DATED 19TH DAY OF FEBRUARY 2008 JOINT VENTURE AGREEMENT
Exhibit
10.8
DATED 19TH DAY OF FEBRUARY
2008
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(1)
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INTERMOST
CORPORATION
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|
(2)
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ENTITIES
AND/OR INDIVIDUALS COLLECTIVELY REFERRED TO AS
“INVESTORS”
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________________________________________________
________________________________________________
Xxxx
& Partners
Solicitors
10th
Floor Chiyu Bank Building
00
Xxx Xxxxx Xxxx Central
Hong
Kong
Ref:
01/01/10184/01
THIS AGREEMENT is made on the
19th day of February 2008
BETWEEN:
(1)
|
INTERMOST CORPORATION,
is a company listed on the OTCBB with its office at 00xx Xxxxx, X00-00
Xxxxxx Xxxxxxxx, Xxxxxx Xxxx (Xxxxx), Xxxxxxxx, 000000, Xxxxxx’x Xxxxxxxx
xx Xxxxx (“IMOT”);
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(2)
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Entities
and/or individuals more particularly set out in Schedule 1 herein.
(collectively referred to as “Investors”).
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WHEREAS:
(A)
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IMOT
is a company listed on the OTCBB.
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(B)
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Xxxxxx.xxx
Investment Consultant (Shenzhen) Company Limited, Xxxxxx.xxx Technology
(Shenzhen) Company Limited, Xxxxxx.xxx E-Commerce Company Limited,
Shenzhen International Hi-Tech Property Right Exchange Center 深圳國際高新技術產權交易所,
Hainan S.E.Z Property Rights Exchange Center 海南經濟特區產權交易中心
and Xxxxxx.xxx Advertising中貿網視點廣告
(those English company names are translated from their Chinese company
names) are wholly-owned subsidiaries or related companies of IMOT and are
all involved in the business relating to the China Equity Exchange
Platform (xxx.xxxxxx.xxx)
with agreed value of US$1.5 million. (“Chinae”). A
group structure of Chinae is annexed as Annexure
“A”.
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(C)
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On
5th September 2007, the board of directors of IMOT has resolved to
restructure and to incorporate a new corporation for the purpose of
continuing the business of Chinae and to apply for separate listing on the
OTCBB (“the Resolution”).
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(D)
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IMOT
and the Investors will incorporate a new company under the laws of British
Virgin Islands with limited liability (the “JV Company”) in
accordance to the terms of a Chinese letter of intent (認購投資意向書)
(“the Letter of
Intent”).
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(E)
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The
parties hereto wish to enter into this Agreement to provide rights and
duties and further regulate their respective responsibilities towards
management of the business and affairs of the JV
Company.
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NOW IT IS HEREBY AGREED
as follows:
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1.
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INTERPRETATION
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1.01
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In
this Agreement, unless the context requires otherwise the following
expressions shall have the following meanings
:-
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1
“Accounts”
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means
the unaudited balance sheet and operations of Intermost Focus Advertising
Company Ltd, XxxxxX.xxx Information Technology Ltd, XxxxxX.xxx Investment
Consultant (Shenzhen) Ltd, XxxxxX.xxx – SI and XxxxxX.xxx Technology
(Shenzhen) Ltd are as at 30th November 2007, copies annexed as Annexure
“B”;
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“Agreement”
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means
this agreement or as it may from time to time be supplemented or
amended;
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“Articles”
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means
the Memorandum and Articles of Association of the JV Company
;
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“Board
of Directors”
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means
the board of directors of the JV Company;
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“Business
Day”
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means
a day on which banks in Hong Kong are open for normal banking business
(excluding Saturdays and Sundays);
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“BVI”
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means
the British Virgin Islands;
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“Xx.
Xxxx”
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means
Xxxx Xxxxx Xxxxx (xxx),
holder of PRC Identity Card No.440301660504561;
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“Directors”
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means
directors of the JV Company ;
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“Hong
Kong”
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means
the Hong Kong Special Administrative Region of the People’s Republic of
China;
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“Letter
of Intent”
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means
the Chinese letter of intent認購投資意向書agreed
by the parties herein, copy of which is annexed as Annexure
“C”;
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“OTCBB”
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means
Over The Counter Bulletin Board;
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“PRC”
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means
the People’s Republic of China;
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“Resolutions”
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means
the resolutions passed by the board of directors of IMOT on 5th September
2007, copy of which is annexed as Annexure “D”;
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“Shareholders”
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means
collectively IMOT and the Investors and/or any person holding any Share
from time to time, and “Shareholder” means any one of them;
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2
“Shares”
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means
the ordinary shares of US$0.01 in the capital of
the JV Company together with all rights
attaching thereto;
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“Shares
Transfer Provisions”
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means
the provisions herein relating to the transfer
of Shares;
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“Territories”
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means
PRC;
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“US”
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means
United States of America.
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1.02
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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).
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1.03
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References
herein to Clauses and Schedules are to clauses in and schedules to this
Agreement unless the context requires otherwise and the Schedule to this
Agreement shall be deemed to form part of this
Agreement.
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1.04
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The
expressions “IMOT”, the “Investors” and the “JV Company” shall, where the
context permits, include their respective successors and permitted
assigns.
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1.05
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The
headings are inserted for convenience only and shall not affect the
construction of this Agreement.
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1.06
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References
to “persons” shall include bodies corporate, unincorporated associations
and partnerships (whether or not having separate legal
personality).
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1.07
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Unless
the context requires otherwise, words importing the singular include the
plural and vice versa and words importing a gender include every
gender.
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1.08
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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.
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2. THE JOINT
VENTURE
2.01
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Subject
to the terms of the Resolutions and Letter of Intent, IMOT and the
Investors shall promote the JV Company as a joint venture between
them.
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3
2.02
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The
JV Company shall continue to carry on the business of Chinae, or such
variation, extension or limitation of those activities as may be made from
time to time in accordance with this
Agreement.
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2.03
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IMOT
undertake and agree to exercise the best endeavours to approve and/or
assist the spin off the Chinae and the listing of the JV Company in
OTCBB.
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2.04
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The
parties expressly agreed that the post-restructure of IMOT will be as set
out in Annexure “A” herein.
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3 CONDITIONS
3.01
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The
provisions of this Agreement (other than this clause 3) are conditional
on:
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(a)
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the
terms of this Agreement being approved by the board of directors of IMOT
and in compliance with the memorandum and articles of associations of the
JV Company and IMOT; and
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(b)
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the
completion of the incorporation of the JV Company;
and
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(c)
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the
Accounts represent a true and complete picture of the financial status of
the individual companies and there being no material difference between
the date of the Accounts and at
Completion.
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4.
COMPLETION
4.01
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Within
5 Business Days after the fulfilment or waiver of the conditions set out
in clause 3.01, the parties shall comply with their obligations under
clause 4.03, 4.04 and 4.05.
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4.02
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Completion
shall take place at such other place or time as the parties may
agree.
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4.03
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IMOT
and the Investors shall procure that an extraordinary general meeting of
the JV Company is duly convened and held at which there are proposed and
passed an ordinary resolutions of the JV Company to allot and issue the
Shares referred to in clause 4.04 on the terms referred to
therein.
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4.04 Forthwith
upon the provisions of clause 4.03 being complied with—
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(a)
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JV
Company to allot 60,000,000 Shares to IMOT in return of provision of
assets to the JV Company for cash at par based on the agreed value of
Chinae at US$1.5 million PROVIDED that out of the said 60,000,000 Shares
to be subscribed by IMOT, 11,000,000 Shares shall be stakehold by Messrs.
Xxxx & Partners, Solicitors of 10th Floor, Chiyu Bank Building, 00 Xxx
Xxxxx Xxxx Central until the intended listing on the OTCBB. If
the intended listing is unsuccessful, the said 11,000,000 Shares shall be
transferred to the Investors in accordance with clause 4.04
herein;
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4
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(b)
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JV
Company to allot 40,000,000 Shares to the Investors at the subscription
price of US$0.025 per share;
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(c)
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The
Investors shall each pay to the JV Company the subscription moneys in
respect of the Shares subscribed for into the following bank
account:
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Beneficiary
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:
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XXXX
& PARTNERS
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Bank
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:
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The
Hongkong & Shanghai Banking
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Corporation
Limited
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||
Address
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:
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Ground
Floor, Tin On Building,
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000
Xxxxxx Xxx Xxx Xxxx, Xxxxxxx, Xxxx Xxxx
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||
Bank
Account No. (HK$)
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:
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000-000000-000
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Bank
Swift
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:
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XXXXXXXXXXX
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or
any designated accounts given by the Board of
Directors;
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(d)
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IMOT
and the Investors shall each appoint one nominee as a Director and jointly
appoint Xx. Xxxx as the third
Director;
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(e)
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IMOT
shall transfer the ownership of Chinae to the JV Company with the PRC
lawyer’s assistance and all costs of transfer shall be borne by the JV
Company;
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(f)
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the
Board shall pass such other resolutions and do such other things as are
necessary in order to comply with the provisions of clause
7.
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4.05
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If
the listing failed, the new investors shall receive a total of 11,000,000
shares from the JV Company and their total share holding shall be 51%.
However, disposal or movements of the Assets of the JV Company must obtain
two-third of the total shareholders’
approval.
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5.
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INTENDED LISTING ON
OTCBB
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5.01
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It
is expressly agreed that IMOT and the Investors intend to list the JV
Company on the OTCBB.
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5.02
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All
parties agree to appoint Yorkshire Capital Limited as consultant for the
listing and the remuneration shall be agreed in due
course.
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6.
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MANAGEMENT OF THE JV
COMPANY
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6.01
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The
Board of Directors shall comprise of no less than 3 Directors. IMOT shall
appoint 2 directors, one of them being Xx. Xxxx and the Investors shall
appoint 1 director. Those persons shall be appointed as directors of the
JV Company pursuant to the
Articles.
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5
6.02
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Xx.
Xxxx shall be appointed as the first Chairman of the Board pursuant to the
Articles until the first AGM of the JV
Company.
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6.03
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After
the signing of this Agreement, IMOT shall appoint Xx. Xxxx to be its
representative to handle, negotiate and enter into agreements in relation
to the accounting and legal arrangement in preparation of the intended
listing of the JV Company.
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6.04
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Meetings
of the Board shall take place at such time or times as may be required but
not in any event at intervals of more than three months calculated from
the date of Completion. Unless otherwise agreed in writing by all the
Directors, at least seven (7) clear Business Days’ notice in writing shall
be given of each meeting of the Board, which notice shall specify in as
great a detail as is practicable the business to be considered at the
meeting.
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6.05
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The
quorum necessary to constitute a meeting of the Board shall be 2 except
those Reserved Matters set out in Clause
7.
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6.06
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Save
and except Clause 7.02, any question arising at any meeting of the
Directors shall be decided by all of the Directors (or their alternates)
present or by written resolutions.
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6.07
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Subject
to Clause 6.08, for efficient and smooth operation of the JV Company, the
Chairman of the Board shall be empowered to handle and authorise the
day-to-day operations of the JV Company, including the payments of rent,
salaries etc PROVIDED that the Chairman of the Board will, upon request,
provide to the Board a detailed account of all such payment authorised by
him. Other major decisions involving large capital investment shall be
resolved by the Board.
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6.08
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The
JV Company will maintain 2 bank accounts with initial deposit of
US$500,000.00 each from the Investors investment
money:
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(a)
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account
A (open in Hong Kong) will be operated by Xx. Xxxx and a representative of
IMOT jointly and used for the purpose of listing costs by budget which has
pre approved from the Board of
Directors.
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(b)
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account
B (open in PRC) will be operated by Xx. Xxxx and a representative of the
Investors jointly and used for the purpose of to cover all daily operation
expenses.
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(c)
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written
consent from the other party shall be required for withdrawal from either
account over and above the respective
limit.
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6.09
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The
renumeration of Xx. Xxxx will be decided by the
Board.
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6
6.10
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Quarterly
Management Account
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A
quarterly unaudited statements of profit and loss and balance sheets
prepared in accordance with US Acceptable Accounting Standards &
Principals must be submitted to IMOT for review and reporting to public
and in accordance with a format to be delivered to the JV Company from
IMOT.
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6.11
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Dividends
paid or to be paid by Shenzhen High-Tech Equity Exchange in 2007 to IMOT
and thereafter shall be distributed in accordance with the shareholdings
of JV Company.
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7.
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RESERVED
MATTERS
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7.01
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Except
in respect of any matter expressly provided for herein, for the purposes
of this Agreement the following matters are Reserved Matters which
required 3 directors to approve—
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(a)
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save
and except in the event of inadequacy of operation expenses, Xxxx will be
responsible to raise further fund/loan to perform the listing, the
creation or issue of any share or loan capital or any obligation
convertible into share capital or loan capital or increase of authorised
shares of the JV Company must be approved by 3
directors;
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(b)
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the
grant of any option of the JV
Company;
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(c)
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the
consolidation, sub-division or alteration of any rights attached to any
share capital of the JV Company, the purchase by the JV Company of its own
shares, the reduction of its share capital, the capitalisation of any
amount standing to the credit of any reserve of the JV Company or the
reorganisation of any of the share capital of the JV
Company;
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(d)
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the
incorporation or acquisition of any subsidiary or the subscription for or
the acquisition of any shares or other securities or interest in any
company;
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(e)
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the
giving of any guarantee or indemnity not in the ordinary course of
business;
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(f)
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the
declaration and/or payment of any dividend otherwise than in accordance
with clause 8;
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(g)
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the
grant to any person of a right to appoint any director of the JV Company,
the entering into of any agreement for the management of the JV Company or
the incurring of any management
charges;
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(h)
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the
appointment or removal of the Auditors (other than the re-appointment of
the first auditors of the JV
Company);
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7
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(i)
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the
changing of any of the accounting principles or conventions of the JV
Company, otherwise than as required by law or in order to comply with any
applicable statement of standard accounting practice or Financial
Reporting Standard;
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(j)
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the
alteration of any provision of the Memorandum or Articles or the passing
of any resolution inconsistent with any such
provision;
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(k)
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the
provision of any credit or making of a loan or advance for any person
other than in the normal course of the
Business;
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(1)
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any
material variation, extension or limitation of the nature or scope of the
Business;
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(m)
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the
commencement or defence of any legal proceedings or arbitration, other
than routine debt collection;
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(n)
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the
purchase, lease or acquisition of any site or building for use in the
Business and/or any immovable property which is substantial in relation to
the JV Company or the acquisition of any other
business;
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(o)
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the
sale, lease, transfer, mortgage, charge, pledge or other disposition of
the whole or a substantial part of the JV Company’s undertaking or any
material asset of the JV Company or any agreement to effect any of the
foregoing;
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(p)
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any
transaction between the JV Company and any Shareholder (or any Member of
its Group) otherwise than on arm’s length
terms;
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(q)
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the
presentation of any petition or passing of any resolution for the JV
Company to be put into administration or to be wound up;
and
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(r)
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the
borrowing of any money or giving of any guarantee, indemnity or
security.
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7.02
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All
matters will be conducted in accordance to the provisions of the
memorandum and articles of associations of the JV Company including but
not limited to 2 matters, 2 directors’ approval is
sufficient:-
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(i)
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In
case of insufficient operation expense i.e. available cash bank balance
below US$200,000.00, Xxxx can raise further fund from Investors or other
investor to perform the listing but the said subscribed price cannot be
lower than US$0.025 per Share.
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(ii)
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Placement
to any investors with placement price not less than US$0.025 per
Share.
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8
7.03
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Notwithstanding
anything to the contrary in this Agreement or the provisions of the
memorandum and articles of associations of the JV Company, should there be
any matters in Clauses 7.01 and 7.02 related to the creation, issue or
subscription of any Shares, the price of the Share cannot be set below US
$0.025 per share.
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8.
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DIVIDENDS
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Except
Clause 6.11, dividends shall be declared and paid by the JV Company at such
times and in such amounts as shall be determined by the Board of
Directors.
9.
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TRANSFER OF
SHARES
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9.01
|
All
parties are hereby agreed that upon the JV Company listing in OTCBB, all
Shares belonged to IMOT will be distributed to IMOT shareholders on a pro
rata basis. Details of distribution will be approved by both Board and
board of directors of IMOT.
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9.02
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Subject
to Clause 9.01 and before listing in OTCBB, no Shareholder shall sell,
transfer, mortgage, charge, encumber or otherwise dispose of any Share or
any interest therein except in accordance with the provisions of this
Clause 9.
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9.03
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Subject
to Clause 9.01 and before listing in OTCBB, a Shareholder may transfer its
Shares to any other person provided
that—
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(a)
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the
transfer is made in accordance with the Clause
9;
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(b)
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except
in the case of a transfer from one Shareholder to another, the proposed
transferee has agreed in writing with the other parties to this Agreement
to assume all future obligations of the transferor, and otherwise to be
bound by all the applicable provisions thereof, as if it were a party
thereto;
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(c)
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the
transferee has agreed in writing with the other parties to this Agreement
to be bound by all the provisions of this Agreement;
and
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(d)
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any
necessary consent has been obtained for the
transfer.
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9.04
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Subject
to Clause 9.01 and before listing in OTCBB, the Shareholders shall procure
that the Directors approve for registration any transfer of Shares which
complies with the provisions of this Clause 9, and decline to approve for
registration any other transfer of
Shares.
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9.05
|
Upon
any Shareholder ceasing to hold any Shares, subject to compliance with the
provisions of clause 9.03—
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(a)
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all
future obligations of that Shareholder shall cease;
and
|
9
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(b)
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the
Shareholders and the JV Company shall use their best endeavours to procure
the termination, in relation to any future obligation
thereunder, of any guarantee given to a third party for the benefit of the
JV Company by that Shareholder.
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10. CONFIDENTIALITY
10.01
|
For
the purposes of this Agreement “Restricted Information” means, in relation
to each party to this Agreement (“the Recipient”) any information which is
disclosed to that party by another party (“the Informant”) pursuant to or
in connection with this Agreement, whether orally or in writing or any
other medium, and whether or not the information is expressly stated to be
confidential or marked as such.
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10.02
|
The
Recipient undertakes with the Informant that, except as provided by clause
10.03 or as authorised in writing by the Informant, it shall, at all times
during the continuance of this Agreement and within one year after its
termination—
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|
(a)
|
use
its best endeavours to keep confidential all Restricted
Information;
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(b)
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not
disclose any Restricted Information to any other
person;
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(c)
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not
use any Restricted Information for any purpose otherwise than as
contemplated by and subject to the terms of this
Agreement;
|
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(d)
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not
make any copies of, record in any way or part with possession of any
Restricted Information; and
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(e)
|
ensure
that none of its directors, officers, employees, agents or advisers does
any act which, if done by that party, would be a breach of the provisions
of (a), (b), (c) or (d) above.
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10.03
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The
Recipient may—
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(a)
|
disclose
any Restricted Information to—
|
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(i)
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any
sub-contractor, supplier or licensee of the
Recipient;
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(ii)
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any
bona fide transferee of the Recipient’s
Shares;
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(iii)
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any
governmental or other authority or regulatory body;
or
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(iv)
|
any
employees of that party or any of the aforementioned
persons;
|
to
such extent only as is necessary for the purposes contemplated by this
Agreement, or as required by law, and in each case (except where the disclosure
is to any such body as is mentioned in (iii) above or any employees of any such
body) subject to the Recipient first obtaining a written undertaking in favour
of the Informant from the person in question, as nearly as practicable in the
terms of this clause, to keep the Restricted Information confidential and to use
it only for
10
the
purposes for which the disclosure is made, and submitting the same to the
Informant; or
|
(b)
|
use
any Restricted Information for any purpose, or disclose it to any other
person, to the extent only that—
|
|
(i)
|
the
Recipient can demonstrate from its written records that it was known to
the Recipient at the time when it was disclosed by the
Informant;
|
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(ii)
|
after
being disclosed by the Informant it is disclosed to the Recipient by any
other person otherwise than in breach of any obligation of confidentiality
owed to the Informant; or
|
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(iii)
|
it
is at the date of this Agreement, or at any time after that date becomes,
public knowledge through no fault of the Recipient, provided that in doing
so the Recipient does not disclose any part of that Restricted Information
which is not public knowledge.
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10.04
|
The
provisions of this clause 10 shall continue in force in accordance with
their terms, notwithstanding the termination of this Agreement for any
reason.
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11.
|
FORCE
MAJEURE
|
11.01
|
For
the purposes of this Agreement “Force Majeure” means any circumstances
beyond the reasonable control of either party (including, without
limitation, any strike, lock-out or other form of industrial
action).
|
11.02
|
If
any party is unable to comply with any of its obligations under this
Agreement because of Force Majeure it shall forthwith notify the other
parties of the nature and extent of the Force
Majeure.
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11.03
|
No
party shall be deemed to be in breach of this Agreement, or otherwise be
liable to any other party, by reason of any delay in performance, or the
non-performance, of any of its obligations hereunder, to the extent that
the delay or non-performance is due to any Force Majeure of which it has
notified the other parties, and the time for performance of that
obligation shall be extended
accordingly.
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11.04
|
If
the performance by any party of any of its obligations under this
Agreement is affected by Force Majeure for a continuous period in excess
of 6 months, [the parties shall enter into bona fide discussions with a
view to alleviating its effects, or to agreeing upon such alternative
arrangements as may be fair and reasonable] [any of the other parties
shall be entitled to terminate this Agreement by giving written notice to
the other parties].
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12.
|
DURATION AND
TERMINATION
|
12.01
|
Subject
as provided in the following provisions of this clause, this Agreement
shall continue in force for a period of one year from its date, and shall
terminate at the end of that period unless at any time before the expiry
of that period the parties agree
that
|
11
it
shall continue in force or at the time until the JV Company goes public or list
and trade on any stock exchange anywhere in the world.
13.
|
EFFECTS OF
TERMINATION
|
13.01
|
Upon
the termination of this Agreement for any
reason—
|
|
(a)
|
any
provision of this Agreement which is expressed to continue in force after
termination shall continue in full force and effect;
and
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(b)
|
subject
as provided in this clause 13, and except in respect of any accrued
rights, the parties shall not be under any further obligation to each
other.
|
14.
|
NATURE OF
AGREEMENT
|
14.01
|
Subject
as contemplated by clause 14.02, this Agreement is personal to the parties
and none of them may assign, mortgage, charge (otherwise than by floating
charge) or sub-licence any of its rights hereunder, or sub-contract or
otherwise delegate any of its obligations hereunder, except with the
written consent of the other
parties.
|
14.02
|
Nothing
in this Agreement shall create, or be deemed to create, a partnership, or
the relationship of principal and agent, between the parties or any of
them.
|
14.03
|
This
Agreement contains the entire agreement between the parties with respect
to its subject matter and may not be modified except by an instrument in
writing signed by the duly authorised representatives of the
parties.
|
14.04
|
Each
party acknowledges that, in entering into this Agreement, it does not do
so in consideration of or in reliance on any representation, warranty or
other provision except as expressly provided in this Agreement, and all
conditions, warranties or other terms implied by statute or common law are
excluded to the fullest extent permitted by
law.
|
14.05
|
If
any provision of this Agreement is held by any court or other competent
authority to be invalid or unenforceable in whole or in part, this
Agreement shall continue to be valid as to its other provisions and the
remainder of the affected
provision.
|
14.06
|
No
failure or delay by any party in exercising any of its rights under this
Agreement shall be deemed to be a waiver thereof and no waiver of a breach
of any provision of this Agreement shall be deemed to be a waiver of any
subsequent breach of the same or any other
provision.
|
12
14.07
|
Where
any provision of this Agreement applies expressly or by implication to the
JV Company, the Shareholders shall procure that the JV Company complies
with that provision.
|
15.
|
ARBITRATION
|
15.1
|
Any
dispute, difference or disagreement arising out of or in connection with
this Agreement may (subject to Clause 15.2) be referred by either party to
the arbitration of a single arbitrator appointed by agreement between the
parties or, in default of agreement between the parties within 30 days of
a request in writing for a reference to arbitration, appointed by the
President of The Law Society on the application of either
party.
|
15.2
|
Prior
to any dispute, difference or disagreement being referred to expert
determination or arbitration pursuant to Clause 15.1, as the case may be,
the parties shall seek to resolve the matter as
follows—
|
|
(a)
|
in
the first instance the matter shall be considered by all parties; but if
they are not able to resolve the matter within 30 days (and it is expected
that this will only be the case on rare occasions in extreme
circumstances), then;
|
|
(b)
|
the
matter shall be referred for consideration by the chief executive of each
party; but if they are not able to resolve the matter within a further 30
days, then the provisions of clause 15.1 shall take
effect.
|
16.
|
NOTICES
|
16.01
|
Any
notice, claim, demand, court process, document or other communication to
be given under this Agreement (collectively “communication” in this Clause)
shall be in writing in the English language and must be served or given
personally or sent to the facsimile numbers (if any) of the relevant party
and marked for the attention and/or copied to such other person as
specified in Clause 16.03.
|
16.02
|
Except
as otherwise provided herein, all communications shall be served by the
following means and the addressee of a communication shall be deemed to
have received the same within the time stated adjacent to the relevant
means of despatch:
|
Means of
dispatch
|
Time of deemed
receipt
|
Personal
delivery
|
Upon
delivery
|
Local
mail or courier
|
1
Business Day after posting
|
Facsimile
|
on
despatch during normal business hour with confirmation of successful
transmission
|
Air
courier/Speedpost
|
3
Business Days
|
Airmail
|
5
Business Days
|
13
16.03
|
The
initial addresses and facsimile numbers of the parties for the service of
communications, the person for whose attention such communications are to
be marked and the person to whom a communication is to be copied are as
follows:
|
If to IMOT:
|
Address:
|
00xx
Xxxxx, X00-00 Xxxxxx Xxxxxxxx, Xxxxxx Xxxx (Xxxxx), Xxxxxxxx, 000000,
Xxxxxx’x Xxxxxxxx xx Xxxxx.
|
|
Facsimile
no.:
|
00-000-0000
0133
|
If to the
Investors:
[Refer
to Schedule 1]
17.
|
MISCELLANEOUS
|
17.01
|
Each
party shall from time to time (both during the continuance of this
Agreement and after its termination) do all such acts and execute all such
documents as may be reasonably necessary in order to give effect to the
provisions of this Agreement.
|
17.02
|
All
parties hereby agree that all costs of and incidental to the preparation,
execution and implementation of this Agreement shall be borne by the JV
Company notwithstanding the JV Company is not a party to this
Agreement.
|
17.03
|
Except
as required by law or the requirements of any relevant stock exchange, no
party shall make any press or other public announcement concerning any
aspect of this Agreement without first obtaining the agreement of the
other parties to the text of that
announcement.
|
17.04
|
Should
there be any conflict between this Agreement and the Memorandum and
Articles of Association of the JV Company, this Agreement
prevails.
|
18.
|
PROPER
LAW
|
18.01
|
This Agreement shall be
governed by and construed in accordance with Hong Kong
law.
|
18.02
|
The
courts of Hong Kong are to have non-exclusive jurisdiction to settle any
disputes which may arise out of or in connection with this Agreement and
accordingly any legal action or proceedings arising out of or in
connection with this Agreement (“Proceedings”) may be
brought in such courts. Each of the parties hereto irrevocably submits to
the jurisdiction of such courts in connection with legal proceedings
against one another to enforce the provisions of the Agreement (but not
with respect to any proceedings brought by a third party) and waives any
objections to Proceedings in
|
14
such
courts on the ground of venue or on the ground that the Proceedings have been
brought in an inconvenient forum.
15
SCHEDULE
1
Particulars
of the Investors
Individuals
No.
|
Name
|
ID
No.
|
Address
|
Fascimile
No.
|
1
|
方明东
(Xxxx
Xxxxxxxx)
|
PRC
ID 440528195906051831
|
深圳市福田中心区华融大厦2802A,邮编:518000
|
|
2
|
方锦奎
(Fang
Jinkui)
|
PRC
ID 440301195112104419
|
深圳市福田区华强北路长泰花园B栋24H,邮编:518028
|
|
3
|
郭兰成
(Xxx
Xxxxxxxx)
|
PRC
ID 440524196808124653
|
深圳市福田区中航路都会电子城1C
033柜,邮编:518028
|
|
4
|
庄衡衡
(Zhuang
Hengheng)
|
PRC
ID 440301196411244424
|
深圳市福田区福华三路星河国际花园C2栋9D
|
|
5
|
潘晓霖
(Xxx
Xxxxxxx)
|
PRC
ID 440104601121536
|
深圳市福田区八卦一路盛世鹏程6栋8A
|
|
6
|
邓湘娟
(Xxxx
Xxxxxxxxx)
|
PRC
ID 440804196303252028
|
深圳市宝安国际机场航油大厦二楼
|
|
7
|
李小秋
(Xxx
Xxx Xxxx)
|
HKID
X000000(0)
|
香港新界青衣清心街蓝田村29号地下
|
|
8
|
xx
(Xxx
Xxxx)
|
HKID
X000000(0)
|
香港新界荃湾青山公路633号湾景花园5座21楼D室
|
|
9
|
xx
(Xxxxxx
Xxx)
|
HKID
X000000(0)
|
香港九龙海庭道18号帝柏海湾2座252楼A室
|
|
10
|
xx
(Xx
Xxx)
|
HKID
X000000(0)
|
深圳市罗湖区东乐花园32栋1单元1A
|
16
IN WITNESS WHEREOF, the
parties have duly executed and delivered this Agreement as of the day and year
first above written.
SIGNED
by
|
)
|
|
)
|
/s/
Xxxxx Xxxxxxxxxx
|
|
for
and on behalf of IMOT
|
)
|
|
in
the presence of :-
|
)
|
/s/
Xxxxxx Xxxx
XXXXXX
X.X. XXXX
Solicitor,
Hong Kong S.A.R.
XXXX
& PARTNERS
Solicitors
17
THE
INVESTORS
SIGNED
by 方明东
(Xxxx Xxxxxxxx),
|
)
|
holder
of PRC ID 00000000000000000
|
)
|
in
the presence of :-
|
)
|
/s/
Xxxx Xxxxxxxx
|
|
SIGNED
by 方锦奎 (Xxxx
Xxxxxx),
|
)
|
holder
of PRC ID 440301195112104419
|
)
|
in
the presence of :-
|
)
|
/s/
Xxxx Xxxxxx
|
|
SIGNED
by 郭兰成 (Xxx
Xxxxxxxx),
|
)
|
holder
of PRC ID 440524196808124653
|
)
|
in
the presence of :-
|
)
|
/s/
Xxx Xxxxxxxx
|
|
SIGNED
by (CHINESE CHARACTERS) (Xxx Xxxxxxx),
|
)
|
holder
of HKID X000000(0)
|
)
|
in
the presence of :-
|
)
|
18
SIGNED
by 庄衡衡
(Xxxxxx Xxxxxxxx),
|
)
|
holder
of PRC ID 440301196411244424
|
)
|
in
the presence of :-
|
)
|
/s/
Xxxxxx Xxxxxxxx
|
|
SIGNED
byxxx (Xxx
Xxxxxxx),
|
)
|
holder
of PRC ID 440104601121536
|
)
|
in
the presence of :-
|
)
|
/s/
Xxx Xxxxxxx
|
|
SIGNED
by邓湘娟 (Xxxx
Xxxxxxxxx),
|
)
|
holder
of PRC ID 440804196303252028
|
)
|
in
the presence of :-
|
)
|
/s/
Xxxx Xxxxxxxxx
|
19
SIGNED
byxxx (Xxx
Xxx Xxxx),
|
)
|
holder
of HKID X000000(0)
|
)
|
in
the presence of:-
|
)
|
/s/
Xxx Xxx Xxxx
|
|
SIGNED
by xx (Xxx
Xxxx),
|
)
|
holder
of HKID X000000(0)
|
)
|
in
the presence of:-
|
)
|
/s/
Xxx Xxxx
|
|
SIGNED
by xx (Xxxxxx
Xxx),
|
)
|
holder
of HKID X000000(0)
|
)
|
in
the presence of:-
|
)
|
/s/
Xxxxxx Xxx
|
|
SIGNED
by xx (Xx
Xxx),
|
)
|
holder
of HKID X000000(0)
|
)
|
in
the presence of:-
|
)
|
/s/
Xx Xxx
|
20
ANNEXURE
“A”
ANNEXURE
“B”
Intermost
Focus Advertising Company Ltd
|
||||||
Balance
Sheet and Operations
|
||||||
30/11/2007
|
||||||
<RMB>
|
||||||
ShenZhen
Books
|
Adjustment
|
USA
Books
|
||||
ASSETS
|
||||||
Current
Assets
|
||||||
Cash
& Bank Deposits
|
-
|
-
|
-
|
|||
Amount
due from group companies
|
892,423
|
892,423
|
||||
Prepayment,deposit
& Other receivable
|
892,423
|
-892,423
|
-
|
|||
892,423
|
892,423
|
|||||
Total
Assetts
|
892,423
|
892,423
|
||||
Liabilities and
Shareholder's Equity
|
||||||
Shareholder's
Equity
|
||||||
Share
Capital
|
1,000,000
|
-
|
1,00,000
|
|||
Additional
Paid in Capital
|
-
|
-
|
||||
Retained
Earning /(Accumulated Loss)
|
-107,577
|
-
|
-107,577
|
|||
892,423
|
892,423
|
|||||
Total
Liabilities and shareholder's equity
|
892,423
|
892,423
|
||||
Control
|
-
|
-
|
||||
Sales
|
-
|
-
|
-
|
|||
Less:
|
Cost
of sales
|
-
|
-
|
-
|
||
Gross
profit
|
-
|
-
|
||||
Selling,General
& administrative expenses
|
310
|
-
|
310
|
|||
Profit/(Loss)
from operations
|
-310
|
-310
|
||||
Interest
income
|
-
|
-
|
-
|
|||
Other
income/(loss),net
|
-
|
-
|
-
|
|||
Profit(Loss)
before income taxes
|
-310
|
-310
|
||||
Profit
Tax
|
-
|
-
|
-
|
|||
Net
Profit/(Loss)
|
-310
|
-310
|
||||
Retained
Earning/(Loss) b/f
|
-107,267
|
-
|
-107,267
|
|||
Retained
Earning/(Loss) c/f
|
-107,577
|
-107,577
|
||||
Control
|
-
|
|||||
XxxxxX.xxx
Information Technology Ltd
|
||||||
Balance
Sheet and operations
|
||||||
30/11/2007
|
||||||
<RMB>
|
||||||
Shenzhen
Books
|
Adjustment
|
USA
Books
|
||||
ASSETS
|
||||||
Current
Assets
|
||||||
Cash
& Bank Deposits
|
313
|
-
|
313
|
|||
Accounts
receivable,net
|
15,500
|
-15,500
|
-
|
|||
Consumables
|
17,162
|
-17,162
|
-
|
|||
Inventory
|
4,500
|
-4,500
|
-
|
|||
Amount
due from group companies
|
13,063,147
|
13,063,147
|
||||
Prepayment,deposit
& other receivable
|
11,941,479
|
-11,923,620
|
17,859
|
|||
11,978,954
|
13,081,319
|
|||||
Non
current assets
|
||||||
Fixed
assets
|
772,258
|
-771,274
|
984
|
|||
Investment
in subsidiary
|
804,164
|
95,836
|
900,000
|
|||
Software
license
|
-
|
-
|
||||
1,576,422
|
900,984
|
|||||
Total
Assets
|
13,555,376
|
13,982,303
|
||||
Liabilities and
Shareholder's Equity
|
||||||
Current
Liabilities
|
||||||
Accounts
Payable
|
-
|
-
|
-
|
|||
Deferred
revenue
|
-29,565
|
29,565
|
||||
Deposit
from customers
|
-445,044
|
445,044
|
||||
Accruals
|
-
|
-
|
-
|
|||
Business
tax and government surcharges
|
-
|
-9,547
|
9,547
|
|||
Due
to group companies
|
-26,747,755
|
26,747,755
|
||||
Order
payable
|
24,109,060
|
24,109,060
|
-
|
|||
24,109,060
|
27,231,911
|
|||||
Minority
interests
|
||||||
Shareholder's
Equity
|
||||||
Share
Capital
|
13,500,000
|
-
|
13,500,000
|
|||
Retained
Earning /(Accumulated Loss)
|
-24,053,684
|
-
|
-26,749,608
|
|||
-10,553,684
|
-13,249,608
|
|||||
Total
liabilities and shareholder's equity
|
13,555,376
|
13,982,303
|
||||
Control
|
-
|
-
|
||||
Income
|
||||||
Sales
|
18,390
|
-29,916
|
48,306
|
|||
Less:cost
|
||||||
Cost
of sales
|
11,224
|
1,556
|
12,780
|
|||
Provision
for stock obsolescence
|
-
|
-
|
||||
Gross
profit
|
7,166
|
35,526
|
||||
Selling,General
& administrative expenses
|
49,132
|
-44,539
|
4,593
|
|||
Profit
(Loss) from operations
|
-41,966
|
30,933
|
||||
Interest
income
|
69
|
-
|
69
|
|||
Share
of loss of subsidiary
|
-
|
-
|
-
|
|||
Other
income/(loss),net
|
-5,670
|
-7,700
|
2,030
|
|||
Profit
(Loss) before income taxes
|
-47,567
|
-
|
33,032
|
|||
Taxation
|
-
|
-
|
-
|
|||
Net
Profit/( Loss)
|
-47,567
|
33,032
|
||||
Retained
Earning b/f
|
-24,006,117
|
2,776,523
|
-26,782,640
|
|||
Retained
Earning c/f
|
-24,053,684
|
-26,749,608
|
||||
control
|
-
|
XxxxxX.xxx
Investment Consultant (Shenzhen) Ltd
|
||||||
Balance
Sheet and Operations
|
||||||
30/11/2007
|
||||||
<RMB>
|
||||||
Shenzhen
Books
|
Adjustment
|
USA
Books
|
||||
ASSETS
|
||||||
Current
Assets
|
||||||
Cash
& Bank Deposits
|
1,229
|
-
|
1,229
|
|||
Amount
due from group companies
|
4,474,765
|
4,474,765
|
||||
Prepayment,deposit
& Other receivable
|
582,895
|
-581,593
|
1,302
|
|||
584,124
|
4,477,296
|
|||||
Non
current assets
|
||||||
Fixed
assets
|
10,003
|
-1,253
|
8,750
|
|||
Total
Assets
|
594,127
|
4,486,046
|
||||
Liabilities and
Shareholder's Equity
|
||||||
Current
Liabilities
|
||||||
Accruals
|
19,859
|
-
|
19,859
|
|||
Business
tax and government surcharges
|
-
|
-
|
-
|
|||
Due
to group companies
|
-
|
-
|
||||
Other
payable
|
-3,893,172
|
-3,893,172
|
-
|
|||
-3,873,313
|
19,859
|
|||||
Shareholder's
Equity
|
||||||
Share
Capital
|
5,060,018
|
-
|
5,060,018
|
|||
Capital
surplus
|
-
|
-
|
-
|
|||
Retained
Earning /(Accumulated Loss)
|
-592,578
|
-
|
-593,831
|
|||
4,467,440
|
4,466,187
|
|||||
Total
liabilities and shareholder's equity
|
594,127
|
4,486,046
|
||||
Control
|
-
|
-
|
||||
Income
|
||||||
Sales
|
-
|
-
|
-
|
|||
Less:
|
Cost
of sales
|
-
|
-
|
-
|
||
Gross
profit
|
-
|
-
|
||||
Selling,General
& administrative expenses
|
255,964
|
1,634
|
257,598
|
|||
Profit/(Loss)
from operations
|
-255,964
|
-257,598
|
||||
Interest
income
|
623
|
-
|
623
|
|||
Other
income/(loss),net
|
-
|
-
|
-
|
|||
Profit(Loss)
before income taxes
|
-255,341
|
-256,975
|
||||
Profit
Tax
|
-
|
-
|
-
|
|||
Net
Profit/(Loss)
|
-255,341
|
-256,975
|
||||
Retained
Earning/(Loss) b/f
|
-377,237
|
-381
|
-336,856
|
|||
Retained
Earning/(Loss) c/f
|
-592,578
|
-593,831
|
||||
Control
|
-
|
ChinaE.com-SI
|
||||||
Balance
Sheet and Operations
|
||||||
30/11/2007
|
||||||
<RMB>
|
||||||
ShenZhen
Books
|
Adjustment
|
USA
Books
|
||||
ASSETS
|
||||||
Current
Assets
|
||||||
Cash
& Bank Deposits
|
-
|
-
|
-
|
|||
Prepayment,deposit
& Other receivable
|
1,500
|
-1,500
|
-
|
|||
1,500
|
-
|
|||||
Non
current assets
|
||||||
Plant,machinery
and equipment,net
|
-
|
-
|
-
|
|||
Total
Assets
|
1,500
|
-
|
||||
Liabilities and
Shareholder's Equity
|
||||||
Current
liabilities
|
||||||
Due
to group companies
|
-1,405,513
|
1,405,513
|
||||
Other
payable
|
1,405,513
|
1,405,513
|
-
|
|||
1,405,513
|
1,405,513
|
|||||
Shareholder's
Equity
|
||||||
Share
Capital
|
-
|
-
|
-
|
|||
Additional
Paid in Capital
|
-
|
-
|
||||
Retained
Earning /(Accumulated Loss)
|
-1,404,013
|
-
|
-1,405,513
|
|||
-1,404,013
|
-1,405,513
|
|||||
Total
liabilities and shareholder's equity
|
1,500
|
-
|
||||
Control
|
-
|
-
|
||||
Sales
|
-
|
-
|
-
|
|||
Less:
|
Cost
of sales
|
-
|
-
|
-
|
||
Gross
profit
|
-
|
|
-
|
|||
Selling,General
& administrative expenses
|
105
|
-
|
105
|
|||
Profit/(Loss)
from operations
|
-105
|
-105
|
||||
Interest
income
|
-
|
-
|
-
|
|||
Other
income(loss),net
|
-
|
-
|
-
|
|||
Profit/(Loss)
before income taxes
|
-105
|
-105
|
||||
Taxation
|
-
|
-
|
||||
Net
Profit/(Loss)
|
-105
|
-105
|
||||
Retained
Earning/(Loss) b/f
|
-1,403,908
|
1,500
|
-1,405,408
|
|||
Retained
Earning/(Loss) c/f
|
-1,404,013
|
-1,405,513
|
||||
control
|
-
|
XxxxxX.xxx
Technology (Shenzhen) Ltd
|
||||||
Balance
Sheet and Operations
|
||||||
30/11/2007
|
||||||
<RMB>
|
||||||
ShenZhen
Books
|
Adjustment
|
USA
Books
|
||||
ASSETS
|
||||||
Current
Assets
|
||||||
Cash
& Bank Deposits
|
53,354
|
-
|
53,354
|
|||
Accounts
receivable,net
|
200
|
10,000
|
10,200
|
|||
Amount
due from group companies
|
778,787
|
778,787
|
||||
Prepayment,deposit
& Other receivable
|
581,770
|
-534,177
|
47,593
|
|||
635,324
|
889,934
|
|||||
Non
current assets
|
||||||
Fixed
assets
|
388,925
|
-120,235
|
268,690
|
|||
Intangible
asset
|
145,777
|
-8,390
|
137,387
|
|||
534,702
|
406,077
|
|||||
Total
Assets
|
1,170,026
|
1,296,011
|
||||
Liabilities and
Shareholder's Equity
|
||||||
Current
liabilities
|
||||||
Accruals
|
35,283
|
-
|
35,283
|
|||
Business
tax and government surcharges
|
105
|
10,568
|
-10,463
|
|||
Deferred
revenue
|
-22,811
|
22,811
|
||||
Deposit
from customers
|
-
|
-187,820
|
187,820
|
|||
Due
to group companies
|
-8,010,906
|
8,010,906
|
||||
Other
payable
|
7,899,855
|
7,889,686
|
10,169
|
|||
7,935,243
|
8,256,526
|
|||||
Shareholder's
Equity
|
||||||
Share
Capital
|
1,000,000
|
-
|
1,000,000
|
|||
Capital
surplus
|
57,529
|
57,529
|
-
|
|||
Additional
Paid in Capital
|
-
|
-
|
||||
Retained
Earning /(Accumulated Loss)
|
-7,822,746
|
-
|
-7,960,515
|
|||
-6,765,217
|
-6,960,515
|
|||||
Total
liabilities and shareholder's equity
|
1,170,026
|
1,296,011
|
||||
Control
|
-
|
-
|
||||
Income
|
||||||
Sales
|
31,150
|
3,453
|
27,697
|
|||
Less:
|
Cost
of sales
|
330,899
|
25,873
|
356,772
|
||
Gross
profit
|
-299,749
|
-329,075
|
||||
Selling,General
& administrative expenses
|
519,506
|
25,679
|
545,185
|
|||
Profit/(Loss)
from operations
|
-819,255
|
-874,260
|
||||
Interest
Income
|
4,944
|
-
|
4,944
|
|||
Other
income/(loss),net
|
-8,862
|
-31,500
|
22,638
|
|||
Profit(Loss)
before income taxes
|
-823,173
|
-846,678
|
||||
Profit
Tax
|
-
|
-
|
-
|
|||
Net
Profit/( Loss)
|
-823,173
|
-846,678
|
||||
Retained
Earning/(Loss) b/f
|
-6,999,573
|
114,264
|
-7,113,837
|
|||
Retained
Earning/(Loss) c/f
|
-7,822,746
|
-7,960,515
|
||||
Control
|
-
|
Attachment
to Annexure “B”
The
assets to be transferred to the JV Company are classified as:
ANNEXURE
“C”
ANNEXURE
“D”