CAPITAL CONTRIBUTION AGREEMENT
EXHIBIT
4.19
In
accordance with the Company Law of the People's Republic of China and other
relevant laws and regulations, Jilin Jinong High Technology Development Joint
Stock Limited Company, Beijing Origin Seed Joint Stock Limited Company, Xx.
Xxxx
Wanzhong, Mr. Xxx Xxxx, Xx. Xxxxx Shouzhi, Xx. Xxxxx Jidan, Xx. Xx Xxxxxxx
and
Xx. Xx Guoan, through friendly consultation, unanimously agree to invest in
establishing a limited liability company (hereinafter referred to as “the
Company” or “the New Company”), and hereby enter into this Agreement, which
shall be complied by each party hereto.
Article
I Contributors
Party
A:
Jilin Jinong High Technology Development Joint Stock Limited
Company
Address:
Xx. 000 Xxxx Xx Xxx Xxxxxx, Xxxx Xxxxxxx, Jilin
Legal
Representatives: Chen Wanzhong
Party
B:
Beijing Origin Seed Joint Stock Limited Company
Addressæ2E201,
Xxxxxxxxxxxx Xxxxxxxxxxx Xxxxxxxx 0xx xxxxx,
XX.00
Xxxxxxx Information Road, Haidian District, Beijing
Legal
Representatives: Xxx Xxxxxxxx
Party
C:
Xx. Xxxx Wanzhong
ID
Number: 220319540519041
Addressæ9-17,
Xxxxx Xxx, Tiebei Street, Gong Zhuling, Jilin
Party
D:
Mr. Caizhuo
ID
Number: 220319560706081
AddressæNo.6,
Xxxxxxx Xxx, 0xx
Xxxxxxxx, Xxxxxx Xxxxxx, Xxxx Xxxxxxx, Jilin
Party
E:
Xx. Xxxxx Shouzhi
ID
Number: 220319530917043
Addressæ3-11,
Min’an Wei, Dongsan Street, Gong Zhuling, Jilin
Party
F:
Xx. Xxxxx Jidan
ID
Number: 220319600426045
Addressæ9-53,
Xxxxxxxx Xxx, Dongsan Street, Gong Zhuling, Jilin
Party
G:
Xx. Xx Yueying
ID
Number: 220319660815082
Addressæ6-12,
Xxxxx Xxx, Tiebei Street, Gong Zhuling, Jilin
Party
H:
Xx. Xx Guoan
ID
Number:
220319571002043
Addressæ4-27,
Min’an Wei, Dongsan Street, Gong Zhuling, Jilin
Article
II Establishment
of the Limited Liability Company
2.1 |
The
Company is temporarily named as Jinong High Technology Seed Ltd.
(The name
to be examined and approved by the registration authority of industry
and
commerce shall prevail.).
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2.2 |
The
registered address of the Company is Xx.0000, Xxxxx Xxxxxx, Jing
Yuetan
Tourism development Zone, Changchun,
Jinlin.
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2.3 |
The
business scope of the Company includes: breeding, production, sales
and
services of agricultural seeds, economic crops; production, processing,
and sales of agricultural fertilizer and pesticide; processing of
agricultural by-products; pasture products and livestock products
of lawn,
flowers, gardening; export of self-manufactured products and related
techniques of our company and member enterprises of our company (except
those restricted to be operated by companies or prohibited to be
exported
by the government); import of raw and auxiliary materials, mechanical
equipment, apparatus and meters, spare parts and related techniques
necessary for the production and scientific research by our company
and
member enterprises (except those restricted to be operated by companies
or
prohibited to be exported by the government); processing imported
materials by our company and three types of processing plus compensation
trades; sale and purchase of grain and oil (direct purchase of corn
and
paddy in the primary market is not permitted); sale and purchase
of
livestock products (except the varieties restricted by the
government).
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2.4 |
The
term of the Company is ____ years.
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Article
III Registered
Capital and Capital Contribution
3.1 |
The
registered capital of the Company is RMB30,000,000. The amount and
form of
the contribution capital of each Party are as followsæ
|
Contributor
|
Contribution
Subscribed (RMB)
|
Form
|
Proportion
|
Party
A
|
10,050,000
|
non-monetary
properties
|
33.5%
|
Party
B
|
10,050,000
|
currency
|
33.5%
|
Party
C
|
4,500,000
|
currency
|
15%
|
Party
D
|
1,800,000
|
currency
|
6%
|
Party
E
|
1,500,000
|
currency
|
5%
|
Party
F
|
1,500,000
|
currency
|
5%
|
Party
G
|
300,000
|
currency
|
1%
|
Party
H
|
300,000
|
currency
|
1%
|
3.2 |
The
contribution capital in non-monetary
properties
made by Party A mainly includes the corn seeds legitimately owned
by it,
and the value of which shall be assessed and evaluated by an evaluation
institution approved by all Parties. The detailed list of such
non-monetary properties and its related liabilities, its related
qualification and title certificates are attached as Annex I.
|
3.3 |
It
is acknowledged by each party that, whenever the Company is formally
set
up, all the profits and losses derived from the contribution capital
in
the non-monetary properties made by Party A as of January 1st
2006 shall be the properties of the New Company, and such properties
shall
be incorporated into the financial statement of the New Company after
its
establishment. The relevant business qualification of Party A shall
be
transferred to the New Company, and Party A shall no longer be engaged
in
any businesses competing with the New
Company.
|
3.4 |
It
is acknowledged by each party that, each Party shall subscribe its
respective capital in a lump sum and in full within 20 days after
the
execution of this Agreement. The contribution capital in currency
shall be
deposited in the bank account opened for the Company, and the contribution
capital in
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non-monetary
properties shall be transferred to the Company through proper property transfer
procedure. All business related to the Company shall be conveyed from Party
A to
the Company. The Company shall carry on such businesses, go through the
necessary procedures for the changes of the principals of the contract, and
execute corresponding supplementary agreements. In respect of any credits
involved, the consent of the creditors shall be obtained, and in respect of
any
debts involved, the debtors shall be informed.
3.5 |
Party
A agrees that the new Company has the exclusive right to use and
manage
the fixed assets and other properties (hereinafter referred to as
“affiliated assets” and detailed list is attached as Annex II) of Party A
, which is necessary to and closely connected with the operation
of the
contribution capital in non-monetary properties made by Party A,
but not
contributed to the New company free of charge during the term of
the New
Company. The use and maintenance of such affiliated assets shall
be at the
Company’s expense. In respect of the use of such affiliated assets, Party
A and the New Company shall otherwise execute an
agreement.
|
3.6 |
Party
A agrees that the new Company has the exclusive right to use the
intangible assets øvarieties
rights and trademarks÷of
Party A which are not contributed to the New Company free of charge
during
the term of the Company. Party A and the new Company shall otherwise
sign
another agreement in respect of the use of such intangible
assets.
|
3.7 |
After
the contribution of each Party has been verified by the legitimate
capital
verification institution, Party A shall designate persons to go through
the establishment registration procedure of the Company with the
relevant
industry and commerce authority, which is supposed to be completed
prior
to _____, 2006.
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Article
IV Rights
and Responsibilities
4.1 |
Each
Party has the full authority to enter into this Agreement and to
perform
its obligation hereunder.
|
4.2 |
Each
Party enjoys its shareholder’s rights and assumes its shareholder’s
responsibilities in proportion to its respective contribution capital,
including
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proportionally
sharing profits, risks and losses, and is liable for the Company’s debts to the
extent of its respective capital subscribed.
4.3 |
Each
Party shall, in accordance with the provisions of this Agreement,
timely
perform its obligation of contribution in full, shall be the legitimate
owner of its respective contribution capital , and shall warrant
that its
respective contribution capital is free from any security, any contingent
liabilities and any other potential liabilities, as well as any dispute,
arbitration or litigation against such contribution capital, and
that such
contribution capital is not subject to any other privileged or similar
rights.
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4.4 |
After
the establishment of the Company, each Party shall not withdraw its
contribution capital, and shall assign it in accordance with the
Articles
of Association.
|
4.5 |
Each
Party shall warrant that it has not signed any contract or agreement
conflicting with this Agreement, and will not assign the rights and
liabilities thereunder to any third
party.
|
4.6 |
Each
Party agrees to take all necessary actions to sign and obtain all
legal
documents necessary to implement this Agreement, and to cooperate
for
timely registration of the Company.
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Article
V Organizational
Structure
5.1 |
The
shareholders’ meeting is the Company's authority. Any adoption of a
resolution by the shareholder meeting requires affirmative votes
by
shareholders representing two-thirds of the voting
rights.
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5.2 |
The
Company shall set up a board of directors, which shall be composed
of 5
directors. Party A and Party B have the right to nominate 2 candidates
respectively, and the other Parties jointly nominate 1 candidate.
The chairman of the board shall be nominated by Party C and shall
be an
elected director; one vice-chairman shall be nominated by Party B
and
shall be an elected director.
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5.3 |
The
Company shall have one general manager who shall be nominated by
Party B,
and 5 deputy general managers nominated by Party A, B and
C.
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5.4 |
The
Company shall set up a board of supervisors, which shall be composed
of 3
supervisors. Party A and Party B have the right to nominate 1 candidate
respectively, and the other Parties jointly nominate 1
candidate.
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Article
VI Liabilities
for Breach
6.1 |
Each
Party shall strictly comply with this Agreement, and any non-observance
of
any provisions herein shall constitute a breach. The observant Party
has
right to terminate this Agreement and claim compensation for all
its
economic losses arising from such breach, but the compensation shall
not
exceed the possible losses of the other Parties caused by such breach
which has been foreseen or ought to foreseen when the breaching-party
enters into this Agreement.
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6.2 |
Any
Party, who fails to fully subscribe its capital in accordance with
Article
III therein, shall, from the first month after the due date, pay
liquidated damages which equals to 5‰ of its payable contribution capital
for each overdue month. If the contribution capital is overdue for
3
months, besides paying such aggregative liquid damages, the observant
Party is entitled to terminate this Agreement and claim compensation
against the breaching Party.
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Article
VII Force
Majeure
7.1 |
“Force
Majeure” shall mean any event, occurring after the execution date of this
Agreement, which are beyond the control of or unforeseeable to the
Parties
to this Agreement, or can not be avoided although it is foreseeable,
and
which prevent total or partial performance by either of the parties.
Such
events shall include but not limited to acts of God, war, policy
adjustment, changes of laws, and other significant events or
emergencies.
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7.2 |
If
any Party is prevented from performing its obligation hereunder as
a
result of the occurrence of an event of force majeure, such Party
shall
notify the other Parties without any delay in the most convenient
way
within fifteen (15) days after the occurrence of such event and shall
specify in detail the event of force majeure in the written notice.
Under
these circumstances, the affected Party shall be obliged to take
all
reasonable steps to eliminate the impact
of
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the
event
of force majeure and minimize the losses caused to other Parties. The Parties
shall, on the basis of the impact of the event on the implementation of this
Agreement, determine whether or not to terminate or postpone this Agreement,
or
partly or totally exempt the affected Party from its liabilities
herein.
Article
VIII Dispute
Settlement and Applicable Law
8.1 |
Any
dispute arising from or in connection with this Agreement shall be
settled
through friendly consultations. If such consultation fails, any Party
may
submit the dispute to a competent court for litigation. Except for
the
matter in dispute, all Parties shall continue to perform the other
provisions of this Agreement during the resolution of such
dispute(s).
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8.2 |
The
execution, validity, interpretation, performance and the dispute
settlement in connection with this Agreement shall be governed by
the laws
of PRC.
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Article
IX Effectiveness
9.1 |
This
Agreement shall become effective upon the execution by the legal
representative of each Party and principals or their authorized
representatives.
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Article
X Confidentiality
10.1 |
The
Parties shall strictly maintain the confidentiality of the consultation,
execution course and provisions of this Agreement, as well as all
information, documents, data etc. of the other sides obtained during
the
performance of this Agreement (collectively referred to as “the
Confidential Information”). Unless it is compulsory provided by laws,
regulations or government, any Party shall not, in the form of act
or
omission, disclose the Confidential Information to the third party
other
than the persons with the right to know including persons or professional
consultants etc. participating in the share transfer
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Article XI Variation, Termination and Amendment
11.1 |
Any
variation to this Agreement shall be made through consultations and
come
into force only after a written amendment has been signed by all
Parties.
This Agreement shall remain effective, if the amendment cannot be
reached.
Without confirmation and execution of each Party, any amendment,
interpretation or waive to any provision herein is
invalid.
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11.2 |
Based
on consultations between each Party, this Agreement may be terminated
in
writing by each Party.
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11.3 |
Each
Party may execute supplementary agreements in respect of the matters
related to this Agreement and it shall have the same legal effects
as this
Agreement.
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Article
XII Miscellaneous
12.1 |
This
Agreement is the entire agreement between the Parties hereto regarding
the
subject matter hereof,, and constitutes the manifestation of unanimous
intention of all Parties together with any appendix. This Agreement
shall
supersede any prior oral or written intention, communication,
understanding and so forth in respect of any proposed transaction
hereof
made before the execution date of this Agreement. The Articles of
Association made in accordance with this Agreement shall be deemed
to be
part of this Agreement, and if there is any conflict between them,
this
Agreement shall prevail or the Articles of Association may be amended
in
accordance with this Agreement.
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12.2 |
The
headings of the sections have been added for convenience only and
shall
not affect the meaning nor be interoperated this
Agreement.
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12.3 |
This
Agreement shall be made in Chinese in 6 originals, and each Party
holds
one. Each Party may sign a counterpart of this Agreement, and each
counterpart shall have the same legal effects as the originals.
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