Document:

ex_256656.htm

 

Exhibit 10.1

 

SUPPLEMENTAL RETIREMENT AGREEMENT

 

THIS AGREEMENT (the “Agreement”), is made by and between SENECA FOODS CORPORATION, a New York corporation (“Seneca” or the “Company”), and TIMOTHY J. BENJAMIN (“Executive”).

 

WHEREAS, Executive has voluntarily announced his retirement as Chief Financial Officer of the Company effective on March 31, 2023; and

 

WHEREAS, the Company hereby agrees to pay supplemental retirement benefits to Executive upon his retirement on the Separation Date;

 

NOW, THEREFORE, in view of the premises and in consideration of the agreements and mutual covenants herein set forth, the parties, intending to be legally bound, hereby agree as follows:

 

1.    Definitions. 

 

For purposes of this Agreement, the following terms will have the meanings stated below:

 

(a)    “Benefit” means the supplemental retirement benefit payable to Executive pursuant to the terms of this Agreement, as described in Section 2.

 

(b)    “Beneficiary” means the beneficiary designated by Executive pursuant to Section 5.

 

(c)    “Cause” means (i) Executive’s engagement in gross negligence, willful misconduct in the performance of his material duties or material responsibilities; (ii) Executive’s failure after written notice to perform his duties or his material breach of any agreement relating to his employment that remains uncured for 7 days after notice to Executive of such failure or breach; or (iii) Executive is charged with or indicted for a felony.

 

(d)    “Code” means the Internal Revenue Code of 1986, as amended, and any successor thereto.

 

(e)    “Code Section 409A” means Section 409A of the Code and the regulations and guidance promulgated thereunder.

 

(f)    “Committee” means the Compensation Committee of the Company’s Board of Directors, as constituted from time to time.

 

1

 

 

(g)  “Disability” means (i) Executive’s inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) Executive’s receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.

 

(h)   “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

 

(i)    “Good Reason” means:

 

(A)    a material reduction in Executive’s base salary or bonus opportunity;

 

(B)    a relocation of Executive’s principal place of employment by more than 50 miles;

 

(C)    any material breach by the Company of any provision of this Agreement or any other agreement between Executive and the Company;

 

(D)    a materially adverse change in Executive’s title, authority, duties or responsibilities; or

 

(E)    a material adverse change in the reporting structure or relationships applicable to Executive.

 

2.    Supplemental Retirement Benefit. 

 

(a)   The Company shall pay the Benefit (as defined in subsection (b)) to Executive, or to his Beneficiary in the event of Executive’s death, on the earliest to occur of the following:

 

(i)    Executive’s termination of employment after March 31, 2023 for any reason, after having worked for the Company continuously from the date of this Agreement through March 31, 2023;

 

(ii)    Executive’s termination by the Company without Cause before March 31, 2023;

 

(iii)    Executive’s termination of employment prior to March 31, 2023 for Good Reason; or

 

2

 

 

(iv)    Executive’s death or Disability while employed by the Company before March 31, 2023.

 

As used herein, the “Separation Date” means the date of Executive’s termination of employment in a manner described in this Section 2(a) or in Section 4(b).

 

(b)   The “Benefit” payable hereunder shall be a supplemental retirement benefit in the aggregate amount of two hundred and forty thousand dollars ($240,000), payable in 24 equal monthly installments of $10,000 each, beginning with the first month that begins after the Separation Date and continuing for the succeeding twenty-three months, each installment to be paid on or about the first day of the month.

 

(c)  If Executive is entitled to receive the Benefit but dies before receiving the full Benefit, the remaining installments shall be paid to the Beneficiary he designates pursuant to Section 5 hereof. If the Beneficiary is an individual and dies before receiving all the remaining installments, such unpaid installments shall be paid to the Beneficiary’s estate.

 

(d)   Before terminating his employment for Good Reason, Executive shall provide the Company with written notice of the existence of the circumstances alleged to constitute Good Reason and a reasonable opportunity to cure such circumstances.

 

3.    Equity Based Awards.

 

If Executive’s employment terminates in any of the circumstances described in Section 2(a) or Section 4(b), and notwithstanding any contrary provisions of the applicable equity award agreements, all of Executive’s unvested restricted shares outstanding on the Separation Date shall become vested as of the Separation Date; provided, that with respect to any restricted shares that constitute nonqualified deferred compensation subject to Code Section 409A and that are not permitted to be paid at the vesting without triggering a tax or penalty under Code Section 409A, the payment of such restricted shares shall be made at the earliest time permitted under the applicable stock plan and award agreement that will not trigger a tax or penalty under Code Section 409A.

 

4.    Continued Advisory Services.

 

(a)  If Executive remains employed by the Company until March 31, 2023 and becomes entitled to the Benefit, Executive further agrees to continue as an employee of the Company after such date and until June 30, 2023; provided, that:

 

(i)    Executive shall not be required to perform services on a full-time basis during this period ̧ but only to be available to provide such reasonable consulting and advisory services as may be requested by the Company and are reasonably consistent with Executive’s status as a former senior executive of the Company; and

 

3

 

 

(ii)    During this period, Executive will continue to be paid his base salary and to be covered by such benefit plans and program as were in effect as of March 31, 2023.

 

(b)   If Executive performs additional services in accordance with this Section 4, his Separation Date will be the last date on which he performs such services as an employee.

 

5.    Designation of Beneficiary. 

 

Executive may designate a beneficiary to receive the remaining installments of the Benefit in the event Executive dies before receiving the full Benefit, by delivering a written notice to the Company stating the name and address of the beneficiary and such other information as the Company reasonably requests. The beneficiary so designated is referred to herein as the “Beneficiary”. If no designation is duly made by Executive, Executive’s Beneficiary will be his spouse or, if Executive is unmarried at the time of his death, Executive’s estate.

 

6.    Health Benefits; COBRA.

 

Upon his termination of employment with the Company, Executive will have the right to elect to continue to participate in the Company’s group health plan under applicable COBRA regulations. If Executive’s employment terminates in any of the circumstances described in Section 2(a) or Section 4(b), and Executive elects such COBRA coverage, the Company will pay the same portion of such COBRA premium that it then pays for active employees for a period of eighteen (18) months following the Separation Date. Executive must pay the remaining portion of the COBRA premiums during such period and, if applicable, the full premium thereafter. In accordance with applicable COBRA regulations, Executive’s COBRA coverage will end and no further coverage will be due if Executive becomes eligible for coverage under another group health plan at any time within eighteen months following the Separation Date. Upon expiration of COBRA coverage for any reason, the Company will no longer be responsible for providing health coverage to Executive in any form.

 

7.    Funding.

 

(a)  The Benefit payable under this Agreement will be “unfunded,” as that term is used in Sections 201(2), 301(a)(3), 401(a)(1) and 4021(b)(6) of ERISA with respect to unfunded plans maintained primarily for the purpose of providing deferred compensation to a select group of management or highly compensated employees.

 

4

 

 

(b)  The Benefit paid under this Agreement shall be paid from the general assets of the Company, and neither Executive, his Beneficiary nor his or their heirs or successors shall have any status greater than unsecured general creditors of the Company, and no such person shall have any special or prior right to any assets of the Company for payment of the Benefit or any other any obligation hereunder.

 

8.    Administration. 

 

The Committee shall be the “plan administrator” with respect to the Benefit provided under this Agreement. As plan administrator, the Committee will have full power, authority and discretion to (i) supply omissions, reconcile inconsistencies and to otherwise interpret this Agreement, (ii) prescribe, amend and rescind any rules, forms and procedures as it deems necessary or appropriate for the proper administration of this Agreement, and (iii) make other determinations and take other such actions as it deems necessary or advisable in carrying out its duties under this Agreement. All actions taken by the Committee as plan administrator in connection with the administration of this Agreement or any rules adopted hereunder will be final, conclusive and binding upon Executive, the Beneficiary, and their respective heirs, successors and assigns.

 

9.    Claims Procedure.

 

Pursuant to the requirements of ERISA, any claim for benefits under this Agreement will be reviewed and determined in accordance with regulations of the United States Department of Labor stated at 29 CFR §2560.503-1, as such regulations may be amended from time to time, as follows:

 

(a)   In General. If Executive believes that he is being denied any rights or benefits under this Agreement, he may file a claim in writing with the Committee as Plan Administrator. If any such claim is wholly or partially denied, the Committee as Plan Administrator will notify Executive of its decision in writing. Such notification will contain (1) specific reasons for the denial, (2) specific reference to pertinent provisions of this Agreement, (3) a description of any additional material or information necessary for Executive to perfect such claim and an explanation of why such material or information is necessary, and (4) information as to the steps to be taken if Executive wishes to submit a request for review. Such notification will be given within 90 days after the claim is received by the Committee as Plan Administrator (or within 180 days, if special circumstances require an extension of time for processing the claim and if written notice of such extension and circumstances is given to Executive within the initial 90-day period). If such notification is not given within the specified period, the claim will be deemed denied and Executive may then appeal the denial of his claim.

 

5

 

 

(b)   Appeals. Within 60 days after the date on which Executive receives a written notice of a denied claim (or, if applicable, within 60 days after the date on which denial is deemed to have occurred) Executive (or his duly authorized representative) may (1) file a written request with the Committee as Plan Administrator for a review of his denied claim and of pertinent documents and (2) submit written issues and comments to the Committee as Plan Administrator. The Committee as Plan Administrator will notify Executive of its decision on review in writing. Such notification will be written in a manner calculated to be understood by Executive and will contain specific reasons for the decision as well as specific references to pertinent provisions of this Agreement. The decision on review will be made within 60 days after the request for review is received by the Committee as Plan Administrator (or within 120 days, if special circumstances, such as an election by the Committee as Plan Administrator to hold a hearing, require an extension of time for processing the request, and if written notice of such extension and circumstances is given to Executive within the initial 60-day period). If the decision on review is not made within such period, the claim will be considered denied.

 

10.    Code Section 409A Compliance. 

 

(a)   Notwithstanding anything herein to the contrary, this Agreement is intended to be interpreted and operated to the fullest extent possible so that the payments under this Agreement either shall be exempt from the requirements of Code Section 409A or shall comply with the requirements of such provision.

 

(b)   To the extent required to avoid the imposition of additional taxes and penalties under Code Section 409A, amounts payable under this Agreement on account of any termination of employment shall only be paid if Executive experiences a “separation from service” as defined in Code Section 409A unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”

 

(c)   For purposes of this Agreement, the right to a series of installment payments shall be treated as a right to a series of separate payments within the meaning of the Code Section 409A.

 

(d)  If Executive is a “specified employee” within the meaning of Code Section 409A as of the Separation Date, no amount that constitutes a deferral of compensation which is payable on account of Executive’s separation from service shall be paid to Executive before the date (the “Delayed Payment Date”) which shall be (i) the first day of the seventh month after the date of Executive’s separation from service or (ii) the date of Executive’s death following such separation from service, if earlier. All such amounts that would, but for this Section 9(d), become payable prior to the Delayed Payment Date will be accumulated and paid on or about the Delayed Payment Date.

 

6

 

 

(e)   Notwithstanding anything herein to the contrary, the reimbursement of expenses or in-kind benefits provided pursuant to this Agreement shall be subject to the following conditions: (i) the expenses eligible for reimbursement or in-kind benefits in one taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits in any other taxable year; (ii) the reimbursement of eligible expenses or in-kind benefits shall be made promptly, subject to Company’s applicable policies, but in no event later than the end of the year after the year in which such expense was incurred; and (iii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit

 

(f)   The Company intends that income provided to Executive pursuant to this Agreement will not be subject to taxation under Section 409A of the Code. The provisions of this Agreement shall be interpreted and construed in favor of satisfying any applicable requirements of Code Section 409A. However, the Company does not guarantee any particular tax effect for income provided to Executive pursuant to this Agreement. In any event, except for the Company’s responsibility to withhold applicable income and employment taxes from compensation paid or provided to Executive and to make all payments in accordance with the terms of this Agreement, the Company shall not be responsible for the payment of any applicable taxes on compensation paid or provided to Executive pursuant to this Agreement. If Executive notifies the Company (with specificity as to the reason therefor) that Executive believes that any provision of this Agreement would cause Executive to incur any additional tax or interest under Code Section 409A and the Company concurs with such belief or the Company (without any obligation whatsoever to do so) independently makes such determination, the Company shall, after consulting with Executive, reform such provision to try to comply with Code Section 409A through good faith modifications to the minimum extent reasonably appropriate to conform with Code Section 409A. To the extent that any provision hereof is modified in order to comply with Code Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to Executive and the Company of the applicable provision without violating the provisions of Code Section 409A.

 

11.   Miscellaneous Provisions.

 

(a)   Entire Agreement. This Agreement represents the entire agreement between the parties hereto relating to the subject matter hereof, and merges and supersedes all prior and contemporaneous discussions, agreements and understandings of every nature regarding that subject matter.

 

7

 

 

(b)   Employment Status. This Agreement does not constitute a contract of employment or impose upon Executive any obligation to remain as an employee, nor does it impose on the Company any obligation (i) to retain Executive as an employee or (ii) to limit in any respect the right of the Company to discharge Executive at any time for any reason.

 

(c)  Non-alienation. Except as expressly provided herein with respect to payment to a Beneficiary in the event of Executive’s death, the rights and interests of Executive under this Agreement will not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge or encumbrance by Executive or any person claiming under or through Executive, nor will they be subject to the debts, contracts, or liabilities of Executive or anyone else prior to payment.

 

(d)   Notices. Any notices provided hereunder must be in writing, and such notices or any other written communication will be deemed effective upon the earlier of personal delivery (including personal delivery by facsimile) or the third day after mailing by first class mail, to the following addresses:

 

(i)    If to the Company:

 

 Seneca Foods Corporation

 3736 South Main Street

 Marion NY 14505

 Attn.: Chief Executive Officer

 

(ii)   If to Executive:

 

 7129 Dominica Drive

 Naples, FL 34113

 

(e)   Legal Construction. All questions concerning the construction, validity and interpretation of this Agreement will be governed by the laws of the State of New York, without regard to such state’s conflict of laws rules, to the extent that such laws are not preempted by ERISA.

 

(f)    Amendment. This Agreement may only be amended by a writing signed by each of the parties hereto.

 

(g)   Counterparts. This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same Agreement.

 

[Intentionally Left Blank; Signature Page Follows]

 

8

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the respective dates written below.

 

	
			Dated: June 11, 2021

				
			SENECA FOODS CORPORATION

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	
			 

				
			By: /s/  Paul L Palmby

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			Name: Paul L. Palmby

				
			 

			
	
			 

				
			Title: President and Chief Executive Officer

				
			 

			
	 	 	 	 
	 	 	 	 
	Dated: June 11, 2021	EXECUTIVE	 
	 	 	 	 
	 	By: /s/ Timothy J. Benjamin	 
	 	 	 	 
	 	Timothy J. Benjamin	 

 

9Exhibit
10.1

 

Among

 

Shineco
Inc.

 

Beijing
Tenet Jove Technological Development Co., Ltd.

 

Ankang
Changshou Pharmaceutical Group

 

Jiping
Chen

 

Xiaoyan
Chen

 

And

 

Yushe
County Guangyuan Forest Development Co., Ltd.

 

Baolin
Li

 

Yufeng
Zhang

 

 

 

Restructuring
Framework Agreement

 

 

 

Date:
June 8, 2021

 

    	 

     

    

 

Restructuring
Framework Agreement

 

This
Restructuring Framework Agreement (this “Agreement”) is made and entered into by and among the following parties on June
8, 2021.

 

(1)
Shineco Inc., a company established and validly existing under the laws of the State of Delaware, the address is 15 Northeast Avenue,
Dover, Kent, Delaware (“Listed Company”);

 

(2)
Beijing Tenet Jove Technological Development Co., Ltd., a company established and validly existing under the laws of People’s Republic
of China, the address is No.1008, Floor 9, Building 1, No. 2 Yard, Boxing 9th Road, Economic and Technological Development Zone, Beijing;
(“Tenet Jove”)

 

(3)
Ankang Changshou Pharmaceutical Group, a company established and validly existing under the laws of People’s Republic of China,
the address is No. 31, Daqiao Road, Ankang City, Shaan Xi Province; (“Ankang”)

 

(4)
Jiping Chen, ID number is [*], the contact address is [*];

 

(5)
Xiaoyan Chen, ID number is [*], the contact address is [*] (collectively referred to as “Ankang Shareholders” with Jiping
Chen);

 

(6)
Yushe County Guangyuan Forest Development Co., Ltd., a company established and validly existing under the laws of People’s Republic
of China, the address is Zhaojia Village, Haobei Town, Yushe County, Jinzhong City, Shanxi Province;

 

(7)
Baolin Li, ID number is [*], the contact address is [*];

 

(8)
Yufeng Zhang, ID number is [*], the contact address is [*].

 

Each
of above Parties shall be referred to as a “Party” respectively, and they shall be collectively referred to as the “Parties”.

 

Whereas,

 

1.
The Listed Company is a company listed on the Nasdaq Stock Exchange in the United States, under the code NASDAQ: TYHT.

 

2.
Tenet Jove is a wholly-owned subsidiary established in Beijing by the Listed Company.

 

3.
Ankang and Ankang Shareholders signed a full set of VIE agreements (including Exclusive Option Agreement, Exclusive Business Cooperation
Agreement, Equity Interest Pledge Agreement, and Power of Attorney) with Tenet Jove on December 31, 2008, and the Listed Company owns
100 % Control right of Ankang (“VIE Agreements”).

 

4.
Baolin Li holds 90% shares of Guangyuan, and Yufeng Zhang holds 10% shares of Guangyuan.

 

5.
The Parties agree to reorganize the Listed Company (as defined above) in accordance with this agreement (“this Restructuring”).

 

In
consideration of the mutual covenants and agreements set forth in this Agreement, the Parties hereto agree as follows:

 

    	 

     

    

 

Article
1 This Restructuring arrangement

 

1.1
Restructuring Steps

 

The
parties confirm that the parties should carry out the Listed Company restructuring in accordance with the following agreement. Ankang
will be separated from the Listed Company and a certain proportion of the assets of Guangyuan with the same value as the divested Ankang
assets will be merged into the Listed Company (“Restructuring”) :

 

1.1.1
The Listed Company will file the restructuring documents in accordance with the requirements of the SEC and the Nasdaq Exchange and obtain
the approval of the relevant authorities;

 

1.1.2
The Listed Company and the third-party independent professional agency hired by it shall do the due diligence on all the commercial,
financial and legal aspects of Guangyuan, and then they will evaluate the assets of Guangyuan and Ankang, and issue the evaluation reports;

 

1.1.3
Ankang and Ankang Shareholders and Tenet Jove shall sign the termination agreement of VIE Agreements, release all the equity of Ankang
held by the Listed Company and the equity pledge;

 

1.1.4
The Listed Company will obtain the certain proportion of the assets of Guangyuan with the same or a greater value as the divested Ankang
assets the Listed Company held through sighing VIE agreement or an equity transfer agreement by Guangyuan, Guangyuan Shareholders and
Tenet Jove /the Listed Company (the calculation of the ratio is based on the financial statements, audit reports and asset evaluation
reports of Guangyuan and Ankang as stipulated in Article 1.1.2, and the final data shall be confirmed by all parties after necessary
adjustments);

 

1.1.5
The way of the Listed Company to obtain equity control rights of Guangyuan shall be based on the documents ultimately signed by Guangyuan,
the Guangyuan Shareholders and the Listed Company /Tenet Jove.

 

1.2
Restructuring Consideration

 

1.2.1
The Listed Company transfers all the rights of Ankang which acquired through the VIE agreements to Guangyuan shareholders as the consideration
for this restructuring;

 

1.2.2
In order to obtain all the rights and interests of Ankang held by the Listed Company, Guangyuan shareholders shall sign the VIE Agreements
(including Exclusive Option Agreement, Exclusive Business Cooperation Agreement, Equity Interest Pledge Agreement, and Power of Attorney)
with Ankang and Ankang Shareholders and according to the above Equity Interest Pledge Agreement to handle equity pledge registration.
Ankang and Ankang Shareholders shall cooperate with the above matters;

 

1.2.3
The consideration for this restructuring is based on the asset appraisal report of Guangyuan and Ankang as stipulated in Article 1.1.2.

 

    	 

     

    

 

1.3
Reasons for the Restructuring

 

The
three-year development plan of the Listed Company has clarified the industrial development direction of “one core and two main”
industries, mainly to develop the two major industries of comprehensive utilization of industrial hemp and prefabricated construction,
and replace the planting of traditional Chinese medicine and the processing of decoction pieces with forest companies to ensure prefabricated
building materials. Raw material, industrial hemp rod is not only the raw material for processing hemp fiber, but also the rod core can
be reused into wall panels.

 

At
present, the main business of industrial hemp of listed companies is not closely related to the processing of traditional Chinese medicine
decoction pieces, and there is no complementarity with the main industry. Therefore, the concentrated development of industrial hemp
business and the final industrialization must adjust the structure as soon as possible.

 

The
annual pruning of the quick-grown willows of Guangyuan can meet the supply of prefabricated raw materials, greatly reduce the cost of
raw materials and improve economic efficiency. In line with the concept of green development, it can be supported by national industrial
policies and strengthen the company’s economic competitiveness.

 

Article
2 the Condition of Restructuring

 

The
Parties confirmed that the conditions of the Restructuring are as follows:

 

2.1
The statements and guarantees made by the parties in Article 3 of this agreement shall remain true, accurate, complete and not misleading
from the date hereof until the date of completion of Restructuring (including the date of completion of restructuring);

 

2.2
All parties have fulfilled or complied with their commitments, obligations and agreements that should be fulfilled on or before the date
of completion of the Restructuring under this agreement;

 

2.3
The Listed Company has completed all the commercial, financial and legal due diligence of Guangyuan related to this Restructuring, and
the Listed Company shall satisfy with the results of the due diligence;

 

2.4
The Listed Company has obtained the necessary approvals from its board of directors for this restructuring;

 

2.5
Guangyuan and Chengdu Zhongteng Fortune Industrial Co., Ltd. (hereinafter referred to as “Zhongteng”) signed the Cooperation
Intent Agreement on May 16, 2019(hereinafter referred to as the “Cooperation Agreement”). Because it is currently unable
to get in touch with Zhongteng and sign the termination agreement of the Cooperation Agreement. Zhongteng guarantees that Guangyuan has
never performed and will not perform the cooperation agreement within the validity period of the cooperation agreement, and Guangyuan
and Zhongteng do not have any unresolved claims and debts;

 

2.6
As its expired Land Contract Management Rights Contracts, Guangyuan shall renew the contracts and the land management rights held by
Guangyuan shall not less than five years;

 

    	 

     

    

 

2.7
There are no disputes, potential disputes and defects regarding all land contractual management rights held by Guangyuan;

 

2.8
Before the completion of the Restructuring, Guangyuan did not have any significant adverse effects on its business operations, technology,
finance, management and legal status;

 

2.9
From the date hereof until immediately prior to the date of completion of the restructuring, Guangyuan shall not have the following circumstances:
(1) the actual controller of Guangyuan changes; (2) the main business and operation of Guangyuan undergo major changes; (3) Guangyuan
divests its assets; (4) Guangyuan distributes its net profit;

 

2.10
Guangyuan has fully disclosed its business risks, legal disputes, mortgage guarantees, debts and affiliated parties’ relationship
to other Parties.

 

Article
3 Representations and Warranties

 

3.1
Representations and warranties of the Listed Company and Tenet Jove

 

As
the date hereof, the Listed Company and Tenet Jove jointly made the following statements and guarantees to other parties:

 

3.1.1
They have full capacity for civil conduct and civil rights to sign this agreement and perform their obligations under this agreement.
They have obtained necessary authorization for signing this agreement and performing all obligations under this agreement. This agreement
shall be legally binding on them.

 

3.1.2
The signing and performance of this agreement shall not violate the contract or agreement that it has entered in or is binding on them.

 

3.1.3
They shall make best effort to promote the restructuring under the agreement, and will not take any act or omission to hinder or improperly
delay the restructuring under this agreement. In order to perform any provision of this agreement, they shall take all necessary actions
and sign all necessary documents and instruments.

 

3.2
Representations and warranties of Ankang and Ankang Shareholders

 

As
the date hereof, Ankang and its shareholders jointly made the following statements and guarantees to other parties regarding:

 

3.2.1
They have full capacity for civil conduct and civil rights to sign this agreement and perform their obligations under this agreement.
They have obtained necessary authorization for signing this agreement and performing all obligations under this agreement. This agreement
shall be legally binding on them.

 

3.2.2
The signing and performance of this agreement shall not violate the contract or agreement that it has entered in or is binding on them.

 

3.2.3
They shall make best effort to promote the restructuring under the agreement, and will not take any act or omission to hinder or improperly
delay the restructuring under this agreement. In order to perform any provision of this agreement, they shall take all necessary actions
and sign all necessary documents and instruments.

 

    	 

     

    

 

3.3
Representations and warranties of Guangyuan and its shareholders

 

As
the date hereof, Guangyuan and its shareholders jointly made the following statements and guarantees to other parties:

 

3.3.1
They have full capacity for civil conduct and civil rights to sign this agreement and perform their obligations under this agreement.
They have obtained necessary authorization for signing this agreement and performing all obligations under this agreement. This agreement
shall be legally binding on them.

 

3.3.2
The signing and performance of this agreement shall not violate the contract or agreement that it has entered in or is binding on them.

 

3.3.3
They shall make best effort to promote the restructuring under the agreement, and will not take any act or omission to hinder or improperly
delay the restructuring under this agreement. In order to perform any provision of this agreement, they shall take all necessary actions
and sign all necessary documents and instruments.

 

3.3.4
Guangyuan and its shareholders shall not engage in, allow or promote any act or omission that would constitute or cause the statement,
representations or warranties made in Article 3.2 to be untrue, inaccurate or violated.

 

3.3.5
Guangyuan and its shareholders shall take all reasonable efforts to preserve and protect Guangyuan’s assets, operate the main business
of Guangyuan and maintain relationships with suppliers, partners, customers and employees in a manner consistent with past and prudent
business practices, and shall ensure the normal operations of Guangyuan and that there will be no changes in the goodwill and operations
of Guangyuan that will cause significant adverse effects. The “significant adverse effects” under this agreement refers to
any of the following circumstances, changes, or impacts involving Guangyuan or its main business, and such conditions, changes or impacts
(a) affect the existence, business, core assets, liabilities, and Key employees, business performance, or financial conditions are caused
by, or there is sufficient evidence to show that it may cause serious adverse effects; or (b) the qualification, government approval,
license, license or ability of Guangyuan’s current business is generated, or there is sufficient evidence to show that it may cause
serious adverse effects; or (c) it has caused or has sufficient evidence to show that it may have a serious adverse effect on the performance
of the main obligations under the transaction documents of Guangyuan, or has a serious adverse effect on the validity or enforceability
of any transaction document, or has sufficient evidence to show that it may have a serious adverse effect.

 

3.3.6
Guangyuan and its shareholders grant the Listed Company (and its designated third-party intermediaries) the right to contact Guangyuan’s
creditors, customers, partners, financial advisers, accountants and other advisors, and shall assist the Listed Company in obtaining
the relevant information that related to this Restructuring, such as finance, operations and business information of Guangyuan, at its
reasonable request (including but not limited to fully providing all necessary accounts, records, contracts, technical information, personnel
information, management status and other documents related to the restructuring of Guangyuan to the lawyers, accountants, appraisers
and other representatives appointed by the Listed Company). In addition, Guangyuan and its shareholders shall immediately notify the
Listed Company of any litigation, arbitration or administrative procedures related to Guangyuan or its assets, business and/or income
that have occurred or may occur. The access rights provided to the listed company under this agreement and the review of the information
provided by the listed company will not affect or restrict any statements and guarantees made by Guangyuan and its shareholders under
this agreement in any way.

 

    	 

     

    

 

3.3.7
In addition to the discussions on the transactions under this agreement, Guangyuan and its shareholders agree that from the date hereof
until (a) the date of completion of the restructuring, or (b) the termination of this agreement (with the earlier occurrence shall prevail),
Guangyuan and its shareholders and any of its affiliates, officers, directors, representatives or agents shall not (i) solicit, initiate,
consider, encourage or accept any proposal or offer made by any subject regarding the following matters: (A) in connection with any acquisition
or other acquisition of all or any part of Guangyuan’s equity, or the acquisition or other acquisition of Guangyuan’s assets,
(B) any merger, merger or other business alliance with Guangyuan, (C) carry out capital restructuring, structural restructuring or any
other abnormal business transactions involving Guangyuan, or (ii) participate in any discussion, conversation, negotiation and other
exchanges on the foregoing matters, or provide any other subject with any information related to the foregoing matters, or cooperate,
assist or participate in any other way, facilitate or encourage any other subject to attempt to proceed any effort or attempt on the
foregoing matters. Guangyuan and its shareholders themselves shall immediately cease, and shall prompt the termination of all existing
discussions, conversations, negotiations and other exchanges with any subject on any of the foregoing matters before this agreement.
If any such proposal or offer related to the foregoing matters is made or received, or any inquiry or other contact with any subject
regarding the foregoing matters, Guangyuan and its shareholders shall immediately notify the listed company.

 

3.3.8
If any event that may cause a material adverse effect occurs before the completion date of the restructuring, Guangyuan and its shareholders
shall accurately and completely disclose to the listed company within five (5) working days after the occurrence of the relevant event.

 

Article
4 Termination

 

4.1
Condition

 

This
agreement can be terminated in the following ways:

 

4.1.1
The parties can jointly terminate this agreement by a written agreement.

 

4.1.2
This agreement shall be terminated, if:

 

(1)
One party to this agreement has breached the contract, and such breaches have materially affected the continued performance of this agreement,
and the breaching party has not corrected the breach within thirty (30) days after receiving the notice of the observant party’s
request for correction. The observant party has the right to terminate this agreement;

 

(2)
Due to any major changes in applicable laws or their interpretations, or any government agency’s revision, supplementation or cancellation
of applicable laws or their interpretations, the main purpose under this agreement cannot be achieved.

 

4.2
Effect of Termination

 

4.2.1
Unless otherwise specified, If validly terminated pursuant to the above clauses, this Agreement shall forthwith become null and void
and of no further force and effect, other than the Articles 5, 6, 7, 8, 9, and 10, all of which shall survive termination of this
Agreement.

 

    	 

     

    

 

4.2.2
Unless otherwise specified, after the termination of this agreement, the parties to this agreement shall try their best to restore the
state when this agreement was signed based on the principles of fairness, reasonableness, and good faith. Such termination shall not
affect any party’s right or relief to obtain compensation or compensation under this agreement.

 

Article
5 Liability for the breach

 

5.1
Any party has violated any guarantee, promise, agreement or any other provisions under this agreement, or any statement made by any party
under this agreement is untrue, incomplete or misleading (“Breach”, the party in breach is hereinafter referred to as the
“defaulting party”), thereby causing other parties to bear any costs, liabilities or losses (Including but not limited to
the actual losses suffered by the other party, as well as reasonable evidence to prove any loss of profit expected to be obtained, any
interest paid or lost, arbitration fees, attorney fees and all deprived benefits, collectively referred to as “compensable loss”),
the breaching party shall compensate the other party for all the aforementioned compensable losses.

 

5.2
After the completion of due diligence and asset evaluation, except for reasons that the results of due diligence and asset evaluation
are not satisfactory to the listed company, if the restructuring cannot be carried out due to the reasons of Guangyuan and/or the shareholders
of Guangyuan, Guangyuan shall bear any expenses that the listed company has already invested in all asset evaluations, due diligence,
and reasonable evidence to prove that the listed company has invested in the restructuring for the inability to carry out the restructuring.

 

Article
6 Force Majeure

 

6.1
Definition of force majeure

 

Force
majeure refers to an objective situation that cannot be foreseen, unavoidable, and cannot be overcome, including due to earthquakes,
typhoons, floods, fires, wars, and other force majeure events that cannot be foreseen and whose occurrence and consequences cannot be
prevented or avoided, or any changes in laws, regulations, and regulations, or the promulgation of new laws, regulations, and regulations,
or any government action, it affects the performance of this agreement or cannot be performed as agreed.

 

6.2
Effect of force majeure

 

6.2.1
If force majeure occurs and a party affects its performance of any obligations under this agreement due to force majeure, the performance
of such obligations shall be suspended during that period, which period of delay in fulfilling the obligations related to this agreement
due to force majeure, and the performance deadline shall be extended accordingly in accordance with the delay in the performance of the
obligation without any penalty. The party claiming force majeure shall use both mail and express delivery within seven (7) working days
after the occurrence of the force majeure, or within seven (7) working days of the restoration of the telecommunications conditions in
the case of a telecommunications interruption , to notify the other parties of the details of the force majeure, and provide proof of
the occurrence and duration of the force majeure, and at the same time, try to resume the performance of the obligations that are delayed
or hindered due to the force majeure in the shortest possible time.

 

    	 

     

    

 

6.2.2
If the party claiming force majeure fails to notify the other parties and provide appropriate certification in accordance with the above
provisions, it shall not be exempt from the responsibility for failure to perform or delay in performing the obligations under this agreement.
The party affected by the force majeure shall make reasonable efforts to reduce the consequences caused by the force majeure, and resume
all relevant obligations as soon as possible after the force majeure is terminated. If the party affected by the force majeure fails
to resume the performance of the obligations after the reason for suspending the performance of the obligations due to the force majeure
disappears, the party shall be liable to the other parties for this.

 

6.2.3
When force majeure occurs, the parties should immediately negotiate with each other to reach a fair solution, and must make all reasonable
efforts to minimize the consequences of the force majeure.

 

Article
7 Confidentiality

 

7.1
Scope of confidentiality

 

The
parties agree to keep the following information confidential: the existence, content and signature of this agreement and its attachments,
the trade secrets and technical secrets of the other party learned by each party during the validity period of this agreement and its
annexes, as well as any oral or written information exchanged between each other in preparation or performance of this agreement, and
other matters that require the parties to keep confidential (“Confidential Information”). It shall not be disclosed or disclosed
to third parties without the written consent of other parties. Each party shall ensure that its employees, consultants, agents and their
designated third-party intermediaries perform their confidentiality obligations under this agreement. However, the disclosure of confidential
information by either party under any of the following circumstances is not considered a violation of this agreement: (1) the information
was known to the public at the time of disclosure; (2) the information was disclosed based on the other party’s prior written consent;
(3) In order to evaluate the purpose of this restructuring, one party shall disclose to its shareholders, directors, supervisors, management
members, or the accounting firm or law firm hired by it that agrees to perform confidentiality obligations; (4) one party makes disclosure
in accordance with the requirements of the stock exchange, regulatory agency or other government agency that has jurisdiction over it,
and the party prior to the disclosure first informs the other parties in writing of the exact nature and content of the disclosed confidential
information. Within a reasonable time before the above disclosure is made, the disclosing party shall negotiate with other parties on
the disclosure, and seek confidential treatment of the confidential information that needs to be disclosed as far as possible in accordance
with the reasonable requirements of other parties.

 

7.2
Confidentiality period

 

The
parties agree that, regardless of whether this agreement is changed, cancelled or terminated, Article 7 of this agreement will continue
to be effective.

 

    	 

     

    

 

Article
8 Notice

 

8.1
Notification method

 

Any
notices, arbitration documents or other judicial documents or other communications (“notices”) sent by one party to other
parties related to this agreement shall be in written form (including but not limited to letters and emails). For the purpose of serving
the notice, the contact information of the parties is shown in the annex to this agreement.

 

8.2
Delivery

 

The
various written notices stipulated in the preceding paragraph shall determine their delivery time in the following ways:

 

(1)
If the notice submitted in person is deemed to be served when the notified person signs for it, it shall not be deemed to have been effectively
served if the notified person does not sign for it;

 

(2)
All notices that can be sent by post shall be made by registered express mail or express mail, and shall be deemed to have been delivered
to the notified person within seven (7) days after posting;

 

(3)
Any notice sent by e-mail is deemed to have been effectively delivered to the notified person on the first working day after the notice
reaches the recipient.

 

8.3
Address Modification

 

If
any party’s contact information changes (“the changing party”), the changing party shall notify the other parties within
seven (7) days after the change occurs. If the changing party fails to notify in time as agreed, the changing party shall bear the losses
caused thereby.

 

Article
9 Dispute Resolution

 

9.1
Applicable law

 

The
conclusion, validity, execution and interpretation of this agreement and the settlement of unresolved disputes shall be governed by Chinese
law.

 

9.2
Dispute Resolution

 

9.2.1
Any disputes, disputes, disagreements or claims caused by or related to this agreement, including the existence, validity, interpretation,
performance, violation or termination of this agreement, or any disputes arising from or related to this agreement, should be submitted
to the Beijing Arbitration Commission for arbitration, and finally resolved in accordance with the effective arbitration rules of the
Beijing Arbitration Commission when the notice of arbitration was submitted. The applicable law of this arbitration clause is Chinese
law. The place of arbitration shall be Beijing. The arbitration proceedings shall be conducted in Mandarin.

 

9.2.2
The arbitration award is final and binding on all parties. The parties agree to be bound by the ruling and act in accordance with the
ruling. Unless otherwise specified in the arbitration award, the arbitration costs and the execution costs of the arbitration award (including
witness fees and attorney fees) shall be borne by the losing party. In the event of any unresolved dispute and if any unresolved dispute
is under arbitration, except for the matters involved in the unresolved dispute, each party shall continue to exercise their remaining
rights and perform their remaining obligations in accordance with this agreement.

 

    	 

     

    

 

Article
10 MISCELLANEOUS

 

10.1
Severability

 

10.1.1
If any one or more of the provisions of this agreement are determined to be invalid, illegal or unenforceable in any respect in accordance
with applicable laws or regulations, the validity, legality or enforceability of the remaining provisions of this agreement shall not
be affected or impaired. All parties should negotiate in good faith, replace those invalid, illegal or unenforceable regulations by effective
regulations permitted by law and expected by all parties in best efforts. The commercial effects of such effective regulations should
be similar to those of invalid, illegal or unenforceable regulations.

 

10.1.2
The terms and attachments of this agreement should be regarded as a part of this agreement. When referring to “this Agreement”,
it should be understood to include its attachments.

 

10.2
Entire Agreement

 

10.2.1
This agreement and its annexes constitute the complete and only agreement reached by the parties regarding this restructuring, replace
all verbal or written investment intents, agreements, understandings and communications, and any other related documents reached by the
parties in relation to this restructuring before.

 

10.3
Entry into force, substitution and modification

 

10.3.1
This agreement will take effect from the date when all parties sign or seal it. The annex to this agreement has the same effect as this
agreement. If there is a conflict between the attachment and the agreement of this agreement, this agreement shall prevail. For matters
not covered in this agreement, the parties will negotiate separately and sign a supplementary agreement. The supplementary agreement
has the same legal effect as this agreement.

 

10.3.2
Unless otherwise agreed in this agreement, amendments and changes to this agreement must be agreed upon by all parties, in written form,
and become effective on the date they are signed or sealed by all parties.

 

10.4
Expenses bear

 

Unless
otherwise agreed by the parties, each party shall bear its own costs, taxes and expenses related to this restructuring.

 

10.5
No Waiver

 

Unless
otherwise provided in this agreement, the failure or delay of a party to exercise the rights, powers or privileges under this agreement
does not constitute a waiver of these rights, powers and privileges, and the sole or partial exercise of these rights, powers and privileges
does not exclude the exercise of any other Rights, powers and privileges.

 

10.6
Language and copy

 

This
agreement can be signed in multiple copies, each with the same effect. The electronic version of the signed text of this agreement that
the parties have confirmed and exchanged by email and stored in PDF format shall be regarded as the original, which can be used as a
separate proof of the establishment and effectiveness of this agreement.

 

[Signature
Pages Follow]

 

    	 

     

    

 

IN
WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this agreement as of the date first above written.

 

	Shineco,
    Inc. 	 
	 	 	 
	By:	/s/
    Guocong Zhou	 
	Name:	Guocong
    Zhou	 
	Title:	Director	 
	 	 	 
	Beijing
    Tenet Jove Technological Development Co., Ltd.	 
	 	 	 
	By:	/s/
    Yuying Zhang	 
	Name:	Yuying
    Zhang	 
	Title:	Legal
    Representative 	 

 

 

    	 

     

    

 

IN
WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this agreement as of the date first above written.

 

	Ankang
    Changshou Pharmaceutical Group, 	 
	 	 	 
	By:	/s/
    Jiping Chen	 
	Name:	Jiping
    Chen	 
	Title:	Legal
    Representative 	 
	 	 	 
	 	/s/
    Jiping Chen	 
	Name:	Jiping
    Chen 	 
	 	 	 
	 	/s/
    Xiaoyan Chen	 
	Name:	Xiaoyan
    Chen	 

 

    	 

     

    

 

IN
WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this agreement as of the date first above written.

 

	Yushe
    County Guangyuan Forest Development Co., Ltd. 	 
	 	 	 
	By:	/s/
    Baolin Li	 
	Name:	Baolin
    Li	 
	Title:	Legal
    Representative 	 
	 	 	 
	 	/s/
    Baolin Li	 
	Name:	Baolin
    Li	 
	 	 	 
	 	/s/
    Yufeng Zhang	 
	Name:	Yufeng
    Zhang

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00329-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00329-of-00352.parquet"}]]