RIGHT OF FIRST REFUSAL AND CORPORATE OPPORTUNITIES AGREEMENT
Exhibit
10.12.2
RIGHT
OF FIRST REFUSAL AND
CORPORATE
OPPORTUNITIES AGREEMENT
This
RIGHT
OF FIRST REFUSAL AND CORPORATE OPPORTUNITIES AGREEMENT
(this
“Agreement”)
is
entered into as of the __th day of August, 2008, by and between Chardan 2008
China Acquisition Corp., a British Virgin Islands business company with limited
liability (the “Company”),
with
offices x/x Xxxxxxx Xxxxxxx, XXX, xx Xxxxx 00X, Xxxxx X, Oriental Kenzo Plaza,
00 Xxxxxxxxxxxxx Xxxxxx, Xxxxxxx, 000000, Xxxxx, and SUJG, Inc. (“SUJG”).
WHEREAS,
Xxxxx
Xxxxxx, Carret & Co., LLC, Maxim Group LLC and Xxxx Capital Partners, LLC,
acting as representatives (the “Representatives”)
of the
underwriters (the “Underwriters”),
have
entered into an underwriting agreement, dated _____ __, 2008, to underwrite
an
initial public offering (“IPO”)
of the
securities of the Company and embark on, undertake and continuing to participate
in the IPO process;
WHEREAS,
in
connection with the IPO, the Company has filed a Registration Statement, No.
333-152623 on Form F-1, as amended (the “Registration
Statement”),
with
the Securities and Exchange Commission for the registration, under the
Securities Act of 1933, as amended, of 6,875,000 units of the Company, each
unit
consisting of one ordinary share, par value $0.0001 per share (an “Ordinary
Share”)
and
one warrant to purchase one ordinary share;
WHEREAS,
SUJG
and the Company share certain officers and directors (the “Affiliates”);
and
WHEREAS,
because
each of the Company and SUJG
will
be seeking business opportunities in the People’s Republic of China, the parties
have made this Agreement to clarify the business opportunities for which each
party shall have the right of first refusal.
NOW,
THEREFORE,
in
consideration of the mutual covenants and agreements set forth herein, and
for
other good and valuable consideration, the receipt and sufficiency of which
are
hereby acknowledged, the parties hereto agree as follows:
1 Right
of First Refusal.
(a) For
the
term specified in Section 2 hereof, SUJG agrees to grant to the Company (i)
in
its certificate of incorporation or equivalent document, or (ii) by action
of
its board of directors and/or shareholders, as may be required under applicable
law governing SUJG, as applicable, a right of first refusal for corporate
opportunities with respect to any prospective target business or businesses
operating within any industry or sector in the People’s Republic of China as
well as the Hong Kong Special Administrative Region and the Macau Special
Administrative Region, but not Taiwan, that have a fair market value reasonably
estimated to be $42 million or more (a “Suitable
Target Business”).
(b) Decisions
by the Company to release SUJG to pursue a Suitable Target Business must be
made
by unanimous consent of the Company’s disinterested directors.
(c) Any
directors, officers or employees of SUJG who become aware of a Suitable Target
Business shall provide written notice to the Company within five (5) business
days.
(d) Any
right
of
first refusal granted pursuant to this Agreement shall expire ninety
(90)
days
from the date of the written notice (the “Expiration
Date”).
(e) SUJG
further agrees that it will not enter into any agreement with a Suitable Target
Business until the earlier of (i) its receipt of written notification of the
Company’s determine not to pursue a Business Combination (as hereinafter
defined) with the Suitable Target Business, or (ii) the Expiration Date.
Notwithstanding the foregoing, the term “Business Combination” shall not include
any company with respect to which SUJG has initiated any contacts or entered
into any discussions, formal or informal, or negotiations regarding a company
being acquired by SUJG prior to the date hereof.
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2. Term. This
Agreement shall commence upon the effective date of the Company’s Registration
Statement and extend until the earlier of: (i) the consummation of the Company’s
initial Business Combination, (ii) the Company’s liquidation, or (iii) until
such time as the Affiliate ceases to be an officer or director of the Company,
each in the circumstances and manner as more fully described in the Registration
Statement (the “Term”).
3. Miscellaneous.
(a) As
used
herein, the term “Business
Combination”
shall
mean the initial acquisition by the Company, by capital merger, share exchange,
assets or share acquisition, exchangeable share transaction, contractual control
arrangement or any other similar business combination, of a business or
businesses having its primary operations in the People’s Republic of China,
including the Hong Kong Special Administrative Region and the Macau Special
Administrative Region, but not Taiwan.
(b) Any
notice, consent or request to be given in connection with any of the terms
or
provisions of this Agreement shall be in writing and shall be sent by express
mail or similar private courier service, by certified mail (return receipt
requested), by hand delivery or by facsimile transmission:
if
to the
Company, to:
x/x
Xxxxxxx Xxxxxxx, XXX
Xxxxx
00X, Xxxxx X
Xxxxxxxx
Kenzo Plaza
00
Xxxxxxxxxxxxx Xxxxxx
Xxxxxxx,
000000, Xxxxx
Fax
No.:
00-00-00000000
Attn:
Xxxxxxxx Xxxxx, Chief Financial Officer
with
a
copy in each case to:
Xxxxxxxxxx
& Xxxxx LLP
000
Xxxxxxxxx Xxxxxx, 00xx Xxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Fax
No.:
(000) 000-0000
Attn.:
Xxxx X. Xxxxxxx, Esq.
and
Xxxxx
Xxxxxx, Carret & Co., LLC
000
Xxxxxxxxx Xxxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Fax
No.:
(000) 000-0000
Attn.:
Xxxxxxx XxXxxxxx
and
Maxim
Group LLC
000
Xxxxxxxxx Xxxxxx, 0xx Xxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Fax
No.:
(000) 000-0000
Attn.:
Xxxxxxxx Xxxxxx
2
and
Xxxx
Capital Partners, LLC
00
Xxxxxxxxx Xxxxx
Xxxxxxx
Xxxxx, Xxxxxxxxxx 00000
Fax
No.:
(000) 000-0000
Attn.:
Xxxxx Xxxxxxxxxxxxxxx
and
Xxxxxxxx
Xxxxxxxx & Schole LLP
000
Xxxx
00xx Xxxxxx, 00xx Xxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Fax
No.:
(000) 000-0000
Attn.:
Xxxxxxxx X. Xxxxxxxxxx, Esq.
if
to
SUJG, to:
SUJG,
Inc.
x/x
Xxxxxxx 0000 Xxxxx Acquisition Corp.
Suite
18E, Tower A
Oriental
Kenzo Plaza
00
Xxxxxxxxxxxxx Xxxxxx
Xxxxxxx,
000000, Xxxxx
Fax
No.:
00-00-00000000
Attn.:
Xxxxx Xxxxxxx
with
a
copy to:
Xxxxxxxxxx
& Xxxxx LLP
000
Xxxxxxxxx Xxxxxx, 00xx Xxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Fax
No.:
(000) 000-0000
Attn.:
Xxxx X. Xxxxxxx, Esq.
(c) If
any
provision of this Agreement shall be declared to be invalid or unenforceable,
in
whole or in part, such invalidity or unenforceability shall not affect the
remaining provisions hereof which shall remain in full force and
effect.
(d) Neither
this Agreement nor any rights or obligations hereunder shall be assignable
or
otherwise subject to hypothecation by either party hereto.
(e) This
Agreement may only be amended by a written instrument executed by each of the
parties hereto. Notwithstanding the foregoing, this Agreement may not be waived
or amended to provide for its termination prior to the expiration of the Term
without the approval of the holders of 80% of the Company’s Ordinary Shares
purchased in the IPO.
(f) The
respective rights and obligations of the parties hereunder shall survive any
termination of this Agreement to the extent necessary to the intended
preservation of such rights and obligations. The provisions of this Section
7
are in addition to the survivorship provisions of any other section of this
Agreement.
(g) SUJG
hereby (i) waives any and all right, title, interest or claim of any kind (a
“Claim”)
in or
to all funds held in the trust account established for the benefit of the public
shareholders of the Company (the “Trust
Account”)
and
any remaining net assets of the Company upon liquidation of the Trust Account
and dissolution of the Company, (ii) waives any Claim SUJG may have in the
future as a result of, or arising out of, any contracts or agreements with
the
Company, and (iii) agrees it will not seek recourse against the Trust Account
for any reason.
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(h) This
Agreement shall be governed by and construed and enforced in accordance with
the
laws of the State of New York, without giving effect to conflicts of law
principles that would result in the application of the substantive laws of
another jurisdiction. The undersigned hereby (i) agrees that any action,
proceeding or claim against him arising out of or relating in any way to this
letter agreement (a “Proceeding”)
shall
be brought and enforced in the federal courts of the United States of America
for the Southern District of New York, and irrevocably submits to the
jurisdiction of such courts, which jurisdiction shall be exclusive; (ii) waives
any objection to the exclusive jurisdiction of such courts and any objection
that such courts represent an inconvenient forum; and (iii) irrevocably agrees
to appoint Xxxxxxxxxx & Xxxxx LLP (Attention: Xxxx X. Xxxxxxx) as agent for
the service of process in the State of New York to receive, for the undersigned
and on its behalf, service of process in any Proceeding. If for any reason
such
agent is unable to act as such, the undersigned will promptly notify the Company
and the Underwriters and appoint a substitute agent acceptable to each of the
Company and the Underwriters within thirty (30) days and nothing in this
Agreement will affect the right of either party to serve process in any other
manner permitted by law.
(i) THE
PARTIES HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED
UPON, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT AND THE TRANSACTION
CONTEMPLATED BY THIS AGREEMENT.
(j) This
Agreement contains the entire understanding between the parties hereto and
supersedes in all respects any prior or other agreement or understanding
concerning the subject matter hereof between the Company and SUJG
(k) This
Agreement may be executed in two or more counterparts, each of which will be
deemed an original, but all of which, taken together, shall be deemed one
document.
(l) The
failure of any of the parties hereto to at any time enforce any of the
provisions of this Agreement shall not be deemed or construed to be a waiver
of
any such provision, nor to in any way effect the validity of this Agreement
or
any provision of this Agreement. No waiver of any breach, non-compliance or
non-fulfillment of any of the provisions of this Agreement shall be effective
unless set forth in a written instrument executed by the party or parties
against whom or which enforcement of such waiver is sought; and no waiver of
any
such breach, non-compliance or non-fulfillment shall be construed or deemed
to
be a waiver of any other or subsequent breach non-compliance or
non-fulfillment.
(m) The
parties hereto hereby acknowledge that the Underwriters, including, without
limitation the Representatives, are third party beneficiaries of this Agreement
and this Agreement may not be modified or changed without the prior written
consent of the Representatives.
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IN
WITNESS WHEREOF,
the
parties hereto have executed this Right of First Refusal and Corporate
Opportunities Agreement as of the date first specified above.
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By:
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Name:
Xxxxx Xxxxxxx
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Title:
Chief Executive Officer and
Director
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SUJG,
INC.
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By:
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Name:
Xxxxx Xxxxxxx
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Title:
Managing Memeber
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