Equity Transfer Agreement on 30% Equity of Zhuolu Dadi Gas Co. Ltd.
30% Equity of Zhuolu Dadi Gas Co.
Ltd.
This
Agreement is entered by and between the Transferor, the Transferee and the Related
Party of Transferor in Beijing on the day of
________________.
Transferor:
Beijing
Fengyin Xianghe Scientific Technology Co., Ltd.
Transferee:
China New
Energy Investment Co.,Ltd
Authorized
Representative:
ID
No.:
Related
Party of Transferor:
▇▇▇▇
▇▇▇▇▇▇▇▇ (ID No.110227195610211817)
(The
Transferor, the Transferee and the Related
Party of Transferor shall hereinafter be referred to individually as the
"Party" and collectively as the "Parties".)
Target
Company:
Zhuolu
Dadi Gas Co. Ltd., (hereinafter referred to as “Zhuolu Company” or the “Target
Company”), a limited company established and existing under the laws of China,
with its registered address at Zhuolu County, Zhangjiakou, Hebei Province, with
its legal representative of ▇▇▇▇ ▇▇▇▇▇▇▇▇.
1
Whereas:
1)
The
shareholding structure of the Target Company is as follows:
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Name
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Percentage of Equity
Holding
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Transferee
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70 | % | ||
| 30 | % | |||
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Total
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100 | % | ||
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2)
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The
Related Party of Transferor is the actual controller of the
Transferor;
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3)
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The
Transferee may purchase 30% equity of the Target Company from the
Transferor upon its option granted by the Transferor of acquiring such
equity; and
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4)
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The
Transferor agrees to transfer 30% equity of the Target Company held by it
to the Transferee upon the exercise the Transferee’s option of acquiring
such equity.
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Pursuant
to the Company Law of the
People's Republic of China and Contract Law of the People's
Republic of China and other applicable laws and regulations the
Transferor, the Transferee and the Related Party of Transferor, after friendly
consultations, conclude this Agreement regarding the equity transfer as
follows:
1.
Transferred Equity
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1.1
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The
Transferee agrees to purchase the 30% equity interest of the Target
Company from the Transferor.
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1.2
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The
Transferor agrees to sell 30% equity interest of the Target Company held
by it to the Transferee after the execution of this
Agreement.
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2
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1.3
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After
the completion of registration in AIC for this equity transfer of equity
the Transferee will enjoy the shareholder's rights, and undertake
obligations and responsibilities of shareholder in accordance with
applicable China laws and the provisions of the Articles of Association of
the Target Company.
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2.
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Preconditions
of Transfer of Equity
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2.1
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The
Parties agree that the following conditions shall be satisfied prior to
the performance of respective obligations of the Transferor and the
Transferee to effect the sale and purchase of the Transferred Equity and
the Completion:
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(1)
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that
all necessary permissions, instructions, consents, licenses, approval or
authorization of any governmental
authority, bureau, agency or other body required in connection with the
legality, validity or enforceability of the sale and purchase of the
Transferred Equity have been obtained or
made;
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(2)
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that
all necessary procedures, formalities and steps and regulatory
requirements relating to the sale and purchase of the Transferred Equity
have been completed or complied with (including but not limited to,
approval for the transfer of equity of local authority of MOC have been
obtained and the corresponding alteration of AIC have been
completed);
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3.
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Consideration
and Payment Schedule
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3.1
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Both
the Transferor and the Transferee agree that the consideration of 30%
equity of the Target Company (hereinafter referred to as the
"Consideration") shall be RMB 65,000,000.00 (including tax). In any cases,
the amount of the Consideration will not be adjusted. But if any party
breaches this Agreement, the breaching party shall take the corresponding
liabilities of breach.
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3
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3.1.1
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The
Consideration shall be paid in Renminbi or equivalent US Dollars (the
exchange rate between RMB and USD shall be the rate upon the payment) in
one installment.
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3.2
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Payment
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The
Parties agree that the Consideration shall be paid according to the following
Payment Schedule:
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3.2.1
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The
precondition of payment is that all conditions set forth in Section 2.1
are satisfied.
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3.2.2
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The
Transferor shall submit original certificates or documents on satisfaction
of above conditions after obtained. After the Transferee has received all
the certificates and documents, the Transferee shall issue a written
confirmation immediately. The day on which such written confirmation is
issued is the satisfaction day of such payment precondition.
Notwithstanding aforesaid, the Transferee shall issue the written
confirmation when such certificates and documents submitted by the
Transferor are true, necessary and sufficient. Above-mentioned
payment precondition shall be satisfied or fulfilled within 30 days after
the day the Transferee sending a writing notice of exercise option to the
Transferor.
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3.3
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The
Transferee agrees that, except as otherwise provided in this Agreement,
when making the payment of the consideration to the Transferor, the
Transferee will make the payment to the bank account instructed by the
Transferor. The Transferor agrees that, such payment following the
Transferor’s payment instruction shall be considered as the payment to the
Transferor.
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4
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4.
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Completion
of the Transfer
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The
Parties agree that the satisfaction day of the payment precondition set forth in
Article 3.2 is the Completion Day of the Transfer.
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5.
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Undertakings
and Warranties
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5.1
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Both
the Transferor and the Related Party of Transferor jointly and severally
undertake and warrant that:
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5.1.1
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The
Transferor legally owns 30% of the equity of the Target Company. Should
any third Party claim any ownership or other interest in the aforesaid
equity, the Transferor shall assume full responsibility and shall be
liable to compensate the Transferee for any loss incurred
hereof.
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5.1.2
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The
Transferred Equity shall not subject to any restriction under any laws and
agreements beyond the ones stipulated expressly in this Agreement. Should
any third Party produce effective evidence that the transfer by the
Transferor is subject to any restriction under any laws and agreements,
the Transferor shall assume full responsibility and shall be liable to
compensate the Transferee for any loss incurred
hereof.
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5.1.3
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Upon
the performance of this Agreement, the Transferred Equity purchased by the
Transferee and its subsidiary rights and interests or those to be
generated from the equity are free of any rights and interests of any
third Party.
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5.1.4
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The
above-mentioned undertakings and warranties are made as of the Completion
Day of the Transfer and shall survive after the Completion Day of the
Transfer.
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5.2
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The
Transferee undertakes and warrants
that:
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5.2.1
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The
Transferee is a legal entity established and legally existing under the
laws of P.R.C..
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5
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5.2.2
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The
Transferee will negotiate with the Transferor on matters concerning equity
transfer not mentioned herein in accordance with PRC laws and regulations
and relevant policies.
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5.2.3
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The
Transferee shall be responsible for the above mentioned undertakings and
warranties. If the Transferor have fulfilled its obligations under the
Agreement, the Transferee shall also bear relevant obligations and pay
Consideration to the Transferor as stipulated in this
Agreement.
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6.
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Liability
for breach of the Agreement
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6.1
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The
Parties mutually agree that, unless otherwise provided under this
Agreement, if a Party is in material breach of this Agreement ("breaching
Party"), then the other Party (“observant Party”) has the right to
terminate this Agreement according to the Contract Law of People's
Republic of China and applicable judicatory interpretations and claims
damages arising from the breach.
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6.2
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The
Parties confirm simultaneously that, unless otherwise provided in this
Agreement, if a Party is in breach of their undertakings, warranties and
facts stated in the Section 5 under the Agreement, the observant Party has
the right to terminate this Agreement and claim damages arising from the
breach.
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6.3
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Unless
this Agreement is otherwise provided, if the Transferor have performed all
the provisions of this Agreement strictly; however the Transferee
unilaterally terminates by violating this Agreement, the Transferee shall
compensate the Transferor for their direct damages rising
hereby.
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6
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7.
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Termination of this
Agreement
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The
Parties mutually agree that unless otherwise provided in this Agreement, this
Agreement shall be terminated only under following situations:
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7.1
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This
Agreement shall be terminated upon the consent of the
Parties;
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7.2
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Transferee
is entitle to terminate this Agreement at its own discretion under any of
the following situations:
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7.2.1
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Transferee
is unable to complete the transaction due to relevant policies and rules
of the State;
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7.2.2
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Necessary
governmental approvals are unable to obtain for this transaction (if
necessary)；
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7.2.3
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Transferee
discovers that there are material defects of the Transferred Equity or
Transferor are unable to transfer the Targets of this
transaction;
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7.3
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Transferor
is entitle to terminate this Agreement at its own discretion under any of
the following situations:
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7.3.1
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On
conditions that there is no freeze,
distrain, pledge, mortgage, or other right limitations against the
Transferred Equity, Transferor is unable to complete the transaction due
to relevant policies and rules of the
State;
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7.3.2
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Necessary
governmental approvals are unable to obtain for this transaction (if
necessary).
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8.
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Assignment
of this Agreement
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Both the
Transferor and the Related Party of Transferor jointly and severally agrees
that, Transferee is entitled to transfer its entire or partial rights and/or
obligations to any third party designated by Transferee who is affiliated with
Transferee without the consent of the Transferor and the Related Party of the
Transferor for such transfer, but the Transferee will notify. Both the
Transferor and the Related Party of Transferor jointly and severally further
agrees that, such third Transferee aforesaid may be person, legal entity or
other economic organizations. Transferee has the right to designate one natural
person, legal entity or other economic organization or two or more natural
persons, legal entities or other economic organizations as such third Transferee
its own discretion.
7
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9.
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Tax
Issues
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9.1
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Unless
otherwise provided under this Agreement, Transferee and Transferor shall
bear relevant payable taxes and expenses in connection with the
performance of this Agreement and this transaction respectively. If
required by law, Transferee will withhold and remit tax when making
payment (if any).
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10.
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The
Related Party of the Transferor undertakes that all the liabilities which
shall be performed by the Transferor set forth in this Agreement shall be
applicable to the Related Party of the Transferor as well. Further more,
the Related Party of the Transferor will take joint guarantee liability
for the liabilities which shall be performed by the Transferor set forth
in this Agreement.
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11.
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Force
Majeure
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Any delay
in the performance of any of the duties or obligations of either party shall not
be considered a breach of this Agreement, and the time required for performance
shall be extended for a period equal to the period of such delay, if such delay
has been caused by or is the result of acts of God; acts of public enemy;
insurrections; riots; injunctions; embargoes; labor disputes, including strikes,
lockouts, job actions, or boycotts; fires; explosions; earthquakes; floods;
shortages of energy; governmental prohibition or restriction; or other
unforeseeable causes beyond the reasonable control and without the fault or
negligence of the party so affected. The party so affected shall
immediately notify the other party of such inability and of the period for which
such inability is expected to continue. The party giving such notice
of a force majeure event, shall be excused from the performance, or the punctual
performance, of such obligations, as the case may be, from the date of such
notice, up to a maximum of nine (9) calendar months, after which time the party
who is not able to perform, may terminate this Agreement. To the
extent possible, each party shall use reasonable efforts to minimize the
duration of any force majeure.
8
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12.
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Confidentiality
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Either
Party of this Agreement shall not disclose any information related to this
Agreement to any person, entity or company during the term of the Agreement or
five years after the expiration of the Agreement, no matter the person, entity
or company has a competitive relationship with the other Party or not, except
following circumstances:
(1)Such
disclosure is made in accordance with the governing laws or requested by the
competent government, justice authority;
(2)The
information has been publicized and such publicizing is not a result of any
breach or violation of a contract, agreement or other binding
documents;
(3)The
Party of such disclosure has already obtained such Information without any
confidentiality limitation from other parties when it receives the Information
from the other Party；
(4)Disclose
to the employees, directors, management, consult, CPA, agent and representative
of any party, or its affiliates and the employees, directors, management,
consultant, accounts, agent and representative of such
affiliates.
9
In case
any Party is in breach of the provision of the confidentiality and causes the
other Party suffering from economic damages and losses, the breaching Party
shall assume relevant liabilities of such breach to the other Party. But the
information disclosed pursuant to the applicable law or compulsory requirements
of the court or any other authorities will not be applied.
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13.
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Notices
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13.1
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Any
and all notices shall be delivered in writing, including by facsimile,
letter, courier service delivered letter, and notices shall be deemed to
have been delivered at the 7th
days after the written notice delivered. The notifying date of unwritten
notice (telephone or email, etc) shall be the date of written confirmation
of the receiver.
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13.2
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Either
Party may change its particulars for receipt of notices by notice given to
the other Party within 3 days after such change. If the Party fails to
notice the other party its changes on its particulars for receipt of
notices, it shall take all legal liability for all results rising
hereof.
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If to the
Transferor, notices shall be delivered as follows:
Addressee:
Position:
Address:
Post Code:
Facsimile:
Email:
If to the
Transferee, notices shall be delivered as follows:
Addressee:
Position:
Address:
Post Code:
Facsimile:
Email:
10
If to the
Related Party of the Transferor, notices shall be delivered as
follows:
Addressee:
Position:
Address:
Post Code:
Facsimile:
Email:
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13.3
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All
notices and relevant expenses under this Agreement shall be processed by
either Party respectively in accordance with laws and regulations at their
own cost.
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14.
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Governing
Law
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The
formation, validity, interpretation and/or performance of this Agreement shall
be governed by PRC LAWS.
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15.
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Settlement
of Dispute
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Any
disputes arising from or in connection with this Agreement shall be settled
through friendly negotiation among the Parties. If the dispute cannot be
resolved by negotiation, then any Party may submit the dispute to China
International Economic and Trade Arbitration Committee located in Beijing for
arbitration according to and regulations in effect at the time of applying for
arbitration. The arbitration award shall be final and binding on all
parties.
11
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16.
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Severability
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Any
provision of the Agreement shall be deemed as severable. If any provision of the
Agreement is invalid, it shall not affect the validity of the rest of the
provisions of this Agreement.
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17.
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Non-waiver
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Either
Party's failure to insist the other Party on the performance of any provision of
the Agreement at any time shall not be deemed to waive such provision or waive
the right to request the other Party on execution of such provision in
future.
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18.
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Transcript
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The
formal text of the Agreement shall be written in CHINESE. Any provision of such
Agreement shall be interpreted under the usual meaning of the words in the
Chinese version.
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19.
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Title
and Subtitles
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All tile
and subtitles of the Agreement are in the convenience of the reference only and
shall not limit or affect any provision provided in the Agreement.
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20.
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Entire
agreement
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20.1
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Entire
Agreement of this transaction include this Agreement, General Framework
Agreement for Corporation, Exclusive Option Agreement, as well as all
ancillary agreements to each related to the subject of this Agreement and
supersedes any and all previous written or oral agreements and/or
memorandums concluded by any consultation relating to the subject of this
agreement. Unless this agreement is otherwise provided expressly, any
other condition, definition, guarantee or statement related to the subject
of this agreement shall not be binding on the
Parties.
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12
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20.2
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Any
correction, amendment, replacing or modification of this Agreement shall
be made in writing and shall be ascertained that it is relevant to the
Agreement and shall be signed by the representatives or designated
person(s) of the Parties of the
Agreement.
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20.3
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Both
the Transferor and the Transferee mutually agree that in the convenience
of processing the procedure of the alteration registration related to the
equity transfer hereof with the local industry and commercial bureau, both
parties may enter into a simpler equity transfer agreement. The content of
such simple equity transfer agreement shall not be controversial with this
Agreement hereof. In case of any controversy, this Agreement shall
prevail.
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21.
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This
Agreement is formed upon the execution of the Parties and shall become
into effective subject to all following conditions are
satisfied:
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21.1
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The
Transferee send a writing notice of exercise option of acquiring the
remaining equity of the Target Company to the Transferor within 30 days
after the second installment for the transaction of 70% equity transfer of
the Target Company;
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21.2
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This
Agreement has been approved by the
government.
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22.
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This
Agreement is executed in [4] counterparts. Each Transferor holds [1], the
Transferee holds [1] and the Related Party of the Transferor holds
[1].
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(This
page is blank below)
13
Signature
Page
Transferor:
Beijing
Fengyin Xianghe Scientific Technology Co., Ltd.
Authorized
Representative:
Transferee:
China New
Energy Investment Co.,Ltd
Authorized
Representative:
Related
Party of Transferor:
▇▇▇▇
▇▇▇▇▇▇▇▇ (Singature):
Date:
14