Document:

Unassociated Document

Exhibit 10.36

 

 

EXCLUSIVE OPTION AGREEMENT

BETWEEN

JIN ZHENG LI TE WEI SI CARBON (TAIYUAN) CO., LTD

AND

YAO GUO YUN

MENG CHUN DE

TAIYUAN HONGXING CARBON BLACK CO., LTD

 

 

 

 

 

 

 

 

 

Taiyuan, CHINA

 

  

  

  

 

EXCLUSIVE OPTION AGREEMENT

 

This Exclusive Option Agreement (the “Agreement”) is entered into as of【 】among the following Parties in Taiyuan.

 

Party A: Jin Zheng Li Te Wei Si Carbon (Taiyuan) Co., Ltd.

Registered Address: 1-1-705, Beimei New World Garden, No.116 of Changfeng Street, Taiyuan of Shanxi Province

Legal Representative: Meng Lian De

 

Party B: Yao Guo Yun

A citizen of PRC, Identity Card Number: 140121196211149047

Party C: Meng Chun De

A citizen of PRC, Identity Card Number: 140121196303089010

Party D: Taiyuan Hongxing Carbon Black Co., Ltd

Registered Address: Xigu Village, Xigu Country of Qingxu County, Taiyuan of Shanxi Province.

Legal Representative: Yao Guo Yun

 

In this Agreement, Party A, Party B, Party C and Party D are 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. Party D is a limited liability company incorporated in Qingxu and with business license issued by the Qingxu Administration for Industry and Commerce;

3. As of the date of this Agreement, Party B and Party C are shareholders of Taiyuan Hongxing Carbon Black Co., Ltd (hereinafter referred to as “Taiyuan Hongxing”) and collectively legally hold all of the equity interest of Taiyuan Hongxing, of which Party B holds 91%, Party C holds 9%.

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

 

  

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1.1 Grant: Party B and Party C hereby grant Party A an irrevocable exclusive purchase option to purchase all or part of the shares of Party D, currently owned by any of Party B and Party C; Party D further hereby grant Party A an irrevocable exclusive purchase option to purchase all or part of the assets and business of Party D, in each case in accordance with Article 1.3 of this contract (the “Option”). The Option is 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.

1.2 Exercise Procedures

1.2.1 Party A shall notify Party B and Party C 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 Party C and Taiyuan Hongxing, 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, Party C and Party D 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 Party D 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 Party D whenever Party A considers it necessary to acquire Party D and it is doable in accordance with PRC laws and regulations.

Article 2  Price of Acquisition

 

2.1 Party A, Party B and Party C 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 Party D 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

 

  

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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 and Party C warrant, represent and guarantee that this Agreement, the restructuring exercise shall be in compliance with any and all applicable PRC laws and shall indemnify, defend and hold harmless Party A and Party D for all fines, penalties, damages or claims sustained by Party A or Party D arising out of Party B and Party C’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.

3.2 Party B and Party C and Party D hereto represent to Party A that:

With respect to the equity interest held by Party B and Party C in Party D, (i) Party B and Party C are legally registered shareholders of party D and have paid Party D the full amount of their respective portions of Party D's registered capital required under the PRC laws; (ii) except Pledge of Equity Agreement, signed by and between Party B and Party C and Party A on 【 】 in Taiyuan, neither of Party B and Party C has mortgaged or pledged his/her shares of Party D, nor has either of them granted any security interest or borrow against his/her shares of Party D in any form; and (iii) neither of Party B and Party C has sold or will sell to any third party its equity interests in Party D.

With respect to the assets of Party D which may be transferred to Party A at Party A’s option hereunder, (i) Party D owns all such assets and has not mortgaged or pledged or otherwise encumber such assets; and (ii) Party D has not sold or will sell to any third party such assets.

3.3 Party D hereto represents to Party A that: (i) it is a limited liability company 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 Party D by

exercising the Option provided hereunder, Party D 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

 

  

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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 Party D by exercising the Option provided hereunder, Party B and Party C 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 Party D, except for the pledge of such shares made according to the Pledge of Equity Agreement, signed by and among Party B and Party C and Party A on【 】in Taiyuan.

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

4.3.1 supplement, alter or amend the articles of association of Party D in any manner to the extent that such supplement, alteration or amendment may have a material effect on Party D's assets, liability, operation, shareholders’ equity or other legal rights;

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

4.3.3 Party B and Party C shall entrust Party A to manage Party D in accordance with Entrusted Management Agreement, signed by and between Party B, C, D and Party A on【 】in Taiyuan.

4.4 Non Competition:

When Party A exercises the Option, each of Party B, Party C and Party D 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

 

  

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(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, Party C and Party D shall not transfer their rights and obligations under the Agreement to any third party without the prior written consent of Party A

5.2 Each of Party B, Party C and Party D 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, Party C and Party D by Party A, and no any further consent from Party B, Party C and Party D will be required.

 

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:

 

Article 6  Confidentiality

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.

 

 

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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 located in Beijing. The arbitration award shall be final, conclusive and binding upon both Parties. 

 

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.

 

 

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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.

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 four 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.

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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: Jin Zheng Li Te Wei Si Carbon (Taiyuan) Co., Ltd.

 

        (Seal)

 

 

Legal Representative/Authorized Representative

 

(Signature):                                                        

 

PARTY B: Yao Guo Yun

(Signature):                                                        

PARTY C: Meng Chun De

 

(Signature):                                                        

PARTY D: Taiyuan Hongxing Carbon Black Co., Ltd

 

        (Seal)

 

 

Legal Representative/Authorized Representative

 

(Signature):                                                        

 

 

 

 

 

-8-Unassociated Document

Exhibit 10.37

 

 

EXCLUSIVE PURCHASE AGREEMENT

BETWEEN

JIN ZHENG LI TE WEI SI CARBON (TAIYUAN) CO., LTD

AND

TAIYUAN HONGXING CARBON BLACK CO., LTD.

 

 

 

 

 

 

 

 

 

Taiyuan, CHINA

 

  

  

  

 

EXCLUSIVE PURCHASE AGREEMENT

 

  

This Exclusive Purchase Agreement (the “Agreement”) is entered into as of 【 】by and between JIN ZHENG LI TE WEI SI CARBON (TAIYUAN) CO., LTD. and Taiyuan Hongxing Carbon Black Co., Ltd. in Taiyuan City, P.R.C.

Party A: JIN ZHENG LI TE WEI SI CARBON (TAIYUAN) CO., LTD.

Legal Representative: Meng Lian De

Address: 1-1-705, Beimei New World Garden, No.116 of Changfeng Street, Taiyuan of Shanxi Province.

Party B: Taiyuan Hongxing Carbon Black Co., Ltd.

Legal Representative: Yao Guo Yun

Address: Xigu Village, Xigu Country of Qingxu County, Taiyuan of Shanxi Province

Whereas,

1. Party A is a wholly-foreign owned company established in accordance with the laws of P.R.C. with the business license No. 140100400002251;

2. Party B is a company established under the laws of P.R.C. with the business license No. 140121200005084;

3. Both parties agree that Party A shall have exclusive right to purchase all the products manufactured by Party B, including but without limited to carbon black.

Both Parties agree as follows after friendly consultation based on the principle of equality and mutual benefit:

Article 1 Definitions

1.1 Party A means JIN ZHENG LI TE WEI SI CARBON (TAIYUAN) CO., LTD.

1.2 Party B means Taiyuan Hongxing Carbon Black Co., Ltd.

1.3 Parties means Party A and Party B.

1.4 China or PRC means People’s Republic of China.

1.5 “Products” means all the products Party B produces and manufactures during the term of this Agreement.

  

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1.6 “Cost of the products” means total cost of the products including but not limited to costs for materials, depreciation, freight and other necessary operation expenses, subject to records of accounting books of Party B. This definition is only for the reference and the definite scope of or an accounting term for such cost is subject to auditors’ input.

1.7 “Sale channels” means all distributors, agents and clients of Party B, who buy products directly or indirectly from Party B at least once.

1.8 “Entrusted account” means the entrusted account in name of Party B but controlled by Party A in accordance with the Entrusted Management Agreement, which is entered into by and between Party A, Party B and shareholders of Party B on 【 】 (the “Entrusted Management Agreement”), and  the seals of the entrusted account shall be controlled by Party A; all operating funds of Party B shall be saved at and used through the entrusted account, and all remittance, withdrawal and/or acceptance of money of the entrusted account shall be decided by Party A.

Article 2  Exclusive Purchase Right

 

2.1 Party B hereby grants the sole and exclusive right to Party A of purchasing all the products produced and manufactured by Party B, which shall not be revoked, terminated or amended without Party A’s prior written consent.

2.2 Party B shall not directly or indirectly cause any person or entity other than Party A to obtain the ownership, use right, purchase right and right of as a sale agent via sale, assignment, donation, sponsorship, entrustment, joint-operation, appointing sale agent or any other way.

2.3 Party B shall not impose any mortgage, pledge, security or other encumbrance upon its products without Party A’s prior written consent.

 

Article 3 Price and Payment of the Products

 

3.1 Part A and Party B agree that Party B shall offer the favorable price (the “Favorable Price”), which shall be an amount equal to the total cost of the products including but not limited to costs for materials, depreciation, freight and other necessary operation expenses or other price designated by Party A.

3.2 The Favorable Price shall be adjusted accordingly, subject to Parties’ mutual written agreement, pursuant to the market environment change such as the price rise of raw materials and labor force under the above mentioned cost calculation method in the clause 3.1.

3.3 The total price that Party A pays to Party B for the products shall be the result of quantity of products multiplies the price of the products; the price for each batch of products shall be calculated separately, and Party A may pay the price in accordance with any of the following ways:

     (1) delivery against payment;

     (2) cash on delivery.

 

  

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3.4 The price Party A pays for the products shall be remitted to the entrusted account, which is subject to relevant provisions of the Entrusted Management Agreement.

3.5 The Parties shall be liable for its own taxes and expenses occurring regarding to the payment to the products, and such taxes and expenses shall not be included in the price of the products.

 

 

Article 4  Delivery

 

4.1 The place of delivery shall be the place designated by Party A, including but not limited to Party B’s warehouse, Party A’s warehouse and warehouse of a third party.

4.2 The transportation expense regarding the delivery shall be borne by Party B.

 

Article 5  Quality and Acceptance of The Products and After-sale Service

 

5.1 Party B shall produce the products in accordance with the standards provided by Party A. Party A shall have right to inspect and examine the producing in Party B’s plant from time to time and Party B shall provide convenience

5.2 Party A shall have right to inspect all or part of the delivered products and return the unqualified products to Party B and require for refund accordingly.

5.3 Party B shall provide the products need after-sale services such as technical support or maintenance as needed by costumers and bear relevant expenses.

 

Article 6  Separate Agreements and Other Terms and Conditions

 

6.1 Separate agreements (“Separate Agreement”) shall be entered into between both Parties for each of the sales contracts of the products by Party B.

6.2 Each Separate Agreement shall be subject to this Agreement.

Article 7  Sale Channels

 

7.1 Party B shall provide all existing sale channels to Party A and assist with Party A in promoting new sale channels.

7.2 Party B shall make products promotion and advertisements positively as required by Party A.

 

 

  

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Article 8  Representations and Warranties

 

Either party represents or warrants to the other party as of the date of this Agreement that:

8.1 It has the right to enter into this Agreement and the ability to perform the same fully;

8.2 Each party shall not attribute any reasons that will prevent this Agreement from becoming a binding and effective agreement between both parties as of the execution date;

8.3 The execution and delivery of this Agreement by each party have been duly authorized by all necessary internal corporate action and discussion, and will not:

(a) violate any provision of the business license, articles of association nor other similar documents of its own;

(b) violate any provision of the laws and regulations of PRC or other governmental or regulatory authority or approval;

(c) violate or result in a breach of any contract or agreement to which the party is a party or by which it is bound.

 

Article 9  Effectiveness, Modification and Termination

 

9.1 This Agreement shall take effective after it is duly signed by the authorized representatives of the parties hereto and sealed by each party.

9.2 The term of this Exclusive Purchase Agreement shall be from the effective date of this agreement to the earlier of the following:

 

(a) The winding up of Party B, or

(b) The termination date determined by the Parties hereto; or

(c) The date on which Party A completes the acquisition 100% of shares of Party B.

9.3 Unless otherwise provided herein, neither Party A nor Party B may modify or terminate the Agreement prior to the expiration unless written agreement is reached based on negotiation of both Parties; terms and conditions under this Agreement shall remain effective until such written agreement is reached.

Article 10 Liabilities for Breach of Agreement

 

10.1 During the valid term of this Agreement, any violation of any provisions herein by either party shall constitute a breach of contract and the breaching party shall compensate the other party for any loss incurred as a result of this breach.

 

 

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Article 11  Force Majeure

11.1  The failure of either party to perform all or part of the obligations under this Agreement due to any Force Majeure shall not be deemed as breach of contract. The affected party shall present promptly valid evidence of such Force Majeure, and the failure of performance shall be settled through consultations between the parties hereto.

Article 12  Assignment

12.1  No party may assign or delegate any of the rights or obligations under this Agreement to any third party and such transfer shall be void and enforceable unless and until receipt of written consent with express statement from the other party.

Article 13  Governing Law

13.1  The execution, validity, interpretation, and performance of this Agreement shall be governed by the laws and regulations of the People’s Republic of China.

Article 14  Settlement of Disputes

14.1  Any dispute under this Agreement shall be firstly settled through friendly consultation between the parties hereto. In case that no settlement can be reached through consultation, each party may submit such dispute to China International Economic and Trade Arbitration Commission in accordance with its rules located in Beijing. The arbitration award shall be final and binding on both parties.

Article 15  Severability

15.1  Any provision of this Agreement that is invalid or unenforceable due to the laws and regulations shall be void and enforceable without affecting in any way the remaining provisions hereof.

Article 16  No-waiver of Rights

16.1  Any failure or delay by any party in exercising its rights under this Agreement shall not constitute a waiver of such right.

16.2  Any failure of any party to require the other party to perform its obligations under this Agreement shall not be deemed as a waiver of its right to require the other party to perform such obligations.

16.3 If a party waives the compliance of certain provisions by other party under this Agreement, such waiver shall not be deemed to waiver of any future compliance of the same provision by the other party.

 

 

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Article 17  Headings

17.1  The headings contained in this Agreement are for reference purpose only and shall not affect in any way the meaning or interpretation of this Agreement.

Article 18  Entire Agreement

18.1  This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereto and supersedes all previous agreements and understandings, whether written or oral between the parties regarding the subject matter hereto. Unless expressly provided herein, other condition, definition, warranty or declaration with respect to the subject matter hereto shall have no binding on either Party.

Article 19  Miscellaneous

 

 

19.1  This Agreement is executed by Chinese and English. The Chinese version shall prevail over the English version in the event of conflicts or inconsistencies between the two language versions. Each of the Chinese and English versions of this Agreement shall be executed in two originals. Each party may hold two originals of each version.

 

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

PARTY A: Jin Zheng Li Te Wei Si Carbon (Taiyuan) Co., Ltd.

 

        (Seal)

 

 

Legal Representative/Authorized Representative

 

(Signature):                                                        

 

PARTY B: Taiyuan Hongxing Carbon Black Co., Ltd.

 

(Seal)

 

 

Legal Representative/Authorized Representative

 

(Signature):                                                        

 

 

 

 

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