Exhibit 10.28
This Agreement is made as of this
29th day of March, 2006) by and between FACE AND COSMETIC TRADING SERVICES PTY LIMITED(ABN
30 077 075 024), a company organized and existing under the law of Australia and
having its principal place of business at 000 Xxxxx Xxxx, Xxxx Xxxxxxxxx, Xxxxxxxx 0000
(hereinafter called FACTS), and SPAR INTERNATIONAL, LTD a company organized and
existing under the laws of the Cayman Islands, with a registered office in Georgetown,
Grand Cayman and an office at 000 Xxxxx Xxxxxx Xxxx, Xxxxxxxxx, XX, XXX (hereinafter
called “SPAR”),
WITNESSETH THAT:
WHEREAS, FACTS is engaged in
the retail solution businesses in Australia and New Zealand, having a wide range of
clients and also having various knowledge and human resources with respect to the
retailing businesses in Australia and New Zealand;
WHEREAS, SPAR is engaged in
the retail solution businesses in the USA, having computer software useful for agency,
assistance, instruction and reporting of storefront activities and also having operational
know-how with respect to such software; and
WHEREAS, FACTS and SPAR are
desirous of organizing a corporation to jointly conduct retail solution businesses in
Australia and New Zealand (hereinafter called “Territory”).
NOW, THEREFORE, in
consideration of the mutual covenants and agreement herein contained, the parties hereto
agree as follows:
CHAPTER I:
ORGANIZATION OF THE NEW COMPANY
Promptly after the effective date of this
Agreement, the parties hereto shall cause a new company to be organized under the laws of
Territory (hereinafter called SPARFACTS AUSTRALIA PTY LTD [“New Company”]). Upon
formation, it is intended that New Company shall become a party to this Agreement or
shall enter into a commitment Agreement to this Agreement and the parties hereto shall
procure the New Company to do so.
| Article 2. |
|
Business Purposes |
The business purposes of the New
Company shall consist of the following:
1. Provide
retail merchandising and product demonstration services
2. Agency,
assistance, instruction and report of storefront sales activities;
3. Implementation
of market research and analysis of results thereof;
4. Assembly
of setups used for sales promotion;
5. Consulting
regarding store management;
6. Development
and sale of management system regarding retailing;
7. Designing
and sale of database; and
8. Any
and all businesses incidental or relating to any of the foregoing.
The New Company shall be named in
Territory as SPARFACTS AUSTRALIA PTY LTD.
The New Company shall have its main
office (NEW COMPANY ADDRESS …… ).
| Article 5. |
|
Articles of Incorporation |
The Articles of Incorporation of the
New Company shall be in the form attached hereto as Exhibit A.
The total number of shares which New Company
shall be authorized to issue shall be one hundred thousand shares the par value of each
share shall be one dollar. At the time of establishment of New Company, shares shall be
issued and fully subscribed by the parties hereto as follow:
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| • |
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SPAR |
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51% _____. |
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(as to capital subscription AUD$102,000) |
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| • | |
FACTS: | |
49% _____. | |
(as to capital subscription AUD$98,000) | |
The parties are globally herein
referred to as “the Shareholders”. The initial subscribing capital of New
Company is AUD$200,000.
All the shares to be issued by New
Company shall be nominal and ordinary shares
Each of the parties hereto shall pay
in Australian Dollar currency and in cash the amount equivalent to its subscribed shares
at par value upon issuance of the shares of New Company.
CHAPTER II:
PREPARATION OF ESTABLISHMENT OF THE NEW COMPANY
| Article 8. |
|
Preparation of Establishment of the New Company |
Each party shall take its role as
described below for the preparation of the commencement of New Company’s business.
Any expenses and costs necessary for such preparation shall be borne by each party. All
expenses for setting up the New Company will be paid by the New Company if set up. If the
New Company is not established, each party will pay its own costs.
SPAR shall enter into with New
Company a license agreement in the form attached hereto as Exhibit B (the
“License Agreement”). For reference, the License Agreement includes the
obligations of SPAR to:
1. localize
and set up software provided by SPAR to work in Australia and New Zealand;
2. consult
on the organization of merchandising services: and;
3. train
the New Company’s personnel in how to operate the merchandising software;
4. give
advice on budgeting and development of each business plan and FACTS shall:
| 1. |
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arrange
meetings with current and potential clients to promote New Company’s services. To
assist in this obligation, FACTS will provide a list of customers at commencement as set
out in Exhibit C. |
| 2. |
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contribute
to the New Company all assets and liabilities of FACTS as set out inthe FACTS
Assets and Liabilities Exhibit D. |
CHAPTER III: GENERAL
MEETING OF SHAREHOLDERS
| Article 9. |
|
Ordinary and Extraordinary General Meeting |
The Ordinary General Meeting of
Shareholders shall be convened by resolution of the Board of Directors of New Company and
held in Melbourne or Sydney, Australia or any other reasonably proximate place within 3
months from the last day of each accounting period of New Company.
An Extraordinary General Meeting of
New Company shall be convened by a resolution of the Board of Directors whenever deemed
necessary.
A quorum of the General Meeting of
Shareholders shall be the shareholders present either in person or by proxy representing
at least 52% of all the paid share capital of New Company.
Except as expressly otherwise
provided in the Articles of Incorporation of New Company, this Agreement and all
resolutions of the General Meeting of Shareholders shall be adopted by the affirmative
vote of Shareholders holding at least 52% of the shares present or represented at meeting
for which there is quorum.
| Article 12. |
|
Important Matters |
Subject to the provisions of the
Articles of Incorporation of New Company or otherwise under the Australian Corporations
Law, any resolutions on any of the following matters
by the General Meeting of
Shareholders require the affirmative vote of at least 52% of the votes of the
shareholders present in person or by proxy
| 1. |
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any amendment or modification of the Articles of Incorporation; |
| 2. |
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increase or decrease in the authorized capital or paid-in capital; |
| 3. |
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issuance
of new shares or any other kind of equity securities or instruments convertible
into equity securities or the decision to undertake a Public Offering (as
defined in Article 30); |
| 4. |
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issuance of debentures; |
| 5. |
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transfer of any part or whole of business; |
| 6. |
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any and all matters relating to dividends of New Company; |
| 7. |
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dissolution or amalgamation; or, |
| 8. |
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change in number or length of tenure of Directors; |
CHAPTER IV: BOARD OF
DIRECTORS AND OFFICERS
| Article 13. |
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Appointment of Directors |
| 1. |
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The
Board of Directors of the New Company shall consist of four (4) Directors; two
(2) of whom shall be appointed from among those nominated by FACTS and 2 of
whom shall be appointed from those nominated by SPAR. The Chairman of the Board
of Directors shall be appointed from the Directors by the mutual consultation
of both parties. In case of any increase or decrease in the number of
Directors, there shall always be an equal representation of Directors from each
party such that Spar shall always have and be entitled to have one-half (1/2)
of the Directors on the Board and FACTS shall always have and be entitled to
have one-half of the Directors on the Board. |
| 2. |
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Unless
the Shareholders shall otherwise agree by Special Resolution at an Ordinary or
Extraordinary General Meeting of New Company, a position of Director carries no
remuneration. |
| Article 14. |
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Appointment of Officers |
Executives and Officers other than
Directors shall be appointed by the Board of directors and serve at their pleasure.
| Article 15. |
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Office of Director |
The initial term of office of each
Director shall be from the date of appointment until two (2) days after first Annual
General Meeting of New Company. Directors shall be appointed at each Annual General
Meeting of the New Company and shall serve until two days after the next Annual General
Meeting of the New Company.
Each Director shall have one (1)
voting right on the Board of Directors. Except as otherwise required in the Articles of
Incorporation of New Company, or under this Agreement, a majority of the Directors present
or attending by electronic or telephonic link (as described in Article 17) shall
constitute a quorum at any meeting of the Board of Directors, and all resolutions shall be
adopted by the affirmative votes of a majority of the Directors present or so attending.
| Article 17. |
|
Ordinary Meeting of the Board of Directors |
The Ordinary Meeting of the Board of
Directors may be held quarterly, [unless there is a statutory
requirement I do not want to require quarterly meetings] and an Extraordinary Meeting of
the board of Directors shall be held when necessary, both of which shall be convened in
accordance with the provisions of the Articles of Incorporation. To the extent then
permitted, any meeting of the Board of Directors may be held and attended by
telephone, by interactive video conference or other similar electronic or telephonic
means, and any action that may be taken or resolved by the Board of Directors at a
meeting thereof (whether in person, by telephone or video conference) may be so taken or
resolved. The parties hereto confirm that the prevailing interpretation in Territory is
that meetings of boards of directors may be held by interactive videoconference or by
telephonic or electronic means. For any proposed meeting of the Board of Directors for
which SPAR requests, New Company and SPAR shall cooperate to arrange for such meetings to
be held by telephone or by video conference. A written record in English of all meetings
of the Board of Directors and all decisions shall be made by one of the
Board selected by the Board of
Directors at each meeting, kept in the records of the Company and signed or sealed by
each of the Directors.
| Article 18. |
|
Important Matters |
Subject to the provisions of the
Articles of Incorporation of New Company and to the Australian Corporations Law, the
following matters of the Board of Directors meeting shall require the affirmative votes of
the majority of the Directors present or attending in accordance with Articles 16 and 17.
| 1. |
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Any
proposal to the General Meeting of Shareholders or action by the Board of
Directors for the matters as provided in Article 12 hereof; |
| 2. |
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any
investment or commitment of New Company in amounts individually in excess of
AUD$10,000 or in the aggregate in excess of AUD$25,000; |
| 3. |
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any
loan or credit in excess of AUD$10,000 taken by New Company or any guarantee
entered into on its behalf. |
| 4. |
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execution,
amendment or termination of agreements or commitments with FACTS, SPAR or their
subsidiaries or affiliates or related corporations; |
| 5. |
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adoption
or amendment of the annual budgets and business plan; |
| 6. |
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adoption
or any material modification of major regulations or procedures, including any
employee rules or handbook; |
| 7. |
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change
of the auditing firm as provided in Article 21, subject always to the absolute
right and discretion of SPAR to direct the Board as to any such appointment
from time to time. |
| 8. |
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initiating
or settling any litigation, arbitration or other formal dispute settlement
procedures or forgiveness of any obligation owed to the New Company in excess
of AUD$25,000; |
| 9. |
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approval
of annual closing of the books of New Company and the New Company’s annual
financial statements, and changing of accounting policies and practices or the
New Company’s accounting periods; |
| 10. |
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establishment
or amendment to the condition of employment of New Company officers |
| 11. |
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No
sale or disposition of, or granting a lien, security interest or similar
obligation over or with respect to, whether in one or a series of related
transactions, any of the assets, including but not limited to any asset of the
New Company of fair market value in excess of AUD$25,000. |
| 12. |
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Formation
of any subsidiary of New Company, entry into (or subsequent termination of) any
joint venture, partnership or similar agreements; |
| 13. |
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entering
into, amending or terminating any contract with/or commitment to any Director
or shareholder; and |
| 14. |
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entering
into any agreement or commitment to provide goods or services outside the
Territory. |
| 15. |
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Any
financing of or borrowing by New Company including as referred to in Article 25
provided in any event that any such financing or borrowing shall be limited to
amounts not exceeding (with respect to any one single financing or borrowing
transaction) AUD$25,000. |
CHAPTER V: AUDIT
| Article 19. |
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Accounting Period |
The accounting periods of New Company
shall end on the 31st day of December of each year.
| Article 20. |
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Auditors (where required) |
The parties agree that the commencing
Auditor or Statutory Auditor for New Company shall be Xxxxx Xxxxxx or its associated or
affiliated Firm or appointee in Australia. SPAR shall retain the absolute right and
discretion always thereafter to select and appoint and to direct the Board as to the
selection and appointment from time to time of the Auditor or Statutory Auditor for the
New Company in the Territory as to which direction or nomination for any such appointment
the Board shall endorse.
| Article 21. |
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Inspection of Accounting Records and Books |
The New Company shall yearly arrange
audit on the accounting records and books and shall submit a report of such audit to each
of the parties hereto within thirty (30) days from the completion of the audit.
Xxxxx Xxxxxx shall be the accounting
firm first engaged by New Company. Such accounting firm shall audit the accounting records
and books of New Company and any other matters relating, directly or indirectly, to the
financial condition of New Company. Any fee for the certified public accountant for
inspection and audit mentioned above shall be borne by New Company. New Company shall keep
true and correct accounting records and books with regard to all of its operations in
accordance with generally accepted accounting principles consistently applied
(“GAAP”) in Territory. All accounting records and books shall be kept ready for
inspection by the parties hereto or by their authorized representative. New Company shall
cooperate with respect to each financial period to provide such information as required by
SPAR to reconcile New Company’s financial statements with U.S. GAAP reporting
requirements of SPAR. The accounting firm performing the audit shall be and remain
registered with the United States Public Company Accounting Oversight Board (the
“PCAOB”) and must have the ability to issue an audit opinion stating that the
financial statements are in accordance with Unites States GAAP and that the audit was
performed in accordance with United States PCAOB generally accepted auditing standards.
| Article 22. |
|
Increase of Capital |
In case of capital increase of the
New Company after its establishment, FACTS and SPAR shall have the pre-emptive right to
new shares to be issued for such capital increase in proportion to their respective
shareholdings in the New Company.
CHAPTER VI: TRANSFER
OF SHARES
| Article 23. |
|
Restrictions on Transfer of Shares |
Except as provided in Article 24
hereof, neither party hereto shall, without the prior written consent of the other party,
assign, sell, transfer, pledge, mortgage, or otherwise dispose of all or any part of its
shares (including its right to subscribe to new shares) of the New Company to any third
parties.
| Article 24. |
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Sale of Shares and Pre-emptive Right and Option |
| 1. |
|
Neither
party shall sell its Shares (in whole or in part) to any person or party for
the first three (3) years from the effective date of this Agreement. After
three (3) years from the effective date of this Agreement, if either party
hereto (hereinafter called “Selling Party”) wishes to transfer and
sell all (but not less than all) of its shares, the Selling Party shall furnish
to the other party (hereinafter called “Other Party”) a written
notice of a proposed purchaser, the offered purchase price and other major
terms and conditions of such proposed sale (“Selling Party’s Notice”). |
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The Other
Party shall have a first right to purchase such shares by giving Selling Party a written
notice of its intention to purchase the same within ninety (90) days from the receipt of
Selling Party’s Notice, upon the same terms and conditions as described in the
Selling Party’s Notice. The Selling Party may sell such shares upon the terms and
conditions as described in its notice after ninety (90) days from the date of Other Party’s
receipt of such notice unless Other Party has given the requisite notice for its purchase
of the shares to Selling Party. Unless otherwise agreed by the Other Party in writing,
any transferee party shall be subject to this Agreement and shall immediately execute a
confirmatory Agreement as the new party in substitution for the Selling Party (and this
shall be a material term of any sale of shares as aforesaid). |
| 2. |
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After
three (3) years from the effective date of this Agreement, either party may at
any time make a written offer to buy all of the other party’s shares in
the New Company. The other party shall then, either accept the offer and sell
all of its shares under the terms and conditions offered, or purchase the
offering party’s shares at the same terms and conditions. If the party
receiving the initial offer does not respond to the initial offer within one
hundred and twenty (120) days, the party receiving the offer shall be deemed to
have accepted the offer to sell its shares. The parties shall cooperate to
effect the closing of such purchase and sale of all of the shares of the New
Company held by the selling party within 120 days of the decision or deemed
decision of the second party. At such closing, the purchasing party shall pay
to the selling party the purchase price in cash, and the selling party shall
deliver to the purchasing party share certificates representing all of the
selling party’s shares held in the New Company, free and clear of any
liens. |
| Article 25. |
|
Cooperation in Financing |
| 1. |
|
The
New Company may borrow up to (AUD$amount) as its operating funds, which shall
be guaranteed by FACTS if necessary. FACTS shall make its reasonable efforts to
enable such borrowing and to effect any such guarantee. The terms of the
borrowing and any agreement between New Company and FACTS with respect to any
such guarantee by FACTS shall be matters subject to Article 18 hereof. |
| 2. |
|
The
New Company may borrow an additional (AUD$amount) when it needs additional
funds, if such borrowing is approved in advance by the Board of Directors as an
important matter under Article 18 herein. |
| 3. |
|
If
FACTS pays any creditors of the New Company due to a guarantee made by FACTS to
such creditors in favour of the New Company, SPAR shall reimburse FACTS for
half of the amount paid by FACTS on behalf of New Company, but only if the New
Company’s borrowing of such funds and the FACTS guarantee of the New
Company’s obligations have been fully disclosed to and expressly agreed to
in advance by SPAR in writing or in a Board resolution, for which both
SPAR-nominated directors have voted affirmatively. |
CHAPTER VII: ROLE OF
CONTRACTING PARTIES
| Article 26. |
|
Business Support and Allocated Expenses |
| 1. |
|
Over
the first three (3) years from the effective date of this Agreement SPAR will
provide up to three thousand (3,000) hours of business support to New Company.
This support may be in the form of general business consultation or programming
support to modify or enhance the merchandising software. SPAR will maintain
ownership of all software. If support provided by SPAR exceeds three thousand
(3,000) hours the additional hours will billed by SPAR to New Company at fifty
five dollars (US$55.00) per hour. However, a lower price will be charged for
programming costs if a less expensive way to hire IT staff is found. New
Company will be able to hire its own IT staff as appropriate.The “merchandising
software” as here referred to is that which is set out in the Selected
Definitions Exhibit “A” to the Licence Agreement. |
| 2. |
|
FACTS
agrees that its operating expenses shall not be allocated to New Company. |
Consulting Agreement
It is a condition precedent to this
Agreement that the parties shall procure the New Company and FACTS to concurrently enter
into a Consulting Agreement setting out in principle the arrangements between them with
respect to any Incentive Consulting Fee payable by the New Company and related matters.
Each party hereto shall provide the
appropriate training to the employees for New Company’s operation at its own site.
The said training shall be made upon New Company’s request and any necessary
expenses for the training shall be borne by New Company, except as otherwise provided in
License Agreement.Any travel expenses of either party prior to formation of New
Company are at the expense of each such party.
| Article 29. |
|
Non-Competition |
While this Agreement is in effect
and for five (5) years from the Termination Date of this Agreement, neither SPAR nor
FACTS shall without the prior written consent of the other, engage in, whether directly
or indirectly, Merchandising Services (as defined in the License Agreement) in Territory
or any other business then competitive with New Company in Territory. However, in the
event that SPAR (or any of its affiliated, associated or related corporations) enters
into a contract with a customer that covers more than one country anywhere and the scope
of such agreement includes services in Territory, neither SPAR nor any of its associated,
affiliated or related corporations (the Spar Group) shall be prohibited from entering
into or performing such agreement, provided that SPAR shall make commercially reasonable
efforts to enable New Company to participate in and be fairly compensated for providing
services to any such customer.
CHAPTER VIII:
AMENDMENT FOR PUBLIC OFFERING
| Article 30. |
|
Public Offering |
Both parties acknowledge that the
New Company may attempt to become a listed company on the Territory Stock Exchange or any
other stock exchange or public market in Territory (Public Offering). Both parties
acknowledge that the number of issued shares, the number of shareholders, and the paid-up
capital of New Company may be reviewed and instructed for amendment by the relevant
governmental or regulatory authorities in accordance with those bodies’ rules or
guidelines for Public Offering. If both parties agree to undertake a Public Offering
pursuant to Article 12 above, both parties shall discuss and reasonably cooperate with
each other to amend the Articles of Incorporation and/or the License Agreement and/or any
other agreement in effect between them in order to complete the Public Offering of New
Company. Any changes to the License Agreement or any other agreement will be effective
upon consummation of the Public Offering (but not before), and subject to the approval of
the Boards of Directors of the New Company, FACTS and SPAR.
CHAPTER IX:
CONFIDENTIALITY
| Article 31. |
|
Confidential Information |
FACTS and SPAR shall keep secret and
retain in strict confidence any and all confidential information and use it only for the
purpose of this Agreement and shall not disclose it to a third party without the prior
written consent of the other party unless the disclosing party can demonstrate that such
information: (i) has become public other than as a result of disclosure by the disclosing
party, (ii) was available to the receiving party prior to and otherwise than from the
disclosure by the disclosing party or (iii) has been independently acquired or developed
by the receiving party.
“Confidential Information”
shall mean and include but not be limited to all items, materials, processes, information,
property and all other things and matters referred to in and within the following Selected
Definitions in Exhibit “A” to the Licence Agreement, namely:
| |
(d) Proprietary
Information |
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(e) SPAR
Adapted Software |
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(h) Merchandising
Services |
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(i) Merchandising
software |
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(j) SPAR
Original Software |
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(k) SPAR
or New Company processes |
CHAPTER X: GENERAL
PROVISIONS
| Article 32. |
|
Effective Date |
This Agreement shall become effective
as and from April 24, 2006.
Upon Share Sale
| 1. |
|
If
either party transfers its shares in the New Company to the Other Party hereto
in accordance with Article 24 hereof, this Agreement shall terminate. If either
party transfers its shares in the New Company to another party, unless
expressly agreed by the non-transferring party (other party) in writing, this
Agreement shall be assigned to and binding upon such third party, provided that
the assigning party shall remain liable for all legal acts with respect to this
Agreement or the New Company occurring before the Effective Date of such
assignment. |
For default
| 2. |
|
This
Agreement shall be terminable immediately upon written notice given by the
non-defaulting party, if the non-defaulting party has given the other party
written |
notice of material breach or default
by such party (such notice to explain the alleged breach in reasonable detail)
and the other party fails to cure such breach within sixty (60) days of
receipt of such notice;
By notice
| 3. |
|
Either
party may terminate this Agreement by the giving of written notice in the event of one or
more of the following: |
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(a) |
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Appointment
of a trustee or receiver for all or any part of the assets of the other party; |
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(b) |
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Insolvency
or bankruptcy of the other party; |
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(c) |
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Assignment
of the other party for the benefit of creditor; |
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(d) |
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Attachment
of the assets of the other party; |
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(e) |
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Expropriation
of the business or assets of the other party; and |
| |
(f) |
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Dissolution
or liquidation of the other party. |
If either party is involved in any of
the events enumerated in (a) through (f) above, it shall immediately notify the other
party in writing of the occurrence of such event.
| 4. |
|
In
case of the termination of this Agreement pursuant to Article 33.2 or Article
33.3, the party terminating in accordance with this Agreement shall have an
option to purchase the shares of the other party at the book value to be
decided by an internationally recognized accounting firm that is not the
principal accounting firm of either party, if either party so requests, at the
cost of the New Company (and which decision as to value is final and binding on
the parties and so accepted by them) or to have the New Company dissolved. |
| 5. |
|
Upon
termination of this Agreement for any reason or SPAR’s ceasing to hold at
least 51% of the shares in New Company, the License Agreement shall terminate
immediately if still in effect, unless otherwise agreed in writing by the
parties. |
| Article 34. |
|
Force Majeure |
Neither party shall be liable to the
other party for failure or delay in the performance of any of its obligations under this
Agreement for the time and to the extent such failure or delay is caused by riots, civil
commotions, wars, hostilities between nations, governmental laws, orders or regulations,
embargoes, actions by the government or any agency thereof, acts of God, storms, fires,
accidents, strikes, sabotages, explosions, or other similar contingencies beyond the
reasonable control of the respective parties.
All notices, reports and other
communications given or made in accordance with or in connection with this Agreement shall
be made in writing and may be given either by (i) personal delivery, (ii) overnight
delivery or (iii) registered air mail, if properly posted, with postage fully prepaid, in
an envelope properly addressed to the respective parties at the address set forth below or
to such changed address as may be given by either party to the other by such written
notice PROVIDED HOWEVER that in all cases of delivery of notices hereunder delivery
and service must be acknowledged by recipient, receipt verification (for or on behalf of
the recipient) or by delivery or service verification or by written confirmation by a
service agent or by proper postal authority receipt verification procedures).
| To: |
|
FACTS |
|
000 Xxxxx Xxxx, Xxxx Xxxxxxxxx, Xxxxxxxx, 0000,
Xxxxxxxxx; |
|
| |
| | |
SPAR | |
SPAR International Ltd, ATT Xxxxxx X. Xxxxx, Chairman
000 Xxxxx Xxxxxx Xxxx, Xxxxxxxxx, XX, XXX | |
This Agreement and the rights and
(other than as may elsewhere herein be provided) obligations hereunder are personal to the
parties hereto, and shall not be assigned or assignable by either of the parties to any
third party.
| Article 37. |
|
Dispute Resolution |
| 1. |
|
If
any dispute arises out of this Agreement (the Dispute) a party must not
commence any Court or Arbitration proceedings unless the parties to the
Dispute have complied |
with the following paragraphs of
this Article except where a party seeks urgent interlocutory relief.
| 2. |
|
A
party claiming that a Dispute has arisen out of or in relation to this
Agreement must give written notice (the Notice) to the other party
specifying the nature of the Dispute. |
| 3. |
|
If
the parties fail to resolve any Dispute hereunder amicably and provided that
the parties have already entered upon consultations in good faith to
attempt to resolve it for a period of not less than twenty-one (21) days
after Notice of the Dispute has been given, then the parties agree to the
following as to Dispute Resolution: |
|
(a) |
|
The
party claiming that a dispute has arisen shall give written notice of
mediation to the other for the Dispute; |
|
(b) |
|
The
parties will mutually agree upon the appointment of a Mediator and a venue
for Mediation of the dispute by the intervention of that appointed
Mediator; |
|
(c) |
|
If
the parties are unable to mutually agree upon the appointed Mediator and
venue referred to in (b) above within fourteen (14) days of written notice
of Mediation having been given under (a) above, then the party giving
notice of Mediation shall refer the matter to the President of the Law
Society of New South Wales for his appointment of a nominated Mediator
which the parties will accept and the President in that nomination is not
constrained or limited to the Mediator or venue for the Mediation being
within New South Wales or elsewhere nor to the Rules or terms for the
Mediation being conducted under the Mediation Rules and Policy of the Law
Society of New South Wales or by reference to the Mediation procedures,
policy or Rules of any other appropriate Dispute Resolution or Mediation
organisation in any other jurisdiction. The President will be requested to
make that appointment as speedily as is reasonably practicable in all of
the circumstances and to notify the parties of the full details thereof
expeditiously. |
|
(d) |
|
The
parties will expeditiously enter into and engage in good faith in all of the
Mediation processes under the Mediation appointment referred to and shall
cooperate fully and in good faith and attend upon all of the requirements
as may be designated by the appointed Mediator and attend cooperatively
and constructively at the Mediation as set or scheduled by the Mediator. |
|
(e) |
|
The
parties agree that the Mediation shall be conducted and fully concluded by
them within sixty (60) days of the date of Mediation notice having been
given under (a) above. |
|
(f) |
|
The
parties shall each meet their own costs with respect to the Mediation but
shall contribute equally to the costs of the Mediator. |
|
(g) |
|
If
the Mediation fails to resolve the dispute or any part of it, the dispute or
that part of it remaining unsettled shall be referred by the parties (or
by either party) to a single Arbitrator in accordance with the following
agreed procedures: |
|
|
(i) |
|
If
Notice of the Dispute under 37.2 hereof was first given by SPAR the Dispute (or
that part of it remaining unsettled) shall be determined by an Arbitrator
appointed by the President of the Law Society of New South Wales for hearing
and determination in Australia by the appointed Arbitrator under and in
accordance with the Commercial Arbitration Act NSW; |
|
|
(ii) |
|
If
the Notice of Dispute is first given by FACTS the Dispute (or that part of it
remaining unsettled) shall be determined by an Arbitrator appointed by the
American Arbitration Association for hearing and determination in New York City
in accordance with the appropriate Arbitral rules of that Association; |
| |
|
(iii) |
|
Notwithstanding
any Order or determination otherwise by any appointed Arbitrator, the parties agree that
each shall meet its own costs attendant upon their (or any of their
witnesses) travel to and attendance at the venue for any such
Arbitration; |
|
|
(iv) |
|
The
parties will enter upon and cooperate fully with all of the Arbitral
processes required or directed by any of the Arbitral appointing
bodies referred to or as required by the Arbitrator with the view to
the speediest and most economic determination of the Dispute; |
|
|
(v) |
|
The
parties agree that the determination at Arbitration of the Dispute shall be
final and legally binding upon them. |
| Article 38. |
|
Implementation |
The Shareholders hereby agree, for
themselves, their successors, heirs and legal representatives, to vote at
Shareholders’ meetings, and to cause the Directors they nominate to vote at Board
meetings and to carry out their duties, to prepare, execute and deliver or cause to be
prepared, executed and delivered such further instruments and documents, to take such
other actions and to cause the Articles of Incorporation of New Company, New Company work
rules and other rules and to attend to any Commercial registry requirements and any other
document to be amended or adopted as may be reasonably required to effect the provisions
and intent of this Agreement and the transactions contemplated hereby.
| Article 39. |
|
Governing Law |
This Agreement and all questions
arising out of or under this Agreement shall be governed by and interpreted in accordance
with the laws of Australia.
Any failure of either party to
enforce, at any time or for any period of time, any of the provisions of this Agreement
shall not be construed as a waiver of such provisions or of the right of such party
thereafter to enforce each and every such provision.
| Article 41. |
|
Entire Agreement |
This Agreement constitutes the entire
and only agreement between the parties hereto with respect to the subject matter of this
Agreement and supersedes any other commitments, agreements, or understandings, written or
verbal, that the parties hereto may have had. No modification, change, and amendment of
this Agreement shall be binding upon the parties hereto except by mutual express consent
in writing of subsequent date signed by authorized officer or representative of each of
the parties hereto.
The headings of articles and
paragraphs used in this Agreement are inserted for convenience of reference only and shall
not affect the interpretation of the respective articles and paragraphs of this Agreement.
This Agreement has been executed in
the English language.
IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed in two (2) copies by their
respective duly authorized officer or representative as of the day first above written.
FACE AND COSMETIC
TRADING SERVICES PTY LIMITED
(ABN 30 077 075 024)
| Signature: |
|
/s/ Xxxxx Xxxxx |
|
| Name: | |
Xxxxx Xxxxx | |
| Title: | |
Managing Director | |
SPAR INTERNATIONAL, LTD
| Signature: |
|
Xxxxxx X. Xxxxx |
|
| Name: | |
Xxxxxx X Xxxxx | |
| Title: | |
Chairman and CEO | |
