Document:

China TransInfo Technology Corp.: Exhibit 10.2 - Prepared by TNT
   Filings Inc.

Exhibit 10.2 

OPTION AGREEMENT 

BY AND BETWEEN

CHINA TRANSINFO TECHNOLOGY GROUP CO., LTD.

AND 

SHUDONG XIA 

OPTION AGREEMENT 

This Option Agreement (this “Agreement”) is entered into on the day of September 8, 2009 by and between the following parties: 

	
Optionee:
		
China TransInfo Technology Group Co., Ltd.
	
	
 
		
Address: Floor 16, E-Wing Center, No.113 Zhichun
Road,
Haidian,
Beijing,
China
	
	
 
		
 
	
	
Grantor:
		
Shudong Xia
	
	
 
		
Identification Card No: 422125721020561
	
	
 
		
Address: Room 7-3-802 Xingbiaojiayuan, Wanliu,
	
	
 
		
Haidian District, Beijing, China
	

RECITALS 

 The Grantor has entered into a share transfer agreement with Unisplendour Corporation Limited (“Unisplendour”), dated September 8, 2009 (the “Share
Transfer Agreement”), pursuant to which the Grantor acquired 35.17% of the equity interest (“Equity Interest”) in Beijing UNISITS Technology Co. Ltd.
(“UNISITS”) from Unisplendour for a cash price of RMB 44, 400,000. UNISITS is a company organized under the laws of the People’s Republic of China (the “PRC”), engaged in the business of  
providing traffic engineering E&M systems,
intelligent transportation products, and intelligent transportation services
(ITS) to the domestic expressway, railway, and urban transportation markets.

 The Optionee is a PRC company that is 100% owned by the Grantor, Chairman, CEO and President of China TransInfo Technology Corp., a Nevada company (“CTFO”), Zhiping Zhang,
CTFO’s Vice President of Research and Development, Zhibin Lai, CTFO’s Vice President and Wei Gao, a designee of SAIF Partners III L.P., a 10% shareholder of CTFO. 

 The Grantor desires to grant the Optionee an option to purchase 18,500,000 shares of UNISITS’ capital stock, which constitute 35.17% of the issued and outstanding capital stock of UNISITS in return for cash on the terms set forth
herein. 

AGREEMENT 

 NOW, THEREFORE, in consideration of the premises, mutual covenants herein set forth and other good and valuable consideration, subject to the terms and conditions herein, the Grantor and the Optionee hereby agree as follows:

	
1. 		
OPTION

	
	 	 	 
		
1.1 		
Subject to the terms and conditions herein and applicable PRC laws, the Grantor hereby grants to the Optionee an option (the “Option”) to purchase the Equity
Interest at an exercise price (the “Exercise Price”) of RMB FORTY FOUR MILLION FOUR HUNDRED THOUSAND (RMB 44,400,000). The Optionee agrees to pre-pay to the Grantor the Exercise Price within 45 Business Days (as defined below) following the date of this Agreement.

	

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For the purpose of this Agreement, a “Business Day” means any day except Saturday, Sunday and any day on which banking institutions in the PRC are authorized or
required by law or other governmental action to close.

	 	 	 
		
1.2 		
In order to ensure its fulfilment of the obligations herein, the Grantor agrees to pledge the Equity Interest to the Optionee for a period that is the same as the term of lock-up as set forth in Section 11.3 of the
Share Transfer Agreement (the “Term of Pledge”).

	
	 	 	 
		
1.3 		
The Optionee may exercise the Option at any time commencing on the day following of the expiration of the Term of Pledge in accordance with the exercise procedure specified in Section 1.4 hereof.

	
	 	 	 
		
1.4 		
The Optionee may exercise the Option, in whole or in part, at any time in accordance with Section 1.3 hereof, by delivering to the Grantor a written notice of such exercise substantially in the form attached hereto as
Exhibit A (the “Exercise Notice”), duly signed by the Optionee. The delivery of the Exercise Notice in accordance herewith will constitute a
binding obligation (i) on the part of the Optionee to acquire and (ii) on the part of the Grantor to sell, in whole or in part, the Equity Interest subject to such Exercise Notice in accordance with the terms of this Agreement.

	
	 	 	 
		
1.5 		
For the avoidance of doubt, the Grantor hereby agrees that the Optionee may exercise the Option, without any limits on the frequency of its exercise, until the Optionee acquires all of the Equity Interest.

	
	 	 	 
		
1.6 		
The Grantor agrees that the Optionee may designate a third party to exercise the Option on its behalf, provided that the Optionee shall give a 3-day prior written notice to the Grantor.

	
	 	 	 
	
2. 		
DIVIDENDS

	
	 	 	 
		
2.1 		
Concurrently with the grant of the Option, the Grantor also agrees to grant the Optionee the right to collect the dividends from the Equity Interest and any dividends paid upon the Equity Interest shall be immediately
delivered by the Grantor to the Optionee.

	
	 	 	 
	
3. 		
WARRANTIES AND REPRESENTATIONS OF THE GRANTOR

	
	 	 	 
		
3.1 		
The Grantor is the legal owner of the Equity Interest.

	
	 	 	 
		
3.2 		
Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order,
decree, ruling, charge, or other restriction of any governmental authority to which the Grantor is subject, or (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to
accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which the Grantor is a party or by which he is bound or to which any of his assets is
subject.

	

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3.3 		
Except as otherwise provided hereunder, the Optionee shall not be interfered with by any parties at any time when the Optionee exercises its rights in accordance with this Agreement.

	
	 	 	 	 
	
4. 		
COVENANT OF THE GRANTOR

	
	 	 	 	 
		
4.1 		
During the effective term of this Agreement, the Grantor covenants to the Optionee that the Grantor shall:

	
	 	 	 	 
			
4.1.1 		
Timely notify the Optionee of any events or any received notices which may affect the Grantor’s Equity Interest or any part of his right, and any events or any received notices which may change the Grantor’s
any covenant and obligation under this Agreement or which may affect the Grantor’s performance of his obligations under this Agreement.

	
	 	 	 	 
			
4.1.2 		
Not transfer, assign, pledge, sell, contract to sell or otherwise dispose of, directly or indirectly, the Equity Interest to a third party without prior written approval from the Optionee.

	
	 	 	 	 
		
4.2 		
The Grantor agrees that the Optionee’s rights obtained pursuant to this Agreement shall not be suspended or hampered through legal procedure by the Grantor or any successor of the Grantor or any person authorized
by the Grantor.

	
	 	 	 	 
		
4.3 		
The Grantor warrants to the Optionee that the Grantor will comply with and perform all the guarantees, covenants, agreements, representations and conditions for the benefits of the Optionee. The Grantor shall
compensate all the losses suffered by the Optionee for the reasons that the Grantor does not perform or fully perform their guarantees, covenants, agreements, representations and conditions.

	
	 	 	 	 
	
5. 		
EVENTS OF DEFAULT

	
	 	 	 	 
		
5.1 		
The following events shall be regarded as the event of default:

	
	 	 	 	 
			
5.1.1 		
The Grantor makes any material misleading or fraudulent representations or warranties under Section 4 herein, and/or the Grantor is in violation of any warranties under Section 4 herein;

	
	 	 	 	 
			
5.1.2 		
The Grantor violates the covenants under Section 5 herein;

	

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      5.1.3 	
       The Grantor waives the pledged Equity
      Interest or transfer or assign the pledged Equity Interest without prior
      written consent of the Optionee;

	 	 	 
			
      5.1.4 
	The Grantor’s external loan, security, compensation,
      covenants or any other compensation liabilities (i) are required to be
      repaid or performed prior to the scheduled date; or (ii) are due but
      cannot be repaid or performed as scheduled and thereby cause the Optionee
      to deem that the Grantor’s capacity to perform the obligations herein is
      materially adversely affected;
	 	 	 
			
      5.1.5 
	The Grantor is incapable of repaying the general debt or
      other debt;
	 	 	 
			
      5.1.6 
	This Agreement is illegal for the reason of the
      promulgation of the related laws or the Grantor’s incapability of
      continuing to perform the obligations herein;
	 	 	 
			
      5.1.7 
	Any approval, permits, licenses or authorization from
      the competent authority of the government needed to perform this Agreement
      or validate this Agreement are revoked, suspended, invalidated or
      materially amended;
	 	 	 
			
      5.1.8 
	The property of the Grantor is adversely changed and
      causes the Optionee to deem that the capability of the Grantor to perform
      the obligations herein is affected;
	 	 	 
			
      5.1.9 
	The Grantor violates any other terms and conditions
      herein; and
	 	 	 
			
      5.1.10 
	Other circumstances whereby the Optionee is incapable of
      exercising the rights in accordance with this Agreement and related
    laws.
	 	 	 
		5.2 	
      The Grantor shall immediately give a written
      notice to the Optionee if the Grantor is aware of or finds that any event
      under Section 5.1 herein or any events that may result in the foregoing
      events have happened or is going on.

	 	 	 
		5.3 	
      Unless the event of default under Section
      5.1 herein has been solved to the Optionee’s satisfaction, the Optionee,
      at any time when the event of default happens or thereafter, may give a
      written notice of default to the Grantor and request the Grantor to
      immediately return to the Optionee the Exercise Price together with any
      accrued interest thereon within ten (10) days after the date of the
      written notice in RMB and in immediately available funds, by wire transfer
      to an account designated in writing by the Optionee. Accordingly, the
      Optionee and the Grantor shall enter into necessary agreements to
      terminate this Agreement.

	 	 	 
	6. 	
      TRANSFER OR
  ASSIGNMENT

	 	 	 
		6.1 	
      The Grantor shall not donate or transfer his
      rights and obligations herein without prior written consent from the
      Optionee.

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6.2 		
The Optionee may transfer or assign its all or any rights and obligations under this Agreement to any person (natural person or legal entity) at any time. In this case, the assignee shall enjoy and undertake the same
rights and obligations herein of the Optionee as if the assignee is a party hereto. When the Optionee transfers or assigns the rights and obligations under this Agreement, at the request of the Optionee, the Grantor shall execute the necessary and
relevant agreements and/or documents with respect to such transfer or assignment.

	
	 	 	 
		
6.3 		
This Agreement shall be binding upon and inure to the benefit of the parties hereto, and their successors, and permitted assigns.

	
	 	 	 
	
7. 		
FURTHER ASSURANCES

	
	 	 	 
		
7.1 		
Each of the parties to this Agreement will use his or its best efforts to take all action and to do all things necessary, proper, or advisable in order to consummate and make effective the transactions contemplated by
this Agreement (including the execution and delivery of such other documents and agreements as may be necessary to effectuation the pledge and transfer of the Equity Interest).

	
	 	 	 
	
8. 		
FORCE MAJEURE

	
	 	 	 
		
8.1 		
If this Agreement is delayed in or prevented from performing in the event of Force Majeure, only within the limitation of such delay or prevention, the affected party is absolved from any liability under this
Agreement. Force Majeure, which includes acts of governments, acts of nature, fire, explosion, typhoon, flood, earthquake, tide, lightning, war, means any unforeseen events beyond the prevented party’s reasonable control and cannot be prevented
with reasonable care. However, any shortage of credit, capital or finance shall not be regarded as an event beyond a party’s reasonable control. The party effected by Force Majeure who claims for exemption from performing any obligations under
this Agreement or under any section herein shall notify the other party of such exemption promptly and advice him or it of the steps to be taken for completion of the performance.

	
	 	 	 
		
8.2 		
The party affected by Force Majeure shall not assume any liability under this Agreement. However, subject to the party affected by Force Majeure having taken its reasonable and practicable efforts to perform this
Agreement, the party claiming for exemption of the liabilities may only be exempted from performing such liability as within limitation of the part performance delayed or prevented by Force Majeure. Once causes for such exemption of liabilities are
rectified and remedied, both parties agree to resume performance of this Agreement with their best efforts.

	
	 	 	 
	
9. 		
DISPUTE RESOLUTION

	
	 	 	 
		
9.1 		
This Agreement shall be governed by and construed in accordance with the laws of the PRC.

	
	 	 	 
		
9.2 		
The parties shall strive to settle any dispute arising from the interpretation or performance, or in connection with this Agreement through friendly consultation.

	

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In case no settlement can be reached through consultation, each party can submit such matter to China International Economic and Trade Arbitration Commission (“CIETAC”) for arbitration in Beijing under the current effective rules of CIETAC. The arbitration proceedings shall be conducted in Chinese. The arbitration award shall be final and binding upon the parties.
	 	 	 
	
10. 		
NOTICE

	
	 	 	 
		
10.1 		
Any notice which is given by the parties hereto for the purpose of performing the rights, duties and obligations hereunder shall be in writing. Where such notice is delivered personally, the time of notice is the time
when such notice actually reaches the addressee; where such notice is transmitted by telex or facsimile, the notice time is the time when such notice is transmitted. If such notice does not reach the addressee on a Business Day or reaches the
addressee after the business time, the next Business Day following such day is the date of notice. The delivery place is the address first written above of the parties hereto or such other address as advised in writing including facsimile and telex
from time to time by either party hereto.

	
	 	 	 
	
11. 		
EFFECTIVENESS

	
	 	 	 
		
11.1 		
This Agreement constitutes the entire agreement between the parties hereto with respect to the matters herein, and cannot be amended, modified or terminated except by an agreement in writing executed by the parties
hereto.

	
	 	 	 
		
11.2 		
This Agreement is executed in English.

	

[Signature Page Follows] 

 

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IN WITNESS WHERE OF, the parties hereto have executed this Agreement as of the date first indicated above. 

 

The Optionee: China TransInfo Technology Group Co., Ltd. 

/s/ Shudong Xia 

Authorized Representative: Chief Executive Officer 

 

The Grantor:

/s/ Shudong Xia 

Name: Shudong Xia 

[Signature Page to Option Agreement] 

EXHIBIT B 

FORM OF EXERCISE NOTICE 

Mr. Shudong Xia

[________________] 

[________________] 

	
 	
Re:
		
Option Agreement, dated September 8, 2009 (the “Agreement”), between
Shudong Xia (the “Grantor”) and China TransInfo Technology Group Co., Ltd.
(the “Optionee”)
	

Dear Mr. Xia: 

In accordance with Section 1.4 of the Agreement, the Optionee hereby provides this notice of exercise of the Option in the manner specified below: 

	
 	
(a) 		
The Optionee hereby exercises its Option with respect to the Equity Interest pursuant to the Option Agreement.

	
	 	 	 
	
 	
(b) 		
Pursuant to this exercise, the Grantor will deliver to _______________, _________ shares representing _______% of the Equity Interest in accordance with the instructions attached
hereto.

	

 Dated: _________, ______
 

__________________________________Yayi International Inc.: Exhibit 10.1 - Prepared by TNT Filings Inc.

  

  

Exhibit 10.1

ENGLISH SUMMARY OF 

LOAN AGREEMENT 

BORROWER: 

Tianjin
Yayi Industrial Co., Ltd                             

LENDER BANK: 

Tianjin
Rural Cooperative Bank Kexing Branch 

 

Borrower: Tianjin Yayi Industrial Co., Ltd 

Accommodation: Unit C, the 4th floor, D building, Xinyuan technical

Postal Code: 300384 

Legal Representative:

刘丽
Liu Li 

Entrusted Agent: 

Responsible Person:

张悦

TEL: 27984058 

FAX: 27984358 

Name of the Credit bank: Tianjin Rural Cooperative Bank Kexing Branch 

Bank account number: 9170101000010000040384 

 

Lender Bank: 

Postal Code: 300384 

Legal Representative:

曹力强

Entrusted Agent: 

Responsible Person:
田泽国

TEL: 23859929 

FAX: 

1

The Lender Bank has agreed to offer loans subject to terms and conditions
hereof. 

Article 1: 

1. 

Loan under the contract, must
be used as working capital 

2. 

without prior
written consent the Borrower may not change the use of loan which has been
defined in the contract. 

Article 2: 

The currency type
under the contract is RMB, amount 10,000,000 

Article 3: 

Loan term under
this contract is one year ,from May 22, 2009 to May 21, 2010

Article 4: 

Upon conditions
of the prerequisites are met in article eleven of the contract, the lender bank
should wire the loan to the borrower’s account as follows: 

First payment 

Amount 

RMB5,000,000

Date 

May 22, 2009

Second payment 

Amount 

RMB 5,000,000

Date 

May 25, 2009

Article 5 :

In the manner
specified in the contract the Borrower should pay the loan interest at a rate
per annum of 6.372% 

Article 6 :

If the borrower
fails to pay the principal of loan timely, the lender bank has the right to
charge late fees at a rate equals to 50% of the interest rate of the loan
hereof. If the borrower fails to use the loan in a way set forth in the
contract, the lender bank has right to charge a fee at a rate equals 100% of the
interest rate of the loan hereof. 

Article 7: 

The interest on
loan shall be settled quarterly on the 20th of the last month of each 
quarter . 

Article 8: 

The interest rate
is fixed regardless of the change of the basic interest rate by the People's
Bank of China after the loan is granted. 

Article 9: 

The Borrower
shall repay the principal by May 21, 2010. 

Article 10: 

Tianjin Haitai
Investing Warranting Co., Ltd. (guarantor) provides guarantee in connection
with the loan hereof. Guarantee Contract number: Tianjin Rural Cooperative
Bank Bao Zi Kexing 2009038 

 

2

Article 11: 

The Borrower and the
Lender Bank should also sign the guarantee contract. 

Article 12 : 

The governing law of this
contract is the law of China. 

Article 13: 

Any dispute arisen from
the performance of the contract shall be solved through negotiation. If
negotiation fails, the dispute shall be submitted to the local court of the
jurisdiction where the Lender Bank resides. 

Article 14: 

This contract shall come into
force when signed by the legal representatives of both parties. 

Article 15: 

After this contract
becomes effective, neither party can unilaterally modify or terminate the
contract without the other party’s written consent. 

Article 16: 

This agreement is entered
into on May 3, 2009 at Tianjin Rural Cooperative Bank, Kexing 

 

Branch BORROWER: Tianjin Yayi Industrial Co., Ltd (Seal) 

By: /s/ Li Liu                     

Name: Li Liu 

Title: President 

LENDER BANK: Tianjin Rural Cooperative Bank Kexing Branch (Seal) 

3

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