Document:

Unassociated Document

EXCLUSIVE OPTION AGREEMENT

BETWEEN

WUHAN KANGFU CONSULTING AND MANAGEMENT CORPORATION

AND

GUO JIAFU

WU FENG

MU XIANGJU

CHONGQING JIAFU HEALTH INDUSTRY CO., LTD.

JANUARY 2011

CHONGQING, CHINA

  

  

  

Exclusive Option Agreement

This Exclusive Option Agreement (the “Agreement”) is entered into as of January 18, 2011, by and between the following Parties in Chongqing.

 

Party A:              Wuhan Kangfu Consulting and Management Corporation

Party B:

	
1.

	
Guo Jiafu

A citizen of PRC, Identity Card Number: 510225196905170334

	
2.

	
Wu Feng

A citizen of PRC, Identity Card Number: 420107195708231033

3.Mu Xiangju

A citizen of PRC, Identity Card Number: 110102194711011120

Party C:       Chongqing Jiafu Health Industry Co., Ltd.

Legal Representative: Guo Jiafu

Registered Address: No.8 of 1/F, Block C, Ronghua Guangcai Mansion, Binjiang West, Jijiang Sub-district Office, Jiangjin District of Chongqing City.

In this Agreement, Party A, Party B, Party C 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 C is a limited liability company incorporated under the laws of the PRC;

3.     As of the date of this Agreement, Party B are shareholders of Chongqing Jiafu Health Industry Co., Ltd. (hereinafter referred to as “Opco”) and collectively hold all of the share equity of Opco.

 

NOW, THEREFORE, the Parties through mutual consultation hereby enter into this Agreement according to the following terms and conditions:

  

1

  

 

	
1.

	
 THE GRANT AND EXERCISE OF PURCHASE OPTION

 

	
  

	
1.1

	
Grant: Party B hereby grant Party A an irrevocable exclusive purchase option to purchase all or part of the share equity of Opco, currently owned by any of Party B; Opco further hereby grant Party A an irrevocable exclusive purchase option to purchase all or part of the assets and business of Opco, in each case in accordance with Article 1.3 of this Agreement (the “Option”). The aforesaid purchase options are 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 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 Opco, 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 share equity or assets and business transfer in connection with the Option exercise so that the share equity or assets and business 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 and Opco 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 share equity and remaining assets and business of Opco in connection with the Option exercise.

	
  

	
1.3

	
Exercise Condition: Party A may immediately exercise the option of acquiring the share equity or remaining assets and business of Opco whenever Party A considers it is necessary to acquire Opco and it is doable in accordance with PRC laws and regulations.

	
2.

	
 PRICE OF ACQUISITION

	
  

	
2.1

	
The total Transfer Price shall be the minimum price permitted under the PRC Law then applicable. All Transfer Price received by Party B shall be refunded to Party A or Opco at no consideration. Refund of the Transfer Price shall be made by Party B by an appropriate manner decided by Party A. Transfer Price means all the considerations which Party A or its designated entity or individual is obliged to pay to Party B or the Opco for the Option in each exercise.

  

2

  

	
  

	
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.

	
3.

	
 REPRESENTATIONS AND WARRANTIES

	
  

	
3.1

	
Each party hereto represents to the other Parties that: (1) it has all the necessary rights, powers and authorizations to enter into this Agreement and perform its duties and obligations hereunder; (2) Party B warrant, represent and guarantee that this Agreement shall be in compliance with any and all applicable PRC laws and shall indemnify, defend and hold harmless Party A and Opco for all fines, penalties, damages or claims sustained by Party A or Opco arising out of Party B’s violation of this section; and (3) 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 Opco hereto represent to Party A that, except as disclosed to Party A: With respect to the share equity held by Party B in Opco, (1) Party B are shareholders of Opco and have paid Opco the full amount of their respective portions of Opco's registered capital required under the PRC laws; (2) none of Party B, has mortgaged or pledged its share equity of Opco, nor has either of them granted any security interest or borrow against its share equity of Opco in any form; and (3) none of Party B has sold or will sell to any third party its share equity in Opco.

With respect to the assets of Opco which may be transferred to Party A at Party A’s option hereunder, except as disclosed to Party A: (1) Opco owns all such assets and has not mortgaged or pledged or otherwise encumber such assets; and (2) Opco has not sold or will sell to any third party such assets.

	
  

	
3.3

	
Opco hereto represents to Party A that: (1) it is a limited liability company duly registered and validly existing under the PRC laws; and (2) its business operations are in compliance with applicable laws of the PRC in all material aspects.

	
4.

	
COVENANTS

The Parties further agree as follows:

	
  

	
4.1

	
Before Party A has acquired all the share equity/assets and business of Opco by exercising the purchase option provided hereunder, Opco shall not:

  

3

  

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’ share 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

4.1.3   distribute any dividend to its shareholders in any manner.

	
  

	
4.2

	
Without Party A’s consent, before Party A has acquired all the share equity/assets/business of Opco by exercising the purchase 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 share equity held by them in Opco.

	
  

	
4.3

	
Without Party A’s consent, before Party A has acquired all the share equity/assets/business of Opco by exercising the purchase option provided hereunder, Party B and/or Opco shall not individually or collectively:

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

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

	
  

	
4.4

	
Party B shall entrust Party A to manage Opco in accordance with Entrusted Management Agreement, signed by and between Party B, Opco and Party A on January 18, 2011, in Chongqing.

	
  

	
4.5

	
Non Competition:

When Party A exercises the Option, each of Party B and Opco irrevocably and unconditionally agree and undertake to Party A that it will not without the prior written consent of Party A:

  

4

  

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/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;

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.

	
5.

	
 ASSIGNMENT OF AGREEMENT

	
  

	
5.1

	
Party B and Opco shall not transfer their rights and obligations under this Agreement to any third party without the prior written consent of Party A.

	
  

	
5.2

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

  

5

  

	
6.

	
CONFIDENTIALITY

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:

	
  

	
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 even if this Agreement is invalid, amended, revoked, terminated or unenforceable by any reason.

	
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.

	
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 (the “CIETAC”) in Beijing in accordance with its rules. The arbitration shall take place in Beijing. The arbitration award shall be final, conclusive and binding upon both Parties.

  

6

  

	
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 except that Party A may, by giving thirty days prior notice to the other Parties hereto, terminate this Agreement.

	
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.

	
  

	
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

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. The parties hereto shall prepare supplemental agreement as soon as possible to replace the invalid provision through friendly consultation

	
  

	
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 5 copies for each version; each Party holds one and each original copy has the same legal effect.

	
  

	
10.6

	
Successor

  

7

  

This Agreement shall bind and benefit the successor or the transferee of each Party.

(Remainder of This Page Intentionally Left Blank) 

  

8

  

IN WITNESS HEREOF, the Parties hereof have caused this Agreement to be executed as of the date first written above.

PARTY A:

Wuhan Kangfu Consulting and Management Corporation

(seal) Company seal imprinted

Legal Representative/Authorized Representative:

(Signature):  /s/ Wu Feng

PARTY B:

Guo Jiafu

(Signature): /s/ Guo Jiafu

Wu Feng

(Signature): /s/ Wu Feng

Mu Xiangju

(Signature):

PARTY C:

Chongqing Jiafu Health Industry Co., Ltd.

(seal) Company seal imprinted

Legal Representative/Authorized Representative:

(Signature):   /s/ Guo Jiafu

  

9Unassociated Document

EXCLUSIVE TECHNOLOGY SERVICE AGREEMENT

BETWEEN

CHONGQING JIAFU HEALTH INDUSTRY CO., LTD.

AND

WUHAN KANGFU CONSULTING AND MANAGEMENT CORPORATION

JANUARY 2011

 

  

  

  

 

Exclusive Technology Service Agreement

This Exclusive Technology Service Agreement (the “Agreement”) is entered into as of January 18, 2011, in Chongqing by:

Party A

Chongqing Jiafu Health Industry 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 500381000011525 and the legal registered address is No.8 of 1/F, Block C, Ronghua Guangcai Mansion, Binjiang West, Jijiang Sub-district Office, Jiangjin District of Chongqing City.

and

Party B

Wuhan Kangfu Consulting and Management Corporation 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.

Whereas,

1.         Party A and Party B (collectively the “Parties”) intend to promote the development of their businesses through mutual cooperation and utilization of their advantages;

Therefore, the Parties agree as follows after friendly consultation through the principle of equality and mutual benefit.

Article 1         Technology Service

1.1         Party A hereby agrees to engage Party B as the exclusive and sole technology service provider of Party A, and Party B hereof agrees to accept such engagement.

1.2         Party A further agrees that, without prior written consent of Party B, during the term of this Agreement, Party A shall not engage any third party as the technology service provider of Party A.

1.3         Party A agrees that Part B has right to provide the same or similar technology services under this Agreement to any third party and also has right to appoint other person of parties to provide the technology services to Party A under this Agreement.

 

  

- 1 -

  

 

Article 2      Scope of Technolgy Service

2.1    During the term of this Agreement, Party B agrees to provide relevant technology services to Party A in accordance with the relevant terms and conditions of this Agreement (The scope of technology service is referred hereto as Exhibit A).

Article 3     Service Fee

3.1    Party B has right to charge Party A service fees at the amount and by the method as set forth in the Exhibit B.

3.2    Party A hereto agrees and warrants that Party A shall pay off all service fees pursuant to the Clause 3.1 above to Party B first, before Party A pays the management fees to Party B in accordance with the Entrusted Management Agreement, by and among Party A, Guo Jiafu, Wu Feng, Mu Xiangju and Party B on January 18, 2011, in Chongqing.

Article 4     Intellectual Property

4.1    The Parties hereby understand and agree that the technical datas, software, discovery, invention, development, commercial secrets, copyrights, documments and other materials prepared or improved by Party B which are used to provide the technolgy services under this Agreement shall exclusively belong to Party B, no matter whether the foregoing materials are protected by copyright or patent right.

4.2    Provided that Party A improves the foregoing materials, such development results shall be soly owned by Party B. Party A hereby tranfer all the rights, ownerships and interests in connection with such improvement to Party B.

Article 5     Representations and Warranties

5.1    Party A hereto hereby make the following representations and warranties to Party B as of the date of this Agreement that:

(a)     Party A is an enterprise incorporated and existing within the territory of China in accordance with the laws of the People’s Republic of China;

(b)     Party A has the right to enter into the Agreement and the ability to perform the same; and the execution and delivery of this Agreement by Party A have been duly authorized by all necessary corporate actions;

(c)     the execution,delivery and performance of this Agreement will not violate any provision of the laws and regulations of PRC or other governmental or regulatory authority or approval;

 

  

- 2 -

  

 

(d)     the provisions of this Agreement constitute legal, valid and binding obligations on Party A upon the execution;

5.2     Party B hereto hereby make the following representations and warranties to Party A as of the date of this Agreement that:

(a)     Party B is a wholy foreign-owned enterprise which is incorporated and existing within the territory of China in accordance with the law of the People’s Republic of China;

(b)     Party B has the right to enter into the Agreement and the ability to perform the same; and the execution and delivery of this Agreement by Party B have been duly authorized by all necessary corporate action;

(c)     the execution,delivery and performance of this Agreement will not violate any provision of the laws and regulations of PRC or other governmental or regulatory authority or approval;

(d)     the provisions of this Agreement constitute legal, valid and binding obligations on Party B upon the execution;

Article 6    Effectiveness and Termination

This Agreement shall take effect after it is duly executed by the authorized representatives of the parties hereto with seals affixed and shall be terminated when any of the the following happens,

 

(a)     the winding up of Party A, or

(b)     the date on which Party B completes the acquisition of Party A

Article 7    Liability for Breach of Agreement

During the term of this Agreement, any violation of any provisions herein by either party constitutes breach of contract and the breaching party shall compensate the non-breaching party for the loss incurred as a result of this breach.

Article 8    Force Majeure

The failure of either party to perform all or part of the obligations under the Agreement due to 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.

 

  

- 3 -

  

 

Article 9    Confidentiality

9.1     The parties hereto agree to cause its employees or representatives who has access to and knowledge of the terms and conditions of this Agreement to keep strict confidentiality and not to disclose any of these terms and conditions to any third party without the expressive requirements under law or request from judicial authorities or governmental departments or the consent of the other party, otherwise such party or personnel shall assume corresponding legal liabilities.

9.2     The obligations of confidentiality under Section 1 of this Article shall survive after the termination of this Agreement.

Article 10    Applicable Law and Dispute Resolution

10.1   The execution, validity, interpretation and performance of this Agreement and the disputes resolution under this Agreement shall be governed by the laws of PRC.

10.2   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 Beijing in accordance with its rules. The arbitration award shall be final, conclusive and binding upon both Parties.

Article 11    Non-transferability

Unless otherwise specified under this Agreement, no party can assign or delegate any of the rights or obligations under this Agreement to any third party nor can it provide any guarantee to such third party or carry out other similar activities without the prior written consent from the other party.

 

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    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.

Article 14    Miscellaneous

14.1   Any and all taxes arising from execution and performance of this Agreement and during the course of providing service shall be borne by the Parties respectively pursuant to the provisions of laws and regulations.

 

  

- 4 -

  

14.2     Any amendment entered into by the parties hereto after the effectiveness of this Agreement shall be an integral part of this Agreement and have the same legal effect as part of this Agreement. In case of any discrepancy between the amendment and this Agreement, the amendment shall prevail. In case of several amendments, the amendment with the latest date shall prevail.

14.3     This Agreement is executed by Chinese and English in duplicate and both the English version and Chinese version shall have the same effect. Each of the original Chinese and English versions of this Agreement shall be executed in two copies. Each party shall hold one original for each version.

(This space intentionally left blank)

 

  

- 5 -

  

 

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: Chongqing Jiafu Health Industry Co., Ltd.

 

 (Seal)  Company seal imprinted

 

Legal Representative/Authorized Representative

 

	
(Signature):

	/s/ Guo Jiafu	  

 

PARTY B: Wuhan Kangfu Consulting and Management Corporation

 

(Seal)  Company seal imprinted

 

Legal Representative/Authorized Representative

 

	
(Signature):

	/s/ Wu Feng	  

 

  

- 6 -

  

 

Exhibit A

 

Scope of Service

 

Party B shall provide the following services to Party A:

 

Consultation of corporate management;

Consultation of service technology;

Consultation of marketing;

Consultation of purchase of equipments;

Other services required by Party A

 

  

- 7 -

  

 

Exhibit B

 

Service Fees

 

Service Fees shall be determined pursuant to the following factors:

 

1) the complexity of the technology, consultation and service;

2) total cost, including time cost, of the technology, consultation and service provided by Party B; and

3) the content and business value of the technology service and management service

 

Party B has right to provide the quarterly statement of account to Party A pursuant to the price recognized by the Parties and the working amount and business value of the service provided by Party B, and Party A shall pay the relevant service fees to Party B pursuant to the date and amount indicated in the statement of account. Party B has right to adjust service fees from time to time based on the amount and content of the service provided by Party B.

 

  

- 8 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]