism: call auction mechanism. As proposed by one or more LPs who individually or aggregately hold 30% or more of the total outstanding shares of the Partnership Enterprise, the call auction mechanism may apply
                to selldown of the shares. Subject to the aforesaid conditions, the GP raises a selldown proposal to all LPs according to market conditions. The selldown proposal includes the upper limit of the total number of shares to be sold down, the
                upper limit of the number of shares that each LP can request to sell down according to the percentage of remaining shares held by the LP, the lower limit of the selldown price, the time limit of the selldown operation, and the deadline of
                reply from the LP. Each LP who receives the selldown proposal from the GP and agrees to the selldown proposal shall, as required by the GP, request to sell down a specific number of shares, but the request shall not include requirements
                such as price and time limit of the selldown operation.

            

       

      The LP who agrees to participate in the share selldown shall reply to the GP in writing (including by email, the same below) before the deadline specified in the selldown
        proposal. By sending the written reply, the LP is deemed to agree that the GP will sell down the shares in accordance with this Agreement and the selldown proposal raised by the GP, and is deemed to issue an irrevocable selldown trading instruction
        to the GP. In case that the instruction is not in compliance with Section 2.4.2 hereof (including but not limited to failure to reply to the GP in writing before the deadline), the reply or instruction shall be deemed invalid, and the GP has the
        right to repudiate the trading instruction, with the relevant liability being borne by the corresponding LP.

       

      
        
          

      

      	

            	2.4.3	
              Other mechanisms. In case that new regulatory rules are promulgated in the future on the mechanism of selling down the shares traded on the SSE STAR Market and give rise to other applicable selldown mechanisms, the Parties may otherwise
                negotiate and sign a relevant written document to confirm the new selldown mechanisms.

            

       

      
        3. Income Distribution

         

        

      

      
        	
                3.1

              	
                Distribution of proceeds from share selldown

              

      

       

        

      	

            	3.1.1	
              The proceeds from the share selldown implemented in a block trading transaction according to this Agreement shall be distributed to only the LPs that execute the block trading transaction, without being distributed to other LPs.

            

       

      	

            	3.1.2	
              The proceeds from the actual share selldown implemented in a call auction mechanism shall be distributed among the LPs who participate in the share selldown in proportion to the valid requested number of selldown shares of each LP after
                deduction of the transaction taxes, the payable VAT, and additional taxes.

            

       

      	

            	3.1.3	
              The GP shall distribute cash to the LPs within 15 business days after the Partnership Enterprise receives the share selldown proceeds. Before performing cash distribution to the LPs, the GP and the LPs check and confirm in writing the
                amount to be distributed. Each LP shall check and confirm in accordance with the requirements of the GP and reply in writing. The LP who does not reply within three business days after receiving the notice from the GP shall be deemed to
                have no objection to the amount to be distributed.

            

       

      	

            	3.1.4	
              Other related taxes and expenses arising from the share selldown shall be borne by the participating Partners of the selldown in proportion to each Partner’s number of shares sold down.

            

       

      
        	
                3.2

              	
                Capital decrease procedure

              

      

       

        

      	

            	3.2.1	
              To avoid unnecessary management costs and minimize the formality burden of the Parties, in the process of implementing the share selldown and income distribution, the procedure in industrial and commercial registration is temporarily not
                handled for the capital reduction one by one unless all the shares of an LP have been sold down.

            

       

      
        
          

      

      	

            	3.2.2	
              All LPs shall agree to and provide collaboration in the procedure of industrial and commercial registration that, at the fair and reasonable discretion of the GP, needs to be handled. When all the shares of an LP have been sold down, a
                partnership withdrawal procedure of the LP and a procedure of industrial and commercial change registration shall be handled.

            

       

      
        4. Miscellaneous

         

        

      

      
        	
                4.1

              	
                Validity and miscellaneous

              

      

       

        

      	

            	4.1.1	
              This Agreement shall come into force as of the date of signing by the Parties hereto. In case that this Agreement is inconsistent with the Partnership Agreement, this Agreement shall prevail.

            

       

      	

            	4.1.2	
              Section 16 “Governing Law and Dispute Settlement”, Section 20 “Force Majeure”, and Section 21 “Notice” of the Partnership Agreement are applicable to this Agreement and deemed to be part of this
                Agreement.

            

       

      	

            	4.1.3	
              This Agreement is made in 15 counterparts, and each of the Parties hereto hold one counterpart. Matters not covered herein are subject to further negotiation between the Parties hereto.

            

       

      (The remainder of this page is intentionally left blank)

       

      
        
          

      

      (This is a signature page for the Supplementary Agreement to the Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.))

        

      

      General Partner: [Unintelligible]

       

      China Fortune-Tech Capital Co., Ltd. (seal)

      /s/ China Fortune-Tech Capital Co., Ltd. 

       

      Legal representative (signature) [***]

      

       

      
        
          

      

      (This is a signature page for the Supplementary Agreement to the Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.))

       

      

      Limited Partner: [Unintelligible]

       

      Shanghai Sinyang Semiconductor Materials Co., Ltd (seal)

      /s/ Shanghai Sinyang Semiconductor Materials Co., Ltd 

       

      Legal representative (signature) [***]

        

      

      
        
          

      

      (This is a signature page for the Supplementary Agreement to the Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.))

        

      

      Limited Partner: [Unintelligible]

       

      Advanced Micro-Fabrication Equipment Inc. China (seal)

      /s/ Advanced Micro-Fabrication Equipment Inc. China 

       

      Legal representative (signature) [***]

        

      

      
        
          

      

      (This is a signature page for the Supplementary Agreement to the Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.))

       

      Limited Partner: [Unintelligible]

       

      Zing Semiconductor Corporation (seal)

      /s/ Zing Semiconductor Corporation 

       

      Legal representative (signature) [***]

        

      

      
        
          

      

      (This is a signature page for the Supplementary Agreement to the Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.))

       

      Limited Partner: [Unintelligible]

       

      Montage-Tech Investment Co., Ltd. (seal) 

      

      /s/ Montage-Tech Investment Co., Ltd. 

      

      

      Legal representative (signature) [***]

        

      

      
        
          

      

      (This is a signature page for the Supplementary Agreement to the Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.))

        

      

      Limited Partner: [Unintelligible]

       

      Tianjin Zhonghuan Semiconductor Co., Ltd. (seal)

      /s/ Tianjin Zhonghuan Semiconductor Co., Ltd. 

       

      Legal representative (signature) [***]

        

      

      
        
          

      

      (This is a signature page for the Supplementary Agreement to the Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.))

       

      Limited Partner: [Unintelligible]

       

      Will Semiconductor Co., Ltd. (seal) 

      /s/ Will Semiconductor Co., Ltd.  

        

      

      Legal representative (signature) [***]

        

      

      
        
          

      

      (This is a signature page for the Supplementary Agreement to the Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.))

        

      

      Limited Partner: [Unintelligible]

       

      Shenzhen Goodix Technology Co., Ltd. (seal)

      /s/ Shenzhen Goodix Technology Co., Ltd.

        

      

      Legal representative (signature) [***]

       

      
        
          

      

      (This is a signature page for the Supplementary Agreement to the Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.))

       

      Limited Partner: [Unintelligible]

       

      

      Giantec Semiconductor Corporation (seal)

      /s/ Giantec Semiconductor Corporation  

       

      Legal representative (signature) [***]

       

      
        
          

      

      (This is a signature page for the Supplementary Agreement to the Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.))

        

      

      Limited Partner: [Unintelligible]

       

      Anji Microelectronics Technology (Shanghai) Co., Ltd. (seal)

      /s/ Anji Microelectronics Technology (Shanghai) Co., Ltd. 

       

      Legal representative (signature) [***]

        

      

      
        
          

      

      (This is a signature page for the Supplementary Agreement to the Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.))

        

      

      Limited Partner: [Unintelligible]

       

      

      Allwinner Technology Co., Ltd. (seal)

      /s/ Allwinner Technology Co., Ltd. 

       

      Legal representative (signature) [***]

        

      

      
        
          

      

      (This is a signature page for the Supplementary Agreement to the Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.))

        

      

      Limited Partner:

      

       

      ACM Research (Shanghai), Inc. (seal)

      /s/ ACM Research (Shanghai), Inc. 

       

      Legal representative (signature) /s/ HUI WANG

      

        

      

      
        
          

      

      (This is a signature page for the Supplementary Agreement to the Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.))

        

      

      Limited Partner: [Unintelligible]

       

      Shanghai Laimu Electronic Limited by Share Ltd (seal)

      

      /s/ Shanghai Laimu Electronic Limited by Share Ltd 

      

      

      Legal representative (signature) [***]

        

      

      
        
          

      

      (This is a signature page for the Supplementary Agreement to the Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.))

        

      

      Limited Partner: [Unintelligible]

       

      PNC Process Systems Co., Ltd. (seal)

      /s/ PNC Process Systems Co., Ltd.  

        

      

      Legal representative (signature) [***]

        

      

      
        
          

      

      (This is a signature page for the Supplementary Agreement to the Partnership Agreement of Qingdao Fortune-Tech Xinxing Capital Partnership (L.P.))

       

      Limited Partner: [Unintelligible]

        

      

      Konfoong Materials International Co., Ltd (seal)

      /s/ Konfoong Materials International Co., Ltd 

       

      

      Legal representative (signature) [***]SEC Reference 4.1

       

      

      DESCRIPTION OF COMMON STOCK

      

      

    

    
      As of the date of the Annual Report on Form 10-K of which this exhibit is a part, Eco Science Solutions, Inc. (the “Company” or “we” or “our”) has two classes of securities: common stock, par
        value $0.0001 per share; and preferred stock, par value $0.001 per share registered under Section 12 of the Securities Exchange Act of 1934 as amended (the “Exchange Act”).

      

      

      The following summary describes the material terms of the Company’s common stock. The description of common stock is qualified by reference to our Articles of Incorporation, as amended and our
        Bylaws, which are incorporated by reference as exhibits to the Annual Report on Form 10-K of which this exhibit is a part.

      

      

    

    
      General

      

      

      Our Articles of Incorporation authorizes us to issue up to 650,000,000 shares of common stock.  In addition, under our amended and restated certificate of incorporation, our board of directors has the authority,
        without further action by stockholders, to issue and designate up to 50,000,000 shares of preferred stock, par value $0.001 per share, in one or more series and to fix the rights, preferences, privileges, qualifications and restrictions granted to
        or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption and liquidation preference and sinking fund terms, any or all of which may be greater than the rights of our common
        stock. The issuance of preferred stock could adversely affect the voting power of holders of common stock and reduce the likelihood that common stockholders will receive dividend payments and payments upon liquidation.  The issuance could also have
        the effect of decreasing the market price of the common stock. The issuance of preferred stock also could have the effect of delaying, deterring or prevent a change in control of the Company.

    

    
      

      

    

    Our board of directors has authorized 50,000,000 shares of preferred stock of which there are zero issued and outstanding as of the date of the Annual Report on Form 10-K. 5,000,000 of the Preferred Shares shall be
      designated as Series A Preferred Voting Shares which shall have no conversion rights, or other rights, other than voting rights.  Each of the 5,000,000 shares of the Series A Preferred Voting Shares shall have voting rights equal to three times the
      issued and outstanding shares of Common Stock.  Series A Preferred Voting Stock may not be sold, assigned, hypothecated, or otherwise disposed of, without first obtaining the consent of the majority Series A Preferred Voting Shareholders and the
      Company’s CEO.

    
      

      

    

    Voting Rights

    

    

    Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the stockholders including the election of directors. Except as otherwise required by law the holders of our common stock
      possess all voting power. According to our bylaws, in general, each director is to be elected by a majority of the votes cast with respect to the directors at any meeting of our stockholders for the election of directors at which a quorum is present.
      According to our bylaws, in general, the affirmative vote of a majority of the shares represented at the meeting and entitled to vote on any matter, except for the removal of directors (which requires a 2/3 vote) with or without cause is to be the
      act of our stockholders. Our bylaws provide that any two stockholders represented in person or by proxy, constitute a quorum at the meeting of our stockholders. Our bylaws also provide that any action which may be taken at any annual or special
      meeting of our stockholders may be taken without a meeting and without prior notice if a consent in writing, setting forth the action so taken, is signed by the holders of outstanding shares having not less than the minimum number of votes that would
      be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted.

    

    

    Our articles of incorporation and bylaws do not provide for cumulative voting in the election of directors. Because the holders of our common stock do not have cumulative voting rights and directors are generally to be
      elected by a majority of the votes casts with respect to the directors at any meeting of our stockholders for the election of directors, holders of more than fifty percent, and in some cases less than 50%, of the issued and outstanding shares of our
      common stock can elect all of our directors.

     

    Dividend Rights

    

    

    The holders of our common stock are entitled to receive such dividends as may be declared by our board of directors out of funds legally available for dividends. Our board of directors is not obligated to declare a dividend. Any future dividends
      will be subject to the discretion of our board of directors and will depend upon, among other things, future earnings, the operating and financial condition of our company, its capital requirements, general business conditions and other pertinent
      factors. We do not anticipate that dividends will be paid in the foreseeable future.

    

    

    
      Liquidation

    

    
      

      

      In the event of our liquidation, dissolution or winding up, holders of our common stock and holders of Series A Stock will be entitled to share ratably (on an as-converted to common stock basis) in the net assets
        legally available for distribution to stockholders after the payment of all of our debts and other liabilities, subject to the satisfaction of any liquidation preference granted to the holders of any outstanding shares of preferred stock.

    

    
      

      

    

    
      Rights and Preferences

    

    
      

      

      Holders of our common stock have no preemptive, conversion or subscription rights, and there are no redemption or sinking fund provisions applicable to our common stock. The rights, preferences and privileges of the
        holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock that we may designate and issue in the future.

    

    
       

      Anti-Takeover Effects of our Articles of Incorporation and Nevada Law

      

      

    

    
      Our Articles of Incorporation provide for the issuance of up to 650,000,000 shares of common stock. Our authorized but unissued shares of common stock will be available for future issuance without stockholder
        approval. These additional shares may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans. Our board has the authority to issue an
        unlimited additional number of shares. The existence of unlimited authorized but unissued shares of common stock could render more difficult or discourage an attempt to obtain control of a majority of our common stock by means of a proxy contest,
        tender offer, merger or otherwise.

       

    

    Some features of the Nevada Revised Statutes, which are further described below, may have the effect of deterring third parties from making takeover bids for control of our company or may be used to hinder or delay a
      takeover bid. This would decrease the chance that our stockholders would realize a premium over market price for their shares of common stock as a result of a takeover bid.

    
      
        

    

    

    

    Acquisition of Controlling Interest

    

    

    The Nevada Revised Statutes contain provisions governing the acquisition of a controlling interest of certain Nevada corporations. These provisions provide generally that any person or entity that acquires in excess of
      a specified percentage of the outstanding voting shares of a Nevada corporation may be denied voting rights with respect to the acquired shares, unless the holders of a majority of the voting power of the corporation, excluding shares of which such
      acquiring person or entity, an officer or a director of the corporation, and an employee of the corporation exercises voting rights, elect to restore such voting rights in whole or in part. These provisions apply whenever a person or entity acquires
      shares that, but for the operation of these provisions, would bring voting power of such person or entity in the election of directors within any of the following three ranges:

    

    

    
      	
              1.

            	
              20% or more, but less than 33 1/3%;

            

    

    
      	
              2.

            	
              33 1/3% or more but less than or equal to 50%; or

            

    

    
      	
              3.

            	
              More than 50%

            

    

    

    

    The stockholders or board of directors of a corporation may elect to exempt the stock of the corporation from these provisions through adoption of a provision to that effect in the articles of incorporation or bylaws
      of the corporation. Our articles of incorporation and bylaws do not exempt our common stock from these provisions.

    These provisions are applicable only to a Nevada corporation, which:

    

    

    
      	
              1.

            	
              has 200 or more stockholders of record, at least 100 of whom have addresses in Nevada appearing on the stock ledger of the corporation; and

            

    

    

    

    
      	
              2.

            	
              does business in Nevada directly or through an affiliated corporation. 

            

    

    

    

    At this time, we do not have 200 stockholders or 100 stockholders of record who have addresses in Nevada appearing on the stock ledger of our company nor do we conduct any business in Nevada, either directly or through
      an affiliated corporation. Therefore, we believe that these provisions do not apply to acquisitions of our shares and will not until such time as these requirements have been met. At such time as they may apply to us, these provisions may discourage
      companies or persons interested in acquiring a significant interest in or control of our company, regardless of whether such acquisition may be in the interest of our stockholders.

    

    

    
      OTCQB Venture Market

      

      

      Our common stock trades under the symbol "ESSI" on the OTC:PINK Venture Market.

    

    
      

      

    

    
      Transfer Agent and Registrar

      

      

    

    The transfer agent and registrar for our common stock is Empire Stock Transfer at 1859 Whitney Mesa Drive, Henderson, Nevada 89014.

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