Document:

Unassociated Document

Exhibit 10.38

 

PLEDGE OF EQUITY AGREEMENT

 

 

 

BETWEEN

 

   YAO GUO YUN

MENG CHUN DE

 

 

TAIYUAN HONGXING CARBON BLACK CO., LTD

 

AND

 

 

JINZHENG LITEWEISI CARBON (TAIYUAN) CO., LTD

 

 

 

 

Taiyuan, CHINA

 

  

  

  

 

PLEDGE OF EQUITY AGREEMENT

This Pledge of Equity Agreement (the “Agreement”) is executed on 【 】in Taiyuan, China by:

Pledgeors (hereinafter collectively referred to as “Party A”):

1.  Yao Guo Yun, a citizen of PRC with ID Card number of 140121196211149047, owns 91% shares of Taiyuan Hongxing Carbon Black Co., Ltd;

2.  Meng Chun De, a citizen of PRC with ID Card number of 140121196303089010, owns 9% shares of Taiyuan Hongxing Carbon Black Co., Ltd;

Pledgee (hereinafter referred to as “Party B”):

3.  Jinzheng Liteweisi Carbon (Taiyuan) Co., Ltd, a wholly foreign-owned enterprise registered in Taiyuan; and the registration number of its legal and valid Business License is 1-1-705, Beimei New World Garden, No.116 of Changfeng Street, Taiyuan of Shanxi Province.

Taiyuan Hongxing Carbon Black Co., Ltd (hereinafter referred to as “Taiyuan Hongxing” or “Party C”)

4.  It is a limited liability company incorporated and existing within the territory of China in accordance with the law of the People’s Republic of China, the registration number of its legal and valid Business License is 140121200005084.

In this Agreement, Party A, Party B and Party C are called collectively as the “Parties” and each of them is called as the “Party”.

Whereas,

1.  Party A consists of all of the shareholders of Taiyuan Hongxing Carbon Black Co., Ltd (hereinafter referred to as “Taiyuan Hongxing”), who legally hold all of the equity interest of Taiyuan Hongxing, of which Yao Guo Yun holds 91% and Meng Chun De holds 9%, representing 100% of the capital stock of Taiyuan Hongxing.

2.  Party B is a wholly-foreign owned enterprise incorporated and existing within the territory of China in accordance with the law of the People’s Republic of China, the registration number of its legal and valid Business License is 140100400002251, and the legal registered address is 1-1-705, Beimei New World Garden, No.116 of Changfeng Street, Taiyuan of Shanxi Province.

 

  

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3.  Taiyuan Hongxing Carbon Black Co., Ltd is an enterprise incorporated and existing within the territory of China in accordance with the law of the People’s Republic of China, the registration number of its legal and valid Business License is 140121200005084 and the legal registered address is Xigu Village, Xigu Country of Qingxu County, Taiyuan of Shanxi Province.

4.  Party B intends to acquire all of the equity interests or assets of Taiyuan Hongxing. Prior to the completion of such acquisition, Party A agrees to entrust the management and operation of Taiyuan Hongxing to Party B and to sell part of operating assets of Taiyuan Hongxing to Party B. In order to protect the interests of Party B, Party A agrees to pledge the 100% of equity interest of Taiyuan Hongxing they own to Party B.

5.  Party B accepts the pledge of the equity interest by Party A.

Therefore, in accordance with applicable laws and regulations of the People’s Republic of China, the Parties hereto reach the Agreement through friendly negotiation on the principle of equality and mutual benefit and abide by.

Article 1  Guaranteed Obligations

The equity interest is being pledged to guarantee all of the rights and interests Party B is entitled to under all of the following listed agreements by and between Party A, Party B and Party C:

(a)  Entrusted Management Agreement, by and among Party A, Party B and  Party C on【 】in Taiyuan;

(b)  Exclusive Option Agreement by and among Party A, Party B and Party C on 【 】in Taiyuan; and

(c)  Shareholders’ Voting Proxy Agreement, by and between Party A and Party B on 【 】in Taiyuan.

Article 2  Pledged Properties

Party A pledges, by way of first priority pledge, all of its rights, title and interest, in, to and under all or any part of:

(a)  100% of the equity interest in Taiyuan Hongxing;

(b)  100% of the registered capital (“Registered Capital”) of Taiyuan Hongxing;

(c)  all investment certificates and other documents in respect of the Registered Capital of Taiyuan Hongxing;

(d)  all money, dividends, interest and benefits at any time arising in respect of all the equity interest and Registered Capital of Taiyuan Hongxing; and

(e)  all voting rights and all other rights and benefits attaching to or accruing to the equity interest or the Registered Capital of Taiyuan Hongxing to Party B.

 

  

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Article 3  Scope of Guaranteed Obligations

The scope of the guaranteed obligations is all rights and interests Party B is entitled to in accordance with all the agreements signed by and between Party A and Party B.

Article 4  Pledge Procedure and Registration

Party A shall be responsible for, and Taiyuan Hongxing shall assist Party A in, processing the registration procedures with Qing Xu Administration for Industry and Commerce concerning the pledged equity interest and ensure that all other approval(s) from or registration with relevant PRC authorities is granted or duly secured.

Article 5  Transfer of Pledged Equity Interest

Party A shall not transfer and Taiyuan Hongxing shall not assist in such transfer, of any of the pledged equity interest without the prior written consent of Party B during the term of this agreement.

Article 6  Representations and Warranties

6.1  Pledgeors hereby represent and warrant to the Pledgee that:

(a)  have all the necessary rights, powers and authorizations to enter into this Agreement and perform its duties and obligations hereunder;

(b)  this Agreement constitutes its legal, valid and binding obligations which are enforceable pursuant to the terms of this agreement;

(c)  Pledgeors are and will, at all times, during the term of this Agreement, be the lawful and beneficial owners of the Pledged Equity free from pledge or other encumbrances(other than the Pledge created by this Agreement);

(d)  Pledgeors are legally registered shareholders of Taiyuan Hongxing and have paid up all the amount of the registered capital of Taiyuan Hongxing.

6.2  Taiyuan Hongxing hereby represents and warrants to the Pledgee that:

(a)  it is duly incorporated and validly existing under the laws of the PRC;

(b)  it has and will at all times have the necessary power, and has obtained the

necessary approvals and authorizations, to enable it to enter into and perform its obligations under this Agreement;

(c)  its entry into and performance of this Agreement do not and will not

violate any applicable laws, its articles of association or any agreement or document binding it or its assets; and

(d)  this Agreement constitutes its legal, valid and binding obligations which are enforceable pursuant to the terms of this agreement.

  

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Article 7   Covenants

7.1  Pledgeors further undertake that they shall:

(a)  at no time during the term of this Agreement, except with the prior

written consent of the Pledgee, transfer, sell, pledge(other than the pledge created under this Agreement), encumber or otherwise dispose of the Pledged Equity;

(b)  notify the Pledgee immediately of any event that may affect the title of the Pledgeor in relation to the whole or any part of the Pledged Equity under this Agreement;

7.2  Taiyuan Hongxing further undertakes that:

(a)  it shall assist the Pledgeor with the completion of this equity pledge and all subsequent process required by applicable laws and its articles and association;

(b)  it shall at no time during the term of this Agreement, except with the prior written consent of the Pledgee, assist any Pledgeors in the transfer, sale, pledge (other than the pledge created under this Agreement), encumbrance or other disposition of the Pledged Equity;

(c)  it shall not enter into any transaction which may materially affect its assets, liabilities, operations, 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 B in writing).

Article 8  Effectiveness, Modification and Termination

8.1  This Agreement shall go into effect when it is signed by the authorized representatives of the Parties with seals affixed;

8.2  Upon the effectiveness of this Agreement and unless otherwise agreed upon by the parties hereto, neither party may modify or terminate this Agreement. Any modification or termination shall be in writing after the parties’ consultations. The provisions of this Agreement remain binding on the parties prior to any written agreement on modification or termination.

Article 9  Governing 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.

Article 10  Liability for Breach of Agreement

Upon the effectiveness of this Agreement, the Parties hereto shall perform their respective obligations under the Agreement. Any failure to perform the obligations stipulated in the Agreement, in part or in whole, shall be deemed as breach of contract and the breaching party shall compensate the non-breaching party for the loss incurred as a result of the breach.

  

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Article 11  Settlement of Dispute

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 12  Severability

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

12.2  In the event of the foregoing paragraph, the parties hereto shall prepare supplemental agreement as soon as possible to replace the invalid provision through friendly consultation.

Article 13  Miscellaneous

13.1  The headings contained in this Agreement are for the convenience of reference only and shall not in any other way affect the interpretation of the provisions of this Agreement.

13.2  The Agreement shall be executed in four copies, both in Chinese and English. Each party holds one Chinese and one English original, and the remaining shall be kept for completing relevant procedures. Each copy shall have equal legal force, and both the English version and Chinese version shall have the same effect.

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IN WITNESS HEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives the day and year first above written.

PARTY A:

Yao Guo Yun

 

 

(Signature):                                                       

 

 

Meng Chun De

 

 

(Signature):                                                       

 

 

PARTY B:

 

Jinzheng Liteweisi Carbon (Taiyuan) Co., Ltd

 

        (Seal)

 

 

Legal Representative/Authorized Representative

 

(Signature):                                                       

 

 

PARTY C:

 

Taiyuan Hongxing Carbon Black Co., Ltd

 

        (Seal)

 

 

Legal Representative/Authorized Representative

 

(Signature):                                                       

 

 

  

-6-Unassociated Document

Exhibit 10.39

SHAREHOLDERS' VOTING PROXY AGREEMENT

BETWEEN

YAO GUO YUN

MENG CHUN DE

AND

JINZHENG LITEWEISI CARBON (TAIYUAN) CO., LTD

 

 

Taiyuan, CHINA

 

 

  

  

  

 

SHAREHOLDERS’ VOTING PROXY AGREEMENT

This Shareholders’ Voting Proxy Agreement (the “Agreement”) is entered into as of 【 】between the following parties in Taiyuan:

Party A:

Jinzheng Liteweisi 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

In this Agreement, Party A, Party B and Party C are called collectively as the “Parties,” and each of them is called as the “Party”. Party B and Party C are collectively called the “Grantors” and respectively called “Each of the Grantors”.

WHEREAS,

 

1.           Party A is a wholly foreign-owned enterprise incorporated under the laws of the People’s Republic of China;

2.           As of the date of this Agreement, the Grantors are shareholders of Taiyuan Hongxing Carbon Black CO., Ltd (the “Taiyuan Hongxing”) and collectively legally hold all of the equity interest of Taiyuan Hongxing, of which Yao Guo Yun holds 91% and Meng Chun De holds 9%;

3.           Each of the Grantors desires to appoint the persons designated by Party A to exercise its shareholder’s voting rights at the shareholders’ meeting of Taiyuan Hongxing (“Voting Rights”) and Party A is willing to designate such persons.

Therefore, the Parties hereby have reached the following agreement upon friendly consultations:

Article 1

Each of the Grantors hereby agrees to irrevocably appoint the persons designated by Party A with the exclusive right to exercise, on his behalf, all of his Voting Rights in accordance with the laws and Taiyuan Hongxing’s Articles of Association, including but not limited to the rights to sell or transfer all or any of his equity interests of Taiyuan Hongxing, and to appoint and elect the directors and Chairman as the authorized legal representative of Taiyuan Hongxing.

 

  

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Article 2

The persons designated by Party A shall be the directors of Party A (the “Proxy Holders”).

Party A agrees that it shall maintain a board of directors, and members of which shall all be the member of the board of directors of the overseas parent company of Party A; the members of the board of directors of the overseas parent company of Party A,who are employed only for purpose to satisfy future listing or financing requirement, need not be necessary to be members of the board of directors of Party A.

Article 3

Party B agrees to designate such Proxy Holders pursuant to Section 1 of this Agreement, who shall represent each of the Grantors to exercise his/her Voting Rights pursuant to this Agreement.

Article 4

All Parties to this Agreement hereby acknowledge that, regardless of any change in the equity interests of Taiyuan Hongxing, each of the Grantors shall appoint the person designated by Party A with all Voting Rights. All Parties to this Agreement agree, Party B and Party C shall not transfer his/her equity interests of Taiyuan Hongxing to any individual or company (other than Party A or the individuals or entities designated by Party A).

Article 5

Each of the Grantors hereby acknowledges that he/she will withdraw the appointment of the persons designated by Party A if Party A change such designated person and reappoint the substituted persons designated by Party A as the new Proxy Holders to exercise his/her Voting Rights at the shareholder’s meeting of Taiyuan Hongxing.

Article 6

All authorizations made under this Agreement shall be conclusive and binding upon the Grantors and each and every act and thing effected by the Proxy Holders pursuant hereto shall be as good, valid and effectual as if the same had been done by the Grantors. The Grantors hereby irrevocably and unconditionally undertake at all times hereafter to ratify and confirm whatsoever the Proxy Holders shall lawfully do or cause to be done by virtue of all such authorizations conferred by this Agreement.

 

  

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Article 7

The Grantors hereby irrevocably and unconditionally undertake at all times to indemnify and keep indemnified each of the Proxy Holders against any and all actions, proceedings, claims, costs, expenses and liabilities whatsoever arising from the exercise or purported exercise of any of the powers conferred or purported to be conferred by this Agreement.

Article 8

This Agreement has been duly executed by the parties’ authorized representatives as of the date first set forth above and shall become effective upon execution.

Article 9

This Agreement shall not be terminated prior to the completion of acquisition of all of the equity interests in, or all assets or business of, Taiyuan Hongxing by Party A; any amendment of this Agreement shall be in written and agreed upon by the Parties.

Article 10

The conclusion, validity, interpretation, and performance of this Agreement and the settlement of any disputes arising out of this Agreement shall be governed by the laws and regulations of the People’s Republic of China. 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 11

This Agreement is executed in both Chinese and English in three copies; each Party holds one and each original copy which has the same legal effect. Both the English version and Chinese version shall have the same effect.

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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:

 

Jinzheng Lite Weisi Carbon (Taiyuan) Co., Ltd

 

        (Seal)

 

 

Legal Representative/Authorized Representative

 

(Signature):                                                            

 

 

 

PARTY B:

 

 

Yao Guo Yun

 

(Signature):                                                            

 

 

 

PARTY C:

 

 

Meng Chun De

 

(Signature):                                                            

 

 

  

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