Document:

EX-4.A.1

 EXHIBIT NUMBER 4(a)1 

SHARE PURCHASE AND LOAN ASSIGNMENT AGREEMENT 

BETWEEN 
 CHINA
ENTERPRISE LIMITED 
 AND 

CZ TIRE HOLDINGS LIMITED 

21 NOV, 2011 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	 SECTION 1.
	 	 DEFINITIONS AND INTERPRETATION
	  	 	1	  
			
	 1.1
	 	 Definitions
	  	 	1	  
			
	 1.2
	 	 Interpretation
	  	 	4	  
			
	 SECTION 2.
	 	 SALE AND PURCHASE; ASSIGNMENT
	  	 	4	  
			
	 2.1
	 	 Sale and Purchase; Assignment
	  	 	4	  
			
	 2.2
	 	 Consideration
	  	 	5	  
			
	 2.3
	 	 Closing
	  	 	5	  
			
	 2.4
	 	 Closing Deliveries
	  	 	5	  
			
	 2.5
	 	 Non-compliance in Closing
	  	 	6	  
			
	 SECTION 3.
	 	 REPRESENTATIONS AND WARRANTIES OF SELLER
	  	 	6	  
			
	 SECTION 4.
	 	 REPRESENTATIONS AND WARRANTIES OF BUYER
	  	 	6	  
			
	 4.1
	 	 Status
	  	 	6	  
			
	 4.2
	 	 Power and Authority
	  	 	6	  
			
	 4.3
	 	 Authorizations
	  	 	6	  
			
	 4.4
	 	 Legal Validity
	  	 	7	  
			
	 SECTION 5.
	 	 COVENANTS OF SELLER; CONDUCT OF BUSINESS
	  	 	7	  
			
	 5.1
	 	 Conduct of Business
	  	 	7	  
			
	 5.2
	 	 Notices of Certain Events
	  	 	7	  
			
	 SECTION 6.
	 	 TERMINATION
	  	 	7	  
			
	 6.1
	 	 Termination Events
	  	 	7	  
			
	 6.2
	 	 Consequences
	  	 	8	  
			
	 SECTION 7.
	 	 INDEMNITY; OTHER REMEDIES AND CONFIDENTIALITY
	  	 	8	  
			
	 7.1
	 	 Seller Indemnity
	  	 	8	  
			
	 7.2
	 	 Buyer Indemnity
	  	 	8	  
			
	 7.3
	 	 Conduct of Defense
	  	 	8	  
			
	 7.4
	 	 Not Exclusive Remedy
	  	 	9	  
			
	 7.5
	 	 Survival
	  	 	9	  
			
	 7.6
	 	 Limitation on Liabilities of Seller
	  	 	9	  
			
	 7.7
	 	 Confidentiality
	  	 	10	  
			
	 SECTION 8.
	 	 MISCELLANEOUS
	  	 	10	  
			
	 8.1
	 	 Binding Effect; Assignment
	  	 	10	  
			
	 8.2
	 	 Further Assurance
	  	 	10	  
			
	 8.3
	 	 Fees and Expenses
	  	 	10	  
			
	 8.4
	 	 Taxes; Stamp Duties
	  	 	11	  

  
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 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
			
	 8.5
	 	 Governing Law
	  	 	11	  
			
	 8.6
	 	 Dispute Resolution
	  	 	11	  
			
	 8.7
	 	 Language
	  	 	12	  
			
	 8.8
	 	 Amendments
	  	 	12	  
			
	 8.9
	 	 Notices
	  	 	12	  
			
	 8.10
	 	 Entire Agreement
	  	 	13	  
			
	 8.11
	 	 Severability
	  	 	13	  
			
	 8.12
	 	 Remedies Cumulative
	  	 	13	  
			
	 8.13
	 	 Counterpart Execution
	  	 	13	  
			
	 8.14
	 	 No Agency or Partnership
	  	 	13	  
			
	 8.15
	 	 Set-off
	  	 	13	  
			
	 8.16
	 	 Process Agent
	  	 	14	  

  

			
	EXHIBIT A	  	FORM OF DEED OF ASSIGNMENT
		
	EXHIBIT B	  	FORM OF TAX SERVICE AGREEMENT
		
	EXHIBIT C	  	FORM OF TRANSFER DOCUMENTS
		
	EXHIBIT D	  	FORM OF LEGAL OPINION FROM SELLER’S BERMUDA COUNSEL
		
	EXHIBIT E	  	FORM OF LEGAL OPINION FROM SELLER’S HONG KONG COUNSEL
		
	EXHIBIT F	  	FORM OF CLOSING CERTIFICATE
		
	EXHIBIT G	  	FORM OF CORPORATE GUARANTEE
		
	EXHIBIT H	  	FORM OF PERSONAL GUARANTEE
		
	SCHEDULE 1	  	PARTICULARS OF COMPANY AND ZHONGCE
		
	SCHEDULE 2.4	  	CLOSING DELIVERIES
		
	SCHEDULE 3	  	REPRESENTATIONS AND WARRANTIES OF SELLER
		
	SCHEDULE 5.1	  	PRE-CLOSING COVENANTS

  
 ii 

 THIS SHARE PURCHASE AND LOAN ASSIGNMENT AGREEMENT (this “Agreement”) is entered into on
21 NOV, 2011 between: 
  

	(1)	CHINA ENTERPRISES LIMITED, a company incorporated under the laws of Bermuda (“Seller”); and 

  

	(2)	CZ TIRE HOLDINGS LIMITED, a company incorporated under the laws of the British Virgin Islands (“Buyer”). 

Seller and Buyer are hereinafter referred to as the “Parties” collectively and as a “Party” individually. 

RECITALS 
 WHEREAS: 

 

	A.	China Tire Enterprises Limited is a company incorporated under the laws of Hong Kong (the “Company”). The entire issued share capital of the Company consists of one ordinary share with a par value of
HK$1.00, which is held legally and beneficially by Seller (the “Sale Share”). 

  

	B.	Seller and the Company have entered into an Equity Interest Transfer Agreement (the “Zhongce Transfer Agreement”), pursuant to which Seller transferred its entire interest in the registered capital (the
“Zhongce Registered Capital”) of Hangzhou Zhongce Rubber Company Limited 

, a Sino-foreign joint venture limited liability company incorporated under the laws of China (“Zhongce”), representing a 26% interest in the Zhongce Registered Capital, at a price equal to
RMB600,000,000 (the “Zhongce Transfer Price”). 

  

	C.	As a result of the completion of the transfer under the Zhongce Transfer Agreement, the Company currently is the direct legal and beneficial owner of a 26% interest in the Zhongce Registered Capital (the
“Zhongce Equity Interest”). 

  

	D.	The Company has not paid the Zhongce Transfer Price to Seller and therefore owes a debt to Seller in a principal amount of RMB600,000,000 (the “Shareholder Loan”). 

 

	E.	Seller desires to sell and assign to Buyer, and Buyer desires to purchase and accept from Seller, the Sale Share and the Shareholder Loan on the terms and conditions set out in this Agreement. 

NOW, THEREFORE, in consideration of the mutual promises contained herein, the receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound, the Parties agree as follows: 
 SECTION 1. DEFINITIONS AND INTERPRETATION 

1.1 Definitions. Unless otherwise defined in this Agreement, capitalized terms used herein shall have the following meanings: 

“Affiliate” means, with respect to any specified Person, any other Person controlling or controlled by or under common
control with such specified Person. For purposes of this definition, “control” when used with respect to any specified Person means the direct or indirect ownership of 50% or more of such Person’s voting equity interest or the direct
or indirect control of 50% or more of the composition of its board of directors, and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 

  
 1 

 “Board” means the board of directors of the Company. 

“Business Day” means any day except a Saturday, Sunday or other day on which banking institutions in Hong Kong, New York or
the PRC are authorized by law to close. 
 “Buyer Indemnified Party” is defined in Section 7.1. 

“Buyer Indemnifier” is defined in Section 7.2. 

“Closing Date” is defined in Section 2.3(a). 

“Closing” is defined in Section 2.3(a). 

“Confidential Information” is defined in Section 7.7. 

“Consideration” is defined in Section 2.2. 

“Corporate Guarantee” means the deed of guarantee to be issued by Hanny Holdings Limited, a company organized under the laws
of Bermuda, in respect of all the obligations of Seller under this Agreement and the Tax Service Agreement 
 “Deed of
Assignment” means the deed of assignment in respect of the Shareholder Loan in the form of Exhibit A attached hereto. 

“Encumbrance” means any mortgage, pledge, lien, charge, hypothecation, interest under any pre-sale contract, interest held by
any relocated resident, right of set-off or counterclaim, security or other encumbrance, transfer restriction, security agreement or arrangement of any kind, purchase or option agreement or arrangement, subordination agreement or arrangement, and
agreements to create or effect any of the foregoing. 
 “Government Entity” means any government or any agency, bureau,
board, commission, court, department, official, political subdivision, tribunal, government-owned or controlled company or business or other instrumentality of any government (including the government of the PRC and any other relevant jurisdiction).

 “Governmental Approvals” means any approvals, licenses, permits, certificates or authorizations issued by or filings or
registrations made with any Government Entities. 
 “HKIAC” is defined in Section 8.6(c). 

“Hong Kong Dollars” or “HK$” means Hong Kong Dollar, the lawful currency of Hong Kong. 

“Hong Kong” means the Hong Kong Special Administrative Region of the PRC. 

  
 2 

 “Liabilities” means, with respect to any Person, liabilities owing by such
Person of any nature, whether accrued, absolute, contingent or otherwise, and whether due or to become due. 
 “Material Adverse
Effect” means any event or occurrence which has, or is reasonably likely to have, a material adverse effect on (i) the business, operations, property, condition (financial or otherwise) or prospects of the Company; (ii) the
ability of Seller to perform any of the Transaction Documents to which it is a party; or (iii) the legality, validity, enforceability or performance of any of the Transaction Documents. 

“Organizational Documents” means, with respect to any Person, (i) its certificate of incorporation, certificate of
registration, certificate of approval, registry of members or other similar organizational document; (ii) its memorandum and articles of association, by-laws, limited partnership agreement or other similar document; (iii) if applicable,
its joint venture contract, any shareholder rights agreement or other similar agreement; and (iv) various registration certificates issued by the relevant Government Entities. 

“Person” means an individual, firm, corporation (including a business trust), joint stock company, trust, limited liability
company, partnership, unincorporated association, joint venture or other entity. 
 “Personal Guarantee” means the deed of
guarantee to be issued by Mr. Allan Yap, holder of Canadian passport numbered BA679167, in respect of all the obligations of Seller under this Agreement and the Tax Service Agreement. 

“PRC” or “China” means the People’s Republic of China (excluding, for purposes of this Agreement, Hong
Kong, Macau and Taiwan). 
 “RMB” means Renminbi Yuan, the lawful currency of the PRC. 

“RMB Exchange Rate” means the middle exchange rate of RMB against US Dollar published by the PRC State Administration of
Foreign Exchange (or if not published by the PRC State Administration of Foreign Exchange, the People’s Bank of China) on the date of determination in accordance with this Agreement. 

“Seller Indemnified Party” is defined in Section 7.2. 

“Seller Indemnifier” is defined in Section 7.1. 

“Seller Liabilities” is defined in Section 7.6. 

“Tax Agent” means PricewaterhouseCoopers Consultants (Shenzhen) Limited - Beijing Branch. 

“Tax Service Agreement” means a Tax Service Agreement to be entered into among Seller, Buyer and the Tax Agent in the form
set forth in Exhibit B. 
 “Taxes” means any national, provincial or local income, sales and use, excise, franchise,
real and personal property, gross receipt, capital stock, production, business and occupation, disability, employment, payroll, severance or withholding tax or any other type of tax, levy, assessment, custom duty or charge imposed by any Government
Entity, any interest and penalties (civil or criminal) related thereto or to the nonpayment thereof, and any loss or tax liability incurred in connection with the determination, settlement or litigation of any liability arising therefrom. 

  
 3 

 “Transactions” is defined in Section 2.1. 

“Transaction Documents” means this Agreement, the Tax Service Agreement, the Corporate Guarantee, the Personal Guarantee and
any other document agreed to be designated as such by the Parties. 
 “Transfer Documents” means the bought and sold notes
and instrument of transfer in respect of the Sale Share (in the form set forth in Exhibit C) in favor of Buyer. 
 “U.S.
Dollars” or “US$” means United States Dollar, the lawful currency of the United States of America. 
 1.2
Interpretation. In this Agreement, unless otherwise indicated: 
 (a) the headings and sub-headings are inserted for convenience only
and shall not affect the construction of this Agreement; 
 (b) each reference to, and the definition of, any document shall be deemed to
refer to such document as it may be amended from time to time in accordance with its terms; 
 (c) all time and dates in this Agreement
shall be Hong Kong time and dates except where otherwise stated; 
 (d) each reference to a law or Governmental Approval shall be deemed to
refer to such law or Governmental Approval as the same may be amended from time to time; 
 (e) any reference to a Person (including a
Party) in any capacity includes a reference to its permitted successors and permitted assigns in such capacity and, in the case of any Government Entity, any Person succeeding to any of its functions and capacities; 

(f) defined terms in the singular shall include the plural and vice versa, and the masculine, feminine or neuter gender shall include all
genders; 
 (g) the words “include,” “includes” and “including” are deemed to be followed by the phrase
“without limitation”; 
 (h) references herein to Sections (or SECTIONS), Exhibits and Schedules are sections of and exhibits and
schedules to this Agreement; and 
 (i) wherever a period of time is referred to, the day upon which that period commences shall be the day
after the day from which such period is expressed to run, or the day after the day upon which the event occurs which causes the period to start running. 

SECTION 2. SALE AND PURCHASE; ASSIGNMENT 

2.1 Sale and Purchase; Assignment. Subject to the terms and conditions of this Agreement, Buyer agrees to purchase and accept from
Seller, and Seller agrees to sell and assign to Buyer, the Sale Share and the Shareholder Loan, free and clear of any Encumbrances. The sale and purchase of the Sale Share and the assignment of the Shareholder Loan are herein referred to as the
“Transactions”. 

  
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 2.2 Consideration. The “Consideration” for the Transactions shall be the
sum of the purchase price of the Sale Share and the purchase price of the Shareholder Loan computed as follows: 
 (a) the purchase price of
the Sale Share shall be HK$1.00; and 
 (b) the purchase price of the Shareholder Loan shall be the U.S. Dollars equivalent of
RMB600,000,000, as determined based on the RMB Exchange Rate published on the Business Day immediately prior to the Closing Date. 
 2.3
Closing. 
 (a) The closing of the Transactions (the “Closing”) shall take place on a date (the “Closing
Date”) within 15 Business Days after the date hereof or such other date and time as may be mutually agreed by the Parties in writing. Upon Closing, Buyer shall assume and hold all rights and interests in, and Seller shall cease to hold any
interest in and shall have relinquished all rights and claims with respect to, the Sale Share and the Shareholder Loan. 
 (b) On the
Closing Date, Buyer shall pay or cause to be paid (i) the U.S. Dollars equivalent of RMB40,000,000 by wire transfer to a bank account of the Tax Agent pursuant to the Tax Service Agreement (it being acknowledged that such transfer, while made
to the Tax Agent, will be deemed to have been made to Seller for payment of the Consideration by Buyer) and (ii) the U.S. Dollars equivalent of RMB560,000,000 by wire transfer to the following bank account of Seller, as determined based on the
RMB Exchange Rate published on the Business Day immediately prior to the Closing Date: 
  

			
	Account No.:	  	019-595-9-208643-5
		
	Account Bank:	  	Bank of China (Hong Kong) Limited
		
	SWIFT Code:	  	BKCHHKHH
		
	Bank Address:	  	Connaught Road Central Branch, 13-14 Connaught Road Central Hong Kong

 (c) On the Closing Date, Seller shall deliver to Buyer a cashier’s check drawn in favor of the Government
of the Hong Kong Special Administrative Region in an amount equal to 50% of the total amount of the stamp duty (excluding any penalty for late stamping if such late stamping is due to reasons attributable to Seller) payable on the transfer of the
Sale Share under the Stamp Duty Ordinance in respect of the instrument of transfer and the bought and sold notes. 
 2.4 Closing
Deliveries. At Closing, Seller shall deliver or cause to be delivered to Buyer the documents listed in Part A of Schedule 2.4, all in form and substance reasonably satisfactory to Buyer, and Buyer shall deliver or cause to be delivered to
Seller the documents listed in Part B of Schedule 2.4, all in form and substance reasonably satisfactory to Seller. Neither Party shall be obligated to complete the Transactions or perform any obligations under this Section 2.4 unless
the other Party complies fully with its obligations under Part A or Part B, as the case may be, of Schedule 2.4 hereof. 

  
 5 

 2.5 Non-compliance in Closing. If Seller or Buyer, as the case may be, is unable to
deliver or cause to be delivered to the other Party the documents listed under Part A or Part B of Schedule 2.4 on the Closing Date or if Seller or Buyer, as the case may be, has right to terminate this Agreement pursuant to Section 6.1,
so long as it is not in default hereunder itself, Seller or Buyer, as the case may be, may: 
 (a) defer Closing to a date not later than
the 30th Business Day after the date hereof; 
 (b) proceed with Closing so far as
practicable; or 
 (c) terminate this Agreement, 

without prejudice, in each case, to its rights (whether under this Agreement generally or under this Section) to the extent that the other Party has not
complied with its obligations hereunder. 
 SECTION 3. REPRESENTATIONS AND WARRANTIES OF SELLER 

In consideration of the obligation of Buyer to pay for the Sale Share and the Shareholder Loan and in addition to such other representations
and warranties by it as may be contained elsewhere in this Agreement, any other Transaction Document or any other document to be executed in connection herewith or therewith, Seller hereby represents and warrants to Buyer that the representations
and warranties set out in Schedule 3 are true and correct on the date hereof and on the Closing Date. 
 SECTION 4. REPRESENTATIONS
AND WARRANTIES OF BUYER 
 Buyer hereby represents and warrants to Seller, in addition to such other representations and warranties by
it as may be contained elsewhere in this Agreement, any other Transaction Document or any other document to be executed in connection herewith or therewith, that each of the following representations and warranties are true and correct on the date
hereof and on the Closing Date: 
 4.1 Status. It is an entity duly incorporated and validly existing and in good standing under the
laws of its jurisdiction of incorporation and has all requisite corporate or similar power to own, lease and operate its properties and assets and carry on its business as it is being conducted. 

4.2 Power and Authority. It has all requisite corporate or other similar power and authority to enter into and perform, and has taken
all necessary action to authorize the entry into, performance and delivery of, the Transaction Documents to which it is a party and the transactions contemplated thereunder. 

4.3 Authorizations. All authorizations and consents required in connection with its entry into or performance, and the validity and
enforceability of, its obligations under the Transaction Documents to which it is a party and the transactions contemplated thereunder have been obtained or effected (as appropriate) and are in full force and effect. 

  
 6 

 4.4 Legal Validity. Each Transaction Document to which it is a party constitutes its
legal, valid and binding obligation enforceable in accordance with its terms, subject to any limitations resulting from laws of administrations, liquidation, insolvency, reorganization or similar laws of general application affecting creditor’s
rights and general principles of equity. 
 SECTION 5. COVENANTS OF SELLER; CONDUCT OF BUSINESS 

Seller hereby makes the following covenants and undertakings for the benefit of Buyer: 

5.1 Conduct of Business. From the date hereof until the Closing Date, Seller shall comply with the covenants set forth in Schedule
5.1. 
 5.2 Notices of Certain Events. From the date hereof to the Closing Date, Seller shall as soon as practicable notify, or
cause to be notified to, Buyer of: 
 (a) any changes, events or circumstances which at any time, individually or in the aggregate, have had
or could reasonably be expected to result in any representation or warranty of Seller under this Agreement or any other Transaction Document being inaccurate in any material respect with reference to the facts and circumstances in existence at such
time; 
 (b) any notice or other communication from any Person alleging that its consent or approval is or may be required in connection
with the Transactions; 
 (c) any notice or other communication from any Government Entity in connection with the Transactions; and 

(d) any actions, suits, claims, investigations or proceedings commenced or threatened against, relating to or involving or otherwise affecting
Seller. 
 SECTION 6. TERMINATION 

6.1 Termination Events. This Agreement may be terminated and the Transactions may be abandoned at any time prior to Closing: 

(a) by mutual written consent of the Parties; 

(b) by Buyer upon written notice to Seller if there has been a material breach by Seller of any of its representations and warranties or any
of its agreements or obligations set forth herein or any other Transaction Document and such breach has not been cured within five Business Days after the notice thereof from Buyer to Seller; or 

(c) by Seller upon written notice to Buyer if there has been a material breach by Buyer of any of its representations and warranties or any of
its agreements or obligations set forth herein or any other Transaction Document and such breach has not been cured within five Business Days after the notice thereof from Seller to Buyer, 

without prejudice, in the case of paragraph (b) or (c) above, to the rights of Seller or Buyer, as the case may be, to defer Closing in accordance with
Section 2.5(a) of this Agreement. 

  
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 6.2 Consequences. If this Agreement is terminated pursuant to Section 6.1 or
Section 2.5(c), this Agreement shall have no further force and effect and no further liability on the part of either Party, except for any liability or damages resulting from, arising under or in connection with a Party’s breach of or
default under this Agreement prior to the date of such termination, provided that this Section 6.2, Section 7 and Sections 8.5, 8.6, 8.9, 8.11 and 8.12 shall remain in full force and effect and survive the termination of this Agreement.

 SECTION 7. INDEMNITY; OTHER REMEDIES AND CONFIDENTIALITY 

7.1 Seller Indemnity. Seller (in such capacity, the “Seller Indemnifier”) undertakes with Buyer that it shall hold
Buyer, its Affiliates and their respective directors, officers, employees, agents and representatives (each an “Buyer Indemnified Party”) fully and effectually indemnified from and against any and all losses, liabilities, costs,
claims, charges, actions, proceedings, damages, expenses, demands or penalties which they (or any of them) may incur or which may be made against them (or any of them) as a result of or arising out of, or in relation to, any misrepresentation or
alleged misrepresentation or any breach or alleged breach of any of the representations, warranties or undertakings of or by it contained in this Agreement. Such indemnity shall extend to include all charges and expenses which any of the Buyer
Indemnified Parties may pay or incur in investigating, disputing or defending any claim or action or other proceedings in respect of which the relevant Seller Indemnifier is or may be liable to indemnify under this Section 7.1 and all charges
and expenses that are the subject of this indemnity shall be reimbursed by the relevant Seller Indemnifier on demand from the relevant Buyer Indemnified Parties. 

7.2 Buyer Indemnity. Buyer (in such capacity, the “Buyer Indemnifier”) undertakes with Seller that it shall hold
Seller, its Affiliates and their respective directors, officers, employees, agents and representatives (each an “Seller Indemnified Party”) fully and effectually indemnified from and against any and all losses, liabilities, costs,
claims, charges, actions, proceedings, damages, expenses, demands or penalties which they (or any of them) may incur or which may be made against them (or any of them) as a result of or arising out of, or in relation to, any misrepresentation or
alleged misrepresentation or any breach or alleged breach of any of the representations, warranties or undertakings of or by it contained in this Agreement. Such indemnity shall extend to include all charges and expenses which any of the Seller
Indemnified Parties may pay or incur in investigating, disputing or defending any claim or action or other proceedings in respect of which the relevant Buyer Indemnifier is or may be liable to indemnify under this Section 7.2 and all charges
and expenses that are the subject of this indemnity shall be reimbursed by the relevant Buyer Indemnifier on demand from the relevant Seller Indemnified Parties. 

7.3 Conduct of Defense. If any action, proceeding, claim or demand shall be brought or asserted against a Buyer Indemnified Party or
Seller Indemnified Party (as the case may be) or any of them in respect of which the relevant Seller Indemnifier or Buyer Indemnifier (as the case may be) is or may be liable to indemnify as herein provided, any such Buyer Indemnified Party or
Seller Indemnified Party (as the case may be) shall promptly notify such Seller Indemnifier or Buyer Indemnifier (as the case may be) in writing, and shall employ such legal advisers as such Buyer Indemnified Party or Seller Indemnified Party (as
the case may be) may select, except that failure to provide such notice shall not relieve the relevant Indemnifier of its obligations hereunder unless such Seller Indemnifier or Buyer Indemnifier (as the case may be) is materially prejudiced
thereby. 

  
 8 

 7.4 Not Exclusive Remedy. This Section 7 shall not be deemed to preclude or otherwise
limit in any way the exercise of any other rights or pursuit of any other remedies for the breach of or misrepresentation under this Agreement or any other Transaction Documents. 

7.5 Survival. The representations and warranties contained in or made pursuant to this Agreement, and the indemnification obligations
contained in this Section 7 with respect thereto, shall survive for a period of two (2) years after the Closing Date. 
 7.6
Limitation on Liabilities of Seller. Notwithstanding any other provisions contained in this Agreement, the Liabilities of Seller in respect of any breach of the representations and warranties, covenants, agreements, undertakings or
obligations of Seller contained in this Agreement or any other Transaction Document to which Seller is a party (the “Seller Liabilities”) shall be limited as provided in this Section 7.6 (for the avoidance of doubt, the
Liabilities of Seller other than the Seller Liabilities (including Liabilities resulting from fraud) shall not be limited by this Section 7.6): 

(a) Seller shall have no Seller Liabilities unless Buyer shall have given written notice to Seller prior to the date falling twenty-four
(24) months after the Closing Date in respect of any such liabilities giving reasonable details thereof, and any such liabilities shall (if not previously satisfied, settled or withdrawn) be deemed to have been waived at the expiration of six
(6) months after such twenty-four (24) month period unless proceedings in respect thereof shall then have been commenced against Seller; 

(b) Seller shall have no Seller Liabilities: 

(i) if such liabilities would not have arisen but for actions voluntarily done or omitted to be done (other than pursuant to a
legally binding requirement or commitment) by Buyer or the Company after Closing; or 
 (ii) to the extent that such
liabilities arise or are increased solely as a result of an increase in rates of tax made or due to change of tax laws, rules or legislations, in each case after Closing with retrospective effect; 

(c) no Seller Liabilities shall attach to Seller unless the cumulative and aggregate amount thereof (including the reasonable costs and
expenses incurred in ascertaining the existence or the amount thereof) exceeds RMB500,000 or its equivalent, in which case Seller shall be liable for the full amount thereof subject as otherwise provided in this Section 7.6; 

(d) the maximum aggregate amount of the Seller Liabilities shall not exceed RMB600,000,000 or its equivalent; and 

(e) Buyer shall promptly reimburse to Seller an amount equal to any sum paid by Seller in respect of any Seller Liability which is
subsequently recovered or paid to Buyer, the Company or Zhongce, as the case may be, by any third party. 

  
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 7.7 Confidentiality. 

(a) Each Party shall keep confidential, and shall cause its directors, officers, employees and representatives to keep confidential,
non-public information of the other Party and of the terms and conditions hereof and of any Transaction Document (the “Confidential Information”); provided that a Party may disclose the Confidential Information (i) to
the extent required by applicable law so long as, where such disclosure is to a Government Entity, such Party shall use all reasonable efforts to obtain confidential treatment of the Confidential Information so disclosed, (ii) to the extent
required by the rules of any stock exchange, except that the disclosing Party shall consult with the other Party with respect to the contents and form of such disclosure prior to any such disclosure, (iii) to its Affiliates and its
Affiliates’ officers, directors, employees and professional advisors on an as-needed basis so long as such Party advises each Person to whom the Confidential Information is so disclosed as to the confidential nature thereof, (iv) to its
representatives, agents or any Person otherwise providing substantial debt or equity financing to such Party on an as-needed basis so long as such Party advises each Person to whom the Confidential Information is so disclosed as to the confidential
nature thereof and obtains an undertaking from such Person to keep the disclosed information confidential on the same terms of this Section 7.7, and (v) in the case of Buyer, to any Person, its shareholders and partners, that enter into
bona fide negotiations to acquire Buyer or Buyer’s interest in the Company so long as such Persons have agreed to maintain the confidentiality of the Confidential Information. 

(b) For the avoidance of doubt, the Confidential Information does not include information that (i) was already in the possession of the
receiving Party before such disclosure by the disclosing Party; (ii) is or becomes available to the public other than as a result of disclosure by the receiving Party or its directors, officers, employees and representatives in violation of
this Section 7.7; or (iii) is or becomes available to the receiving Party from a third party not known by the receiving Party to be in breach of any legal or contractual obligation not to disclose such information to it. 

(c) Notwithstanding anything express or implied to the contrary, each Party (and each employee, representative or other agent of such Party)
may disclose to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to such Party
relating to such tax treatment and tax structure. 
 (d) The confidentiality obligations contained in this Section 7.7 shall survive
two years after termination hereof. 
 SECTION 8. MISCELLANEOUS 

8.1 Binding Effect; Assignment. This Agreement shall be binding upon and shall be enforceable by each Party, its successors and
permitted assigns. No Party may assign any of its rights or transfer any of its obligations hereunder without the prior written consent of the other Party. 

8.2 Further Assurance. Each Party shall do and perform, or cause to be done and performed, all such further acts and things and shall
execute and deliver all such other agreements, certificates, instruments and documents as the other Party may reasonably request to give effect to the terms and intent of this Agreement. 

8.3 Fees and Expenses. Each of the Parties shall pay its own costs relating to the negotiation, preparation, execution and performance
by it of the Transaction Documents and of any documents incidental thereto. 

  
 10 

 8.4 Taxes; Stamp Duties. 

(a) All income-based Taxes required to be paid under applicable PRC tax laws in connection with the transfer of the Zhongce Equity Interest
pursuant to the Zhongce Transfer Agreement shall be paid by Seller (up to an amount equal to RMB40,000,000 or its equivalent) and by Buyer (for amount in excess of RMB40,000,000 or its equivalent) in the manner set forth under the Tax Service
Agreement. Each of Buyer and Seller hereby agrees to procure that the Tax Agent shall execute and deliver to the Parties the Tax Service Agreement on or immediately after the Closing Date. 

(b) Except for the income-based Taxes provided in paragraph (a) above, all transfer fees, registration fees or similar duties or any
other Taxes required to be paid in connection with the Transactions hereunder shall be paid by Buyer and Seller in accordance with the applicable laws. 

(c) Any stamp duty payable on the sale and purchase of the Sale Share and the assignment of the Shareholder Loan (if required) shall be borne
by Seller and Buyer in equal shares. 
 8.5 Governing Law. This Agreement shall be governed by, and construed in accordance with, the
laws of Hong Kong. 
 8.6 Dispute Resolution. 

(a) The Parties will attempt in good faith to resolve any and all disputes arising out of or relating to this Agreement through friendly
consultations. 
 (b) If a dispute is not resolved through friendly consultations within 30 days from the date a Party gives the other Party
written notice of the dispute, then a Party may submit the dispute to arbitration exclusively. 
 (c) The arbitration shall be conducted in
Hong Kong under the UNCITRAL Arbitration Rules in force at the time of the initiation of the arbitration. The arbitration shall be administered by the Hong Kong International Arbitration Centre (the “HKIAC”) in accordance with the
HKIAC Procedures for the Administration of International Arbitration in force at the time of the initiation of the arbitration. There shall be three arbitrators. Each Party shall nominate one arbitrator within 20 days after the delivery of the
arbitration notice to the other Party. Both arbitrators shall agree on the third arbitrator within 20 days of their appointment. Should either Party fail to appoint an arbitrator or should the two arbitrators fail to reach agreement on the third
arbitrator within the time limits set forth herein, such arbitrator shall be appointed by the Secretary General of the HKIAC. The arbitration shall be conducted in the English language. 

(d) The arbitrators shall decide any dispute submitted by the Parties strictly in accordance with the substantive law of Hong Kong and shall
not apply any other substantive law. 
 (e) Each Party shall cooperate with the others in making full disclosure of and providing complete
access to all information and documents reasonably requested by the others in connection with such arbitration proceedings, subject only to any doctrine of legal privilege or any confidentiality obligations binding on such Party. 

  
 11 

 (f) The costs of arbitration shall be borne by the losing Party, unless otherwise determined by
the arbitration tribunal. 
 (g) When any dispute occurs and when any dispute is under arbitration, except for the matters in dispute, the
Parties shall continue to fulfill their respective obligations and shall be entitled to exercise their rights under this Agreement. 
 (h)
The award of the arbitration tribunal shall be final and binding upon the Parties, and the prevailing Party may apply to a court of competent jurisdiction for enforcement of such award. 

(i) Either Party shall be entitled to seek preliminary injunctive relief from any court of competent jurisdiction pending the constitution of
the arbitration tribunal. 
 8.7 Language. This Agreement has been executed in English. 

8.8 Amendments. This Agreement may be amended only by the Parties in writing. 

8.9 Notices. All notices, demands, requests or other communications which may be or are required to be given, served or sent to a Party
pursuant to this Agreement shall be in writing and shall be personally delivered or mailed by registered or certified mail, return receipt requested, postage prepaid, or transmitted by facsimile, email or courier, addressed as follows: 

 

					
	(a)	  	if to Buyer:	  	
			
		  	Address:	  	 c/o CITIC PE Advisors (Hong Kong) Limited
 Suite
606, 6/F, One Pacific Place
 88 Queensway
 Hong
Kong

		  	Fax:	  	852-3798 0096
			
		  	Attention:	  	Ms. Cindy Chan
			
	(b)	  	if to Seller	  	
			
		  	Address:	  	 25/F, Paul Y. Centre
 51 Hung To Road

Kwun Tong
 Kowloon, Hong Kong

		  	Fax:	  	852-2810 6982
			
		  	Attention:	  	Board of Directors

 In the absence of evidence of earlier receipt, notice shall be deemed to be received: 

(a) in the case of the notice left at the address of the addressee, upon delivery at the address; 

  
 12 

 (b) in the case of a posted letter, on the day such letter is recorded as having been delivered
to the relevant delivery address of the recipient; 
 (c) in the case of notice sent by facsimile at the time of completion of transmission
by the sender which must be evidenced by a “transmission ok” report generated by the sender’s facsimile machine; and, 
 (d)
in the case of notice by email at the time of completion of transmission by the sender which must be evidenced by written confirmation indicating that the email has been successfully delivered to the recipient’s email together with the
confirmation by facsimile of the same as stated above within 12 hours of the transmission of an email. 
 A notice received or deemed to be
received in accordance with the provisions above on a day which is not a Business Day, or after 6pm on a Business Day, according to local time in the place of receipt, shall be deemed to be received on the next following Business Day. 

Each Party may designate by notice in writing a new address or fax number to which any notice, demand or communication may thereafter be so
given, served or sent. All notice or communications under or in connection with this Agreement shall be in the English language or, if in any other language, accompanied by a translation into English. In the event of any conflict between the English
text and the text in any other language, the English text shall prevail. 
 8.10 Entire Agreement. This Agreement and the Transaction
Documents constitute the entire agreement between the Parties with respect to the subject matter hereof and thereof and supersede all prior written or oral understandings or agreements. 

8.11 Severability. If any provision of this Agreement shall be held invalid or unenforceable to any extent, the remainder of this
Agreement shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 
 8.12 Remedies Cumulative.
The rights and remedies available under this Agreement or otherwise available shall be cumulative of all other rights and remedies and may be exercised successively. 

8.13 Counterpart Execution. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but
all of which together shall constitute one and the same instrument. 
 8.14 No Agency or Partnership. Nothing contained herein will
create or result in any partnership or agency relationship between the Parties. 
 8.15 Set-off. Whenever under this Agreement or any
other related agreement or contract binding on the Parties any sum of money shall be recoverable from or payable by one Party hereto to the other Party, the same amount may be deducted from any sum then due or which at any time thereafter may become
due to the paying Party from the receiving Party under this Agreement or any other related agreement or contract between the paying Party and the receiving Party. 

  
 13 

 8.16 Process Agent. Each of Seller and Buyer hereby irrevocably appoints the person set
opposite its name below (each, a “Process Agent”) as its agent to receive and acknowledge on its behalf service of any writ, summons, order, judgment or other notice of legal process (collectively, the “Legal
Documents”) in Hong Kong. Such service of the Legal Documents on the appointing party shall be deemed completed on delivery to its Process Agent or, if sent by registered post to the address set out below or last known address of its
Process Agent, on the second Business Day after posting or, if there is a letter box for the aforesaid or last known address of its Process Agent, upon inserting the Legal Documents through the letter box (whether or not it is forwarded to and
received by the appointing party). In the event that its Process Agent cannot continue to act as such, the appointing party shall forthwith appoint another agent in Hong Kong for the same purposes and notify such appointment to the other party in
writing: 
  

					
	 	  	 Name of Process Agent
	  	 Address

			
	Seller	  	Hanny Holdings Limited	  	 25/F., Paul Y. Centre, 51 Hung To Road,
 Kwun
Tong, Kowloon, Hong Kong

			
	Buyer	  	CITIC PE Advisors (Hong Kong) Limited	  	 Suite 606, 6/F, One Pacific Place
 88 Queensway,
Hong Kong

 [Remainder of the page intentionally left blank; signatures to follow] 

  
 14 

 IN WITNESS WHEREOF, this Agreement has been executed and has been delivered on the first date written above. 

 

							
	Seller	 	
		
	CHINA ENTERPRISES LIMITED	 	
		
	 For and on behalf of
	 	
	 CHINA ENTERPRISES LIMITED
	 	
			
	By:	 	 /s/ Allan Yap
	 	
		 	  
	 	
		 	Authorized Signature(s)	 	
		 	Name:	 	Allan Yap	 	
		 	Title:	 	Director	 	
		
	Buyer	 	
	For and on behalf of	 	
	CZ TIRE HOLDINGS LIMITED	 	
			
	By:	 	 /s/ Yibing Wu
	 	signed on 19 November 2011
		 	  
	 	
		 	Name:	 	Yibing Wu	 	
		 	Title:	 	Director	 	

 EXHIBIT A 

FORM OF DEED OF ASSIGNMENT 
 THIS DEED
OF ASSIGNMENT is made on [            ], 2011. 
 AMONG 

CHINA ENTERPRISES LIMITED, a company incorporated under the laws of Bermuda (“Assignor”); 

CZ TIRE HOLDINGS LIMITED, a company incorporated under the laws of the British Virgin Islands (“Assignee”); and 

CHINA TIRE ENTERPRISES LIMITED, a company incorporated under the laws of Hong Kong (“Debtor”). 

WHEREAS: 
  

	(A)	As at the date of this Deed, a loan in the principal amount of RMB600,000,000 is owing by Debtor to Assignor (the “Shareholder Loan”). The Shareholders Loan is unsecured and interest free.

  

	(B)	By a share purchase and loan assignment agreement dated [            ], 2011 (the “Agreement”) between Assignor and Assignee, Assignor has
agreed to, inter alia, sell and assign and Assignee has agreed to purchase and accept an assignment from Assignor the full right, title, benefit and interest of Assignor in and to the Shareholder Loan on the terms and conditions of the Agreement and
this Deed. 

  

	(C)	It is a requirement under the Agreement that upon the Closing of the Agreement this Deed be delivered. 

 NOW
THIS DEED WITNESSETH as follows: 
  

	1.	In this Deed, unless the context requires otherwise: 

  

	 	(a)	words and expressions defined and other rules of interpretation used or set out in the Agreement have the same meanings and application; and 

 

	 	(b)	references to the Agreement shall be construed as references to the Agreement as amended or supplemented from time to time. 

  

	2.	In consideration of the payment of US Dollars equivalent of RMB600,000,00 by Assignee to Assignor pursuant to the Agreement, Assignor as legal and beneficial owner hereby unconditionally and irrevocably assigns unto
Assignee all of its right, title, benefit and interest in and to the Shareholder Loan free from any Encumbrance. 

  

	3.	Assignor hereby covenants with Assignee immediately on receipt to pay to Assignee any payments or other money which may be received by Assignor from Debtor in respect of the Shareholder Loan on or after the Closing and
until such payment to hold the same on trust for Assignee. 

  
 Exhibit A - 1 

	4.	All payments made by Debtor to Assignee under this Deed shall be made gross, free of any rights of counterclaim or set-off and without any deductions or withholdings (including Taxation) of any nature.

  

					
	5.	 	(a)	 	Debtor hereby irrevocably acknowledges and consents to the assignment of the Shareholder Loan by Assignor to Assignee under this Deed, and further irrevocably acknowledges and confirms that as from the date hereof, the Shareholder
Loan is owed to Assignee and Assignee is entitled at any time and from time to time at its discretion to require repayment of all or part of the Shareholder Loan.
			
		 	(b)	 	Debtor further undertakes to Assignee that it will henceforth make all payments of the Shareholder Loan and discharge all its liabilities and obligations in respect thereof to Assignee directly instead of to Assignor.

  

	6.	Assignor and Debtor hereby jointly and severally represent and warrant to Assignee that the information set out in the Recitals hereto is true and correct. 

 

	7.	Assignor hereby represents and warrants to Assignee that Assignor has power to assign and transfer the Shareholder Loan to Assignee in the manner herein set out. 

 

	8.	Each party hereto undertakes to the other parties that it will do all such things and execute all such documents as may be necessary or desirable to carry into effect or to give legal effect to the provisions of this
Deed. 

  

	9.	This Deed shall be binding on and enure for the benefit of each party’s successors and permitted assignees. 

  

	10.	The provisions in Section 8 of the Agreement shall apply mutatis mutandis to this Deed. 

[The remainder of this page is intentionally left blank] 

  
 Exhibit A - 2 

 IN WITNESS whereof this Deed has been duly executed under seal on the date first above written. 

 

			
	EXECUTED and DELIVERED as a deed	 	)
	By CHINA ENTERPRISES LIMITED	 	)
	in the presence of:	 	)
		
	EXECUTED and DELIVERED as a deed	 	)
		
	By CZ TIRE HOLDINGS LIMITED	 	)
		
	in the presence of:	 	)
		
	EXECUTED and DELIVERED as a deed	 	)
	By CHINA TIRE ENTERPRISES LIMITED	 	)
	in the presence of:	 	)

  
 Exhibit A - 3 

 EXHIBIT B 

FORM OF TAX SERVICE AGREEMENT 

  
 Exhibit B 

 

 
  

			
	 	 
		  	26/F Office Tower A
		  	Beijing Fortune Plaza
		  	7 Dongsanhuan Zhong Road
		  	Chaoyang District
		  	Beijing 100020, PRC
		  	Telephone +86 (10) 6533 8888
		  	Facsimile +86 (10) 6533 8800
	Private and Confidential	  	pwccn.com

 Mr. Yin Qi 
 Senior
Investment Manager 
 CITIC PE Advisors (Hong Kong) Limited 

Suite 606, One Pacific Place, 
 Admiralty, Hong Kong S.A.R. 

             2011 

Dear Mr. Yin Qi, 
 Tax Service Agreement 

PRC Corporate Income Tax Filing Services 

PricewaterhouseCoopers Consultants (Shenzhen) Limited – Beijing Branch (“PricewaterhouseCoopers” or “we”) is writing to summarise the
services we will render in assisting an offshore company owned in part by an offshore fund (“the CITIC PE Fund”) managed by CITIC Private Equity Fund Management Co., Ltd. (“the Buyer” or “you”) and China Enterprises
Limited (“the Seller” or “you”) to comply with the PRC Corporate Income Tax (“CIT”) filing obligations in relation to the equity transfer transaction between the Buyer and the Seller. This Engagement Letter, together
with our appended Terms of Business (ToB v1.0 (CN)), forms the Contract between us, summarises the scope of the services we will perform and confirms the responsibilities both you and we will assume in relation to the services under this Contract
(“the Services”). Please refer to the Terms of Business for the definitions of the capitalised terms used in this letter. 
 The terms of this
Contract apply to the Services provided on or after the acceptance of this Contract. The Contract will continue in full force and effect until the delivery and acceptance of the deliverables unless terminated in accordance with our Terms of
Business. 
 The Services 
 Background

 We understand that the Seller is a company established in Bermuda. It currently owns 26% interest in a joint venture company in the PRC (“the
Target”) and 100% of an SPV company established in Hong Kong with paid-in capital of HK$1.00 (“the HK SPV”). The Buyer is jointly owned by the CITIC PE Fund and another party, which will indirectly acquire from the Seller the 26%
equity interest in the Target. The contemplated transaction steps are as follows (Please refer to Chart 1 which is an illustration of the transaction steps):- 
  

	 	(1)	First Transfer: The Seller will first transfer its 26% interest in the Target to its HK SPV for a price equal to the US$ equivalent to RMB600 million. Thus, the HK SPV will become a new shareholder of the Target;

 

 
 Mr. Yin Qi 
 CITIC PE
Advisors (Hong Kong) Limited 
              2011 

 

	 	(2)	Second Transfer: The Seller will then transfer 100% of the HK SPV to the Buyer for a price equal to US$ equivalent to RMB600 million. 

Upon completion of the second transfer, the Buyer will hold the 26% interest in the Target through the HK SPV. 

 
 

 
 (Chart 1: Transaction Steps) 

  
 (2) 

 

 
 Mr. Yin Qi 
 CITIC PE
Advisors (Hong Kong) Limited 
              2011 

 

 Payments for the First and the Second Transfers will be as follows: 

(i) the HK SPV will not make any payment to the Seller upon completion of the first transfer and therefore will owe a debt to the Seller equal to US$
equivalent to RMB600 million; and 
 (ii) for the second transfer, the Buyer will pay US$ equivalent to RMB600 million (subject to the tax deduction
discussed below) to the Seller to receive all the issued share capital of the HK SPV and be assigned the debt owed by the HK SPV to the Seller equal to the US$ equivalent to RMB600 million. 

Upon completion of the second step, the HK SPV will have paid-in capital equal to HK$1.00 and will owe a debt to the Buyer equal to the US$ equivalent to
RMB600 million. 
 The PRC tax implications arising from the above two transfers are as follows:- 

First Transfer: PRC CIT Implications for the Seller’s Equity Transfer 

In the First Transfer, since the equity being transferred by the Seller is less than the prescribed proportion, i.e. 75%, of the total equity of the Target,
the Seller is not qualified to opt for the special tax treatment provided by Circular Caishui [2009] No. 59 (“Circular 59”). As such, the Seller should recognize the gain/loss from the transfer of the equity interest in the Target at
fair market value for PRC CIT purpose when the transaction takes place. In the absence of a withholding agent, the Seller should perform CIT filing and settle the relevant tax payable with the applicable local tax bureau of the Target within 7 days
from the date of the equity transfer as stipulated in the contract / agreement (if the Seller receives the transfer income earlier than such date, the Seller should file and settle the CIT within 7 days from the date when the payment is actually
received). 
 We understand that you have agreed to the following arrangements for the First Transfer: 

1. an amount in US$ equivalent to RMB40 million will be deducted from the purchase price for the Second Transfer for payment of PRC CIT in connection with the
First Transfer (“the Deducted Amount”); 
 2. the Buyer will be responsible for any additional PRC CIT in connection with the First Transfer
(“the Additional Amount”); 
 3. the Buyer and the Seller wish to engage us as tax agent to provide assistance to both parties in fulfilling the
relevant PRC CIT compliance requirements in relation to the First Transfer; and 
 4. the Buyer will wire the Deducted Amount and the Additional Amount to a
designated account so that we can make required tax payment on behalf of the Seller and the Buyer. 

  
 (3) 

 

 
 Mr. Yin Qi 
 CITIC PE
Advisors (Hong Kong) Limited 
              2011 

 

 Second Transfer: Overseas Indirect Equity Transfer 

According to Circular [2009] No. 698 (“Circular 698”), in a typical scenario of overseas indirect transfer, a Non-TRE (i.e. Tax Resident Enterprise)
transfers its equity in an overseas SPV company (which in turn holds a Chinese investee company) to another Non-TRE outside China. For such an indirect equity transfer, the transferor should be obliged to report the indirect transfer to the Chinese
local-level tax bureau in charge of the Chinese investee company within 30 days upon the transfer, provided that the SPV is located in a foreign tax jurisdiction with an effective tax rate of less than 12.5% or where no tax will be levied on the
foreign income of its TRE. This reporting obligation is to help Chinese tax authorities to detect the “suspicious” indirect transfer with the purpose for tax avoidance. 

Judging from its fact pattern, the Second Transfer would be perceived as a typical indirect equity transfer under the provisions of Circular 698. Thus, the
Seller should fulfill the reporting obligations to the local-level Chinese tax authorities in charge of the Target. 
 The Seller and the Buyer wish to
engage us as tax agent to provide assistance in its fulfilling of the reporting obligations for the indirect equity transfer in the second transaction step. 

Service Scope 
 Our service scope will be as
follows:- 
 Part I 
 For First Transfer: CIT Filing
and Tax Settlement for Equity Transfer by the Seller 
  

	•	 	Estimate the CIT liabilities for the Seller in the First Transfer in accordance with the provisions in Circular 59 and based on the information and materials provide to us; 

 

	•	 	Provide a PRC trust bank account to the Buyer; 

  

	•	 	Preparation of CIT returns and other supporting documents as required by the local-level Chinese tax authorities of the Target which will be submitted for tax filing purpose subject to the review and approval by the
Buyer; 

  

	•	 	Business trip to the local-level Chinese tax authorities in charge of the Target for submission of the CIT returns and the supporting documents on behalf of the Seller. Also, discussion with the tax authorities
regarding the equity transfer on behalf of the Seller and assistance in responding to the queries from the tax authorities regarding the submitted documents. Assistance in preparation of additional documents according to the requirement of the tax
authorities. Provision of advice as necessary in relation to any contentious matters; 

  

	•	 	Upon obtaining consensus from the tax authorities regarding the CIT return, informing both the Seller and the Buyer so that the Buyer will remit the relevant funds to our designated PRC trust bank account for tax
settlement; 

  

	•	 	Business trip to the local-level Chinese tax authorities in charge of the Target for tax settlement on behalf of the Seller. 

  

	•	 	Where we act as paying agent or otherwise assist in making payment of the CIT liabilities, such payment will not be able to be made until the necessary funds have been received in full into the designated PRC bank
account that is used to make such payments and any failure to ensure that funds are received in full into that designated PRC bank account may result in the imposition of additional tax and penalties for late payment. We will not be liable for any
additional tax or penalties which arise as a result of such failure. We agree that you are entitled to any interest calculated on a daily basis according to the prevailing demand deposit interest rate promulgated by People’s Bank of China and
based on the RMB balance (The tax advance payment made in foreign currency will be converted into RMB with the prevailing exchange rate as of the day on which the payment was received) as of each day arising in respect of all funds held by us on
your behalf in respect of the CIT liabilities. The relevant bank charges and other cost associated with maintaining the designated PRC bank account and remitting the accumulated interest to you will be deducted from the total amount of interest.

  
 (4) 

 

 
 Mr. Yin Qi 
 CITIC PE
Advisors (Hong Kong) Limited 
              2011 

 

	•	 	Upon completion of CIT payment, provision of assistance in obtaining the Tax Payment Receipt. Also, provision to both the Seller and the Buyer a photocopy of the complete set of the CIT filing documentation for
safekeeping. 

 Part II 
 For Second
Transfer: Indirect Equity Transfer Reporting 
 We will assist the Buyer in fulfilling the reporting obligations for the indirect equity transfer with
the local-level Chinese tax authorities in charge of the Target in accordance with the compliance requirement of Circular 698. Specifically, we will:- 
  

	•	 	Provision of assistance in the preparation of the following requisite documents and information to be submitted to the local-level Chinese tax authorities:- 

 

	 	•	 	Equity transfer contract / agreement; 

  

	 	•	 	Documents illustrating the relationship between the Seller and the HK SPV being transferred in respect of financing, operation, sales and purchase, etc.; 

 

	 	•	 	Documents illustrating the operation, personnel, finance and properties of the HK SPV; 

  

	 	•	 	Documents illustrating the relationship between the HK SPV and the Target in respect of financing, operation, sales and purchase, etc.; 

 

	 	•	 	Documents illustrating the reasonable commercial purpose of the Seller in setting up the HK SPV. 

  

	•	 	Business trip to the local-level Chinese tax authorities in charge of the Target for submission of the above documents on behalf of the Seller. On behalf of the Seller, discussion with the tax authorities regarding the
indirect transfer on behalf of the Seller and assistance in responding to the queries from the tax authorities regarding the submitted documents. Assistance in preparation of additional documents according to the requirement of the tax authorities.
Provision of advice as necessary in relation to any contentious matters. 

 Deliverables 

The deliverables under this engagement will include the following:- 

Part I 
 For First Transfer: CIT Filing and Tax
Settlement for Equity Transfer by the Seller 
  

	 	1.	CIT calculation schedules and tax returns; 

  

	 	2.	CIT Tax Payment Receipt 

  
 (5) 

 

 
 Mr. Yin Qi 
 CITIC PE
Advisors (Hong Kong) Limited 
              2011 

 

 Part II 

For Second Transfer: Indirect Equity Transfer Reporting 
  

	 	1.	Letter to the local-level Chinese tax authorities in charge of the Target introducing the indirect equity transfer details and presenting the tax position that the equity transfer should not generate any taxable
proceeds from the PRC CIT perspective. 

 We will prepare tax returns and other related documents in the language in which they are required
to be filed. You agree that you will review, approve and where necessary sign these documents and that you will be responsible for the positions taken by the company and for the underlying company information. For your convenience, we will translate
these documents (or extracts thereof) into English, but you should not rely exclusively on our translation for the purposes of discharging your responsibility for the positions taken and the underlying company information. 

Exclusions 
 We accept no responsibility to inform
you of changes in the law, regulations, standards or interpretations after we have provided the Services. 
 Unless separately agreed between you and us tax
compliance services and tax consulting services other than those detailed above are not included in this Contract. 
 Staffing 

The Services will be provided and co-ordinated by Oliver Kang, the Engagement Partner and Scott Qian, the Engagement Manager and other staff as appropriate.

 Client Contact 
 You have designated Mr. Yin Qi
to be our primary contacts when delivering the Services as a person with the knowledge, experience and ability to make decisions in relation to the Services and our recommendations. 

Auditor Independence 
 If we are no longer permitted to
provide the Services to you because of auditor independence regulations, we reserve the right to vary our engagement letter with your agreement to ensure that such regulations are not breached or, where necessary, to terminate this Contract. 

Conflicts of Interest 
 We provide a wide range of
services for a large number of clients and may provide services to companies and organisations which you might regard as giving rise to a conflict of interest. 

Whilst we have established procedures to identify such situations, we cannot be certain that we will identify ail conflicts that exist or may develop, in part
because we cannot always anticipate what a company might perceive to be a conflict. 

  
 (6) 

 

 
 Mr. Yin Qi 
 CITIC PE
Advisors (Hong Kong) Limited 
              2011 

 

 You undertake to notify us of any conflicts relating to the services we provide, of which you are or become
aware. 
 Fees and Payment 
 Our fees will be calculated
in accordance with clause 6 of our Terms of Business and will be invoiced after we have provided the Services. We will send our invoices to the Buyer c/o Mr. Yin Qi of the CITIC PE Advisors (Hong Kong) Limited. 

Our service fees are denominated and are payable in RMB. Our service fees will be RMB300,000. In addition to our fees, we will also charge telephone, local
travel (taxis, etc) and document handling (photocopying, printing, fax and courier, etc) expenses in connection with our services separately. We understand that the Buyer and the Seller have agreed that all of our services fees and expenses should
be borne by the Buyer and the Seller in equal shares. 
 Under the PRC law, business tax is payable on the gross amount of all billings (including expenses)
with respect to services rendered within the PRC. In addition, an urban construction and maintenance tax together with an education surcharge are payable based on the amount of business tax paid. These taxes/surcharges represent 5.82% of the total
billing and will be included in the debit note issued to the Buyer c/o Mr. Yin Qi of CITIC PE Advisors (Hong Kong) Limited. The Buyer and the Seller have agreed to settle the debit note in full. 

Our fees as set out above relate only to work we carry out in respect of the tax returns and tax filings which are the subject of this Engagement Letter. The
detailed scope and fee cost of any other work we agree to carry out for you, whether in relation to general consulting matters or specific projects or matters (including assistance in dealing with any subsequent tax audit or other in-depth
examination of any of the tax returns and tax filings which are the subject of this engagement) will be the subject of separate written agreement between us. 

Terms of Business 
 Our Terms of Business are attached to
this Engagement Letter. Please read these terms carefully and let us know if you would like to discuss any aspect before you agree to them. 
 Clause 9 sets
out important restrictions on our potential liability, including the circumstance of our being held to be in breach of obligations, in contract or tort. It is reasonable that we agree at the outset the maximum amount of our potential liability
provided that such limitation is not unfair. You and we agree that this represents your and our joint judgement of the extent to which it is reasonable for us to bear liability in connection with this engagement. You and we agree that this maximum
amount is fair in view of the scope and size of the Services and the risks we assume in carrying out the Services compared to the fees we will receive. It is agreed that the aggregate limit of our liability for the purpose of clause 9.1 will be
limited to the fee payable for the portion of Services or work giving rise to the liability. 

  
 (7) 

 

 
 Mr. Yin Qi 
 CITIC PE
Advisors (Hong Kong) Limited 
              2011 

 

 Acknowledgement and Acceptance 

If these terms and arrangements are satisfactory and in accordance with your understanding of what is expected from us, please arrange to have both copies of
this letter signed and return one copy to us. 
 Yours sincerely, 

For and on behalf of PricewaterhouseCoopers Consultants (Shenzhen) Limited – Beijing Branch 

 

			
	Name:	 	Oliver Kang
	Title:	 	Partner

 Enclosure 

Acknowledgement & Acceptance 
 On behalf of CZ
Tire Holdings Limited, I fully accept the terms of the Contract and warrant that I have the authority to sign this Contract on behalf of CZ Tire Holdings Limited. 
  

			
	Signed	 	  

		
	Printed Name	 	YIBING WU
		
	Position	 	Director
		
	Date	 	  

 On behalf of China Enterprises Limited, I fully accept the terms of the Contract and warrant that I have the authority to sign
this Contract on behalf of China Enterprises Limited. 
  

			
	Signed	 	  

		
	Printed Name	 	ALLAN YAP
		
	Position	 	Director
		
	Date	 	  

  
 (8) 

 Terms of Business 

Introduction – This document and attached engagement letter (“Engagement Letter”), form the contract (“Contract”) between the
client(s) named in the Engagement Letter (“you”) and the PricewaterhouseCoopers entity named in the Engagement Letter (“we” or “us”). 

 

			
	 Contents

		
	1	  	Our services
		
	2	  	Your responsibilities
		
	3	  	Confidentiality
		
	4	  	Intellectual property rights
		
	5	  	Data protection
		
	6	  	Fees and payments
		
	7	  	Subcontractors
		  	(including other PwC Firms)
		
	8	  	PwC Individuals
		
	9	  	Liability
		
	10	  	SEC prohibitions
		
	11	  	Term and termination
		
	12	  	Electronic communication
		
	13	  	General
		
	14	  	Dispute resolution

  

	1.	Our services 

  

	1.1	Scope – We will perform the services described in the Engagement Letter with reasonable skill and care. 

  

	1.2	Timetable – We will use our best efforts to meet any specified timetable. However, unless expressly agreed in writing, dates contained in the Engagement Letter or otherwise communicated are indicative dates
intended for planning and estimating purposes only. 

  

	1.3	Further work – Unless otherwise agreed in writing, any further work we may agree to carry out in connection with the services will be carried out as part of this Contract and will be subject to its terms.

  

	1.4	Oral advice and draft deliverables – You acknowledge that you will not rely on draft deliverables or oral advice issued by us as they may be subject to further work and revisions. 

 

	1.5	Services for your benefit – Our services are provided solely for your use for the purpose set out in the Engagement Letter or the relevant deliverable. Except as stated in the Engagement Letter or the
relevant deliverable, as required by law, or with our prior written consent, you may not: 

  

	 	(a)	show or provide a deliverable to any third party or include or refer to a deliverable or our name or logo in a public document; 

  

	 	(b)	make any public statement about us or the services.

	2.	Your responsibilities 

  

	2.1	Generally – You agree to: 

  

	 	(a)	provide us promptly with all information, instructions and access to third parties we reasonably require to perform the services; 

  

	 	(b)	ensure we are permitted to use any third party information or intellectual property rights you require us to use to perform the services. 

 

	2.2	Information – You agree to: 

  

	 	(a)	ensure that information provided to us is accurate, complete and not misleading (we will rely on this information to perform the services and will not verify it in any way, except to the extent we have expressly agreed
to do so as part of the services); 

  

	 	(b)	alert us to changes to information provided to us; 

  

	 	(c)	let us know if you expect us to use information from other engagements in connection with this one (otherwise, we are not required to use that information and will not be deemed to know it for the purposes of this
Contract). 

  

	2.3	Interdependence – Our performance depends on you also performing your obligations under this Contract. You agree that we are not liable for any default that arises because you do not fulfil your obligations.

  

	3.	Confidentiality 

  

	3.1	Confidential information – We and you agree to use the other’s confidential information only in relation to the services, and not to disclose it, except where required by law or regulation or where
requested by a professional body of which we are a member. However, we may give confidential information to other PwC Firms (as defined in clause 7.1 below) or relevant subcontractors as long as they are bound by confidentiality obligations and to
the extent it is not prohibited by the applicable law. 

  

	3.2	Referring to you and the services – In the event that the relevant project, transaction or engagement is no longer confidential, we may refer to you and the nature of the services we have performed for you
when marketing our services, provided we do not disclose your confidential information. 

  

	4.	Intellectual property rights 

 We will own the intellectual property rights in the
deliverables and any materials created under this Contract, and you will have a non-exclusive, non-transferable licence to use the deliverables in accordance with clause 1.5.

 

  

					
	ToB v1.0 (CN)	  	Page 1 of 3	  	

 

	5.	Data protection 

  

	5.1	Responsibilities acknowledgement – In connection with this engagement, each party provides personal data to the other in accordance with any applicable data protection laws and regulations.

  

	5.2	Personal data – You agree that we may process and transfer your personal data to other PwC Firms and relevant subcontractors (who may be located in other territories) for the purposes of
(i) providing the services, (ii) maintaining our operations or client relationship management systems, (iii) quality and risk management reviews, or (iv) providing you with information about us and our range of services.

  

	6.	Fees and payments 

  

	6.1	Basis of fees – Fees for the services will be charged on the basis as set out in the Engagement Letter. Where the Engagement Letter does not do so, our fees will reflect time spent and other factors
such as complexity, specialist input required and the urgency and inherent risks of the engagement. 

  

	6.2	Changes – In the event that the actual time spent on the services is substantially more than expected at the time of signing the Contract, we will mutually agree with you a revised fee.

  

	6.3	Expenses – Unless otherwise stated in the Engagement Letter, all fees are exclusive of expenses and we will charge you expenses such as travel, subsistence, communication and document handling costs
(photocopying, printing, fax and courier, etc). 

  

	6.4	Taxes – Unless otherwise stated in the Engagement Letter, fees for our services are net of any taxes, including turnover taxes, that are due. 

 

	6.5	Invoices and payment – All invoices will be due for payment upon receipt by you. Unless otherwise agreed in writing, the amount billed will be payable regardless of whether or not your project or
transaction is completed, or whether our advice is acted upon. 

  

	7.	Subcontractors (including other PwC Firms) 

  

	7.1	Subcontractors – we may use other PwC Firms (each of which is a separate and independent legal entity) or subcontractors to provide the services. We remain solely responsible for the services. PwC
Firms refer to any entity or partnership within the worldwide network of PricewaterhouseCoopers firms and entities (“PwC Firms”). 

  

	7.2	No claims against other PwC Firms – You agree not to bring any claim against another PwC Firm in connection with the services. Any PwC Firm who deals with you in connection with the services does so
solely on our behalf. 

	7.3	Benefit of clause 7.2 – Clause 7.2 is for the benefit of other PwC Firms. You agree that each of the other PwC Firms may rely on clause 7.2 as if they were a party to this Contract. Each other PwC
Firm that assists in providing the services relies on the protection in clause 7.2 and we accept its benefit on their behalf. 

  

	8.	PwC Individuals 

 No claims against individuals – You agree not to bring
any claim against any of (i) our employees or employees of other PwC Firms or (ii) our partners or partners of other PwC Firms (together “PwC Individuals”) personally in connection with the services. This clause is for the
benefit of PwC Individuals. Each PwC Individual involved in providing the services relies on the protection in clause 8 and we accept its benefit on their behalf. 
  

	9.	Liability 

  

	9.1	Liability cap – Our liability for loss or damages arising in relation to the services, as a result of breach of contract, tort or otherwise, is limited to the liability cap set out in the Engagement Letter,
except to the extent to which we are finally determined to have engaged in wilful misconduct or fraudulent behaviour. Where no amount is stated, you agree the liability cap is an amount equal to the fees payable by you for the portion of our
services or work giving rise to the liability. 

  

	9.2	Specific types of loss – To the extent permitted by law we will not be liable for any loss, damages or expenses, not directly caused by our wrongdoing (including loss of profits or revenue, business
interruption, loss or corruption of data, loss of business opportunity, or failure to realise anticipated savings or benefits) arising in any way in relation to the services. 

 

	9.3	Proportionality – The amount of our liability (if any) shall be limited to that proportion of the total damage, after taking into account the responsibility of all who contribute to your loss.

  

	9.4	Sharing of limit – Where we agree in writing to accept liability to more than one party, the limit on our liability in clause 9.1 will be shared between them, and it is up to those parties how they share it.

  

	9.5	Liability to you alone – We accept no liability to anyone, other than you, in connection with our services, unless otherwise agreed by us in writing. You agree to reimburse us, other PwC Firms, partners,
employees and subcontractors for any liability (including legal costs) that we incur in connection with any claim by anyone else in relation to the services. Your obligation to reimburse will not apply to the extent such claim or action is finally
determined to have resulted from fraud or wilful misconduct by us, other PwC Firms, partners, employees or subcontractors.

 

  

					
	ToB v1.0 (CN)	  	Page 2 of 3	  	

 

	10.	SEC prohibitions 

 Nothing in this Contract applies to the extent that it is prohibited
by the rules of the US Securities and Exchange Commission. 
  

	11.	Term and termination 

  

	11.1	Commencement – This Contract will start on the earlier of (i) the date of the Engagement Letter; or (ii) when we begin to perform the services. 

 

	11.2	Termination – This Contract may be terminated or suspended by either party by written notice subject to any statutory or regulatory provisions that apply to the services. 

 

	11.3	Fees payable on termination – You agree to pay us for all services we perform before termination or suspension. 

  

	11.4	Survival – The provisions of this Contract which expressly or by implication are intended to survive its termination or expiry will survive and continue to bind the parties. 

 

	12.	Electronic communication 

 In connection with the services the parties to this Contract
may from time to time communicate with each other electronically. However, the electronic transmission of information cannot be guaranteed to be secure or error free and such information could arrive late or incomplete, be intercepted, corrupted,
lost, destroyed or otherwise be adversely affected or unsafe to use. Accordingly each party accepts the limitations of electronic communication, and will use reasonable procedures to check for the then most commonly known viruses before sending
information electronically. 
  

	13.	General 

  

	13.1	Performing services for others – Provided we do not disclose your confidential information and we comply with our ethical obligations, you agree that we may perform services for other parties whose interests
may conflict or compete with yours. 

  

	13.2	Entire agreement – This Contract forms the entire agreement relating to the services. It replaces and supersedes any previous proposals, correspondence, understanding, agreements or other communications
whether written or oral. 

  

	13.3	Severability – If any clause of this Contract, or part of any clause, is found by a court of competent jurisdiction or other competent authority to be invalid, unlawful or unenforceable, then the clause or
part will be severed from the remainder of this Contract, which will continue to be valid and enforceable to the fullest extent permitted by law.

	13.4	Conflicting terms – If anything in these terms of business is inconsistent with the Engagement Letter, the Engagement Letter takes precedence. 

 

	13.5	Assignment – No party may assign or deal with its rights under this agreement without the other’s prior written consent. 

 

	13.6	Matters beyond reasonable control – No party will be liable to another if it fails to meet its obligations due to matters beyond their reasonable control. 

 

	14.	Dispute resolution 

  

	14.1	Mediation – If a dispute arises, the parties will attempt to resolve it by discussion, negotiation and mediation before commencing legal proceedings. 

 

	14.2	Law and jurisdiction – The law of the People’s Republic of China will govern this Contract. Any dispute arising from or in connection with the Contract shall be submitted to China International Economic
and Trade Arbitration Commission in Beijing for arbitration which shall be conducted in accordance with the commission’s arbitration rules. The arbitral tribunal shall consist of three arbitrators who shall be appointed in accordance with the
commission’s rules. The arbitral award shall be final and binding upon both parties. 

 

  

					
	ToB v1.0 (CN)	  	Page 3 of 3	  	

 EXHIBIT C 

FORM OF TRANSFER DOCUMENTS 

Form of Bought and Sold Notes and Instruments of Transfer 

BOUGHT NOTE 
  

			
	Name of Seller (Transferor):	 	  

			
		
	Address:	 	  

			
		
	Occupation:	 	  

			
	
	 Name of Company in which the Shares are to be transferred:

 

[                       
                 ]

		
	Number of Shares:	 	  

		
	Consideration Paid:	 	  

  

	
	For and on behalf of
	
	  

	Authorized Signatory
	(Transferee)

  

							
	Dated	 		 		 	
			
	  
	 	—	 	  

  
 SOLD NOTE 

			
		
	Name of Buyer (Transferee):	 	  

			
		
	Address:	 	  

			
		
	Occupation:	 	  

			
	
	 Name of Company in which the Shares are to be transferred:

 

[                       
                 ]

		
	Number of Shares:	 	  

			
		
	Consideration Received:	 	  

  

	
	For and on behalf of
	
	  

	Authorized Signatory
	(Transferor)

 Dated 

  
 Exhibit C - 1 

 INSTRUMENT OF TRANSFER 

[                       
                 ] 
  

			
	We	 	  

			
		
	of 	 	  

			
		
	in consideration of the sum of 	 	  

			
		
	paid to us by	 	  

			
		
	being a	 	  

			
		
	of 	 	  

	(hereinafter called “the said Transferee”) do hereby transfer to the said Transferee the following Shares (“the said Shares”):

  

			
	 Number of Shares
	  	Par Value
		  	
		  	
		  	

 standing in our name in the Register of [—] to hold unto the said
Transferee his Executors, Administrators or Assigns, subject to the several conditions upon which we hold the same at the time of execution hereof. And we the said Transferee do hereby agree to take the said Shares subject to the same conditions.

 Witness our hands the              day of 

 

							
	 Witness to the signature(s)

of the transferor
	 	

	 	For and on behalf of
	  
 Name
	  	  
	 	 	  

	Address	  	  
  
	 	 	Authorized Signatory
		  	  
  
	 	 	(transferor)
		  	  
  
	 	 	

  

							
	 Witness to the signature(s)
 of
the transferee
	 	

	 	 For and on behalf of
  

	Name	  	  
  
	 	 	  

	Address	  	  
  
	 	 	Authorized Signatory
		  	  
  
	 	 	(transferee)
		  	  
  
	 	 	

  
 Exhibit C - 2 

 EXHIBIT D 

FORM OF LEGAL OPINION FROM SELLER’S BERMUDA COUNSEL 

  
 Exhibit D 

 [—], 2011 

Matter No.: 808499 
 Doc Ref:
JK/ama/360474 
 Direct Line: (852) 2842 9526 

Joanna.Kee@conyersdill.com 
 CZ Tire Holdings
Limited 
 c/o CITIC PE Advisors (Hong Kong) Limited 
 Suite
606, 6/FOne Pacific Place 
 88 Queensway 
 Hong Kong 

Dear Sirs, 
 Re: China Enterprises Limited (the
“Company”) 
 We have acted as special Bermuda legal counsel to the Company in connection with: 

 

	1.	a tax service agreement dated [—], 2011 signed by the Company as seller and CZ Tire Holdings Limited (the “Buyer”) as buyer in favour of
PricewaterhouseCoopers Consultants (Shenzhen) Limited, Beijing Branch, together with the terms of business (ToB v1.0 (CN) (the “Tax Service Agreement”); and 

 

	2.	a share purchase and loan assignment agreement (the “Share Purchase and Loan Assignment Agreement”) dated [—], 2011 made between the Company as seller
and the Buyer. 

 For the purposes of giving this opinion, we have examined a copy each of the following documents: 

 

	(i)	the signed Tax Service Agreement; and 

  

	(ii)	the executed Share Purchase and Loan Assignment Agreement. 

 The documents listed in items (i) and (ii) above
are herein sometimes collectively referred to as the “Documents” (which term does not include any other instrument or agreement whether or not specifically referred to therein or attached as an exhibit or schedule thereto). 

 We have also reviewed the memorandum of association and the bye-laws of the Company, each certified by the
director of the Company on [—], 2011, [minutes of a meeting/written resolutions] of its directors of the Company held on/dated [—], 2011 (the
“Minutes”), and such other documents and made such enquiries as to questions of law as we have deemed necessary in order to render the opinion set forth below. 

We have assumed (a) the genuineness and authenticity of all signatures and the conformity to the originals of all copies (whether or not certified) examined
by us and the authenticity and completeness of the originals from which such copies were taken; (b) that where a document has been examined by us in draft form, it will be or has been executed in the form of that draft, and where a number of drafts
of a document have been examined by us all changes thereto have been marked or otherwise drawn to our attention; (c) the capacity, power and authority of each of the parties to the Documents, other than the Company, to enter into and perform its
respective obligations under the Documents; (d) the due execution and delivery of the Documents by each of the parties thereto, other than the Company, and the physical delivery thereof by the Company with an intention to be bound thereby; (e) the
accuracy and completeness of all factual representations made in the Documents and other documents reviewed by us (except to the extent that we expressly opine herein on matters of Bermuda law); (f) that the resolutions contained in the Minutes were
passed at one or more duly convened, constituted and quorate meetings or by unanimous written resolutions, remain in full force and effect and have not been rescinded or amended; (g) that the Company is entering into the Documents pursuant to its
business of investment holding; (h) that there is no provision of the law of any jurisdiction, other than Bermuda, which would have any implication in relation to the opinions expressed herein; (i) the validity and binding effect under the laws of
The Hong Kong Special Administrative Region of The People’s Republic of China (“Hong Kong”) of the Share Purchase and Loan Assignment Agreement which is expressed to be governed by such laws in accordance with its terms; (j)
the validity and binding effect under the laws of the People’s Republic of China of the Tax Service Agreement which is expressed to be governed by such laws in accordance with its terms; (k) the validity and binding effect under the laws of
Hong Kong of the submission by the Company pursuant to the Share Purchase and Loan Assignment Agreement to arbitration in Hong Kong at the Hong Kong International Arbitration Centre (“HKIAC”) in accordance with the UNCITRAL
Arbitration Rules in force at the time of the initiation of the arbitration; (1) the validity and binding effect under the laws of the People’s Republic of China of the submission by the Company pursuant to the Tax Service Agreement to
arbitration in Beijing at the China International Economic and Trade Arbitration Commission (“CIETAC”) in accordance with rules of the CIETAC; (m) that none of the parties to the Documents carries on business from premises in
Bermuda, at which it employs staff and pays salaries and other expenses; and (n) that on the date of entering into the Documents the Company is and after entering into the Documents will be able to pay its liabilities as they become due. 

  
 Page 2 of 7 

 The obligations of the Company under the Documents (a) will be subject to the laws from time to time in
effect relating to bankruptcy, insolvency, liquidation, possessory liens, rights of set off, reorganisation, amalgamation, moratorium or any other laws or legal procedures, whether of a similar nature or otherwise, generally affecting the rights of
creditors as well as applicable international sanctions; (b) will be subject to statutory limitation of the time within which proceedings may be brought; (c) will be subject to general principles of equity and, as such, specific
performance and injunctive relief, being equitable remedies, may not be available; (d) may not be given effect to by a Bermuda court, whether or not it was applying the Foreign Laws, if and to the extent they constitute the payment of an amount
which is in the nature of a penalty and not in the nature of liquidated damages; (e) may not be given effect by a Bermuda court to the extent that they are to be performed in a jurisdiction outside Bermuda and such performance would be illegal
under the laws of that jurisdiction. Notwithstanding any contractual submission to the jurisdiction of specific courts, a Bermuda court has inherent discretion to stay or allow proceedings in the Bermuda courts. 

We express no opinion as to the enforceability of any provision of the Documents which provides for the payment of a specified rate of interest on the amount
of a judgment after the date of judgment or which purports to fetter the statutory powers of the Company. 
 We have made no investigation of and express no
opinion in relation to the laws of any jurisdiction other than Bermuda. This opinion is to be governed by and construed in accordance with the laws of Bermuda and is limited to and is given on the basis of the current law and practice in Bermuda.
This opinion is issued solely for your benefit and use in connection with the matter described herein and is not to be relied upon by any other person, firm or entity or in respect of any other matter. 

On the basis of and subject to the foregoing, we are of the opinion that: 
  

	1.	The Company is duly incorporated and existing under the laws of Bermuda. 

  

	2.	The Company has the necessary corporate power and authority to enter into and perform its obligations under the Documents. The execution and delivery of the Documents by the Company and the performance by the Company of
its obligations thereunder will not violate the memorandum of association or bye-laws of the Company nor any applicable law, regulation, order or decree in Bermuda. 

 

	3.	The Company has taken all corporate action required to authorise its execution, delivery and performance of the Documents. The Documents have been duly executed and delivered by or on behalf of the Company, and
constitute the valid and binding obligations of the Company in accordance with the terms thereof. 

  
 Page 3 of 7 

	4.	No order, consent, approval, licence, authorisation or validation of or exemption by any government or public body or authority of Bermuda or any sub-division thereof is required to authorise or is required in
connection with the execution, delivery, performance and enforcement of the Documents, except such as have been duly obtained in accordance with Bermuda law. 

  

	5.	It is not necessary or desirable to ensure the enforceability in Bermuda of the Documents that they be registered in any register kept by, or filed with, any governmental authority or regulatory body in Bermuda.
However, to the extent that any of the Documents creates a charge over assets of the Company, it may be desirable to ensure the priority in Bermuda of the charge that it be registered in the Register of Charges in accordance with Section 55 of
the Companies Act 1981. On registration, to the extent that Bermuda law governs the priority of a charge, such charge will have priority in Bermuda over any unregistered charges, and over any subsequently registered charges, in respect of the assets
which are the subject of the charge. A registration fee of $557 will be payable in respect of the registration. 

 While there
is no exhaustive definition of a charge under Bermuda law, a charge includes any interest created in property by way of security (including any mortgage, assignment, pledge, lien or hypothecation). As the Documents are governed by the Foreign Laws,
the question of whether they create such an interest in property would be determined under the Foreign Laws. 
  

	6.	Based solely on a search of the Register of Charges maintained by the Registrar of Companies pursuant to Section 55 of the Companies Act 1981 conducted at [11:40] a.m. on [15 April], 2011 (which would not reveal
details of matters which have been lodged for registration but not actually registered at the time of our search), there are no charges registered on the assets of the Company. 

 

	7.	The Documents will not be subject to ad valorem stamp duty in Bermuda and no registration, documentary, recording, transfer or other similar tax, fee or charge is payable in Bermuda in connection with the
execution, delivery, filing, registration or performance of the Documents other than as stated in paragraph 5 hereof. 

  

	8.	The choice of the laws of Hong Kong and the laws of the People’s Republic of China, as the case may be, as the governing law of the Documents is a valid choice of law and would be recognised and given effect to in
any action brought before a court of competent jurisdiction in Bermuda, except for those laws (i) which such court considers to be procedural in nature, (ii) which are revenue or penal laws or (iii) the application of which would be inconsistent
with public policy, as such term is interpreted under the laws of Bermuda. The submission in the Share Purchase and Loan Assignment Agreement to arbitration in Hong Kong at the HKIAC in accordance with the UNCITRAL Arbitration Rules and the
submission in the Tax Service Agreement to arbitration in Beijing at the CIETAC in accordance with the rules of the CIETAC are valid and binding upon the Company. 

  
 Page 4 of 7 

	9.	An award granted pursuant to arbitration proceedings in Hong Kong and conducted in accordance with the UNCITRAL Arbitration Rules against the Company based upon the Share Purchase and Loan Assignment Agreement and an
award granted pursuant to arbitration proceedings in Beijing and conducted in accordance with the rules of the CIETAC against the Company based upon the Tax Service Agreement would be enforceable in Bermuda under the Bermuda International
Conciliation and Arbitration Act 1993 (which incorporates the Convention on the Recognition and Enforcement of Foreign Arbitral Awards adopted by the United Nations Conference on International Commercial Arbitration on 10th of June, 1958) either by
action or by leave of the Supreme Court or a judge thereof, in the same manner as a judgment or order to the same effect, and where leave is so given, judgment may be entered in the terms of the award. Enforcement of an award may be refused if the
person against whom it is invoked proves: 

  

	 	(a)	that a party to the arbitration agreement was (under the law applicable to him) under some incapacity; or 

  

	 	(b)	that the arbitration agreement was not valid under the law to which the parties subjected it or, failing any indication thereon, under the law of the country where the award was made; or 

 

	 	(c)	that he was not given proper notice of the appointment of the arbitrator or of the arbitration proceedings or was otherwise unable to present his case; or 

 

	 	(d)	that the award deals with a difference not contemplated by or not falling within the terms of the submission to arbitration or contains decisions on matters beyond the scope of the submission to arbitration; or

  

	 	(e)	that the composition of the arbitral authority or the arbitral procedure was not in accordance with the agreement of the parties or, failing such agreement, with the law of the country where the arbitration took place;
or 

  
 Page 5 of 7 

	 	(f)	that the award has not yet become binding on the parties, or has been set aside or suspended by a competent authority of the country in which, or under the law of which, it was made. 

Enforcement may also be refused if the award is in respect of a matter which is not capable of settlement by arbitration, or if it would be
contrary to public policy to enforce the award. 
  

	10.	Based solely upon a search of the Cause Book of the Supreme Court of Bermuda conducted at [11:00] a.m. on [15 April], 2011 (which would not reveal details of proceedings which have been filed but not actually entered in
the Cause Book at the time of our search), there are no judgments against the Company, nor any legal or governmental proceedings pending in Bermuda to which the Company is subject. 

 

	11.	Based solely on a search of the public records in respect of the Company maintained at the offices of the Registrar of Companies at [11:40] a.m. on [15 April], 2011 (which would not reveal details of matters which have
not been lodged for registration or have been lodged for registration but not actually registered at the time of our search) and a search of the Cause Book of the Supreme Court of Bermuda conducted at [11:00] a.m. on [15 April], 2011 (which would
not reveal details of proceedings which have been filed but not actually entered in the Cause Book at the time of our search), no details have been lodged of any steps taken in Bermuda for the appointment of a receiver or liquidator to, or for the
winding-up, dissolution, reconstruction or reorganisation of, the Company, though it should be noted that the public files maintained by the Registrar of Companies do not reveal whether a winding-up petition or application to the Court for the
appointment of a receiver has been presented and entries in the Cause Book may not specify the nature of the relevant proceedings. 

  

	12.	The Buyer will not be deemed to be resident, domiciled or carrying on business in Bermuda by reason only of the execution, performance and/or enforcement of the Documents by the Buyer. 

 

	13.	The Buyer has standing to bring an action or proceedings before the appropriate courts in Bermuda for the enforcement of the Documents. It is not necessary or advisable in order for the Buyer to enforce its rights under
the Documents, including the exercise of remedies thereunder, that it be licensed, qualified or otherwise entitled to carry on business in Bermuda. 

  
 Page 6 of 7 

	14.	The Company is not entitled to any immunity under the laws of Bermuda, whether characterised as sovereign immunity or otherwise, from any legal proceedings to enforce the Documents in respect of itself or its property.

 Yours faithfully, 
 Conyers Dill &
Pearman 

  
 Page 7 of 7 

 [—], 2011 

Matter No.: 808498 
 Doc Ref:
JK/ama/360963 
 Direct Line: (852) 2842 9526 

Joanna.Kee@conyersdill.com 
 CZ Tire Holdings
Limited 
 c/o CITIC PE Advisors (Hong Kong) Limited 
 Suite
606, 6/FOne Pacific Place 
 88 Queensway 
 Hong Kong 

Dear Sirs, 
 Re: Hanny Holdings Limited (the
“Company”) 
 We have acted as special Bermuda legal counsel to the Company in connection with a deed of guarantee (the
“Guarantee”) dated [—], 2011 executed by the Company as guarantor in favour of CZ Tire Holdings Limited (the “Buyer”). 

For the purposes of giving this opinion, we have examined a copy each of the following documents: 

 

	(i)	the executed Guarantee; 

  

	(ii)	the signed tax service agreement dated [—], 2011 signed by China Enterprises Limited (the “Seller”) as seller and the Buyer as buyer in favour of
PricewaterhouseCoopers Consultants (Shenzhen) Limited, Beijing Branch, together with the terms of business (ToB v1.0 (CN); and 

  

	(iii)	the executed share purchase and loan assignment agreement dated [—], 2011 made between the Seller as seller and the Buyer. 

The documents listed in items (i) through (iii) above are herein sometimes collectively referred to as the “Documents” (which term does not
include any other instrument or agreement whether or not specifically referred to therein or attached as an exhibit or schedule thereto). 

 We have also reviewed the memorandum of association and the bye-laws of the Company, each certified by the
director of the Company on [—], 2011, [minutes of a meeting/written resolutions of its directors of the Company held on/dated [—], 2011 (the
“Resolutions”), and such other documents and made such enquiries as to questions of law as we have deemed necessary in order to render the opinion set forth below. 

We have assumed (a) the genuineness and authenticity of all signatures and the conformity to the originals of all copies (whether or not certified) examined
by us and the authenticity and completeness of the originals from which such copies were taken; (b) that where a document has been examined by us in draft form, it will be or has been executed in the form of that draft, and where a number of drafts
of a document have been examined by us all changes thereto have been marked or otherwise drawn to our attention; (c) the capacity, power and authority of each of the parties to the Documents, other than the Company, to enter into and perform its
respective obligations under the Documents; (d) the due execution and delivery of the Documents by each of the parties thereto, other than the Company, and the physical delivery thereof by the Company with an intention to be bound thereby; (e) the
accuracy and completeness of all factual representations made in the Documents and other documents reviewed by us except to the extent that we expressly opine herein on matters of Bermuda law; (f) that the Resolutions were passed at one or more duly
convened, constituted and quorate meetings or by unanimous written resolutions, remain in full force and effect and have not been rescinded or amended; (g) that the Company is entering into the Documents pursuant to its business of investment
holding; (h) that there is no provision of the law of any jurisdiction, other than Bermuda, which would have any implication in relation to the opinions expressed herein; (i) the validity and binding effect under the laws of The Hong Kong Special
Administrative Region of The People’s Republic of China (“Hong Kong”) (the “Foreign Laws”) of the Guarantee which is expressed to be governed by such Foreign Laws in accordance with its terms; (j) the validity
and binding effect under the Foreign Laws of the submission by the Company pursuant to the Guarantee to the jurisdiction of the courts of Hong Kong (the “Foreign Courts”); (k) that none of the parties to the Documents carries on
business from premises in Bermuda, at which it employs staff and pays salaries and other expenses; and (l) that on the date of entering into the Documents the Company is and after entering into the Documents will be able to pay its liabilities as
they become due. 

  
 Page 2 of 6 

 The obligations of the Company under the Documents (a) will be subject to the laws from time to time in
effect relating to bankruptcy, insolvency, liquidation, possessory liens, rights of set off, reorganisation, amalgamation, moratorium or any other laws or legal procedures, whether of a similar nature or otherwise, generally affecting the rights of
creditors as well as applicable international sanctions; (b) will be subject to statutory limitation of the time within which proceedings may be brought; (c) will be subject to general principles of equity and, as such, specific
performance and injunctive relief, being equitable remedies, may not be available; (d) may not be given effect to by a Bermuda court, whether or not it was applying the Foreign Laws, if and to the extent they constitute the payment of an amount
which is in the nature of a penalty and not in the nature of liquidated damages; (e) may not be given effect by a Bermuda court to the extent that they are to be performed in a jurisdiction outside Bermuda and such performance would be illegal
under the laws of that jurisdiction. Notwithstanding any contractual submission to the jurisdiction of specific courts, a Bermuda court has inherent discretion to stay or allow proceedings in the Bermuda courts. 

We express no opinion as to the enforceability of any provision of the Documents which provides for the payment of a specified rate of interest on the amount
of a judgment after the date of judgment, which purports to fetter the statutory powers of the Company or which purposes to grant exclusive jurisdiction to any courts. 

We have made no investigation of and express no opinion in relation to the laws of any jurisdiction other than Bermuda. This opinion is to be governed by and
construed in accordance with the laws of Bermuda and is limited to and is given on the basis of the current law and practice in Bermuda. This opinion is issued solely for your benefit and use in connection with the matter described herein and is not
to be relied upon by any other person, firm or entity or in respect of any other matter. 
 On the basis of and subject to the foregoing, we are of the
opinion that: 
  

	1.	The Company is duly incorporated and existing under the laws of Bermuda. 

  

	2.	The Company has the necessary corporate power and authority to enter into and perform its obligations under the Guarantee. The execution and delivery of the Guarantee by the Company and the performance by the Company of
its obligations thereunder will not violate the memorandum of association or bye-laws of the Company nor any applicable law, regulation, order or decree in Bermuda. 

 

	3.	The Company has taken all corporate action required to authorise its execution, delivery and performance of the Guarantee. The Guarantee has been duly executed and delivered by or on behalf of the Company, and
constitutes the valid and binding obligations of the Company in accordance with the terms thereof. 

  
 Page 3 of 6 

	4.	No order, consent, approval, licence, authorisation or validation of or exemption by any government or public body or authority of Bermuda or any sub-division thereof is required to authorise or is required in
connection with the execution, delivery, performance and enforcement of the Guarantee, except such as have been duly obtained in accordance with Bermuda law. 

  

	5.	It is not necessary or desirable to ensure the enforceability in Bermuda of the Guarantee that it be registered in any register kept by, or filed with, any governmental authority or regulatory body in Bermuda. However,
to the extent that the Guarantee creates a charge over assets of the Company, it may be desirable to ensure the priority in Bermuda of the charge that it be registered in the Register of Charges in accordance with Section 55 of the Companies
Act 1981. On registration, to the extent that Bermuda law governs the priority of a charge, such charge will have priority in Bermuda over any unregistered charges, and over any subsequently registered charges, in respect of the assets which are the
subject of the charge. A registration fee of $557 will be payable in respect of the registration. 

 While there is no
exhaustive definition of a charge under Bermuda law, a charge includes any interest created in property by way of security (including any mortgage, assignment, pledge, lien or hypothecation). As the Guarantee is governed by the Foreign Laws, the
question of whether it creates such an interest in property would be determined under the Foreign Laws. 
  

	6.	The Guarantee will not be subject to ad valorem stamp duty in Bermuda. 

  

	7.	The choice of the Foreign Laws as the governing law of the Guarantee is a valid choice of law and would be recognised and given effect to in any action brought before a court of competent jurisdiction in Bermuda, except
for those laws (i) which such court considers to be procedural in nature, (ii) which are revenue or penal laws or (iii) the application of which would be inconsistent with public policy, as such term is interpreted under the laws of
Bermuda. The submission in the Guarantee to the jurisdiction of the Foreign Courts is valid and binding upon the Company. 

  

	8.	The courts of Bermuda would recognise as a valid judgment, a final and conclusive judgment in personam obtained in the Foreign Courts against the Company based upon the Guarantee under which a sum of money is
payable (other than a sum of money payable in respect of multiple damages, taxes or other charges of a like nature or in respect of a fine or other penalty) and would give a judgment based thereon provided that (a) such courts had proper
jurisdiction over the parties subject to such judgment; (b) such courts did not contravene the rules of natural justice of Bermuda; (c) such judgment was not obtained by fraud; (d) the enforcement of the judgment would not be contrary to
the public policy of Bermuda; (e) no new admissible evidence relevant to the action is submitted prior to the rendering of the judgment by the courts of Bermuda; and (f) there is due compliance with the correct procedures under the laws of
Bermuda. 

  
 Page 4 of 6 

	9.	Based solely upon a search of the Cause Book of the Supreme Court of Bermuda conducted at [10:50] a.m. on [21 April], 2011 (which would not reveal details of proceedings which have been filed but not actually entered in
the Cause Book at the time of our search), there are no judgments against the Company, nor any legal or governmental proceedings pending in Bermuda to which the Company is subject. 

 

	10.	Based solely on a search of the public records in respect of the Company maintained at the offices of the Registrar of Companies at [11:12] a.m. on [21 April], 2011 (which would not reveal details of matters which have
not been lodged for registration or have been lodged for registration but not actually registered at the time of our search) and a search of the Cause Book of the Supreme Court of Bermuda conducted at [10:50] a.m. on [21 April], 2011 (which would
not reveal details of proceedings which have been filed but not actually entered in the Cause Book at the time of our search), no details have been lodged of any steps taken in Bermuda for the appointment of a receiver or liquidator to, or for the
winding-up, dissolution, reconstruction or reorganisation of, the Company, though it should be noted that the public files maintained by the Registrar of Companies do not reveal whether a winding-up petition or application to the Court for the
appointment of a receiver has been presented and entries in the Cause Book may not specify the nature of the relevant proceedings. 

  

	11.	The Buyer will not be deemed to be resident, domiciled or carrying on business in Bermuda by reason only of the execution, performance and/or enforcement of the Guarantee by the Buyer. 

 

	12.	The Buyer has standing to bring an action or proceedings before the appropriate courts in Bermuda for the enforcement of the Guarantee. It is not necessary or advisable in order for the Buyer to enforce its rights under
the Guarantee, including the exercise of remedies thereunder, that it be licensed, qualified or otherwise entitled to carry on business in Bermuda. 

  

	13.	The Company is not entitled to any immunity under the laws of Bermuda, whether characterised as sovereign immunity or otherwise, from any legal proceedings to enforce the Guarantee in respect of itself or its property.

  
 Page 5 of 6 

	
	Yours faithfully,
	
	Conyers Dill & Pearman

  
 Page 6 of 6 

 EXHIBIT E 

FORM OF LEGAL OPINION FROM SELLER’S HONG KONG COUNSEL 

  
 Exhibit E 

 [On the letterhead of KL Gates] 

CZ Tire Holdings Limited 
 c/o CITIC PE Advisors (Hong Kong)
Limited 
 Suite 606, 6/F, One Pacific Place 
 88 Queensway 

Hong Kong 
 Dear Sirs, 

 

					
	Re:	  	China Tire Enterprises Limited -	  	
		  	 Sale and purchase of the entire issued share capital of China Tire Enterprises Limited
	  	

 We have acted as legal advisers to China Enterprises Limited (the “Company”) as to the laws of the Hong Kong
Special Administrative Region of the People’s Republic of China (“Hong Kong”) in connection with the sale and purchase of the entire issued share capital of China Tire Enterprises Limited (“China Tire”)
pursuant to the Share Purchase and Loan Assignment Agreement (as defined below). 
 For the purposes of rendering this opinion, we have only examined the
following documents (The documents listed in items (a) to (c) collectively referred to as the “Documents”): 
  

	(a)	a copy of the share purchase and loan assignment agreement dated [*] entered into between the Company as seller and CZ Tire Holdings Limited as buyer in relation to the sale and purchase of the entire issued share
capital of and shareholder’s loan due and owing by China Tire Enterprises Limited (the “Share Purchase and Loan Assignment Agreement”); 

  

	(b)	a copy of the deed of guarantee dated [*] issued by Hanny Holdings Limited as guarantor, in respect of all obligations of the Company under the Share Purchase and Loan Assignment Agreement and the Tax Service Agreement
(the “Deed of Guarantee”). 

 On [*], we carried out search of China Tire at the Hong Kong Companies Registry (the
“Company Search”). 

 We have also carried out and relied on the winding-up searches conducted at the Official Receiver’s office
of Hong Kong against Chine Tire on [*] (the “Official Receiver Search”). It is, however, possible that matters which should be revealed by such searches are not yet revealed. For example, it is possible that a winding up order or
appointment of a receiver may have been made, or a winding-up petition may have been issued, without notice thereof having yet been filed. 
 On [*], we
have conducted a search of the records of the Registry of the High Court of Hong Kong against China Tire (the “High Court Search”). 
 We
have not carried out any other searches or enquiries. 
 The opinion given in this letter relates only to Hong Kong law as applied by the Hong Kong courts
as of the date of this letter. We express no opinion on the laws of any other jurisdiction. 
 The opinion given in this letter is given on the basis of the
assumptions set out in the schedule to this letter. The opinions given in this letter are strictly limited to the matters stated in paragraphs 1 to 3 below and do not extend to any other matters. 

Based upon and subject to the foregoing and the assumptions and reservations listed in the schedule hereto, we are of the opinion that: 

 

	1.	China Tire has been duly incorporated with limited liability and registered as company limited by shares under the Companies Ordinance (Chapter 32) in Hong Kong. In addition, we note that: 

 

	 	(i)	the Company Search revealed no orders or resolutions for the winding up of China Tire and no notices of appointment in respect of China Tire of a liquidator or receiver; and 

 

	 	(ii)	the Official Receiver Search revealed that no petitions for the winding up of China Tire have been presented; 

  

	2.	the choice of Hong Kong law as the governing law of each Document expressed to be governed by Hong Kong law is a valid choice of law and would be recognised and given effect to in any action brought before a court of
competent jurisdiction in Hong Kong except where the choice of laws involves laws which the Hong Kong court considers to be procedural in nature; 

  

	3.	save as set out in the results of the High Court Search, we are not aware of any actions, suits or proceedings before the High Court of Hong Kong against China Tire as at the date of the High Court. 

  
 Page 2 

 This opinion is addressed only to you, solely for your benefit. It is not to be transmitted to any other person,
nor is it to be relied upon by any other person, firm or entity or for any other purpose without our prior written consent. 
 Yours faithfully, 

K&L GATES 

  
 Page 3 

 SCHEDULE 1 

Assumptions 
 In giving this opinion we
have made the following assumptions: 
  

	1.	DOCUMENTATION AND PARTIES 

  

	 	(a)	All signatures, stamps and seals are genuine, all original documents are authentic and all copy documents are complete and conform to the originals. 

 

	 	(b)	Each party to the Documents has the capacity, power and authority to enter into and to exercise its rights and to perform its obligations under the Documents to which it is a party. 

 

	 	(c)	Each party to the Documents has duly executed and delivered the Documents. 

  

	 	(e)	The results of the searches conducted as set out in this letter shall remain unchanged. 

  

	 	(f)	The obligations of the Company under the Documents will be subject to any laws from time to time in effect relating to bankruptcy or liquidation or any other laws or other legal procedures affecting generally the
enforcement of creditors’ rights and may also be the subject of a statutory limitation of the time within which proceedings may be brought. 

  

	2.	OTHER DOCUMENTS 

 There is no other agreement, instrument or other arrangement between
any of the parties to any of the Documents which modifies or supersedes any of the Documents. 
  

	3.	MISCELLANEOUS 

  

	 	(a)	The term “enforceable” as used in this letter means that the obligation is of a type and form which a court of Hong Kong enforces. It is not to be taken as meaning or implying that the obligation can
necessarily be enforced in accordance with its terms in all circumstances by or against a particular party or that any particular remedy will be available. 

  
 Page 4 

	 	(b)	We assume that no foreign law affects the conclusions stated above. We assume, in particular, that: 

  

	 	(i)	so far as the laws of Bermuda are concerned, the Documents constitute legally binding, valid and enforceable obligation of the Company. In this regard we have relied on the legal opinion provided by Conyers Dill and
Pearman dated [—]; and 

  
 Page 5 

 SCHEDULE 2 

Reservations 
 The opinions in this letter
are subject to the following reservations: 
  

	1.	ENFORCEMENT OF ENGLISH JUDGMENTS BY HONG KONG COURTS 

 As there is a lack of enforcement
facilities in England for judgments from Hong Kong, the relevant legislation in Hong Kong, namely, the Judgments (Facilities for Enforcement) Ordinance (Chapter 9 of the Laws of Hong Kong) (the “Relevant Ordinance”) has in turn
ceased to apply to judgments granted by the English courts by virtue of the failure to satisfy the reciprocity requirement of section 2(A)(2)(b) of the Interpretation and General Clauses Ordinance (Chapter 1 of the Laws of Hong Kong). In a press
notice issued by the Lord Chancellor’s Department of the United Kingdom on 10 November 1997, it was stated that: 
 “From
1 July 1997 judgments from the courts of the Hong Kong Special Administrative Region (HKSAR) of the People’s Republic of China brought to the United Kingdom for enforcement are being enforced pursuant to the principles established under
common law. 
  
 ... 

Following this development United Kingdom judgments were no longer enforceable in the HKSAR under the Judgments (Facilities for Enforcement)
Ordinance. A judgment creditor of a UK judgment seeking to enforce a UK judgment in the HKSAR should now do so by suing on the judgment itself under the common law, which continues to be practised in Hong Kong. The HKSAR also has its own Order 14
procedure, similar to that in this country.” 
 It should be noted that the press notice does not have the force of law nor is the Lord
Chancellor’s Department empowered to interpret the law of Hong Kong. However, even if the provisions of the Relevant Ordinance are no longer effective, a judgment obtained in England may still be enforced by suing on the judgment itself under
the common law in the Hong Kong courts so long as: 
  

	 	(a)	such English judgment is not in breach of the provisions of the Foreign Judgments (Restriction on Recognition and Enforcement) Ordinance (Chapter 46 of the Laws of Hong Kong); 

 

	 	(b)	such English judgment is for a definite sum of money other than a sum payable in respect of taxes or penalties; 

  

	 	(c)	such English judgment is final and conclusive; 

  

	 	(d)	the defendant in the English proceedings was resident, present or (if corporate) carrying on business in England or submitted or agreed to submit to the jurisdiction of the English courts; 

  
 Page 6 

	 	(e)	such English judgment was not obtained by fraud or obtained in proceedings which were contrary to natural justice; and 

  

	 	(f)	such English judgment is not contrary to public policy in Hong Kong. 

  

	2.	APPLICATION OF FOREIGN LAW 

  

	 	(a)	It is uncertain whether the parties can agree in advance the governing law of claims connected with the contract but which are not claims arising out of the contract, such as a claim in tort. 

 

	 	(b)	A Hong Kong court may not apply English law if such law is not pleaded and proved or if to do so would be contrary to public policy or mandatory rules of Hong Kong law. 

 

	 	(c)	The Hong Kong courts may dismiss proceedings, or decline to allow proceedings to continue before them, on the basis of lack of jurisdiction, the forum non convenient doctrine and/or other principles of conflict of laws.

  

	 	(d)	For a choice of law to be bona fide it must be genuine, not capricious and not a mere pretence; however, as regards the legality of the choice of law, the general principle is that Hong Kong law will not apply to a
contract expressly subject to some other system of law unless the provisions of the contract are in breach of an overriding Hong Kong statue (i.e. one which must be applied regardless of the normal rules of conflict of laws). 

 

	3.	OTHER LIMITATIONS 

  

	 	(a)	There is some possibility that a Hong Kong court would hold that a judgment on any Document, whether given in an English or Hong Kong court or elsewhere, would supersede that Document so that any obligations relating to
the payment of interest after judgment or any currency indemnities would not be held to survive judgment. 

  

	 	(b)	A Hong Kong court may in its discretion decline to give effect to any indemnity for legal costs incurred by an unsuccessful litigant. 

 

	 	(c)	The obligations of the parties to the Documents may be limited by bankruptcy, insolvency, liquidation, moratorium, compromise, arrangement, reorganisation, reconstruction or similar laws of general application affecting
creditors’ rights and by limitation of action by the effluxion of time. 

  

	 	(d)	A search at the Hong Kong Companies Registry is not capable of revealing conclusively whether or not a winding up petition has been presented and/or a notice of a winding up order made or resolution passed or a receiver
appointed or an administration order made since notice of winding-up or administration order made or winding-up resolution passed or notice of appointment of receiver may not be filed at the Hong Kong Companies Registry immediately.

  
 Page 7 

	4.	REUNIFICATION OF HONG KONG WITH THE PRC 

 We would also observe without limitation that:

  

	 	(a)	Hong Kong became a special administration region of the People’s Republic of China (“HKSAR”) at midnight on 30 June 1997. The laws of Hong Kong in force at 30 June 1997 will be applied in
HKSAR only insofar as they are not declared by the courts in Hong Kong or by the Standing Committee of the National People’s Congress (the “Standing Committee”) to contravene the Basic Law of the HKSAR (the “Basic
Law”). Whilst the Basic Law does not appear to us to contain any provision which would be contravened by any rule of Hong Kong law which is relevant to the opinions expressed herein, this is a matter for determination by the Hong Kong
courts and, ultimately, by the Standing Committee and we cannot comment upon or predict how they will act. In addition, there is the possibility that the validity of the Provisional Legislature of the HKSAR and all laws passed following the
appointment of the Provisional Legislature of the HKSAR on 1 July 1997 may be challenged in the courts of Hong Kong. We cannot comment upon or predict how the courts of Hong Kong will view such a challenge or the effect that a successful
challenge would have on the Provisional Legislature of the HKSAR and the laws passed by that body; and 

  

	 	(b)	on 23 February 1997, the Standing Committee adopted a decision (the “Decision”) on the treatment of laws previously enforced in Hong Kong. Under paragraph 1 of the Decision, the Standing Committee
decided (as translated by us) that “the laws previously in force in Hong Kong, which include the common law, rules of equity, ordinances, subsidiary legislation and customary law, except for those which contravene the Basic Law, are to be
adopted as the laws of the HKSAR”. Under paragraph 2 of the Decision, the Standing Committee decided that the ordinances and subsidiary legislation set out in Annex 1 to the Decision “which are in contravention of the Basic Law” are
not to be adopted as the laws of the HKSAR. One of the ordinances set out in that Annex is the Application of English Law Ordinance (Cap. 88) (the “English Law Ordinance”). The English Law Ordinance applied the common law and rules
of equity of England to Hong Kong. We have assumed that (although this is a matter of interpretation by the courts of the HKSAR and ultimately by the Standing Committee) the effect of paragraph 2 of the Decision, insofar as it relates to the English
Law Ordinance, is to repeal the English Law Ordinance prospectively and that the common law and rules of equity of England which applied in Hong Kong on 30 June 1997 continue to apply, subject to their subsequent independent development which will
rest primarily with the courts of the HKSAR which are empowered by the Basic Law to refer to precedents of other common law jurisdictions when adjudicating cases. 

  
 Page 8 

 EXHIBIT F 

FORM OF CLOSING CERTIFICATE 

[                          
              ] 

            , 2011 

Ladies and Gentlemen, 
 Reference is hereby made
to the Share Purchase and Loan Assignment Agreement dated [            ], 2011 (the “Share Purchase and Loan Assignment Agreement”) between you and us. Capitalized terms
used herein but not defined shall have the meaning ascribed to them in the Share Purchase and Loan Assignment Agreement. 
 The undersigned
hereby certifies that: 
  

	 	1.	The representations and warranties of Seller contained or referred to in each Transaction Document to which it is a party are true and correct on the date hereof as though made at the date hereof unless otherwise stated
therein. 

  

	 	2.	Seller has performed all agreements and obligations contained in the Transaction Documents to which it is a party which are required to be performed on or before the date hereof. 

 

									
		 	  
	 		 	  
	 	
		 	Director	 		 	Director	 	

  
 Exhibit G 

 EXHIBIT G 

FORM OF CORPORATE GUARANTEE 

  
 Exhibit G 

 DEED OF GUARANTEE 

[            ], 2011 

CZ Tire Holdings Limited 
 c/o CITIC PE Advisors (Hong Kong)
Limited 
 Suite 606, 6/F, One Pacific Place 
 88 Queensway 

Hong Kong 
 Fax: 852-3798 0096 

Dear Sirs, 
 This Deed of Guarantee (this
“Guarantee”) is entered into by us as a deed for the benefit of CZ Tire Holdings Limited (“Buyer”) in connection with (i) the Share Purchase and Loan Assignment Agreement dated
[            ], 2011 between Buyer and China Enterprises Limited (‘“Seller”) and (ii) the Tax Service Agreement dated
[            ], 2011 among Buyer, Seller and PricewaterhouseCoopers Consultants (Shenzhen) Limited - Beijing Branch (together, the “Guaranteed Documents”). 

 

	1.	Guarantee. In consideration of Buyer agreeing to enter into the Guaranteed Documents, we, Hanny Holdings Limited, a company organized under the laws of Bermuda and an indirect holder of 28.95% of the
outstanding capital stock of Seller (the “Guarantor”) hereby unconditionally and irrevocably guarantee to Buyer as primary obligor and not merely as surety the due and punctual payment by Seller of all its obligations and
indemnities under or pursuant to the Guaranteed Documents (the “Obligations”). The liability of the Guarantor as aforesaid shall not be released or diminished by any arrangements or alterations of the terms of any Guaranteed
Document or any forbearance, neglect or delay in seeking performance of the obligations hereby imposed or any granting of time for such performance. 

  

	2.	Indemnity. Without prejudice to the guarantee contained in paragraph 1, the Guarantor unconditionally and irrevocably undertakes, as a separate, additional and continuing obligation, to indemnify
Buyer on demand against all losses, liabilities, damages, costs and expenses whatsoever arising out of any failure by Seller to duly and punctually perform and observe any of its Obligations under the Guaranteed Documents. This indemnity shall
remain in effect notwithstanding that the guarantee under paragraph 1 may cease to be valid or enforceable against the Guarantor for any reason whatsoever. 

  

	3.	Demands. Demands may be made by Buyer under this Guarantee from time to time and may be enforced irrespective of whether any steps or proceedings are or will be taken against Seller or any other
person to recover any loss, liability, damage, cost or expense claimed under this Guarantee. Demands shall be made in writing and left or sent by post or facsimile to the Guarantor’s address or facsimile number given herein or such other
address or facsimile number as it notifies in writing to Buyer. 

  

					
	Address:	 	25/F, Paul Y. Centre	  	
		 	51 Hung To Road	  	
		 	Kwun Tong	  	
		 	Kowloon, Hong Kong	  	
		
	Fax: 852-2810 6982	  	
		
	Attention: Board of Directors	  	

  
 1 

	4.	Enforcement. The Guarantor hereby undertakes to indemnify Buyer forthwith upon demand against all costs, charges and expenses (including legal fees on a full indemnity basis and all other out of
pocket expenses) incurred in relation to or arising out of the enforcement or attempted enforcement of this Guarantee and/or any default or breach on the part of the Guarantor under this Guarantee. 

 

	5.	Payments. All sums payable by the Guarantor hereunder shall be paid in full in United States dollars to such account of Buyer as Buyer may advise the Guarantor without set-off, counterclaim or any
restriction or condition or any deduction for or on account of any present or future taxes, duties or other charges or withholdings. 

  

	6.	Continuing Security. This Guarantee is a continuing guarantee and shall continue to remain valid and effective until all Obligations of Seller have been fully performed in accordance with the
Guaranteed Documents. This Guarantee is in addition to, and independent of, any other guarantee or security or other remedy now or at any time hereafter held by Buyer. 

 

	7.	Claims against Seller. The Guarantor waives all rights of subrogation, indemnity and contribution against Seller and agrees not to claim any set-off or counterclaim against Seller or to claim or
prove in competition with Buyer in the liquidation or bankruptcy of any of the same or to have the benefit of any share in any other guarantee or security now or hereafter held by Buyer until Buyer has received all monies, obligations and
liabilities actual or contingent now or hereafter due, owing or incurred to it from or by Seller under the Guaranteed Documents. The Guarantor has not taken any security from Seller in respect of its liability under this Guarantee and agrees not to
do so until Buyer receives all monies payable to it under this Guarantee. Any security taken by the Guarantor in breach of this provision and all monies received pursuant thereto shall be held on trust for Buyer as security for the liability of the
Guarantor hereunder. 

  

	8.	Liability Unconditional. The liabilities of the Guarantor under this Guarantee shall not be affected or discharged by: 

 

	 	(a)	the granting of any time or indulgence to Seller or any other person or any act or omission of Buyer or any other person which, but for this provision, would or might discharge the Guarantor; 

 

	 	(b)	the amendment of any of the terms or conditions of any Guaranteed Document; 

  
 2 

	 	(c)	the insolvency or liquidation or any incapacity, disability or limitation, or any change in the constitution, ownership or status of, Seller or the Guarantor or any other person; or 

 

	 	(d)	any other guarantee or other security being held by or available to Buyer or any right or remedy of Buyer against Seller or any other person being or becoming void, voidable or unenforceable or by Buyer at any time
exercising, enforcing, releasing or waiving (or refraining from exercising, enforcing, releasing or waiving) any of the same or any power, right or remedy Buyer may now or hereafter have from or against Seller or any other person. 

 

	9.	Representations and Warranties. The Guarantor hereby represents and warrants as follows: 

  

	 	(a)	it is a company duly incorporated with limited liability and validly existing under the laws of Bermuda; 

  

	 	(b)	it has full power, authority and legal right to enter into and engage in the transactions contemplated by this Guarantee and has taken or obtained all necessary corporate and other action to authorize the execution and
performance of this Guarantee; 

  

	 	(c)	this Guarantee constitutes its legal, valid and binding obligations; 

  

	 	(d)	neither the execution of this Guarantee nor the performance by the Guarantor of any of its obligations or the exercise of any of its rights hereunder conflicts with or results in a breach of any law, regulation,
judgment, order, agreement or obligation applicable to it or exceeds any limitation placed on it or the powers of its directors or results in the creation of or obliges the Guarantor to create a security in respect of any of its properties; and

  

	 	(e)	all authorizations required from any governmental or other authority or from any shareholders or creditors of the Guarantor for or in connection with the execution, validity and performance of this Guarantee have been
obtained and are in full force and effect. 

  

	10.	Currency and Other Indemnities. No payment to Buyer shall discharge the Guarantor unless it is received in full in the currency in which it is payable. If any such payment is received in a different
currency, Buyer shall have a separate cause of action against the Guarantor for the amount of the shortfall following actual conversion of such payment into the currency in which the liability is payable. 

 

	11.	No Waiver. No failure or delay by Buyer in exercising any power, right or remedy hereunder shall impair any of the same or operate as a waiver thereof. 

 

	12.	Severability. If at any time any provision of this Guarantee is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, the legality, validity and
enforceability of such provision under the law of any other jurisdiction and the legality, validity and enforceability of the remaining provisions of this Guarantee, shall not be affected or impaired thereby. 

  
 3 

	13.	Successors and Assigns. The expressions “Guarantor”, “Seller” and “Buyer” shall where the context permits include their respective successors and
permitted assigns and any persons deriving title under them. 

  

	14.	Counterparts. This Guarantee may be executed in any number of counterparts each of which, when executed and delivered, shall constitute an original but all the counterparts shall together constitute the
same document. 

  

	15.	Limitations on Liabilities. Notwithstanding anything contrary contained herein, the Guarantor’s liability under this Guarantee shall be limited to the lower of (i) 28.95% of all the claims,
losses, damages, costs and expenses arising from or in connection with the Obligations and (ii) 4.9% of the average closing price of the Guarantor’s shares as quoted on The Stock Exchange of Hong Kong Limited for the five consecutive
trading days immediately preceding the date hereof multiplied by all the issued shares of the Guarantor as at the date hereof (the “Market Capitalisation”). The maximum amount of all claims made pursuant to and all
liabilities of the Guarantor under this Deed (whether by way of indemnity or costs or otherwise) shall not exceed 4.9% of the Market Capitalisation. 

  

	16.	Law and Jurisdiction. This Guarantee and the rights and obligations of the parties hereunder shall be governed by and construed in accordance with the laws of Hong Kong. Any claim, dispute or matter
arising under, out of or in connection with this Guarantee shall be subject to the exclusive jurisdiction of the Hong Kong courts. The Guarantor hereby irrevocably submits to the exclusive jurisdiction of the Hong Kong courts. The Guarantor hereby
irrevocably consents to any process in any proceedings anywhere being serviced by mailing a copy by registered airmail post to it. Nothing herein shall affect Buyer’s right to serve process in any other manner permitted by applicable law.

  
 4 

 IN WITNESS whereof this Deed of Guarantee was executed and is intended to be and is hereby delivered on
the day and year first above written. 
  

							
	SIGNED, SEALED AND	 		 	)	  	
	DELIVERED BY	 		 	)	  	
		 		 	)	  	
		 		 	)	  	
		 		 	)	  	
	  
	 		 	)	  	
	in the presence of	 		 	)	  	

 The terms and conditions of this Guarantee are hereby confirmed and accepted. 

 

	
	  

	CZ Tire Holdings Limited

  
 5 

 EXHIBIT H 

FORM OF PERSONAL GUARANTEE 

  
 Exhibit H 

 DEED OF GUARANTEE 

[            ], 2011 

CZ Tire Holdings Limited 
 c/o CITIC PE Advisors (Hong Kong)
Limited 
 Suite 606, 6/F, One Pacific Place 
 88 Queensway 

Hong Kong 
 Fax: 852-3798 0096 

Dear Sirs, 
 This Deed of Guarantee (this
“Guarantee”) is entered into by me as a deed for the benefit of CZ Tire Holdings Limited (“Buyer”) in connection with (i) the Share Purchase and Loan Assignment Agreement dated
[            ], 2011 between Buyer and China Enterprises Limited (“Seller”) and (ii) the Tax Service Agreement dated
[            ], 2011 among Buyer, Seller and PricewaterhouseCoopers Consultants (Shenzhen) Limited - Beijing Branch (together, the “Guaranteed Documents”). 

 

	1.	Guarantee. In consideration of Buyer agreeing to enter into the Guaranteed Documents, I, Allan Yap, holder of Canadian passport numbered [—] (the
“Guarantor”) hereby unconditionally and irrevocably guarantee to Buyer as primary obligor and not merely as surety the due and punctual payment by Seller of all its obligations and indemnities under or pursuant to the Guaranteed
Documents (the “Obligations”). The liability of the Guarantor as aforesaid shall not be released or diminished by any arrangements or alterations of the terms of any Guaranteed Document or any forbearance, neglect or delay in
seeking performance of the obligations hereby imposed or any granting of time for such performance. 

  

	2.	Indemnity. Without prejudice to the guarantee contained in paragraph 1, the Guarantor unconditionally and irrevocably undertakes, as a separate, additional and continuing obligation, to indemnify Buyer on
demand against all losses, liabilities, damages, costs and expenses whatsoever arising out of any failure by Seller to duly and punctually perform and observe any of its Obligations under the Guaranteed Documents. This indemnity shall remain in
effect notwithstanding that the guarantee under paragraph 1 may cease to be valid or enforceable against the Guarantor for any reason whatsoever. 

  

	3.	Demands. Demands may be made by Buyer under this Guarantee from time to time and may be enforced irrespective of whether any steps or proceedings are or will be taken against Seller or any other person to
recover any loss, liability, damage, cost or expense claimed under this Guarantee. Demands shall be made in writing and left or sent by post or facsimile to the Guarantor’s address or facsimile number given herein or such other address or
facsimile number as it notifies in writing to Buyer. 

 Address: 25/F., Paul Y. Centre, 51 Hung To Road, Kwun Tong, Kowloon,
Hong Kong 
 Fax: 852-2810 6982 

Attention: Mr. Allan Yap 

  
 1 

	4.	Enforcement. The Guarantor hereby undertakes to indemnity Buyer forthwith upon demand against all costs, charges and expenses (including legal fees on a full indemnity basis and all other out of pocket
expenses) incurred in relation to or arising out of the enforcement or attempted enforcement of this Guarantee and/or any default or breach on the part of the Guarantor under this Guarantee. 

 

	5.	Payments. All sums payable by the Guarantor hereunder shall be paid in full in United States dollars to such account of Buyer as Buyer may advise the Guarantor without set-off, counterclaim or any
restriction or condition or any deduction for or on account of any present or future taxes, duties or other charges or withholdings. 

  

	6.	Continuing Security. This Guarantee is a continuing guarantee and shall continue to remain valid and effective until all Obligations of Seller have been fully performed in accordance with the Guaranteed
Documents. This Guarantee is in addition to, and independent of, any other guarantee or security or other remedy now or at any time hereafter held by Buyer. 

  

	7.	Claims against Seller. The Guarantor waives all rights of subrogation, indemnity and contribution against Seller and agrees not to claim any set-off or counterclaim against Seller or to claim or prove in
competition with Buyer in the liquidation or bankruptcy of any of the same or to have the benefit of any share in any other guarantee or security now or hereafter held by Buyer until Buyer has received all monies, obligations and liabilities actual
or contingent now or hereafter due, owing or incurred to it from or by Seller under the Guaranteed Documents. The Guarantor has not taken any security from Seller in respect of its liability under this Guarantee and agrees not to do so until Buyer
receives all monies payable to it under this Guarantee. Any security taken by the Guarantor in breach of this provision and all monies received pursuant thereto shall be held on trust for Buyer as security for the liability of the Guarantor
hereunder. 

  

	8.	Liability Unconditional. The liabilities of the Guarantor under this Guarantee shall not be affected or discharged by: 

 

	 	(a)	the granting of any time or indulgence to Seller or any other person or any act or omission of Buyer or any other person which, but for this provision, would or might discharge the Guarantor; 

 

	 	(b)	the amendment of any of the terms or conditions of any Guaranteed Document; 

  

	 	(c)	the insolvency or liquidation or any incapacity, disability or limitation, or any change in the constitution, ownership or status of, Seller or the Guarantor or any other person; or 

  
 2 

	 	(d)	any other guarantee or other security being held by or available to Buyer or any right or remedy of Buyer against Seller or any other person being or becoming void, voidable or unenforceable or by Buyer at any time
exercising, enforcing, releasing or waiving (or refraining from exercising, enforcing, releasing or waiving) any of the same or any power, right or remedy Buyer may now or hereafter have from or against Seller or any other person. 

 

	9.	Representations and Warranties. The Guarantor hereby represents and warrants as follows: 

  

	 	(a)	he has full power, authority and legal right to enter into and engage in the transactions contemplated by this Guarantee and has obtained all necessary consent to authorize the execution and performance of this
Guarantee; 

  

	 	(b)	this Guarantee constitutes his legal, valid and binding obligations; 

  

	 	(d)	neither the execution of this Guarantee nor the performance by the Guarantor of any of his obligations or the exercise of any of his rights hereunder conflicts with or results in a breach of any law, regulation,
judgment, order, agreement or obligation applicable to him or exceeds any limitation placed on him; and 

  

	 	(e)	all authorizations required from any governmental or other authority or from any shareholders or creditors of the Guarantor for or in connection with the execution, validity and performance of this Guarantee have been
obtained and are in full force and effect. 

  

	10.	Currency and Other Indemnities. No payment to Buyer shall discharge the Guarantor unless it is received in frill in the currency in which it is payable. If any such payment is received in a different
currency, Buyer shall have a separate cause of action against the Guarantor for the amount of the shortfall following actual conversion of such payment into the currency in which the liability is payable. 

 

	11.	No Waiver. No failure or delay by Buyer in exercising any power, right or remedy hereunder shall impair any of the same or operate as a waiver thereof. 

 

	12.	Severability. If at any time any provision of this Guarantee is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, the legality, validity and enforceability of
such provision under the law of any other jurisdiction and the legality, validity and enforceability of the remaining provisions of this Guarantee, shall not be affected or impaired thereby. 

 

	13.	Successors and Assigns. The expressions “Guarantor”, “Seller” and “Buyer” shall where the context permits include their respective successors and
permitted assigns and any persons deriving title under them. 

  

	14.	Counterparts. This Guarantee may be executed in any number of counterparts each of which, when executed and delivered, shall constitute an original but all the counterparts shall together constitute the
same document. 

  
 3 

	15.	Limitations on Liabilities. On the date hereof, a deed of guarantee is also executed by Hanny Holdings Limited in favour of Buyer (the “Corporate Guarantee”). Notwithstanding anything
contrary contained herein, the Guarantor’s liability under this Guarantee (save and except for any and all losses, liabilities, damages, costs and expenses whatsoever arising out of any failure by the Guarantor to duly and punctually perform
and observe any of its obligations hereunder) shall be limited to an amount calculated as follows: 

 L = RMB60,000,000 –H

 where 
 L refers to the
maximum amount of the Guarantor’s liability under this Guarantee (save and except for any and all losses, liabilities, damages, costs and expenses whatsoever arising out of any failure by the Guarantor to duly and punctually perform and observe
any of its obligations hereunder), and 
 H refers to the amount claimed and actually received by Buyer pursuant to the enforcement of the
Corporate Guarantee, disregarding any amount in connection with any losses, liabilities, damages, costs and expenses whatsoever arising out of any failure by Hanny Holdings Limited to duly and punctually perform and observe any of its obligations
thereunder. 
  

	16.	Stand-by Documentary Credit. The Guarantor hereby undertakes that (i) he will procure Hang Seng Bank Limited, Hong Kong to issue an irrevocable Stand-by Documentary Credit for an amount not less than
US$3,500,000 in favour of Buyer in substantially the form attached hereto as Appendix 1 (the “SBLC No. 1”) for the account of Winpro Investments Limited (“Winpro”, a limited liability company incorporated and
existing under the laws of the British Virgin Islands, the entire issued share capital of which is held legally and beneficially by the Guarantor), which shall take effect on the date hereof and shall continue to be valid until the first anniversary
hereof (the “Maturity Date”), and (ii) he will, no later than the fifteenth (15th) calendar days prior to the Maturity Date, procure Hang Seng Bank Limited, Hong Kong to
issue an irrevocable Stand-by Documentary Credit for an amount not less than US$3,500,000 in favour of Buyer in substantially the form attached hereto as Appendix 1 (the “SBLC No. 2”) for the account of Winpro, which shall take
effect on the Maturity Date and shall continue to be valid for a period of 12 consecutive months. Any monies received by Buyer under SBLC No. 1 or SBLC No.2, as the case may be, shall operate to automatically reduce the same amount payable by
the Guarantor hereunder. Buyer undertakes that it will notify the Guarantor in writing within ten (10) calendar days after it draws any amount under SBLC No. 1 or SBLC No.2, as the case may be. The Guarantor hereby agrees that if Hang Seng
Bank Limited, Hong Kong fails to issue the SBLC No. 2 pursuant to this paragraph 16 for whatever reason, Buyer shall have the right to draw for the then available balance of the SBLC No.1 and shall place and keep any monies received thereunder
to the credit of a suspense account to preserve the right of Buyer under this Guarantee, which, after deducting any and all amount payable by the Guarantor hereunder, shall be released to Winpro upon (i) the issuance of SBLC2, (ii) the
expiry of 24 months after the Closing Date (as defined in the Share Purchase and Loan Assignment Agreement dated [            ], 2011 between Buyer and Seller), whichever occurs earlier.

  
 4 

	17.	Law and Jurisdiction. This Guarantee and the rights and obligations of the parties hereunder shall be governed by and construed in accordance with the laws of Hong Kong. Any claim, dispute or matter
arising under, out of or in connection with this Guarantee shall be subject to the exclusive jurisdiction of the Hong Kong courts. The Guarantor hereby irrevocably submits to the exclusive jurisdiction of the Hong Kong courts. The Guarantor hereby
irrevocably consents to any process in any proceedings anywhere being serviced by mailing a copy by registered airmail post to it. Nothing herein shall affect Buyer’s right to serve process in any other manner permitted by applicable law.

  
 5 

 IN WITNESS whereof this Deed of Guarantee was executed and is intended to be and is hereby delivered on
the day and year first above written. 
  

							
	SIGNED, SEALED AND	 		 	)	  	
	DELIVERED BY ALLAN YAP	 		 	)	  	
		 		 	)	  	
	  
	 		 	 )
 )
	  	
	in the presence of	 		 	)	  	
		 		 	)	  	

 The terms and conditions of this Guarantee are hereby confirmed and accepted. 

 

	
	  

	CZ Tire Holdings Limited

  
 6 

 Appendix 1 

Form of Stand-by Documentary Credit 

STAND-BY DOCUMENTARY CREDIT 

BENEFICIARY’S (CLIENT) 

(NAME OF ADVISING BANK) 

(COUNTRY) 
 WE HEREBY ISSUE THIS
IRREVOCABLE STAND-BY DOCUMENTARY CREDIT NO.              IN FAVOUR OF CZ TIRE HOLDINGS LIMITED C/O CITIC PE ADVISORS (HONG KONG) LIMITED SUITE 606, 6/F, ONE PACIFIC PLACE. 88 QUEENSWAY.
HONG KONG FOR ACCOUNT OF WINPRO INVESTMENTS LIMITED (ADDRESS OF APPLICANT) TO THE EXTENT OF USD THREE MILLION FIVE HUNDRED THOUSAND AVAILABLE BY PAYMENT OF BENEFICIARY’S DRAFTS DRAWN IN DUPLICATE AT SIGHT ON US BEARING THE
CLAUSE “DRAWN UNDER HANG SENG BANK LIMITED, HONG KONG IRREVOCABLE STAND-BY DOCUMENTARY CREDIT NO.              DATED
                    ” ACCOMPANIED BY BENEFICIARY’S SIGNED STATEMENT CERTIFYING THAT “THE AMOUNT DRAWN HEREUNDER REPRESENTS AND COVERS
THE SAME AMOUNT PAYABLE BY MR. ALLAN YAP PURSUANT TO THE DEED OF GUARANTEE DATED                     .” 

THIS CREDIT EXPIRES ON                     
IN HONG KONG. 
 PARTIAL DRAWINGS ALLOWED/NOT ALLOWED. 

ALL BANKING CHARGES EXCEPT OUR L/C OPENING CHARGES ARE FOR ACCOUNT OF BENEFICIARY. 

UPON YOUR DRAWING ALL DOCUMENTS AND THE ORIGINAL INSTRUMENT OF THIS CREDIT MUST BE SENT TO US BY ONE COURIER UNDER AUTHENTICATED CABLE ADVICE
TO US QUOTING THE AMOUNT DRAWN AND THE NUMBER OF THIS CREDIT. 
 A USD70.00 (OR EQUIVALENT) DISCREPANCY FEE WILL BE DEDUCTED FOR EACH
PRESENTATION OF DISCREPANT DOCUMENTS. 
 IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 16 C III B OF UCP 600, IF WE GIVE NOTICE OF REFUSAL OF
DOCUMENTS PRESENTED UNDER THIS CREDIT WE SHALL HOWEVER RETAIN THE RIGHT TO ACCEPT A WAIVER OF DISCREPANCIES FROM THE APPLICANT AND, SUBJECT TO SUCH WAIVER BEING ACCEPTABLE TO US, TO RELEASE DOCUMENTS AGAINST THAT WAIVER WITHOUT REFERENCE TO THE
PRESENTER PROVIDED THAT NO WRITTEN INSTRUCTIONS TO THE CONTRARY HAVE BEEN RECEIVED BY US FROM THE PRESENTER BEFORE THE RELEASE OF THE DOCUMENTS. 

ANY SUCH RELEASE PRIOR TO RECEIPT OF CONTRARY INSTRUCTIONS SHALL NOT CONSTITUTE A FAILURE ON OUR PART TO HOLD THE DOCUMENTS AT THE
PRESENTER’S RISK AND DISPOSAL, AND WE WILL HAVE NO LIABILITY TO THE PRESENTER IN RESPECT OF ANY SUCH RELEASE. 
 AN ADDITIONAL FEE OF
USD35.00 OR EQUIVALENT PER MONTH WILL BE DEDUCTED FROM THE PROCEEDS IF THE DOCUMENTS REMAIN UNACCEPTED/UNPAID FOR MORE THAN 1 MONTH AFTER OUR RECEIPT. 

DOCUMENTS MUST BE PRESENTED TO AND REACH THE COUNTER OF HANG SENG BANK LIMITED, TRADE SERVICES, UNIT A, HANG SENG TOWER, TELFORD PLAZA, 33 WAI
YIP STREET, KOWLOON BAY, HONG KONG THROUGH PRESENTING BANK BY COURIER SERVICE AT BENEFICIARY’S EXPENSE IN ONE COVER. 
 EXCEPT SO FAR AS
OTHERWISE EXPRESSLY STATED, THIS DOCUMENTARY CREDIT IS SUBJECT TO UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (2007 REVISION), INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NO. 600. 

  
 1 

 SCHEDULE 1 

PARTICULARS OF COMPANY AND ZHONGCE 

The Company 
  

					
	Name	 	:	 	China Tire Enterprises Limited
			
	Place of Incorporation	 	:	 	Hong Kong
			
	Date of Incorporation	 	:	 	15 October 2010
			
	Company Number	 	:	 	1516015
			
	Authorized Share Capital	 	:	 	HK$10,000.00 divided into 10,000 ordinary shares of HK$1.00 each
			
	Issued Share Capital	 	:	 	HK$1.00
			
	Registered address	 	:	 	25/F., Paul Y. Centre, 51 Hung To Road, Kwun Tong, Kowloon, Hong Kong
			
	Shareholder	 	:	 	China Enterprises Limited (100%)
			
	Directors	 	:	 	Yap, Allan
		 		 	Chan Ling, Eva
			
	Direct investment	 	:	 	

		 		 	(Hangzhou Zhongce Rubber Company Limited)
			
	Indirect investment	 	:	 	Nil

  
 Schedule 1 - 1 

 Zhongce 
  

					
	Name	 	:	 	

		 		 	(Hangzhou Zhongce Rubber Company Limited)
			
	Place of Incorporation	 	:	 	Hangzhou, Zhejiang Province, PRC
			
	Date of Incorporation	 	:	 	12 June 1992
			
	Company Number	 	:	 	330100400029708
			
	Authorized Share Capital	 	:	 	RMB613,602,838
			
	Issued Share Capital	 	:	 	RMB613,602,838
			
	Registered address	 	:	 	

			
	Shareholders	 	:	 	

 (49%)
			
		 		 	

 (25%)
			
		 		 	China Tire Enterprises Limited (26%)
			
	Directors	 	:	 	  
 

	Direct subsidiary	 	:	 	  
 

	Indirect subsidiary	 	:	 	Nil

  
 Schedule 1 - 2 

 SCHEDULE 2.4 

CLOSING DELIVERIES 
 PART A

 Seller Documents 
  

	1.	Current memorandum and articles of association of Seller on the Closing Date. 

  

	2.	Registered agent’s or director’s certificate of Seller dated the Closing Date certifying, among other things, its current memorandum and articles of association and register of directors and officers.

  

	3.	Certificate of Incumbency of Seller dated no later than 7th Business Date prior to the Closing Date. 

 

	4.	A certified copy of the board resolution of Seller authorizing it to execute, deliver and perform each of the Transaction Documents to which it is a party and all other related documents required to be executed by it
for the completion of the Transactions, and approving the sale of the Sale Share and assignment of the Shareholder Loan to Buyer, and a certified copy of the board resolutions of Hanny Holdings Limited authorizing it to execute, deliver and perform
the Corporate Guarantee. 

  

	5.	The legal opinion from Seller’s Bermuda counsel dated the Closing Date and addressed to Buyer in substantially the form attached hereto as Exhibit D. 

 

	6.	The legal opinion from Seller’s Hong Kong counsel dated the Closing Date and addressed to Buyer, in substantially the form attached hereto as Exhibit E. 

 

	7.	Closing Certificate duly executed by Seller in the form of Exhibit F. 

  

	8.	Two originals of the Tax Service Agreement duly executed by Seller. 

  

	9.	An original of the Corporate Guarantee in substantially the form attached hereto as Exhibit G duly executed by Hanny Holdings Limited, and an original of the Personal Guarantee in substantially the form attached
hereto as Exhibit H duly executed by Mr. Allan Yap, both of which shall remain in full force and effect. 

  

	10.	An original of the Stand-by Documentary Credit issued by Hang Seng Bank Limited, Hong Kong in substantially the form attached to the Personal Guarantee as appendix. 

Company Documents 
  

	1.	A certified copy of the board resolution of the Company, among other things, (i) approving the transfer of the Sale Share and acknowledging the assignment of the Shareholder Loan to Buyer; (ii) authorizing the
issue of the new share certificate in respect of the Sale Share in the name of Buyer; (iii) approving the entry into its register of members the name of Buyer as the holder of the Sale Share and the making of such other entries into other
corporate records of the Company as may be necessary; (iv) accepting the resignation of all the existing directors of the Company and appointing Persons nominated by Buyer in writing at least one Business Day prior to the Closing Date as
directors of the Company, with effect from the Closing Date; (v) accepting the resignation of the existing secretary of the Company, (vi) approving the appointment of the Person nominated by Buyer in writing at least one Business Day prior
to the Closing Date as secretary of the Company, (vii) approving the appointment of the Person nominated by Buyer in writing at least one Business Day prior to the Closing Date as auditor of the Company, if requested by Buyer,
(viii) approving the change of the registered address of the Company to an address designated by Buyer and (ix) approving the closing and cancellation of all bank accounts of the Company. 

  
 Schedule 2.4 - 1 

	2.	Letters of resignation duly executed by all the existing directors and officers of the Company (which letters shall confirm that the relevant director or officer shall have no claim against the Company).

  

	3.	Letters of resignation duly executed by all the existing directors and officers of Zhongce appointed by Seller or the Company (which letters shall confirm that the relevant director or officer shall have no claim
against Zhongce). 

  

	4.	Letter of resignation duly executed by the existing secretary of the Company. 

  

	5.	Certificate of incorporation of the Company. 

  

	6.	Current memorandum and articles of association of the Company on the Closing Date. 

  

	7.	Updated register of members of the Company showing Buyer as the holder of the Sale Share and sole shareholder of the Company. 

  

	8.	Updated register of directors of the Company showing the Persons designated by Buyer have been appointed to the Board. 

  

	9.	All documents (including notices and board resolutions) required to be executed or provided by Seller for the appointment to the board of directors of Zhongce of Persons designated by Buyer (to the extent as the Company
is able to provide). 

  

	10.	Certified management accounts of the Company (including the profit and loss statement from the date of incorporation to the date falling two days prior to the Closing Date and the balance sheet dated such date).

  

	11.	Corporate seals, minute books and other statutory books (which shall be written up to the Closing Date), current business registration certificates and business licenses of the Company (if any) as well as financial,
accounting and other records of the Company that are expected to be maintained or kept by the Company under applicable law and all documents of title relating to the Company’s assets. 

Transfer Documents 
  

	1.	Duly executed bought and sold notes and duly executed instrument of transfer each in the form set forth in Exhibit C in respect of the Sale Share. 

 

	2.	Duly executed deed of assignment in the form set forth in Exhibit A in respect of the Shareholder Loan. 

  
 Schedule 2.4 - 2 

	3.	Original share certificate in respect of the Sale Share issued in the name of Buyer. 

  

	4.	Management accounts of the Company prepared in connection with the stamping of the Transfer Documents. 

PART B 
 Buyer Documents 

 

	1.	Current memorandum and articles of association of Buyer on the Closing Date. 

  

	2.	A certified copy of the board resolution of Buyer authorizing it to execute, deliver and perform each of the Transaction Documents to which it is a party and all other related documents required to be executed by it for
the completion of the Transactions, and approving the purchase of the Sale Share and acceptance of the Shareholder Loan by Buyer. 

  

	3.	Two originals of the Tax Service Agreement duly executed by Buyer. 

  

	4.	An original of the Corporate Guarantee in substantially the form attached hereto as Exhibit G, and an original of the Personal Guarantee in substantially the form attached hereto as Exhibit H.

  
 Schedule 2.4 - 3 

 SCHEDULE 3 

REPRESENTATIONS AND WARRANTIES OF SELLER 
  

	(a)	Status. Each of Seller and the Company is an entity duly incorporated and validly existing under the laws of the jurisdiction of its incorporation and has the power and right to own its assets and carry on its
business as being conducted. 

  

	(b)	Powers and Authority. Seller has the power to enter into and perform, and has taken all necessary action to authorize the entry into, performance and delivery of, the Transaction Documents to which it is a party
and the transactions contemplated thereunder. 

  

	(c)	Authorizations. 

  

	 	(i)	All authorizations and consents required in connection with the entry into or performance by Seller, and the validity and enforceability of, Seller’s obligations under the Transaction Documents to which it is a
party and the transactions contemplated thereunder have been obtained and are in full force and effect. 

  

	 	(ii)	All necessary licenses (including without limitation business licenses), permits (including without limitation construction permits), certificates (including without limitation qualification and ownership rights
certificates) and other Governmental Approvals to enable Seller to conduct its business and to own its assets have been obtained and are in full force. 

  

	(d)	Legal Validity. Each Transaction Document to which Seller is a party constitutes its legal, valid and binding obligations enforceable in accordance with its terms subject only to any limitation resulting from
laws of administration, liquidation, insolvency, reorganization or similar laws of general application affecting creditor’s rights and general principles of equity. 

 

	(e)	Immunity. 

  

	 	(i)	The execution by Seller of each Transaction Document to which it is a party constitutes, and its exercise of its rights and performance of its obligations under each Transaction Document will constitute, private and
commercial acts done and performed for private and commercial purposes. 

  

	 	(ii)	Seller will not be entitled to claim immunity from suit, execution, attachment or other legal process in any proceedings taken in any jurisdiction in relation to any Transaction Document. 

 

	(f)	Jurisdiction: Governing Law. Seller’s agreement that (i) this Agreement is governed by the laws of Hong Kong and (ii) not to claim any immunity to which it or its assets may be entitled, is legal,
valid and binding under the laws of its jurisdiction of incorporation. 

  
 Schedule 3 - 1 

	(g)	Non-Conflict. The entry into and performance by Seller of, and the transactions contemplated by, the Transaction Documents to which it is a party do not: 

 

	 	i.	conflict with any law or regulation or judicial or official order which is binding upon it or any of its assets; 

  

	 	ii.	conflict with its Organizational Documents; or 

  

	 	iii.	conflict with any agreement or document which is binding upon it or any of its assets. 

  

	(h)	Compliance with Laws. Each of Seller and the Company is in compliance with all applicable law in all material aspects (excluding any non-compliance by Seller so long as such non-compliance does not adversely
affect the transactions contemplated hereunder). 

  

	(i)	No Default. No event is outstanding which constitutes (or with the giving of notice, lapse of time, determination of materiality or the fulfillment of any other applicable condition or any combination of the
foregoing, might constitute) a default under any agreement or document which is binding on Seller or the Company or any of their respective assets (excluding any default by Seller so long as such default does not adversely affect the transactions
contemplated hereunder). 

  

	(j)	Litigation. Save and except for (i) the legal action instigated by

 against Seller in connection with the debts owed by

 to

, no litigation, arbitration or administrative proceedings affecting Seller or the Company are outstanding or threatened. 

  

	(k)	Sale Share. Seller is legal and beneficial owner of the Sale Shares. The total issued share capital of the Company consists of one ordinary share, which has been duly authorized and fully paid up, and is
non-assessable and free and clear of any Encumbrance. 

  

	(l)	Shareholder Loan. 

  

	 	(i)	Save for the Shareholder Loan to be assigned to Buyer, there is no amount owing to Seller by the Company or Zhongce or their Affiliates or their directors, shareholders or employees. 

 

	 	(ii)	At Closing, the amount of the Shareholder Loan to be assigned to Buyer will represent the entire amount owing by the Company to Seller or any other Person. 

 

	 	(iii)	Seller is entitled to assign the Shareholder Loan to Buyer pursuant to the Deed of Assignment free from any Encumbrances. 

  

	(m)	No Debt. The Company has not incurred any Liabilities other than (i) Liabilities to Seller under the Zhongce Transfer Agreement, which Liabilities shall cease to exist with respect to Seller upon Closing and
(ii) Liabilities strictly required to maintain its existence as a special purpose company with no business at all other than holding the Zhongce Equity Interest upon completion of the transfer under the Zhongce Transfer Agreement, which
Liabilities shall have been discharged in full by the Company prior to Closing. 

  
 Schedule 3 - 2 

	(n)	No Restrictions on Payment of Dividend. There are no restrictions on the Company in relation to the payment of dividends to its shareholders other than any restrictions imposed under applicable law or the
Transaction Documents. 

  

	(o)	Zhongce. 

  

	 	(i)	The amount of the Zhongce Registered Capital is RMB613,602,838, of which RMB159,536,737.91 has been contributed by Seller under applicable law and the relevant Organizational Documents, and such contribution has been
verified by a certified accountant registered in the PRC and the accounting firm employing such accountant, and the report of such certified accountant evidencing such verification has been registered with relevant registration authorities.

  

	 	(ii)	Seller held a 51% interest in the Zhongce Registered Capital in Zhongce when Zhongce was established in 1992. In 2003, Seller transferred a 25% interest in the Zhongce Registered Capital to

.. Such transfer was completed in compliance with all applicable law and relevant contracts. There has been no breach or claim by Seller or, to the best knowledge of Seller, breach or claim by any party under such
relevant contracts. 

  

	 	(iii)	Seller and the Company have entered into the Zhongce Transfer Agreement. Seller has duly transferred all of its rights and benefits in the Zhongce Equity Interest and assigned any and all of its rights and obligations
under the relevant Organization Documents of Zhongce to the Company (the “Zhongce Transfer”) at an aggregated transfer price of RMB600,000,000 pursuant to the Zhongce Transfer Agreement. Seller has obtained all relevant approvals
and registrations from relevant Government Entities (including, without limitation, the approval required for the Zhongce Transfer granted by the PRC competent approval authority and the registration of the Zhongce Transfer with the PRC competent
registration authority) and all prior written consents from relevant parties (including, without limitation, consents of all of Zhongce’s shareholders other than Seller to the Zhongce Transfer) to duly effect the Zhongce Transfer under
applicable law. The Zhongce Transfer has been completed in compliance with all applicable law and relevant contracts. There has been no breach or claim by any party under such relevant contracts. 

 

	 	(iv)	The Company is the legal and beneficial owner of the Zhongce Equity Interest, free and clear of any Encumbrances, save and except for the rights of first refusal of the other existing shareholders of Zhongce as set
forth in the Organizational Documents of Zhongce. 

  

	 	(v)	Prior to the Zhongce Transfer, Seller was the sole legal and beneficial owner of the Zhongce Equity Interest and, subject to the rights of first refusal of the other existing shareholders of Zhongce as set forth in
Organizational Documents of Zhongce, had the full power and authority to transfer the Zhongce Equity Interest to the Company under applicable law. 

  
 Schedule 3 - 3 

	 	(vi)	Immediately following the Closing under this Agreement, Buyer will be the sole legal and beneficial owner of the Sale Share, free and clear of any Encumbrances, and the Company will remain as the sole legal and
beneficial owner of the Zhongce Equity Interest, free and clear of any Encumbrances, save and except for the rights of first refusal of the other existing shareholders of Zhongce as set forth in the joint venture contract and articles of association
of Zhongce, 

  

	 	(vii)	There are no options, warrants or other rights to purchase, convert into or subscribe for shares or any other equity interest in the Company. 

 

	 	(viii)	The particulars of the Company and Zhongce set forth in Schedule 1 to this Agreement are true, correct and complete. 

  

	(p)	Business. 

 The Company has not incurred any Liability other than its obligation to pay
the Zhongce Transfer Price under the Zhongce Transfer Agreement and it has not engaged in any business other than holding the Zhongce Equity Interest. 
  

	(q)	Insurances. 

 The Company is not required to maintain any insurance under applicable law
and does not maintain any insurance. 
  

	(r)	Intellectual Property Rights. 

 The Company does not own any intellectual property
rights, nor does it, in carrying on its business, infringe any intellectual property rights of any other Person in any respect. 
  

	(s)	Properties. 

 The Company does not own any property or assets other than the Zhongce
Equity Interest. 
  

	(t)	Bank Account. The Company has opened only one bank account with Hang Seng Bank Limited (Account Number:024-787-143353-883), which will be closed prior to Closing and the Company will not have any Liabilities in
connection with the bank account with Hang Seng Bank Limited or any Other Person at Closing. 

  

	(u)	Contracts. 

 The Company has not entered into any contract or agreement other than the
Zhongce Transfer Agreement. 
  

	(v)	Employees. 

 The Company has never had and does not have any employees. 

 

	(w)	Taxes. 

  

	 	(i)	The Company is not required to complete or file any tax returns on or prior to the date hereof. 

  
 Schedule 3 - 4 

	 	(ii)	With respect to all Taxes due and payable by the Company with respect to all taxable periods or portions of periods ending on or before the Closing Date, (i) all applicable Tax laws have been complied with, and
(ii) all such amounts required to be paid to taxing authorities or others on or before the date hereof have been paid. 

  

	 	(iii)	The Company has not been notified in writing by any taxing authority that any tax return will be examined, and no adjustments to the Tax liability of the Company have been proposed in writing (and are currently pending)
by any taxing authority in connection with any tax returns of the Company. All deficiencies asserted or assessments made as a result of any examinations have been fully paid, if any. 

 

	 	(iv)	The Company has not paid or become liable to pay, any interest, penalty, surcharge or fine relating to Taxes, and all records which the Company is required to keep for Tax purposes have been duly kept and are available
for inspection at its premises. There are no liens for Taxes (other than for current Taxes not yet due and payable) on any of the assets of the Company. 

  

	(x)	Bankruptcy. Neither Seller nor the Company has filed any petition seeking or acquiescing in any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any law
relating to bankruptcy or insolvency, nor has any such petition been filed against Seller or the Company. No general assignment of Seller’s or the Company’s property has been made for the benefit of creditors, and no receiver, master,
liquidator or trustee has been appointed for Seller or the Company. Neither Seller nor the Company is insolvent and the consummation of the Transactions shall not render Seller or the Company insolvent. 

 

	(y)	Disclosure. Seller has provided Buyer with all the material information relating to it and the Company. No information provided by or on behalf of Seller in connection with the Transactions and nothing in this
Agreement or any other Transaction Document contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements herein or therein not misleading. 

  
 Schedule 3 - 5 

 SCHEDULE 5.1 

PRE-CLOSING COVENANTS 
 Unless Buyer has
given it prior written consent, Seller shall cause the Company to: 
  

	1.	not create, allot, issue, acquire, repay or redeem any share capital or agree, arrange or undertake to do any of those things or acquire or agree to acquire, an interest in a corporate body or merge or consolidate with
a corporate body or any other person, enter into any demerger transaction or participate in any other type of corporate reconstruction; 

  

	2.	engage in any business other than holding the Zhongce Equity Interest; 

  

	3.	not acquire or dispose of, or agree to acquire or dispose of, any assets; 

  

	4.	not make, or agree to make, any capital expenditure or incur, or agree to incur, any commitment or commitments involving any capital expenditure; 

 

	5.	not declare, pay or make a dividend; 

  

	6.	not create, or agree to create, an Encumbrance over the properties or assets of the Company; 

  

	7.	not create, incur, or agree to create or incur, any borrowing or indebtedness in the nature of borrowing; 

  

	8.	not commence any litigation or arbitration proceedings; and 

  

	9.	not compromise or settle litigation or arbitration proceedings or any action, demand or dispute. 

  
 Schedule 5.1EX-4.A.2

 EXHIBIT NUMBER 4(a)2 

Dated the 28th day of September 2012 

FORTUNEASY LIMITED 
 and

 WEALTH FAITH LIMITED 
  

 
 INVESTMENT
AGREEMENT 
 relating to 

Million Cube Limited 
  

 
 Szeto
Virginia & Co 
 Unit 903-4, 9th Floor 

Yip Fung Building 
 Nos. 2 – 18
D’Aguilar Street 
 Central, Hong Kong 

Tel: 2581 9227    Fax: 251 9220 

Ref: SWL/657/001 

  
 1 

 EXHIBIT NUMBER 4(a)2 
  

THIS AGREEMENT is made the 28th day of September 2012 

BETWEEN 
  

	I.	FORTUNEASY LIMITED, a limited company incorporated under the laws of the British Virgin Islands whose registered office is situated at Palm Grove House, P.O. Box 438, Road Town, Tortola, British Virgin Islands
(the “Company”); and 

  

	II.	WEALTH FAITH LIMITED, a limited company incorporated under the laws of British Virgin Islands whose registered office is situated at Beaufort House, P.O. Box 438, Road Town, Tortola, British Virgin Islands (the
“Investor”). 

 WHEREAS 
  

	A.	Million Cube Limited (the “Sub-Co”) is a limited company incorporated under the laws of the British Virgin Islands on 1 July 2010 with an authorised share capital of US$50,000 divided into 50,000
Shares of US$1.00 each, of which 100 Shares have been issued and fully paid or credited as fully paid, and 51 Shares of which are at the date hereof owned by the Company. 

 

	B.	Further details of the Sub-Co are contained in Part 1 of Schedule 1. 

  

	C.	The Sub-Co has acquired 45% of the issued share capital of and the corresponding shareholder’s loans due by Paragon Winner Company Limited (the “Acquired Company”), details of which are contained
in Part 2 of Schedule 1. 

  

	D.	The principal object of the Acquired Company is an investment holding company of a joint venture golf and hotel complex known as Sanya Yalong Bay Sun Valley Golf Club (the “Property”) in Yalong Bay
National Resort Area, Sanya City, Hainan Province, the PRC (the “Investment”). 

  

	E.	The Investor is desirous of investing in the Investment by acquiring the Sale Shares (as hereinafter defined). 

  

	F.	It is the parties’ objective within 3 months from the date of this Agreement for the Company to sell and for the Investor to purchase the Sale Shares upon the terms and conditions set out herein. 

  
 2 

 EXHIBIT NUMBER 4(a)2 
  

IT IS HEREBY AGREED as follows: 
  

	1.	Definitions and Interpretation 

  

	1.1	In this Agreement, unless the context otherwise requires the following terms shall have the following meanings: 

  

			
	 “Accounts”
	  	means the unaudited pro forma statement of the Sub-Co for the accounting period ended on the Accounts Date;
		
	 “Accounts Date”
	  	means 31 March 2012;
		
	 “Arrangement Fee”
	  	means a sum equivalent to 5% of the Consideration payable to the Company upon the Completion for the introduction by the Company to the Investor the Investment and for the Report;
		
	 “Board”
	  	means the board of directors of the Sub-Co as constituted from time to time;
		
	 “Bona Fide Purchaser”
	  	means any person who or which has delivered a good faith written offer to purchase all or any portion of the Shares held by any Shareholder;
		
	 “Business Day”
	  	means a day (excluding Saturday, Sunday and any day on which a tropical cyclone warning no. 8 or above is hoisted or remains hoisted between 9:00 a.m. and 12:00 noon and is not lowered at or before 12:00 noon or on which a
“black” rainstorm warning is hoisted or remains in effect between 9:00 a.m. and 12:00 noon and is not discontinued at or before 12:00 noon) on which licensed banks in Hong Kong are open for business;
		
	 “Completion”
	  	means the completion of all of those matters set out in Clause 3;
		
	 “Completion Date”
	  	means the Seventh Business Day after the last outstanding Conditions Precedent shall have been fulfilled (or waived, as the case may be)or such later date as agreed between the parties;
		
	 “Conditions Precedent”
	  	means the conditions set out in Clause 2.3;

  
 3 

 EXHIBIT NUMBER 4(a)2 
  

			
		
	 “Consideration”
	  	means HK$200,000,000.00;
		
	 “Directors”
	  	means the directors of the Sub-Co from time to time (and references to a “Director” shall be a reference to any of them);
		
	 “Encumbrance”
	  	means any mortgage, charge (whether fixed or floating), pledge, lien, option, right of retention of title, or any other form of security or interest to create any of the above;
		
	 “Group”
	  	means the Sub-Co and the Acquired Company;
		
	 “Group Company”
	  	means any company in the Group for the time being;
		
	 “Hong Kong”
	  	means the Hong Kong Special Administrative Region of the PRC;
		
	 “HK$”
	  	means Hong Kong dollars, the lawful currency of Hong Kong;
		
	 “Investor Director”
	  	means any one person which the Investor appoints as a Director under Clause 6;
		
	 “PRC”
	  	means the People’s Republic of China;
		
	 “Report”
	  	means the legal due diligence report, PRC legal opinion, and the valuation report in respect of the Property conducted and prepared by the Company and addressed to the Investor;
		
	 “Sale Shares”
	  	means 40 Shares, representing 40% of the entire issued share capital of the Sub-Co as at Completion;
		
	 “Share(s)”
	  	means the issued shares of US$1.00 each in the capital of the Sub-Co;
		
	 “Shareholders”
	  	mean the Company and the Investor, their respective successors and permitted assigns, and any other holder of Shares and “Shareholder” shall mean any of them;

  
 4 

 EXHIBIT NUMBER 4(a)2 
  

			
		
	 “Shareholder’s Loans”
	  	mean all amounts as may from time to time be advanced by the Shareholders to the Group and for the time being outstanding and “Shareholder’s Loans” shall mean any such loans owing by the Group to a
Shareholder;
		
	 “Taxation”
	  	means all forms of taxation, duties, imposts, levies and rates (whenever created or imposed), and all penalties and interest payable in respect of those taxes;
		
	 “US$”
	  	means United States dollars, the lawful currency of the United States of America;
		
	 “Warranties”
	  	means the warranties, representations and undertakings contained in Clause 4 and Schedule 2 (and references to a “Warranty” shall be a reference to any of them); and
		
	 %
	  	means per cent.

  

	1.2	The headings are inserted for convenience and shall not affect the construction of this Agreement. 

  

	1.3	References in this Agreement to any clause, sub-clause or schedule are to a clause, sub-clause or schedule (as the case may be) of this Agreement except where otherwise expressly stated. 

 

	1.4	In this Agreement, reference to a person includes any natural person, firm or corporate body. 

  

	1.5	Words denoting the singular shall include the plural and vice versa and words denoting any gender include all other genders. 

  

	1.6	Words importing the whole shall be treated as including a reference to any part of the whole. 

  

	1.7	References to “parties” are references to the parties to this Agreement and “party” are references to a party to this Agreement. 

  
 5 

 EXHIBIT NUMBER 4(a)2 
  

 

	2.	Conditions Precedent 

  

	2.1	This Agreement and all the obligations of the parties (including in particular the obligations of the Investor to purchase for the Sale Shares) shall be conditional on the Investor being satisfied in relation to the
Conditions Precedent as stated in Clause 2.3 below. 

  

	2.2	If the Investor is not so satisfied, this Agreement shall lapse and be null and void and no party shall have any liability to the other party. Nevertheless, the Company shall be liable to return the Earnest Money to the
Investor without interest within one month from the date of receipt of a written notice of dissatisfaction issued by the Investor or otherwise as agreed between the parties (the “Due Date”). 

 

	2.3	The Conditions Precedent are: 

  

	 	2.3.1	the Report; 

  

	 	2.3.2	all the Warranties remain true and accurate in all respects and not misleading in any respect; 

  

	 	2.3.3	the Company shall waive all pre-emption rights which it may have in respect of the Sale Shares; 

  

	 	2.3.4	all other requisite consents, authorisations and approvals in connection with the entering into and performance of the terms of this Agreement having been obtained by the respective parties; and 

 

	 	2.3.5	the passing of the resolutions of the board of directors of the Company at a duly convened board meeting in respect of the transaction contemplated in this Agreement. 

 

	2.4	The Company shall use its reasonable endeavours to ensure that all of the Conditions Precedent are fulfilled to the Investor’s satisfaction. 

 

	2.5	The Investor may, in its absolute discretion, waive any or all of the Conditions Precedent (in whole or in part). 

  

	3.	Sale and Purchase of the Sale Shares and its Completion 

  

	3.1	Subject to the terms and conditions contained in this Agreement, the Company as legal and beneficial owner agrees to sell and the Investor agrees to purchase the Sale Shares free from all Encumbrances together with all
rights attaching to the Sale Shares as at the Completion Date. 

  
 6 

 EXHIBIT NUMBER 4(a)2 
  

 

	3.2	The Consideration shall be the sum of HK$200,000,000.00 which shall be satisfied as follows: 

  

	 	3.2.1	the earnest money deposited by the Investor shall be deemed to satisfy part of the Consideration in the sum of HK$154,800,000.00 at Completion; and 

 

	 	3.2.2	the Investor shall pay to the Company the remaining balance of the Consideration in the sum of HK$45,200,000.00 at Completion. 

  

	3.3	Subject to the fulfilment of the Conditions Precedent in accordance with Clause 2.1 or waiver thereof (if any and as the case may be) in accordance with Clause 2.5, Completion shall take place at the offices of the
Company on the Completion Date or such other place and date as the parties may agree when all (but not part only) of the events described in Clause 3.4 shall occur. 

 

	3.4	At Completion, 

  

	 	(i)	the Company shall or shall cause to deliver to the Investor: 

  

	 	3.4.1	a certified true copy of the resolutions of the board of directors of the Company authorising the execution of this Agreement and all other documents required to be executed and delivered on the Completion;

  

	 	3.4.2	a certified true copy of the resolutions of the Board: 

  

	 	3.4.2.1	approving and authorising the transfer of the Sale Shares and the entering of the name of the Investor in the register of members of the Sub-Co as registered holder of the Sale Shares; and 

 

	 	3.4.2.2	approving the Investor Director to be validly appointed as additional Director with effect from the Completion Date; 

  

	 	3.4.3	duly completed and executed instruments of transfer and bought and sold notes in respect of the Sale Shares in favour of the Investor; 

 

	 	3.4.4	duly sealed and signed share certificate for the Sale Shares in favour of the Investor; 

  

	 	3.4.5	such waivers or consents of the Company and the Sub-Co as the Investor may require to enable the Investor to be registered as the holder of the Sale Shares; and 

  
 7 

 EXHIBIT NUMBER 4(a)2 
  

 

	 	(ii)	the Investor shall: 

  

	 	3.4.6	pay to the Company the following: 

  

	 	3.4.6.1	the balance of the Consideration in the sum of HK$45,200,000.00; and 

  

	 	3.4.6.2	the Arrangement Fee. 

  

	4.	Warranties 

  

	4.1	The Company warrants, represents and undertakes to the Investor, on the terms as set out in Schedule 2. 

  

	4.2	The Company agrees with the Investor that each Warranty which is set out in a separate paragraph (or which could be treated as a separate Warranty) shall be construed independently of any other, to the extent that each
of the Warranties is a separate and independent Warranty, representation and undertaking; and neither the Investor’s rights under any one Warranty, nor the meaning given to that Warranty, shall be restricted by reference to any other Warranty.

  

	4.3	Save and except in the case of fraud or wilful non-disclosure but not otherwise: 

  

	 	4.3.1	the liability of the Company in relation to the claim for breach of the Warranties shall cease on the date stipulated in Clause 4.3.2; 

 

	 	4.3.2	the date referred to in Clause 4.3.1 is the date 6 months of the date on which the Investor receives the Accounts. 

  

	5.	Operation of the Sub-Co after Completion 

  

	5.1	Restrictions 

 The Company undertakes to, and covenants with, the Investor that (except
with the Investor’s prior written consent) it shall procure the Sub-Co not to: 
  

	 	5.1.1	alter its authorised or issued share or its capital structure; 

  

	 	5.1.2	take any steps to have it or the Acquired Company wound up, unless a licensed insolvency practitioner has advised that the Sub-Co or the Acquired Company ought to be wound up by reason of having become insolvent;

  
 8 

 EXHIBIT NUMBER 4(a)2 
  

 

	 	5.1.3	create or issue, or allow to come into being, any Encumbrance upon any part of its assets (save for the Encumbrances necessarily or customarily arising in the ordinary conduct of its business); 

 

	 	5.1.4	give any guarantee indemnity (other than as customary in the ordinary course of its business), or factor any of its debts, or borrow any money or obtain any credit (other than normal trade credit) if, as a result, the
aggregate amount of that borrowing or credit exceeds HK$1,000,000.00; 

  

	 	5.1.5	acquire, or agree to acquire (by purchase, lease or otherwise) any fixed or capital asset, or make, or agree to make, any capital expenditure (except, in any single accounting period of the Sub-Co) for individual items
having an original cost not in excess of HK$1,000,000.00; 

  

	 	5.1.6	sell, transfer, lease, assign, grant any licence in respect of, or otherwise dispose of, the whole or any part of its undertaking, property or assets (whether by one transaction or a series of transactions whether
related or not), other than the sale of current assets in the ordinary course of business; 

  

	 	5.1.7	make any loan, advance or provide any credit, other than: 

  

	 	5.1.7.1	normal trade credit; or 

  

	 	5.1.7.2	in the ordinary course of its business; 

  

	 	5.1.8	subscribe for, or acquire, any shares, debentures or securities, or interest, in any other person; 

  

	 	5.1.9	incorporate or otherwise set up, or acquire, any subsidiary or associated company, or new business, or any interest in such a company or business, or acquire or dispose of any material assets other than in the ordinary
course of business; 

  

	 	5.1.10	enter into any joint venture, partnership, consortium, or other similar arrangement; 

  

	 	5.1.11	make any material change in the nature, or extent, of its business; or 

  

	 	5.1.12	enter into any agreement or arrangement otherwise than in the ordinary course of business and on an arm’s length basis. 

  
 9 

 EXHIBIT NUMBER 4(a)2 
  

 

	5.2	Board Meetings Accounts and Budgets 

 The Company undertakes to, and covenants with, the
Investor that (unless the Investor gives its prior written consent to the contrary) it shall procure the Sub-Co that: 
  

	 	5.2.1	a meeting of the Board shall be convened at least once in every year; 

  

	 	5.2.2	(unless the Investor agrees otherwise in relation to any particular meeting) there shall be given to the Investor and each Director not less than 14 days’ prior written notice of any meeting of the Board;

  

	 	5.2.3	financial and other information concerning the Group as the Investor may from time to time require shall be provided to the Investor; 

 

	 	5.2.4	within 21 days after each meeting of the Board (or any committee of the Board), it shall provide to the Investor minutes of that meeting; 

 

	 	5.2.5	the Sub-Co shall procure that the accounts of the Group are prepared and sent to all the Shareholders within 8 weeks of the last day of the period to which they relate; 

 

	 	5.2.6	the Sub-Co shall provide to the Investor, not later than 28 days prior to the end of any financial year of the Sub-Co a draft detailed financial budget for the Group for the next succeeding financial year.

  

	5.3	Fair Dealing 

 The Company undertakes to, and covenants with, the Investor that (except
with the prior written consent of the Investor) it shall procure the Sub-Co that: 
  

	 	5.3.1	each of the Group Company will carry on and conduct its business and affairs in a proper and efficient manner, and for its own benefit; 

 

	 	5.3.2	each of the Group Company will transact all its business on arm’s length terms; and 

  

	 	5.3.3	the Acquired Company shall observe and perform all the provisions of this Agreement. 

  
 10 

 EXHIBIT NUMBER 4(a)2 
  

 

	6.	Investor Director 

  

	6.1	For as long as the Investor owns any Sale Shares, it shall be entitled at any time, and from time to time, to: 

  

	 	6.1.1	appoint an Investor Director; and 

  

	 	6.1.2	remove that person from office and (irrespective of how he may cease to be a Director) to appoint another person in his place. 

  

	6.2	Whether or not the articles of association of the Sub-Co prevent or restrict this entitlement, an Investor Director shall be entitled to appoint any person to be his alternate Director, and that person shall not be
subject to retirement by rotation; or be removed except by the Investor Director. 

  

	6.3	An Investor Director shall be entitled to disclose to the Investor any information concerning the Group he thinks fit and is authorised by the Sub-Co to seek and receive from, or give to, the bankers of the Sub-Co from
time to time any information concerning the Group as he shall think fit. 

  

	6.4	Whenever, and for so long as, there is no Investor Director in office as a Director, any reference in this Agreement to the consent or approval of the Investor Director shall take effect as a reference to the consent or
approval of the Investor. 

  

	7.	Transfer of Shares and Shareholder’s Loans 

  

	7.1	Subject to the provisions of this Clause 7.2 and save for any consent given by any Shareholder, no transfer of any Shares or Shareholder’s Loans shall be made by any Shareholder, and no Shareholder shall otherwise
sell, mortgage, charge or otherwise dispose of or encumber the whole or any part of its shareholding of the Sub-Co or its Shareholder’s Loans, or assign or otherwise purport to deal with the beneficial interest therein or any right in relation
thereto separate from the legal interest. 

  

	7.2	If any Shareholder (the “Transferor”) proposes a disposition, then it shall give a disposition notice in writing (the “Disposition Notice”) to each of the other Shareholder that shall
include (i) the name of the Transferor, (ii) the name and address of the proposed Bona Fide Purchaser, (iii) the number of Shares (the “Offered Shares”) and the amount of Shareholder’s Loans (the “Offered
Loans”) to be disposed, (iv) the aggregate amount and form of the proposed consideration for the Offered Shares and the Offered Loans (the “Price”), (v) any other material business relations between the Transferor
and the Bona Fide Purchaser, and (vi) other material terms and conditions of the proposed disposition. 

  

	7.3	Each of the other Shareholder shall have an option for a period of 30 days from the receipt of the Disposition Notice (the “Acceptance Period”) from the Transferor set forth in Clause 7.2 to elect to
purchase all (but not part only) of the Offered Shares and the Offered Loans at the Price and subject to the same material terms and conditions as described in the Disposition Notice by notifying the Transferor and the Sub-Co in writing (the
“Participating Shareholder Notice”) within the Acceptance Period. 

  
 11 

 EXHIBIT NUMBER 4(a)2 
  

 

	7.4	Subject always to Clause 7.6: 

  

	 	(a)	if no Shareholder has issued a Participating Shareholder Notice within the Acceptance Period, the Shareholder (other than the Transferor) shall be deemed to have consented, for the purposes of this Clause 7, to the
proposed disposition of the Offered Shares and Offered Loans to the Bona Fide Purchaser in accordance with the terms and conditions specified in the Disposition Notice and at the Price with 90 days of the Disposition Notice; 

 

	 	(b)	if only one Shareholder serves the Participating Shareholder Notice, the Transferor shall be bound, upon payment of the Price, to transfer the Offered Shares and the Offered Loans to such Shareholder; or

  

	 	(c)	if there shall be more than one Shareholder who serve the Participating Shareholder Notice, the Offered Shares and the Offered Loans shall be allocated to the Shareholders who have served the Participating Shareholder
Notice in proportion to the number of Shares then held by them, whereupon the Price shall be paid by such Shareholders who have served the Participating Shareholder Notices to the Transferor in such proportion. 

 

	7.5	The sale and purchase of the Offered Shares and the Offered Loans by the Shareholder(s) who has served a Participating Shareholder Notice shall be completed at a place and time to be appointed by the Directors being not
less than 7 Business Days nor more than 14 Business Days after the date of expiration of the Acceptance Period mentioned in Clause 7.3. 

  

	7.6	In the event the proposed disposition is not consummated as permitted under this Clause 7.2, the first refusal rights of the other Shareholder(s) contained in Clause 7 shall continue to be applicable to any subsequent
disposition of the undisposed Offered Shares and Offered Loans by the Transferor. Furthermore, the exercise or non-exercise of the rights of any Shareholder under this Clause 7 to purchase or sell Shares and Shareholder’s Loans from the
Transferor or to a Bona Fide Purchaser shall not adversely affect its rights to make subsequent purchases or sales of Shares and Shareholder’s Loans from the Transferor or to a Bona Fide Purchaser. 

 

	7.7	The foregoing provisions of this Clause 7 shall not apply to any transfer to which the consent in writing of all the Shareholders for the time being is given. 

  
 12 

 EXHIBIT NUMBER 4(a)2 
  

 

	7.8	It shall be a condition precedent to the right of a Shareholder to transfer any Shares or Shareholder’s Loans that: 

  

	 	7.8.1	the transferee(s) (if not already bound by the provisions of this Agreement) shall agree in writing with the Shareholders to be bound by and to comply with all applicable provisions of this Agreement applicable to or
binding on the Transferor by executing a joinder; and 

  

	 	7.8.2	the transferor assigns, and the transferee(s) accept(s) an assignment of all of the loans made to and/or liabilities incurred on behalf of the Sub-Co by the transferor and for the time being outstanding, by way of the
transferor executing in favour of the transferee(s) a deed of assignment in respect of such loans and/or liabilities. 

  

	7.9	The Shareholders shall procure that the Directors shall register any transfer of the Shares which complies with the provisions of this Clause 7. 

 

					
	 7.10    
	 	(a)	  	 All transfers between the Shareholders, whether pursuant to this Article or any other provisions of this Agreement, shall be effected by the transferor
Shareholder(s) selling as beneficial owner(s) free and clear of all liens, charges and encumbrances and together with all rights attaching thereto.

  

	 	 (b)	Upon completion, the transferor Shareholder(s) shall deliver to the transferee Shareholder(s) duly executed instrument(s) of transfer in respect of the Share(s) transferred, and duly executed deed(s) of assignment in
respect of the Shareholder’s Loans assigned, in favour of the transferee Shareholder(s), together with the relevant share certificate(s) against payment by the transferee Shareholder(s) of the applicable price due in respect thereof.

  

	 	 (c)	The Shareholders shall do or procure to be done all such acts and things as may be necessary to give full effect to the transfers and the registration thereof (if applicable). If the transferor Shareholder(s) shall fail
duly to deliver any of such documents, it/they hereby irrevocably authorise(s) and appoint(s) the transferee Shareholder(s) to be its/their attorney with full power to execute, complete and deliver in its/their name(s) and on its/their behalf the
necessary documents as aforesaid upon the condition that, forthwith upon the execution and registration (if applicable), the transferee Shareholder(s) shall make the payment(s) due in respect thereof to the transferor Shareholder(s).

  
 13 

 EXHIBIT NUMBER 4(a)2 
  

 

	8.	Financing 

  

	8.1	If the financial resources of any Group Company shall at any time be insufficient to satisfy its working capital requirement as determined by the Board, the Board may resolve to require the Shareholders to provide
further shareholder’s loans to the Sub-Co which shall be contributed by the Company and the Investor according to their respective shareholding percentage in the Sub-Co. 

 

	9.	General 

  

	9.1	Any date or period mentioned in any clause may be extended with the parties’ consents. 

  

	9.2	This Agreement shall expire and be of no further force or effect upon the Investor ceasing to hold any Sale Shares. 

  

	9.3	The rights conferred on the Investor under the general law, by virtue of its shareholding in the Sub-Co, shall not be excluded or limited in any way by any rights conferred upon it by this Agreement. 

 

	9.4	This Agreement shall be binding upon and enure for the benefit of the successors of the parties but shall not be assignable save with the prior written approval given by the other party. 

 

	9.5	Each of the rights of the parties under this Agreement is independent, cumulative and without prejudice to all other rights available to any of them, and the exercise or non-exercise of any of those rights shall not
prejudice, or constitute a waiver of, any other rights of any of the parties. 

  

	9.6	Nothing contained in this Agreement shall constitute, or be deemed to constitute a partnership between the parties nor constitute any party the agent of the other party. 

 

	9.7	Each party shall bear its own legal and professional fees, costs and expenses incurred by the parties in the negotiation, preparation, execution and completion of this Agreement. The stamp duty (if any) incurred in
connection with this Agreement in respect of the sale and purchase of the Sale Shares shall be borne by the parties in equal shares. 

  

	9.8	No party shall make (or cause to be made) any announcement, press release or other public statement, publications or disclosure concerning this Agreement or any of the transactions contemplated in it (before or after
Completion) without the prior written consent of the other party unless that announcement, press release or other public statement, publications or disclosure is required by law. 

  
 14 

 EXHIBIT NUMBER 4(a)2 
  

 

	9.9	This Agreement (together with all agreements and documents executed contemporaneously with it or referred to in it) constitutes the entire agreement between the parties in relation to its subject matter and supersedes
all prior agreements and understandings whether oral or written with respect to such subject matter and no variation of this Agreement shall be effective unless reduced to writing and signed by or on behalf of a duly authorised representative of
each of the parties. 

  

	9.10	In the event that any term condition or provision is held to be a violation of any applicable law statute or regulation the same shall be deemed to be deleted from this Agreement and shall be of no force and effect and
this Agreement shall remain in full force and effect as if such term condition or provision had not originally been contained in this Agreement. Notwithstanding the above in the event of any such deletion the parties shall negotiate in good faith in
order to agree the terms of a mutually acceptable and satisfactory alternative provision in place of the provisions so deleted. 

  

	9.11	This Agreement may be executed in any number of counterparts or duplicates (each in the same form), all of which, taken together, shall constitute one and the same document. 

 

	10.	Notices 

  

	10.1	Any notice shall be addressed as provided in Clause 10.2 and may be: 

  

	 	10.1.1	personally delivered, in which case it shall be deemed to have been given upon delivery at the relevant address(es); or 

  

	 	10.1.2	if within Hong Kong, sent by pre-paid post, in which case it shall be deemed to have been given 2 Business Days after the date of posting; or 

 

	 	10.1.3	if from or to any place outside Hong Kong, sent by pre-paid priority airmail, in which case it shall be deemed to have been given 7 Business Days after the date of posting; or 

 

	 	10.1.4	sent by facsimile, in which case it shall be deemed to have been given when despatched, subject to confirmation of uninterrupted transmission by a transmission report, provided that any notice despatched by facsimile
after 17.00 hours on any day (local time for the recipient) or otherwise than on a Business Day shall be deemed to have been received at 08.00 hours on the next Business Day. 

  
 15 

 EXHIBIT NUMBER 4(a)2 
  

 

	10.2	The addresses and other details of the parties referred to in Clause 10.1 are, subject to Clause 10.3, as follows: 

  

							
	    To Company:
	  		 		  	
				
		  	Address	 	:	  	 Room 608, Hong Kong Plaza, No. 188
 Connaught
Road West, Hong Kong

		  	Tel. No.	 	:	  	(852) 2907 9118
		  	Facsimile No.	 	:	  	(852) 2810 4048
		  	Attention	 	:	  	The Board of Directors
				
	    To Investor:
	  		 		  	
				
		  	Address	 	:	  	 25th Floor, Paul Y. Centre, No. 51 Hung

To Road, Kwun Tong, Kowloon, Hong Kong

		  	Tel	 	:	  	(852) 2372 0130
		  	Facsimile No.	 	:	  	(852) 2810 6982
		  	Attention	 	:	  	The Board of Directors

  

	10.3	Any party to this Agreement may notify the other parties of any change to the address or any of the other details specified in Clause 10.2, provided that such notification shall only be effective on the date specified
in such notice or 5 Business Days after the notice is given, whichever is later. 

  

	11.	Law and Jurisdiction 

  

	11.1	This Agreement shall be governed by and construed in all respects in accordance with the laws of Hong Kong and each of the parties irrevocably submit to the exclusive jurisdiction of the Courts of Hong Kong.

  
 16 

 EXHIBIT NUMBER 4(a)2 
  

IN WITNESS whereof the parties have executed this Agreement first above written. 

 

					
	SIGNED by	  	)	  	
	Kee Yuk Lun	  	)	  	
	being authorized signatory of	  	)	  	
	FORTUNEASY LIMITED	  	)	  	
	in the presence of:	  	)	  	
		  	)	  	
	  
	  	)	  	 /s/ Kee Yuk Lun

	Signature of witness	  	)	  	Signature of authorised person
		  	)	  	
	  
	  	)	  	 Kee Yuk Lun

	Name of witness (block letters)	  	 )

)
	  	 Name of authorised person
 (block
letters)

		  	)	  	
	  
	  	)	  	 Director

	Address/Identity Card No. of witness	  	)	  	Office held

  
 17 

 EXHIBIT NUMBER 4(a)2 
  

 

							
	SIGNED by	 		 		 	
		 		 	)	 	
	being authorized signatory of	 		 	)	 	
	WEALTH FAITH LIMITED	 		 	)	 	
	in the presence of:	 		 	)	 	
		 		 	)	 	
	  
	 		 	)	 	 /s/ Yap, Allan

	Signature of witness	 		 	)	 	Signature of authorised person
		 		 	)	 	
	  
	 		 	)	 	 Yap, Allan

	Name of witness (block letters)	 		 	 )
 )
	 	 Name of authorised person
 (block
letters)

		 		 	)	 	
	  
	 		 	)	 	 Director

	Address/Identity Card No. of witness	 		 	)	 	Office held

  
 18 

 EXHIBIT NUMBER 4(a)2 
  

SCHEDULE 1 

Part 1 

Particulars of the Sub-Co 
  

					
	Name	  	:	  	Million Cube Limited
			
	Place of Incorporation	  	:	  	British Virgin Islands
			
	Date of Incorporation	  	:	  	1 July 2010
			
	Company No.	  	:	  	1591967
			
	Registered Office	  	:	  	Corporate Registrations Limited, Sea Meadow House, Blackburne Highway, (P.O. Box 116), Road Town, Tortola, British Virgin Islands
			
	Authorised Share Capital	  	:	  	US$50,000.00 divided into 50,000 Shares of US$1.00 each
			
	Issued Share Capital	  	:	  	US$100.00 divided into 100 Shares of US$1.00 each
			
	Shareholder	  	:	  	The Company, holding 51 Shares representing the entire issued share capital of the Sub-Co

  
 19 

 EXHIBIT NUMBER 4(a)2 
  

SCHEDULE 1 

Part 2 

Particulars of the Acquired Company 
  

									
	Name	  	:	  	Paragon Winner Company Limited
			
	Place of Incorporation	  	:	  	British Virgin Islands
			
	Date of Incorporation	  	:	  	10 October 2008
			
	Company No.	  	:	  	1506498
			
	Registered Office	  	:	  	Portcullis TrustNet Chambers, P.O. Box 3444, Road Town, Tortola, British Virgin Islands
			
	Authorised Share Capital	  	:	  	US$50,000.00 divided into 50,000 shares of US$1.00 each
			
	Issued Share Capital	  	:	  	US$100.00 divided into 100 shares of US$1.00 each
					
	Shareholder	  	:	  	(1) Everight Investment Limited	 	55 shares	 	
		  		  	(2) The Company	 	 45 shares
	 	
		  		  		 	100 shares	 	

  
 20 

 EXHIBIT NUMBER 4(a)2 
  

SCHEDULE 2 

Warranties 
  

	1.	General Information and Powers of the Company 

  

	(A)	The Company has full power to enter into this Agreement and to exercise its rights and perform its obligations hereunder and all corporate and other actions required to authorise its execution of this Agreement and its
performance of its obligations hereunder have been duly taken and this Agreement shall, when executed, be a legal, valid and binding agreement on it and enforceable in accordance with the terms hereof. 

 

	(B)	The execution, delivery and performance of this Agreement by the Company does not and will not violate in any respect any provision of (i) any law or regulation or any order or decree of any governmental authority,
agency or court prevailing as at the date of this Agreement and as at Completion; (ii) the laws and documents incorporating and constituting the Company or the Company prevailing as at the date of this Agreement and as at Completion; or
(iii) any contract or other undertaking or instrument to which the Company or the Company is a party or which is binding upon any of them or any of their assets, and does not and will not result in the creation or imposition of any Encumbrance
on any of their assets pursuant to the provisions of any such contract or other undertaking or instrument. 

  

	(C)	As at the date of this Agreement and immediately prior to Completion, the information set out in Schedules 1 and 2 is true, accurate and complete. 

 

	2.	Sale Shares  

  

	(A)	The ordinary Shares comprising the Sale Shares were allotted and issued fully paid in accordance with the memorandum and articles of association of the Sub-Co and in compliance with all relevant laws. 

 

	(B)	The Sale Shares are free from Encumbrances and the Company is the owner thereof together with all rights and entitlements attaching thereto. 

 

	3.	Compliance with Legal Requirements 

  

	(A)	The Sub-Co has duly and properly complied with all filing and registration requirements in respect of corporate or other documents imposed under the relevant laws of the jurisdiction in which it was incorporated.

  
 21 

 EXHIBIT NUMBER 4(a)2 
  

 

	(B)	The statutory books and minute books of the Sub-Co have been properly written up and compliance has been made with all legal requirements concerning the Sub-Co and all issues of Shares, debentures or other securities
thereof. 

  

	(C)	The Sub-Co and the Directors (in their capacity as such) have complied with all relevant legislation and obtained and complied with all necessary consents to carry on business whether in the country, territory or state
in which it was incorporated or elsewhere, including (but without limitation) legislation relating to companies and securities, real property, Taxation and prevention of corruption and have complied with all legal requirements in relation to any
transactions to which it is or has been a party prior to Completion. 

  

	4.	Shares 

  

	(A)	The Sub-Co does not have subsidiaries or investment in any company other than those disclosed herein. 

  

	(B)	There is no Encumbrances or third party rights on, over or affecting any part of the unissued share capital or loan capital of the Sub-Co and there is no agreement or commitment to give or create any of the foregoing
and no claim has been made by any person to be entitled to any of the foregoing which has not been waived in its entirety or satisfied in full. 

  

	5.	Corporate Matters 

  

	(A)	The minute books of directors’ meetings and of shareholder’s meetings of the Sub-Co respectively contain full and accurate records of all resolutions passed by the Directors and the shareholder respectively of
such company and no resolutions have been passed by either the Directors or the shareholder of the Sub-Co which are not recorded in the relevant minute books. 

  

	6.	Accounts 

  

	(A)	The Accounts: 

  

	 	(i)	were prepared in accordance with applicable laws and with generally accepted accounting principles, standards and practices in Hong Kong (including all applicable Statements of Standard Accounting Practice) at the time
they were prepared save and except those relating to provisions for deferred taxation or valuation of assets; 

  
 22 

 EXHIBIT NUMBER 4(a)2 
  

 

	 	(ii)	are true and fair in all respects and include provision for any bad and doubtful debts and all established liabilities, make proper and adequate provision for (or contain a note in accordance with good accounting
practice in respect of) all deferred, disputed or contingent liabilities (whether liquidated or unliquidated but except deferred taxation) and all capital commitments of the Sub-Co as at the Accounts Date and the reserves and provisions (if any)
made therein for all Taxation relating to any period on or before the Accounts Date are proper and adequate; 

  

	 	(iii)	give a true and fair view of the state of affairs and financial positions of the Sub-Co at the Accounts Date. 

  

	(B)	The accounting and other books and records of the Sub-Co are in its possession, have been properly written up and accurately present and reflect in accordance with generally accepted accounting principles and standards
all the transactions entered into by the Sub-Co or to which the Sub-Co has been a party and there are no inaccuracies or discrepancies of any kind contained or reflected in any of the said books and records, and they give and reflect a true and fair
view of the financial and contractual position of the Sub-Co and of its fixed and current and contingent assets and liabilities and debtors and creditors. 

  

	(C)	Since the Accounts Date: 

  

	 	(i)	there has not been any acquisition or disposal by the Sub-Co of fixed or capital assets or any agreement to effect the same; 

  

	 	(ii)	there has not been any creation of liabilities (whether secured or unsecured) by the Sub-Co (other than in the ordinary course of its business); 

 

	 	(iii)	no event has occurred as regards the Sub-Co which would entitle any third party to terminate any material contract or any benefit enjoyed by it or call in any amount of money before the normal due date therefor or
indebtedness; 

  

	 	(iv)	the Sub-Co has not mortgaged or charged any part of its assets; 

  

	 	(v)	the Sub-Co has not increased any of its secured liability; 

  

	 	(vi)	no fixed asset or stock has been written up nor any debt written off, and no unusual or abnormal contract has been entered into by the Sub-Co; and 

 

	 	(vii)	no material adverse change in the financial position of the Sub-Co. 

  

	(D)	No part of the amounts included in the Accounts or subsequently recorded in the books of the Sub-Co as owing by any debtors. 

  
 23 

 EXHIBIT NUMBER 4(a)2 
  

 

	(E)	All debts due to the Sub-Co included in the Accounts (being debts in excess of bad or doubtful debts for which provision has been made in the Accounts) have either prior to the date hereof been realised or will within
12 months realise their full amount in cash. 

  

	7.	Financial Matters 

  

	(A)	The Sub-Co will not, as at Completion, have outstanding: 

  

	 	(i)	mortgage, charge or debenture or any obligation (including a conditional obligation) to create a mortgage, charge or debenture; or 

  

	 	(ii)	liabilities under any guarantee or other contingent obligation. 

  

	8.	Assets 

  

	(A)	The assets included in the Accounts or acquired since the Accounts Date and all assets used or owned by or in the possession of the Sub-Co: 

 

	 	(i)	are legally and beneficially owned by it free from any Encumbrances; 

  

	 	(ii)	are in the possession or under its control; 

  

	 	(iii)	are not subject to any hire purchase, leasing arrangements or other arrangements of a similar nature; and 

  

	 	(v)	comprise all the assets, property and rights which it owns. 

  

	(B)	The Sub-Co is not a party to any agreement for the hire, rent, hire purchase or purchase on deferred terms of any asset. 

  

	(C)	The Sub-Co has done everything (whether by way of giving notice, registration, filing or otherwise) required or permitted to be done by it for the protection of its title to, or for the enforcement or the preservation
of any order of priority of its title to, any property or rights (including the benefit of any debt, mortgage or charge) owned by it. 

  

	(D)	All records or other documents recording or evidencing any contract, licence, consent or other right of the Sub-Co or required for the exercise of any such right are in the possession or under its exclusive control.

  
 24 

 EXHIBIT NUMBER 4(a)2 
  

 

	9.	Material Transactions 

  

	(A)	Since the Accounts Date, the Sub-Co has not: 

  

	 	(i)	issued or repaid or agreed to issue or repay any share or loan capital; 

  

	 	(ii)	declared, made or paid any dividends or made any other distribution out of profits, reserves or capital and no share or loan capital has been repaid in whole or in part; 

 

	 	(iii)	been engaged in any business activities outside its ordinary course of business; or 

  

	 	(iv)	issued any guarantee or indemnity or granted any security on behalf of any person or company. 

  

	(B)	As at the date of this Agreement, none of the assets of the Sub-Co has been depleted by any unlawful act on the part of any person. 

 

	10.	Employment 

  

	(A)	The Sub-Co has not employed any employees on or before the date of this Agreement nor will it employ any employees on or before Completion. 

 

	11.	Property 

  

	(A)	The Sub-Co owns no property in Hong Kong. 

  

	12.	Loans 

  

	(A)	The Sub-Co does not have any debentures, acceptance credits, overdrafts, loans or other financial facilities outstanding or available to it. 

 

	(B)	There are no loans made to the Sub-Co which are outstanding except as shown in the Accounts. 

  

	(C)	The Sub-Co has not factored any of its debts or engaged in any financing of a type which would not require to be shown or reflected in the Accounts. 

 

	(D)	The Sub-Co does not have any outstanding mortgages, charges, debentures or other loan capital or bank overdrafts, loans or other similar indebtedness, financial facilities, finance leases or hire purchase commitments or
any guarantees or other contingent liabilities. 

  
 25 

 EXHIBIT NUMBER 4(a)2 
  

 

	(E)	The total amount borrowed by the Sub-Co (as determined in accordance with the provisions of the relevant instrument or document) does not exceed any limitation on its borrowing powers contained in its articles of
association or equivalent constitutional document, or in any debenture or other deed or document binding upon it. 

  

	13.	Litigation 

  

	(A)	The Sub-Co is not a party to any litigation, arbitration or prosecutions or to any other legal or contractual proceedings or hearings before any statutory, regulatory or governmental body, department, board or agency or
to any material disputes or so far as the Sub-Co is aware the subject of any investigation by any authority in the place where the business of Sub-Co is conducted and no litigation, arbitration, prosecution or other legal or contractual proceedings
or (so far as the Sub-Co is aware) investigations are threatened or pending either by or against the Sub-Co and there are no facts or circumstances subsisting which might give rise to any such proceeding, investigation, hearing or to any dispute or
to any payment and there are no unfulfilled or unsatisfied judgment or court orders against Sub-Co. 

  

	14.	Contracts and Commitments 

  

	(A)	Since the Accounts Date, the Sub-Co has carried on its business in the ordinary course and, save as mentioned in or as contemplated by this Agreement, it has not entered into any transaction or incurred any liabilities
except in the ordinary course of its day-to-day business and on an arm’s length basis for full value. 

  

	(B)	There is not now outstanding nor will there be outstanding at Completion with respect to the Sub-Co: 

  

	 	(i)	any agreement (whether by way of guarantee, indemnity, warranty, representation or otherwise) under which the Sub-Co is under any actual or contingent liability in respect of the obligations of any person other than the
Sub-Co ; 

  

	 	(ii)	any contract or arrangement to which it is a party and in which the Sub-Co has a direct or indirect interest. 

  

	(C)	The Sub-Co is not: 

  

	 	(i)	in default under any agreement or obligation to which it is party or in respect of any other obligations or restrictions binding upon it; or 

  
 26 

 EXHIBIT NUMBER 4(a)2 
  

 

	 	(ii)	liable in respect of any representation or warranty (whether express or implied). 

  

	(D)	With respect to the Sub-Co, there are no: 

  

	 	(i)	contractual arrangements between it and any party which will or may be legally terminated as a result of the execution or completion of this Agreement; or 

 

	 	(ii)	powers of attorney or other authorities (express or implied) which are still outstanding or effective to or in favour of any person to enter into any contract or commitment or to do anything on its behalf save for the
purposes of completing this Agreement; or 

  

	 	(iii)	agreements or arrangements entered into by it otherwise than by way of bargain at arm’s length. 

  

	15.	Insolvency 

  

	(A)	No order has been made or resolution passed for the winding up of the Sub-Co and there is not outstanding: 

  

	 	(i)	any petition for the winding up of the Sub-Co; 

  

	 	(ii)	any receivership of the whole or any part of the undertaking or assets of the Sub-Co; 

  

	 	(iii)	any petition or order for the administration of the Sub-Co; or 

  

	 	(iv)	any voluntary arrangement between the Sub-Co and any of its creditors. 

  

	(B)	There are no circumstances which are known, or would on reasonable enquiry be known, to the Sub-Co which would entitle any person to present a petition for the winding up or administration of the Sub-Co or to appoint a
receiver of the whole or any part of its undertaking or assets. 

  

	(C)	No distress, execution or other process has been levied against the Sub-Co or action taken to repossess goods in the possession of the Sub-Co. 

 

	(D)	The Sub-Co is not or has not been a party to any transaction which may be avoided in a winding up. 

  
 27 

 EXHIBIT NUMBER 4(a)2 
  

 

	16.	Miscellaneous 

  

	(A)	All representations, warranties and undertakings contained in the foregoing provisions of this Schedule shall be deemed to be repeated immediately before Completion and to relate to the facts then existing.

  
 28

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