AGREEMENT
EXHIBIT
10
This
AGREEMENT is made and entered into this 14th day of June, 2006, between and
among AGA RESOURCES, INC., a Nevada corporation (“AGA”), TRIUMPH RESEARCH
LIMITED , a corporation organized and existing under the laws of the British
Virgin Islands (“Triumph”), BEIJING XXXXXX INTERNATIONAL FILM AND CULTURE CO.,
LTD., a company organized and existing under the laws of the Peoples’ Republic
of China (“Xxxxxx”), and all of the holders of the common shares of Triumph (the
“Triumph Stockholders”).
Section
1
DEFINITIONS
Section
2
PARTIES
TO THE AGREEMENT
2.01 AGA
RESOURCES, INC. (hereafter "Party A" or “AGA”), a company incorporated under the
laws of the State of Nevada trading on the NASD OTCBB under symbol "AGAO".
Address:
Suite 658, 000-000 Xxxx Xxxxxxxx Xxxxxx,
Xxxxxxxxx, Xxxxxxx Xxxxxxxx, Xxxxxx
Legal
Representative: Xxxxx, XxxxXxxx
Position:
President
2.02 TRIUMPH
RESEARCH LIMITED (hereafter "Party B" or “Triumph”), a company incorporated and
legally existing under the laws of British Virgin
Islands.
Address:
Room B, 19th
Floor,
Tung Hip Commercial Xxxxxxxx,
000-000
Xxx Xxxxx Xxxx, Xxxxxxx,
Xxxx Xxxx.
Legal
Representative: Lu,
JianDe
Position:
President
2.03 BEIJING
XXXXXX INTERNATIONAL FILM AND CULTURE CO. LTD. (hereafter "Party
C"
OR “Xxxxxx”), a company organized and existing under the
laws
of the Peoples’ Republic of China.
Address:
Xx.00,
Xx
Xx Xxxx, Xxxxxxxx Xxxxxxxx,
Xxxxxxx,
the
People's Republic of China
Legal Representative: Xx, XxxxXxxxx
Position: General Manager
2.04 THE
STOCKHOLDERS OF TRIUMPH RESEARCH LIMITED (hereinafter “Parties D” OR the
“Triumph Stockholders”), whose name appear on the signature pages hereof and who
sign this Agreement intending to be legally bound.
-1-
Section
3
THE
CLOSING AGREEMENTS
A.
AGA
has 20,100,000 issued and outstanding shares of common stock, $0.00001 par
value
(the “Common Stock”), as of the date hereof. At the Closing (subject to the
satisfaction of AGA’s conditions precedent to its obligations to close), AGA
shall issue 3,209,000 new investment shares of common stock of AGA to the
Triumph Stockholders on a pro rata basis. At the closing of the transactions,
AGA shall instruct its transfer agent to issue to the Triumph Stockholders,
on a
pro rata basis, restricted certificates for 3,209,000 in the aggregate of shares
of AGA common stock in a transaction that is intended to be exempt from
registration under Section 4(2) and Section 4(6) of the Securities Act of 1933,
as amended.
B.
At the
Closing (subject to the satisfaction of Triumph’s conditions precedent to its
obligation to close), the Triumph Stockholders shall tender an irrevocable
stock
power and certificates for all of the issued and outstanding common shares
of
Triumph, against delivery of a copy of the written instructions for the issuance
of the new investment shares of AGA common stock to the Triumph Stockholders,
and Triumph will become a wholly-owned subsidiary of AGA.
C.
In the
event that Triumph has not satisfied its obligation to fund the registered
capital of the Joint Venture in the amount of US$600,000 as of the closing,
AGA
may elect to close and consummate the transactions contemplated hereby, and
withhold issuance of the new investment shares of AGA to the Triumph
Stockholders until such time as such funding has occurred. At such time, AGA
shall then instruct its transfer agent to issue the certificates to the Triumph
Stockholders. In the event that the funding does not occur within a reasonable
period of time, AGA may, in its sole discretion, exercise its option to rescind
this Agreement and the transactions contemplated herein.
D.
The
parties hereto intend to participate in a joint venture relating to the
production of film and other media ventures in the Peoples’ Republic of China.
The Joint Venture agreement has been executed between Triumph and Xxxxxx, a
copy
of which is attached as Exhibit A hereto. After the closing, AGA intends to
participate in the joint venture through its wholly owned subsidiary, Triumph,
and also to continue its exploration of mineral properties in British Columbia,
Canada. For this joint venture opportunity, AGA is willing to issue 3,209,000
new investment shares of its common stock.
Section
4
OPERATING
STRUCTURE
4.01. After
consummation of the transactions contemplated by this Agreement,
Xxxxxx will nominate one director to the board of AGA.
4.02 AGA
shall
coordinate the work of establishing the Joint Venture together with Xxxxxx.
Both
parties shall work in good faith and within the terms of the Joint venture
agreement.
4.03 AGA
shall
continue its mineral exploration activities in British Columbia for so
long as its Board of Directors deems the same to be in the
best
interests of AGA, in accordance with its previously announced business
plan.
-2-
Section
5
AGA’S
WARRANTIES
As
an
inducement to, and to obtain the reliance of Triumph and the Triumph
Stockholders, AGA represents, promises and warrants as follows:
5.01 Organization.
AGA
is,
and will be at Closing, a corporation duly organized, validly existing, and
in
good standing under the laws of the State of Nevada and has the corporate power
and is and will be duly authorized, qualified, franchised, and licensed under
all applicable laws, regulations, ordinances, and orders of public authorities
to own all of its properties and assets and to carry on its business in all
material respects as it is now being conducted, and there are no other
jurisdictions in which it is not so qualified in which the character and
location of the assets owned by it or the nature of the material business
transacted by it requires qualification, except where failure to do so would
not
have a material adverse effect on its business, operations, properties, assets
or condition. The execution and delivery of this Agreement does not, and the
consummation of the transactions contemplated by this Agreement in accordance
with the terms hereof will not, violate any provision of AGA’s Articles of
Incorporation or Bylaws, or other agreement to which it is a party or by which
it is bound.
5.02 Approval
of Agreement.
AGA
has
full power, authority, and legal right and has taken, or will take, all action
required by law, its Articles of Incorporation, Bylaws, and otherwise to execute
and deliver this Agreement and to consummate the transactions herein
contemplated. The board of directors of AGA has authorized and approved the
execution, delivery, and performance of this Agreement. AGA shareholders will
not have dissenters rights with respect to any of the transactions contemplated
herein.
5.03 Capitalization.
The
authorized capitalization of AGA consists of 1,000,000,000 shares of common
stock, $0.00001 par value, of which 20,100,000 shares are issued and outstanding
prior to issuance of shares as set forth in this Agreement. There are
100,000,000 authorized shares of preferred stock, $.00001 par value, of which
no
shares of preferred stock are issued and outstanding. There
are, and at the Closing, there will be no outstanding subscriptions, options,
warrants, convertible securities, calls, rights, commitments or agreements
calling for or requiring issuance or transfer, sale or other disposition of
any
shares of capital stock of the Company or calling for or requiring the issuance
of any securities or rights convertible into or exchangeable (including on
a
contingent basis) for shares of capital stock. All of the outstanding shares
of
AGA are duly authorized, validly issued, fully paid and non-assessable
and
not
issued in violation of the preemptive or other right of any person.
There
are no dividends due, to be paid or in arrears with respect to any of the
capital stock of AGA.
5.04 Financial
Statements.
(i)
AGA
has previously delivered to Triumph and the Triumph Stockholders an audited
balance sheet of AGA as of September 30, 2005, and the related statements of
operations, stockholders' equity (deficit), and cash flows for the fiscal year
ended September 30, 2005, including the notes thereto (collectively the
“financial statements”) and the accompanying auditor’s report.
(ii)
The
financial statements of AGA delivered pursuant to Section 5.04(i) have been
prepared in accordance with generally accepted accounting principles
consistently applied throughout the periods involved as explained in the notes
to such financial statements. The AGA financial statements present fairly,
in
all material respects, as of the closing date, the financial position of AGA.
AGA will not have, as of the Closing Date, any liabilities, obligations or
claims against it (absolute or contingent) in excess of $50,000, except as
disclosed in the financial statements and all assets reflected therein present
fairly the assets of AGA in accordance with generally accepted accounting
principles.
(iii)
AGA
has filed or will file as the Closing Date its tax returns required to be filed
for its two most recent fiscal years and will pay all taxes due thereon. All
such returns and reports are accurate and correct in all material respects.
AGA
has no liabilities with respect to the payment of any federal, state, county,
local, or other taxes (including any deficiencies, interest, or penalties)
accrued for or applicable to the period ended on the closing date and all such
dates and years and periods prior thereto and for which AGA may at said date
have been liable in its own right or as transferee of the assets of, or as
successor to, any other corporation or entity, except for taxes accrued but
not
yet due and payable, and to the best knowledge of AGA, no deficiency assessment
or proposed adjustment of any such tax return is pending, proposed or
contemplated. None of such income tax returns has been examined or is currently
being examined by the Internal Revenue Service and no deficiency assessment
or
proposed adjustment of any such return is pending, proposed or contemplated.
AGA
has not made any election pursuant to the provisions of any applicable tax
laws
(other than elections that relate solely to methods of accounting, depreciation,
or amortization) that would have a material adverse affect on AGA, its financial
condition, its business as presently conducted or proposed to be conducted,
or
any of its respective properties or material assets. There are no outstanding
agreements or waivers extending the statutory period of limitation applicable
to
any tax return of AGA.
-3-
5.05 Information.
The
information concerning AGA set forth in this Agreement is complete and accurate
in all respects and does not contain any untrue statement of a fact or omit
to
state a fact required to make the statements made, in light of the circumstances
under which they were made, not misleading.
5.06 Absence
of Certain Changes or Events.
Except
as
set forth in this Agreement or the schedules hereto, since the date of the
most
recent AGA balance sheet described in Section 5.04 and included in the
information referred to in Section 5.06:
(a)
There
has not been: (i) any adverse change in the business, operations, properties,
level of inventory, assets, or condition of AGA; or (ii) any damage,
destruction, or loss to AGA (whether or not covered by insurance) adversely
affecting the business, operations, properties, assets, or conditions of
AGA;
(b)
AGA
has not: (i) amended its Articles of Incorporation or Bylaws; (ii) declared
or
made, or agreed to declare or make, any payment of dividends or distributions
of
any assets of any kind whatsoever to stockholders or purchased or redeemed,
or
agreed to purchase or redeem, any of its capital stock; (iii) waived any rights
of value which in the aggregate are extraordinary or material considering the
business of AGA; (iv) made any material change in its method of management,
operation, or accounting; (v) entered into any other material transactions;
(vi)
made any accrual or arrangement for or payment of bonuses or special
compensation of any kind or any severance or termination pay to any present
or
former officer or employee; (vii) increased the rate of compensation payable
or
to become payable by it to any of its officers or directors or any of its
employees whose monthly compensation exceeds $1,000; or (viii) made any increase
in any profit-sharing, bonus, deferred compensation, insurance, pension,
retirement, or other employee benefit plan, payment, or arrangement made to,
for, or with its officers, directors, or employees;
(c)
AGA
has not: (i) granted or agreed to grant any options, warrants, or other rights
for its stocks, bonds, or other corporate securities calling for the issuance
thereof; (ii) borrowed or agreed to borrow any funds or incurred, or become
subject to, any material obligation or liability (absolute or contingent) except
liabilities incurred in the ordinary course of business; (iii) paid any material
obligation or liability (absolute or contingent) other than current liabilities
reflected in or shown on the most recent AGA balance sheet and current
liabilities incurred since that date in the ordinary course of business; (iv)
sold or transferred, or agreed to sell or transfer, any of its material assets,
properties, or rights (except assets, properties, or rights not used or useful
in its business which, in the aggregate have a value of less than $5,000 or
canceled, or agreed to cancel, any debts or claims (except debts and claims
which in the aggregate are of a value of less than $5,000); (v) made or
permitted any amendment or termination of any contract, agreement, or license
to
which it is a party if such amendment or termination is material, considering
the business of AGA ; or (vi) issued, delivered, or agreed to issue or deliver
any stock, bonds, or other corporate securities including debentures (whether
authorized and unissued or held as treasury stock); and
(d)
AGA
has not become subject to any law, order, investigation, inquiry, grievance
or
regulation which materially and adversely affects, or in the future would be
reasonably expected to adversely affect, the business, operations, properties,
assets, or condition of AGA.
5.07 Litigation
and Proceedings.
There
are
no material actions, suits, claims, or administrative or other proceedings
pending, asserted or unasserted, threatened by or against AGA or adversely
affecting AGA or its properties, at law or in equity, before any court or other
governmental agency or instrumentality, domestic or foreign, or before any
arbitrator of any kind. AGA is not in default of any judgment, order, writ,
injunction, decree, award, rule, or regulation of any court, arbitrator, or
governmental agency or instrumentality.
5.08 Compliance
with Laws.
AGA
and
its officers and directors have complied with all federal, state, county and
local laws, ordinances, regulations, inspections, orders, judgments,
injunctions, awards or decrees applicable to it or its business, including
federal and state securities laws. AGA and its officers, directors and
beneficial owners are not under investigation by any federal, state, county
or
local authorities, including the Commission. AGA and its officers, directors
and
beneficial owners have not received notification from any federal, state,
county, or local authorities, including the Commission, that it or any of its
officers or directors will be the subject of a legal action or that the
Commission’s Division of Enforcement will be recommending to the Commission that
a Federal District Court or Commission administrative action or any other action
be filed or taken against AGA and its officers, directors and beneficial
owners.
5.09 Securities
and Exchange Commission Compliance of AGA. AGA has a class of securities
registered pursuant to Section 12 of the Securities Exchange Act of 1934, as
amended (“Exchange Act”) and has complied in all respects with Rule 14(a) and
14(c) of the Exchange Act, and with Sections 13 and 15(d) of the Exchange Act,
and AGA, its management and beneficial owners have complied in all respects
with
Sections 13(d) and 16(a) of the Exchange Act.
-4-
5.10 Material
Contract Defaults.
AGA
is
not in default under the terms of any outstanding contract, agreement, lease,
or
other commitment, and there is no event of default or other event which, with
notice or lapse of time or both, would constitute a default in any respect
under
any such contract, agreement, lease, or other commitment.
5.11 No
Conflict with Other Instruments.
The
execution of this Agreement and the consummation of the transactions
contemplated by this Agreement will not result in the breach of any term or
provision of, or constitute an event of default under, any material indenture,
mortgage, deed of trust, or other material contract, agreement, or instrument
to
which AGA is a party or to which any of its properties or operations are
subject.
5.12 Subsidiary.
AGA
does
not and has never owned, beneficially or of record, any equity securities in
any
other entity.
5.13 Quotation
on the OTC Bulletin Board. AGA’s Common Stock is quoted on the OTC Bulletin
Board under the symbol “AGAO” and AGA will retain such quotation on the OTC
Bulletin Board until the Closing of the transactions contemplated
herein.
5.14 Delivery
of Shareholder List. Upon execution of this agreement, AGA shall deliver a
certified shareholder list from its transfer agent setting forth the name of
each AGA shareholder, the number of shares held by each, dated as of a date
within five days of closing and whether such shares held are restricted
securities. In connection therewith, AGA represents that none of its
shareholders are nominees for any other person.
5.15
Liabilities, Indebtedness, etc.
As
of the
date of this Agreement, AGA shall not have any liabilities or indebtedness
as
such terms are defined by Generally Accepted Accounting Principles except for
those set forth on the audited balance sheet contained in its Annual Report
on
Form 10-KSB for the fiscal year ended September 30, 2005.
Section
6
-5-
TRIUMPH’S
WARRANTIES
As
an
inducement to, and to obtain the reliance of AGA, Triumph and the Triumph
Stockholders, jointly and severally, represent and warrant as
follows:
6.01 Organization.
Triumph
is, and will be on the Closing Date, a corporation duly organized, validly
existing, and in good standing under the laws of the British Virgin Islands,
and
has the corporate power and is and will be duly authorized, qualified,
franchised, and licensed under all applicable laws, regulations, ordinances,
and
orders of public authorities to own all of its properties and assets and to
carry on its business in all material respects as it is now being conducted,
and
there are no other jurisdictions in which it is not so qualified in which the
character and location of the assets owned by it or the nature of the material
business transacted by it requires qualification, except where failure to do
so
would not have a material adverse effect on its business, operations,
properties, assets or condition of Triumph. The execution and delivery of this
Agreement does not, and the consummation of the transactions contemplated by
this Agreement in accordance with the terms hereof will not, violate any
provision of Triumph’s Articles of Association, Memorandum of Organization, or
similar documents (being referred to herein as the “Articles of Incorporation
and By-Laws”), or other material agreement to which it is a party or by which it
is bound.
6.02 Approval
of Agreement.
Triumph
has full power, authority, and legal right and has taken, or will take, all
action required by law, its Articles of Incorporation, Bylaws, or otherwise
to
execute and deliver this Agreement and to consummate the transactions herein
contemplated. The board of directors of Triumph has authorized and approved
the
execution, delivery, and performance of this Agreement and the transactions
contemplated hereby, subject to the approval of the Triumph Stockholders and
compliance with state and federal corporate and securities laws.
6.03 Capitalization.
The
issued and outstanding shares of common stock of Triumph consist of four (4)
shares, US$1.00 par value, held by the shareholders listed on the signature
page
hereof. All issued and outstanding shares of Triumph are validly issued, fully
paid, and non-assessable and not issued in violation of the preemptive or other
right of any person. There are no dividends or other amounts due or payable
with
respect to any of the shares of capital stock of Triumph.
6.04 Financial
Statements.
(a)
Triumph has previously delivered an unaudited balance sheet of Triumph as of
December 31, 2005 and related statements of operations, cash flows, and
stockholders' equity for the period ended December 31, 2005 including the notes
thereto.
(b)
The
unaudited financial statements delivered pursuant to Section 6.04(a) have been
prepared in accordance with generally accepted accounting principles
consistently applied throughout the periods
involved.
The financial statements of Triumph present fairly, as of their respective
dates, the financial position of Triumph. Triumph did not have, as of the date
of any such balance sheets, except as and to the extent reflected or reserved
against therein, any liabilities or obligations (absolute or contingent) which
should be reflected in any financial statements or the notes thereto prepared
in
accordance with generally accepted accounting principles, and all assets
reflected therein present fairly the assets of Triumph, in accordance with
generally accepted accounting principles. The statements of revenue and expenses
and cash flows present fairly the financial position and result of operations
of
Triumph as of their respective dates and for the respective periods covered
thereby.
6.05 Outstanding
Warrants and Options.
Triumph
has no issued warrants or options, calls, or commitments of any nature relating
to the authorized and unissued Triumph common stock, except as previously
disclosed in writing to AGA.
6.06 Information.
The
information concerning Triumph set forth in this Agreement and in the schedules
delivered by Triumph pursuant hereto is complete and accurate in all material
respects and does not contain any untrue statement of a material fact or omit
to
state a material fact required to make the statements made, in light of the
circumstances under which they were made, not misleading.
-6-
6.07 Absence
of Certain Changes or Events.
Except
as
set forth in this Agreement, since the date of the most recent Triumph balance
sheet described in Section 6.04 and included in the information referred to
in
Section 6.06:
(a)
There
has not been: (i) any material adverse change in the business, operations,
properties, level of inventory, assets, or condition of Triumph; or (ii) any
damage, destruction, or loss to Triumph materially and adversely affecting
the
business, operations, properties, assets, or conditions of Triumph;
(b)
Triumph has not: (i) amended its Articles of Incorporation or Bylaws; (ii)
declared or made, or agreed to declare or make, any payment of dividends or
distributions of any assets of any kind whatsoever to stockholders or purchased
or redeemed, or agreed to purchase or redeem, any of its capital stock; (iii)
waived any rights of value which in the aggregate are extraordinary and material
considering the business of Triumph; (iv) made any material change in its method
of accounting; (v) entered into any other material transactions other than
those
contemplated by this Agreement; (vi) made any material accrual or material
arrangement for or payment of bonuses or special compensation of any kind or
any
severance or termination pay to any present or former officer or employee;
or
(vii) made any material increase in any profit-sharing, bonus, deferred
compensation, insurance, pension, retirement, or other employee benefit plan,
payment, or arrangement made to, for, or with their officers, directors, or
employees;
(c)
Triumph has not (i) granted or agreed to grant any options, warrants, or other
rights for its stocks, bonds, or other corporate securities calling for the
issuance thereof, except as previously disclosed in writing to AGA; (ii)
borrowed or agreed to borrow any funds or incurred, or become subject to, any
material obligation or liability (absolute or contingent) except liabilities
incurred in the ordinary course of business; (iii) paid any material obligation
or liability (absolute or contingent) other than current liabilities reflected
in or shown on the most recent Triumph balance sheet and current liabilities
incurred since that date in the ordinary course of business; (iv) sold or
transferred, or agreed to sell or transfer, any of its material assets,
properties, or rights, or agreed to cancel any material debts or claims; (v)
made or permitted any amendment or termination of any contract, agreement,
or
license to which it is a party if such amendment or termination is material,
considering the business of Triumph; or (vi) issued, delivered, or agreed to
issue or deliver any stock, bonds, or other corporate securities including
debentures (whether authorized and unissued or held as treasury stock);
and
(d)
To
the best knowledge of Triumph, it has not become subject to any law or
regulation which materially and adversely affects, or in the future would be
reasonably expected to adversely affect, the business, operations, properties,
assets, or condition of Triumph.
6.08 Litigation
and Proceedings.
There
are
no material actions, suits, or proceedings pending or, to the knowledge of
Triumph, threatened by or against Triumph or adversely affecting Triumph, at
law
or in equity, before any court or other governmental agency or instrumentality,
domestic or foreign, or before any arbitrator of any kind. Triumph does not
have
any knowledge of any default on its part with respect to any judgment, order,
writ, injunction, decree, award, rule, or regulation of any court, arbitrator,
or governmental agency or instrumentality.
6.09 Material
Contract Defaults.
Triumph
is not in default in any material respect under the terms of any outstanding
contract, agreement, lease, or other commitment which is material to the
business, operations, properties, assets, or condition of Triumph, and there
is
no event of default or other event which, with notice or lapse of time or both,
would constitute a default in any material respect under any such contract,
agreement, lease, or other commitment in respect of which Triumph has not taken
adequate steps to prevent such a default from occurring.
6.10 No
Conflict with Other Instruments.
The
execution of this Agreement and the consummation of the transactions
contemplated by this Agreement will not result in the breach of any term or
provision of, or constitute an event of default under, any material indenture,
mortgage, deed of trust or other material contract, agreement, or instrument
to
which Triumph is a party or to which any of its properties or operations are
subject.
6.11 Governmental
Authorizations.
Triumph
has all licenses, franchises, permits, and other governmental authorizations
that are legally required to enable it to conduct its business in all material
respects as conducted on the date of this Agreement. Except for compliance
with
federal and state law, as hereinafter provided, no authorization, approval,
consent, or order of, or registration, declaration, or filing with, any court
or
other governmental body is required in connection with the execution and
delivery by Triumph of this Agreement and the consummation by Triumph of the
transactions contemplated hereby.
-7-
6.12 Compliance
with Laws and Regulations.
Triumph
has complied with all applicable statutes and regulations of any federal, state,
or other governmental entity or agency thereof having jurisdiction over Triumph,
except to the extent that noncompliance would not materially and adversely
affect the business, operations, properties, assets, or condition of Triumph
or
except to the extent that noncompliance would not result in the occurrence
of
any material liability for Triumph. To the best knowledge of Triumph, the
consummation of this transaction will comply with all applicable statutes and
regulations, subject to the preparation and filing of any forms required by
state and federal security laws.
6.13 Subsidiaries.
Triumph
does not own beneficially or of record equity securities in any subsidiary
that
has not been previously disclosed to AGA.
SECTION
7
CONDITIONS
PRECEDENT TO OBLIGATIONS OF TRIUMPH
The
obligations of Triumph under this Agreement are subject to the satisfaction
or
waiver, at or before the Closing Date, of the following conditions:
7.01 Accuracy
of Representations.
The
representations and warranties made by AGA in this Agreement were true when
made
and shall be true at the Closing Date with the same force and effect as if
such
representations and warranties were made at and as of the Closing Date, and
AGA
shall have performed or complied with all covenants and conditions required
by
this Agreement to be performed or complied with by AGA prior to or at the
Closing. Triumph shall be furnished with certificates, signed by duly authorized
officers of AGA and dated the Closing Date, to the foregoing
effect.
7.02 Officer's
Certificates.
Triumph
shall have been furnished with certificates dated the Closing Date and signed
by
the duly authorized Chief Executive Officer of AGA to the effect that to such
officer's best knowledge no litigation, proceeding, investigation, or inquiry
is
pending or, to the best knowledge of AGA threatened, which might result in
an
action to enjoin or prevent the consummation of the transactions contemplated
by
this Agreement. Furthermore, based on certificates of good standing,
representations of government agencies, and AGA’s own documents and information,
the certificate shall represent, to the best knowledge of the officer,
that:
(a)
This
Agreement has been duly approved by AGA’s board of directors and has been duly
executed and delivered in the name and on behalf of AGA by its duly authorized
officers pursuant to, and in compliance with, authority granted by the board
of
directors of AGA pursuant to a majority consent;
(b)
There
have been no adverse changes in AGA up to and including the date of the
certificate;
(c)
All
conditions required by this Agreement have been met, satisfied, or performed
by
AGA;
(d)
All
authorizations, consents, approvals, registrations, reports, schedules and/or
filings with any governmental body including the Securities and Exchange
Commission, agency, or court have been obtained or will be obtained by AGA
and
all of the documents obtained by AGA are in full force and effect or, if not
required to have been obtained, will be in full force and effect by such time
as
may be required; and
(e)
There
is no claim action, suit, proceeding, inquiry, or investigation at law or in
equity by any public board or body pending or threatened against AGA, wherein
an
unfavorable decision, ruling, or finding could have an adverse effect on the
financial condition of AGA, the operation of AGA, or the merger contemplated
herein, or any agreement or instrument by which AGA is bound or in any way
contests the existence of AGA.
-8-
7.03 No
Material Adverse Change.
Prior
to
the Closing Date, there shall not have occurred any adverse change in the
financial condition, business, or operations of AGA, nor shall any event have
occurred which, with the lapse of time or the giving of notice, may cause or
create any adverse change in the financial condition, business, or operations
of
AGA.
7.04 Good
Standing.
Triumph
shall have received a certificate of good standing from the appropriate
authority, dated as of a date reasonably proximate to the Closing Date,
certifying that AGA is in good standing as a corporation in the State of
Nevada.
7.05 Other
Items.
Triumph
shall have received from AGA such other documents, legal opinions, certificates,
or instruments relating to the transactions contemplated hereby as Triumph
may
request.
7.06 Completion
of Due Diligence Investigation.
Triumph
shall have completed its due diligence investigation of AGA and its
subsidiaries, and such investigation shall be satisfactory to Triumph in all
respects.
SECTION
8
CONDITIONS
PRECEDENT TO OBLIGATIONS OF AGA
The
obligations of AGA under this Agreement are subject to the satisfaction, at
or
before the Closing Date, of the following conditions:
8.01 Accuracy
of Representations.
The
representations and warranties made by Triumph and the Triumph Stockholders
in
this Agreement were true when made and shall be true at the Closing Date with
the same force and affect as if such representations and warranties were made
at
and as of the Closing Date (except for changes therein permitted by this
Agreement), and Triumph shall have performed or complied with all covenants
and
conditions required by this Agreement to be performed or complied with by
Triumph prior to or at the Closing. AGA shall be furnished with a certificate,
signed by a duly authorized officer of Triumph and dated the Closing Date,
to
the foregoing effect.
8.02 Officer's
Certificates.
AGA
shall
have been furnished with certificates dated the Closing Date and signed by
the
duly authorized Chief Operating Officer of Triumph to the effect that no
litigation, proceeding, investigation, or inquiry is pending or, to the best
knowledge of Triumph, threatened, which might result in an action to enjoin
or
prevent the consummation of the transactions contemplated by this Agreement.
Furthermore, based on certificates of good standing, representations of
government agencies and Triumph’s own documents, the certificate shall
represent, to the best knowledge of the officer, that:
(a)
This
agreement has been duly approved by Triumph’s board of directors and
stockholders and has been duly executed and delivered in the name and on behalf
of Triumph by its duly authorized officers pursuant to, and in compliance with,
authority granted by the board of directors of Triumph pursuant to a unanimous
consent of its board of directors and a majority vote of its
stockholders;
(b)
Except as provided or permitted herein, there have been no material adverse
changes in Triumph up to and including the date of the certificate;
(c)
All
material conditions required by this Agreement have been met, satisfied, or
performed by Triumph;
(d)
All
authorizations, consents, approvals, registrations, and/or filings with any
governmental body, agency, or court required in connection with the execution
and delivery of the documents by Triumph have been obtained and are in full
force and effect or, if not required to have been obtained will be in full
force
and effect by such time as may be required; and
-9-
(e)
There
is no material action, suit, proceeding, inquiry, or investigation at law or
in
equity by any public board or body pending or threatened against Triumph,
wherein an unfavorable decision, ruling, or finding would have a material
adverse affect on the financial condition of Triumph, the operation of Triumph,
or the merger contemplated herein, or any material agreement or instrument
by
which Triumph is bound or would in any way contest the existence of
Triumph.
8.03 No
Material Adverse Change.
Prior
to
the Closing Date, there shall not have occurred any material adverse change
in
the financial condition, business or operations of Triumph, nor shall any event
have occurred which, with the lapse of time or the giving of notice, may cause
or create any material adverse change in the financial condition, business,
or
operations of Triumph.
8.04
Completion
of Due Diligence Investigation.
AGA
shall
have completed its due diligence investigation of Triumph and its subsidiaries,
and such investigation shall be satisfactory to AGA in all material
respects.
8.05 Good
Standing.
AGA
shall
have received a certificate of good standing (or its local equivalent) from
the
appropriate authority, dated as of a date reasonably proximate to the Closing
Date, certifying that Triumph is in good standing as a British Virgin Islands
company.
8.06
Funding of the Joint Venture
Triumph
shall have funded the registered capital of the Joint Venture in an amount
equal
to US$600,000. In the alternative, AGA may decide to waive this condition
precedent and close, and elect not to deliver the share certificates for the
3,209,000 new investment shares as set forth in section 3 hereof.
8.07 Other
Items.
AGA
shall
have received such further documents, certificates, or instruments relating
to
the transactions contemplated hereby as AGA may reasonably request.
Section
9
TANGDE’S
REPRESENTATIONS AND WARRANTIES
9.01
Xxxxxx represents and warrants that it is a validly existing company organized
under the law of the People’s Republic of China.
9.02 Xxxxxx
represents and warrants that it has legally operated its business
in the past in the Peoples’ Republic of China in compliance with all
laws,
rules, regulations and policies.
9.03
Xxxxxx
represents and warrants that there are no legal issues under Chinese
law that will negatively affect Xxxxxx and/or the Joint
Venture
that
is
to be formed pursuant to the Joint Venture agreement, and the Joint Venture
complies with all laws, rules, regulations and policies.
9.04 Xxxxxx
represents and warrants that the Joint Venture agreement may be assigned
as a matter of law and is legally assignable under the laws
of
the British Virgin Islands and the Peoples’ Republic of China, and
further represents and warrants that upon assignment by Triumph to AGA,
the
Joint Venture agreement will be
a
legally enforceable obligation of
each
of AGA and Xxxxxx, in the event of such assignment.
-10-
Section
10
SPECIAL
COVENANTS
10.01
Operation only in the Ordinary Course of Business.
AGA
and
Triumph each agreement that between the signing of this Agreement and the
closing, each will operate their respective businesses only in the ordinary
course of business.
10.02 Access
to
Properties and Records.
Until
the
Closing Date, Triumph and AGA will afford to the other party's officers and
authorized representatives and attorneys full access to the properties, books,
and records of the other party in order that each party may have full
opportunity to make such reasonable investigation as it shall desire to make
of
the affairs of Triumph or AGA and will furnish the other party with such
additional financial and other information as to the business and properties
of
Triumph or AGA as each party shall from time to time reasonably
request.
Section
11
ISSUANCE
OF STOCK
1.
AGA
and Triumph understand and agree that the consummation of this Agreement,
including the issuance of stock to the Triumph Stockholders as contemplated
hereby, constitutes the offer and sale of securities under the Securities Act
and applicable state statutes. AGA and Triumph agree that such transactions
shall be consummated in reliance on exemptions from the registration
requirements of such statutes that depend, among other items, on the
circumstances under which such securities are acquired.
(a)
In
order to provide documentation for reliance upon exemptions from the
registration requirements for such transactions, the signing of this Agreement
and the delivery of appropriate representations shall constitute the Parties
acceptance of, and concurrence in, the following representations and
warranties:
(i)
The
Triumph Stockholders have received and read the Agreement and understand the
risks related to the consummation of the transactions herein
contemplated;
(ii)
The
Triumph Stockholders have such knowledge and experience in business and
financial matters that they are capable of evaluating AGA’s
business;
(iii)
The
Triumph Stockholders have been provided with copies of all materials and
information requested by them or their representatives, including any
information requested to verify any information furnished (to the extent such
information is available or can be obtained without unreasonable effort or
expense), and the Triumph Stockholders have been provided the opportunity for
direct communication regarding the transactions contemplated
hereby;
(iv)
All
information which the Triumph Stockholders have provided to AGA or its
representatives concerning their suitability and intent to hold the common
stock
in AGA following the transactions contemplated hereby is complete, accurate,
and
correct;
(v)
The
Triumph Stockholders understand that the common stock has not been registered
under the Securities Act, but is being acquired by reason of specific exemptions
under the Securities Act as well as under certain state statutes for
transactions not involving any public offering; and
(vi)
The
Triumph Stockholders acknowledge that the shares of the common stock must be
held and may not be sold, transferred, or otherwise disposed of for value unless
they are subsequently registered under the Securities Act or an exemption from
such registration is available. The certificates representing the shares shall
bear the following restrictive legend:
THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") AND ARE "RESTRICTED
SECURITIES" WITHIN THE MEANING OF RULE 144 PROMULGATED UNDER THE SECURITIES
ACT.
THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD OR
TRANSFERRED WITHOUT COMPLYING WITH RULE 144 IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION OR OTHER COMPLIANCE UNDER THE SECURITIES ACT.
(b)
In
connection with the transaction contemplated by this Agreement, AGA shall file,
with its counsel, such notices, applications, reports, or other instruments
as
may be deemed necessary or appropriate in an effort to document reliance on
such
exemptions, and the appropriate regulatory authority in the states where the
Triumph Stockholders reside unless an exemption requiring no filing is available
in such jurisdictions, all to the extent and in the manner as may be deemed
by
such Parties to be appropriate.
-11-
(c)
In
order to more fully document reliance on the exemptions as provided herein,
the
Triumph Stockholders shall execute and deliver to AGA, at or prior to the
Closing, such further letters of representation, acknowledgment, suitability,
or
the like as AGA and its counsel may request in connection with the transactions
contemplated herein, including but not limited to reliance on exemptions from
registration under applicable securities laws.
(d)
(i)The Triumph Stockholders acknowledge that neither the Securities and Exchange
Commission nor the securities commission of any state or other federal agency
has made any determination as to the merits of acquiring the common stock and
that this transaction involves certain risks;
(ii)
The
Triumph Stockholders have read this Agreement and understand the risks related
to the consummation of the transactions herein contemplated;
(iii)
The
Triumph Stockholders and their representatives have such knowledge and
experience in business and financial matters that they are capable of evaluating
the merits of an investment in the common stock;
(iv)
The
Triumph Stockholders and their representatives have been provided with copies
of
all materials and information requested by them or their representatives,
including any information requested to verify any information furnished (to
the
extent such information is available or can be obtained without unreasonable
effort or expense), and the Parties have been provided the opportunity for
direct communication regarding the transactions contemplated
hereby;
(v)
All
information which the Triumph Stockholders have provided to AGA concerning
their
suitability and the transactions contemplated hereby is complete, accurate,
and
correct;
(vi)
The
Triumph Stockholders understand and acknowledge that the shares of AGA to be
acquired have not been registered under the Securities Act of 1933 and are
being
offered and sold in reliance upon exemptions from registration.
(vii)In
the event that there are more offerees who will receive AGA Stock in the merger
than 35 offerees who will rely on an exemption from registration under Section
4(2) of the Securities Act, such additional offerees intend to rely on an
exemption from registration under Section 4(6) under the Securities Act.
Accordingly, such additional offerees represent and warrant that they are
“accredited investors” within the meaning of Rule 501(a) of Regulation D under
the Securities Act.
SECTION
12
INDEMNIFICATION
12.01 Indemnification
by Triumph and the Triumph Stockholders.
(a) Triumph
will indemnify and hold harmless AGA and its directors and officers, and each
person, if any, who controls AGA within the meaning of the Securities Act from
and against any and all losses, claims, damages, expenses, liabilities, or
other
actions to which any of them may become subject under applicable law (including
the Securities Act and the Securities Exchange Act) and will reimburse them
for
any legal or other expenses reasonably incurred by them in connection with
investigating or defending any claims or actions, whether or not resulting
in
liability, insofar as such losses, claims, damages, expenses, liabilities,
or
actions arise out of or are based upon: (i) any untrue statement or alleged
untrue statement of a material fact contained in any of the representations,
covenants and warranties set forth herein; or (ii) the breach of any covenant
or
agreement set forth herein. The indemnity set forth herein shall survive the
consummation of the transactions herein for a period of one year.
(b) The
Triumph Stockholders will indemnify and hold harmless AGA, AGA’s directors and
officers, and each person, if any, who controls AGA within the meaning of the
Securities Act from and against any and all losses, claims, damages, expenses,
liabilities, or other actions to which any of them may become subject under
applicable law (including the Securities Act and the Securities Exchange Act)
and will reimburse them for any legal or other expenses reasonably incurred
by
them in connection with investigating or defending any claims or actions,
whether or not resulting in liability, insofar as such losses, claims, damages,
expenses, liabilities, or actions arise out of or are based upon: (i) any untrue
statement or alleged untrue statement of a material fact contained in any of
the
representations, covenants and warranties set forth herein; or (ii) the breach
of any covenant or agreement set forth herein. The indemnity set forth herein
shall survive the consummation of the transactions herein for a period of one
year.
12.02
Indemnification
by AGA.
AGA
will
indemnify and hold harmless Triumph, the Triumph Stockholders, Triumph’s
directors and officers, and each person, if any, who controls Triumph within
the
meaning of the Securities Act from and against any and all losses, claims,
damages, expenses, liabilities, or actions to which any of them may become
subject under applicable law (including the Securities Act and the Securities
Exchange Act) and will reimburse them for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any claims or
actions, whether or not resulting in liability, insofar as such losses, claims,
damages, expenses, liabilities, or actions arise out of or are based upon:
(i)
any untrue statement or alleged untrue statement of a material fact contained
in
any of the representations, covenants and warranties set forth herein; or (ii)
the breach of any covenant or agreement set forth herein. The indemnity set
forth herein shall survive the consummation of the transactions herein for
a
period of one year.
12.03 Indemnification
by Xxxxxx.
Xxxxxx
will indemnify and hold harmless AGA, AGA’s directors and officers, and each
person, if any, who controls AGA within the meaning of the Securities Act from
and against any and all losses, claims, damages, expenses, liabilities, or
actions to which any of them may become subject under applicable law (including
the Securities Act and the Securities Exchange Act) and will reimburse them
for
any legal or other expenses reasonably incurred by them in connection with
investigating or defending any claims or actions, whether or not resulting
in
liability, insofar as such losses, claims, damages, expenses, liabilities,
or
actions arise out of or are based upon: (i) any untrue statement or alleged
untrue statement of a material fact contained in any of the representations,
covenants and warranties set forth herein; or (ii) the breach of any covenant
or
agreement set forth herein. The indemnity set forth herein shall survive the
consummation of the transactions herein for a period of one year.
-12-
Section
13
TANGDE’S
AGREEMENT ON EXCHANGE ACT COMPLIANCE
After
the
completion of this Agreement, and after the formation of the Joint Venture,
Xxxxxx covenants and agrees that it will use its best efforts to cooperate
with
and assist AGA to comply with the rules and regulations applicable to a company
registered under the Securities Exchange Act of 1934, as amended, and will
use
its best efforts to make timely disclosures as required by the Exchange Act
and
prepare and deliver year end audits of the Joint Venture for inclusion in the
annual reports of AGA under the Exchange Act.
Section
14
EFFECTIVE
DATE
The
effective date of this Agreement is June 14, 2006.
Section
15
FORM
OF SIGNATORIES
All
signatories of this Agreement warrant that they have the authority to represent
and sign this Agreement. This Agreement is effective upon execution.
The
parties hereto agree to accept a facsimile transmission copy of their respective
actual signatures as evidence of their actual signatures to this Agreement
and
any amendment or modification of this Agreement; provided, however, that each
party who produces a facsimile signature agrees, by the express terms hereof,
to
place, promptly after transmission of his or her signature by fax, a true and
correct original copy of his or her signature in overnight mail to the address
of the other party.
Section
16
FUTURE
DOCUMENTS AND FURTHER ASSURANCES
AGA,
Triumph, Xxxxxx and the Triumph Stockholders agree to sign and execute all
documents which may be necessary in the future to consummate the transactions
contemplated by this Agreement, and give and make further assurances to each
other that they will do all things necessary and use their best efforts to
consummate the transactions contemplated by this Agreement.
-13-
Section
17
GENERAL
(1) This
Agreement shall be governed by and construed and enforced in accordance with
the
laws of British Columbia, Canada.
(2) This
Agreement sets forth the entire agreement and understanding of the parties
in
respect to the matters contained herein and supersedes all prior agreements,
arrangements and understandings relating thereto.
(3) All
of
the terms and conditions of this Agreement shall be binding upon, and inure
to
the benefit of and be enforce-able by, the parties hereto.
(4) This
Agreement may be amended, modified, superseded or canceled, and any of the
terms
or conditions hereof may be waived, only by a written instrument executed by
each party hereto or, in the case of a waiver, by the party waiving compliance.
The failure of any party at any time or times to require performance of any
provision hereof shall in no manner affect its right at a later time to enforce
the same. No waiver of any party of any condition, or of the breach of any
term
contained in this Agree-ment, whether by conduct or otherwise, in any one or
more instances shall be deemed to be or construed as a further or continuing
waiver of any such condition or breach or a waiver of any other condition or
of
the breach of any other term of this Agreement. No party may assign any rights,
duties or obligations hereunder unless all other parties have given their prior
written consent.
(5) If
any
provision included in this Agreement proves to be invalid or unenforceable,
it
shall not affect the validity of the remaining provisions.
(6) This
Agreement and any amendment or modification of this Agreement may be executed
in
several counterparts or by separate instruments and all of such counterparts
and
instruments shall constitute one agreement, binding on all of the parties
hereto.
IN
WITNESS WHEREOF, the parties have duly executed this Agreement as of the date
first set forth above.
Party A | ||
AGA RESOURCES, INC. | ||
By:
|
/s/ XxxxXxxx Xxxxx | Date: June 14, 2006 |
XxxxXxxx Xxxxx | ||
President | ||
Party B: | ||
TRIUMPH RESEARCH LIMITED | ||
By:
|
/s/ JianDe Lu | Date: June 14, 2006 |
JianDe Lu | ||
|
President | |
Party C: | ||
BEIJING XXXXXX INTERNATIONAL FILM AND CULTURE CO. LTD. | ||
By:
|
/s/ Xxxxxxxxx Xx | Date: June 14, 2006 |
Xxxxxxxxx Xx | ||
General Manager | ||
PARTIES D: | TRIUMPH STOCKHOLDERS: | |
JIANDE LU | ||
/s/ JianDe Lu | Date: June 14, 2006 | |
(In His Individual Capacity) | ||
CHUANFU PENG | ||
/s/ ChuanFu Peng | Date: June 14, 2006 | |
(In His Individual Capacity) | ||
HAO BAN | ||
/s/ Hao Ban | Date: June 14, 2006 | |
(In His Individual Capacity) | ||
TAO NIU | ||
/s/ Tao Niu | Date: June 14, 2006 | |
(In His Individual Capacity) |
-14-
EXHIBIT
A
Joint
Venture Agreement
Party
A:
Triumph Research Limited,
A
B.V. I.
(British Virgin Island) company with the registered office at Room
B,
19th
Floor,
Tung Hip Commercial Xxxxxxxx, 000-000 Xxx Xxxxx Xxxx, Xxxxxxx, Xxxx
Xxxx.
Party
B:
Beijing Xxxxxx International Film Culture Co. Ltd
A
Chinese
company with the registered office at Xx.00, Xx Xx Xxxx, Xxxxxxxx Xxxxxxxx,
Xxxxxxx, Peoples’ Republic of China.
Whereas:
Party
A
and Party B reached an agreement for mutual benefit and joint development,
both
parties agree as follows:
1.
Set up
a Joint Venture
1.1
A
Joint Venture (JV) will be formed in Beijing China;
1.2
Registered Capital of the JV will be 10 million RMB, of which, 5.1 million
RMB
of registered capital will be invested from Party A, and the rest will be
invested from Party B;
1.3
Party
A will own 51% of the JV, and Party B will own 49%;
1.4
Registration Time: JV will be registered within 10 days after signing this
contract. Both parties have one person to carry out this plan and will use
their
best efforts to finish the registration in 30 days.
2.
The
operating principles of the JV
2.1
The
JV
will mainly invest in Film and TV related program, Equipment Leasing, Agency
Activities, Advertisement and other related businesses in the media and
entertainment industry.
2.2
The
board of the JV is composed of 5 members. Party A has right to appoint the
chairman of the board and 2 other board members; Party B has right to appoint
the vice chairman of the board and 1 board member;
2.3
The
General Manager would submit a financial plan about investment and operation
of
the JV to the board for approval. The General Manager is responsible for the
general operations of the JV on a day to day basis. Party B has the right to
appoint the General Manager and is responsible for the overall operation of
the
JV for the first 2 years. The board will make the decision on the investment
and
plan of operations. The General Manager will carry out the plan;
2.4
All
intellectual property right generated or possessed from the operation of the
JV
belongs to the JV;
2.5
Without the prior written consent of other stockholders, the stockholder of
the
JV are prohibited from transferring their shares;
-15-
3.
Rights
and Obligations
3.1
Rights and Obligations of Party A
3.1.1
Party A will invest 5.1 million RMB as registered capital of the JV. Party
A
will own 51% of the JV;
3.1.2
The
board of the JV will have 5 members. Party A has the right to appoint the
Chairman of the Board and 2 other directors;
3.1.3.
Party A has the right to appoint the CFO (Chief Financial Officer) of the
JV;
3.1.4.
Party A
will raise 40 million RMB for the development of the JV according to its
business plan within 6 months using its best effort. If Party A can not raise
these funds in 6 months, Party
A
will pay Party B RMB 100,000 as compensation.
3.1.5.
If
the JV
meets the internal profit projections within a 2 year period of time, Party
A
has the option to acquire the 49% ownership of the JV from Party B, if such
acquisition is permissible under the applicable foreign investment laws.If
Party
A has completed the acquisition, Party B hereby represents and warranties that
the then current management team will remain in the JV for no less than 2 more
years. Furthermore, Party B will not do business in a similar field as the
JV
for no less than 5 years from the date of acquisition;
3.1.6.
If Party
B breaches the term in 3.1.5. of this Agreement, Party A has the right to
request Party B for a compensation no less than the total investment amount
received by the JV;
3.1.7.
Party A requests the JV and Party B to cooperate with the auditing of the JV.
The auditing will be based on GAAP (General Accepted Accounting Principals)
and/or any other standard that is decided by Party A;
3.2.
Rights and Obligations of Party B
3.2.1
Party B
will invest 4.9 million RMB as registered capital of the JV. Party B will own
49% of the JV;
3.2.2
The
board of the JV will have 5 members. Party B has the right to appoint the Vice
Chairman of the Board and 1 other director;
3.2.3.
Party B is responsible for the operation of the JV. Party B has the right to
appoint the General Manager of the XX.Xxxxx B would be in charge of the day
to
day operations of the JV.
3.2.4.
Party
B
will ensure that the JV will carry out business according to the related rules
and regulations in China. If the JV violates any Chinese laws, rules,
regulations and policies, Party B will bear all the losses caused to the JV
by
virtue of said violation;
3.2.5.
By
the end of the second year of operation, if the JV fails to reach the profit
projection, but has no loss, Party B has the right to appoint the General
Manager for one more year. If the JV suffers a loss by the end of the second
year of operations, Party A has the right to appoint General
Manager;
3.2.6.
If
the
JV
fails to
meet the financial projection in 2 years, Party B will pay Party A RMB 100,000
as compensation.
-16-
4.
Breach
or Default
4.1
Party
A will be, and is, in default of this Agreement if for any reason:
(1) |
Party
A breaches or fails to comply with this
Agreement;
|
(2) |
Party
A undertakes any action inconsistent with this
Agreement;
|
4.2
Party
B will be, and is, in default of this Agreement if for any reason:
(1) | Party B breaches or fails to comply with this Agreement; |
(2) |
Party
B undertakes any action inconsistent with this
Agreement;
|
5
Other
matters
5.1
The
two parties should negotiate in good faith to settle problems not covered in
this Agreement;
5.2
The
two parties should negotiate in good faith to settle problems caused by force
majeure.
6.
Term
of Agreement
This
Agreement has a term of Twenty (20) years from the signing of this
Agreement.
7.
General
(1) All
disputes arouse from this Agreement should be settled through friendly
negotiation rather than litigation.
If
the
problems could not be settled through negotiation, it should be submitted to
China
International Economic and Trade Arbitration Commission. And the arbitration
decision shall be final and binding on both parties. The expenses for
arbitration shall be borne by losing party unless otherwise stated by
Arbitration
Commission.
(2) This
Agreement sets forth the entire agreement and understanding of the parties
in
respect to the matters contained herein and supersedes all prior agreements,
ar-rangements and understandings relating thereto.
(3) All
of
the terms and conditions of this Agreement shall be binding upon, and inure
to
the benefit of and be enforce-able by, the parties hereto.
(4) This
Agreement may be amended, modified, superseded or canceled, and any of the
terms
or conditions hereof may be waived, only by a written instrument executed by
each party hereto or, in the case of a waiver, by the party waiving compliance.
The failure of any party at any time or times to require performance of any
provision hereof shall in no manner affect its right at a later time to enforce
the same. No waiver of any party of any condition, or of the breach of any
term
contained in this Agree-ment, whether by conduct or otherwise, in any one or
more instances shall be deemed to be or construed as a further or continuing
waiver of any such condition or breach or a waiver of any other condition or
of
the breach of any other term of this Agreement. No party may assign any rights,
duties or obligations hereunder unless all other parties have given their prior
written consent.
(5) If
any
provision included in this Agreement proves to be invalid or unenforceable,
it
shall not affect the validity of the remaining provisions.
(6) This
Agreement and any amendment or modification of this Agreement may be executed
in
several counterparts or by separate instruments and all of such counterparts
and
instruments shall constitute one agreement, binding on all of the parties
hereto.
-17-
8.
Form
of Signature
The
parties hereto agree to accept a facsimile transmission copy of their respective
actual signatures as evidence of their actual signatures to this Agreement
and
any amendment or modification of this Agreement; provided, however, that each
party who produces a facsimile signature agrees, by the express terms hereof,
to
place, promptly after transmission of his or her signature by fax, a true and
correct original copy of his or her signature in overnight mail to the address
of the other party.
IN
WITNESS WHEREOF, the parties have duly executed this Agreement as of the date
first set forth below.
Party
A:
|
Party
B:
|
||
Triumph Research Limited | Beijing Xxxxxx International Film Culture Co. Ltd. | ||
By:
|
/s/ JianDe Lu |
By:
|
/s/ XxxxXxxxx Xx |
XxxxXx Xx | XxxxXxxxx Xx | ||
President | General Manager | ||
Dated: April 18, 2006 |