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On September 22, 2021, the Bankruptcy Court issued a report and recommendation to the District Court recommending that it deny FGI USA’s motion to amend the judgment.
−Removed: We filed an objection to the report in October 2021, which was overruled by the Bankruptcy Court in September 2022, but the District Court has allowed FGI USA to propose an amendment to its complaint, which is in process.
−Removed: Huida Arbitration
−Removed: As previously disclosed, FGI Industries Ltd.
−Removed: (the “Company”), had been involved in arbitration with Tangshan Huida Ceramic Group Co., Ltd (“Huida”), one of the Company’s largest suppliers.
−Removed: The arbitration, held in the Shenzhen Court of International Arbitration, related to that certain Agreement for Co-operations (the “Co-Operation Agreement”), dated October 20, 2000, by and between Huida and FGI Industries, Inc., our wholly owned subsidiary.
−Removed: Huida was seeking a determination that the terms of the Co-Operation Agreement were not unlimited in duration and should be amended or else terminable.
−Removed: On September 28, 2022, the Company received notice that the arbitrator ruled that the Co-Operation Agreement was not unlimited in duration and is being terminated.
−Removed: There are no termination fees or penalties payable by the Company as a result of this termination, although the Company did pay certain arbitration fees of Huida.
−Removed: Under the Co-Operation Agreement, so long as the Company met certain annual product placement volume requirements, (i) the Company had an exclusive right to distribute and resell in the United States and Canadian markets any products designed and created by Huida and for which Huida retained all intellectual property rights, and (ii) Huida was not permitted to manufacture or sell any products the Company designed or created, for which we retained all intellectual property rights, without the Company’s prior consent.
−Removed: Huida remains a supplier of the Company’s sanitaryware products.
−Removed: The Company intends to work towards a new agreement with Huida that complies with the arbitrator’s findings, primarily a more limited duration to the length of the contract.
−Removed: However, there is no guarantee that an agreement can be reached on mutually agreeable terms.
+Added: We filed an objection to the report in October 2021, which was overruled by the Bankruptcy Court in September 202 2 , but the District Court allowed FGI USA to amend its complaint, which was filed in June 2023.
+Added: Huida moved to compel arbitration under the amended complaint in June 2023.
+Added: FGI USA opposed the motion to compel arbitration and in February 2024, the District Court denied that motion.
MINE SAFETY DISCLOSURES
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.