SHARE PURCHASE AGREEMENT Between Inner Mongolia Xiangzhen Mining Group Co., Ltd. as Seller, and Fortune Pegasus International Limited as Buyer, and September 21, 2009
Between
Inner
Mongolia Xiangzhen Mining Group Co., Ltd.
as
Seller,
and
Fortune
Pegasus International Limited
(福骏国际有限公司)
as
Buyer,
and
September
21, 2009
1
TABLE OF
CONTENTS
Page
No.
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ARTICLE
I DEFINITIONS AND INTERPRETATION
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4 | |||
SECTION
1.01. Certain Defined Terms
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4 | |||
SECTION
1.02. Interpretation. In this Agreement, unless the
context otherwise requires:
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8 | |||
ARTICLE
II SALE AND PURCHASE
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8 | |||
SECTION
2.01. Sale and Purchase of the Purchased Shares
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8 | |||
SECTION
2.02. Purchase Price
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9 | |||
SECTION
2.03. Payment of the Purchase Price.
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9 | |||
SECTION
2.04. Closing
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9 | |||
SECTION
2.05. Closing Deliveries by the Seller
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9 | |||
SECTION
2.06. Closing Deliveries by the Purchaser
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10 | |||
SECTION
2.07. Acquisition of Rights
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10 | |||
ARTICLE
III REPRESENTATIONS AND WARRANTIES OF THE Seller AND
THE COMPANY
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10 | |||
SECTION
3.01. Authority to Execute and Perform this Agreement of the
Seller
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10 | |||
SECTION
3.02. Authority to Execute and Perform this Agreement of the
Company
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10 | |||
SECTION
3.03. No Conflict
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11 | |||
SECTION
3.04. Ownership of the Purchased Shares.
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11 | |||
SECTION
3.05. Good Standing of the Company
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11 | |||
SECTION
3.06. No Undisclosed Liabilities
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11 | |||
SECTION
3.07. Litigation and Compliance with the Law
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11 | |||
SECTION
3.08. Licenses and Permits.
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12 | |||
SECTION
3.09. Full Disclosure.
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12 | |||
SECTION
3.10. Binding Force
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12 | |||
ARTICLE
IV REPRESENTATIONS AND WARRANTIES OF THE
PURCHASER
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12 | |||
SECTION
4.01. Authority to Execute and Perform this
Agreement
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12 | |||
SECTION
4.02. No Conflict.
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13 | |||
SECTION
4.03. Financing
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13 | |||
ARTICLE
V ADDITIONAL AGREEMENTS AND COVENANTS
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13 | |||
SECTION
5.01. Contracts and Agreements
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13 | |||
SECTION
5.02. No Impairment
|
13 | |||
SECTION
5.03. Obligations of the Seller, the Company and the
Purchaser.
|
13 | |||
SECTION
5.04. Access to Information
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14 | |||
SECTION
5.05. Confidentiality.
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14 | |||
SECTION
5.06. Further Action
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14 | |||
ARTICLE
VI CONDITIONS TO CLOSING
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15 | |||
SECTION
6.01. Conditions to Obligations of the Seller and the
Company
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15 | |||
SECTION
6.02. Conditions to Obligations of the
Purchaser
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15 |
2
ARTICLE
VII INDEMNIFICATION
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16 | |||
SECTION
7.01. Survival
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16 | |||
SECTION
7.02. Indemnification by the Seller
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16 | |||
SECTION
7.03. Notice of Claims
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17 | |||
ARTICLE
VIII TERMINATION, AMENDMENT AND WAIVER
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18 | |||
SECTION
8.01. Termination
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18 | |||
SECTION
8.02. Effect of Termination
|
18 | |||
SECTION
8.03. Waiver.
|
18 | |||
ARTICLE
IX ARBITRATION
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19 | |||
SECTION
9.01. Reference to Arbitration
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19 | |||
ARTICLE
X GENERAL PROVISIONS
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19 | |||
SECTION
10.01. Expenses
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19 | |||
SECTION
10.02. Notices
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19 | |||
SECTION
10.03. Severability
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20 | |||
SECTION
10.04. Amendment
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20 | |||
SECTION
10.05. Assignment and Succession
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20 | |||
SECTION
10.06. Entire Agreement.
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20 | |||
SECTION
10.07. Waivers, Remedies Cumulative.
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20 | |||
SECTION
10.08. Liabilities for Breach
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20 | |||
SECTION
10.09. No Agency.
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21 | |||
SECTION
10.10. Specific Performance
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21 | |||
SECTION
10.11. Counterparts.
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21 | |||
SECTION
10.12. Time of Essence
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21 | |||
SECTION
10.13. Governing Law
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21 |
3
THIS
SHARE
PURCHASE
AGREEMENT is made as of the 21st day of September, 2009 by and among Inner
Mongolia Xiangzhen Mining Group Co., Ltd., a company organized and existing under the
Laws of People’s Republic of China
with its legal address
at Jianguo Road, Wulanhua, Sizi wang Qi,
Wulanchabu, Inner Mongolia, People’s Republic of China (the “Seller”), Xxx Xxx Limited
Liability Company in the Kyrgyz Republic, an exempt company organized under the laws of Kyrgyz
Republic (the “Company”), Fortune Pegasus International Limited
福骏国际有限公司, a company organized and existing under
the Laws of British Virgin Islands with its registered office at XX Xxx 0000, Xxxx Xxxx, Xxxxxxx, Xxxxxxx
Xxxxxx Xxxxxxx (the “Purchaser”; together with the Seller and Company, the “Parties” and individually, a “Party”).
WITNESSETH:
WHEREAS,
the Seller is the sole registered and beneficial owner of equity shares of the
Company before the Closing as defined below;
WHEREAS,
as at the date of this Agreement, the Company has an
authorized capital of 5000索姆, of which 5000索姆 have been issued to the Seller
(the collectively “Sale
Shares” and each a “Sale Share”), further details of
the Company are set out in Schedule to this Agreement.]
WHEREAS,
as at the date of this Agreement, the Company is indebted to the Seller in the
amount of US$1,761,784.78 (the “Sale Loan”).
WHEREAS,
as at the date of this Agreement, the Company is the holder of the Mining
License together with all title, right, interest and benefit thereto and therein
free from Encumbrances
WHEREAS,
the Seller desires to sell to the Purchaser, and the Purchaser desires to
purchase from the Seller, one hundred percent (100%) of the Sale Shares and the
Sale Loan, all upon the terms and subject to the conditions set forth
herein;
NOW,
THEREFORE, in consideration of the representations, warranties, covenants and
agreements set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and upon the terms and
subject to the conditions hereinafter set forth, the parties hereto, intending
to be legally bound hereby, agree as follows:
ARTICLE
I
DEFINITIONS
AND INTERPRETATION
SECTION
1.01. Certain Defined
Terms. (a) As
used in this Agreement, the following terms shall have the following
meanings:
4
“Acquisition” means
the purchase of the Purchased Shares by the Purchaser from the Seller pursuant
to the terms and conditions of this Agreement.
"Action" or “Actions” mean any
claim, action, suit, arbitration, inquiry, proceeding or investigation by or
before any Governmental Authority or non-governmental authority, including any
action regarding expropriation, confiscation or requisition.
"Affiliate" means,
with respect to any specified Person, any other Person that directly, or
indirectly through one or more intermediaries, Controls, is controlled by, or is
under common control with, such specified Person.
"Agreement" or "this Agreement" means
the Share Purchase Agreement, entered into on [ ], 2009 by and
among the Seller, the Company and the Purchaser (including all Schedules and
Exhibits hereto, which are expressly incorporated herein and constitute
indispensable parts hereof) and all amendments hereto which may be made in
accordance with Section 10.04 hereof.
"Assets" means all the
assets, rights and creditor’s rights due to the Company together with those
assets and rights which were used, held or enjoyed for the purposes of the
Business or are otherwise represented as being the property or assets of the
Company as of the date hereof.
"Business" means all
the businesses that the Group may engage or are engaging in according to
Law.
"Business Day" means
any day that is not a Saturday, a Sunday or other day on which banks are
required or authorized by Law to be closed in British Virgin Islands, or the
PRC.
"Control" (including
the terms "controlled
by" and "under
common control with"), means, with respect to any Person, the possession,
directly or indirectly through one or more intermediaries, or as trustee,
personal representative or executor, of the power to direct or cause the
direction of the affairs or management of a Person, whether through the
ownership of voting securities, by contract or otherwise.
"Directors" means the
member of board of the Company.
"Deed of Assignment"
means the deed of assignment to be executed by the Seller as assignor and the
Purchaser as assignee substantially in the same form as set out in Schedule
6.
"Disclosure Schedule"
means the Disclosure Schedule attached hereto, dated as of the date hereof,
which constitutes a part of this Agreement.
"Encumbrance" means
any security interest, pledge, assignment, mortgage, lien (including, without
limitation, environmental and tax liens), charge, encumbrance, adverse claim or
any contract or agreement constituting a privilege or right of any nature
restricting the full enjoyment, ownership or transferability or any other
arrangement having a similar effect.
5
"Governmental
Authority" means any national, provincial, municipal and other local
governmental or regulatory authority, agency, commission, or any court,
tribunal, or judicial or arbitral body, including, without limitation, the PRC
Ministry of Commerce, the National Development and Reform Commission, the
State-owned Assets Supervision and Administration Commission, the State
Administration for Industry and Commerce, the State Administration of Foreign
Exchange, and the State Administration of Taxation, and their respective local
counterparts.
"Governmental Order"
means any order, writ, judgment, injunction, decree, notice, directive,
stipulation, determination or award entered by or with any Governmental
Authority.
"Group" means,
collectively, the Company and the Subsidiaries
"Knowledge" means to
the best of a Person’s knowledge after making due and reasonable
inquiries.
"Law" means any
promulgated and publicly available applicable national, provincial or other
local law, ordinance, code, regulation, rule, order, measure, circular, other
requirement or rule of law.
"Management Account"
means (i) the unaudited consolidated balance sheet of the Group as at the
Management Accounts Date and (ii) the unaudited consolidated balance sheet of
the Group as at the Management Accounts Date; copies of which have been attached
to this Agreement as Exhibit “A”
"Management Account
Date" means June 30, 2009
"Material Adverse
Effect" means any circumstance, change in, or effect on the Seller, the
Company, the Assets or the Business that, individually or in the aggregate with
any other circumstances, changes in, or effects on the Seller, the Assets or the
Business: (a) is, or would reasonably be expected to be materially adverse to
the Business, operations, Assets or liabilities (including, without limitation,
contingent liabilities), employee relationships, customer or supplier
relationships, results of operations or the condition (financial or otherwise)
of the Company or (b) could reasonably be expected to materially adversely
affect the ability of the Company to operate or conduct the Business in the
manner in which it is currently operated or conducted.
"Mine " means
Kulu-Jiegailieke Coppergold Mine located at Chartcarl, Jalalabad, Southwest of
Kyrgyz Republic (库鲁-捷盖列克铜金矿位于吉尔吉斯共和国西南部的贾拉拉巴德州恰特卡尔区).
"Mining License" means
collectively (i) the mining license of no. [Au-88-02] issued to the [Company] by
[吉爾吉斯共和國政府地質和礦產資源署]
in respect of [the Mine and (ii) the exploration license of no. Au-137-04 issued
to the the Company by [吉爾吉斯共和國政府地質和礦產資源署]
in respect of the Mine.
6
"Person" means any
individual, partnership, firm, corporation, association, trust, unincorporated
organization or Governmental Authority.
"PRC" means the
mainland of the People’s Republic of China, which for the purpose of this
Agreement does not include the Hong Kong Special Administrative Region, the
Macao Special Administrative Region and Taiwan.
"Real Property" means
real property, together with all buildings and other structures, facilities or
improvements currently or hereafter located thereon, all fixtures, and all
easements, licenses, rights and appurtenances relating to the
foregoing.
"Representative"
means, as to any Person, such Person’s affiliates and its or their directors,
officers, employees, agents and advisors (including, without limitation,
financial advisors, legal counsel and accountants).
“Social Security
Funds” means, collectively, pension insurance fund, medical insurance
fund, unemployment insurance fund, work-related injury insurance fund and
maternity insurance fund.
“Subsidiary(ies)”
means, subsidiaries of the Company, details of which are set out in Schedule 2
to this Agreement.
"Tax" or "Taxes" means any and
all taxes, fees, levies, duties, tariffs, imposts, and other charges of any kind
(together with any and all interest, penalties, additions to tax and additional
amounts imposed with respect thereto) imposed by any Governmental Authority,
including, without limitation, taxes or other charges or fees on or with respect
to income, franchises, mining rights, windfall or other profits, gross receipts,
property, sales, use, capital stock, payroll, employment, Social Security Funds,
workers' compensation, unemployment compensation, or taxes or other charges in
the nature of excise, withholding, ad valorem, stamp, transfer, value added, or
gains taxes, license, registration and documentation fees, and customs' duties,
tariffs, and similar charges.
"Tax Indemnity" means
the tax indemnity to be executed by the Seller substantially in the same as set
out in Schedule 5 to this Agreement.
"U.S. Dollars” or
“US$" means the official currency of the United States of
America.
(b) Each
of the following terms is defined in the Section set forth opposite each
term:
Term
|
Section
|
“Company”
|
Recitals
|
“Purchased
Shares”
|
Recitals
|
“Party” or “Parties”
|
Recitals
|
“Purchaser”
|
Recitals
|
“Seller”
|
Recitals
|
“Purchase
Price”
|
2.02
|
“Closing”
|
2.04
|
“Closing
Date”
|
2.04
|
“Indemnified
Person”
|
7.02
|
“Loss”
|
7.02
|
“Warranty
Breach”
|
7.02(i)
|
“Third Person
Claims”
|
7.03
|
“Dispute”
|
9.01
|
7
SECTION
1.02. Interpretation. In
this Agreement, unless the context otherwise requires:
(a) words
importing the singular include the plural and vice versa;
(b) words
importing a gender include every gender;
(c) references
to any document (including this Agreement) are references to that document as
amended, consolidated, supplemented, novated or replaced from time to
time;
(d) references
to Articles, Sections, Paragraphs, Schedules and Exhibits are references to
Articles, Sections, Paragraphs, Schedules and Exhibits to this Agreement unless
otherwise indicated;
(e) headings
used in this Agreement are inserted for convenience only and shall not be
considered in the construction of this Agreement;
(f) references
to any Party to this Agreement include references to its successors and
permitted assigns;
(g) references
to any Law are references to that Law as amended, consolidated, supplemented,
re-enacted or replaced from time to time;
(h) whenever
the words “include,” “includes” or “including” are used in this Agreement, they
are deemed to be followed by the words “without limitation”;
(i) the
words “hereof,” “herein” and “hereunder” and words of similar import, when used
in this Agreement, refer to this Agreement as a whole and not to any particular
provision of this Agreement;
(j) references
to a Person include references to its successors and permitted
assigns.
(k) Schedules
to this Agreement shall be deemed to form part of this Agreement
ARTICLE
II
SALE
AND PURCHASE
SECTION
2.01. Sale
and Purchase of the Purchased Shares. Subject to the terms and conditions
of this Agreement, the Purchaser agrees to purchase at the Closing and the
Seller agrees to sell to the Purchaser at the Closing the Sale Shares
..
8
SECTION
2.01A. Sale
and Purchase of the Sale Loan. Subject to the terms and conditions of
this Agreement, the Purchaser agrees to purchase at the Closing and the Seller
agrees to sell to the Purchaser at the Closing the Sale Loan.
SECTION
2.02. Purchase
Price. The purchase price for the Sale Shares and the Sale
Loans shall be 8,200,000 U.S. Dollars (US $8,200,000) (the “Purchase
Price”)
SECTION
2.03. Payment of the Purchase
Price.
(a) Within
7 business days from date of signing of this Agreement by all parties hereto,
the Purchaser shall pay an initial payment as part payment for the Purchase
Price in the amount of US$ 200,000 to the Seller (the “Initial
Payment”) (receipt whereof is hereby acknowledged by the Seller);
and
(b) At
Closing, the Purchaser shall pay to the Seller an amount equal to US $8,000,000
(the “Second Payment”), which represents the remaining portion of the Purchase
Price, by way of telegraphic transfer to such bank account as designated by the
Seller.
SECTION
2.04. Closing. Subject
to the fulfillment of the provision of Article VI and the other terms and
conditions of this Agreement, the sale and purchase of the Sale Shares
contemplated by this Agreement shall take place at a closing (the "Closing") to be held
at the offices of Cadwalader, Wickersham, & Xxxx LLP, at 0000 Xxxxx Center
Xxxxx Xxxxx 0, 00 Xxxxxxx Xxxx, Xxxxxxx 000000, Xxxxx, on October 31, 2009
at 10:00 a.m. Beijing time or at such other time and place as the Seller and the
Purchaser mutually agree upon, orally or in writing (which time and place are
designated as the “Closing”)
SECTION
2.05. Closing Deliveries by the
Seller. At
the Closing, the Seller shall deliver or cause to be delivered to the
Purchaser:
(a) documents
issued by the Company to the Seller, ensuring that the Seller legally owns 100%
interest of the Company;
(b) other
opinions, certificates and documents required to be delivered pursuant to
Section 6.02;
(c) such
documents duly executed by the Seller as the Purchaser may reasonably requested
for effecting and completing the transfer, assignment or otherwise vesting of
the legal and beneficial ownership to the Sale Shares to and in the
Purchaser;
(d) certificate
of incorporation, common seal, rubber chop, minutes book, register of directors,
register of members and transfer and share certificate book and memorandum and
articles of association or other equivalent incorporation and constitutional
documents of each member of the Group;
(e) all
books of account, records and documents of and relating to each of the member of
the Group;
(f) the
title deeds and other books, records and documents of and relating to each Group
Company, including without limitation, contracts and policies of insurance,
cheque books and the current bank statements up to the date immediately
preceding Completion of all relevant accounts;
9
(g) resignation
letter of the director(s) and/or secretary of each member of the Group in the
form and substance satisfaction of the Purchaser executed under
seal;
(h) copy
of a board minutes duly certified by the director of the Company approving
transfer, assignment or otherwise vesting of the legal and beneficial ownership
to the Sale Shares to and in the Purchaser and accepting the resignation by such
director and/or secretary as referred to in (g); and
(i) original
of Tax Indemnity duly executed by the Seller.
(i) original
of Deed of Assignment duly executed by the Seller and the Company.
SECTION
2.06. Closing Deliveries by the
Purchaser. At the Closing, the Purchaser shall deliver or
cause to be delivered to the Seller:
(a) the
payment receipt of the Second Payment in accordance with Section 2.03 above;
and
(b) the
certificates and other documents required to be delivered pursuant to Section
6.01.
SECTION
2.07. Acquisition of
Rights. Upon the Closing and as of the Closing Date, the
Purchaser shall acquire the Sale Shares and the Sale Loans and all related
right, title and interest, free of any Encumbrances.
ARTICLE
III
REPRESENTATIONS
AND WARRANTIES
OF
THE SELLER AND THE COMPANY
The
Seller and the Company hereby severally and jointly represent and warrant to the
Purchaser as of the date hereof and as of the Closing Date as
follows:
SECTION
3.01. Authority to Execute and
Perform this Agreement of the
Seller. The Seller is a PRC company, and has all necessary
power and authority (a) to enter into this Agreement, (b) to sell the Purchased
Shares pursuant to this Agreement, (c) to carry out his obligations hereunder
and (d) to consummate the transactions contemplated hereby. This
Agreement has been duly executed and delivered by the Seller and the Company,
and (assuming due authorization, execution and delivery by the Purchaser) this
Agreement constitutes the legal, valid and binding obligation of the Seller and
the Company enforceable against each of the Seller and the Company in accordance
with its terms. Neither the Company, nor the Seller is subject to any
bankruptcy, reorganization, insolvency, moratorium, proceeding or other Actions
under Law affecting creditors’ rights generally.
SECTION
3.02. Authority to Execute and
Perform this Agreement of the Company. The Company is organized and existing under the
Laws of the Kyrgyz Republic with good
standing, and has all necessary power and authority (a) to enter into
this Agreement, (b) to carry out its obligations hereunder and (c) to consummate
the transactions contemplated hereby. The Company is duly licensed or qualified
to do business and is in good standing in each jurisdiction in which the
properties owned or leased by it or the operation of its business makes such
licensing or qualification necessary. This Agreement has been duly executed and
delivered by the Seller and the Company, and (assuming due authorization,
execution and delivery by the Purchaser) this Agreement constitutes the legal,
valid and binding obligation of the Seller and the Company enforceable against
the Seller and the Company in accordance with its terms. Neither the
Company, nor the Seller is subject to any bankruptcy, reorganization,
insolvency, moratorium, proceeding or other Actions under Law affecting
creditors’ rights generally.
10
SECTION
3.03. No
Conflict. The execution, delivery and performance of this
Agreement by the Seller and the Company do not and will not (a) violate,
conflict with, or result in the breach of, any provision of the articles of
association of the Company, or (b) assuming compliance with the consents and
approvals contemplated by Section 3.03, conflict with or violate any Law or
Governmental Order applicable to the Company or the Seller or its assets,
properties or businesses or (c) constitute a breach of any contracts, agreements
or instruments to which either of the Seller or the Company is a party or (d)
conflict with, result in any breach of, constitute a default (or event which
with the giving of notice or lapse of time, or both, would become a default)
under, require any consent under, or give to others any rights of termination,
amendment, acceleration, suspension, revocation or cancellation of, or result in
the creation of any Encumbrance on any of its assets pursuant to, any
note, bond, mortgage or indenture, contract, agreement, lease, sublease,
license, permit, franchise or other instrument or arrangement to which the
Company or the Seller is a party or by which any of its assets are
bound or affected.
SECTION
3.04. Ownership of the Sale
Shares and Sale
Loans. The Seller legally and beneficially owns the Sale
Shares free and clear of all Encumbrances. The Seller legally and beneficially
owns the Sale Loan free and clear of all Encumbrances.
SECTION
3.05. Good
Standing of the Company. The Company (i) has issued
5000索姆
shares, (ii) is duly licensed or qualified to do business and is in good
standing in each jurisdiction in which the properties owned or leased by it or
the operation of its business makes such licensing or qualification
necessary.
SECTION
3.06. No
Undisclosed Liabilities. Other than the debts, liabilities,
Taxes or obligations which has been disclosed in the Disclosure Schedule to the
Purchaser, there are no debts, material liabilities, Taxes or obligations of the
Company and there are no existing conditions, situations or sets of
circumstances which could reasonably be expected to result in such debts,
liabilities, Taxes or obligations.
SECTION
3.07. Litigation and Compliance
with the Law. (a) There are no material Actions by or against
the Company, or affecting any of its Assets or the Business, pending before any
Governmental Authority (or threatened to be brought by or before any
Governmental Authority) or any reasonable basis for such Actions to be commenced
or any known facts which may likely give rise to such Actions. The
Seller, the Company, the Assets and the Business are not subject to any
Governmental Order (nor are there any such Governmental Orders threatened to be
imposed by any Governmental Authority).
11
(b) The
Company has conducted and continues to conduct the Business in accordance with
Law and with the requirements of applicable authorities, including, without
limitation, the land and resources administration authorities and environmental
protection authorities. To the knowledge of the Seller, there is no
basis for any present or future Action against the Company.
SECTION
3.08. Licenses and
Permits. The Company has all Governmental licenses, permits,
consents, certificates and authorizations, necessary or desirable to carry on
the Business. Such licenses, permits, consents, certificates
and authorizations are valid and in full force and effect; the Company is not in
default, and no condition exists that with notice or lapse of time, or both
would constitute a default, thereunder; and none of such licenses, permits,
consent, certificates and authorizations will be terminated or impaired as a
result of the transactions contemplated hereby, except for any changes therein
as a result of the transactions contemplated hereby.
SECTION
3.09. Full
Disclosure. (a) To the knowledge of the Seller and the
Company, there are no facts pertaining to the Company, the Assets or the
Business which could have a Material Adverse Effect and which have not been
disclosed in this Agreement and the Disclosure Schedules.
(b) No
representation or warranty of the Seller in this Agreement, nor any statement or
certificate furnished or to be furnished to the Purchaser pursuant to this
Agreement, or in connection with the transactions contemplated by this
Agreement, contains or will contain any untrue statement of a material fact, or
omits or will omit to state a material fact necessary to make the statements
contained herein or therein not misleading.
SECTION
3.10. Binding
Force. This Agreement is the only legally binding agreement regarding the
transfer of the ownership of shares. Any other agreements in respect of the
transfer of the ownership of shares and products has been rescind and
terminated.
SECTION
3.11. Further
Representations and Warranties. The Seller and the Company jointly and
severally warrants and represents to the Purchaser the warranties set out in
Schedule 3 to this Agreement.
ARTICLE
IV
REPRESENTATIONS
AND WARRANTIES
OF
THE PURCHASER
The
Purchaser hereby represents and warrants to the Seller as of the date hereof and
as of the Closing as follows:
SECTION
4.01. Authority to Execute and
Perform this Agreement. The Purchaser is a Corporation duly
organized, validly existing and in good standing under the Laws of the British
Virgin Islands and has all necessary power and authority (a) to enter into this
Agreement, (b) to purchase the Purchased Shares, (c) to carry out its
obligations hereunder, and (d) to consummate the transactions contemplated
hereby. The execution and delivery of this Agreement by the
Purchaser, the performance by the Purchaser of its obligations hereunder and the
consummation by the Purchaser of the transactions contemplated hereby have been
duly authorized by all requisite action on the part of the
Purchaser. This Agreement has been duly executed and delivered by the
Purchaser, and (assuming due authorization, execution and delivery by the Seller
and the Company) this Agreement constitutes the legal, valid and binding
obligation of the Purchaser enforceable against the Purchaser in accordance with
its terms.
12
SECTION
4.02. No
Conflict. The execution, delivery and performance of this
Agreement by the Purchaser does not and will not (a) violate, conflict with or
result in the breach of, any provision of the Memorandum and Articles of
Association (or similar organizational documents) of the Purchaser or (b)
conflict with or violate any Law or Governmental Order applicable to the
Purchaser or any of its assets, properties or businesses or (c) constitute a
breach of any other contracts, agreements or instruments to which the Purchaser
is a party or (d) conflict with, result in any breach of, constitute a default
(or event which with the giving of notice or lapse of time, or both, would
become a default) under, require any consent under, or give to others any rights
of termination, amendment, acceleration, suspension, revocation or cancellation
of, or result in the creation of any Encumbrance on any of its assets pursuant
to, any note, bond, mortgage or indenture, contract, agreement, lease, sublease,
license, permit, franchise or other instrument or arrangement to which the
Purchaser is a party or by which any of its assets are bound or
affected.
SECTION
4.03. Financing. The
Purchaser has, and at the Closing will have, available to it cash or other
investments or available sources of credit to enable it to consummate the
purchase of the Purchased Shares on the terms and conditions set forth
herein.
ARTICLE
V
ADDITIONAL
AGREEMENTS AND COVENANTS
SECTION
5.01. Contracts and
Agreements. The Seller and the Company covenant and agree that
from the date hereof to the Closing Date and thereafter, none of the contracts,
agreements or arrangements between the Company, or any Affiliate of the Company
and any third Person for the benefit of the Company shall be affected by the
transactions contemplated by this Agreement; the Seller shall not, nor shall he
cause any other Person to, take any action, in any manner, to amend, terminate
or cancel any of such contracts, agreements or arrangements.
SECTION
5.02. No
Impairment. The Seller and the Purchaser shall not knowingly
engage in any practice, take any action, fail to take any action or enter into
any transaction which could cause any of their representations or warranties to
be untrue or result in a breach of any covenant made by them in this
Agreement.
SECTION
5.03. Obligations of the Seller,
the Company and the Purchaser. (a) As soon as is practicable
following the execution of this Agreement, each parties shall obtain all
required approvals and consents of, and effect filings with, the Governmental
Authorities for the sale and purchase of Sale Shares and the Sale
Loan contemplated hereby.
13
(c) If,
after the execution of this Agreement and prior to the Closing Date, any event
shall occur or any matter shall arise of which the Seller or the Company becomes
aware and which results or is likely to result in any of the representations and
warranties of the Seller and the Company contained herein being untrue or
inaccurate in any material respect as at the Closing Date, or which otherwise
materially affects the Assets, liabilities, Business, financial condition,
operations, results of operations, customer or supplier relations, employee
relations of the Company, the Seller and the Company shall notify the Purchaser
in writing thereof as soon as practicable after becoming aware of such event or
matter and the Seller shall (at their own cost) make any investigation of the
event or matter which the Purchaser may reasonably require.
SECTION
5.04. Access to
Information. From the date hereof until the Closing, upon
reasonable notice, the Seller shall and shall cause each of the representatives
of the Seller and of the Company to: (i) afford the representatives of the
Purchaser full access, during normal business hours, to the offices, properties,
plants, other facilities, books and records,tax returns,
notices and other correspondences with any tax authorities of the Company and to
the representatives of the Seller and the Company who have any knowledge
relating to the Seller or the Business or Assets and (ii) furnish to the
representatives of the Purchaser all current detailed monthly financial
statements and such additional financial and operating data and other
information regarding the Business, the Assets, properties, liabilities and
goodwill of the Company as the Purchaser may from time to time reasonably
request.
SECTION
5.05. Confidentiality. (a)
The existence and contents of this Agreement, any negotiations and documents
related thereto or to the Acquisition, and any information disclosed by either
Party to the other Party under this Agreement shall be treated as confidential
information and none of the Parties shall disclose such information to any third
Person, except to the extent that such information (i) is or, through no fault
of a Party or its representatives, becomes public information, (ii) is already
known to a Party or its representatives before the same is disclosed to it
hereunder, (iii) is required to be disclosed by applicable Law, or
(iv) is agreed in advance in writing to be disclosed by the
Parties.
(b) No
Party shall make any press release or other public announcement in connection
with the Acquisition except: (i) a release or announcement in a form agreed to
by all Parties; or (ii) any release or announcement required by any applicable
legal, regulatory or stock exchange requirements to which any Party is subject,
but in such case the Party subject to the disclosure shall notify the other
Party and shall exercise all rights which it may have to prevent or restrict
disclosure and shall not disclose any information which it is not bound to
disclose by such requirement.
SECTION
5.06. Further
Action. The Seller, the Company and the Purchaser shall
execute and deliver such documents and other papers and take such further
actions as may reasonably be required to carry out the provisions hereof and
give effect to the transactions contemplated hereby.
SECTION 5.07. Conduct
Pending Closing. The Seller and the Company undertakes to the
Purchaser that pending Closing, each of them shall not and share procure no
member of the Group to carry on any of the actions set out in Schedule 4 to this
Agreement without prior written consent of the Purchaser.
14
ARTICLE
VI
CONDITIONS
TO CLOSING
SECTION
6.01. Conditions to
Obligations of the Seller and the
Company. The obligations of the Seller and the Company to
consummate the transactions contemplated by this Agreement shall be subject to
the fulfillment, at or prior to the Closing, of each of the following
conditions, unless otherwise waived by the Seller and the Company:
(a) Representations and
Warranties of the Purchaser. The representations and
warranties of the Purchaser contained in this Agreement shall have been true and
correct in all material respects as of the Closing, with the same force and
effect as if made as of the Closing, and the Seller shall have received a
certificate of the Purchaser to such effect signed by a duly authorized officer
thereof;
(b) Resolutions of the
Purchaser. The Purchaser shall have delivered to the Seller a
true copy, certified by a director or the company secretary or assistant
secretary or an equivalent officer of the Purchaser, of the resolutions duly and
validly adopted by the board of directors of the Purchaser evidencing its
authorization of the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby;
SECTION
6.02. Conditions to Obligations of
the Purchaser. The obligation of the Purchaser to consummate
the transactions contemplated by this Agreement shall be subject to the
fulfillment, at or prior to the Closing, of each of the following conditions,
unless otherwise waived by the Purchaser:
(a) Representations and
Warranties of the Seller and the Company. (i) The
representations and warranties of the Seller and the Company contained in this
Agreement shall have been true and correct in all material respects as of the
date hereof and shall be true and correct in all material respects as of the
Closing with the same force and effect as if made as of the Closing, other than
such representations and warranties as are made as of another date; the
covenants and agreements contained in this Agreement to be complied with by the
Seller and the Company on or before the Closing shall have been complied with in
all material respects, and the Purchaser shall have received a certificate from
the Seller to such effect signed by the Seller and the Company a duly authorized
officer of the Company;
(b) No Proceeding or
Litigation. No Action shall have been commenced or threatened
by or before any Governmental Authority or non-governmental Authority against
the Seller, or the Company seeking to restrain or materially adversely alter the
transactions contemplated hereby which, in the reasonable, good faith
determination of the Purchaser, is likely to render it impossible or unlawful to
consummate such transactions contemplated hereby or which could reasonably be
expected to have a Material Adverse Effect; provided, however, that the
provisions of this Section 6.02(b) shall
not apply if the Purchaser has directly or indirectly solicited or encouraged
any such Action;
(c) Resolutions of the
Seller. The Seller shall have delivered to the Purchaser a
true copy, certified by directors of the Seller, of the resolutions duly and
validly adopted by the shareholders’ meeting evidencing its authorization of the
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby;
15
(d) Regulatory
approval. The obtaining of all such necessary approval, consents,
permission, registration, filings from the government departments, authorities
or agencies and/or registries in relation to the transaction contemplated under
this Agreement to the satisfaction of the Purchaser;
(e) Due
Diligence. the Purchaser being satisfied with the results of the due
diligence review to be conducted on the business, operation, assets and
liabilities of each member of the Group.
(f) Simultaneous
Closing. the Purchaser shall not be required to purchase any of the
Sale Shares or Sale Loan unless closing for the Sale Shares and Sale Loan take
place simultaneously.
SECTION
6.03. Covenants by the Seller and
the Company. Each of the Seller and the Company agrees and
undertakes to the Purchaser that each of them shall use their best efforts to
procure the fulfillment of the conditions in Section 6.02 prior to the Closing
Date.
ARTICLE
VII
INDEMNIFICATION
SECTION
7.01. Survival. Each
of the representations and warranties contained in this Agreement or in any
certificate or other writing delivered pursuant hereto or in connection herewith
shall continue in full force and effect until the second anniversary of the
Closing Date; provided, however, that (i) the
representations and warranties made pursuant to Sections 3.01, 3.02, 3.03, 3.04,
3.05, and Article IV shall survive without limitations; and (ii) the
representations and warranties made pursuant to Sections 3.07 shall continue in
full force and effect until the fifth anniversary of the Closing Date. Neither
the period of survival nor the liability of the Seller and the Company pursuant
to this Article VII with respect to the representations and warranties made
pursuant to Article III shall be reduced by any investigation made at any time
by or on behalf of the Purchaser. If written notice of a claim has
been given prior to the expiration of the applicable representations and
warranties by either Party to the other, then the relevant representations and
warranties shall survive as to such claim, until such claim has been finally
resolved.
SECTION
7.02. Indemnification by the
Seller. The
Seller shall indemnify, defend and hold harmless the Purchaser, the Affiliates
of the Purchaser and their employees, officers and directors (each a “Indemnified Person”)
from and against any and all Actions, damages, losses, liabilities and expenses
(including, without limitation, reasonable expenses of investigation and
reasonable attorneys’ fees and expenses in connection with any Action whether
involving a third Person claim or a claim solely between the Parties) (the
“Losses”)
arising out of, in connection with or in relation to:
(i) a
breach of any representation or warranty made by the Seller and the Company in
this Agreement (“Warranty Breach”);
or
(ii) a
breach of any covenant or agreement by the Seller and the Company contained in
this Agreement; or
16
(iii) any
and all Losses suffered or incurred by the Purchaser by reason of or in
connection with any claim or cause of action of any third Person to the extent
arising out of any action, inaction, event, condition, liability or obligation
of the Seller or the Company occurring or existing prior to the Closing;
or
(iv) any
liability, arising before or after the Closing Date, that are not
expressly assumed by the Purchaser pursuant to this Agreement.
SECTION
7.03. Notice of Claims. If
any Indemnified Person is threatened with any claim, or any claim is presented
to or made to an Indemnified Person, or any Action is commenced against an
Indemnified Person, which may give rise to a right to indemnification hereunder,
such Indemnified Person shall, with reasonable promptness, give written notice
of such claim to the Seller, stating the amount of the Loss and method of
computation thereof, and containing a reference to the provisions of this
Agreement in respect of which such right of indemnification is claimed or
arises; provided, however, that the
failure to provide such notice shall not release the Seller from any of its
obligations under this Article VII except to the extent that the Seller are
materially prejudiced by such failure and shall not relieve the Seller from any
other obligation or liability that it may have to the Indemnified Person
otherwise than under this Article VII. Without prejudice to the
Indemnified Person’s right of indemnification under this Article VII, the
Indemnified Person shall before taking any Action with respect to the subject
claim, make itself available to meet with the Seller and, along with the Seller,
attempt to resolve and/or settle the subject claim. The obligations and
liabilities of the Seller under this Article VII with respect to Losses arising
from claims of any third Person which are subject to the indemnification
provided for in this Article VII (the “Third Person Claims”)
shall be governed by and be contingent upon the following additional terms and
conditions: the Seller may elect, after consultation with the Indemnified Person
and within thirty (30) days after the receipt of a notice of claim and upon
written acknowledgement of its indemnification obligations to the Indemnified
Person hereunder, or five (5) days before the return date required by any claim,
citation or other statute, whichever occurs earlier, to contest and defend
against any Third Person Claims at the Seller’ expense, and shall give written
notice to the Indemnified Person of the commencement of such contest or defense
with reasonable promptness after the giving of the written notice of such claim
by the Indemnified Person. If the Seller acknowledge in writing their
obligation to indemnify the Indemnified Person hereunder against any Third
Person Claim, then the Seller shall be entitled to assume and control the
defense of such claim at its expense and through counsel of their choice if they
give notice of their intention to do so to the Indemnified Person within five
(5) days of the receipt of such written acknowledgement by the Indemnified
Person; provided, however, that if
there exists or is reasonably likely to exist a conflict of interest that would
make it inappropriate in the judgment of the Indemnified Person in its sole and
absolute discretion for the same counsel to represent both the Seller and the
Indemnified Person, then the Indemnified Person shall be entitled to retain its
own counsel in each jurisdiction for which the Indemnified Person determines
counsel is required, at the expense of the Seller. In the event that
the Seller exercise their right to undertake any such defense against any such
Third Person Claim as provided herein, the Indemnified Person shall cooperate
with the Seller in such defense and make available to the Seller, at the Seller’
expense, all witnesses, pertinent records, materials and information in the
Indemnified Person’s possession or under his control relating thereto as is
reasonably required by the Seller. Similarly, in the event the
Indemnified Person is, directly or indirectly, conducting the defense against
any such Third Person Claim, the Seller shall cooperate with the Indemnified
Person in such defense and make available to the Indemnified Person, at the
Seller’ expense, all such witnesses, records, materials and information in the
Seller’ possession or under his control relating thereto as is reasonably
required by the Indemnified Person. No Third Person Claim may be
settled by the Seller without the prior written consent of the Indemnified
Person.
17
ARTICLE
VIII
TERMINATION,
AMENDMENT AND WAIVER
SECTION
8.01. Termination. This
Agreement may be terminated at any time prior to the Closing in accordance with
the following provisions:
(a) Either
the Seller or the Purchaser shall be entitled to elect not to complete the sale
and purchase of the Purchased Shares and, accordingly, to terminate this
Agreement if on or before the Closing Date:
(i) either
the Purchaser or the Seller becomes aware that one or more of the
representations or warranties of the other Party contained in this Agreement is
or are untrue, incorrect or misleading as of the date given in any material
respect; or
(ii) there
is a breach of any agreement, covenant or obligation of the other Party under
this Agreement and the other Party has failed to cure such breach within a
30-day period of receiving written notice thereof or such breach is not
remediable; or
(iii) any
Action shall have been commenced or threatened by or before any Governmental
Authority against the Company, the Seller or the Purchaser, seeking to restrain
the transactions contemplated by this Agreement which, in its reasonable, good
faith determination, is likely to render it impossible or unlawful to consummate
such transactions; provided, however, that the
provisions of this Section 8.01(a)(iii)
shall not apply if the Company or the Party seeking termination has directly or
indirectly solicited or encouraged any such Action; or
(iv) the
other Party is unable to fulfill the conditions set forth in Section 6.01 or
Section 6.02 of
this Agreement, as the case may be, within three (3) months from the date of
this Agreement.
(b) The
Seller and the Purchaser may terminate this Agreement at any time by mutual
written consent.
SECTION
8.02. Effect of
Termination. In the event of termination of this Agreement as
provided in Section 8.01, this Agreement shall forthwith become null and void
and there shall be no liability on the part of either Party hereto except (a) as
set forth in Sections 5.03 and Section 8.04, and (b) that nothing herein shall
relieve any Party from liability for any breach of this Agreement or negligence
or willful failure to fulfill a condition to the performance of the other
Party.
SECTION
8.03. Waiver. Either
Party to this Agreement may (a) extend the time for the performance of any of
the obligations or other acts of the other Party, (b) waive any inaccuracies in
the representations and warranties of the other Party contained herein or in any
document delivered by the other Party pursuant hereto, or (c) waive compliance
with any of the agreements or conditions of the other Party contained
herein. Any such extension or waiver shall be valid only if set forth
in an instrument in writing signed by the Party to be bound
thereby.
18
SECTION
8.04. Return of Initial Payment. In the event of
termination of this Agreement as provided in Section 8.01, the Seller shall
return to the Purchaser the Initial Payment within 7 days from the date of
termination.
ARTICLE
IX
ARBITRATION
SECTION
9.01. Reference to
Arbitration. Any dispute, controversy or claim arising out of
or in connection with this Agreement or any breach hereof (collectively, the
“Dispute”) , if
unresolved after sixty (60) days of written notice about the Dispute sent by one
party, may be referred by any Party to the Hong Kong International Arbitration
Center (“HKIAC”) and finally
resolved under the current Rules of Arbitration of the HKIAC in Hong Kong. If
any provisions of this Agreement is unenforceable for any reason, the provision
in question shall be executed to the largest extend to realize each Parties’
intention when making this provision. The arbitration panel shall consist of
three arbitrators appointed in accordance with Rules of Arbitration of the
HKIAC. The languages to be used in the arbitral proceedings shall be
English. The arbitral award rendered by the arbitration tribunal in such
arbitration shall be final and binding upon the Parties. During the period of
arbitration, except issues relating to arbitration proceedings, each Party shall
continue to perform this Agreement.
ARTICLE
X
GENERAL
PROVISIONS
SECTION
10.01. Expenses. All
duties, costs and expenses, including but not limited to, fees and disbursements
of counsel, financial advisors and accountants, incurred in connection with this
Agreement and the transactions contemplated hereby, shall be paid by the Party
incurring such costs or expenses.
SECTION
10.02. Notices. All
notices, requests, claims, demands and other communications hereunder shall be
in writing and shall be given or made (and shall be deemed to have been duly
given or made upon receipt) by delivery in person, by air-courier service, by
telecopy or by registered or certified mail (postage prepaid, return receipt
requested) to the respective Parties at the following addresses:
If
to the Seller:
|
Address:
|
中国内蒙古乌兰察布四子王旗乌兰花镇建国路
|
Attention: | 于晓静 | |
Facsimile: | (86)0471-3316020 |
If to the
Company:
|
Address:
|
吉尔吉斯斯坦共和国 比什凯克市 莱蒙托夫大街35号 |
Attention: | 徐学明 | |
Facsimile: | (00996)312596557 |
If to the
Purchaser:
|
Address:
|
301, 3rd Floor, Xxxx Xxx Mansion, 000-000 Xxxxxxxx Xxxx,
Xxx Xxxx, Xxxx Xxxx
|
Attention: | Lu Shengjing | |
Facsimile: | x000 00000000 |
19
SECTION
10.03. Severability. If
any term or provision of this Agreement shall be held to be invalid or
unenforceable in whole or in part under any applicable Law, it shall be excluded
from this Agreement (to the extent of such invalidity or unenforceability only),
and all other terms and provisions of this Agreement shall continue to be in
full force and effect. Under such circumstances, the Parties shall
use their best efforts to implement both the letter and spirit of this Agreement
and replace the invalid or unenforceable term or provision with a valid and
enforceable term or provision that corresponds as far as possible to the spirit
and purpose of the invalid or unenforceable term or provision.
SECTION
10.04. Amendment. This
Agreement may not be amended or modified except by an instrument in writing
signed by, or on behalf of, the Seller and the Purchaser.
SECTION
10.05. Assignment and
Succession. The parties agree that the Purchaser shall have the right to
transfer its rights and obligations under this Agreement to its wholly owned
subsidiaries without any restriction. This Agreement may not be assigned by
operation of Law or otherwise without the express written consent of the other
Party (which consent may be granted or withheld at the sole discretion of such
Party). This Agreement shall be binding upon and inure to the benefit
of the Parties hereto and their respective successors and permitted
assigns.
SECTION
10.06. Entire
Agreement. This Agreement constitutes the entire agreement of
the Parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and undertakings, both written and oral between them with
respect to the subject matter hereof. Any schedules and exhibits to
this Agreement shall constitute an integral part of this Agreement.
SECTION
10.07. Waivers, Remedies
Cumulative. No failure on the part of any Party to this
Agreement to exercise, and no delay on its part in exercising, any right or
remedy under this Agreement will operate as a waiver thereof, nor will any
single or partial exercise of any right or remedy preclude any other or further
exercise thereof or the exercise of any other right or remedy. The
rights and remedies provided in this Agreement are cumulative and not exclusive
of any rights or remedies provided by Law.
SECTION
10.08. Liabilities for
Breach. Each of the Parties hereto shall bear liabilities for
breach of this Agreement in accordance with Law and the provisions
hereof.
20
SECTION
10.09. No
Agency. This Agreement does not constitute any Party the agent
or representative of the other Party. No Party is authorized to
create any obligation on behalf of the other Party.
SECTION
10.10. Specific
Performance. The Parties hereto agree that irreparable damage
would occur in the event any provision of this Agreement is not performed in
accordance with the terms hereof and that the Parties shall be entitled to
specific performance of the terms hereof, in addition to any other remedy at law
or equity, without the necessity of demonstrating the inadequacy of money
damages.
SECTION
10.11. Counterparts. This
Agreement may be executed and delivered (including by facsimile transmission) in
any number of counterparts, and by each of the Parties hereto in separate
counterparts, each of which when executed shall be deemed to be an original, but
all of which taken together shall constitute one and the same agreement and
shall be enforceable as such.
SECTION
10.12. Time
of Essence. Time shall be of the essence of this Agreement,
both as regards the times, dates and periods mentioned herein and as to any
times, dates and periods which may, by agreement in writing between or on behalf
of the Parties, be substituted for them.
SECTION
10.13. Governing
Law. The formation, validity, interpretation, execution of
this Agreement and settlement of any disputes arising hereunder shall be
governed by and in accordance with the Laws of the Hong Kong Special
Administrative Region.
21
SCHEDULE
1
公司详情
公司名称:
|
Общество
с ограниченной ответственностью «ТУН-ЛИН»
|
“铜陵”有限责任公司
|
|
“TUN-LIN”
Limited Liability Company
|
|
设立地:
|
Кыргызкая Республика, г.
Бишкек
|
吉尔吉斯共和国比什凯克市
|
|
公司设立证明编号:
|
22223-3300-ООО(ИУ)
|
设立日期:
|
2005年6月1日
|
注册地址:
|
Кыргызкая
Республика, г. Бишкек, ул. Лермонтва, 35 а.
|
吉尔吉斯共和国比什凯克市列尔蒙托瓦大街35a
|
|
注册资本:
|
5000索姆
|
已发股本:
|
5000索姆
|
股东:
|
Горная
блоковая компания с ограниченной ответственностью АРВМ «Сян-Чжэнь»
|
内蒙古翔振矿业集团有限责任公司
|
|
董事:
|
无(说明:公司采用总经理负责制,总经理为于晓静)
|
业务性质:
|
根据公司章程经营矿山开发和吉尔吉斯法律允许的所有业务
|
备注:АРВМ为Автономной район
Внутренняя Монголия(内蒙古自治区)的缩写。
22
SCHEDULE
2
子公司详情
公司名称:
|
Закрытое
акциоерное Общество "Кичи-чаарат"
|
“基奇-恰阿拉特”封闭式股份公司
|
|
“Kichi-Chaarat” Closed Joint-Stock
Company
|
|
设立地:
|
Кыргызкая Республика, г. Жалал-Абад
|
吉尔吉斯共和国贾拉拉巴德市
|
|
公司设立证明编号:
|
8063-3303-ЗАО
|
设立日期:
|
2009年5月27日
|
注册地址:
|
Кыргызкая Республика, Жалал-Абадская область, Чаткальский
район, село Чакмак-Суу
|
吉尔吉斯共和国贾拉拉巴德州恰特卡尔区恰克马克
苏镇
|
|
注册资本:
|
10000索姆
|
已发股本:
|
100股 (每股100索姆)
|
股东:
|
Общество с ограниченной ответственностью «ТУН
-ЛИН»
|
“铜陵”有限责任公司
|
|
“TUN-LIN” Limited Liability
Company
|
|
董事:
|
无(说明:公司采用总经理负责制,总经理
为徐学明)
|
业务性质:
|
根据公司章程经营矿山开发和吉尔吉斯法律允许的所有
业务
|
23
SCHEDULE
3
FURTHER
REPRESENTATIONS AND WARRANTIES
1. SALE
SHARES
(A)
|
The
Sale Shares are fully paid up and rank pari passu in all respects with the
other issued Shares, and the Seller represent that they are the beneficial
owners of the Sale Shares free and clear of all Encumbrances whatsoever
and there is outstanding no calls on any of the Sale Shares and all of the
Sale Shares are fully paid.
|
(B)
|
The
Seller represent that they are the beneficial owners of the Sale Loan free
and clear of all Encumbrances whatsoever and the Sale Loan is valid, legal
and subsisting.
|
2. INCORPORATION
AND CORPORATE STRUCTURE
Each
member of the Group Companies has been duly incorporated and is validly existing
under the laws of the jurisdiction of its incorporation and the information
contained in the Recitals is true and correct. The details relating
to the capital structure of the Group and ownership of the Sale Shares as set
out in Schedule 1 and 2 are true, complete and accurate in every
respect;
3. COMPLIANCE
WITH CONSTITUTIONS
The
copies of the memorandum and articles of association of each of the member of
the Group which have been produced to the Purchaser are true and complete in all
respects and have attached to them copies of all resolutions which are required
by the applicable laws and regulations to be so attached. Each member of the
Group have complied with its memorandum and articles of association in all
respects and none of the activities, agreements, commitments or rights of the
relevant member of the Group is ultra xxxxx or unauthorised.
4. NO
OPTIONS OR OTHER SECURITIES
There are
no options or other agreements outstanding which call for the issue of or accord
to any person, the right to call for the issue of any loan or share capital of
any member of the Group or the right to require the creation of any mortgage,
charge, pledge, lien or other security or encumbrance;
5. CORPORATE
RECORDS
The
register of members of each of the member of the Group and all other statutory
books of each of the member of the Group are up to date and contain true records
of all matters required by the applicable laws and regulations to be dealt with
therein and each of the member of the Group has not received any notice of any
application or intended application under any applicable laws and regulations
for rectification of the register of members of any member of the and all annual
or other returns required to be filed with the relevant companies registries
have been properly filed within any applicable time limit and all legal
requirements relating to the formation of each member of the Group and the issue
of shares and other securities have been complied with.
24
6. MINING
LICENCE
(A) True
and complete copy of the Mining Licence has been supplied to the Purchaser, and
such Mining Licence constitutes the entire documents in respect of the Mining of
the Mine and is legal, valid and subsisting in accordance with its
terms.
(B) All
covenants, obligations, conditions or restrictions imposed upon the Company have
been duly and promptly observed and performed and there has been no breach by
the Company under the Mining Licence.
(C) All
payment obligations under the Mining Licence have been promptly paid by the
Company as and when due.
(D) There
are no disputes or outstanding or expected claims among the parties under the
Mining Licence and there are no circumstances giving rise to such disputes or
claims.
7. ACCOUNTS
(A) The
Management Accounts gives a true and fair view of the state of affairs of the
Group as at the Management Accounts Date and of the consolidated profits or
losses of the Company for the financial period ended on the Management Accounts
Date and are prepared in accordance with generally accepted accounting
principles in Hong Kong consistently applied.
8. TITLE
TO ASSETS
Each
member of the Group has good title to the assets used in its business free from
all Encumbrances.
9. COMPLIANCE
WITH APPLICABLE LAWS
The Group
has at all times carried on and will after Completion carry on its business in
compliance with all applicable laws and regulations in all material respects
and, without prejudice to the generality of the foregoing, the Group has
obtained all licences and consents necessary for the carrying on of its
business, and all such licences and consents are valid and subsisting and so far
as the Vendors are aware there is no reason why any of the Group Companies
should be suspended, cancelled or revoked. No member of the Group is
in breach in any material respect of any material contracts by which it is
bound.
10. NO
MATERIAL NON-DISCLOSURE
There are
no adverse material or substantial factors or circumstances known to the Seller
relating to the business or affairs of the Group which have not been disclosed
to the Purchaser.
11. TAXATION
The
Management Accounts has made full provision or reserve, in accordance with the
principles set out in the notes respectively included in them, for all Taxation
liable to be assessed on the Group, or for which the Group may be accountable,
in respect of the period ended on the Management Accounts Date and such
provision will be sufficient to cover all Taxation assessed or liable to be
assessed on the Group or for which the Group, is, may be or may become
accountable in respect of profits, income earnings, receipts, transfers, events
and transactions up to and including the last day to which they
relate. The Group has duly complied with its obligations to account
to the relevant tax authorities for all amounts for which it is or may become
accountable in respect of Taxation. All returns in connection with
Taxation that should have been made by the Group have been made currently and on
a proper basis. The Group has duly and punctually paid all Taxation
which it has become liable to pay and is under no liability to pay any penalty
or interest in connection with any claim for Taxation.
25
12. EVENTS SINCE THE MANAGEMENT
ACCOUNTS DATE
(A)
|
Since
the Management Accounts Date,
|
|
(1)
|
there
has been no material and adverse change in the assets and liabilities,
financial position, trading condition and prospects of the
Group;
|
|
(2)
|
the
business of the Group has been carried on in the ordinary and usual course
and so as to maintain the same as a going
concern;
|
|
(3)
|
the
Group has not become bound or liable to be called upon to repay
prematurely any loan capital;
|
|
(4)
|
the
Group has not (i) acquired any assets of whatsoever nature; (ii) sold,
transferred or otherwise disposed of any assets of whatsoever nature;
(iii) cancelled or waived or released or discounted in whole or in part
any debts or claims;
|
|
(5)
|
the
Group has not incurred any capital expenditure or made any capital
commitment otherwise than in its ordinary course of business;
and
|
|
(6)
|
the
Group has not changed any method of management or operation in respect of
the business, undertaking or assets of the Group except in manner
consistent with proper prior
practice.
|
(B)
|
No
circumstances exist whereby (whether by reason of an existing agreement or
arrangement or otherwise) as a result of the acquisition of the Sale
Shares and subscription for the Subscription Shares referred to in this
Agreement:
|
|
(1)
|
any
supplier of the Group will cease, or be entitled to cease, supplying the
Group, or may substantially reduce its supplies to the Group or will vary
the terms and conditions of such supplies to a material extent;
and
|
|
(2)
|
any
customer of the Group will cease, or be entitled to cease, to deal with it
or may substantially reduce its existing level of business with
it.
|
13. MATERIAL
CONTRACTS
(A)
|
Save
as provided in this Agreement, each member of the Group has not entered
into any contract since its incorporation and there is no claim under any
agreement, instrument or arrangement which any member of the Group is a
party in respect of any default, breach, negligent or defective
performance or otherwise and no such claim is threatened against the Group
and there is no circumstances that will likely give rise to such a
claim.
|
26
(B)
|
No
party to any agreement with, or under an obligation to the Group is in
default under it. The Group is not in default under any
agreement or covenant to which it is a
party.
|
(C)
|
There
is no offer, tender or the like outstanding which is capable of being
converted into an obligation of the Group by acceptance, or other act of
some other person, firm or company.
|
(D)
|
Each
member of the Group is not a party to any contract, transaction,
arrangement or liability which:
|
|
(1)
|
is
of an unusual or abnormal nature, or outside the ordinary and proper
course of business;
|
|
(2)
|
cannot
readily be fulfilled or performed by it on time without undue, or unusual,
expenditure of money, effort or personnel;
or
|
|
(3)
|
involves,
or is likely to involve obligations or liabilities which, by reason of
their nature or magnitude ought reasonably to be made known to an
intending purchaser of the Sale
Shares.
|
(E)
|
Each
member of the Group has not manufactured, sold or supplied services or
products which are, or were, or will become, in any respect faulty or
defective, or which do not comply in any respect with any term, warranties
or representations, expressly or impliedly made by the relevant member or
with all applicable regulations, standards, requirements and codes of
practice.
|
(F)
|
Each
member of the Group is not subject to any liability or obligation to
service, repair, remedy or is otherwise required to do anything in respect
of any services or contracts which have been performed by
it.
|
(G)
|
There
is not now outstanding, and there has not at any time during the two years
prior to the date of this Agreement been outstanding any contract or
arrangement to which the Group is a party and in which the Vendor or any
director of the Group Companies, is or has been interested, whether
directly or indirectly.
|
(H)
|
Each
member of the Group is not a party to, and its profits or financial
position during the three years prior to the date of this Agreement have
not been affected by, any contract or arrangement which is not of an arm's
length nature.
|
14. INSURANCES
(A)
|
The
Group has taken out insurances which provide cover in similar amounts and
against such risk (including without limitation, risk in respect of
personal injury, occupational diseases and death to employees in carrying
out their respective duties) usually insured by prudent companies carrying
on the same type of business as the Group and in particular has maintained
all insurance required by all applicable laws and
regulations.
|
27
(B)
|
All
such insurances are in full force and effect and nothing has been done or
omitted to be done which could make any policy void or voidable and all
premium payable has been paid and no claim is outstanding under any of
such insurance.
|
15. ENVIRONMENT
(A) For
the purposes of this paragraph:
|
(i)
|
“Environment”
means all or any part of the air (including, without limitation, air
within buildings or natural or man-made structures whether above or below
ground), water (including, without limitation, territorial, ocean, coastal
and inland waters, surface water, groundwater and drains and sewers) and
land (including, without limitation, sea bed or river bed under any water
as described above, surface land and sub-surface land, and any natural or
man-made structures), and also includes human, animal and plant life;
and
|
|
(ii)
|
“Environmental
Law” means any treaty, national, state, federal or local law, common law
rule or other rule, regulation, ordinance, by-law, code, decree, demand or
demand letter, injunction, judgement, notice or notice demand, code of
practice, order or plan issued, promulgated or approved thereunder or in
connection therewith pertaining to the protection of the Environment or to
health and safety matters (and shall include, without limitation, laws
relating to workers and public health and
safety).
|
(B) Each
member of the Group has complied and is complying with all Environmental Laws
that are applicable to its business where it is being carried on.
(C) There
is no civil, criminal or administrative action, claim, investigation or other
proceeding or suit pending or threatened against any member of the Group arising
from or relating to Environmental Law which is material in the context of the
Group as a whole and there are no circumstances existing which may lead to any
such action, claim, investigation, proceeding or suit.
(D) Each
member of the Group conducts its operations so as not to lead to a breach of
Environmental Law and in accordance with good operating practice of the industry
in relation to all matters, practices and activities which could affect or cause
harm to the Environment.
(E) None
of the member of the Group occupies, leases, owns, uses or has previously used,
owned, leased or occupied, any property such that it is or may be wholly or
partly responsible for the costs of any clean-up or other corrective action to
any site or any part of the Environment.
(F) There
are no circumstances which require or may require any member of the Group to
incur significant expenditure which is material in the context of the Group as a
whole in respect of the Environment or under Environmental Law.
(G) Each
member of the Group has all permits, authorizations and approvals required under
any applicable Environmental Laws and are each in compliance with their
requirements and no events or circumstances that would reasonably be expected to
form the basis of an order for clean-up or remediation, or an action, suit or
proceeding by any private party or government agency, against or affecting the
any member of the Group relating to hazardous materials or Environmental Laws
have occurred.
28
SCHEDULE
4
CONDUCT
PENDING CLOSING
(a)
|
the
creation or issue of any shares in any member of the Group or the grant of
any options over any shares or the uncalled capital of any member of the
Group or the issue of any warrant, debentures, securities or other
obligations convertible into shares in any member of the Group or enter
into any agreement to do any of the
same;
|
(b)
|
the
capitalisation, repayment or other distribution of any amount standing to
the credit of any reserve of any member of the Group on the redemption or
purchase of any shares of any member of the Group or any other
reorganisation of share capital;
|
(c)
|
the
winding-up or liquidation of any member of the
Group;
|
(d)
|
the
alteration of the rights attaching to any of the Sale Shares or the shares
in any member of the Group;
|
(e)
|
the
alteration of the memorandum and articles of association of any member of
the Group and the passing of any resolutions inconsistent with the
provision of this Agreement;
|
(f)
|
the
acquisition or disposal of any lease or any other interests in real
property owned or occupied by any member of the Group or the creation of
any mortgage or other encumbrance over such
property;
|
(g)
|
the
acquisition or disposal of any property or other asset by any member of
the Group if the aggregate sum involved exceeds (or, in the case of a
disposal, if the book value exceeds) HK$500,000 other than acquisition or
disposals in the ordinary course of business of the
Group;
|
(h)
|
the
acquisition or formation by any member of the Group of any subsidiary or
the acquisition of any share in any other company or the participation by
any member of the Group in any partnership or joint
venture;
|
(i)
|
the
sale or disposal of the whole or a substantial part of the undertaking of
any member of the Group;
|
(j)
|
the
entering into of any material contract by any member of the Group other
than in its ordinary course of
business;
|
(k)
|
except
in the ordinary and normal course of business of the relevant member of
the Group, the lending of any moneys (otherwise than by way of deposit
with a bank or other institution the normal business of which includes the
acceptance of deposit), the granting of any credit or the giving of any
guarantee or indemnity;
|
(l)
|
the
amalgamation or merger of any member of the Group with any other company
or concern;
|
29
(m)
|
the
alteration of the composition of any board of directors of any member of
the Group;
|
(n)
|
the
making of any capital commitment by any member of the
Group exceeding
HK$500,000;
|
(o)
|
the
making, declaration or payment of any dividend or distribution save as
disclosed in the Management
Accounts;
|
(p)
|
doing,
allowing or procuring any act or omission on or before Closing which will
constitute a breach of any of the warranties by the Seller or the
Company;
|
(q)
|
doing
anything which is likely to materially jeopardize or diminish the value of
any tangible assets of the Group;
or
|
(r)
|
the
borrowing of any moneys exceeding HK$500,000 or
equivalent.
|
30
SCHEDULE
5
FORM
OF TAX INDEMNITY
THIS
DEED OF INDEMNITY AND GUARANTEE is dated [*] and made
by
Inner Mongolia Xiangzhen Mining Group
Co., Ltd., a company organized and existing under the Laws of People’s
Republic of China with its legal address at Jianguo Road, Wulanhua, Sizi wang
Qi, Wulanchabu, Inner Mongolia, People’s Republic of China; (the “Vendor”)
IN
FAVOR OF:
(1)
|
Fortune Pegasus International
Limited 福骏国际有限公司, a company organized
and existing under the Laws of British Virgin Islands with its business
address at XX Xxx 0000, Xxxx Xxxx, Xxxxxxx, Xxxxxxx Xxxxxx Xxxxxxx (the
“Purchaser”);
and
|
(2)
|
Xxx Xxx Limited Liability
Company in the Kyrgyz Republic, an exempt company organized under
the laws of Kyrgyz Republic (the “Company”) on its own
behalf and as trustee for the companies whose names,
places of incorporation and attributable interest of the Company are set
out in the Schedule (the “Subsidiaries”)
|
WHEREAS:
(A)
|
This
Deed is supplemental to an agreement (the "Agreement") dated [•] and made
between the Vendor as vendor and the Purchaser as purchaser in relation
to, inter alia, the sale and purchase of the entire issued share capital
of the Company.
|
(B)
|
It
is a condition of the Agreement that the Vendor shall enter into this Deed
to provide the Purchaser and the Company and Subsidiaries with a guarantee
and indemnity subject to the terms and conditions herein
contained.
|
NOW THIS DEED WITNESSES AND IT IS
HEREBY AGREED as follows:
1.
|
(A)
|
In
this Deed, expressions defined or to which a meaning is assigned in the
Agreement shall, unless otherwise defined herein, bear the same meanings
when used herein.
|
(B)
|
In
this Deed:
|
|
(i)
|
"Relief" includes any
relief, allowance, set off or deduction in computing profits or credit
granted by or pursuant to any legislation or otherwise relating to all
forms of Taxation;
|
|
(ii)
|
"Taxation"
means:
|
|
(a)
|
any
liability to any form of taxation whenever created or imposed and whether
of Hong Kong and PRC or of any other part of the world and without
prejudice to the generality of the foregoing includes profits tax,
provisional profits tax, interest tax, salaries tax, property tax, estate
duty, death duty, capital duty, stamp duty, payroll tax, withholding tax,
rates, customs and exercise duties and generally any tax duty, impost,
levy or rate or any amount payable to the revenue, customs or fiscal
authorities whether of Hong Kong or of any other part of the
world;
|
31
|
(b)
|
such
an amount or amounts as is or are referred to in paragraph (vi) of this
Clause; and
|
|
(c)
|
all
costs, interest, penalties, charges and expenses incidental or relating to
the liability to Taxation or the deprivation of Relief or of a right to
repayment of Taxation which is the subject of the indemnity and guarantee
contained in Clause 3 to the extent that the same is/are payable or
suffered by the Companies;
|
|
(iii)
|
"Taxation Claim" includes
any assessment, notice, demand or other documents issued or action taken
by or on behalf of the Inland Revenue Department of Hong Kong or any other
statutory or governmental authority whatsoever in Hong Kong or PRC or any
other part of the world from which it appears that the Companies is liable
or is sought to be made liable for any payment of any form of Taxation or
to be deprived of any Relief or right to repayment of any form of Taxation
which Relief or right to repayment would but for the Taxation Claim have
been available to the Companies;
|
|
(iv)
|
in
the event of any deprivation of any Relief or of a right to repayment of
any form of Taxation there shall be treated as an amount of Taxation for
which a liability has arisen the amount of such Relief or repayment or (if
smaller) the amount by which the liability to any such Taxation of the
Companies would have been reduced by such Relief if there had been no such
deprivation as aforesaid, applying the relevant rates of taxation in force
in the period or periods in respect of which such Relief would have
applied or (where the rate has at the relevant time not been fixed) the
last known rate and assuming that the Companies had sufficient profits
against which such Relief might be set or given;
and
|
|
(v)
|
“Companies” means the
Company and the Subsidiaries.
|
|
(C)
|
In
this Deed, unless the context otherwise requires, the singular includes
the plural and vice versa, words importing any gender include every gender
and references to persons include firms, companies and
corporations.
|
|
(D)
|
In
this Deed, references to clauses are to Clauses of this
Deed.
|
|
2.
|
(A)
|
The
Vendor hereby agrees with the Purchaser and the Companies that it will
indemnify and guarantee and at all times keep them and each of them
indemnified and guaranteed against Taxation falling on the Companies
resulting from or by reference to any income, profits or gains earned,
accrued or received on or before the Completion Date or any event or
transaction on or before the Completion Date whether alone or in
conjunction with any circumstances whenever occurring and whether or not
such Taxation is chargeable against or attributable to any other person,
firm or company.
|
32
|
(B)
|
The
indemnity and guarantee contained in sub-clause (A) above shall not apply
to Taxation falling on the Companies in respect of their current
accounting periods or any accounting period commencing on or after the
Completion Date unless liability for such Taxation would not have arisen
but for some act or omission of, or transaction voluntarily effected by,
the Companies (whether alone or in conjunction with some other act,
omission or transaction, whenever occurring) without the prior written
consent or agreement of the Vendor other than any such act, omission or
transaction:
|
|
(i)
|
carried
out or effected in the ordinary course of business or in the ordinary
course of acquiring and disposing of capital assets on or before the
Completion Date; or
|
|
(ii)
|
carried
out, made or entered into pursuant to a legally binding commitment created
on or before the Completion Date;
or
|
|
(iii)
|
consisting
of the Companies ceasing, or being deemed to cease, to be a member of any
group of companies or being associated with any other company for the
purposes of any matter of Taxation.
|
3.
|
The
indemnity and guarantee given by Clause 2 does not cover any Taxation
Claim to the extent that such Taxation Claim arises or is incurred as a
result of the imposition of Taxation as a consequence of any retrospective
change in the law or practice coming into force after the Completion Date
or to the extent that such Taxation Claim arises or is increased by an
increase in rates of Taxation after such date with retrospective
effect.
|
4.
|
No
claim under this Deed shall be made by the Purchaser and the Companies in
respect of the same Taxation.
|
5.
|
In
the event of any Taxation Claim arising, the Purchaser and the Companies
shall by way of covenant but not as a condition precedent to the liability
of the Vendor hereunder give or procure that notice thereof is as soon as
reasonably practicable given to the Vendor in the manner provided in
Clause 10; and, as regards any such Taxation Claim, the Purchaser and the
Companies shall at the request of the Vendor take such action, or procure
that such action be taken, as the Vendor may reasonably request to cause
the Taxation Claim to be withdrawn, or to dispute, resist, appeal against,
compromise or defend the Taxation Claim and any determination in respect
thereof but subject to the Purchaser and the Companies being indemnified
and secured to its or their reasonable satisfaction by the Vendor against
all losses (including additional Taxation), costs, damages and expenses
which may be thereby incurred.
|
6.
|
(A)
|
If
after the Vendor has made any payment pursuant to Clause 2 hereof, the
Companies shall receive a refund of all or part of the relevant Taxation
such company (if it shall receive such refund) shall repay or (if another
of the Companies shall receive such refund) shall procure repayment by
such Company, as the case may be to the Vendor) a sum corresponding to the
amount of such refund less:
|
33
|
(i)
|
any
expenses, costs and charges properly incurred by the Companies in
recovering such refund; and
|
|
(ii)
|
the
amount of any additional Taxation which shall not have been taken into
account in calculating any other payment made or to be made pursuant to
this Clause but which is suffered by the Companies in consequence of such
refund.
|
|
(B)
|
Any
payments due by the Vendor pursuant to the foregoing provisions of this
Deed shall be increased to include such interest on unpaid tax as the
Companies shall have been required to pay pursuant to all legislations
applicable to them.
|
7.
|
The
Vendor shall be liable in perpetuity for all claims under this
Deed.
|
8.
|
The
indemnities, guarantees, agreements and undertakings herein contained
shall bind the personal representatives or successors of the Vendor and
shall enure for the benefit of each party's successors or
assigns.
|
9.
|
The
whole or any part of the benefit of this Deed may be assigned by the
Purchaser and the Company.
|
10.
|
Any
notice required to be given under this Deed shall be in writing and shall
be delivered personally or sent by facsimile or by registered or recorded
delivery post, postage prepaid to the respective party at the address set
out herein or such other address as may have been last notified in writing
by or on behalf of such party to the other parties hereto. Any
such notice shall be deemed to be served at the time when the same is
handed to or left at the address of the party to be served and if served
by post or facsimile transmission at the time it would have been received
in the normal course of post or
facsimile.
|
11.
|
This
Deed is governed by and shall be construed in accordance with the laws of
Hong Kong and the parties hereto hereby irrevocably submit to the
non-exclusive jurisdiction of the courts of Hong Kong in relation to any
proceedings arising out of or in connection with this
Deed.
|
IN WITNESS whereof this Deed of
Indemnity and Guarantee has been duly executed the day and year first above
written.
34
THE
SCHEDULE
The
Subsidiary
Name
|
Place of Incorporation
|
Attributable
Interest of
the Company (%)
|
||
Закрытое
акциоерное Общество "Кичи-чаарат"
“基奇-恰阿拉特”封闭式股份公司
“Kichi-Chaarat” Closed Joint-Stock
Company
|
吉尔吉斯共和国
|
100%
|
35
THE
VENDOR
SEALED with the COMMON SEAL
of
|
)
|
|||
and
SIGNED
by
|
)
|
|||
for
and on behalf of
|
)
|
|||
Inner
Mongolia Xiangzhen Mining
|
)
|
|
||
Group
Co., Ltd.
|
)
|
|||
in
the presence of:
|
)
|
|||
THE PURCHASER
|
||||
SEALED with the COMMON SEAL
of
|
)
|
|||
and
SIGNED
by
|
)
|
|||
for
and on behalf of
|
)
|
|||
Fortune
Pegasus International Limited
|
)
|
|||
in
the presence of:
|
)
|
36
DATE: 2009
INNER
MONGOLIA XIANGZHEN MINING GROUP CO., LTD.
(as
Vendor)
in
favour of
FORTUNE
PEGASUS INTERNATIONAL LIMITED
(as
Purchaser)
and
XXX
XXX LIMITED LIABILITY COMPANY
and
its subsidiaries
(as
the Companies)
______________________________
DEED
OF INDEMNITY AND GUARANTEE
_______________________________
37
SCHEDULE
6
DATE:
[*]
Inner
Mongolia Xiangzhen Mining Group Co., Ltd.
(as
Assignor)
and
Fortune
Pegasus International Limited
(as
Assignee)
and
Xxx
Xxx Limited Liability Company
(the
Company)
___________________________________________________
DEED
OF ASSIGNMENT
___________________________________________________
38
THIS ASSIGNMENT is dated
[*] and made
BETWEEN
(1)
|
Inner Mongolia Xiangzhen Mining
Group Co., Ltd., a company organized and existing under the Laws of
People’s Republic of China with its legal address at Jianguo Road,
Wulanhua, Sizi wang Qi, Wulanchabu, Inner Mongolia, People’s Republic of
China (the “Assignor”);
|
(2)
|
Fortune Pegasus International
Limited 福骏国际有限公司, a company organized
and existing under the Laws of British Virgin Islands with its business
address at XX Xxx 0000, Xxxx Xxxx, Xxxxxxx, Xxxxxxx Xxxxxx Xxxxxxx (the
“Assignee”);
and
|
(3)
|
Xxx Xxx Limited Liability
Company in the Kyrgyz Republic, an exempt company organized under
the laws of Kyrgyz Republic (the “Company”).
|
WHEREAS
(A)
|
As
at the date of this Assignment, the Company is indebted to the Assignor in
the aggregate amount of US$1,761,784.78 in the form of shareholder’s loan
(the “Shareholder’s
Loan”).
|
(B)
|
This
Assignment is supplemental to an agreement (the “Sale and Purchase
Agreement”) dated [*] and made between the Assignor as vendor and
the Assignee as purchaser whereby the Assignee has agreed to acquire from
the Assignor, among other matters, all the rights, titles, benefits and
interests in the Shareholder’s
Loan.
|
(C)
|
It
is a condition of the Sale and Purchase Agreement that the parties shall
enter into this Assignment.
|
NOW THIS DEED WITNESSETH AND
IT IS HEREBY AGREED as follows:
1.
|
INTERPRETATION
|
1.1
|
In
this Assignment, expressions defined or to which a meaning is assigned in
the Sale and Purchase Agreement shall, unless the context otherwise
requires, bear the same meanings when used
herein.
|
1.2
|
In
this Assignment, the expression “this Assignment” shall
mean this deed of assignment, as amended from time to
time.
|
1.3
|
The
headings of this Assignment are inserted for convenience only and shall be
ignored in construing this Assignment. Unless the context
otherwise requires, references in this Assignment to the singular shall be
deemed to include references to the plural and vice versa; references to
one gender shall include all genders and reference to any person shall
include an individual, firm, body corporate or
unincorporate.
|
2.
|
ASSIGNMENT
|
In
consideration of the payment by the Assignee to the Assignor, the Assignor as
beneficial owner hereby assigns and transfers to the Assignee absolutely all its
rights, title, interests and benefits in and to the Shareholder’s Loan free from
all Encumbrances to the intent that the Assignee shall as from the date hereof
be solely and absolutely entitled to the same to the exclusion of the
Assignor.
39
3.
|
REPRESENTATIONS,
WARRANTIES AND CONFIRMATION
|
3.1
|
The
Assignor hereby represents and warrants to the Assignee that as at the
date of this Assignment, the Assignor is solely, legally and beneficially
entitled to all of its right, title and interest in and to the
Shareholder’s Loan and has the necessary right and authority to assign the
same to the Assignee pursuant to this
Assignment.
|
3.2
|
The
Assignor hereby confirm to the Assignee that the Shareholder’s Loan is
non-interest bearing and repayable on demand, is now due and owing by the
Company to the Assignor.
|
3.3
|
The
Company hereby acknowledges and confirms to the Assignee that as from the
date hereof the Shareholder’s Loan is owed to the Assignee and the Company
will henceforth make all payment due under the Shareholder’s Loan and
discharge all of its obligations in respect thereof to the
Assignee.
|
3.2
|
The
Company further acknowledges and confirms that it has not, as at the date
hereof, received any notice that any Encumbrances have been created or are
subsisting over the Shareholder’s Loan or any part thereof or any party
has or will have any right or interest whatsoever in or over the
Shareholder’s Loan or any part
thereof.
|
4.
|
ASSIGNS
|
|
This
Assignment shall enure to the benefit of and be binding on each party and
its respective successors and permitted assigns provided that none of the
parties hereto shall assign or transfer or purport to assign or transfer
any of its rights or obligations hereunder without the consent of the
other parties hereto.
|
5.
|
GOVERNING
LAW AND JURISDICTION
|
5.1
|
This
Assignment shall in all respects be governed by and construed in
accordance with the laws of Hong
Kong.
|
5.2
|
The
parties hereto hereby irrevocably submit to the non-exclusive jurisdiction
of the Hong Kong courts.
|
5.3
|
The
Assignee appoints [*] of [*] to receive, for it and on its behalf, service
of process in the proceedings in Hong Kong. Such service shall
be deemed completed on delivery to the process agent (whether or not it is
forwarded to and received by the Assignee). If for any reason
the agent named herein (or its successor) no longer serves as agent of the
Assignee for this purpose, the Assignee shall promptly appoint a successor
agent in Hong Kong and notify the Assignor provided that until the
Assignor receives such notification, it shall be entitled to treat the
agent named herein (or its successor) as the agent of the Assignee for the
purposes of this Clause. The Assignee agrees that any such
legal process shall be sufficiently served on it if delivered to such
agent for service at its address for the time being in Hong Kong whether
or not such agent gives notice thereof to the
Assignee.
|
40
IN WITNESS whereof the parties
hereto have executed this Deed under seal as a deed on the day and year first
above written.
THE ASSIGNOR
|
||||
SEALED with the COMMON SEAL
of
|
)
|
|||
and
SIGNED
by
|
)
|
|||
for
and on behalf of
|
)
|
|||
Inner
Mongolia Xiangzhen Mining
|
)
|
|||
Group
Co., Ltd.
|
)
|
|||
in
the presence of:
|
)
|
|||
THE ASSIGNEE
|
||||
SEALED with the COMMON SEAL
of
|
)
|
|||
and
SIGNED
by
|
)
|
|||
for
and on behalf of
|
)
|
|||
Fortune
Pegasus International Limited
|
)
|
|||
in
the presence of:
|
)
|
|||
THE COMPANY
|
||||
SEALED with the COMMON SEAL
of
|
)
|
|||
and
SIGNED
by
|
)
|
|||
for
and on behalf of
|
)
|
|||
Xxx
Xxx Limited Liability Company
|
)
|
|||
in
the presence of:
|
)
|
41
[SIGNATURE PAGE
FOLLOWS]
42
IN WITNESS WHEREOF, the Seller, the Company and the Purchaser have caused this
Agreement to be executed in five (5) copies by their duly authorized
representatives as of the date first written above.
Seller: Inner Mongolia Xiangzhen Mining Group Co., Ltd. | |||
|
By:
|
/s/Xxxxxxxx Xx |
Company: Xxx Xxx Limited Liability Company | |||
|
By:
|
/s/ Xxxxxxxx Xx | |
Name: Xxxxxxxx Xx |
Purchaser: Fortune Pegasus International Limited | |||
|
By:
|
/s/ Authorized Representative | |
Name:
Title:
|