Document:

ex10-64.htm

Exhibit 10.64

 

 

Electronic Supervision No.: 1304812015B00147 

  

 

 

 

 

 

Transfer Contract for State-owned Construction Land Use Right 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	
Ministry of Land and Resources of the People's Republic of China 
	
Prepared by 

	
State Administration for Industry & Commerce of the People's Republic of China 
	  

 

 

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Contract No.: 

 

C13048120150010 

 

Transfer Contract for State-owned Construction Land Use Right 

 

Both Parties of this Contract: 

 

Transferor: Wu'an Land and Resources Bureau 

 

Postal address: No. 26 Kuangjian Road; 

 

Postcode: 056300; 

 

Tel: 5532900; 

 

Fax: ______________________;

 

Opening bank: ______________________;

 

Account No.: ______________________.

 

Transferee: Northern Altair Nanotechnologies Co., Ltd.; 

 

Postal address: North of Dongzhuchang Village, Wu'an Town, Wu'an County, Handan City, Hebei Province; 

 

Postcode: 056300 

 

Tel: 15530058089 

 

Fax: ______________________;

 

Opening bank: ______________________;

 

Account No.: ______________________.

 

 

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Chapter I      General 

 

Article 1      According to Property Law of the People's Republic of China, Contract Law of the People's Republic of China, Land Management Law of the People's Republic of China, Law of the People's Republic of China on Urban Real Estate Administration and the other laws, relevant administrative regulations and land supply policies, the both parties sign this Contract in line with the principle of equality, voluntariness, compensation, honesty and credit. 

 

Article 2      The ownership of the transferred land belongs to the People's Republic of China and the Transferor transfers the state-owned construction land use rights authorized by law. Underground resources, buried objects do not belong to the transfer range of state-owned construction land use right. 

 

Article 3      The Transferee enjoys the right to occupy, use, benefit, dispose the state-owned construction land gained through legal channel within transfer period, and shall be entitled to use the land to construct buildings, structures and ancillary facilities according to the law. 

 

Chapter II      Delivery of the Transferred Land and the Payment of Transfer Price 

 

Article 4      The parcel land No. of 2015 No. 10 under this Contract is transferred, and the total parcel land area is Fifty Five Thousand, Six Hundred and Five, Point Thirty Six Square Meters In Words (In Figures 55,605.36m2), and the transferred parcel land is Fifty Five Thousand, Six Hundred and Five, Point Thirty Six square meters In Words (In Figures 55,605.36m2). 

 

The transferred parcel land under this Contract is located in the north to Handan-Wu'an Expressway and the south to South Yudaihe Road in Wu'an. 

 

The plane boundary of the transferred parcel land under this Contract is_______________; 

 

The drawing of the plane boundary of the transferred parcel land under this Contract is in Appendix 1. 

 

The vertical boundary of the transferred parcel land under this Contract takes _____________ as the upper limit and _________________ as the lower limit with height difference of ______________________ m. The drawing of the vertical boundary of the transferred parcel land under this Contract is in Appendix 2. 

 

The space of the transferred parcel land is enclosed by the vertical plane formed by the aforementioned boundary points and the elevation plane from the upper to the lower limit. 

 

Article 5      The purpose of the parcel land transferred under this Contract is for industrial land. 

 

Article 6      The Transferor agrees to deliver the transferred parcel land to the Transferee before May 20, 2015 and agrees that, when delivers land, the parcel land shall meet the land conditions stipulated in Item I of this Article: 

 

(I) site formation shall be up to ______________________; 

 

the surrounding infrastructure shall be up to______________________; 

 

(II) Current land conditions ______________________; 

 

Article 7      Transfer term for the state-owned construction land use right under this Contract is 50 years which is calculated as of the date of land delivery agreed in Article 6 of this Contract; As for transfer formalities transacted for the original appropriated (leased) state-owned construction land use right, the transfer term shall be calculated from the date of signing this Contract. 

 

Article 8      The price of transferring the state-owned construction land use right under this Contract is RMB Sixteen Million and Twenty Thousand Only in Words (In Figures RMB 16,020,000), and the price per square meter is RMB Two Hundred and Eighty-Eight and Ten Cents in Words (In Figures RMB 288.10). 

 

Article 9      The down payment for the parcel land under this Contract is RMB________ In Words (RMB ________________In Figures), and credited to the transfer price. 

 

 

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Article 10      The Transferee consents to pay the price of transferring the state-owned construction land use right to the Transferor in accordance with provisions in Item I of Paragraph I of this Article: 

 

(I) The transfer price of state-owned construction land use right is all paid within 23 days upon signing this Contract; 

 

(II) Pay the transfer price of state-owned construction land use right to Transferor according to the following time and amount schedule. 

 

When the installment payment for transferring the state-owned construction land use right is chosen, the Transferee agrees to pay the interest of the second and later installment to the Transferor at the loan interest rate as he pays the first installment issued by the People's Bank of China. 

 

Article 11      The Transferee shall apply for the transferring registration of state-owned construction land use right transfer upon relevant documentary evidences such as the Contract and transfer price payment voucher after paying off the transfer price the parcel land according to this Contract. 

 

Chapter III      Land Development Construction and Utilization 

 

Article 12      The Transferee agrees to develop the investment intensity for the parcel land under this Contract according to the implementation of the provision of Item I in this Article: 

 

(I) The parcel land under this Contract is applied to industrial projects. The Transferee agrees that the total fixed assets investment of the parcel land of land under this Contract is no less than the approved or registered amount, RMB in words One Hundred and Sixty-Six Million Eight Hundred and Sixteen Thousand and Eighty Only (Amount in Figures RMB 166,816,080.00), and the investment intensity per square meter is no less than RMB Three Thousand in Words (In Figures RMB 3,000/m2) The total fixed assets investment of the parcel land under this Contract includes: buildings, structures, ancillary facilities, equipment investment and transfer price. 

 

(II) If the parcel land under this Contract is for non-industrial purpose, the Transferee promises the total development investment amount of the land shall not be less than RMB _______________In Words (RMB ____________In Figures). 

 

Article 13      New buildings, structures and ancillary facilities constructed by the Transferee on the parcel land under this Contract shall conform to the planning conditions of the parcel land determined by Municipal (Town) Government Planning Administrative Department (See Appendix 3). Including: 

 

The property of the main building is _____________; 

 

The property of the ancillary building is _____________; 

 

Total construction area is 83,408.04 square meters; 

 

The plot ratio of building is not higher than 1.50 and not less than 0.60; 

 

The building height restriction is _____________; 

 

The building density is not higher than _____________ and not less than 30%; 

 

The greening rate is not higher than 20% and not less than_____________; 

 

Other land-use requirements_____________

 

Article 14      The Transferee agrees to develop the supporting infrastructure for the parcel land under this Contract according to the implementation of the provision of Item I in this Article: 

 

(I) If the parcel land under this Contract is for industry purpose, according to the planning design conditions identified by Planning Department, the size of company administrative offices and life service facilities in the contract parcel land shall account for no more than 7% of the total size of the parcel land, that's to say, no more than 3,892 m2 and the floor area no more than_____________ square meters. The Transferee agrees not to build non-productive facilities like sets of houses, expert building, hotels, guesthouses, training centers within the scope of the parcel land. 

 

 

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(II) The parcel land under this Contract is used for residential construction, according to planning and construction conditions determined by Planning and Construction Management Department, the total sets of residential building shall not less than _____________sets. Among which, the set number of the houses that less than 90 square meters of building area of dwelling size shall not be less than ______________sets, and the dwelling size of the residential is required to be _____________. The ratio of the building area of dwelling size less than 90 square meters within the scope of the parcel land under this Contract to the total parcel land construction area shall be not less than ________%. The Transferee agrees to process the economically affordable housing, low-rent housing and other governmental indemnificatory housings that are built within the scope of parcel land under this Contract according to the following _____________ mode: 

 

1. Hand over to the government; 

 

2. Repurchase by the government; 

 

3. Implement according to the relevant regulations of the governmental economically affordable housing construction and sale management; 

 

4. _______________________________________ 

 

Article 15      The Transferee consents to the simultaneous construction of the following supporting projects within the scope of the parcel land under this Contract, which shall be transferred to the government after the completion free of charge: 

 

__________________________ 

 

Article 16      The Transferee consents to start parcel land construction projects under this Contract before April 20, 2016, and complete before April 20, 2019. 

 

If the construction projects cannot be started on time, the Transferee shall submit deferral application to the Transferor 30 days in advance. With the Transferor's consent to the deferring, its project completion time will be extended accordingly, but the deferral period cannot exceed one year. 

 

Article 17      In the process of constructing projects within the parcel land construction under this Contract, the Transferee shall handle the engineering connecting water, gas, sewage and other facilities with the main line, electricity substation interface and the introduction of engineering according to relevant regulations. 

 

The Transferee allows various pipes and pipeline to pass through the Transferee parcel land by the government for the needs of public utilities, but if this impacts the usage functions of the transferred parcel land, government or utility construction subject shall give a reasonable amount of compensations. 

 

Article 18      The Transferee shall use the land in accordance with the land use and the plot ratio as agreed under this Contract, which are not allowed to change without authorization. Within the transfer period, when there is a need to change the land use as agreed in this Contract, both parties consent to the provisions in Item I of this Article. 

 

(I) Transferor recovers the construction land use rights by payment. 

 

(II) Handle changes in land use approval procedures according to law, sign the alternation agreement of state-owned construction land use right grant contract or resign the transfer contract for state-owned construction land use right; the Transferee assess the difference between the market price and the market price of construction land use right under the original land-use in accordance with the approved construction land use right, make a supplementary payment for transfer price of state-owned construction land use right, and apply for the registration of land alteration. 

 

 

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Article 19      Within a service period of parcel land use under this Contract, the Government reserves the rights of planning and adjusting the land under this Contract. If the original plan is subject to change, the existing buildings of the parcel land will not be affected, but the alteration, renovation, reconstruction of the buildings, structures and ancillary facilities or application for renewal for expiration involved shall be executed in accordance with the effective planning in the service period. 

 

Article 20      As for the state-owned construction land use right legally used by the Transferee, the Transferor can only withdraw it after the durable years agreed in this Contract expire; If the state-owned construction land use right shall be withdrawn in advance based on need of public interest on special occasions, the Transferor shall report for approval according to legal procedures and compensate the land users as per the value of ground buildings, structures and ancillary facilities when withdrawing, the evaluated market price of state-owned construction land use right of remaining term and direct loss identified after evaluation. 

 

Chapter IV      Transfer, Leasing and Mortgage of State-owned Construction Land Use Right 

 

Article 21      After the Transferee paying all transfer price for state-owned construction land use right as agreed in this Contract and gaining the use certificate of state-owned land, the Transferee shall be entitled to transfer, lease and mortgage the state-owned construction land use right under this Contract in part or in whole. Transfer for the first time shall meet conditions stipulated in Item I of this Article: 

 

(I) Invest and develop in accordance with the agreement under this Contract, and complete more than 25% of the total development investment amount; 

 

(II) Invest and develop in accordance with the agreement as specified in this Contract, and there is industrial land or other land for construction conditions formed. 

 

Article 22      The transfer, leasing and mortgage contracts of the state-owned construction land use right shall not be contrary to national laws, regulations and this Contract. 

 

Article 23      After all or part of the state-owned construction land use right under the Contract is transferred, the rights and obligations set forth in this Contract and the land registration document shall be transferred, too. The service life for the state-owned construction land use right shall be the remaining service life by deducting the used service life from the service life agreed in this Contract. 

 

After all or part of the state-owned construction land use right under this Contract is leased, the Transferee shall bear the rights and obligations set forth in this Contract and the land registration document. 

 

Article 24      If the state-owned construction land use right is transferred and mortgaged, the both parties shall go to the Land and Resource Management Department for registration of change with this Contract, the corresponding transfer, mortgage contracts and state-owned land use certificate. 

 

 

 

Chapter V      Expiration of the term 

 

Article 25      If the useful life agreed in this Contract gets expired, the land users who need to continue to use the parcel land under this Contract shall submit renewal application to the Transferor at least one year before the expiration. It shall be approved unless the Transferor needs to withdraw the parcel land under this Contract because of social and public interests need. 

 

On expiration of residential construction land using right, this Contract will be automatically renewed. 

 

If the Transferor consents to the renewal of the land use, the land user shall handle paid land procedure such as transfer, lease, re-sign paid land use contracts, such as the transfer, leasing contracts, and pay for paid land use fees such as land transfer price and rental. 

 

 

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Article 26      If land transfer period gets expired, the land users whose renewal application gets unapproved because of social and public interests need shall return State-owned Land Use Certificate and cancel the state-owned construction land use right registration in accordance with the regulations. The state-owned construction land use right is reclaimed freely by the Transferor. Transferor and land users consent to the ground buildings, structures and ancillary facilities on the parcel land under this Contract and perform in accordance with the Item I of this Article: 

 

(I) The Transferor shall recover ground buildings, structures and the ancillary facilities and equipments and makes corresponding loss compensations for the land user according to the residual value of ground buildings, structures and the ancillary facilities and equipments on the land at the recovery time. 

 

(II) The Transferor shall recover ground buildings, structures and the ancillary facilities and equipments on the land without compensation. 

 

Article 27      If land transfer period gets expired, the land users don't renewal application, they need shall return State-owned Land Use Certificate and cancel the state-owned construction land use right registration in accordance with the regulations. The state-owned construction land use right is reclaimed freely by the Transferor. The ground buildings, structures and ancillary facilities on the parcel land under this Contract shall be reclaimed freely by the Transferor, and the land user shall maintain the normal use function of the ground buildings, structures and ancillary facilities and avoid man-made destruction. If the ground building, structures and the ancillary facilities on the land lose their normal use functions, the Transferor can require the land user to remove or dismantle buildings, structures and the ancillary facilities on the land and recover the site formation. 

 

Chapter VI      Force Majeure 

 

Article 28      If part or all of the Contract cannot be implemented by either party due to the force majeure, the liability of the party can be exempted from but he must take all necessary remedial measures to reduce the losses caused by the force majeure. The parties should be responsible for force majeure during the delay in performance. 

 

Article 29      In case of force majeure, the party should write to inform the other party the force majeure by letter, telegram, and fax and so on within 7 days and submits the reports and certificates of a part or whole part of unable to perform or requiring to delay the execution under this Contract within 15 days of the occurrence of the force majeure. 

 

Chapter VII      Liability for Breach of Contract 

 

Article 30      Transferee shall timely pay the transfer price of state-owned construction land use right in accordance with this Contract. If the Transferee who cannot pay for the state-owned construction land use right transfer price on time shall pay liquidated damages to the Transferor in 1‰ of delay payments daily from the date of nonpayment. If the payment is deferred more than 60 days, and the Assignee still cannot pay for the state-owned construction land use right transfer price after the Transferor's expediting, the Transferor has the right to cancel the contract and the Assignee has no right to demand the return of the down payment. The Transferor may request the Assignee to compensate for the losses. 

 

Article 31      In case of the Transferee terminating investment and construction of such project for its own reason and proposing to the Transferor to terminate performance of this Contract and requiring land return, the Transferor shall refund all or partial transfer price for state-owned construction land use right (without interest calculated) excluding the down payment stipulated in this contact after reporting to the original People's Government which approved the land transfer scheme for approval, withdraw the state-owned construction land use right, completed buildings, structures and ancillary facilities within the scope of the parcel land won't be compensated, and the Transferor can also require the Transferee to eliminate completed buildings, structures and ancillary facilities and recover site formation; But if the Transferor is willing to continue to use completed buildings, structures and ancillary facilities within the scope of the parcel land, it shall give some compensations to the Transferee: 

 

(I) If the Transferee applies to the Transferor in less than 60 days a year ago before the date of expiry of this Contract started construction, the Transferor returns the state-owned construction land use right transfer price that Transferee has paid after deducting the down payment; 

 

 

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(II) If the Transferee applies to the Transferor in more than a year ago but less than two years and in no less than 60 days before two years of the date of expiration of the contract started construction, the Transferor shall return the remaining transfer price of state-owned construction land use right that Transferee has paid after deducting the down payment of this Contract and idle land fee in accordance with relevant regulations. 

 

Article 32      In case of land vacancy caused by the Transferee and time of land vacancy being more than one year but less than two years, the idle land fee shall be paid according to law; In case of the time of land vacancy being more than two years and construction failing to start, the Transferor shall be entitled to withdraw the state-owned construction land use right free of charge. 

 

Article 33      If the Transferee who fails to start construction on the agreed date or the agreed deferred date of this Contract shall pay liquidated damages to Transferor equivalent to 0.55‰ of the gross amount of the state-owned construction land use right transfer price for each delayed day. The Transferor has the right to ask the Transferee to continue performing the Contract. 

 

If the Transferee who fails to complete construction on the agreed date or the agreed deferred date of this Contract shall pay liquidated damages to Transferor equivalent to 0.55‰ of the gross amount of the state-owned construction land use right transfer price for each delayed day. 

 

Article 34      If the total fixed assets investment, investment intensity and total development investment do not meet the agreed standard as agreed in the contract, the Transferor is entitled to require the Transferee to pay liquidated damages equal to the same proportion of transfer price for the state-owned construction land use right based on the proportion that actual differential section accounting for the agreed total investment and investment intensity and to require the Transferee to continue to perform the Contract. 

 

Article 35      In case of any one of indexes such as plot ratio, density of building of the parcel land under this Contract being lower than the minimum standard agreed in this Contract, the Transferor can require the Transferee to pay liquidated damages equal to the same proportion of transfer price for the state-owned construction land use right based on the proportion that actual differential section accounting for agreed minimum standard and has the right to require the Transferee to continue performance of this Contract; In case of any one of indexes such as plot ratio, density of building being higher than the highest standard agreed in this Contract, the Transferor will have the right to withdraw the partial area which is higher than the agreed highest standard, and have the right to require the Transferee to pay liquidated damages equal to the same proportion of transfer price for state-owned construction land use right based on the proportion that actual differential section accounting for agreed standard. 

 

Article 36      Any indicators of the industrial construction projects, such as greening rate, the proportion of internal administrative land for office and living service facilities, the internal administration office and living service facilities construction area, etc. exceeds the standard agreed in the contract, the Transferee should pay the Transferor liquidated damages equivalent to 1‰ of the transfer price of the parcel land and remove the greening and building facilities. 

 

Article 37      In case that the Transferee pays the transfer price for the state-owned construction land use right according to the Contract, the Transferors must deliver the land on schedule according to the agreement in the Contract. If the Transferee's possession of parcel land under this Contract is delayed because the Transferor fails to furnish the land on time, the Transferor should pay liquidated damages equal to 1‰ of the transfer price of state-owned construction land use right to the Transferee. The land use term starts from the actual furnishing date. If Transferor delays the delivery of land for more than 60 days and fails to deliver land after the Transferee's expediting, the Transferee is entitled to cancel the contract and the Transferor shall return of the deposit in double and refund the rest of the state-owned construction land use right transfer price has been paid. Transferee may request the Transferor to compensate for the losses. 

 

 

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Article 38      If the Transferor fails to deliver land on time or the delivery of land fails to meet the agreed land conditions of the contract or performs unilateral changes in land use conditions, the Transferee is entitled to require the Transferor to fulfill obligations in accordance with the specified conditions and compensate for direct loss caused by the delayed performance. The land use term shall be calculated starting from the date that the land meets the agreed land conditions. 

 

Chapter VIII     The Application of Law and the Dispute Resolution 

 

Article 39      The foundation, force, explanation, implementation and solution of disputes of the contract apply to the law of the People's Republic of China. 

 

Article 40      The dispute arising from the performance of this Contract shall be resolved by the parties through consultation. If the consultation fails, the dispute shall be resolved in accordance with the agreed ways of Item I in this Article: 

 

(I) Submit to the Arbitration Committee for arbitration in Handan; 

 

(II) Bring a suit to a People's Court in accordance with the law. 

 

Chapter IX      Supplementary Provisions 

 

Article 41      The scheme of the parcel land transfer has been approved by the People's Government in Wu'an. This contact shall take effect from the date of signature of the both parties. 

 

Article 42      The parties ensure that the name, postal address, telephone number, fax number, account opening bank, agent filled in the contract is real and effective. If the information of one party is subject to change, this party shall inform the other party in written form within 15 days after the change, otherwise the responsibility resulting from untimely information shall be borne by the change party. 

 

Article 43      The Contract and the Appendix have XXX pages in total, and the Chinese writing shall prevail. 

 

Article 44      The Contract price, the amount and area, etc. should be both in words and in figures, and the amount should be consistent; if inconsistent, and in words will prevail. 

 

Article 45      Matters not covered in this Contract can by the both parties agreed as an Appendix to the Contract, which has the same legal effect. 

 

Article 46      The Contract shall be in quadruplicate, two copies for the Transferor and two copies for the Transferee, which have the same legal effect. 

 

 

 

	
Transferor (Seal): 

Wu'an City Land and Resources Bureau (Seal) 
	
Transferee (Seal): 

Northern Altair Nanotechnologies Co., Ltd. (seal) 

	 	 
	
Legal representative (entrusted agent): 

(signature): 
	
Legal representative (entrusted agent): 

(signature): 

April 20, 2015 

 

 

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The diagram of transfer parcel land 

 

Unit: m  

 

 

 

 

	
1980 Xi'an Coordinate System 
	
1: 2500 
	
Drawn by: Cui Danyang 

	 	 	 
	
Measure the boundary points by the analytic method in MM/YYYY 
	  	
Reviewed by: Cui Ning 

 

Drawing Date: DD/MM/YYYY 

 

Date of approval: DD/MM/YYYY 

 

 

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Appendix 2 

 

Vertical boundary of the Transferred Parcel Land 

 

	

 

The elevation system: ____________________ 

Plotting scale: 1: ___________________ 

 

 

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Wu'an City Bureau of Housing and Urban-Rural Development 

 

Planning conditions of the construction land for the Altair Project in the New Energy Industrial Park 

 

No. 005 of No. 2012 Planning Design Conditions 

 

I.      Land location: To the north of Handan-Wu'an Expressway, to the south of Yudaihe South Road, to the east of Caogongquan Avenue, and to the west of East Second Ring. 

 

	
II. 
	
Land Parcel Area The gross land area is 1400576.26m2, whereby, the net land area is 1170302.81m2, the urban road area is 69406.23m2, and the greening belt area is 160867.22m2. 

 

	
III. 
	
Land purposes: The area of first-class industrial land (M1) is 1109268.44m2, and the area of public management and service facility land (A) is 61034.37m2. 

 

	
IV. 
	
Plot ratio: ≥0.6, ≤1.5 (Industry); ≥1.5 ≤3.0 (Public facilities). 

 

	
V. 
	
Building Density: ≥30% (Industry); ≤30% (Public facilities) 

 

	
VI. 
	
Greening rate: ≤20% (Industry); ≥35% (Public facilities) 

 

	
VII. 
	
Parking lot: The parking lot for motor vehicles shall be executed by referring to The Management Rule (on trial) of Parking Lot Setting for Motor Vehicles in Urban Construction Engineering in Handan City (Hanguibanzi [2011] No. 74); The non-motor vehicle parking lot is with the construction area of 2 cars/100m2. 

 

	
VIII. 
	
The building setback red line, green line and the planning land boundary distance; The setback green line is no less than 20 meters against the Handan-Wu'an Expressway and no less than 15 meters against the East Second Ring, and the setback red line is no less than 6 meters against South Yudaihe Road and Caogongquan Avenue, and the setback boundary distance is executed in accordance with Detailed Rules for the Implementation of Urban Planning Management Regulations of Handan City and related rules. 

 

	
IX. 
	
Building interval: the building interval shall comply with the requirements of Detailed Rules for the Implementation of Urban Planning Management Regulations of Handan City and related regulations. 

 

	
X. 
	
The main exit and entrance directions for motor vehicles: the directions shall be set near Handan-Wu'an Expressway and East Second Ring, and be satisfied the distance requirements of the exit and entrance locations and road intersections. 

 

	
XI. 
	
The landscape requirements: the elevation style shall be modern, embody the novel design philosophy and be in harmony with the surroundings; the manufacturing workshops shall be embodied the industrial building features. 

 

	
XII. 
	
The municipal public supporting facilities: shall be carried out as per related stipulations. 

 

	
XIII. 
	
Other Requirements: 1. The land area for the administrative office and living service facilities shall not exceed 7% of the gross land area. 2. The building design shall be in new materials and technologies, the high technological contents and coincident energy-saving requirements shall be done. 3. Various engineering lines must be laid underground; 4. Various indicator calculations shall be based on the net land area. 

 

	
XIV. 
	
The validity period of the planning conditions: The validity period shall be within two years from the date of issuance, and be automatically invalid in case the construction unit fails to carry out construction on the allocated and transferred land. 

 

	
XV. 
	
Appendix: The attached map of the planning design conditions for the construction land of the Altair Project in the New Energy Industrial Park in Wu'an City 

 

July 19, 2012 

 

-12-ex10-64.htm

Exhibit 10.65

 

Employment Agreement

(Level 13 Officer)

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of August 15, 2014 (the “Effective Date”), by and among Altairnano, Inc., a Nevada corporation (the “Company”), Altair Nanotechnologies Inc., a Delaware corporation (“Parent”), together with the Company and all direct or indirect majority-owned subsidiaries of the Parent or the Company, the “Consolidated Companies”; each, a “Consolidated Company”), and James Tao Zhan, an individual (“Employee”).

 

RECITALS

 

A.     The Company is a wholly-owned indirect subsidiary of Parent and holds, directly or indirectly, a substantial portion of the operating assets of the Consolidated Companies and the shares of certain operating subsidiaries of the Consolidated Companies.

 

B.     Employee was named Chief Executive Officer of the Company on August 15, 2014 (the “Date of Hire”).

 

C.     Parent and the Company desire to retain Employee as an employee of a Consolidated Company subject to the terms and conditions of this Agreement.

 

D.     Employee desires to be retained as an employee of a Consolidated Company subject to the terms and conditions of this Agreement.

 

NOW, THEREFORE, in consideration of this Agreement and of the covenants and conditions contained in this Agreement, the parties hereto agree as follows:

 

1.           Employment; Location. The Company hereby employs Employee during the Term, and Employee hereby accepts such employment. The initial “Place of Employment” for Employee shall be in Anderson, Indiana. If the Company requests that Employee relocate and Employee agrees to such request, the relocated place of employment shall thereafter be the “Place of Employment”.

 

2.           Term. The term of this Agreement (the “Term”) shall commence on the Date of Hire and shall terminate upon the earlier to occur of (i) the Expiration Date (as defined below), or (ii) the termination of Employee’s employment with all of the Consolidated Companies.

 

2.1     Expiration Date defined – The initial Expiration Date shall be the two-year anniversary of the Date of Hire. Unless the Company or Employee provides the other with at least ninety (90) days advance written notice prior to the initial Expiration Date (and each Expiration Date thereafter) of its intention not to renew this term of Agreement following the then-current Expiration Date, the Expiration Date shall automatically be changed to the two-year anniversary of the then-current Expiration Date.

 

 

Employment Agreement – James Tao Zhan

1 of 13

 

 

2.2     Survival of Certain Sections Until End of Statute of Limitations. Notwithstanding anything in this Agreement to the contrary, Section 7 and 8 shall survive termination of this Agreement and expiration of the Term for the time periods set forth therein, and this sentence and all provisions relating to the interpretation or enforcement of, and disputes under, this Agreement shall survive until the expiration of the last applicable statute of limitations.

 

3.           Duties. Employee’s title shall be Chief Executive Officer of Altair Nanotechnologies, Inc. Employee’s duties shall include such duties as are specifically assigned or delegated to Employee by the Board of Directors of any Consolidated Company (any such Board of Directors, the “Board”) and such other duties as are typically performed by an employee with the same position as Employee. Employee acknowledges that, subject to Section 6.3(c), the Board may change, increase or decrease Employee’s title, position and/or duties from time to time its discretion and may appoint Employee as employee of another Consolidated Company, which employment is governed by this Agreement. Employee shall diligently execute his duties and shall devote his full time, skills and efforts to such duties during ordinary working hours. Employee shall faithfully adhere to, execute and fulfill all lawful policies established from time to time by the Consolidated Companies.

 

4.           Compensation and Benefits. The Company shall pay Employee, and Employee accepts a full compensation for all services to be rendered to all Consolidated Companies, the following compensation and benefits:

 

4.1         Base Salary. During the Term, the Company shall pay Employee an annual base salary per year in an amount not less than $300,000. Such annual base salary shall be payable in accordance with the Company’s customary pay schedule. During the Term, the base salary of Employee shall not be reduced below the minimum required by this Section.

 

4.2         Stock Options.

 

(a)     Parent has granted to Employee options to purchase an aggregate of 66,666 common shares of Parent subject to the terms and conditions of the applicable stock incentive plan.

 

(b)     During the period of Employee’s employment with a Consolidated Company, Parent may from time to time grant to Employee options to purchase common shares of Parent and/or issue to Employee common shares that are subject to rights of forfeiture or repurchase under certain terms and conditions (such options or shares, “Equity Awards”). Parent agrees that all agreements governing Equity Awards shall provide (if not already so amended) that such Equity Awards shall, unless otherwise requested by Employee in writing, immediately vest as of the effective date of the Change of Control Event. A “Change of Control Event” means (a) any capital reorganization, reclassification of the capital stock of Parent, consolidation or merger of Parent with another corporation in which Parent is not the survivor (other than a transaction effective solely for the purpose of changing the jurisdiction of incorporation of Parent), (b) the sale, transfer or other disposition of all or substantially all of the Consolidated Companies’ assets to another entity, (c) the acquisition by a single person (or two or more persons acting as a group, as a group is defined for purposes of Section 13(d)(3) under the Securities Exchange Act of 1934, as amended), other than Energy Storage Technology (China) Group Ltd and its affiliates, of more than 40% of the outstanding common shares of Parent.

 

 

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4.3     Bonus. Employee shall be eligible to receive an annual performance bonus when, as and if determined by the Board in such amount, and subject to such conditions, as determined by the Board. Employee and the Board shall, prior to the end of the first month of each calendar year, negotiate in good faith with the objective of agreeing upon performance objectives and related bonus amounts for the upcoming fiscal year. If Employee and the Board are not able to reach a mutual agreement as to performance objectives or the potential amount of the bonus (or have no such negotiation) the objectives and amount of any bonus shall be in the discretion of the Board. In all circumstances, the bonus owing to Employee hereunder, if any, shall be paid to Employee prior to March 15th of the year following the year in which Employee has achieved the agreed-upon performance objectives, such achievement being determined in the sole discretion of the Board.

 

4.4     Additional Benefits. Employee shall be eligible to participate in, and be subject to, the Consolidated Companies’ employee benefit plans for, and policies governing, employees, if and when any such plans and policies may be adopted, including, without limitation, bonus plans, pension or profit sharing plans, incentive stock plans, and those plans established in the discretion of the Board for individual participation in any such plans and policies as may be in effect from time to time.

4.5     Vacation, Sick Leave, and Holidays. Beginning on the Date of Hire, Employee shall be entitled to three (3) weeks vacation and sick leave in addition to Company-designated holidays at full pay in accordance with the Consolidated Companies’ policies.

 

4.6     Deductions. The Company shall have the right to deduct from the compensation due to Employee hereunder and all sums required for social security and withholding taxes and for any other federal, state or local tax or charge which may be hereafter enacted or required by law as a charge on any cash or non-cash compensation of Employee.

 

5.           Business Expenses. The Company shall promptly reimburse Employee for all reasonable out-of-pocket entertainment and business expenses Employee incurs in fulfilling Employee’s duties hereunder subject to, and in accordance with, the general reimbursement policy of the Consolidated Companies in effect from time to time.

 

 

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6.           Termination of Employee’s Employment.

 

6.1     Termination of Employment by the Company for Cause. Employee’s employment may be terminated by the Consolidated Companies at any time for “Cause”. A determination of whether Employee’s actions justify termination for Cause shall be made by the Board. A termination of Employee’s employment pursuant to this Section 6.1 shall be effective as of the effective date of the notice by the Board of Parent to Employee that it has made the required determination, or as of such subsequent date, if any, as is specified in such notice. For purposes of this Agreement, “Cause” shall include (a) Employee’s material breach of this Agreement, which breach cannot be cured or, if capable of being cured, is not cured within fifteen (15) days after receipt of written notice of the need to cure, (b) any act of theft, embezzlement, conversion or other taking or misuse of the property or opportunities of the Consolidated Company, (c) any fraudulent or criminal activities, (d) any grossly negligent or unethical activity, (e) any activity that causes substantial harm to any Consolidated Companies, its reputation, or to its officers, directors or employees (including, without limitation, the illegal possession or consumption of drugs for which Employee does not have a valid prescription on property controlled by any Consolidated Company or in the course of performing services for any Consolidated Company), or (f) habitual neglect of or deliberate or intentional refusal to perform Employee’s duties and obligations under this Agreement.

 

6.2     Termination by the Company Without Cause. Employee’s employment with each Consolidated Company is “at will” and may be terminated at any time by any of the Consolidated Companies with, or without, Cause or Good Reason. Any termination shall be effective as of the date specified in the notice of termination.

 

6.3     Termination By Employee for Good Reason. Employee may terminate his employment with any and all Consolidated Companies at any time for Good Reason (as defined below), provided Employee has delivered a written notice to the Board of Parent that briefly describes the facts underlying Employee’s belief that Good Reason exists and the Company has failed to cure such situation within thirty (30) days of its receipt of such notice.

 

For purposes of this Agreement, “Good Reason” shall mean and consist of: (a) a material breach by the Company of any of its obligations, duties, agreements, representations or warranties under this Agreement that cannot be cured or, if capable of being cured, is not cured within thirty (30) days after receipt of written notice from the Employee of the need to cure; (b) without Employee’s prior written consent, the Consolidated Company requires the Employee to relocate Employee’s place of employment to any place other than the Place of Employment as a condition to continued employment or maintenance of the same or a comparable position with the Consolidated Companies (provided that reasonable business travel shall not constitute a relocation of Employee’s place of employment and required relocation shall constitute Good Reason only following the Consolidated Companies’ notification of Employee of its requirement that Employee relocate and prior to Employee’s agreement to relocate his place of employment), or (c) during the period ninety (90) days prior to and one year after a Change of Control, there is a material adverse change in Employee’s title, position and/or duties within the Consolidated Companies as a whole.

 

6.4     Termination by Employee without Good Reason. Upon not less than fifteen (15) days prior written notice (which notice shall specify the effective date of the termination), Employee may terminate his employment with any and all Consolidated Companies by such notice without Good Reason or any reason of any kind.

 

 

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6.5     Termination of Employment by Death. If Employee dies during the term of employment, Employee’s employment with all Consolidated Companies shall be terminated effective as of the date of Employee’s death.

 

6.6     Disability. The Company or Employee may terminate Employee’s employment with all Consolidated Companies if Employee shall become unable to fulfill his duties under this Agreement, as measured by the Consolidated Companies’ usual business activities, for the eligibility period set forth in the long-term disability policy under which Employee is potentially eligible to receive disability benefits (the “Eligibility Period”) by reason of any medically determinable physical and/or mental disability determined in accordance with the procedure in this Section 6.6. If in the opinion of the Company or Employee, Employee is disabled, then the following shall occur:

 

(a)     the Company or Employee shall promptly so notify (by dated written notice) the insurance company or carrier that, at that time, insures that employees of the Company against long-term disability (the “Company’s Insurance Carrier”) and request a determination as to whether Employee is disabled pursuant to the terms of the Company’s long-term disability plan or policy; and

 

(b)     the matter of Employee’s disability shall be resolved, and Employee and the Company shall abide by the decision of, the Company’s Insurance Carrier.

 

A termination of Employee’s employment pursuant to this Section 6.6 shall be effective at the expiration of the Eligibility Period. If Employee is not covered by a Company-sponsored long-term disability policy on the date that the Company and/or Employee believe that Employee may have a medically determinable physical and/or mental disability, the Board of Parent shall make the determination of whether Employee has a medically determinable physical and/or mental disability using the definition of disability, including applicable court interpretations used for purposes of the Americans With Disabilities Act of 1990, as amended, and the “Eligibility Period” shall be 90 days from the date as of which it is determined that the Employee commenced having a medically determinable disability.

 

	
7.
	
Effect of Termination of Employee’s Employment.

 

7.1     Provisions Applicable to All Terminations. If Employee’s employment with all Consolidated Companies is terminated for any reason, (a) all cash compensation from the Company described in this Agreement that was due through the effective date of the termination, but unpaid, shall be computed and paid to Employee by the Company within any payment deadline set forth in Indiana law (or if none is applicable within thirty (30) days), provided that any disability payments to be made by the Company’s Insurance Carrier shall be made when, as and if made by the Company’s Insurance Carrier; and (b) Employee, or his heirs, or estate, as the case may be, shall receive all compensation and employee benefits accrued through the effective date of the termination, and all benefits provided through the Company’s insurance plans pursuant to the terms and conditions of such insurance plans or that the Company is required to provide by governing law.

 

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7.2     Termination Absent a Change of Control and Absent Cause/ Good Reason. If Employee’s employment with all of the Consolidated Companies is terminated under any circumstances other than the circumstances described in Section 7.3 or Section 7.4 below, whether by the Consolidated Companies or Employee, Employee shall not be entitled to any compensation in addition to that set forth in Section 7.1

 

7.3     Termination by Employee for Good Reason. If Employee’s employment is terminated by Employee for Good Reason after the period commencing ninety (90) days following the Date of Hire (which 90-day period shall be referred to as the “Probation Period”) and during the Term (but not as of an Expiration Date), then in addition to complying with the requirements of Section7.1, the Company shall, subject to the terms and conditions of this Agreement (including Section 7.8) and conditioned upon the Company’s receipt of a written waiver, release and non-litigation agreement from Employee in form and substance reasonably satisfactory to the Consolidated Companies with respect to all liabilities of any Consolidated Company of any kind arising prior to and in connection with such termination (other than under Options and Section 7) (a “Release”), pay to or for the benefit of Employee or, if applicable, Employee’s heirs or estate:

 

(a) With respect to the Severance Period (as defined in Section 7.5), Employee’s base salary at a rate equal to Employee’s salary rate as of the date of termination paid in accordance with the Company’s customary pay schedule; and

 

(b) Reimbursement of actual Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) expenses related to any election to continue Company health benefits coverage then in effect under COBRA (with Company /Employee contributions remaining the same on a percentage basis as during the period immediately prior to termination) for a period of eighteen (18) months commencing on the first day of the Severance Period.

 

Notwithstanding anything in this Section 7.3 to the contrary: (A) no base salary continuation otherwise payable to the Employee under this Section 7.3 shall be paid unless and until the Employee incurs a Separation from Service from the Company during the Severance Period (with any amounts deferred as a result of this subsection 7.3(A) being payable promptly following such Separation from Service and as permitted by subsection 7.3(B)); and (B) any base salary amounts that are otherwise due or payable under this Section 7.3 during the six-month period following the Employee’s Separation from Service shall instead be deferred and paid to the Employee within five (5) business days after, but in no instance prior to, the six-month anniversary of Employee’s Separation from Service (or, if earlier, the date of Employee’s death) if and to the extent that such amounts (1) do not constitute “separation pay due to involuntary separation from service” (as defined in Treasury Regulation Section 1.409A-1(b)(9)(iii) as a result of the application of the separation from serve for good reasons provisions set forth in Treasury Regulation Section 1.409A-1(n)(2)(ii)); and (2) are subject to Code Section 409A. All base salary continuation amounts owing to Employee with respect to portions of the Severance Period following the six-month anniversary of the Separation of Service shall be paid in accordance with the Company’s customary pay schedule. The foregoing payment structure is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and shall be interpreted consistently with that intent. For purposes of clarity, if the employment of Employee is terminated during the Probation Period, Employee shall not be entitled to any payments under this Section 7.3.

 

 

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7.4     Termination by Company without Cause. If Employee’s employment is terminated by Parent or the Company without Cause at any time after the Probation Period and during the Term (but not as of an Expiration Date), then, in addition to complying with the requirements of Section 7.1, the Company shall, subject to the terms and conditions of this Agreement (including Section 7.8) and conditioned upon the Company’s receipt of a Release, continue to pay, when due in accordance with the Company’s customary pay schedule, to or for the benefit of Employee or, if applicable, his heirs or estate, subject to (A) and (B) below:

 

(a) Employee’s base salary at a rate equal to Employee’s salary rate as of the date of termination during the Severance Period.

 

(b) Reimbursement of actual COBRA expenses related to any election to continue Company health benefits coverage then in effect under COBRA (with Company /Employee contributions remaining the same on a percentage basis as during the period immediately prior to termination) for a period of eighteen (18) months commencing on the first day of the Severance Period.

 

Notwithstanding anything in this Section 7.4 to the contrary: (A) no base salary continuation otherwise payable to the Employee under this Section 7.4 shall be paid unless and until Employee incurs a Separation from Service from the Company during the Severance Period (with any amounts deferred as a result of this subsection 7.4(A) being payable promptly following such Separation from Service and as permitted by subsection 7.4(B)) and (B); any base salary amounts that are otherwise due or payable under this Section 7.4 during the six-month period following the Employee’s Separation from Service shall instead be deferred and paid to the Employee within five (5) business days after, but in no instance prior to, the six (6) month anniversary of Employee’s Separation from Service (or, if earlier, the date of Employee’s death) if and to the extent that such amounts (1) do not constitute “separation pay due to involuntary separation from service” (as defined in Treasury Regulation Section 1.409A-1(b)(9)(iii)); and (2) are subject to Code Section 409A. All base salary continuation amounts owing to Employee with respect to portions of the Severance Period following the six (6) month anniversary of the Separation of Service shall be paid in accordance with the Company’s customary pay schedule. The foregoing restrictions on the payment of continuing base salary are intended to comply with the requirements of Section 409A of the Code and shall be interpreted consistently with that intent. For purposes of clarity, if the employment of Employee is terminated during the Probation Period, Employee shall not be entitled to any payments under this Section 7.4.

 

7.5     Severance Period. Subject to Section 7.7, the “Severance Period” shall be a period of two (2) months for each year of employment with the Company (prorated for any partial periods). The Severance Period shall commence when a “separation from service” occurs, as defined in Treasury Regulation Section 1.409A-1(h) (a “Separation from Service”).

 

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7.6     Return of Company Property. Upon the termination or end of the employment of Employee with the Consolidated Companies or at any time upon the request of Parent, Employee shall provide to the Consolidated Companies all property belonging to any Consolidated Company, including, but not limited to, keys, card passes, credit cards, electronic equipment including computers and personal digital devices, cellular telephones, Consolidated Company automobiles, and all data and any Consolidated Company intellectual property whether located on Consolidated Company property or otherwise.

 

7.7     Breach of Protective Covenants. Notwithstanding anything in this Section 7 to the contrary, Employee shall not be entitled to any payments or benefits under any of Sections 7.3 or 7.4 of this Agreement with respect to any period (a) prior to Employee’s delivery to the Company of a Release if such Release is not executed within seven (7) days of Employee’s receipt of a form of Release, (b) prior to Employee’s delivery of the resignations required by Section 7.8, if applicable, (c) during which Employee is in breach of Section 7.6 or any portion of Section 8 of this Agreement, (d) during which Employee is in breach of any portion of the Proprietary Information Agreement (any of (a), (b), (c) or (d), a “Covenant Breach”). Upon the Company’s determination that a Covenant Breach has occurred, it shall notify Employee of its belief that a Covenant Breach has occurred and may withhold, without penalty or interest, any payments or benefits otherwise due to Employee pursuant to any of Section 7.3 or 7.4 until the question of whether a Covenant Breach has occurred is definitely resolved without right to appeal or similar recourse (and if it is determined that the Company withheld the payments and benefits in error, the Company’s sole obligation shall be prompt payment of all withheld payments and the cash value to the Company of any withheld benefits).

 

7.8     Resignation from Board of Directors. Within forty-eight (48) hours of the termination of Employee’s employment with the Company and Parent, Employee shall submit to Parent a written resignation from the board of directors of all Consolidated Companies on which Employee is a director. 

 

	
8.
	
Covenant Not to Compete

 

8.1     Covenant. Employee hereby agrees that, while Employee is employed by any Consolidated Company and during a period of twelve (12) months following the termination of Employee’s employment with all Consolidated Companies, Employee will not directly compete (as defined in Section 8.2 below) with any the Consolidated Company or any affiliates anywhere in the United States or China. It is the intention of Parent, the Company and Employee that this provision be interpreted to only prevent actual competitive harm to any Consolidated Company and not otherwise hinder or restrict Employee in his efforts to find continued employment in Employee’s field of training and expertise.

 

 

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8.2     Direct Competition. As used herein, the phrase “directly compete” shall include owning, managing, operating or controlling, or participating in the ownership, management, operation or control of, or being connected with or having any interest in, as a stockholder, director, officer, employee, agent, consultant, assistant, advisor, sole proprietor, partner or otherwise, any Competing Business (as defined below). For purposes of this Agreement, a “Competing Business” shall be any business or enterprise other than any Consolidated Company that is engaged in the Energy Storage Business (as defined below). This prohibition, however, shall not apply to ownership of less than five percent (5%) of the voting stock in companies whose stock is traded on a national securities exchange or in the over-the-counter market. For purposes of this Agreement, the “Energy Storage Business” means the development, marketing, sale or exploitation of (a) lithium titanate oxide, or (b) rechargeable batteries, rechargeable batteries systems or energy storage systems comprised of rechargeable batteries.

 

8.3     Nonsolicitation. Employee hereby agrees that, while he is employed by any Consolidated Company pursuant to this Agreement and during a period of 12 months following the termination of Employee’s employment with all Consolidated Companies, Employee will not, directly or indirectly, through an affiliate or otherwise, for his account or the account of any other person, (a) solicit business substantially similar to the Energy Storage Business from any person or entity that at the time of termination is or was a customer of any Consolidated Company, whether or not Employee had personal contact with such person during and by reason of employment with a Consolidated Company; (ii) in any manner induce or attempt to induce any employee of a Consolidated Company to terminate his employment with a Consolidated Company; or (iii) materially and adversely interfere with the relationship between a Consolidated Company and any employee, contractor, supplier, customer or shareholder of a Consolidated Company.

 

8.4     Enforceability. If any of the provisions of this Section 8 is held unenforceable, the remaining provisions shall nevertheless remain enforceable, and the court making such determination shall modify, among other things, the scope, duration, or geographic area of this Section to preserve the enforceability hereof to the maximum extent permitted by law. In addition, the enforceability of this Section is also subject to the injunctive and other equitable powers of a court as described in Section 11 below.

 

8.5     Jurisdiction. For the sole purpose of enforcement of the Consolidated Companies’ rights under this Section 8, Parent, the Company and Employee intend to and hereby confer jurisdiction to enforce the restrictions set forth in this Section 8 (the “Restrictions”) upon the courts of any jurisdiction within the geographical scope of the Restrictions. If the courts of any one or more of such jurisdictions hold the Restrictions unenforceable by reason of the breadth of such scope or otherwise, it is the intention of Parent, the Company and Employee that such determination not bar or in any way affect any Consolidated Company’s rights to the relief provided above in the courts of any other jurisdiction within the geographical scope of the Restrictions, as to breaches of such covenants in such other respective jurisdictions, such covenants as they relate to each jurisdiction being, for this purpose, severable into diverse and independent covenants. In the event of any litigation between the parties under this Section 8, the court shall award reasonable attorneys fees to the prevailing party.

 

 

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9.     Confidential Information, Invention Assignment, Etc. Employee represents and covenants that Employee has signed and delivered to Parent (or will sign and deliver upon request) an Employment, Confidential Information, Invention Assignment, Nonsolicitation and Arbitration Agreement is a condition precedent to Employee’s eligibility for any rights and benefits under this Agreement (the “Proprietary Information Agreement”). The Proprietary Information Agreement and this Agreement shall be interpreted, to the extent possible, as being mutually consistent with each other, supplementary and both fully enforceable; provided, however, in the event of an irreconcilable conflict between specific provisions of each of the two agreements, the specific provisions of this Agreement shall prevail. 

 

10.     No Conflicts. Employee hereby represents and covenants that Employee’s performance of all the terms of this Agreement and his work as an employee of a Consolidated Company does not and will not breach any oral or written agreement to which Employee is a party or by which Employee is bound.

 

11.     Equitable Remedies. Employee acknowledges and agrees that the breach or threatened breach by him of certain provisions of this Agreement, including without limitation Sections 8 above, would cause irreparable harm to the Consolidated Company for which damages at law would be an inadequate remedy. Accordingly, Employee hereby agrees that in any such instance Parent or the Company shall be entitled to seek (without prior mediation or arbitration) injunctive or other equitable relief in any other state or federal court within or without the State of Nevada in addition to any other remedy to which it may be entitled. Employee hereby submits to the jurisdiction of any courts within the City of Reno in the State of Nevada and agrees not to assert such venue is inconvenient.

 

12.     Assignment. This Agreement is for the unique personal services of Employee and is not assignable or delegable in whole or in part by Employee without the consent of the Board of Parent. This Agreement may not be assigned or delegated in whole or in part by the Parent or the Company without the written consent of Employee; provided, however, this Agreement may be assigned by the Parent or the Company without Employee’s prior written consent if such assignment is made to an entity that is a Consolidated Company or is acquiring substantially all of the business or assets of any Consolidated Company, whether by merger, asset sale or otherwise.

 

13.     Waiver or Modification. Any waiver, modification, or amendment of any provision of this Agreement shall be effective only if in writing in a document that specifically refers to this Agreement and such document is signed by the parties hereto.

 

14.     Entire Agreement. This Agreement, together with the Proprietary Information Agreement and other agreements required under or included in the Consolidated Companies' policies constitute the full and complete understanding and agreement of the parties hereto with respect to the subject matter covered herein and supersedes and terminates all prior oral or written understandings and agreements with respect thereto.

 

15.     Severability. If any provision of this Agreement is found to be unenforceable by a court of competent jurisdiction, the remaining provisions shall nevertheless remain in full force and effect.

 

 

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16.     Attorney’s Fees. Should any Company, Parent or Employee default in any of the covenants contained in this Agreement, or in the event a dispute shall arise as to the meaning of any term of this Agreement, the defaulting or nonprevailing party shall pay all costs and expenses, including reasonable attorneys’ fees, that may arise or accrue from enforcing this Agreement, securing an interpretation of any provision of this Agreement, or in pursuing any remedy provided by applicable law whether such remedy is pursued or interpretation is sought by the filing of a lawsuit ,an appeal, or otherwise.

 

17.     Confidentiality. Each of the parties acknowledges that the common shares of Parent are registered under the Securities Exchange Act of 1934, as amended, and as a result, Parent may be required to, and hereby has authorization to, file this Agreement or any amendment hereto with the Securities and Exchange Commission without requesting confidential treatment for any portion hereof.

 

18.     Notices. Any notice required hereunder to be given by either party shall be in writing and shall be delivered personally or sent by certified or registered mail, postage prepaid, or by private courier, with written verification of delivery, or by facsimile or other electronic transmission to the other party to the address or facsimile number set forth below or to such other address or facsimile number as either party may designate from time to time according to this provision. A notice delivered personally or by facsimile or electronic transmission shall be effective upon receipt. A notice delivered by mail or private courier shall be effective on the third day after the day of mailing:

 

	
 
	
(A) To Employee at:
	
______________________________

	 	 	______________________________
	 	 	______________________________

 

	
 
	
(B) To Parent and the Company at:
	
Altair Nanotechnologies Inc.
3019 Enterprise Drive
Anderson, Indiana 46013

Facsimile No: (317) 565-6033

 

19.     Disputes; Governing Law; Arbitration.

 

19.1          Except as provided in Section 11 and Section 8.5, any dispute concerning the interpretation or construction of this Agreement or his employment or service with Company, shall be resolved by confidential mediation or binding arbitration in Madison County, Indiana. The parties shall first attempt mediation with a neutral mediator agreed upon by the parties. If mediation is unsuccessful or if the parties are unable to agree upon a mediator within thirty (30) days of a request for mediation by any party, the dispute shall be submitted to arbitration pursuant to the procedures of the American Arbitration Association (“AAA”) or other procedures agreed to by the parties. All arbitration proceedings shall be conducted by a neutral arbitrator mutually agreed upon by the parties from a list provided by AAA. The decision of the arbitrator shall be final and binding on all parties. The costs of mediation and arbitration shall be borne equally by the parties.

 

 

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19.2     This Agreement shall be construed in accordance with and governed by the statutes and common law of the State of Indiana (other than provisions that would cause the provisions of any other laws to apply). To the extent this Agreement expressly permits any dispute to be resolved other than through arbitration or mediation, except as set forth in Section 8.5, the exclusive venue for any such action shall be the state federal courts located in Reno, Nevada, and the parties each hereby submit to the jurisdiction of such courts for purposes this Agreement.

 

20.     Counterparts; Facsimile. This Agreement may be executed in multiple counterparts, all of which taken together shall form a single Agreement. A facsimile copy of this Agreement or any counterpart thereto shall be valid as an original.

 

 

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     IN WITNESS WHEREOF, Employee has signed this Employment Agreement (Level 13 Officer) personally and the Company and Parent have caused this Agreement to be executed by their duly authorized representatives.

 

 

	
 
	
COMPANY:

ALTAIRNANO, INC.

a Nevada corporation

 

By: _/s/ Karen Werner _____________

 

Name: Karen Werner_______________

 

Title: Interim Chief Financial Officer__

 

 

PARENT:

ALTAIR NANOTECHNOLOGIES INC.

a Delaware corporation

 

By: /s/ Karen Werner_______________

 

Name: Karen Werner_______________

 

Title: Interim Chief Financial Officer__

 

EMPLOYEE:

 

 

/s/ James Tao Zhan                                    

James Tao Zhan, an individual

 

 

 

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