Document:

exh10-61.htm

Exhibit 10.61

 

THE SECURITIES EVIDENCED BY THIS STOCK OPTION AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR OTHERWISE DISPOSED OF WITHOUT (i) EFFECTIVE REGISTRATION STATEMENT RELATED THERETO, (ii) AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE CORPORATION, THAT SUCH REGISTRATION IS NOT REQUIRED, OR (iii) RECEIPT OF NO-ACTION LETTERS FROM THE APPROPRIATE GOVERNMENTAL AUTHORITIES.

STOCK OPTION AGREEMENT

This Stock Option Agreement (the “Agreement”) is made and entered into as of September 30, 2013 by and between CD International Enterprises, Inc., a Florida corporation (the “Corporation”) with its principal place of business at 431 Fairway Drive, Suite 200, Deerfield Beach, FL  33441 and Yuejian (James) Wang, Ph.D., a individual (the “Optionee”) whose address is in care of 431 Fairway Drive, Suite 200, Deerfield Beach, FL  33441.

WHEREAS, the Optionee is the Corporation’s Chief Executive Officer and a member of its Board of Directors.

WHEREAS, the Corporation and the Optionee are parties to that certain Employment Agreement Amendment dated as of September 30, 2013 (the “Employment Agreement Amendment”) pursuant to which the Corporation agreed to grant the Optionee options to purchase the Corporation’s common stock, par value $0.0001 per share (the “Common Stock”) as additional compensation to the Optionee.

NOW, THEREFORE,  in consideration of the mutual promises set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1.           Recitals.  The foregoing recitals are true and correct and incorporated herein by such reference.

2.           Grant of Option.  Pursuant to the terms of the Employment Agreement Amendment, subject to the terms of this Agreement the Corporation hereby grants the Optionee an a option (the “Option”) to purchase an aggregate of six million (6,000,000) shares of the Corporation’s Common Stock.  The Option will become vested and exercisable as follows.

Vesting date                                           No. of Shares Underlying Option

September 30, 2014                                                      3,000,000

September 30, 2015                                                      3,000,000

September 30, 2016                                                      3,000,000

Once vested, that portion of the Option is immediately exercisable for a period of three (3) years terminating at 5:00 p.m., New York time on the third anniversary of the vesting date.  Any portion of the Option which is not exercised by the termination date will lapse and the Optionee shall have no further rights thereto.

3.           Exercise Price; Method of Exercise.

a.           The price at which the Option may be exercised is $0.05 per share (the “Exercise Price”).  If the Corporation shall at any time after the date hereof but prior to the expiration of the Option subdivide its outstanding securities as to which unexercised purchase rights under this Option exist, by split-up or otherwise, or combine its outstanding securities as to which unexercised purchase rights under this Option exist, the number of shares of Common Stock as to which this Option is exercisable as of the date of such subdivision, split-up or combination shall forthwith be proportionately increased in the case of a subdivision, or proportionately decreased in the case of a combination.  Appropriate adjustments shall also be made to the Exercise Price, but the aggregate purchase price payable for the total number of shares of Common Stock purchasable under this Option as of such date shall remain the same.

  

  

  

b.           Once vested, this Option may be exercised, in whole or in part, from time to time by the Optionee, during the term hereof, by delivery of the Notice of Exercise attached hereto as Annex I, duly completed and executed by the Optionee, to the Corporation at the principal executive offices of the Corporation, together with payment in the amount obtained by multiplying the Exercise Price then in effect by the number of shares of Common Stock thereby purchased, as designated in the Notice of Exercise.  Payment may be in cash, wire transfer or by check payable to the order of the Corporation in immediately available funds.  If not exercised in full, this Option must be exercised for a whole number of shares of Common Stock.

c.           Within a reasonable time after exercise, in whole or in part, of this Option pursuant to the terms hereof, the Corporation shall issue in the name of and deliver to the Optionee a certificate or certificates for the number of fully paid and nonassessable shares of Common Stock which the Optionee shall have requested in the Notice of Exercise.

4.           Restricted Securities.  The Optionee understands that this Option and the shares of Common Stock purchasable hereunder constitute “restricted securities” under the federal securities laws inasmuch as they are, or will be, acquired from the Corporation in transactions not involving a public offering and accordingly may not, under such laws and applicable regulations, be resold or transferred without registration under the Securities Act of 1933, as amended (the “Act”), or an applicable exemption from such registration.  The Optionee further acknowledges that a securities legend to the foregoing effect shall be placed on any shares of Common Stock issued to the Optionee upon exercise of this Option.

5.           Transferability; Rights of a Shareholder.  The Option is non-transferable and may be exercised, in whole or in part, during the exercise period, only by the Optionee, subject to the laws of descent and distribution.  No rights or privileges of a shareholder of the Corporation are conferred by reason of the grant of the Option to the Optionee.  The Optionee will have no rights of as a shareholder of the Corporation as to the shares of Common Stock issuable upon the exercise of this Option until the Optionee shall delivered the exercise notice to the Corporation and the Corporation shall have received the Exercise Price of the Option in cleared funds.

6.           Tax Liability and Withholding.  Notwithstanding any action the Corporation takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding (the “Tax-Related Items”), the ultimate liability for all Tax-Related Items is and remains the Optionee’s responsibility and the Corporation (a) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with the granting, vesting or exercise of this Option or the subsequent sale of any shares of Common Stock acquired on exercise; and (b) does not commit to structure the Option to reduce or eliminate the Optionee’s liability for Tax-Related Items.

7.           Amendment or Assignment; Entire Agreement.  No modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is evidenced by a written instrument, executed by the party against which such modification, waiver, amendment, discharge, or change is sought.  This Agreement contains all of the understandings and agreements of the parties with respect to the subject matter discussed herein.  All prior agreements, whether written or oral, are merged herein and shall be of no force or effect.

8.           Notices.  All notices, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly given on the day when delivered in person or transmitted by confirmed facsimile transmission or on the third calendar day after being mailed by United States registered or certified mail, return receipt requested, postage prepaid, to the addresses herein above first mentioned or to such other address as any party hereto shall designate to the other for such purpose in the manner herein set forth.

  

  

  

9.           Severability.  The invalidity, illegality or unenforceability of any provision or provisions of this Agreement will not affect any other provision of this Agreement, which will remain in full force and effect, nor will the invalidity, illegality or unenforceability of a portion of any provision of this Agreement affect the balance of such provision.  In the event that any one or more of the provisions contained in this Agreement or any portion thereof shall for any reason be held to be invalid, illegal or unenforceable in any respect, this Agreement shall be reformed, construed and enforced as if such invalid, illegal or unenforceable provision had never been contained herein.

10.           Construction and Enforcement.  This Agreement shall be construed in accordance with the laws of the State of Florida, without and application of the principles of conflicts of laws.  Any legal suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby shall be instituted exclusively in a federal or state court of competent jurisdiction located in the County of Broward, State of Florida.  Each of the parties hereto hereby: (i) waives any objection which it may now have or hereafter have to the venue of any such suit, action or proceeding, and (ii) irrevocably consents to the jurisdiction of such courts in any such suit, action or proceeding.  The parties further agree to accept and acknowledge service of any and all process which may be served in any such suit, action or proceeding and agree that service of process upon a party mailed by certified mail to such party’s address shall be deemed in every respect effective service of process upon such party in any such suit, action or proceeding.  Each of the parties waives any right to object to the jurisdiction, the venue of either of such courts, or to claim any such court is an inconvenient forum.

11.           Binding Nature, No Third Party Beneficiary. The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties, and their respective successors and assigns, and is made solely and specifically for their benefit.  No other person shall have any rights, interest or claims hereunder or be entitled to any benefits under or on account of this Agreement as a third-party beneficiary or otherwise.

12.           Effectiveness  The Option will become effective upon Optionee’s acknowledgment of the terms and conditions of this Agreement and his delivery to the Corporation of a signed counterpart of this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

CD INTERNATIONAL ENTERPRISES, INC.

 

        By: /s/Andrew Goldrich

                        Print name: Andrew Goldrich

                            Authorized Person

The foregoing is acknowledged and agreed

to this _________ day of _________, 2013

_________________________________

Yuejian (James) Wang, Ph.D.

  

  

  

ANNEX I

 

NOTICE OF EXERCISE

 

To:           CD International Enterprises, Inc.

 

1.           The undersigned hereby elects to purchase _____________ shares of common stock, $0.001 par value per share (the “Shares”) of CD International Enterprises, Inc., a Florida corporation (the “Corporation”), pursuant to the terms of the attached Option, and tenders herewith payment of the Exercise Price pursuant to the terms of the Option.

 

2.           Please issue and deliver certificates representing the Shares purchased hereunder to the undersigned in the following denominations: _________________________________________.

 

3.           I am an accredited investor as that term is defined in the Securities Act of 1933, as amended.

 

Dated:  _______________

[signature]

Yuejian (James )Wangexh10-1.htm

Exhibit 10.1

 

Shanxi Gu County Jinwei Magnesium Industry Co., Ltd.

Equity Transfer Agreement

Seller: Asian Magnesium Industry Co., Ltd. (“Party A”)

Buyer: Tianjin Zhengtai Xinyuan Trading Co., Ltd. (“Party B”)

WHEREAS,

	
1.

	
At the effective date of this agreement, Shanxi Gu County Jinwei Magnesium Industry Co., Ltd. (“target company”) has a register capital of RMB 69,417,600 Yuan, the company is a legally registered limited corporation.

	
2.

	
Party A holds 52% of the target company’s equity.

	
3.

	
Party A decides to sell the target company’s 52% equity to Party B. For mutual benefit of both parties, Party A and Party B decide to enter the following agreement.

	
  

	
A.

	
Definition

The following words and phrases shall be explained as follows:

	
  

	
1.

	
“Transfer” means the transfer of target company’s equity between Party A and Party B mentioned in Term B.

	
  

	
2.

	
“Target Equity” means the 52% equity of the target company that transferred from Party A to Party B and its shareholder rights.

	
  

	
3.

	
“Completion Date” means the date both parties finish the industry and commerce registration pursuant to Term C.1

	
  

	
B.

	
Equity Transfer

	
  

	
1.

	
Party A shall transfer its owned 52% equity of the target company to Party B with its shareholder rights.

	
  

	
2.

	
Party B agrees to purchase the target equity and bear the related responsibilities.

	
  

	
C.

	
Equity Delivery

	
  

	
1.

	
The target company is a limited responsibility corporation; this agreement shall be reviewed and authorized by Commercial Bureau of Shanxi Province. Both Parties shall ask the target company to register Party B’s information on its shareholder list and complete the registration.

	
  

	
2.

	
From the effective date of this agreement, if the registration cannot be finished in 60 days, party B has the right to terminate this agreement and shall not pay for any consideration. Party A shall repay the consideration that already paid by Party B.

	
  

	
D.

	
Consideration and Payment Method

	
  

	
1.

	
The consideration of the target equity is RMB 7,280,000 Yuan.

	
  

	
2.

	
Payment Method:

	
  

	
(1)

	
Party B shall pay RMB 3.64 million Yuan to Party A in 7 days after Party A shows the legal proof and certification of the target equity.

	
  

	
(2)

	
Party B shall pay RMB 2.91 million Yuan to Party A at the Completion Date.

	
  

	
(3)

	
The remaining balance of RMB 730,000 Yuan shall be paid in one year after the Completion Date.

  

  

  

	
  

	
(4)

	
The Payments mentioned above shall be converted at the mid currency ration of People’s Bank of China on the date of each payment.

	
  

	
E.

	
Declaration, Guarantee and Promises.

Party A makes following declaration, guarantee and promises to Party B:

	
  

	
1.

	
Party A is a legal shareholder of Target Company and legally owns 52% of the Target Company’s equity and all related supporting documents.

	
  

	
2.

	
Party A has never used the target equity as a pledge.

	
  

	
3.

	
The execution of this agreement with not conflict to any other agreements or guarantees.

	
  

	
4.

	
Party A has the authorization of signing and executing this agreement.

	
  

	
5.

	
Party A agrees the guarantee and promises mentioned above are the precondition of the effectiveness of this agreement.

	
  

	
6.

	
The declaration, guarantee and promises mentioned above will remain effective after signing this agreement.

Party B makes following declaration, guarantee and promises to Party A:

	
  

	
1.

	
Party B will follow the terms of this agreement and pay the consideration as scheduled to Party A.

	
  

	
2.

	
The declaration, guarantee and promises mentioned above will remain effective after signing this agreement.

	
  

	
F.

	
Transition

	
  

	
1.

	
Both Parties shall form a team to operate this transfer.

	
  

	
2.

	
Party A shall maintain the normal operation of the target company during the transition.

	
  

	
3.

	
Party B has the right to further investigate the target company, and stop any activity that may harm the target company during the transition.

	
  

	
G.

	
Breach

	
  

	
1.

	
Either Party shall not hide or transfer the asset of the target company.

	
  

	
2.

	
Party A shall fully clear its liabilities; otherwise, Party B has the right to deduct it from the consideration.

	
  

	
3.

	
If Party B fails to pay the consideration as scheduled, the penalty shall be 20% of the breach payment.

	
  

	
H.

	
Confidential

	
  

	
I.

	
Majeure

Any unsuccessful execution of this agreement caused by majeure shall not be deemed as breach.

	
  

	
J.

	
Dispute

Any dispute caused by executing this agreement shall be discussed by both parties first, if the dispute cannot be solved, the dispute can be arbitrated by Taiyuan Arbitration Committee. The arbitration shall be the final decision and bind to both parties.

  

  

  

	
  

	
K.

	
Miscellaneous

	
  

	
1.

	
As of the date of execution, this Agreement is legally binding to both parties, all rights and obligations under the terms of this Agreement may not be change unless with written approvals from both parties.

	
  

	
2.

	
Any items not covered under this Agreement, the parties may consult and sign amendments to this Agreement, as the Agreement's amendment and annex, shall have the same legal force as this Agreement.

	
  

	
3.

	
If any part of the terms or contents of this Agreement is deem null or void, all other terms of the Agreement shall not be affected.

	
  

	
4.

	
This Agreement is effective as of the date of sign and seal by the legal representative or authorized representative of both parties.

	
  

	
5.

	
This Agreement shall have ten copies of the same format, Party A and Party B shall hold two copies, two copies shall be submitted to approving authorities, Target company shall hold six copies, all copies are equally legally binding.

	
  

	
6.

	
This Agreement shall be effective after the review and approval from the approving authorities.

	
  

	
7.

	
This Agreement is signed on September 28, 2013, at Shanxi Gu County.

(No Text Below)

	
Party A:

 

SEAL

Authorized Representative:

/s/ Xiaowen Zhuang

	
Party B:

 

SEAL

Authorized Representative:

/s/ Ruiqiang Zhu

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