Document:

cnamex10-19.htm

 

 

Scrap Metal Sales Contract

Contract Number: 10FG001S

Date: February 21, 2010

Location: WeiAn

Seller: Armet (Lianyungang) Renewable Resources Co., Ltd.

Buyer: Jiangsu Lihuai Iron & Steel Co., Ltd.

Both parties based on equality, voluntariness, equitable and mutually beneficial, accordance to “Contract Law of People’s Republic of China” and other relevant laws, regulation accept the following contract, both parties have accepted the following terms.

	
1.  

	
Both parties have been fully explained and understood provisions of this contract to each other.

	
2.  

	
Both Parities fully understood the terms and provisions of this contract, and understand compliance of all these terms.

	
3.  

	
Both parties agreed to comply with all terms of this contract.

 

	
4.  

	 

I           Product name, size, volume, quality standard, delivery date and quantity

	
Produce Name, Size

	
Quality Standard

	
Volume (tons/month)

	
Delivery Date

	
Scrap metal

	
Crushed aggregates, 

	
13,000

	
Monthly Order

	  	Charging materials, 	
6,000

	
Monthly Order

	  	Heavy scrap	
4,000

	
Monthly Order

	
Total

	  	
23,000

	  

II           Unit Price (Taxes included): to be determined on the 25th day of every month to calculate following month’s unit price per ton.

III           Delivery Discrepancy: Plus or minus 10%

IV           Transportation method, freight insurance and other expenses

Departure Location: Liangyungang, China Armet’s metal scrap facility,

Receiving location: Jiangsu Lihuai Iron & Steel Co., Ltd.’s scrap metal storage. All transportation and insurance expenses are paid by the seller.

  

  

  

V           Reasonable loss determination and calculation

The calculation is based on the measurement by the loadometer of Jiangsu Lihuai Iron & Steel Co., Ltd.

VI           Quality requirement

The delivered products should not mix with airtight containers, inflammable, explosives, and radioactive materials. The buyer has the right to send staff to monitor the production on site.

VII           Inspection criteria

The inspection conclusion is based on the scene inspection at Armet (Lianyungang) Renewable Resources Co., Ltd. The buyer confirms the inspection conclusion at the scene. Both parties negotiate to resolve if any disagreement may occur.

VIII           Bill Settlement and payment

After the products have been delivered and measured at Jiangsu Lihuai Iron & Steel Co., Ltd., the buyer should make the payment within 7 days after the buyer has booked the invoice from the seller.

IX           Changes in the contract

The terms of the contract can be changed upon the agreement of the buyer and seller. The change takes effect upon the signatures and seals by both parties.

X           Term

The contract is valid from February 21, 2010 to December 31, 2010.

XI           Force majeure

When the unpredictable, unavoidable, and insurmountable events occur such as natural disaster and fire and deprive one party the capabilities to execute all or partial obligations in the contract, the party is exempt from penalty. The party that encounters force majeure shall notify the counterpart about the event by telephone or telegraph and provide the supporting evidence on the force majeure issued by authorized institution within 14 days after the occurrence of the event. If the impact of force majeure lasts more than 30 days, both parties should negotiate either to change the terms of the contract, continue the execution, or terminate the contract.

XII           Disputes settlement

The parties should negotiate to settle the disputes related to the contract. If the parties can’t reach agreement, either party can file lawsuit to the local court.

XIII           Miscellaneous

This contract has four original copies, and each party holds two original copies. Each copy has the same legal force. The contract takes effect upon signatures and seals by both parties.

Buyer: Jiangsu Lihuai Iron & Steel Co., Ltd.

Authorized Representative: /s/ Fazhan Yang

(Company Seal)

Seller: Armet (Lianyungang) Renewable Resources Co., Ltd.

Authorized Representative: /s/  Ji Zhang

Phone: 0518-68083830

Fax: 0518-68081111

(Company Seal)phyhealth_ex1020.htm

EXHIBIT 10.20

 

 

Related Party Transactions Policy

 

 

The Board of Directors (the “Board”) of Phyhealth Corporation (the “Company”) has adopted the following policy with regard to Related Party Transactions, as defined below.

 

Policy

 

Related Party Transactions, which are limited to those described in this policy, shall be subject to the approval or ratification by the Board in accordance with this Policy.

 

Background

 

Our Code of Ethics, which applies to all employees and directors, provides that all conflicts of interest should be avoided. Pursuant to Item 404 of Regulation S-K of the Securities and Exchange Commission (“SEC”), certain transactions between the issuer and certain related persons need to be disclosed in our filings with the SEC. In addition, under Section 144 of the Delaware General Corporation Law, certain transactions between the Company and our directors and officers may need to be approved by our Board of Directors or a duly authorized Committee of the Board. This Policy is intended to provide guidance and direction on Related Party Transactions.

 

Definition

 

A “Related Party Transaction” is any transaction directly or indirectly involving any Related Party that would need to be disclosed under Item 404(a) of Regulation S-K. Under Item 404(a), the Company is required to disclose any transaction occurring since the beginning of the registrant's last fiscal year, or any currently proposed transaction, involving the Company where the amount involved exceeds $1,000, and in which any related person had or will have a direct or indirect material interest. “Related Party Transaction” also includes any material amendment or modification to an existing Related Party Transaction.

 

“Related Party” means any of the following:

 

	
·      

	
a director (which term when used herein includes any director nominee),

	
·      

	
an executive officer,

	
·      

	
a person known by the Company to be the beneficial owner of more than 5% of the Company's common stock (a “5% stockholder”),

	
·      

	
or a person known by the Company to be an immediate family member of any of the foregoing.

 

“Immediate family member” means a child, stepchild, parent, stepparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of such director, executive officer, nominee for director or beneficial owner, and any person (other than a tenant or employee) sharing the household of such director, executive officer, nominee for director or beneficial owner.

 

  

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Identification of Potential Related Party Transactions

 

Related Party Transactions will be brought to management's and the Board's attention in a number of ways. Each of our directors and executive officers is instructed and periodically reminded to inform the Secretary of any potential Related Party Transactions. In addition, each director and executive officer shall complete a questionnaire on an annual basis designed to elicit information about any potential Related Party Transactions.

Any potential Related Party Transactions that are brought to our attention are analyzed by our legal counsel, in consultation with management, as appropriate, to determine whether the transaction or relationship does, in fact, constitute a Related Party Transaction requiring compliance with this Policy.

 

Review and Approval of Related Party Transactions

 

At each of its meetings, the Board will be provided with the details of each new, existing or proposed Related Party Transaction, including the terms of the transaction, the business purpose of the transaction, and the benefits to the Company and to the relevant Related Party. In determining whether to approve a Related Party Transaction, the Board will consider, among other factors, the following factors to the extent relevant to the Related Party Transaction:

 

	
·      

	
whether the terms of the Related Party Transaction are fair to the Company and on the same basis as would apply if the transaction did not involve a Related Party;

	
·      

	
whether there are business reasons for the Company to enter into the Related Party Transaction;

	
·      

	
whether the Related Party Transaction would impair the independence of an outside director, if applicable; and

	
·      

	
whether the Related Party Transaction would present an improper conflict of interests for any director or executive officer of the Company, taking into account the size of the transaction, the overall financial position of the director, executive officer or Related Party, the direct or indirect nature of the director's, executive officer's or Related Party's interest in the transaction and the ongoing nature of any proposed relationship, and any other factors the Board deems relevant.

 

Any member of the Board who has an interest in the transaction under discussion will abstain from voting on the approval of the Related Party Transaction, but may, if so requested by the Chairperson of the Board, participate in some or all of the Board's discussions of the Related Party Transaction. Upon completion of its review of the transaction, the Board may determine to permit or to prohibit the Related Party Transaction.

  

A Related Party Transaction entered into without pre-approval of the Board shall not be deemed to violate this Policy, or be invalid or unenforceable, so long as the transaction is brought to the Board as promptly as reasonably practical after it is entered into or after it becomes reasonably apparent that the transaction is covered by this policy.

 

Amendment

 

The Board of Directors may amend or otherwise modify this Policy from time to time with the approval of a majority of the Directors.

 

Approved by Board of Directors, May 12, 2010, and effective when the Phyhealth Registration is declared effective.

 

______________________

Robert Trinka, Director

 

______________________

Fidel Rodriguez, Director

 

______________________

Richard Goulding, Director

  

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