Document:

Exhibit 10.35

 

 

 

2040701 – Fixed Asset Purchase Contract Review Form

Basic contract information

serial number:GDZC-20180725-0001

Contract No. G12-Z06-20180712-11

Date of signature 20180712

Initiator Liu Gaoyang

Company Heilongjiang Xinda Enterprise Group Company Limited

Affiliated section Purchasing Department

Affiliated organization Equipment Purchasing Group

Affiliated organization ID 2018Ij5001b5t3

Initiated date 2018-07-25 14:26

Contract Classification Fixed Asset Purchase

Contracting Department Purchasing Department

Signing place Harbin

Contract name Production equipment purchase contract

Demander’s Name Heilongjiang Xinda Enterprise Group Company Limited

Demander’s Address No. 9, Hanan 1st Road, Pingfang District, Harbin

Legal representative/telephone Dai Rujun 0451-8678111

Principal of Demander/Telephone Liu Gaoyang 0451-8678111

Supplier’s Name Harbin Hailezi Technology Co., Ltd.

Supplier’s Address Room 1710, Fusite Building, No. 242, Hongqi Street, Nangang Centralized Park, Harbin Economic Development Zone

Legal representative/telephone Sun Zongyan 0451-51065290

Principal of Supplier/Telephone Song Xue 0451-51065290

Subject Project of purchasing 300,000 tons (bio-based) composite in July

Contract performance period from 2018-07-12 14:29 to 2019-12-31-14:29

Contract service period 2020-07-31 14:29

 

Contract payment information

Company Name Harbin Hailezi Technology Co., Ltd.

Invoice Type VAT Special Invoice

Address, Telephone Room 1710, Fusite Building, No. 242 Hongqi Street, Nangang Centralized Park, Harbin Economic Development Zone 0451-51065290

Bank of China Agricultural Bank of China Co., Ltd. Harbin Longxiang Sub-branch

Bank acct 08066601040006419

Taxpayer Identification Number 91230199MA18YEKJ20

Contract amount 1156974000.00 yuan

Payment method installments

Number of installments 4

Seal details

Seal Place Room 501, Jiangnan Zhonghuan Road

Seal Type special contract Seal

Seal name special contract seal of Heilongjiang Xinda Enterprise Group Company Limited

Seal supervisor Yang Donghua

Seal keeper Yang Donghua

Seal Number G12-05

Heilongjiang Xinda Enterprise Group Company Limited 300,000 tons (bio-based) composite materials project production equipment purchase contract

Party A: Heilongjiang Xinda Enterprise Group Company Limited

Party B: Harbin Hailezi Technology Co., Ltd.

Contract No.:G12-Z06-20180712-11

Signed place:Harbin

Signed date:July 12, 2018

Table of Contents

	Section 1	
Purchase of Equipment

	Section 2	
Packaging

	Section 3	
Transport signs

	Section 4	
Notice of Shipping

	Section 5	
Insurance

	Section 6	
Project Contact

	Section 7	
Equipment handover

	Section 8	
Quality Assurance

	Section 9	
Equipment price, payment

	Section 10	
Taxes and other expenses

	Section 11	
Representation and Warranties of Party B

	Section 12	
Representation and Warranties of Party A

	Section 13	
Breach of contract by Party A

	Section 14	
Breach of contract by Party B

	Section 15	
Compensation

	Section 16	
Notice

	Section 17	
Governing law and resolution of disputes

	Section 18	
Force majeure

	Section 19	
Miscellaneous

Party A: Heilongjiang Xinda Enterprise Group Company Limited (hereinafter referred to as Party A) is an enterprise legal person established in accordance with the laws of the People’s Republic of China (“China”).

Address: No. 9 Hanan 1 Rd. Pingfang Dist, Harbin city, Heilongjiang Province, China

Party B: Harbin Hailezi Technology Co., Ltd. (hereinafter referred to as Party B) has rich experience in international purchasing and after-sales of plastic equipment.

Address: Room 1710, Fusite Building, No. 242 Hongqi Street, Nangang Centralized Park, Harbin Economic Development Zone

After many times of equipment demonstration, technical demonstration and process demonstration with internationally renowned manufacturers of production equipment and suppliers of complete design schemes of equipment, Party A finds that the original equipment agreed by Party A and Party B cannot meet the requirements of project automation, digitalization and intellectualization.  After friendly consultation between the parties, the original purchase plan of production equipment is suspended, and Party A promises to give priority to consider Party B on the subsequent cooperation.

Now that Party A has completed the production layout and production process demonstration of the project, Party A and Party B have restarted the purchase plan of production equipment of “300,000 tons (bio-based) composite material project”. As the centralized supplier of Party A’s project equipment, Party B must implement the complete set of equipment standards provided by Party A, and ensure the smooth completion of the joint test run of the equipment, and provide the test material for Party A without compensation till the equipment is normally put into use and production.

After friendly consultation, the two parties reached an agreement to sign this purchase contract, the specific contents of which are as follows:

Term 1 Purchase of Equipment

The name, specifications, models and prices of the equipment to be purchased are detailed in Annex A - Production Equipment List (“Annex A”), and the technical requirements are detailed in Annex B - Production Equipment Technical Agreement (“Annex B”), and Annex A and B are used as the basis for acceptance of the equipment handed over to Party A by Party B.

Term 2 Packaging

Unless otherwise stipulated in this contract, all the equipment provided must be packed with standard protective measures, which shall be applicable to ocean and inland transportation, storage and handling, and shall be well protected against moisture, rain, earthquake and rust to ensure the safe arrival of the equipment at Party A’s site. Party B shall bear the responsibility for rust, damage and loss of equipment caused by improper packing.

 

Term 3 Transport signs

3.1 Party B shall mark the following items in striking letters on the four sides adjacent to each packing box with non-fading paint

A. Name, quantity, box number

B. Gross/net weight (kg)

C. Size

3.2 Where the package weighs two or more tons, Party B shall use appropriate transport marks “center of gravity” and “lifting point” on both sides of each package box. According to the characteristic of the equipment and the different requirements for transportation, the packing box should be clearly marked “Handle with Care”, “Keep Upright”, “Moisture-proof” and other appropriate signs for handling and transport.

Term 4 Notice of shipping

Party B shall notify Party A by telephone and Email at the same time before each batch of equipment is dispatched. The name, quantity, number of packages, gross weight, total volume (cubic meters) and expected arrival date of the equipment shall be notified together with any special requirements and precautions in the warehousing of the equipment.

Term 5 Insurance

Party B shall insure the equipment sold, and all the equipment shall be insured at 100% of its price.

Term 6 Project Contact

6.1 Party B and Party A shall each appoint one representative as the project contact (“project contact”) and authorize their respective project contact to handle all technical matters related to the contract equipment and services from the effective date of the contract until the expiration date of the quality assurance period. Party B and Party A shall, through friendly consultation, determine the regular liaison between project contacts and the means of liaison in case of emergency. Project contacts should work together to solve all technical problems that may arise with respect to contract equipment and services.

6.2 If requested by Party A, Party B shall be obliged to arrange and lead Party A to the equipment production site as required by Party A to verify the process of work and the quality of equipment, and the related expenses shall be borne by Party B.

 

Term 7 Transfer of Equipment

7.1 Both parties agree that the final delivery place of all goods is Party A’s factory in No. 9 Hanan 1 Road, Pingfang District, Harbin City, Heilongjiang Province, China. Party B shall transfer the equipment to Party A in accordance with Annex A and Annex B. All the equipment listed in Annex A should be checked, installed, accepted and handed over at the factory of Party A in Harbin, Heilongjiang Province.

7.2 Within 10 days after Party B receives the advance payment for the equipment paid by Party A, Party B carries out the reserve work.

7.3 Party B will complete all the equipment before October 2019 and deliver all the equipment to Party A’s factory in batches from October 2019 to December 1st 2019 according to Party A’s request, and hand over equipment to Party A according to Annex and Annex B. Both parties will make a joint inventory and record of the equipment. If the result of the counting does not conform to the requirements of Annex A of this Contract or there is damage in the transport process, Party B shall be deemed to have failed to deliver such equipment on time and Party B shall replace the equipment in good condition and in conformity with the requirements unconditionally and as soon as possible (without causing delays in installation progress).

7.4 Party B guarantees to complete the installation, commissioning, linkage test run of a workshop (10 production lines) by December 30, 2019 and pass the final acceptance of Party A, and complete the installation, commissioning, linkage test run of all equipment and pass the final acceptance of Party A by July31, 2020. Party A and Party B sign the acceptance report as the certificate of acceptance. From the date of signing the final acceptance report, the contract equipment will be transferred to the quality assurance period. During the quality assurance period, Party B shall be responsible for solving the problems arising after the final acceptance of the equipment in accordance with the relevant provisions of the quality assurance period of this contract.

7.5 Both parties agree that Party B is responsible for coordinating the installation and commissioning of all equipment with the equipment manufacturer. In the process of installation and commissioning, Party B ensures that the manufacturer’s technicians will give necessary explanations and training to Party A’s technicians. The effect of such explanations and training shall reach the degree that Party A’s relevant technicians can operate the equipment independently (including related systems). The customs fee shall be borne by Party B.

7.6 The technical and installation personnel of the equipment manufacturer shall install the equipment in strict accordance with the installation instructions of the equipment and the provisions and precautions of Party A, and take necessary safety precautions. If any casualties occur during the installation of the equipment, Party B and the manufacturer shall bear the responsibility, without pursuing Party A for responsibility.

7.7 From the date of signing the final acceptance report, the responsibility of keeping the object of the contract and the risk of loss are transferred to Party A. At the same time, the rights of management, use, disposition and profit of the object of the contract are also transferred to Party A.

 

Term 8 Quality Assurance

8.1 Party B shall ensure that the equipment provided under the contract is completely new, unused and undefective. Unless otherwise specified in the contract, the equipment shall contain all the latest improvements in design and materials. Party B guarantees that the software used in the equipment control system has legal copyright, and Party B guarantees that the software used in the equipment control system has legal copyright. And Party B guarantees:

a. All equipment provided by the company shall not infringe upon any intellectual property rights of any third party; otherwise Party A shall be compensated for any losses incurred as a result.

b. If Party A is prohibited from using the equipment because the equipment provided by it infringes the intellectual property rights of the third party, Party B shall provide alternative equipment that does not infringe the intellectual property rights of the third party and meet the requirements of Party A, and bear all the expenses and losses incurred in Party A.

c. If it is unable to provide an alternative equipment that meets the above requirements, Party A has the right to return the equipment, and if some equipment affects the use of other equipment, Party A has the right to request to return all affected equipment and ask Party B to compensate for the loss depending on the affection situation.

8.2 Party B shall ensure that the equipment provided under the contract complies with the contract requirements in terms of quality and specifications. At the same time, if there is a national standard, it shall also comply with the national standards and ensure that the contract equipment is satisfactory under the correct installation and operation and maintenance. Performance. The quality guarantee period is six months from the date of signing the acceptance report by both parties.

The above mentioned quality assurance does not apply to the following situations.

		·	
Consumables

		·	
Damage or defect caused by Party A’s modification of the equipment provided by Party B without the consent of Party B

failure or defect caused by Party A’s operation, maintenance and service due to the failure to follow the opinion of Party B's personnel and/or failure to follow the operation manual and/or any other operating instructions provided by Party B

		·	
Damage or defect due to force majeure

8.4 Party B shall ensure that the equipment does not have the potential quality defects caused by the manufacturer or Party B. If the equipment is in operation, it may be caused by Party B or the manufacturer (including but not limited to the design and manufacturing defects that the equipment may not find at the time of acceptance). Party B shall be obliged to notify and ensure that the technical personnel of the equipment manufacturer shall repair the equipment on site within 5 days. The repair shall be completed as soon as possible and until the equipment meets the requirements for production and operation. Party B shall ensure that such maintenance does not require any expense of Party A and Party A shall be compensated for the losses suffered. If the manufacturer cannot provide repair services or provide repair services, all losses will be borne by Party B.

 

8.5 In addition, Party B is also obliged to notify and ensure that the equipment manufacturer's technical personnel will repair the equipment within 5 days for the damage or defects of the equipment in operation caused by reasons not attributable to Party B or the manufacturer. The repair shall be completed as soon as possible until the equipment meets the requirements of production and operation. The relevant expenses shall be borne by Party A.

Term 9 Equipment price, payment

9.1 The two parties have determined through consultation that the equipment price of this contract is as shown in Annex A - List of production equipment. The total price of the final equipment is RMB one billion one hundred and fifty six million nine hundred and seventy four thousand (1.156974 billion) yuan (referred to as "the total price of equipment").

9.2 The total price of the above equipment is the final cost of the equipment to the designated delivery place of Party A, including packaging, transportation, customs clearance, installation, commissioning, technical training and other costs. Party A shall pay Party B the total price of the equipment by wire transfer, check or acceptance draft in accordance with the provisions of this contract.

9.3 In July 2018, after the signing of the procurement contract between Party A and Party B, within 10 working days, Party A shall pay Party B an advance payment of RMB four hundred million (400 million) yuan.

9.4 Party A shall pay the amount before the shipment of RMB twenty five million four hundred and fifty six thousand two hundred (25.4562 million) yuan.

9.5 After all the equipment arrives at the Party A factory and passes the final inspection, Party A will pay Party B the equipment payment of six hundred and seventy three million six hundred and sixty nine thousand two hundred (RMB 673.6692) million yuan.

9.6 After one year of normal use of the equipment, Party A shall pay Party B a 5% warranty of RMB fifty seven million eight hundred and forty eight thousand six hundred (57.8486 million) yuan.

Term 10 Taxes and other expenses

10.1 Party A and Party B shall each bear its own expenses incurred in negotiating, drafting, signing and performing of this contract.

10.2 Party B shall bear the equipment costs, technical expenses and technical service expenses incurred by the equipment manufacturer in Party A's equipment installation, commissioning and explanation and training to Party A.

 

10.3 Party B shall issue a special value-added tax invoice to Party A equal to the total contract price before completing the installation and commissioning of the equipment, and the tax rate shall be 16%.

Term 11 Representations and Warranties of Party B

Party B acknowledges that Party A's signing of this contract is based on Party B's following representations and warranties. Party B's statement, guarantee and commitment to Party A are as follows:

(a)Party B has the full right and authority to sign, execute and deliver this contract and perform the transactions contemplated by this contract, and Party B is formally established or formed according to the law of its formation;

(b)Party B signs and delivers this contract and Party B's performance of the transactions contemplated by this contract has been formally approved and authorized by Party B to take all necessary corporate actions or other actions.

(c)If Party A officially authorizes, signs and delivers this contract, this contract constitutes a legal, valid and binding obligation to Party B, and may be enforced against Party B in accordance with the terms of this contract, unless the enforcement clause is subject to bankruptcy and powerlessness. Reimbursement, reorganization, deferred payment or similar legal restrictions that generally affect the rights of creditors;

(d)The signing, delivery and performance of this contract by Party B and the completion of the transactions contemplated by this contract will not violate any provisions of the organization or corporate governance of the party; or any laws, regulations, contracts or judgments binding on the Party B.

Term 12 Representations and Warranties of Party A

Party A acknowledges that Party B's signing of this contract is based on the following representations and warranties of Party A. Party A's statement, guarantee and commitment to Party B are as follows;

(a)Party A has all the rights and authorizations to sign, execute and deliver this contract and perform the transactions contemplated by this contract, and Party A is formally established or formed according to the law of its formation;

(b)Party A signs and delivers this contract and Party A's performance of the transactions contemplated by this contract has been formally approved and authorized by Party A to take all necessary corporate actions or other actions.

(c)If Party B officially authorizes, signs and delivers this contract, this contract constitutes a legal, valid and binding obligation to Party A, and may be enforced against Party A in accordance with the terms of this contract, unless the enforcement clause is subject to bankruptcy, insolvency, Restructuring, deferred payments or similar laws that generally affect the rights of creditors;

 

(d)Party A's signature, delivery and performance of this contract and the completion of the transaction contemplated by this contract will not violate any of the party's organization or corporate governance; or any laws, regulations, contracts or contracts that are binding on the party. judgment.

Term 13 Party A defaults

If Party A has the following actions without the prior written consent of Party B, Party B shall compensate Party B and protect Party B from damage:

(a)If the payment of any one-phase equipment payment exceeds 30 days, the purchaser shall pay the full interest expense of the unpaid amount after the payment due date, based on the interest rate of the central bank demand deposit during the same period.

Term 14 Party B defaults

If Party B has the following actions, Party A shall be compensated and protect Party A from damage:

(a)If the equipment is not delivered within the time limit stipulated in this contract (except that the period is fulfilled by Party A's written consent, or because Party A does not have the on-site conditions, the period is extended) by Party B, Party B shall pay 3 per ten thousand on a daily basis based on the total price of the equipment.

(b)If the equipment is not installed within the time limit specified in this contract (except for the period in which the implementation period is approved by Party A's written consent or due to Party A's failure to meet the site conditions), Party B shall start from the date of the agreed equipment installation date pay Party A 3 per ten thousand on a daily basis based on  the total price of the equipment.

(c)If it fails to pass the final inspection and acceptance within the acceptance date of the equipment specified in this contract, Party B shall, at its own expense, arrange for the replacement, commissioning or other reasonable measures to be taken as soon as possible, so that the equipment meets the final inspection acceptance requirements and passes the final inspection acceptance, and from the day after the agreed equipment acceptance date, Party B will pay liquidated damages on the basis of three-thousandths of the total price of the equipment. For the delivery acceptance date, if Party B is delayed by 4 weeks from the contractual deadline, Party A will have the right to terminate the contract and ask Party B to return all the payment already paid, pay the above-mentioned daily payment and pay 30% of the total price of the equipment as penalty to Party A.

(d)According to the delivery acceptance result, it is found that the quality or specification of the equipment does not conform to the contract or the equipment is flawed, or the equipment is found to have potential defects before the handover. If a claim is filed by Party A during the installation, commissioning, acceptance and quality assurance  period, the claim shall also be settled in accordance with Article 15.2 of this contract. If after the expiration of the quality assurance period, Party A discovers that there is a potential defect before the handover, Party B is obliged to notify and ensure that the technical personnel of the equipment manufacturer will arrive at the site within 5 days in accordance with the provisions of Article 8.4 of this contract. The equipment shall be repaired, and the repair shall be completed as soon as possible and until the equipment meets the requirements for production and operation. Party B shall ensure that such maintenance does not require Party A to bear any expenses, and shall compensate Party A for the losses suffered by Party A.

 

Term 15 Compensation

15.1 If any of the statements, warranties or undertakings in this contract or any other documents delivered by the party under this contract are inaccurate, or if one party violates such representations, warranties or promises, any claims, losses, damages, expenses and expenses (including but not limited to: direct economic losses, indirect economic losses, notary fees, legal fees, legal fees, travel expenses, etc.) suffered by the other party shall be borne by the violating party.

15.2 If Party B is responsible for any of the above-mentioned deviations, guarantees or commitments and Party A files a claim within the inspection, installation, commissioning, acceptance and quality assurance period specified in the contract. Party B shall, in accordance with Party A’s consent to one or more of the following ways to combine to resolve claims.

A. Party B agrees that if Party A rejects the equipment and Party B will return the amount of the rejected equipment to Party A within 10 days from the date of rejection in the same currency as the contract, and Party B shall bear all the transportation expenses necessary for the return and return.

B. According to the deviation of the equipment and the degree of damage, the buyer and the seller agreed to reduce the price of the equipment.

C. By replacing defective parts and/or repairing defective parts with new parts, components and/or equipment that meet the specifications, quality and performance requirements of the contract, Party B shall bear the costs and risks incurred and bear the related direct loss costs. At the same time, Party B shall guarantee the warranty period of the replacement parts at least three months after replacement or repair, but the warranty period shall not be earlier than the quality guarantee period of the contract equipment as stipulated in the contract.

Term 16 Notice

16.1 Notice

All notices, requests, requests, consents and other communications ("Notices") to be sent by one party shall be delivered by post or by fax to the other party. In addition, other addresses or fax numbers may be designated in accordance with the notice given by each party, and the notice shall comply with the provisions of this section regarding the service notice.

16.2 Delivery

 

Any notice shall be deemed to be delivered if:

(a)Notice delivered by hand or delivered by courier company, deemed to be served on the day of actual delivery;

(b)A notice sent by postage-paid registered mail shall be deemed to have been served three working days after it is sent;

(c)A notice sent by fax is deemed to have been delivered on the date of transmission (as long as the sender has a report confirming the transmission, the fax number sent, the fax number of the recipient, the number of pages transmitted and the date of transmission are displayed) .

Term 17 Governing law and resolution of disputes

17.1 Governing law

The signing, validity, interpretation and settlement of disputes of this contract shall be governed by Chinese law.

17.2 Resolution of disputes

Any dispute, disagreement or claim arising out of or in connection with this contract, or arising out of or in connection with the execution, interpretation, breach of contract, termination or validity of this contract (each a “dispute ") should be resolved first through friendly negotiation. If the negotiation fails, it should be submitted to the litigation.

17.3 Litigation

The lawsuit shall be submitted to the people’s court where the contract is signed.

17.3 Property preservation

In order to protect the rights of both parties and provide remedies, either party has the right to seek property preservation from any court of competent jurisdiction in accordance with the law before the court makes a final decision. During the settlement of the dispute, the parties shall continue to execute this contract in all other respects except for matters of dispute.

Term 18 Force majeure

In the event which is unforeseeable by the affected party and the occurrence and consequences of which cannot be prevented or avoided by the affected party, such as earthquakes, typhoons, floods (except for fires that are negligent or deliberately caused by one party to the contract, its employees or their guests) and other natural disasters, wars, riots and similar military operations, civil unrest and strikes, absenteeism, epidemics, government embargoes, expropriation, injunctions or other restrictions and actions ("force majeure events") directly cause one party unable to fully or partially fulfill its obligations under this contract (the “affected party”), the affected party shall be deemed not to have violated this contract as long as all of the following conditions are met:

 

(a)The suspension, obstacles or delays encountered by the affected party in fulfilling its obligations under this contract are directly caused by force majeure events;

(b)In the event of a force majeure event, the affected party informs the other party and provides written information about the event within 30 working days after the occurrence of force majeure, including a statement stating the delay in performance or the reasons for which the contract cannot be performed.

Term 19 Miscellaneous

19.1 Waiver

A party that waives the rights stipulated in this contract must sign a written document in order to waive the relevant rights. The failure or delay of a party to exercise any of its rights, powers or remedies under this contract shall not be deemed as a waiver, and the exercise of any part of the rights, rights or remedies under this contract shall not preclude the further exercise of such rights, rights or remedies, or the exercise of other rights, rights or remedies. Without limiting the foregoing, a waiver by one party of a breach of a provision by the other party shall not be deemed as waiver to pursue any breach of that or any other provision in the future.

19.2 No transfer or sublet

This contract shall be beneficial to and binding on the successors and transferees as permitted of the parties. Neither party shall assign the rights and obligations under this contract without the prior written consent of the other party.

19.3 Entire agreement

This contract constitutes all the understandings and all agreements reached between the parties on the subject matter of this contract, and supersedes all agreements and understandings reached between the parties on the subject matter of this contract.

19.4 Remedy

(a) The parties confirm that the damages may not be sufficient to compensate for the losses caused by the breach of this contract, and each party has the right to obtain injunctions or other remedies prohibiting violation of this contract and enforcement of the terms and provisions of this contract.

(b) The rights of each party under this contract are cumulative rights and are rights entitled in addition to all other rights or remedies that either party is entitled to under the law.

19.5 Not constituting employment, partnership or agency

Nothing in this contract shall constitute or be deemed to constitute an employer-employee relationship, partnership or agency relationship between the parties.

 

19.6 Severability

Every and each obligation under this contract shall be deemed as an independent obligation and shall be enforced separately when any one or more of the obligations may be unable to be enforced in whole or in part. If any one or more of the terms of this contract is unenforceable, it shall be deemed to be removed from this contract, and any deletion shall not affect the enforceability of other non-deleted provisions of this contract.

19.7 Amendment

This contract may be amended, modified or supplemented by a written agreement between the parties.

IN WITNESS WHERE OF, both parties to this contract have respectively procured their representatives to sign this contract on the date first written above.

This contract is made in four copies, with each party holding two copies.

Annex A: List of production equipment

Annex B: Production Equipment Technical Agreement

Party A: Heilongjiang Xinda Enterprise Group Company Limited

Signature of legal representative or authorized representative

Party B: Harbin Hailezi Technology Co., Ltd.

Signature of legal representative or authorized representative:

Annex A: List of production equipment

Contract details

28 production lines in the production workshop

 

 

 

 

	
Serial# 

	
Equipment name   

	Unit	
 

Quantity 

	
Unit price (10000 yuan) 

	
Amount (10000 yuan)

	
1

	
Centralized supply system 

	 set	
2

	
10,133.00 

	
20,266.00

	
2

	
Talc masterbatch granulation system  

	set	
8

	
309.00  

	
2472.00

	
3

	
Plant fiber masterbatch granulation system 

	 set	
4

	
709.00 

	
2836.00

	
4

	
Metering system    

	 set	
28

	
277.64

	
7774.00

	
5

	
Extrusion system   

	 set	
28

	
858.57

	
24040.00

	
6

	
Pelletizing system   

	 set	
28

	
384.00

	
10752.00

	
7

	
Homogenization system  

	 set	
28

	
522.00

	
14616.00

	
8

	
Packaging system  

	 set	
28

	
267.86

	
7500.00

	
9

	
Ancillary equipment

	 set	
2

	
2881.00

	
5762.00

	
 

	
subtotal 

	 	
 

	
 

	
96018.00

 

warehouse system has a total of 2 auto-stereo warehouses

 

	
1

	
Storage system

	set	
4

	
867.50

	
3470.00

	
2

	
Tank storage system

	 set	
32

	
502.50

	
16080.00

	
3

	
Forklift

	 set	
6

	
8.50

	
51.00

	
4

	
Unpacking machine

	 set	
4

	
19.60

	
78.40

	
 

	
subtotal  

	 	
 

	
 

	
19679.40

	
 

	
 

	 	
 

	
 

	
 

	
 

	
Total   

	 	
 

	
 

	
115697.40Exhibit 10.36

 

 

Labor Contract

Name of Party A (Employer): Heilongjiang Xinda Enterprise Group Company Limited

Address: No. 9 Dalian North Road, Haping Road Centralized Park, Harbin Economic Development Zone, Heilongjiang Province

Legal Representative: Ma Qingwei

Principal: Ma Qingwei

Name of Party B (Employee):         Dai Rujun

ID Number:       130925198307246614

Home Address: Room 202, Unit 1, Building D4, Manxianglin, Haifushan Hydrology Park, 623-1 Sanhe Road, Xiangfang District, Harbin

Domicile:              Harbin

Contact Address: Room 202, Unit 1, Building D4, Manxianglin, Haifushan Hydrology Park, 623-1 Sanhe Road, Xiangfang District, Harbin

Contact Number: 8678111

E-mail:

Harbin Municipal Bureau of Labor and Social Security Supervision

Description

In the upper right corner of the cover, mark 23 indicates Heilongjiang Province, mark 01 indicates Harbin City, and the blank after “一” is the code for each district and county (city).

The bottom of the cover has 19 blanks, with the left 1 – 8 for the endowment insurance code; 9 – 12 for the contract year, month; 13 – 14 for the contract period; 15 – 19 for the signing sequence number.

Example 1: For contract signed in January 2008, fill in 0801 in 9 – 12; for the contract period of 1 year, fill in 01 in 13 – 14; fill in 90 for an open term; and fill in 00 for the term based on the completion to tasks.

The first digit of the 15-19 sequence number is the code that: for the labor contract signed with the rural migrant worker, mark *; for the labor contract signed with the urban migrant personnel, mark #; for the labor contract signed with the local city and district personnel, mark 0; the 16 – 19 sequence number will be filled in by the Employer.

Instruction

		1.	
Party A and Party B should carefully read the contents of the labor contract when entering into this Contract. Once a labor contract is agreed and entered, it shall be binding and effective, and both parties shall fully perform.

		2.	
The Employer shall conscientiously perform obligations to present to and notify the Employee the rules and regulations and major events that directly concerning the vital interests of the Employee.

		3.	
If the Employer recruits the Employee, it shall not detain the Employee’s ID card and other valid documents, and shall not require the Employee to provide securities or collect property from the Employee in other names.

		4.	
Once this Contract is entered into, neither party shall arbitrarily alter the contents of the labor contract.

		5.	
Party A and Party B shall each hold one copy of this Contract. Party A shall not hold Party B’s labor contract on his behalf, and the contract shall be kept for two years for future reference after dismissal or termination.

		6.	
If Party B recruited by Party A has not dismissed or terminated the labor contract with other companies, Party B shall truthfully state whether it will cause losses to the original employer, and Party B shall make a written commitment. If it may cause losses to the original employer, Party A shall not recruit Party B.

		7.	
This Contract must be signed by Party B himself.

Pursuant to the Labor Law of the People’s Republic of China, Labor Contract Law of the People’s Republic of China and other laws, regulations and rules, on the basis of equality, free will, mutual consultation and good faith, Party A and Party B agree to enter into this Labor Contract and be bound by the provisions of this Contract.

		I.	
Type and Term of Contract (Number Capitalized)

Article 1   Party A and Party B select the following form (1) to determine the term of this Contract:

		(1)	
Fixed Term: The term of this Contract is 36 months, from July 1, 2018 to June 30, 2021, including a probation period   / (month, day).

		(2)	
Open Term: from / till the occurrence of the statutory termination event or termination event as stipulated in this Contract.

		(3)	
The term for completing certain tasks. It commences from / and cease when the work task is completed. The probation period is from / to /, which is / (day).

 

 

  

		II.	
Work Content and Work Place

Article 2   Party B’s work position is Deputy General Manager, with the work place in Harbin.

Article 3   Party B shall, in accordance with the post responsibility determined by Party A, complete the assigned work as required by Party A within the prescribed working hours; and follow various rules and regulations formulated by Party A in accordance with laws, abide by professional ethics and keep business secrets.

Article 4   When Party B becomes an employee of Party A, Party B has already been aware of the unique management method of Party A, that is, Party A will annually shift each kind of position of the company following a rotational policy to improve the efficiency of the company and to best utilize the talents. Party B agrees that Party A has the right to adjust his work place and work position according to the needs of the work during the term of this Contract; and Party B shall obey Party A’s management and work arrangements. After Party B’s position is adjusted, the salary standard of the new position shall be applied.

		III.	
Working Time and Vacation

Article 5    Party B implements the irregular working hour system (standard working hour system, irregular working hour system, comprehensive calculation working hour system).

		(1)	
Under the standard working hour system, Party A shall arrange for Party B to work no more than eight hours a day, with an average of no more than forty hours per week. Party A may extend the working hours after consultation with the union and Party B due to the needs of the work. Generally, it shall not exceed one hour per day. If it is necessary to extend the working hours for special reasons, the extended working hours shall not exceed three hours a day and thirty six hours a month, provided that Party A shall ensure the health of Party B.

 

 

 

		(2)	
Under the comprehensive working hour working system, the average daily working time shall not exceed eight hours, and the average weekly working time shall not exceed forty hours.

		(3)	
Under the irregular working system, Party B shall arrange its own work time, rest and vacation.

Article 6  Should Party A extend Party B’s working hours, Party A shall arrange for Party B to make up for the same time or pay for overtime work.

Article 7   During the term of this Contract, Party B shall enjoy each national right for rest and vacations.

Article 8   Party A shall strictly implement the national and local laws, regulations and rules concerning employment protection, provide Party B with necessary employment conditions and employment tools, establish and improve production processes, formulate operational procedures, work practices and employment safety and health regulations and standards.

Article 9   If Party B engages in work of occupational disease hazards, Party A shall organize occupational health checks before reporting to and after leaving the post in accordance with relevant national regulations, and shall have Party B conduct regular occupational health checks during the term of this Contract.

Article 10   Party A shall be responsible for the education and training of Party B on professional ethics, business technology, labor safety and health and related rules and regulations.

Article 11   Party B has the right to refuse Party A’s illegal command, and should Party A and its management personnel have any behavior disregarding Party B’s safety and health, Party B shall have the right to criticize and report the complaint to the relevant department.

		IV.	
Remuneration

Article 12   The wages during the probationary period shall not be lower than the minimum wage of the same post of the unit or 80% of the wages stipulated in Article 13 of this Contract, and shall not be lower than the minimum wage standard of where the Employer is located.

Article 13   After the expiration of the probationary period of Party B, Party A shall determine the wage standard of Party B according to the salary system of the unit, with reference to the specific salary and compensation system of the company. Should there be any change to Party A’s salary system or Party B’s work position, it shall be determined according to the new salary standard.

 

 

Article 14   Party A shall pay Party B’s salary in the form of legal currency on a monthly basis, with the payday on the 18th day of each month, and shall not deduct such salaries or unreasonably default.

Article 15   Should Party A arrange Party B to extend the working hours of the day, Party A shall pay wages no less than 150% of Party B’s salary; should Party A arrange Party B to work on the vacation day and be unable to arrange to make up for the missed rest, it shall pay wages no less than 200% of Party B’s salary; should Party A arrange Party B to work on statutory holidays, it shall pay wages no less than 300% of Party B’s salary. Party B’s overtime work shall comply with the company’s overtime work system. Party B’s unauthorized extension of working hours shall not be considered as overtime work and Party A may not make any compensation.

Article 16   Should Party A’s business cease and the production be suspended or closed due to reasons not attributable to Party B, which is less than one month, Party A shall pay Party B salary according to the salary standard as stipulated herein; should it be more than one month and Party A do not arrange work for Party B, Party A shall pay Party B living expenses according to the standard no lower than the local unemployment insurance standard.

Article 17   Should Party A extend Party B’s working hours, Party A shall arrange for Party B to make up for the same time or pay for overtime work.

Article 18   Party B shall enjoy Party B’s annual leave, family leave, funeral leave and other holidays. During the holidays, Party A shall pay Party B salary according to the relevant national and local standards or the standards as stipulated in the labor contract.

		V.	
Social Security and Welfare Benefits

Article 19   Party A shall pay for Party B the basic pension, basic medical care, unemployment, work injury and maternity insurance fees according to the national and local laws, regulations and policies in relation to social insurance; for the part of the social insurance premium borne by the individual, Party A may withhold and pay from Party B’s salary. When the labor contract between the parties is dissolved or terminated, Party A shall handle the transfer of files and social insurance for Party B within 5 days.

 

 

Article 20  The medical treatment of Party B’s illness or non-work-related injuries shall be implemented in accordance with relevant national and local policies.

Article 21  Party B’s work injury treatment shall be implemented in accordance with relevant national and local policies and regulations.

Article 22   The various treatments of Party B during pregnancy, maternity, lactation, etc. shall be implemented in accordance with the relevant national and local maternity insurance policies.

Article 23   Party A shall provide Party B with the following benefits: on basis of the company system

		VI.	
Rules and Regulations

Article 24   The rules and regulations formulated by Party A in accordance with law shall be disclosed to Party B. Party B confirms that he been trained in labor discipline and various rules and regulations of the company while signing this Contract. Party B recognizes the validity of each system and agrees to comply for implementation.

Article 25  Party B shall strictly abide by the rules and regulations formulated by Party A, complete tasks, improve vocational skills, implement workplace safety and hygiene procedures, and abide by labor discipline and professional ethics.

Article 26  Should Party B violate labor discipline, Party A may, in accordance with the rules and regulations of the unit, give corresponding administrative treatment, administrative sanctions, economic penalties, etc., and directly terminate this Contract.

		VII.	
Change, Dissolution, Termination, Renewal of Labor Contract

Article 27  Should there be any major change to the objective situation on which the Contract is concluded, which causes the contract unable to be performed, the relevant contents of this Contract may be changed by the parties based on mutual consensus.

Article 28  This Contract may be terminated by mutual agreement between Party A and Party B.

 

 

Article 29  If Party B has one of the following circumstances, Party A may terminate this contract.

		1.	
During the probationary period, if it is proved that Party B does not meet the qualifications of employment, with the qualifications of employment being:

		2.	
Seriously violate the labor discipline or Party A’s rules and regulations;

		3.	
Seriously derelict duty, conduct malpractice, which causes serious damage to the interests of Party A;

		4.	
Establish employment relations with other employers at the same time, which will have a serious impact on the completion of Party A’s work tasks, or refuse to make corrections when advised by Party A;

		5.	
By fraudulent means, cause Party A enter into or change the labor contract against Party A’s true will;

		6.	
Be investigated for criminal responsibility according to law.

Article 30  In one of the following circumstances, Party A may terminate the Contract, provided that Party A shall notify Party B in writing 30 days in advance or pay Party B an additional monthly salary.

Party B, being sick or injured due to reasons not attributable to work, cannot work in the original work or work in another place arranged by Party A after the medical period;

Party B is not qualified for the job, and is still not qualified for the job after being trained or adjusted of position;

The parties cannot agree on the change of contract in accordance with Article 27 of this Contract.

Article 31  Should Party A be on the verge of bankruptcy for statutory rectification or under serious difficulties in production and operation (difficult enterprise standards as stipulated by local governments), after explaining the situation to the union or all employees, listening to the opinions of the union or employees, and reporting to the labor security administration, this Contract may be terminated.

Article 32  Should Party B have one of the following circumstances, Party A shall not terminate this Contract in accordance with Article 30 and Article 31 hereof:

 

 

Engage in occupational disease hazards, without conducting occupational health checks before leaving the post or be in the diagnosis or medical observation period as a suspected occupational patient;

If the occupational disease or work-related injury has reached the level that the labor contract cannot be dissolved or terminated in accordance with national laws;

Be sick or injured not attributable to work and still in the prescribed medical period;

Be a female employee during pregnancy, childbirth and lactation;

Work for Party A for 15 consecutive years and be less than five years till the statutory retirement age;

Act as a representative for collective negotiation in the performance of the duties of such representative;

Other circumstances in compliance with laws and regulations.

Article 33  In any of the following circumstances, Party B may terminate this Contract with Party A at any time, and Party A shall pay Party B corresponding labor remuneration and pay social insurance according to law.

The Employer fails to provide employment protection or working conditions in accordance with the labor contract;

The Employer fails to pay the labor remuneration in a timely manner;

The Employer has not paid social insurance premiums to the Employee according to law;

The rules and regulations of the Employer violate the laws and regulations and damage the rights and interests of the Employee;

The Employer invalidates the labor contract due to the circumstances stipulated in Article 26 of the Labor Contract Law of the People’s Republic of China;

Other circumstances as stipulated by the laws, administrative regulations that the Employee can terminate the labor contract.

Article 34  Should Party B intend to terminate the labor contract, Party B shall notify Party A in writing 30 days in advance.

Article 35  When the contract expires, this labor contract shall be terminated, and the parties may renew the labor contract upon mutual consensus.

Article 36  After the expiration of this Contract, should there be still a labor relationship between the two parties, Party A shall sign or renew the labor contract with Party B in time.

Article 37  If a contract without an open term is entered, should the statutory termination event or the following termination event agreed by the parties occur, this Contract shall be terminated.

		VIII.	
Economic Compensation and Indemnification

Article 38  Should Party A fail to pay the remuneration in full and in time according to the stipulations of the labor contract or the national regulations, and arrange for overtime work without overtime payment, Party A shall pay corresponding compensation or indemnification according to the law.

Article 39  Should Party A terminate Party B’s contract, except as provided in Article 29 hereof, Party A shall pay Party B economic compensations in accordance with the Article 47 of the Labor Contract Law of the People’s Republic of China.

Article 40  Should this Contract be terminated resulting from Party B’s violation regulations or the provisions hereof, which causes Party A losses, Party B shall compensate Party A for the following losses:

1. The training fee and recruitment fee paid by Party A;

2. Direct economic losses to production, operations and work;

3. Other compensation fees as stipulated herein.

		IX.	
Liability for Breach of Contract

Article 41  The party who violates this Contract shall bear corresponding responsibility.

		X.	
Other Matters Agreed by The Parties

Article 42  While signing this Contract, Party A and Party B shall, at the request of the Harbin Municipal Bureau of Labor and Social Security, sign a labor contract online. The parties hereby agree and sign to confirm that the rights and obligations of all labor relations between Party A and Party B are based on this Contract, that the online contract shall be limited to the filing of the labor contract, and that this Contract has the legal effect.

		XI.	
Dispute Resolution

Article 43  For any dispute applied with the labor dispute mediation committee of the unit for mediation, should Party B be unwilling to mediate or such mediation fail, and Party B request for arbitration, Party B shall render such dispute to the Harbin Pingfang District Labor Dispute Arbitration Commission for arbitration within 60 days from the date of the labor dispute. Either party may also directly submit disputes to the Harbin Pingfang District Labor Dispute Arbitration Commission for arbitration, and should either party be not satisfied with the arbitral award, such party may file a lawsuit with the people’s court.

 

 

		XII.	
Miscellaneous

Article 44  The following special agreements and rules and regulations, as exhibits hereto, shall have the same legal effect as this Contract.

Article 45  For any matter not covered herein, the two parties may resolve it by negotiations; should there be any conflict with the relevant provisions of the national laws and administrative regulations in the future, such relevant provisions shall prevail.

Article 46  Integrity Provisions: In the course of conducting business, should Party B accept any payment of a bribe of more than 10,000 yuan (RMB) or a gift of 10,000 yuan (RMB) or more, once verified, Party A will request Party B to make a compensation to Party A 10 times the bribery amount. Should it constitute any crime, the company will report to the police and pursue criminal responsibility according to law. This Article shall be permanently binding on both parties and will not become invalid due to any contract performance.

Article 47  This Contract is made in duplicate, with each party holding one copy.

Article 48  Party B confirms the following address as the address for service of files and documents in relation to the labor relationship. Should there be any change to the following address, Party B shall notify Party A in writing.

Delivery Address:

Delivery Email:

Party A: (seal)

Legal Representative (Authorized Signatory): (Signature)

Principal (Authorized Signatory): (Signature)

Date:

Party B: (Signature)

Date:

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