Name of Director
董事姓名： 金 涌
服 务 协 议
This Service Agreement (“Agreement”) is entered into as of the 14th day of May, 2009 (“Effective Date”) between China XD Plastics Company Limited, whose principal offices are located at 11 Broadway Suite #1004, New York, NY 10004 U.S.A. and its Wholly Owned Foreign Entity is located at No.9 Qinling Road, Yingbin Road Centralized Industrial Park Harbin Development Zone, Heilongjiang, China 150078 (hereinafter referred to as the “Company”), and Yong Jin , having an address at [ ] (hereinafter referred to as the “Director”), to provide the terms under which the Director shall perform his functions as an elected independent member of the Board of Directors of the Company during his respective terms.
此服务协议（以下简称“协议”）于2009年5月14日（以下称“生效日”）签署。协议双方为：中国XD塑料有限公司，主要办公地美国纽约州纽约市百老汇大街11号1004室, 其全资外资子公司主要办公地点在中国黑龙江省哈尔滨开发区迎宾路集中区秦岭路9号。邮编150078。和金涌, 地址为________________________（以下简称“董事”）。双方就该董事将会在其相应服务期限内履行其职责，作为公司董事会经选举的独立董事成员，拟定下述条款。
WHEREAS, the Company’s business consists of the development, manufacturing, and distribution of modified plastics, primarily for use in automotive applications thereto (the “Business”) and the Company is a public company subject to the securities laws and rules and other applicable laws and rules of the United States.
WHEREAS, the Company recognizes the unique qualifications and contributions of the Director and desires to secure the services of the Director on the terms and conditions set forth herein; and
WHEREAS, the Independent Director is prepared to commit to such services in return for specific arrangements, compensation and other benefits on the terms and conditions set forth herein.
NOW THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements herein contained, the Company and the Director do hereby agree as follows:
DUTIES OF THE INDEPENDENT DIRECTOR:
1.1 The Director shall carry out his duty as an independent director to the Company and shall make himself available to perform such functions in keeping with all the applicable laws, rules, and regulations of the United States of America, including, not limited to, the applicable securities laws and the laws of the State of Nevada, and the applicable laws and regulations of China.
1.2 The Director hereby agrees faithfully to render the service expected of an independent director and to promote the interests of the Company to the best of his ability and keep his duty of care, confidentiality and loyalty, among other duties. The Director further agrees to devote the necessary time, attention, skill, and best efforts to the performance of his duties under this agreement.
The Director shall not self-deal or do anything harmful to the interest of the Company or its shareholders and shall not engage in any insider trading or similar activities.
1.2 该董事特此同意提供独立董事的服务。发挥其最大能力并且恪守尽职、保密和忠诚等其它义务来提高公司的利益。该董事依照此协议进一步同意，将投入必要的时间、精力、技能和尽最大努力来履行其职责。 该董事将不会进行任何违规的个人交易或者做任何有损于公司或其股东利益的事。并且不会参与任何内部交易或类似活动。
1.3 The Director shall maintain his standing and capacity as an “independent director” under the rules of the Securities and Exchange Commission and the rules and regulations of relevant stock exchanges, and shall not engage in any employment or service with the Company or otherwise that may impair such standing.
1.4 The Director shall serve on the audit/ compensation/ nominating committee in his capacity as an independent director.
COMPENSATION AND EXPENSES
During his term as a Director until the end of his function as a Director:
2.1 The Company agrees to pay RMB 3,000 per month (RMB 36,000 annual) provided the cash component of the compensation shall increase to RMB 5,000 per month (RMB 60,000 annual) at the time of 18 months anniversary of the Effective Date of this Agreement and to issue to the Director, for services as such and for services as the chairperson of the ______ committee, an annual retainer (“the Retainer”) consisting of RMB 50,000 restricted Shares of common stock (“the Stock”) immediately after a stock/option plan registration is effective and available for stock issuance The Shares included in the annual Retainer shall be valued at the average closing price for the ten trading days prior to the Effective Date of this Agreement, and prior to each anniversary of the Effective Date. The Stock shall vest after twelve months of each year subject to the Director continued directorship with the Company on each vesting date and the applicable grant agreement and the terms of this Agreement. The Stock shall be granted under the Company’s 2009 Equity Incentive Plan to be file as soon as practicable.
2.1 公司同意支付董事人民币每月3,000元（一年为36,000元人民币）的现金薪酬。此部分现金薪酬应在此协议生效后的18个月时增加到每月5,000元人民币（一年为60,000元人民币）。并且在股票/期权计划注册生效时和可发行股票时立即给该董事每年发行价值为50,000元人民币的限制性股票 (简称“股票”)，作为其服务于____委员会主席的年聘用费（简称“聘用费”）。包括在年聘用费当中的股票应当按此协议生效前的10个交易日的平均收盘价计算价值，并且在协议生效日的每一年后再度计算股数。股票限制期为一年，条件是董事在限制期日仍然是公司的董事，并且受期权授予协议和本协议的限制。
2.2 The Company shall promptly pay or reimburse the Director for all reasonable expenses actually and properly (in accordance with the Company’s policy) incurred or paid by him in connection with the performance of his services under the Agreement (including, without limitation, travel expenses) upon presentation of expense statements or vouchers or such other supporting documentation in such form and containing such information as the Company may from time to time require. Any expense above RMB 500 shall be pre-approved by the Company.
2.3 The Company shall have appropriate Director and Officer Insurance coverage in place prior to the signing of this Agreement.
The Company shall indemnify the Director to the full extent permitted by the General Corporation Law of the State of Nevada.
4.1 This Agreement expresses the entire understanding and agreement of the parties and supersedes any and all prior agreements and understandings, whether written or oral, relating in any way to the subject matter of this Agreement. This Agreement cannot be modified, amended, or supplemented except by a written instrument or instruments executed by each of the parties hereto.
4.2 This Agreement shall have a term during the period director serves as an director of the Company until such time that he is removed by the board of directors by a majority vote or not elected by the next shareholder meeting, whichever comes earlier.
4.3 This Agreement shall be governed by and construed under the laws of the State of Nevada. If any provision of this Agreement shall be invalid or unenforceable, this Agreement shall be deemed amended but only to the extent required to make it valid and enforceable, and this Agreement as thereby amended shall remain in full force and effect.
4.4 Arbitration is the only and exclusive remedy to the parties for any dispute arising from this agreement. The Parties hereby expressly waive the right to any jury or non-jury trial and hereby expressly submit to the exclusive jurisdiction of an arbitration tribunal under the auspices of the American Association in the City of New York with such tribunal composed of three arbitrators of which one is selected by each party and the third one selected by the two arbitrators already selected respectively by the parties.
4.5 The award of the tribunal shall be exclusive, binding, final and enforceable against the parties. In any arbitration arising out of this Agreement, the prevailing party shall be entitled to request, and receive an amount as and for the reasonable counsel fees and expenses incurred by the prevailing party in connection with such action, proceeding, or arbitration.
IN WITNESS WHEREOF, the Company and the Director have executed this Agreement as of the day and year first above written.