EXHIBIT 10.1
DATED THE 28TH DAY OF NOVEMBER 2003
(1) IMMTECH INTERNATIONAL, INC.
and
(2) XX. XXXX XXX XXXX
and
(3) SUPER INSIGHT LIMITED
--------------------------------------------------------------------------------
SHARE PURCHASE AGREEMENT
relating to shares in
SUPER INSIGHT LIMITED
--------------------------------------------------------------------------------
Xxxxxx Xxxxxx White & XxXxxxxxx
00xx Xxxxx
Xxx Xxxxxxxx Xxxxxx
0 Xxxxxxxxx Xxxxx, Xxxxxxx
Xxxx Xxxx
Tel: (000) 0000-0000
Fax: (000) 0000-0000
THIS AGREEMENT is made on the 28th day of November 2003
BETWEEN
(1) IMMTECH INTERNATIONAL, INC., a company incorporated in Delaware with its
principal place of business at 000 Xxxxxxx Xxxxx, Xxxxx 000, Xxxxxx Xxxxx,
XX 00000, Xxxxxx Xxxxxx of America (the "Purchaser");
(2) Xx. XXXX XXX XXXX of Flat B, 16th Floor, 132 Broadway, Mei Foo Sun Chuen,
Kowloon, Hong Kong (the "Seller"); and
(3) SUPER INSIGHT LIMITED [CHINESE SYMBOLS], a company incorporated in
the British Virgin Islands under the International Business Companies Act
of the British Virgin Islands with Certificate of Incorporation numbered
539689 whose registered office is at the offices of Offshore
Incorporations Limited, P.O. Box 957, Offshore Incorporations Centre, Road
Town, Tortola, British Virgin Islands (the "Company").
WHEREAS
(A) As at the date hereof the Company has an authorised share capital of
US$50,000.00 divided into one class of 50,000 ordinary shares of US$1.00
each, of which 100 shares of the Company have been issued and are fully
paid up. Further particulars of the Company are set out in Schedule 1.
(B) Immtech Life Science Limited [CHINESE SYMBOLS] is a company incorporated
in Hong Kong under the Companies Ordinance with registered number 851160
whose registered office is at 00xx Xxxxx, Xxx Xxxxxxxx Xxxxxx, 0 Xxxxxxxxx
Xxxxx, Xxxxxxx, Xxxx Xxxx ("Life Science"), and as at the date hereof has
an authorized share capital of HK$10,000.00 divided into one class of
10,000 ordinary shares of HK$1.00 each, of which 100 shares have been
issued to the Company and are fully paid up.
(C) The Company beneficially owns, free and clear of any lien, charge or
encumbrance, 100 shares of Life Science, of which 99 shares are registered
in the name of the Company and 1 share is registered in the name of
Professional Corporate Services Limited as the nominee of the Company.
(D) It is a condition to Completion (as defined hereinunder) that Life Science
shall possess good title to the Properties (as defined hereinunder) free
and clear of all claims, charges, mortgages, liens, encumbrances, leases,
tenancies, options, covenants, restrictions, conditions or other
agreements affecting the Properties and have exclusive and unfettered
possession of the Properties.
(E) The Purchaser beneficially owns, free and clear of any lien, charge or
encumbrance, 9,659,200 Shares of Lenton Fibre Optics Development Limited,
a company incorporated in Hong Kong under the Companies Ordinance with
registered number 673085 whose registered office is at 3rd Floor, X.X.X.
Xxxxxxxx, Xx. 00 Xxxxxxxxx Xxxx, Xxxxxxx, Xxxx Xxxx ("Lenton").
(F) The Purchaser wishes to purchase from the Seller, and the Seller wishes to
sell to the Purchaser, the Transaction Shares (as hereinafter defined) and
the Immtech Hong Kong Shares (as hereinafter defined) and therefor Immtech
Hong Kong's interest in Immtech Therapeutics upon the terms and conditions
set forth herein.
(G) The Seller has agreed to guarantee the obligations of the Company
hereunder.
NOW IT IS HEREBY AGREED as follows:-
1. INTERPRETATION
1.01 In this Agreement, unless the context requires otherwise:-
"Accounting Date" means 30th September 2003;
"Accounts" means the management balance sheet of the Company made up as at the
Accounting Date and the management profit and loss account of the Company for
the year ended on that date, copies of which are annexed hereto and initialed
for the purposes of identification by the parties hereto [please provide];
"Agreement" means this agreement as amended, modified, varied or supplemented
from time to time;
"Appraisal" means a real estate appraisal of the Properties by a recognized
appraiser in the geographic region of the Properties certifying that the value
of the Properties is not less than the sum of the net book value of the
Consideration Shares on the books of the Purchaser plus US$400,000.00.
"Business Day" means any day on which banks in Hong Kong are open for business
other than a Saturday;
"Companies Ordinance" means the Companies Ordinance (Chapter 32 of the Laws of
Hong Kong);
"Completion" means completion of the purchase of the Transaction Shares and the
Immtech Hong Kong Shares as specified in Clause 5;
"Completion Date" means the Business Day falling not more than three Business
Days after all the conditions set out in Clause 4 have been satisfied or waived,
as applicable (or such other date as the parties may agree in writing prior to
Completion);
"Consideration Shares" means 9,659,200 shares in the capital of Lenton as
beneficially owned by the Purchaser or its nominee as at the date hereof;
"Deed of Indemnity" means the deed in the form set out in Schedule 4;
"HK$" means Hong Kong dollars, the lawful currency of Hong Kong;
"Hong Kong" means the Hong Kong Special Administrative Region of the People's
Republic of China;
"PRC" means the People's Republic of China;
"Properties" means the properties particulars of which are set out in Schedule
2;
"Purchase Consideration" means the consideration payable for the Transaction
Shares as specified in Clause 3;
"Shares" means ordinary shares of US$1.00 each in the share capital of the
Company;
"Taxation" means and includes all forms of tax, levy, duty, charge, impost, fee,
deduction or withholding of any nature now or hereafter imposed, levied,
collected, withheld or assessed by any taxing or other authority in any part of
the world and includes any interest, additional tax, penalty or other charge
payable or claimed in respect thereof;
"Transaction Shares" means 100 Shares to be sold by the Seller to the Purchaser
pursuant to this Agreement; and
"US$" means United States dollars, the lawful currency of the United States of
America.
1.02 References to statutory provisions shall be construed as references to
those provisions as amended or re-enacted or as their application is modified by
other provisions (whether before or after the date hereof) from time to time and
shall include any provisions of which they are re-enactments (whether with or
without modification).
1.03 References herein to Clauses and Schedules are to clauses in and schedules
to this Agreement unless the context requires otherwise and the Schedules to
this Agreement shall be deemed to form part of this Agreement.
1.04 The expressions "the Purchaser", the "Company" and "the Seller" shall,
where the context permits, include their respective successors and permitted
assigns.
1.05 All representations, warranties, undertakings, indemnities, covenants,
agreements and obligations given or entered into by more than one person are
given or entered into severally and not jointly.
1.06 The headings are inserted for convenience only and shall not affect the
construction of this Agreement.
1.07 Unless the context requires otherwise, words importing the singular include
the plural and vice versa and words importing one gender include the other
gender.
1.08 A document expressed to be "in the approved terms" means a document the
terms of which have been approved by or on behalf of the parties hereto and a
copy of which has been signed for the purposes of identification by or on behalf
of the parties hereto.
1.09 Words and phrases the definitions of which are contained or referred to in
Section 2 of the Companies Ordinance, when used in this Agreement, shall be
construed as having the meanings thereby attributed to them.
2. PURCHASE OF TRANSACTION SHARES
2.01 Subject to the terms and conditions of this Agreement, the Purchaser hereby
agrees to purchase the Transaction Shares from the Seller at the Purchase
Consideration payable in accordance with this Agreement and the Seller hereby
agrees to sell the Transaction Shares to the Purchaser on the Completion date at
the Purchase Consideration payable in accordance with this Agreement. No actions
to be taken at the Completion shall be deemed to have occurred until all have
occurred, and when all have occurred they shall be deemed to have occurred
simultaneously.
2.02 The Transaction Shares shall be sold free from all liens, charges, third
party rights and encumbrances of whatever nature and with all rights now or
hereinafter attaching thereto, and shall be transferred to the Purchaser and/or
its nominee and be recorded in the statutory registers of the Company and will
accordingly rank pari passu for all dividends and other distributions hereafter
declared, made or paid on the issued ordinary share capital of the Company on
and with effect from Completion.
2.03 The Company and the Seller represent and warrant to the Purchaser that all
necessary resolutions have been passed and other steps and actions have been
taken to approve the transfer of the Transaction Shares and the record the
Purchaser and/or its nominee as shareholder(s) of the Transaction Shares on the
statutory registers of the Company.
2.04 The Company and the Seller hereby confirm that no person or entity, as of
the date of this Agreement, has or will have, from the date of this Agreement to
the Completion Date, any right to purchase or subscribe for any Shares,
including the Transaction Shares, or any right to request or be allotted or
issued Shares from either the Seller or the Company, or any other shares of the
Company (including but not limited to shares of the Company in a class different
from that of the Shares).
3. CONSIDERATION
The consideration for the Transaction Shares shall be US$400,000.00 in cash plus
the Consideration Shares.
4. CONDITIONS
4.01 Completion shall be conditional upon:
(a) the Purchaser obtaining the consent to its execution of this
Agreement from its Board of Directors in a form and in terms
satisfactory to it;
(b) Life Science having acquired full title to the Properties free and
clear of all claims, charges, mortgages, liens, encumbrances,
leases, tenancies, options, covenants, restrictions, conditions or
other agreements affecting the Properties and has obtained exclusive
and unfettered possession of the Properties;
(c) the Purchaser being satisfied with the results of its due diligence
investigations into the Company; and
(d) all representations, warranties and undertakings of the Seller and
the Company being true, correct and complete as of the Completion
Date.
4.02 The Purchaser shall have the discretion to waive all or any part of the
conditions set out in Clause 4.01 and any such waiver shall only be effective if
made in writing and may be subject to such conditions as the Purchaser deems
fit. Unless so waived, the parties (to the extent that each is able) shall use
all reasonable endeavours to procure the fulfillment of the conditions in Clause
4.01 by the date referred to in Clause 4.03.
4.03 If the conditions set out in Clause 4.01 are not fulfilled or waived, as
applicable, for any reason whatsoever within 90 days from the date of this
Agreement, the Purchaser or the Seller, as the case may be, shall have the right
to terminate this Agreement and upon the exercise of such right, this Agreement
(save for this Clause 4.03, Clause 7.04, Clause 8, Clause 9.03, Clause 10,
Clause 16.01 and Clause 16.02) shall forthwith be terminated and none of the
parties to this Agreement shall have any claim against any other party hereto
save for any antecedent breach.
5. COMPLETION
5.01 Subject to this Agreement becoming unconditional in all respects,
Completion shall take place at 00xx Xxxxx, Xxx Xxxxxxxx Xxxxxx, 0 Xxxxxxxxx
Xxxxx, Xxxxxxx, Xxxx Xxxx on the Completion Date or at such other place and time
as shall be mutually agreed by the parties, time in either case being of the
essence.
5.02 The Company and the Seller represent and warrant to the Purchaser that (i)
the Company and the Seller have the power and authority to enter into this
Agreement and to consummate the transactions contemplated hereby; (ii) this
Agreement has been duly executed and delivered by the Company and the Seller,
and constitutes a legal, valid and binding obligation of each of them,
enforceable in accordance with its terms; (iii) the Seller has good and
marketable title to the Transaction Shares free of liens, charges and
encumbrances; (iv) the shareholders of the Company have approved, at a duly
called and held shareholders' meeting, all actions and documents necessary and
convenient to the completion of the transactions described herein; and (v) the
Board of Directors of the Company has resolved and approved, at a duly called
and held meeting of the Company's Board of Directors, all actions and documents
necessary and convenient to the completion of the transactions described herein
and to enter the name(s) of the Purchaser and/or its nominee(s) in the register
of members of the Company as holders of the Transaction Shares.
5.03 At Completion, the Seller shall deliver or cause to be delivered to the
Purchaser:-
(a) a duly executed instrument of transfer and contract notes in respect
of the Transaction Shares in favour of the Purchaser or its
nominee(s);
(b) original share certificate in respect of 100 Shares in the name of
the Seller;
(c) such other documents as may be required to give the Purchaser or
its nominee(s) good title to the Transaction Shares free from all
liens, charges, equities, encumbrances and third party rights of any
nature and to enable the Purchaser or its nominee(s) to become the
registered holders thereof;
(d) a copy, certified as true and complete by a director of the Company,
of each of the minutes of the shareholders' meeting and the board
meeting of the Company referred to in Clause 5.02 above;
(e) the Land Grant Contract and Title Certificate and other title
documents and approvals to the Properties, showing title to the
Properties to be in Life Science, for safekeeping on behalf of the
Company and Life Science;
(f) the Deed of Indemnity duly executed by the Seller; and
(g) a cheque drawn in favour of the Government of Hong Kong for the full
payment of the Seller's share of stamp duty in respect of the
Consideration Shares.
5.04 At Completion, the Purchaser shall deliver to the Seller:-
(a) a bankers' draft in the amount of US$200,000.00 drawn on a prime
bank in Hong Kong in favour of the Seller or as it may direct in
writing (whose receipt shall be an absolute discharge thereof) in
satisfaction of half of the cash part of the consideration as
stipulated in Clause 3;
(b) a duly executed instrument of transfer and contract notes in respect
of the Consideration Shares in favour of the Seller or its
nominee(s);
(c) original share certificates in respect of the Consideration Shares
in the name of the Purchaser or its nominee; and
(d) a signature page to the Deed of Indemnity duly executed by the
Purchaser.
5.05 Nothing provided for in Clause 5.03 above to occur at Completion shall be
deemed to have occurred until all provided therein to occur at Completion shall
have occurred and when all such have occurred, all shall be deemed to have
occurred simultaneously.
5.06 Without prejudice to any other remedies available to the Purchaser, if in
any respect the provisions of Clause 5.02 and Clause 5.03 are not complied with
(other than as a result of the willful default of the Purchaser) by the Company
or the Seller (as the case may be) on the Completion Date, the Purchaser may:-
(a) defer Completion to a date not more than 28 days after the
Completion Date (so that the provisions of Clause 5.03, Clause 5.04
and Clause 5.05 shall apply to Completion as so deferred); or
(b) proceed to Completion so far as practicable (without prejudice to
its rights hereunder); or
(c) rescind this Agreement.
6. FURTHER OBLIGATIONS OF THE SELLER & THE PURCHASER
6.01 The Seller shall procure that the business of the Company be operated in a
manner consistent with past practices during the period from the date hereof
until Completion.
6.02 Between the date hereof and Completion, the Seller shall not, and shall
procure that the Company shall not, without the prior consent in writing of the
Purchaser, enter into any contracts or hire any employee or incur any single
expenditure in excess of US$2,000.00 or an aggregate expenditure in excess of
US$2,000.00.
6.03 The Seller undertakes to indemnify and keep indemnified the Purchaser (for
itself and as trustee for the Company) against any claim which may be brought by
any of the directors of the Company who resign or are intended to resign.
6.04 The Seller shall forthwith upon Completion:
(a) procure that four additional directors, all of whom shall be the
nominees of the Purchaser, be appointed to the board of directors of
the Company, and the Seller shall, upon such appointment, forthwith
resign as a director of the Company with immediate effect;
(b) procure that four additional directors, all of whom shall be the
nominees of the Purchaser, be appointed to the board of directors of
Life Science;
(c) procure Professional Corporate Services Limited to resign from the
board of directors of Life Science;
(d) procure that the name of the building of which the Properties form
part of be changed to "Immtech Building" within nine (9) months of
the execution of this Agreement by all the parties hereto, and agree
to any future change of name of such building which may be proposed
by the Purchaser as the Purchaser may be entitled or empowered to
effect such change directly or indirectly through any subsidiary or
entity or otherwise; and
(e) procure that the Deed of Mutual Covenant relating to the building of
which the Properties form part of be signed by the relevant parties
thereto and procure those relevant parties to do all such acts as
are necessary (including the signing of the relevant letters of
authorization) for the formation of the owners' committee stipulated
in the Deed of Mutual Covenant referred to in this Clause.
6.05 The Seller shall pay all taxes and fees in respect of the Properties until
such time as the pharmaceutical manufacturing facility is constructed therein
and all operational permits in respect of such facility have been obtained.
6.06 The Purchaser shall, within two (2) months of the execution of this
Agreement by all the parties hereto, deliver to the Seller a bankers' draft in
the amount of US$200,000.00 drawn on a prime bank in Hong Kong in favour of the
Seller or as it may direct in writing (whose receipt shall be an absolute
discharge thereof) in satisfaction of the remaining half of the cash part of the
consideration as stipulated in Clause 3.
7. REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS
7.01 The Company and the Seller hereby represent, warrant and undertake to the
Purchaser (to the intent that the provisions of this Clause 7 shall continue to
have full force and effect notwithstanding Completion) in the terms set out in
Clause 2, Clause 5, this Clause 7 and in Schedule 3 and acknowledge that the
Purchaser, in entering into this Agreement, is relying on such representations,
warranties and undertakings and that the Purchaser shall be entitled to treat
the same as conditions to the obligations of the Purchaser under this Agreement.
7.02 The representations, warranties and undertakings set out in Clause 2,
Clause 5, this Clause 7 and in each paragraph of Schedule 3 shall be separate
and independent and save as expressly provided shall not be limited by reference
to any other paragraph or anything in this Agreement or the Schedules.
7.03 The representations, warranties and undertakings set out in Clause 2,
Clause 5, this Clause 7 and in each paragraph of Schedule 3 shall be true and
complete as of the date hereof and shall be deemed to be repeated as at
Completion as if all references therein to the date of this Agreement were
references to the date of Completion.
7.04 The Seller hereby undertakes to indemnify and keep indemnified the
Purchaser (for itself and as trustee for the Company) against any loss or
liability suffered by the Purchaser as a result of or in connection with any
breach of the said representations, warranties and undertakings including, but
not limited to, any diminution in the value of the assets of and any payment
made or required to be made by the Purchaser or the Company and any costs and
expenses incurred as a result of such breach provided that the indemnity
contained in this Clause shall be without prejudice to any other rights and
remedies of the Purchaser in relation to any such breach of representation,
warranty or undertaking and all such other rights and remedies are hereby
expressly reserved to the Purchaser.
7.05 The Seller represents and warrants that (i) the business of the Company
shall be operated in a manner consistent with past practices during the period
from the date hereof until Completion; and (ii) between the date hereof and
Completion, the Company shall not, without the prior consent in writing of the
Purchaser, enter into any contracts or hire any employee or incur any single
expenditure in excess of US$2,000.00 or an aggregate expenditure in excess of
US$2,000.00.
7.06 The representations, warranties and undertakings set out in Clause 2,
Clause 5, this Clause 7 and in each paragraph of Schedule 3 shall be deemed to
be repeated in respect of Life Science and all other subsidiaries and associates
of the Company so that all references therein to the Company shall be taken as
references to Life Science and all other subsidiaries and associates of the
Company so far as applicable.
8. GUARANTEE
8.01 In consideration of the Purchaser entering into this Agreement, the Seller
as primary obligor hereby unconditionally and irrevocably guarantees by way of
continuing guarantee to the Purchaser the due and punctual performance and
observance by the Company of all obligations, commitments, undertakings,
agreements, representations, warranties, indemnities and covenants under or
pursuant to this Agreement and agrees to indemnify and keep indemnified the
Purchaser in full from and against all liabilities, losses, damages, claims,
costs and expenses (including all legal costs and expenses on a full indemnity
basis) which the Purchaser may suffer through or arising from any breach or
non-fulfillment by the Company of such obligations, commitments, undertakings,
agreements, representations, warranties, indemnities or covenants or as a result
of the failure by the Company to make any payment under the Agreement when due
or as a result of any of such obligations, commitments, undertakings,
agreements, representations, warranties, indemnities or covenants of the Company
being or becoming void, voidable or unenforceable for any reason whatsoever
(whether or not known to the Purchaser), the amount of such costs, expenses,
losses or damages being the amount which the Purchaser would have otherwise been
entitled to recover from the Company together with all expenses which the
Purchaser may incur in proceeding against the Company.
8.02 The Seller, as primary obligor, unconditionally and irrevocably agrees that
if and whenever the Company defaults for any reason whatsoever in the
performance of any obligation or liability undertaken or expressed to be
undertaken by it under or pursuant to this Agreement, the Seller shall forthwith
upon demand unconditionally perform (or procure performance of) and satisfy (or
procure the satisfaction of) the obligation or liability in regard to which such
default has been made in the manner prescribed by this Agreement and so that the
same benefits shall be conferred on the Purchaser as it would have received if
such obligation or liability had been duly performed and satisfied.
8.03 The guarantee and indemnity set out in this Clause shall be a continuing
security to the Purchaser for all obligations, commitments, undertakings,
representations, warranties, indemnities and covenants on the part of the
Company under or pursuant to this Agreement notwithstanding any settlement of
account or other matter or thing whatsoever and is in addition and without
prejudice to and not in substitution for any rights or security which the
Purchaser may now or hereafter have or hold for the performance and observance
of the obligations, commitments, undertakings, agreements, representations,
warranties, indemnities and covenants of the Company under or in connection with
this Agreement.
8.04 As a separate and independent stipulation, the Seller agrees that any
obligation expressed to be undertaken by the Company under this Agreement
(including, without limitation, any monies expressed to be payable under this
Agreement) which may not be enforceable against or recoverable from the Company
by reason of any legal limitation, disability or incapacity or any other fact or
circumstance shall nevertheless be enforceable against or recoverable from the
Seller as though the same has been incurred by the Seller and that the Seller
was the principal obligor in respect thereof and shall be performed or paid by
the Seller in accordance with the terms of this Agreement.
8.05 The obligations of the Seller under this Clause shall not be affected by
any matter or thing which but for this provision might operate to affect or
prejudice those obligations, including without limitation:
(a) any time or indulgence granted to, or composition with, the Company
or any other person;
(b) the taking, variation, renewal or release of, or neglect to perfect
or enforce this Agreement or any right, guarantee, remedy or
security from or against the Company or any other person;
(c) any unenforceability or invalidity of any obligation of the Company,
so that this Clause shall be construed as if there were no such
unenforceability or invalidity;
(d) the liquidation, winding-up, receivership or bankruptcy of the
Company or the bankruptcy or individual voluntary arrangement or any
similar arrangement of the Seller; and
(e) any other act, matter, event or omission which, but for this
provision, would or might operate to discharge, impair or otherwise
affect the Seller's liabilities hereunder.
The Seller waives any right available to it under any applicable law
which is inconsistent with any provision of this Clause 8 or which might
otherwise require the Purchaser to proceed against the Company or any other
person before making a demand on the Seller.
8.06 So long as any of the obligations, commitments, undertakings, agreements,
representations, warranties, indemnities and covenants of the Company under or
pursuant to this Agreement remains outstanding the Seller shall not exercise any
right of subrogation or any other right of a surety or enforce any security or
other right or claim against the Company or any other person whether in respect
of its liability under this Clause 8 or otherwise or claim in the insolvency,
liquidation or bankruptcy of the Company in competition with the Purchaser.
8.07 All payments under this Clause 8 shall be made in full without set-off or
counterclaim or any restriction or condition and free and clear of any present
or future taxes, duties, charges or other deductions or withholdings of any
nature. If any deduction or withholding is required to be made from any such
payment the Seller shall, together with such payment, pay to the Purchaser such
additional amount as is necessary to ensure that the Purchaser receives the full
amount due hereunder.
8.08 Notwithstanding anything to the contrary herein, the aggregate maximum
liability of the Seller in respect of any claims that may be made against him
hereunder and under other provisions of this Agreement shall be limited to ten
million United States dollars (US$10,000,000.00).
9. ACCESS TO INFORMATION
9.01 From the date of this Agreement until Completion, the Purchaser, its
professional advisers and appointed representatives shall have the right upon
prior appointment to visit the facilities of the Company as they reasonably
require so as to:
(a) verify the accuracy of the representations, warranties and
undertakings of the Seller or the Company contained herein;
(b) check the existence and condition of the assets thereat; and
(c) carry out a review of and investigation into the history, assets,
liabilities, financial condition, contracts, commitments and the
business of the Company.
9.02 The Company and the Seller hereby undertake with the Purchaser to ensure
that any information and documents required by the Purchaser or its professional
advisers or appointed representatives for the purposes of such review and
investigation referred to in Clause 9.01 shall be promptly made available, and
copies of such information and documents shall be permitted to be made by the
Purchaser or its professional advisers or appointed representatives. The
information and documents referred to under this Clause 9 include, but shall not
be limited to:
(a) the books of account of the Company including all accounts ledgers;
(b) the statutory books of the Company or copies thereof;
(c) a list of the assets, liabilities and receivables of the Company;
(d) details of all bank accounts of the Company (including the name and
address of the bank with whom the account is kept and the number and
nature of the account) and a statement of the credit and debit
balance thereon as at the close of business on the date of this
Agreement;
(e) copies of all licenses, agreements, agencies or all other documents
which affect the Company;
(f) copies of all banking facility documentation entered into by the
Company, if any;
(g) copies of all guarantees and any security documents entered into by
the Company, if any; and
(h) all financial statements and accountants work papers of the Company.
9.03 The Purchaser hereby undertakes with the Company that it will not, prior to
Completion and save as required by law, make use of or disclose or divulge any
information relating to the Seller or the Company obtained by it or its
representatives pursuant to this Clause 9 to persons other than its own
officers, employees or professional advisers. Notwithstanding the foregoing, the
Purchaser undertakes to keep strictly confidential the business affairs and
prospects of the Seller and the Company unless any announcement or disclosure is
required to be made by law or any regulatory authority to which the Purchaser is
subject and in such event, the Purchaser shall consult with the Seller and the
Company before making any such announcement or disclosure.
10. RESTRICTION ON ANNOUNCEMENTS
Each of the parties hereto undertakes that prior to Completion and thereafter it
will not (save as required by law or any rule of any relevant stock exchange or
any regulatory authority to which it is subject) make any announcement in
connection with this Agreement unless all the other parties hereto shall have
given its consent to such announcement (which consent may not be unreasonably
withheld or delayed and may be given either generally or in a specific case or
cases and may be subject to conditions).
11. COUNTERPARTS
This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the
same instrument.
12. ENTIRE AGREEMENT
This Agreement is the entire agreement among the parties, and, when executed by
the parties hereto, supersedes all prior agreements, understandings and
communications, either verbal or in writing, among the parties hereto with
respect to the subject matter contained herein. Any amendment or variation of
this Agreement must be in writing and duly signed by the parties hereto.
13. WAIVER
Any failure by a party hereto to comply with any obligation, agreement or
condition herein may be expressly waived in writing by all the other parties
hereto, but no failure or delay by the Purchaser in exercising any right, power
or remedy under this Agreement shall operate as a waiver thereof, nor shall any
single or partial exercise of the same preclude any further exercise thereof or
the exercise of any other right, power or remedy. Without limiting the
foregoing, no waiver by the Purchaser of any breach by the Company or the Seller
of any provision hereof shall be deemed to be a waiver of any subsequent breach
of that or any other provision hereof. If at any time any provision of this
Agreement is or becomes illegal, invalid or unenforceable in any respect, the
legality, validity and enforceability of the remaining provisions of this
Agreement shall not be affected or impaired thereby.
14. ASSIGNMENT
This Agreement and all of the provisions hereof shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and
permitted assigns, but neither this Agreement nor any of the rights, interests
or obligations hereunder shall be assigned by any party hereto without the prior
written consent of all the other parties hereto.
15. FURTHER ASSURANCE
Each party hereto shall do and perform or cause to be done and performed such
further acts and things and shall execute and deliver all such other agreements,
certificates, instruments and documents as any other party hereto may reasonably
request in order to give full effect to the terms of this Agreement.
16. MISCELLANEOUS
16.01 Governing Law: Arbitration
(a) Any dispute arising out of or in connection with this Agreement
shall be exclusively settled by confidential arbitration in Hong
Kong at the Hong Kong International Arbitration Centre according to
its rules. The arbitration shall be conducted by three arbitrators,
one selected by the Purchaser, one selected by the Seller and the
third by the two so selected within 21 days from the date the
relevant dispute arises. The judgment of a majority of the
arbitrators may be entered and enforced in any court of competent
jurisdiction. The arbitrators shall have no authority to amend this
Agreement.
(b) This Agreement shall be governed by and construed in all respects in
accordance with the laws of Hong Kong, without regard to its laws
regarding conflict of laws.
(c) The allocation of the costs relating to the arbitration as
contemplated in this Clause 16.01 shall be determined by the decree
of a majority of the arbitrators.
16.02 Notices
Each notice, demand or other communication given or made under this
Agreement shall be in writing and delivered or sent to the relevant party
at its address or facsimile number set out below (or such other address or
facsimile number as the addressee has by five (5) Business Days' prior
written notice specified to the other parties):
To the Purchaser:-
Name: IMMTECH INTERNATIONAL, INC.
Address: 000 Xxxxxxx Xxxxx, Xxxxx 000,
Xxxxxx Xxxxx, XX 00000,
Xxxxxx Xxxxxx of America
Fax Number: (000)-000-000-0000
Attention: Mr. T. Xxxxxxx Xxxxxxxx
To the Seller:-
Name: XX. XXXX XXX XXXX
Address: Flat B, 16th Floor, 132 Broadway,
Mei Foo Sun Chuen, Kowloon, Hong Kong
Fax Number: (000) 0000 0000
To the Company:
Name: SUPER INSIGHT LIMITED
Address: 00xx Xxxxx, Xxx Xxxxxxxx Xxxxxx,
0 Xxxxxxxxx Xxxxx, Xxxxxxx
Xxxx Xxxx
Fax Number (000) 0000-0000
Attention: Xx. Xxx Xxxxx Xxx Xxxx
16.03 Rescission
Any right of rescission conferred upon the Purchaser hereby shall be in
addition to and without prejudice to any other rights and remedies
available to it.
16.04 Costs
Each party to this Agreement shall bear its own costs of and incidental to
this Agreement and the transactions contemplated hereunder provided that
if the Purchaser shall lawfully exercise any right hereby conferred to
rescind this Agreement the Seller shall indemnify the Purchaser against
all costs and expenses without limiting to other remedies available at law
or in equity, incurred in the preparation of this Agreement.
16.05 Time of the Essence
Time shall be of the essence as regards any date or period mentioned in
this Agreement or any date or period substituted for the same by agreement
of the parties hereto or otherwise.
IN WITNESS WHEREOF this Agreement has been executed on the day and year first
above written.
SIGNED by )
/s/ T. Xxxxxxx Xxxxxxxx )
--------------------------- )
T. Xxxxxxx Xxxxxxxx )
for and on behalf of )
IMMTECH INTERNATIONAL, INC. )
)
in the presence of :- )
SIGNED by )
/s/ Chan Xxx Xxxx )
-------------------------- )
XX. XXXX XXX XXXX )
)
in the presence of:- )
/s/ Xxxxxx Xxx
---------------------------
Xxxxxx Xxx
Solicitor, Hong Kong SAR
Xxxxxx Xxxxxx White & XxXxxxxxx
SIGNED by )
/s/ Chan Xxx Xxxx )
--------------------------- )For and on behalf of
Chan Xxx Xxxx )SUPER INSIGHT LIMITED
for and on behalf of )
SUPER INSIGHT LIMITED ) /s/ Chan Xxx Xxxx
)------------------------------------
in the presence of :- ) Authorized Signature(s)
/s/ Xxxxxx Xxx
---------------------------
Xxxxxx Xxx
Solicitor, Hong Kong SAR
Xxxxxx Xxxxxx White & XxXxxxxxx
SCHEDULE 1
Particulars of the Company
Name: SUPER INSIGHT LIMITED
Number: 539689
Date of Incorporation: 28 March 2003
Place of Incorporation: British Virgin Islands
Registered Office: the offices of Offshore Incorporations Limited,
P.O. Box 957, Offshore Incorporations Centre,
Road Town, Tortola, British Virgin Islands
Authorized Share Capital: US$50,000.00 divided into one class of 50,000
ordinary shares of US$1.00 each
Issued Share Capital: US$100.00 divided into one class of 100
ordinary shares of US$1.00 each as at the date
hereof
Director: Xx. Xxxx Xxx Xxxx
No. of Shares held
Shareholder as at the date hereof
----------- ---------------------
Xx. Xxxx Xxx Xxxx 100
SCHEDULE 2
The Properties
Real Estate
Description of the Certificate Nos.
Properties Address Land No. of the Properties
------------------ ------- -------- -----------------
The first and Xxxxxx Xxxx, X000-00-0 Xxxxxxxxxxxx No.
second floors Futian Bonded 9000305 and
of [CHINESE Xxxx, Xxxxxxxx, Xxxxxxxxxxxx Xx.
XXXXXXX] Xxxxxx'x Xxxxxxxx 0000000
of China
SCHEDULE 3
Representations, Warranties and Undertakings
Corporate Matters
1. The Company has been duly incorporated and is validly existing under the
laws of the British Virgin Islands and has full power, authority and legal
right to own its assets and carry on its business in the manner presently
conducted and the Company is not in receivership or liquidation, it has
taken no steps to enter into liquidation and no petition has been
presented for winding up the Company and there are no grounds on which a
petition or application could be based for the winding up or appointment
of a receiver of the Company or any part of its business or assets.
2. The Company does not have any subsidiary or own directly or indirectly,
any equity security or other interests in any company partnership or other
business entity, except being the sole beneficial shareholder of Life
Science.
3. There are no options, warrants, convertible securities or other rights or
agreements outstanding which call for the issue or purchase of or accord
to any person (i) the right to call for the issue of any Shares in the
capital of the Company or the issue of any such options, warrants,
convertible securities or rights; or (ii) the right to require the
creation of any mortgage, charge, pledge, lien or other security or
encumbrance over the Shares or any shares in the capital of the Company.
4. A copy of the Memorandum of Association and Articles of Association of the
Company which has been produced to the Purchaser are accurate and complete
in all material respects and have attached to it copies of all resolutions
and agreements which are required to be so attached. The Company has
complied with its Memorandum of Association and Articles of Association in
all material respects and none of the activities, agreements, commitments
or rights of the Company is ultra xxxxx or unauthorised or in violation of
any applicable laws.
5. Each of the Seller and the Company has full power and authority and all
necessary consents, approvals and authorisations to empower it to enter
into this Agreement and to incur and perform fully the obligations
provided for herein and (in the case of the Seller only) to sell the
Transaction Shares and to incur and perform fully the obligations provided
in the Deed of Indemnity.
6. This Agreement has been duly executed and delivered by the Seller and the
Company and constitutes valid and binding obligations of the Seller and
the Company and enforceable against them respectively in accordance with
its terms.
7. The Transaction Shares will, upon Completion, constitute 100% of the
issued share capital of the Company and the Transaction Shares will be
sold free from all liens, charges, third party rights and encumbrances of
whatever nature and will be credited as fully paid in the manner referred
to in Clause 2.02 and will rank pari passu in all respects as one class of
shares with the remainder of the ordinary shares in the capital of the
Company and will rank pari passu for all dividends and other distributions
hereafter declared, made or paid on the issued ordinary share capital of
the Company on and with effect from Completion.
8. All statutory and other books and records of the Company are and have,
since its incorporation, been kept up to date, and will on Completion be
up to date and properly, accurately and consistently completed and are a
complete or will on Completion be complete and show an accurate record of
all acts and transactions of the Company and of all matters required by
law or best business practice to be recorded or registered therein and all
such documents are in the possession of the Company. The Company has not
received any notice of any application or intended application under the
International Business Companies Act of the British Virgin Islands for
rectification of the Company's register and all annual or other returns
required to be filed with the Registrar of Companies of the British Virgin
Islands have been properly filed within any applicable time limit and all
legal requirements relating to the formation of the Company and the issue
of shares and other securities have been complied with.
Trading and General Commercial Matters
9. The Company has good and marketable title to all stocks used in its
business free from any liens, mortgages, charges, encumbrances or other
third party rights and the stock is in good condition and of normal
merchantable quality and capable of being sold by the Company in the
ordinary course of business.
10. The fixed and loose plant, machinery, furniture, fixtures and fittings,
equipment and vehicles and the tangible assets used in connection with the
business of the Company and all other fixed assets referred to in the
Accounts and any additions thereto made since the Accounting Date are the
sole and absolute property of and held by the Company free from any liens,
mortgages, charges, encumbrances, hire or hire purchase agreements, credit
sale agreements or agreements for payment on deferred terms or bills of
sale and the Company has good and marketable title thereto and all such
assets are in the possession or under the control of the Company and,
where it is disclosed that any such assets have been disposed of, they
have not been disposed of at less than book value. Neither the
construction, positioning nor use of any of the Company's assets, nor the
assets themselves contravene any relevant provision of any legislation,
regulation or other requirement having the force of law, and all such
assets owned or used by the Company are in good repair and capable of
being used for the purposes for which they were designed, acquired or used
by the Company and have throughout their period of ownership by the
Company been maintained and serviced in accordance with their
manufacturers' recommendations.
11. There are no loans, guarantees, pledges, mortgages, charges, liens,
debentures, encumbrances or unusual liabilities given, made or incurred by
or on behalf of the Company.
12. The books of accounts of the Company accurately present and reflect in
accordance with generally accepted accounting principles and standards
within the Company's jurisdiction of incorporation, a true and fair view
of all assets and liabilities (including any liability for Taxation) of
the Company and all transactions entered into by the Company or to which
it has been a party and all documents which are subject to stamp or
similar duty have been duly stamped.
13. The Company is not a party to :-
(a) any contract which involves or is likely to involve obligations,
restrictions or expenditure of an unusual or onerous nature or
which, in accordance with its terms, cannot or will not be fulfilled
or performed within three (3) months from the date of such contract;
(b) any contract materially or adversely affecting its business or
assets or restricting the Company's freedom of action in relation to
its normal business activities;
(c) any contracts not made in the ordinary course of business;
(d) any contracts for the purchase of materials, supplies or equipment
which are in excess of the requirements of the Company for its
normal operating purposes or require expenditure in excess of fifty
thousand Hong Kong dollars (HK$50,000.00);
(e) any sales agency, distribution, marketing, purchasing or licensing
agreements;
(f) any joint venture, agency or partnership arrangement or agreement or
similar arrangement or agreement except for this Agreement;
(g) any contract for services (other than contracts for the supply of
normal office services).
14. There are no contracts or obligations, agreements or arrangements to which
the Company is a party or by which the Company is bound which are void,
illegal, unenforceable, registrable or notifiable under or contravening
any laws or regulations.
15. There are no agreements (including any lease or license) concerning the
Company which can be terminated or which have been terminated or under
which the rights of any person are liable to be materially adversely
affected as a result of a change in control of the Company or in the
composition of the Board of Directors of the Company.
16. The Company has no liabilities except liabilities arising in the ordinary
course of business under purchase orders, supply contracts, sale
contracts, or other liabilities not required by generally accepted
accounting principles to be referred to in the Accounts and the Company is
not owed any moneys other than trade debts and cash at bank.
17. The Company has provided to the Purchaser full and accurate details of
each bank, or other financial institution at which the Company has an
account or safety deposit box and the names of all persons authorised to
draw thereon or have access thereto.
18. All amounts received by the Company have been deposited with one or other
such banks or other financial institutions as appear in the appropriate
accounting books.
19. There are no loans, guarantees, pledges, mortgages, charges, liens,
debentures, encumbrances or liabilities given, made or incurred by or on
behalf of the Company (and, in particular, but without limiting the
foregoing, no loans have been made by or on behalf of the Company to any
directors or shareholders of the Company) and no director or other person
has given any guarantee of or security for any financial or other
obligation of the Company.
20. The Company is not in default under any provision of any contract or
agreement (including any lease or license) to which it is a party or by
which it is bound and no event has occurred which constitutes a default,
or which with the giving of notice or the passage of time or otherwise,
would constitute a default under such contract or agreement (including any
lease or license) or which would require the premature repayment of any
loans or other amounts due thereunder and no party with whom the Company
has entered into any agreement is in default thereunder.
21. Other than the authorization given to the Seller to attend to the change
of name of the building of which the Properties form part to "Immtech
Building", the Company has given no powers of attorney and no other
authority express, implied or ostensible which is still outstanding or
effective to any person to enter into any contract or commitment to do
anything on its behalf other than the authority of employees to enter into
routine trading contracts in the normal course of their duties.
22. The Company is not the subject of any official investigation or inquiry
and there are no facts or circumstances which are likely to give rise to
any such investigation or inquiry.
23. The Company has at all times carried on its business in compliance with
all, and is not in violation of any applicable laws and regulations and
neither the Company, nor any of its officers, has committed any criminal
offence or any tort or any breach of the requirements or conditions of any
statute, treaty, regulation, bye-law or other obligation relating to the
Company or the carrying on of its business and without prejudice to the
generality of the foregoing the Company has obtained all licenses and
consents necessary for the carrying on of its current business, and all
such licenses and consents are valid and subsisting and all conditions
attached thereto have been complied with in full and there is no reason
why any of them should be suspended, cancelled or revoked.
24. There is no order, decree or judgment of any court or any governmental or
regulatory authority (whether of Hong Kong or any other jurisdiction)
applicable to or binding upon the Company. There is no provision of any
statute, rule or regulation applicable to or binding upon the Company
which adversely affects the business, prospects, assets or condition,
financial or otherwise, of the Company.
25. Save as required by applicable law, there is no restriction whatsoever on
the ability of the Company to declare and pay any dividends or to make
other distributions.
26. The directors of the Company will not pending Completion invite any
employees of the Company, including executive directors, to enter into any
options to subscribe for Shares or receive any other incentive from the
Company or any Seller.
The Properties
27. The Properties comprise all the properties and premises owned or occupied
by the Company and any of its subsidiaries or associates at the date
hereof and all the estate, interest, right and title whatsoever of the
Company and/ or any of its subsidiaries or associates in, under, over or
in respect of any properties or premises and the descriptions set out in
Schedule 2 are correct and not misleading.
28. Life Science possesses good title to the Properties free and clear of all
claims, charges, mortgages, liens, encumbrances, leases, tenancies,
options, covenants, restrictions, conditions or other agreements affecting
the same and Life Science has exclusive and unfettered possession of the
Properties. The Properties are fully capable of being used as a plant for
pharmaceutical manufacturing and do not possess any attribute that may
affect any such plant to be operated in the Properties from satisfying the
relevant Good Manufacturing Practice standard.
29. The title to the Properties is properly constituted by and can be deduced
from documents of title which are in the possession and under the control
of Life Science and Life Science is the registered and beneficial owner of
the Properties and there are no entries in the relevant PRC authorities or
elsewhere against the Properties which are adverse to the title of Life
Science to any of the Properties.
30. The present use of the Properties is a permitted use for the purpose of
the relevant planning or building regulations and is not adversely
affected or likely to be adversely affected by any planning proposals and
Life Science is not a temporary user or user subject to any conditions
giving rise to abnormal expenditure.
31. The Properties are not affected by any order or notice of or proceedings
involving any governmental or local authority or other body or any
agreement with any of the same or by any notices served by the Company or
its wholly-owned subsidiary on any such authority or body.
32. The Properties comply with all statutes, regulations, bye-laws and other
relevant legislation.
33. All policies of insurance relating to the Properties (including fixtures,
fittings and consents) are current and valid, cover the full
re-instatement value thereof (including where the relevant property is
let, five (5) years' loss of rent and where the relevant property is under
construction, a contractor's all risks policy) and are not subject to any
special or unusual terms or restrictions or to the payment of any premium
in excess of the normal rate for policies of the same kind and in respect
of policies on properties held on lease where the Company is responsible
for maintaining insurance, the policy conforms in all respects with the
requirements of the lease under which each of the Properties is held.
34. The Company has entered into agreements with water, sewage and other
utilities authority for the supply of water, sewerage and other utilities
and all such agreements are in full force and effect.
35. There are no mortgages, charges or debentures affecting any of the
Properties.
Confidential Information
36. The Company does not use any processes and is not engaged in any
activities which involve the misuse of any know-how, lists of customers or
suppliers, trade secrets, technical processes or other confidential
information ("Confidential Information") belonging to any third party.
There has been no actual or alleged misuse by any person of any of its
Confidential Information. The Company has not disclosed to any person any
of its Confidential Information except where such disclosure was properly
made in the normal course of the Company's business and was made subject
to an agreement under which the recipient is obliged to maintain the
confidentiality of such Confidential Information and is restrained from
further disclosing it or using it other than for the purposes for which it
was disclosed by the Company.
Intellectual Property Rights
37. The Company does not use any processes and is not engaged in any
activities which infringe any patents, copyrights, trademarks, designs,
business names or other registrable or unregistrable intellectual property
rights ("Intellectual Property Rights") of any third party. The Company
does not own or use any Intellectual Property Rights in connection with
its business.
Business Names
38. The Company does not carry on business under any name other than its own.
Insurance
39. All assets of the Company of an insurable nature have at all times been
and are insured in amounts to the full replacement value thereof against
such risks as are in accordance with good commercial practice normally
insured against in the PRC and the Company has at all times been
adequately covered against accident, third party, public liability,
product liability and other risks normally covered by insurance and
nothing has been done or omitted to be done by or on behalf of the Company
which would make any policy of insurance void or voidable or enable the
insurers to avoid the same and there is no claim outstanding under any
such policy and there are no circumstances likely to give rise to such a
claim or result in an increased rate of premium on their next renewal.
40. All information furnished in obtaining or renewing the insurance policies
of the Company was correct, full and accurate when given and any change in
that information required to be given was correctly given. The Company is
not in default under any of these policies.
41. The Company has not suffered any uninsured, extraordinary or unusual
losses nor waived any rights of material or substantial value nor allowed
any insurance to lapse.
Litigation
42. The Company is not engaged in any litigation, arbitration, prosecution or
other legal proceedings nor is there any such proceeding pending or to the
knowledge of the Company threatened against or involving the Company
(whether as plaintiff or defendant or otherwise) nor is there any claim or
any fact or circumstance which may give rise to a claim against the
Company or against any person for whose acts or defaults the Company may
be vicariously liable.
43. In particular but without prejudice to the generality of the foregoing
there are no disputes between the Company and its customers, suppliers or
employees in relation to defective or unsafe goods, plant or work or any
loss, damage or personal injury resulting therefrom.
44. There is no unsatisfied judgment, court order or tribunal or arbitral
award outstanding against the Company and no distress, execution or
process has been levied on any part of its business or assets.
Matters since the Accounting Date
45. Since the Accounting Date:
(a) Save for this Agreement, the Company has not incurred or become
subject to any liability (whether for Taxation or otherwise) or
obligation (absolute or contingent);
(b) to the best knowledge of the Company, no event, circumstance,
occurrence, fact, condition, change or effect that is adverse to the
business, operations, results of operations, financial condition,
prospects, properties, assets or liabilities of the Company has
occurred or is likely to occur;
(c) there has been no interruption or alteration in the nature, scope or
manner of the business of the Company which business has been
carried on lawfully and in the ordinary and usual course of business
so as to maintain it as going concern;
(d) there has been no adverse change in the customer relations of the
said business or in the financial condition or the position,
prospects, assets or liabilities of the said business or the Company
as compared with the position disclosed by the Accounts and no
damage, destruction or loss (whether or not covered by insurance)
affecting the said business or its assets;
(e) the Company has continued to pay its creditors in the ordinary
course of business;
(f) no tender, quotation or offer issued by the Company and still
outstanding is or will be capable of giving rise to a contract
merely by an order, acceptance or other action by another party;
(g) the Company has not repaid any loan capital in whole or in part
(other than indebtedness to its bankers) nor has it become bound or
liable to be called upon to repay prematurely any loan capital or
borrowed moneys;
(h) the Company has not waived or released any rights howsoever arising;
(i) the Company has not incurred any capital expenditures, made any
capital commitments or disposed of any fixed assets;
(j) the Company has not hired or dismissed any employees;
(k) no sum or benefit has been paid, applied or voted to any officer or
employee of the Company by way of remuneration, bonus, incentive or
otherwise in excess of the amounts paid or distributed to them by
the Company at the Accounting Date so as to increase their total
remuneration and no new service agreements have been made or renewed
by the Company since the Accounting Date and the Company is under no
contractual or other obligation in respect thereof nor has the
Company changed the terms of service of any officer or employee;
(l) no dividends, bonuses or other distributions have been paid or made
in respect of any of the Shares;
(m) no share or loan capital of the Company has been issued or agreed to
be issued or any option or right therefor granted;
(n) the Company has not undergone any capital reorganisation or change
in its capital structure;
(o) no resolutions have been passed other than the resolutions to
approve this transaction, by the Company and nothing has been done
in the conduct or management of the affairs of the Company which
would be likely to materially reduce the net asset value of the
Company;
(p) the Company has not incurred or become subject to any liability or
obligation (absolute or contingent) except current liabilities and
obligations incurred under contracts entered into in the ordinary
course of business; and
(q) the Company has not discharged or satisfied any lien or encumbrance
or any other obligation or liability (absolute or contingent) other
than liabilities disclosed in the Accounts as at the Accounting Date
and current liabilities incurred since the Accounting Date in the
ordinary course of business.
Accuracy of Information Provided
46. All information contained in this Agreement (including the recitals and
the Schedules) is true and accurate.
47. All written information given or provided to the Purchaser and its
professional advisers by the Company, its professional advisers and the
officers of the Company during the negotiations prior to this Agreement
was when given, and is at the date hereof, true and accurate and all
statements of opinion, intention or expectation in relation to the Company
contained in such information were as at the time of such disclosure and
will, immediately prior to Completion, having regard to circumstances then
subsisting, remain truly and honestly held and had been made after due and
careful consideration. There is no fact, omission, matter or circumstance
which has not been disclosed in writing to the Purchaser or its
professional advisers which renders any such information untrue,
inaccurate or misleading or which might reasonably affect the willingness
of the Purchaser to proceed with the purchase of the Transaction Shares on
the terms of this Agreement.
48. There is no fact or matter concerning the Company and its business and
affairs which has not on the basis of the utmost good faith been disclosed
prior to the date of this Agreement in writing to the Purchaser by the
Company which might reasonably affect the willingness of the Purchaser to
proceed with the purchase of the Transaction Shares on the terms of this
Agreement.
General
49. The execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby will not result in the breach or
cancellation or termination of any of the terms or conditions of or
constitute a default under any agreement, commitment or other instrument
to which the Company is a party or by which the Company or its property or
assets may be bound or affected or violate any law or any rule or
regulation of any administrative agency or governmental body or any order,
writ, injunction or decree of any court, administrative agency or
governmental body affecting the Company.
SCHEDULE 4
Deed of Indemnity
THIS DEED OF INDEMNITY is made on the 28th day of November 2003
BETWEEN
(1) Xx. XXXX XXX XXXX of Flat B, 16th Floor, 132 Broadway, Mei Foo Sun Chuen,
Kowloon, Hong Kong (the "Seller");
(2) IMMTECH INTERNATIONAL, INC., a company incorporated in Delaware with its
principal place of business at Xxxxx 000, 000 Xxxxxxx Xxxxx, Xxxxxx Xxxxx,
XX 00000, Xxxxxx Xxxxxx of America (the "Purchaser"); and
(3) SUPER INSIGHT LIMITED, a company incorporated in the British Virgin
Islands under the International Business Companies Act of the British
Virgin Islands with Certificate of Incorporation numbered 539689 whose
registered office is at the offices of Offshore Incorporations Limited,
P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British
Virgin Islands (the "Company").
WHEREAS
(A) By a Share Purchase Agreement dated 28 November 2003 (the "Agreement")
made between (1) the Seller, (2) the Purchaser and (3) the Company, the
Purchaser has agreed, inter alia, to purchase and the Seller has agreed,
inter alia, to sell the Transaction Shares (as defined in the Agreement)
on the terms and conditions therein contained, and the Seller has agreed
to guarantee the obligations of the Company thereunder.
(B) It is a condition of the completion of the Agreement that the Seller
deliver to the Purchaser this Deed of Indemnity as duly executed.
NOW THIS DEED WITNESSES as follows:-
1. INTERPRETATION
1.01 In this Deed, unless the context requires otherwise:-
(a) words and expressions and other rules of interpretation defined,
used or set out in the Agreement have the same meanings and
application in this Deed;
(b) "Claim" means any assessment, notice, demand or other document
issued or action taken by or on behalf of any person, authority or
body whatsoever and of whatever country from which it appears that
the Company is liable or is sought to be made liable to make any
payment or is deprived or is sought to be deprived of any relief or
allowance or credit or right to repayment of Taxation;
(c) "event" includes (without limitation) the death of any person, any
action, omission or transaction whether or not the Company is a
party thereto and includes completion of the purchase of the
Transaction Shares by the Purchaser and references to the result of
events on or before the date hereof shall include the combined
result of two or more events one or more of which shall have taken
place before the date hereof;
(d) references to income or profits or gains earned, accrued or received
shall include income or profits or gains deemed to have been or
treated as or regarded as earned, accrued or received for the
purposes of any legislation;
(e) references to a Claim shall include any Claim whether made before or
after the date hereof and whether satisfied or unsatisfied at the
date hereof and shall also include:
(i) the loss of any relief, allowance or credit granted by or
pursuant to any legislation or otherwise for Taxation purposes
which could but for the Claim in question have been available
to the Purchaser or the Company whether or not the said loss
results in any Taxation being payable at the time of such
loss; and
(ii) the nullifying or cancellation of a right to repayment of
Taxation which would have been so available or is at the date
hereof assumed by the Company or the Purchaser to be
available;
and in such a case the amount of Taxation which could otherwise have
been relieved, allowed or credited by the relief allowance or credit
so lost or the amount of repayment which would otherwise have been
obtained shall be treated as an amount of Taxation for which a
liability has arisen; and
(f) references to the Agreement shall be construed as references to the
Agreement as amended or supplemented from time to time.
1.02 The expressions "the Company", "the Seller" and "the Purchaser" shall,
where the context permits, include their respective successors, personal
representatives and assigns.
2. INDEMNITY
Subject as hereinafter provided, the Seller hereby undertakes to indemnify
and keep indemnified the Purchaser (for itself and as trustee for the
Company) and the Company against any loss or liability suffered by the
Purchaser or the Company including, but not limited to, losses resulting
from any breach of representations, warranties or covenants contained in
this Deed or the Share Purchase Agreement and any diminution in the value
of the assets of or shares in the Company, any payment made or required to
be made by the Purchaser or the Company and any costs and expenses
incurred as a result of or in connection with any Claim falling on the
Company resulting from or by reference to any income, profits or gains
earned, accrued or received on or before the date hereof or any event on
or before the date hereof whether alone or in conjunction with other
circumstances and whether or not such is chargeable against or
attributable to any other person, firm or company.
3. EXCEPTIONS
The indemnities given by this Deed do not cover any Claim:
(a) to the extent that provision or reserve in respect thereof has been
made in the Accounts or to the extent that payment or discharge of
such Claim has been taken into account therein; or
(b) for which the Company is primarily liable as a result of
transactions in the ordinary course of its business after the
Accounting Date.
4. COSTS AND EXPENSES
The indemnities given by this Deed shall cover all costs and expenses (on
a full indemnity basis) incurred by the Purchaser or the Company in
connection with any Claim, and any penalties, fines or interest payable by
the Purchaser or the Company relating to any Claim for which the Seller is
liable under this Deed.
5. REIMBURSEMENT
In the event that any Claim the subject of an indemnity hereunder is or
has been discharged (whether by payment or by the loss of any relief,
allowance, credit or right to repayment of Taxation) or suffered by the
Company the indemnity given hereunder shall take effect as a covenant by
the Seller forthwith to reimburse the Company for any amount so paid or to
compensate the Company for any loss of relief, allowance, credit or right
to repayment so suffered.
6. SET-OFF AND DEDUCTIONS
All payments to be made by the Seller under this Deed shall be made in
full without set-off or counterclaim or any restriction or condition and
free and clear of any present or future taxes, duties, charges or other
deductions or withholdings of any nature. If any deduction or withholding
is required by law to be made from any such payment the Seller shall,
together with such payment, pay such additional amount as is necessary to
ensure that the recipient receives the full amount due hereunder.
7. WAIVER AND SEVERABILITY
No failure or delay by the Purchaser or the Company in exercising any
right, power or remedy under this Deed shall operate as a waiver thereof,
nor shall any single or partial exercise of the same preclude any further
exercise thereof or the exercise of any other right, power of remedy. If
at any time any provision of this Deed is or becomes illegal, invalid or
unenforceable in any respect, the legality, validity and enforceability of
the remaining provisions of this Deed shall not be affected or impaired
thereby.
8. ASSIGNMENT
The Purchaser and the Company may assign their respective rights and
benefits under this Deed.
9. NOTICES
Each notice, demand or other communication given or made hereunder shall
be in writing and delivered or sent to the relevant party at its address
or fax number set out below (or such other address or fax number as the
addressee has by five (5) days' prior written notice specified to the
other parties):
To the Seller: Name: Xx. Xxxx Xxx Xxxx
Address: Flat B, 16th Floor, 132
Broadway, Mei Foo Sun Chuen,
Kowloon, Hong Kong
Fax Number: (000) 0000 0000
To the Purchaser: Name: Immtech International, Inc.
Address: 000 Xxxxxxx Xxxxx, Xxxxx 000,
Xxxxxx Xxxxx, XX 00000,
Xxxxxx Xxxxxx of America
Fax Number: (000)-000-000-0000
Attention: Mr. T. Xxxxxxx Xxxxxxxx
To the Company: Name: Super Insight Limited
Address: 00xx Xxxxx, Xxx Xxxxxxxx
Xxxxxx, 0 Xxxxxxxxx Xxxxx,
Xxxxxxx,
Xxxx Xxxx
Fax Number: (000) 0000 0000
Attention: Xx. Xxx Ching Xxx Xxxx
Any notice, demand or other communication so addressed to the relevant
party shall be deemed to have been delivered (a) if given or made by
letter, when actually delivered to the relevant address; and (b) if given
or made by fax, when dispatched.
10. GOVERNING LAW; ARBITRATION
(a) Any dispute arising out of or in connection with this Deed of
Indemnity shall be exclusively settled by confidential arbitration
in Hong Kong at the Hong Kong International Arbitration Centre
according to its rules. The arbitration shall be conducted by three
arbitrators, one selected by the Purchaser, one selected by the
Seller, and the third by the two so selected within 21 days from the
date the relevant dispute arises. The judgment of a majority of the
arbitrators may be entered and enforced in any court of competent
jurisdiction. The arbitrators shall have no authority to amend this
Deed of Indemnity.
(b) This Deed shall be governed by and construed in all respects in
accordance with the laws of Hong Kong, without regard to its laws
regarding conflict of laws.
(c) The allocation of the costs relating to the arbitration as
contemplated in this Clause 10 shall be determined by the decree of
a majority of the arbitrators.
IN WITNESS WHEREOF this Deed has been executed on the day and year first above
written.
SIGNED, SEALED AND DELIVERED )
by /s/ Chan Xxx Xxxx )
---------------------------- )
Xx. Xxxx Xxx Xxxx )
in the presence of: )
/s/ Xxxxxx Xxx
-------------------------------
Xxxxxx Xxx
Solicitor; Hong Kong
Xxxxxx Xxxxxx White & XxXxxxxxx
SEALED with the COMMON SEAL OF )
IMMTECH INTERNATIONAL, INC. )
and SIGNED by )
/s/ T. Xxxxxxx Xxxxxxxx )
------------------------------- )
T. Xxxxxxx Xxxxxxxx )
its director(s)/ person(s) )
duly authorized by )
its Board of Directors )
in the presence of: )
SEALED with the COMMON SEAL OF )
SUPER INSIGHT LIMITED )
and SIGNED by )
/s/ Chan Xxx Xxxx )
------------------------------- )
Chan Xxx Xxxx )
its director(s)/ person(s) duly )
authorized by )
its Board of Directors )
in the presence of: )
/s/ Xxxxxx Xxx
-------------------------------
Xxxxxx Xxx
Solicitor; Hong Kong
Xxxxxx Xxxxxx White & XxXxxxxxx
