Document:

Share Exchange Agreement

 

SHARE EXCHANGE AGREEMENT

by and among

China Liaoning DingXu Ecological Agriculture Development Co;, Ltd., a BVI company(the “DingXu BVI”)

and

the Stockholder of DingXu BVI

on the one hand;

and

Hazlo! Technologies, Inc., 

also known as China Liaoning Dingxu Ecological Agriculture Development, Inc.,

a Nevada corporation, (the “PUBCO”),

and

the Majority Stockholders of PUBCO,

on the other hand

December 12, 2011

 

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SHARE EXCHANGE AGREEMENT

This Share Exchange Agreement, dated as of December 12, 2011 (this “Agreement”), is made and entered into by and among Chin Yung Kong (the “DingXu BVI Shareholder”), the sole shareholder of  China Liaoning DingXu Ecological Agriculture Development Co;, Ltd., a BVI company (the “DingXu BVI”), on the one hand; and Hazlo! Technologies, Inc., also known as China Liaoning Dingxu Ecological Agriculture Development, Inc., a publicly traded corporation incorporated in Nevada (OTCBB: CLAD) (the “PUBCO”), and the majority shareholders of PUBCO listed on Signature Page for PUBCO Stockholders that is attached hereto (the “PUBCO Stockholders”), on the other hand. DingXu BVI is a party to this agreement solely to make representations and warranties as set forth herein.

RECITALS

WHEREAS, the Board of Directors of PUBCO has adopted resolutions approving PUBCO’s acquisition of shares of DingXu BVI (the “Acquisition”) upon the terms and conditions hereinafter set forth in this Agreement;

WHEREAS, DingXu BVI Shareholder owns 100%of the issued and outstanding capital stock of DingXu BVI (the “DingXu BVI Shares”), and the DingXu BVI Shareholder desire to sell the DingXu BVI Shares pursuant to the terms and conditions of this Agreement;

WHEREAS, the PUBCO Stockholders hold an amount of shares of PUBCO common stock which represents at least a majority of the issued and outstanding capital stock of PUBCO;

WHEREAS, the PUBCO Stockholders will enter into this Agreement for the purpose of making certain representations, warranties, covenants, indemnifications and agreements;

WHEREAS, it is intended that the terms and conditions of this Agreement comply in all respects with Section 368(a)(1)(B) of the Code and the regulations corresponding thereto, so that the Acquisition shall qualify as a tax free reorganization under the Code.

NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

ARTICLE 1

THE ACQUISITION

1.1 The Acquisition. Upon the terms and subject to the conditions hereof, at the Closing (as hereinafter defined) the parties shall do the following:

(a)  The DingXu BVI Shareholder will sell, convey, assign, transfer and deliver to PUBCO stock certificates representing the DingXu BVI Shares, which shall constitute 100% of the issued and outstanding shares of DingXu BVI.

(b)  As consideration for the acquisition of the DingXu BVI Shares, PUBCO will issue to the DingXu BVI Shareholder, Sixty Million (60,000,000) shares of common stock of PUBCO, (the “PUBCO Shares”). 

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1.2 Closing Date. The closing of the Acquisition (the “Closing”) shall take place as soon as practicable upon signing of this Agreement or on such other date as may be mutually agreed upon by the parties. Such date is referred to herein as the “Closing Date.”

1.3 Taking of Necessary Action; Further Action. If, at any time after the Closing, any further action is necessary or desirable to carry out the purposes of this Agreement, the DingXu BVI Shareholder, DingXu BVI, PUBCO Stockholders and/or PUBCO will take all such lawful and necessary action.

ARTICLE 2

REPRESENTATIONS AND WARRANTIES OF DINGXU BVI

DingXu BVI hereby represents and warrants to PUBCO and the PUBCO Stockholders as follows:

2.1  Organization. DingXu BVI has been duly incorporated, validly exists as a corporation, and is in good standing under the laws of its jurisdiction of incorporation, and has the requisite power to carry on its business as now conducted.

2.2  Authority Relative to this Agreement. DingXu BVI has the requisite power and authority to enter into this Agreement and to carry out its obligations hereunder. The execution, delivery and performance of this Agreement by DingXu BVI and the consummation by DingXu BVI of the transactions contemplated hereby have been duly authorized by the Board of Directors of DingXu BVI and no other actions on the part of DingXu BVI are necessary to authorize this Agreement or the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by DingXu BVI and constitutes a valid and binding agreement of DingXu BVI, enforceable against DingXu BVI in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity.

2.3  Consents and Approvals; No Violations. Except for applicable requirements of federal securities laws and state securities or blue-sky laws, no filing with, and no permit, authorization, consent or approval of, any third party, public body or authority is necessary for the consummation by DingXu BVI of the transactions contemplated by this Agreement. Neither the execution and delivery of this Agreement by DingXu BVI nor the consummation by DingXu BVI of the transactions contemplated hereby, nor compliance by DingXu BVI with any of the provisions hereof, will (a) conflict with or result in any breach of any provisions of the charter or Bylaws of DingXu BVI, (b) result in a violation or breach of, or constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation or acceleration) under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, license, contract, agreement or other instrument or obligation to which DingXu BVI is a party or by which they any of their respective properties or assets may be bound or (c) violate any order, writ, injunction, decree, statute, rule or regulation applicable to DingXu BVI, or any of its properties or assets, except in the case of clauses (b) and (c) for violations, breaches or defaults which are not in the aggregate material to PUBCO taken as a whole.

2.4  Intellectual Property. DingXu BVI has no knowledge of any claim that, or inquiry as to whether, any product, activity or operation of DingXu BVI infringes upon or involves, or has resulted in the infringement of, any trademarks, trade-names, service marks, patents, copyrights or other proprietary rights of any other person, corporation or other entity; and no proceedings have been instituted, are pending or are threatened.

2.5  Litigation. DingXu BVI is not subject to any judgment or order of any court or quasi-judicial or administrative agency of any jurisdiction, domestic or foreign, nor is there any charge, complaint, lawsuit or governmental investigation pending against DingXu BVI. DingXu BVI is not a plaintiff in any action, domestic or foreign, judicial or administrative. There are no existing actions, suits, proceedings against or investigations of 

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DingXu BVI, and DingXu BVI knows of no basis for such actions, suits, proceedings or investigations. There are no unsatisfied judgments, orders, decrees or stipulations affecting DingXu BVI or to which DingXu BVI is a party.

2.6  Legal Compliance. To the best knowledge of DingXu BVI, after due investigation, no claim has been filed against DingXu BVI alleging a violation of any applicable laws and regulations of foreign, federal, state and local governments and all agencies thereof. DingXu BVI hold all of the material permits, licenses, certificates or other authorizations of foreign, federal, state or local governmental agencies required for the conduct of their respective businesses as presently conducted.

2.7 Contracts. DingXu BVI has delivered to PUBCO copies of each and every:

(a)

Contract or series of related contracts with the following Chinese companies through its wholly owned subsidiary Panjin Hengrun Biological Technology Development Co., Ltd. 盘锦恒润生物技术开发有限公司, a limited liability company organized under the laws of the People’s Republic of China and a ninety-nine percent owned subsidiary of DingXu BVI (“Panjin Hengrun”)

:

 

Liaoning Dingxu Ecological Agriculture Development Co., Ltd.辽宁鼎旭生态农业发展有限公司, a limited liability company organized under the laws of the People’s Republic of China and an affiliated entity of Panjin Hengrun through contractual arrangements (“Liaoning Dingxu”);

All of the foregoing are referred to as the “Contracts.” The copies of each of the Contracts delivered are accurate and complete. Each Contract is in full force and effect and constitutes a legal, valid and binding obligation of, and is legally enforceable against, the respective parties thereto. There is no material default with respect to any such contract which will give rise to liability in respect thereof on the part of DingXu BVI or the other parties thereto. No notice of default or similar notice has been given or received by DingXu BVI under any of such contracts.

2.8  Disclosure. The representations and warranties and statements of fact made by DingXu BVI in this Agreement are, as applicable, accurate, correct and complete and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements and information contained herein not false or misleading.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES

OF THE DINGXU BVI SHAREHOLDER

The DingXu BVI Shareholder hereby represents and warrants to PUBCO as follows:

3.1 Ownership of the DingXu BVI Shares. DingXu BVI Shareholder owns, beneficially and of record, good and marketable title to the 100% of the DingXu BVI Shares, free and clear of all security interests, liens, adverse claims, encumbrances, equities, proxies, options or Stockholders’ agreements. The DingXu BVI Shareholder represents that such person has no right or claims whatsoever to any shares of DingXu BVI capital stock, other than the DingXu BVI Shares that DingXu BVI Shareholder owns and DingXu BVI Shareholder does not have any options, warrants or any other instruments entitling DingXu BVI Shareholder to exercise to purchase or convert into shares of DingXu BVI capital stock. At the Closing, DingXu BVI Shareholder will convey to PUBCO good and marketable title to the DingXu BVI Shares, free and clear of any security interests, liens, adverse claims, encumbrances, equities, proxies, options, shareholders’ agreements or restrictions.

3.2  Authority Relative to this Agreement. This Agreement has been duly and validly executed and delivered by DingXu BVI Shareholder and constitutes a valid and binding agreement of DingXu BVI Shareholder, enforceable against DingXu BVI Shareholder in accordance with its terms, except as such enforcement may be 

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limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity.

3.3 Restricted Securities. DingXu BVI Shareholder acknowledges that the PUBCO Shares will not be registered pursuant to the Securities Act of 1933, as amended (the “Securities Act”) or any applicable state securities laws, that the PUBCO Shares will be characterized as “restricted securities” under federal securities laws, and that under such laws and applicable regulations the PUBCO Shares cannot be sold or otherwise disposed of without registration under the Securities Act or an exemption therefrom. In this regard, DingXu BVI Shareholder is familiar with Rule 144 promulgated under the Securities Act, as currently in effect, and understands the resale limitations imposed thereby and by the Securities Act.

3.4 Accredited Investor. DingXu BVI Shareholder is an “Accredited Investor” as that term is defined in Rule 501 of Regulation D promulgated under the Securities Act. DingXu BVI Shareholder is able to bear the economic risk of acquiring the PUBCO Shares pursuant to the terms of this Agreement, including a complete loss of DingXu BVI Shareholder’s investment in the PUBCO Shares.

3.5 Legend. DingXu BVI Shareholder acknowledges that the certificate(s) representing the PUBCO Shares to be transferred to DingXu BVI Shareholder shall conspicuously set forth on the face or back thereof a legend in substantially the following form:

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

  

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF

PUBCO AND THE PUBCO STOCKHOLDERS

PUBCO and the PUBCO Stockholders hereby represent and warrant, jointly and severally, to DingXu BVI and DingXu BVI Shareholder as of the date hereof and as of the Closing Date (unless otherwise indicated), as follows:

4.1  Organization. PUBCO is a corporation duly organized, validly existing and in good standing under the laws of the state of its incorporation, and has the requisite corporate power to carry on its business as now conducted.  

4.2  Certain Corporate Matters. PUBCO is duly licensed or qualified to do business and is in good standing as a foreign corporation in every jurisdiction in which the character of such properties or nature of such business requires it to be so licensed or qualified other than such jurisdictions in which the failure to be so licensed or qualified does not, or insofar as can reasonably be foreseen, in the future will not, have a material adverse effect on its financial condition, results of operations or business. PUBCO has full corporate power and authority and all authorizations, licenses and permits necessary to carry on the business in which it is engaged or in which it proposes presently to engage and to own and use the properties owned and used by it. PUBCO has delivered to DingXu BVI true, accurate and complete copies of its certificate or articles of incorporation and bylaws of PUBCO, which reflect all restatements of and amendments made thereto at any time prior to the date of this Agreement. The records of meetings of the Stockholders and Board of Directors of PUBCO are complete and correct in all material respects. The stock records of PUBCO and the Stockholder lists of PUBCO that PUBCO has previously furnished to DingXu BVI are complete and correct in all material respects and accurately reflect the record ownership and the beneficial ownership of all the outstanding shares of PUBCO’s capital stock and any other outstanding securities issued by 

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PUBCO. PUBCO is not in default under or in violation of any provision of its certificate or articles of incorporation or bylaws in any material respect. PUBCO is not in any material default or in violation of any restriction, lien, encumbrance, indenture, contract, lease, sublease, loan agreement, note or other obligation or liability by which it is bound or to which any of its assets is subject.

4.3  Authority Relative to this Agreement. Each of PUBCO and the PUBCO Stockholders has the requisite power and authority to enter into this Agreement and carry out its or his obligations hereunder. The execution, delivery and performance of this Agreement by PUBCO and the consummation of the transactions contemplated hereby have been duly authorized by the Board of Directors of PUBCO, and no other actions on the part of PUBCO are necessary to authorize this Agreement or the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by PUBCO and the PUBCO Stockholders and constitutes a valid and binding obligation of PUBCO and each of the PUBCO Stockholders, enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity.

 

4.4  Consents and Approvals; No Violations. Except for applicable requirements of federal securities laws and state securities or blue-sky laws, no filing with, and no permit, authorization, consent or approval of, any third party, public body or authority is necessary for the consummation by PUBCO of the transactions contemplated by this Agreement. Neither the execution and delivery of this Agreement by PUBCO nor the consummation by PUBCO of the transactions contemplated hereby, nor compliance by PUBCO with any of the provisions hereof, will (a) conflict with or result in any breach of any provisions of the charter or Bylaws of PUBCO, (b) result in a violation or breach of, or constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation or acceleration) under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, license, contract, agreement or other instrument or obligation to which PUBCO is a party or by which they any of their respective properties or assets may be bound or (c) violate any order, writ, injunction, decree, statute, rule or regulation applicable to PUBCO, or any of their respective properties or assets, except in the case of clauses (b) and (c) for violations, breaches or defaults which are not in the aggregate material to PUBCO taken as a whole.

4.5  Events Subsequent to Financial Statements. Except as disclosed in Schedule 4.6, since the filing of PUBCO’s most recent periodic report with SEC, there has not been:

(a) Any sale, lease, transfer, license or assignment of any assets, tangible or intangible, of PUBCO;

(b)  Any damage, destruction or property loss, whether or not covered by insurance, affecting adversely the properties or business of PUBCO;

(c)  Any declaration or setting aside or payment of any dividend or distribution with respect to the shares of capital stock of PUBCO or any redemption, purchase or other acquisition of any such shares;

(d)  Any subjection to any lien on any of the assets, tangible or intangible, of PUBCO;

(e)  Any incurrence of indebtedness or liability or assumption of obligations by PUBCO;

(f)  Any waiver or release by PUBCO of any right of any material value;

(g)  Any compensation or benefits paid to officers or directors of PUBCO;

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(h)  Any change made or authorized in the Articles of Incorporation or Bylaws of PUBCO;

 

(i)  Any loan to or other transaction with any officer, director or Stockholder of PUBCO giving rise to any claim or right of PUBCO against any such person or of such person against PUBCO; or

(j)  Any material adverse change in the condition (financial or otherwise) of the respective properties, assets, liabilities or business of PUBCO.

4.6 Liabilities. Except as otherwise disclosed in PUBCO’s Financial Statements or to be paid pursuant to the  payment set forth in Section 1.1(d) hereinabove as listed on Schedule 4.7 attached hereto, PUBCO has no liability or obligation whatsoever, either direct or indirect, matured or unmatured, accrued, absolute, contingent or otherwise. In addition, PUBCO and the PUBCO Stockholders represent that upon Closing, PUBCO will not have any liability or obligation whatsoever, either direct or indirect, matured or unmatured, accrued, absolute, contingent or otherwise.

4.7  Intellectual Property. PUBCO does not own or use any trademarks, trade names, service marks, patents, copyrights or any applications with respect thereto. PUBCO and the PUBCO Stockholders have no knowledge of any claim that, or inquiry as to whether, any product, activity or operation of PUBCO infringes upon or involves, or has resulted in the infringement of, any trademarks, trade-names, service marks, patents, copyrights or other proprietary rights of any other person, corporation or other entity; and no proceedings have been instituted, are pending or are threatened.

4.8 Insurance. PUBCO has no insurance policies in effect.

4.9 Litigation. PUBCO is not subject to any judgment or order of any court or quasi-judicial or administrative agency of any jurisdiction, domestic or foreign, nor is there any charge, complaint, lawsuit or governmental investigation pending against PUBCO. PUBCO is a plaintiff in any action, domestic or foreign, judicial or administrative. There are no existing actions, suits, proceedings against or investigations of PUBCO, and PUBCO knows of no basis for such actions, suits, proceedings or investigations. There are no unsatisfied judgments, orders, decrees or stipulations affecting PUBCO or to which PUBCO is a party.

4.10  Legal Compliance. To the best knowledge of PUBCO, after due investigation, no claim has been filed against PUBCO alleging a violation of any applicable laws and regulations of foreign, federal, state and local governments and all agencies thereof. PUBCO hold all of the material permits, licenses, certificates or other authorizations of foreign, federal, state or local governmental agencies required for the conduct of its business as presently conducted.

 

4.11  Broker’s Fees. Neither PUBCO, nor anyone on its behalf has any liability to any broker, finder, investment banker or agent, or has agreed to pay any brokerage fees, finder’s fees or commissions, or to reimburse any expenses of any broker, finder, investment banker or agent in connection with this Agreement.

 

4.12 Internal Accounting Controls. PUBCO maintains a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. PUBCO has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for PUBCO and designed such disclosure controls and procedures to ensure that material information 

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relating to PUBCO is made known to the certifying officers by others within those entities, particularly during the period in which the PUBCO’s annual and quarterly reports, as the case may be, is being prepared. 

4.13 Application of Takeover Protections. PUBCO and its board of directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under PUBCO’s certificate or articles of incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to DingXu BVI or the DingXu BVI Shareholder as a result of the Acquisition or the exercise of any rights by DingXu BVI or the DingXu BVI Shareholder pursuant to this Agreement.

ARTICLE 5

INDEMNIFICATION

5.1 PUBCO Stockholders Indemnification. For a period of one year after the Closing, the PUBCO Stockholders (“Indemnifying Party”) agree to indemnify DingXu BVI, the DingXu BVI Shareholder and each of the officers, agents and directors of DingXu BVI or the DingXu BVI Shareholder (each an “Indemnified Party”) against any loss, liability, claim, damage or expense (including, but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever) (each, a “Claim”) to which it or they may become subject arising out of or based on either (i) any breach of or inaccuracy in any of the representations and warranties or covenants or conditions made by PUBCO and/or the PUBCO Stockholders herein in this Agreement; or (ii) any and all liabilities arising out of or in connection with: (A) any of the assets of PUBCO prior to the Closing; or (B) the operations of PUBCO prior to the Closing (the “PUBCO Stockholders Indemnification”). During the period of the PUBCO Stockholders Indemnification, if DingXu BVI or the DingXu BVI Shareholder shall become reasonably aware of any Claim covered by this Section 5.1, and while such Claim is unresolved, DingXu BVI shall have the right to issue stop transfer instructions to its transfer agent with respect to the PUBCO Shares held by the Indemnifying Party.

5.2 Indemnification Procedures. If any action shall be brought against any Indemnified Party in respect of which indemnity may be sought pursuant to this Agreement, such Indemnified Party shall promptly notify the Indemnifying Party in writing, and the Indemnifying Party shall have the right to assume the defense thereof with counsel of its own choosing. Any Indemnified Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party except to the extent that the employment thereof has been specifically authorized by the Indemnifying Party in writing, the Indemnifying Party has failed after a reasonable period of time to assume such defense and to employ counsel or in such action there is, in the reasonable opinion of such separate counsel, a material conflict on any material issue between the position of the Indemnifying Party and the position of such Indemnified Party. The Indemnifying Party will not be liable to any Indemnified Party under this Article 5 for any settlement by an Indemnified Party effected without the Indemnifying Party’s prior written consent, which shall not be unreasonably withheld or delayed; or to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Indemnified Party’s indemnification pursuant to this Article 5.

ARTICLE 6

COVENANTS AND AGREEMENTS OF THE PARTIES

EFFECTIVE PRIOR TO CLOSING

6.1 Corporate Examinations and Investigations. Prior to the Closing, each party shall be entitled, through its employees and representatives, to make such investigations and examinations of the books, records and financial condition of DingXu BVI and PUBCO as each party may request. In order that each party may have the full opportunity to do so, DingXu BVI, PUBCO, the DingXu BVI Shareholder and the PUBCO Stockholders shall furnish each party and its representatives during such period with all such information concerning the affairs of DingXu BVI or PUBCO as each party or its representatives may reasonably request and cause DingXu BVI or PUBCO and their respective officers, employees, consultants, agents, accountants and attorneys to cooperate fully 

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with each party’s representatives in connection with such review and examination and to make full disclosure of all information and documents requested by each party and/or its representatives. Any such investigations and examinations shall be conducted at reasonable times and under reasonable circumstances, it being agreed that any examination of original documents will be at each party’s premises, with copies thereof to be provided to each party and/or its representatives upon request.

6.2 Cooperation; Consents. Prior to the Closing, each party shall cooperate with the other parties to the end that the parties shall (i) in a timely manner make all necessary filings with, and conduct negotiations with, all authorities and other persons the consent or approval of which, or the license or permit from which is required for the consummation of the Acquisition and (ii) provide to each other party such information as the other party may reasonably request in order to enable it to prepare such filings and to conduct such negotiations.

6.3 Conduct of Business. Subject to the provisions hereof, from the date hereof through the Closing, each party hereto shall (i) conduct its business in the ordinary course and in such a manner so that the representations and warranties contained herein shall continue to be true and correct in all material respects as of the Closing as if made at and as of the Closing and (ii) not enter into any material transactions or incur any material liability not required or specifically contemplated hereby, without first obtaining the written consent of DingXu BVI and the holders of a majority of voting stock of DingXu BVI on the one hand and PUBCO and the holders of a majority of voting stock of PUBCO common stock on the other hand. Without the prior written consent of DingXu BVI, the DingXu BVI Shareholder, PUBCO or the PUBCO Stockholders except as required or specifically contemplated hereby, each party shall not undertake or fail to undertake any action if such action or failure would render any of said warranties and representations untrue in any material respect as of the Closing.

6.4 Litigation. From the date hereof through the Closing, each party hereto shall promptly notify the representative of the other parties of any lawsuits, claims, proceedings or investigations which after the date hereof are threatened or commenced against such party or any of its affiliates or any officer, director, employee, consultant, agent or shareholder thereof, in their capacities as such, which, if decided adversely, could reasonably be expected to have a material adverse effect upon the condition (financial or otherwise), assets, liabilities, business, operations or prospects of such party or any of its subsidiaries.

6.5 Notice of Default. From the date hereof through the Closing, each party hereto shall give to the representative of the other parties prompt written notice of the occurrence or existence of any event, condition or circumstance occurring which would constitute a violation or breach of this Agreement by such party or which would render inaccurate in any material respect any of such party’s representations or warranties herein.

 

6.6 Bylaws. If necessary, PUBCO shall amend its Bylaws to permit the election and/or appointment of additional new directors to PUBCO’s Board of Directors as set forth in Section 7.1(a) below.

6.7 Confidentiality; Access to Information.

(a) Any confidentiality agreement or letter of intent previously executed by the parties shall be superseded in its entirety by the provisions of this Agreement. Each party agrees to maintain in confidence any non-public information received from the other party, and to use such non-public information only for purposes of consummating the transactions contemplated by this Agreement. Such confidentiality obligations will not apply to (i) information which was known to the one party or their respective agents prior to receipt from the other party; (ii) information which is or becomes generally known; (iii) information acquired by a party or their respective agents from a third party who was not bound to an obligation of confidentiality; and (iv) disclosure required by law. In the event this Agreement is terminated as provided in Article 8 hereof, each party will return or cause to be returned to the other all documents and other material obtained from the other in connection with the Transaction contemplated hereby.

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(b) Access to Information.

(i) DingXu BVI will afford PUBCO and its financial advisors, accountants, counsel and other representatives reasonable access during normal business hours, upon reasonable notice, to the properties, books, records and personnel of DingXu BVI during the period prior to the Closing to obtain all information concerning the business, including the status of product development efforts, properties, results of operations and personnel of DingXu BVI, as PUBCO may reasonably request. No information or knowledge obtained by PUBCO in any investigation pursuant to this Section 6.8 will affect or be deemed to modify any representation or warranty contained herein or the conditions to the obligations of the parties to consummate the Transaction.

(ii) PUBCO will afford DingXu BVI and its financial advisors, underwriters, accountants, counsel and other representatives reasonable access during normal business hours, upon reasonable notice, to the properties, books, records and personnel of PUBCO during the period prior to the Closing to obtain all information concerning the business, including the status of product development efforts, properties, results of operations and personnel of PUBCO, as DingXu BVI may reasonably request. No information or knowledge obtained by DingXu BVI in any investigation pursuant to this Section 6.8 will affect or be deemed to modify any representation or warranty contained herein or the conditions to the obligations of the parties to consummate the Transaction.

 

6.8

 Public Disclosure. Except to the extent previously disclosed or to the extent the parties believe that they are required by applicable law or regulation to make disclosure, prior to Closing, no party shall issue any statement or communication to the public regarding the transaction contemplated herein without the consent of the other party, which consent shall not be unreasonably withheld. To the extent a party hereto believes it is required by law or regulation to make disclosure regarding the Transaction, it shall, if possible, immediately notify the other party prior to such disclosure. Notwithstanding the foregoing, the parties hereto agree that PUBCO will prepare and file a Current Report on Form 8-K pursuant to the Exchange Act reasonably acceptable to DingXu BVI to report the execution of this Agreement and that any party hereto may file any reports as required by the Exchange Act including, without limitation, any reports on Schedule 13D.

 

6.9 Assistance with Post-Closing SEC Reports and Inquiries. Upon the reasonable request of DingXu BVI, after the Closing Date, each PUBCO Stockholder shall use his reasonable best efforts to provide such information available to it, including information, filings, reports, financial statements or other circumstances of PUBCO occurring, reported or filed prior to the Closing, as may be necessary or required by PUBCO for the preparation of the post-Closing Date reports that PUBCO is required to file with the SEC to remain in compliance and current with its reporting requirements under the Exchange Act, or filings required to address and resolve matters as may relate to the period prior to the Closing and any SEC comments relating thereto or any SEC inquiry thereof.

ARTICLE 7

CONDITIONS TO CLOSING

7.1  Conditions to Obligations of DingXu BVI and the DingXu BVI Shareholder. The obligations of DingXu BVI and the DingXu BVI Shareholder under this Agreement shall be subject to each of the following conditions:

(a) Closing Deliveries. At the Closing, PUBCO and/or the PUBCO Stockholders shall have delivered or caused to be delivered to DingXu BVI and the DingXu BVI Shareholder the following:

(i)  resolutions duly adopted by the Board of Directors of PUBCO authorizing and approving the Acquisition and the execution, delivery and performance of this Agreement;

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(ii)  a certificate of good standing for PUBCO from its jurisdiction of incorporation, dated not earlier than five days prior to the Closing Date;

 (iii) stock certificate representing the PUBCO Shares to be delivered pursuant to this Agreement registered in the name of the DingXu BVI Shareholder;

(iv)  this Agreement duly executed by PUBCO and the PUBCO Stockholders;

 

(v) all corporate records, agreements, seals and any other information reasonably requested by DingXu BVI’s representatives with respect to PUBCO; and

(vi) such other documents as DingXu BVI and/or the DingXu BVI Shareholder may reasonably request in connection with the transactions contemplated hereby.

7.2 Conditions to Obligations of DingXu BVI and the DingXu BVI Stockholders. The obligations of PUBCO and the PUBCO Stockholders under this Agreement shall be subject to each of the following conditions:

(a) Closing Deliveries. On the Closing Date, DingXu BVI and/or the DingXu BVI Shareholder shall have delivered to PUBCO the following:

			
	 

	(i)

	this Agreement duly executed by DingXu BVI and the DingXu BVI Shareholder;

			
	 

	(ii)

	resolutions duly adopted by the Board of Directors of DingXu BVI authorizing and approving the Acquisition and the execution, delivery and performance of this Agreement;

			
	 

	(iii)

	stock certificates representing the DingXu BVI Shares to be delivered pursuant to this Agreement duly endorsed or accompanied by duly executed stock powers;

				
	 

	 

	(iv)

	such other documents as PUBCO may reasonably request in connection with the transactions contemplated hereby.

(b) Representations and Warranties True and Correct. The representations and warranties of DingXu BVI and the DingXu BVI Shareholder herein contained shall be true in all material respects at the Closing with the same effect as though made at such time. DingXu BVI and the DingXu BVI Shareholder shall have performed in all material respects all obligations and complied in all material respects with all covenants and conditions required by this Agreement to be performed or complied with by them at or prior to the Closing.

ARTICLE 8

SEC FILING; TERMINATION

8.1  This Agreement may be terminated at any time prior to the Closing:

(a) by mutual written agreement of PUBCO and DingXu BVI;

11

(b) by either PUBCO or DingXu BVI if a governmental entity shall have issued an order, decree or ruling or taken any other action, in any case having the effect of permanently restraining, enjoining or otherwise prohibiting the Transaction, which order, decree, ruling or other action is final and non-appealable;

 

ARTICLE 9

GENERAL PROVISIONS

9.1  Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered personally, sent by overnight courier or mailed by registered or certified mail (postage prepaid and return receipt requested) to the party to whom the same is so delivered, sent or mailed at addresses set forth on the signature page hereof (or at such other address for a party as shall be specified by like notice).

9.2  Interpretation. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. References to Sections and Articles refer to sections and articles of this Agreement unless otherwise stated.

 

9.3  Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated and the parties shall negotiate in good faith to modify this Agreement to preserve each party’s anticipated benefits under this Agreement.

9.4  Miscellaneous. This Agreement (together with all other documents and instruments referred to herein): (a) constitutes the entire agreement and supersedes all other prior agreements and undertakings, both written and oral, among the parties with respect to the subject matter hereof; (b) except as expressly set forth herein, is not intended to confer upon any other person any rights or remedies hereunder and (c) shall not be assigned by operation of law or otherwise, except as may be mutually agreed upon by the parties hereto.

9.5 Separate Counsel. Each party hereby expressly acknowledges that it has been advised to seek its own separate legal counsel for advice with respect to this Agreement, and that no counsel to any party hereto has acted or is acting as counsel to any other party hereto in connection with this Agreement.

9.6  Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York.

9.7  Counterparts and Facsimile Signatures. This Agreement may be executed in two or more counterparts, which together shall constitute a single agreement. This Agreement and any documents relating to it may be executed and transmitted to any other party by facsimile, which facsimile shall be deemed to be, and utilized in all respects as, an original, wet-inked manually executed document.

9.8 Amendment. This Agreement may be amended, modified or supplemented only by an instrument in writing executed by DingXu BVI, PUBCO, and holders of a majority of outstanding voting stock of DingXu BVI and the holders of a majority of outstanding voting stock of PUBCO; provided that, the consent of any 

12

DingXu BVI or PUBCO Stockholder that is a party to this Agreement shall be required if the amendment or modification would disproportionately affect such stockholder (other than by virtue of their ownership of DingXu BVI or PUBCO shares, as applicable).

9.9 Parties In Interest. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective heirs, legal representatives, successors and assigns of the parties hereto.

9.10 Waiver. No waiver by any party of any default or breach by another party of any representation, warranty, covenant or condition contained in this Agreement shall be deemed to be a waiver of any subsequent default or breach by such party of the same or any other representation, warranty, covenant or condition. No act, delay, omission or course of dealing on the part of any party in exercising any right, power or remedy under this Agreement or at law or in equity shall operate as a waiver thereof or otherwise prejudice any of such party’s rights, powers and remedies. All remedies, whether at law or in equity, shall be cumulative and the election of any one or more shall not constitute a waiver of the right to pursue other available remedies.

9.11 Expenses. At or prior to the Closing, the parties hereto shall pay all of their own expenses relating to the transactions contemplated by this Agreement, including, without limitation, the fees and expenses of their respective counsel and financial advisers.

[Signature Pages Follow]

 

13

IN WITNESS WHEREOF, the parties have executed this Share Exchange Agreement as of the date first written above.

PUBCO

Hazlo! Technologies, Inc., 

also known as China Liaoning Dingxu Ecological Agriculture Development, Inc.

By: /s/ Chin Yung Kong____  

Chin Yung Kong, President, CEO, CFO

DingXu BVI

China Liaoning DingXu Ecological Agriculture Development Co;, Ltd.

By: _/s/ Chin Yung Kong__­­­­______

Chin Yung Kong, President, Director

DingXu BVI Shareholders:

By: /s/ Chin Yung Kong

Chin Yung Kong

PUBCO STOCKHOLDERS:

By: /s/Chin Yung Kong

Chin Yung Kong

14Consulting Services Agreement

CONSULTING SERVICES AGREEMENT 

 

This Consulting Services Agreement (this “Agreement”) is dated November 28, 2011, and is entered into between Panjin Hengrun Biological Technology Development Co., Ltd. 盘锦恒润生物技术开发有限公司,a company with limited liability formed under the laws of the People’s Republic of China (“Party A”), and Liaoning Dingxu Ecological Agriculture Development Co., Ltd.辽宁鼎旭生态农业发展有限公司, a company with limited liability formed under the laws of the People’s Republic of China (“Party B”). Party A and Party B are referred to collectively in this Agreement as the “Parties.”

 

RECITALS

 

		
	A.  

	Party A is company with limited liability formed under the laws of the People’s Republic of China.

	 

	 

		
	B.  

	Party B is a company with limited liability formed under the laws of the People’s Republic of China;

	 

	 

		
	C.  

	The Parties desire that Party A provide consulting services and relevant services to Party B, for compensation.

	 

	 

		
	D.  

	The Parties are entering into this Agreement to set forth the terms and conditions under which Party A shall provide consulting services to Party B. 

NOW THEREFORE, the Parties agree as follows: 

 

1. DEFINITIONS

1.1 In this Agreement the following terms shall have the following meanings:

“Affiliate,” with respect to any Person, shall mean any other Person that directly or indirectly controls, or is under common control with, or is controlled by, such Person. As used in this definition, “control” shall mean possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether ownership of securities or partnership or other ownership interests, by contract or otherwise).

“Consulting Services Fee” shall be as defined in Clause 3.1.

“Indebtedness” shall mean, as to any Person, without duplication, (i) all indebtedness (including principal, interest, fees and charges) of such Person for borrowed money for the deferred purchase price of property or services, (ii) the face amount of all letters of credit issued for the amount of such Person and all drafts drawn thereunder, (iii) all liabilities secured by any Lien on any property owned by such person, whether or not such liabilities have been assumed by such Person, (iv) the aggregate amount required to be capitalized under leases under which such Person is the lessee and (v) all contingent obligations (including, without limitation, all guarantees to third parties) of such Person.

 “Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), preference, priority or other security agreement of any kind or nature whatsoever (including. without limitation, any conditional sale or other title retention agreement, any financing or similar statement or notice filed under recording or notice statute, and any lease having substantially the same effect as any of the foregoing).

“Person” shall mean any individual, corporation, company, voluntary association, partnership, joint venture, trust, unincorporated organization, entity or other organization or any government body.

“PRC” means the People’s Republic of China.

“Services” means the services to be provided under the Agreement by Party A to Party B, as more specifically described in Clause 2; in this Agreement a reference to a Clause, unless the context otherwise requires, is a reference to a clause of this Agreement. 

1.2 The headings in this Agreement shall not affect the interpretation of this Agreement.

2. RETENTION AND SCOPE OF SERVICES

2.1 Party B hereby agrees to retain the services of Party A, and Party A accepts such appointment, to provide to Party B services in relation to the current and proposed operations of Party B’s business in the PRC upon the terms and conditions of this Agreement. The services subject to this Agreement shall include, without limitation:

(a) General Business Operation. Advice and assistance relating to development of the general business operations of Party B.

(b) Human Resources. 

(i) Advice and assistance in relation to the staffing of Party B, including assistance in the recruitment, employment and secondment of management personnel, administrative personnel and staff of Party B;

(ii) Training of management, staff and administrative personnel;

(iii) Assistance in the development of sound payroll administrative controls in Party B;

 

(iv) Advice and assistance in the relocation of management and staff of Party B;

(c) Research and Development

(i) Advice and assistance in relation to research and development of Party B;

(ii) Advice and assistance in strategic planning; and

(d) Other. Such other advice and assistance as may be agreed upon by the Parties.

2.2 Exclusive Services Provider. During the term of this Agreement, Party A shall be the exclusive provider of the Services. Party B shall not seek or accept similar services from other providers unless the prior written approval is obtained from Party A.

2.3 Intellectual Properties Related to the Services. Party A shall own all intellectual property rights developed or discovered through research and development, in the course of providing Services, or derived from the provision of the Services. Such intellectual property rights shall include patents, trademarks, trade names, copyrights, patent application rights, copyright and trademark application rights, research and technical documents and materials, and other related intellectual property rights including the right to license or transfer such intellectual properties. If Party B must utilize any intellectual property, Party A agrees to grant an appropriate license to Party B on terms and conditions to be set forth in a separate agreement. 

2.4 Pledge. Party B shall permit and cause Party B’s shareholders to pledge the equity interests of Party B to Party A for securing the Fee that should be paid by Party B pursuant to this Agreement. 

3. PAYMENT

3.1 General. 

 

(a) In consideration of the Services provided by Party A hereunder, Party B shall pay to Party A during the term of this Agreement a consulting services fee (the “Consulting Services Fee”), payable in RMB each quarter, equal to all of its post-tax net income for such quarter based on the quarterly financial statements provided under Clause 5.1 below. Such quarterly payment shall be made within 15 days after receipt by Party A of the financial statements referenced above.

(b) Party A shall bear the losses of Party B. For any year within the term of this Agreement, if Party B records a net loss, Party A shall pay to Party B a cash payment equal to the total post-tax net loss that Party B records for such year. Party A shall also assume the liabilities of Party B during the term of this Agreement. During the term of this Agreement, if Party B has no sufficient funds to repay its debts or other liabilities, Party A is responsible for paying off these liabilities on behalf of Party B. 

 (c) Party B will permit, from time to time during regular business hours as reasonably requested by Party A, or its agents or representatives (including independent public accountants, which may be Party B’s independent public accountants), (i) to conduct periodic audits of books and records of Party B, (ii) to examine and make copies of and abstracts from all books, records and documents (including, without limitation, computer tapes and disks) in the possession or under the control of Party B (iii) to visit the offices and properties of Party B for the purpose of examining such materials described in clause (ii) above, and (iv) to discuss matters relating to the performance by Party B hereunder with any of the officers or employees of Party B having knowledge of such matters. Party A may exercise the audit rights provided in the preceding sentence at any time, provided that Party A provides ten days written notice to Party B specifying the scope, purpose and duration of such audit. All such audits shall be conducted in such a manner as not to interfere with Party B’s normal operations.

3.2 Party B shall not be entitled to set off any amount it may claim is owed to it by Party A against any Consulting Services Fee payable by Party B to Party A unless Party B first obtains Party A’s written consent.

3.3 The Consulting Services Fee shall be paid in RMB by wire transfer to a bank account or accounts specified by Party A, as may be specified in writing from time to time.

3.4 Should Party B fail to pay all or any part of the Consulting Service’s Fee due to Party A in RMB under this Clause 3 within the time limits stipulated, Party B shall pay to Party A interest in RMB on the amount overdue based on the three (3) month lending rate for RMB announced by the Bank of China on the relevant due date.

3.5 All payments to be made by Party B hereunder shall be made free and clear of and without deduction for or on account of tax, unless Party B is required to make such payment subject to the deduction or withholding of tax.

4. FURTHER TERMS OF COOPERATION

4.1 All business revenue of Party B shall be directed in full by Party B into a bank account(s) nominated by Party A.

5. UNDERTAKINGS OF PARTY B

Party B hereby agrees that, during the term of the Agreement:

5.1 Information Covenants. Party B will furnish to Party A:

5.1.1 Quarterly Reports. As soon as available and in any event within forty-five (45) days after each Quarterly Date (as defined below), unaudited consolidated and consolidating statements of income, retained earnings and changes in financial position of the Party B and its subsidiaries, if any, for such quarterly period and for the period from the beginning of the relevant fiscal year to such Quarterly Date and the related consolidated and consolidating balance sheets as at the end of such quarterly period, setting forth in each case actual versus budgeted comparisons and in comparative form the corresponding consolidated and consolidating figures for the corresponding period in the preceding fiscal year, accompanied by a certificate of the chief financial officer of the Party B, which certificate shall state that said financial statements fairly present the consolidated and consolidating financial condition and results of operations, as the case may be, of the Party B and its subsidiaries, if any, in accordance with PRC general accepted accounting principles applied on a consistent basis as at the end of, and for, such period (subject to normal year-end audit adjustments and the preparation of notes for the audited financial statements).

5.1.2 Annual Audited Accounts. Within six (6) months of the end of the financial year, the annual audited accounts of Party B to which they relate (setting forth in each case in comparative form the corresponding figures for the preceding financial year), in each case prepared in accordance with, among others, the PRC generally accepted accounting principles, consistently applied.

5.1.3 Notice of Litigation. Promptly, and in any event within one (1) business day after an officer of Party B obtains knowledge thereof, notice of (i) any litigation or governmental proceeding pending against Party B which could materially adversely affect the business, operations, property, assets, condition (financial or otherwise) or prospects of Party B and (ii) any other event which is likely to materially adversely affect the business, operations, property, assets, condition (financial or otherwise) or prospects of Party B.

5.1.4 Other Information. From time to time, such other information or documents (financial or otherwise) as Party A may reasonably request. For purposes of this Agreement, a “Quarterly Date” shall mean the last day of March, June, November and December in each year, the first of which shall be the first such day following the date of this Agreement; provided that if any such day is not a business day in the PRC, then such Quarterly Date shall be the next succeeding business day in the PRC.

5.2 Books, Records and Inspections. Party B will keep proper books of record and account in which full, true and correct entries in conformity with generally accepted accounting principles in the PRC and all requirements of law shall be made of all dealings and transactions in relation to its business and activities. Party B will permit officers and designated representatives of Party A to visit and inspect, under guidance of officers of Party B, any of the properties of Party B, and to examine the books of record and account of Party B and discuss the affairs, finances and accounts of Party B with, and be advised as to the same by, its and their officers, all at such reasonable times and intervals and to such reasonable extent as Party A may request.

5.3 Corporate Franchises. Party B will do or cause to be done, all things necessary to preserve and keep in full force and effect its existence and its material rights, franchises and licenses.

5.4 Compliance with Statutes, etc. Party B will comply with all applicable statutes, regulations and orders of, and all applicable restrictions imposed by, all governmental bodies, in respect of the conduct of its business arid the ownership of its property, including without limitation maintenance of valid and proper government approvals and licenses necessary to provide the services, except that such noncompliances could not, in the aggregate, have a material adverse effect on the business, operations, property, assets, condition (financial or otherwise) or prospects of Party B.

6. NEGATIVE COVENANTS

Party B covenants and agrees that, during the term of this Agreement, without the prior written consent of Party A.

6.1 Equity. Party B will not issue, purchase or redeem any equity or debt securities of Party B.

6.2 Liens. Party B will not create, incur, assume or suffer to exist any Lien upon or with respect to any property or assets (real or personal, tangible or intangible) of Party B whether now owned or hereafter acquired, provided that the provisions of this Clause 6.1 shall not prevent the creation, incurrence, assumption or existence of:

6.2.1 Liens for taxes not yet due, or Liens for taxes being contested in good faith and by appropriate proceedings for which adequate reserves have been established; and

6.2.2 Liens in respect of property or assets of Party B imposed by law, which were incurred in the ordinary course of business, and (x) which do not in the aggregate materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business of Party B or (y) which are being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing the forfeiture or sale of the property of assets subject to any such Lien.

6.3 Consolidation, Merger, Sale of Assets, etc. Party B will not wind up, liquidate or dissolve its affairs or enter into any transaction of merger or consolidation, or convey, sell, lease or otherwise dispose of (or agree to do any of the foregoing at any future time) all or any part of its property or assets, or purchase or otherwise acquire (in one or a series of related transactions) any part of the property or assets (other than purchases or other acquisitions of inventory, materials and equipment in the ordinary course of business) of any Person, except that (i) Party B may make sales of inventory in the ordinary course of business and (ii) Party B may, in the ordinary course of business, sell equipment which is uneconomic or obsolete.

6.4 Dividends. Party B will not declare or pay any dividends, or return any capital, to its shareholders or authorize or make any other distribution, payment or delivery of property or cash to its shareholders as such, or redeem, retire, purchase or otherwise acquire, directly or indirectly, for a consideration, any shares of any class of its capital stock now or hereafter outstanding (or any options or warrants issued by Party B with respect to its capital stock), or set aside any funds for any of the foregoing purposes.

6.5 Leases. Party B will not permit the aggregate payments (including, without limitation, any property taxes paid as additional rent or lease payments) by Party B under agreements to rent or lease any real or personal property to exceed US$100,000 in any fiscal year of Party B. 

6.6 Indebtedness. Party B will not contract, create, incur, assume or suffer to exist any indebtedness, except accrued expenses and current trade accounts payable incurred in the ordinary course of business, and obligations under trade letters of credit incurred by Party B in the ordinary course of business, which are to be repaid in full not more than one (1) year after the date on which such indebtedness is originally incurred to finance the purchase of goods by Party B.

6.7 Advances, Investment and Loans. Party B will not lend money or credit or make advances to any Person, or purchase or acquire any stock, obligations or securities of, or any other interest in, or make any capital contribution to, any other Person, except that Parry A may acquire and hold receivables owing to it, if created or acquired in the ordinary course of business and payable or dischargeable in accordance with Customary trade terms.

6.8 Transactions with Affiliates. Party B will not enter into any transaction or series of related transactions, whether or not in the ordinary course of business, with any Affiliate of Party B, other than on terns and conditions substantially as favorable to Party B as would be obtainable by Party B at the time in a comparable arm’s-length transaction with a Person other than an Affiliate and with the prior written consent of Party A.

6.9 Capital Expenditures. Party B will not make any expenditure for fixed or capital assets (including, without limitation, expenditures for maintenance and repairs which should be “capitalized in accordance with generally accepted accounting principles in the PRC and including capitalized lease obligations) during any period set forth below (taken as one accounting period) which exceeds in the aggregate for Party B the amount of commencing in the fiscal year.

6.10 Modifications to Debt Arrangements, Agreements or Articles of Association. Party B will not (i) make any voluntary or optional payment or prepayment on or redemption or acquisition for value of (including, without limitation, by way of depositing with the trustee with respect thereto money or securities before due for the purpose of paying when due) any Existing Indebtedness or (ii) amend or modify, or permit the amendment or modification of, any provision of any Existing Indebtedness or of any agreement (including, without limitation, any purchase agreement, indenture, loan agreement or security agreement) relating to any of the foregoing or (iii) amend, modify or change its Articles of Association or Business License, or any agreement entered into by it, with respect to its capital stock, or enter into any new agreement with respect to its capital stock.

6.11 Line of Business. Party B will not engage (directly or indirectly) in any business other than those types of business prescribed within the business scope of Party B’s business license except with the prior written consent of Party A. 

7. TERM AND TERMINATION

7.1 This Agreement shall take effect on the date of execution of this Agreement. The term of this Agreement is ten (10) years unless terminated pursuant to Clause 7.2. This Agreement may be extended according to the written consent of Party A before the expiration of this Agreement. The term of extension will be decided unanimously through mutual agreement of the Parties. 

7.2 This Agreement may be terminated:

7.2.1 by either Party giving written notice to the other Party if the other Party has committed a material breach of this Agreement (including but not limited to the failure by Party B to pay the Consulting Services Fee) and such breach, if capable of remedy, has not been so remedied within, in the case of breach of a non-financial obligation, 14 days, following receipt of such written notice;

7.2.2 either Party giving written notice to the other Party if the other Party becomes bankruptcy or insolvent or is the subject of proceedings or arrangements for liquidation or dissolution or ceases to carry on business or becomes unable to pay its debts as they come due;

7.2.3  by either Party giving written notice to the other Party if, for any reason, the operations of Party A are terminated;

7.2.4 by either Party giving written notice to the other Party if the business license or any other license or approval material for the business operations of Party B is terminated, cancelled or revoked;

7.2.5 by either Party giving written notice to the other Party if circumstances arise which materially and adversely affect the performance or the objectives of this Agreement; or

7.2.6 by election of Party A with or without reason.

7.3 Any Party electing properly to terminate this Agreement pursuant to Clause 7.2 shall have no liability to the other Party for indemnity, compensation or damages arising solely from the exercise of such right. The expiration or termination of this Agreement shall not affect the continuing liability of Party B to pay any Consulting Services Fees already accrued or due and payable to Party A. Upon expiration or termination of this Agreement, all amounts then due and unpaid to Party A by Party B hereunder, as well as all other amounts accrued but not yet payable to Party A by Party B, shall forthwith become due and payable by Party B to Party A.

8. PARTY B’S REMEDY UPON PARTY A’S BREACH

In addition to the remedies provided elsewhere under this Agreement, Party A shall be entitled to remedies permitted under PRC laws, including without limitation compensation for any direct and indirect losses arising from the breach and legal fees incurred to recover losses from such breach.

9. AGENCY

The Parties are independent contractors, and nothing in this Agreement shall be construed to constitute either Party to be the agent, Partner, legal representative, attorney or employee of the other for any purpose whatsoever. Neither Party shall have the power or authority to bind the other except as specifically set out in this Agreement.

10. GOVERNING LAW AND JURISDICTION

10.1 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

10.2 Dispute Resolution. Any disputes arising from and related to this Agreement shall be settled by both parties through bona fide negotiations. If a dispute cannot be resolved through bona fide negotiations within ninety (90) days, parties hereby elect to have the United States District Court for the Southern District of New York to retain jurisdiction.

10.4 Cooperation; Disclosure. Each Party shall cooperate with the other Party in making full disclosure of and providing complete access to all information and documents requested by the other Party in connection with such proceedings, subject only to any confidentiality obligations binding on such Parties.

10.5 Continuing Obligations. During the period when a dispute is being resolved, the Parties shall in all other respects continue their implementation of this Agreement.

11. ASSIGNMENT

No part of this Agreement shall be assigned or transferred by either Party without the prior written consent of the other Party. Any such assignment or transfer shall be void. Party A, however, may assign its rights and obligations hereunder to an Affiliate.

12. NOTICES

Notices or other communications required to be given by any party pursuant to this Agreement shall be written in English and delivered personally or sent by registered mail or postage prepaid mail or by a recognized courier service or by facsimile transmission to the address of relevant each party or both parties. The date when the notice is deemed to be duly served shall be determined as the follows: (a) a notice delivered personally is deemed duly served upon the delivery; (b) a notice sent by mail is deemed duly served the tenth (10th) day after the date when the air registered mail with postage prepaid has been sent out (as is shown on the postmark), or the fourth (4th) day after the delivery date to the internationally recognized courier service agency; and (c) a notice sent by facsimile transmission is deemed duly served upon the receipt time as is shown on the transmission confirmation of relevant documents. 

 

13. GENERAL

13.1 The failure to exercise or de]ay in exercising a right or remedy under this Agreement shall not constitute a waiver of the right or remedy or waiver of any other rights or remedies and no single or partial exercise of any right or remedy under this Agreement shall prevent any further exercise of the right or remedy or the exercise of any other right or remedy.

13.2 Should any Clause or any part of any Clause contained in this Agreement be declared invalid or unenforceable for any reason whatsoever, all other Clauses or parts of Clauses contained in this Agreement shall remain in full force and effect.

13.3 This Agreement constitutes the entire agreement between the Parties relating to the subject matter of this Agreement and supersedes all previous agreements.

13.4 No amendment or variation of this Agreement shall be valid unless it is in writing and signed by or on behalf of each of the Parties.

13.5 This Agreement shall be executed in two originals in English.

 

IN WITNESS WHEREOF both parties hereto have caused this Agreement to be duly executed by their legal representatives and duly authorized representatives on their behalf as of the date first set forth above. 

 

 PARTY A:

Panjin Hengrun Biological Technology Development Co., Ltd. 

盘锦恒润生物技术开发有限公司

Authorized Signing Officer: 

/s/ Chin Yung Kong

____________________________

Chin Yung Kong

PARTY B: 

Liaoning Dingxu Ecological Agriculture Development Co., Ltd.

辽宁鼎旭生态农业发展有限公司

Authorized Signing Officer: 

/s/ Yong Huang

____________________________

Yong Huang

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