Document:

EX-4.25

Exhibit 4.25

English Translation of Chinese Original

Equity Transfer Agreement

For the Transfer of the Equity in South Oil Exploration and Development Co., Ltd.

By and among

CNPC Exploration and Development Company Limited

And

CNPC Central Asia Petroleum Company Limited

And

PetroChina Company Limited

August 28, 2009

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE 1	 	DEFINITIONS
	 	 	4	 
	 	 	 
	 	 	 	 
	ARTICLE 2	 	SUBJECT INTEREST
	 	 	5	 
	 	 	 
	 	 	 	 
	ARTICLE 3	 	CONSIDERATION FOR TRANSFER OF SUBJECT INTEREST
	 	 	5	 
	 	 	 
	 	 	 	 
	ARTICLE 4	 	CONDITIONS PRECEDENT TO CLOSING OF THE TRANSFER
	 	 	5	 
	 	 	 
	 	 	 	 
	ARTICLE 5	 	DELIVERY OF THE SUBJECT INTEREST
	 	 	6	 
	 	 	 
	 	 	 	 
	ARTICLE 6	 	GAIN/LOSS ARISING IN THE TRANSITION PERIOD
	 	 	7	 
	 	 	 
	 	 	 	 
	ARTICLE 7	 	REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE TRANSFERORS
	 	 	7	 
	 	 	 
	 	 	 	 
	ARTICLE 8	 	REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE TRANSFEREE
	 	 	8	 
	 	 	 
	 	 	 	 
	ARTICLE 9	 	OBLIGATIONS OF THE TRANSFERORS
	 	 	8	 
	 	 	 
	 	 	 	 
	ARTICLE 10	 	OBLIGATIONS OF THE TRANSFEREE
	 	 	9	 
	 	 	 
	 	 	 	 
	ARTICLE 11	 	TAXES
	 	 	9	 
	 	 	 
	 	 	 	 
	ARTICLE 12	 	DEFAULT LIABILITIES
	 	 	9	 
	 	 	 
	 	 	 	 
	ARTICLE 13	 	CONFIDENTIALITY
	 	 	9	 
	 	 	 
	 	 	 	 
	ARTICLE 14	 	EFFECTIVENESS, AMENDMENTS, RESCISSION, TERMINATION AND ASSIGNMENT
	 	 	9	 
	 	 	 
	 	 	 	 
	ARTICLE 15	 	FORCE MAJEURE
	 	 	10	 
	 	 	 
	 	 	 	 
	ARTICLE 16	 	NOTICES
	 	 	10	 
	 	 	 
	 	 	 	 
	ARTICLE 17	 	GOVERNING LAW AND DISPUTE RESOLUTION
	 	 	11	 
	 	 	 
	 	 	 	 
	ARTICLE 18	 	MISCELLANEOUS
	 	 	12	 

- 2 -

 

Equity Transfer Agreement

          This Equity Transfer Agreement (this “Agreement”) is entered into this 28th day of
August 2009 in Beijing by and among the following parties:

          Transferors:

          CNPC Exploration and Development Company Limited (“CNPC E&D”)

          Business License No.: 110000008052740

          Registered Address: Tower D, International Investment Building, 6 North Fuchengmen

          Street, Xicheng District, Beijing

          Legal Representative: SUN Longde

          CNPC Central Asia Petroleum Company Limited (“CNPC Central Asia”)

          Business License No.: 110000005197667

          Registered Address: 1 South Street, Qingnianhu Lake, Dongcheng District, Beijing

          Legal Representative: XIE Shiyao

          CNPC E&D and CNPC Central Asia hereinafter collectively as the “Transferors”.

          Transferee:

          PetroChina Company Limited

          Business License No.: 1000001003252

          Registered Address: World Tower, 16 Andelu, Dongcheng District, Beijing

          Legal Representative: JIANG Jiemin

          Whereas,

	 	(i)	 	CNPC E&D is a limited liability company duly established and validly existing under
the laws of the PRC and legally owns 95% equity interest in South Oil Exploration and
Development Co., Ltd. (“South Oil”);

	 
	 	(ii)	 	CNPC Central Asia is a limited liability company duly established and validly
existing under the laws of the PRC and legally owns 5% equity interest in South Oil; and

	 
	 	(iii)	 	Subject to the conditions and terms of this Agreement, the Transferors desire to
transfer to the Transferee, and the Transferee desires to purchase from the Transferors,
all the 100% equity interest in South Oil.

          NOW, THEREFORE, in accordance with the Company Law of the People’s Republic of China, the
Contract Law of the People’s Republic of China, and other applicable laws and regulations, the
Transferors and the Transferee, after friendly negotiations, hereby reach agreement as follows with
respect to the transfer of the Subject Interest (as defined below) for

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mutual observance:

Article 1          Definitions

	 	 	 

	“CNPC Central Asia ”

	 	shall mean CNPC Central Asia Petroleum Company Limited,
holding 5% equity interest in South Oil.
	 
	 	 
	“CNPC E&D”

	 	shall mean CNPC Exploration and Development Company
Limited, holding 95% equity interest in South Oil.
	 
	 	 
	“South Oil ” or
“Target
 Company”

	 	shall mean South Oil Exploration and Development Co., Ltd.
	 
	 	 
	“Subject Interest”

	 	shall mean the target of the Transfer as further set
forth in Article 2 hereof.
	 
	 	 
	“Transfer”

	 	shall mean the transfer of the Subject Interest from the
Transferors to the Transferee.
	 
	 	 
	“Appraisal Report”

	 	shall mean the Assets Appraisal Report (Zhong Zi Ping Bao
Zi(2009) No. 123) issued by China Enterprise Appraisal
Co., Ltd. with respect to the assets and liabilities of
the Subject Interest as of the Reference Date for the
purpose of the Transfer.
	 
	 	 
	“Reference Date”

	 	shall mean April 30, 2009.
	 
	 	 
	“Transition Period”

	 	shall mean the period from the Reference Date up to and
including the Closing Date.
	 
	 	 
	“Supplemental Audit”

	 	shall mean a special audit conducted by an auditor
engaged by the parties hereto on the changes in the value
of the Subject Interest from the Reference Date to the
reference date of the Supplemental Audit for the purpose
of determining any gain or loss occurred during the
Transition Period.
	 
	 	 
	“Closing”

	 	shall mean the delivery of the Subject Interest in
accordance with Article 5 hereof.
	 
	 	 
	“Closing Date”

	 	shall mean the date on which the Closing shall occur as
agreed by and among the parties hereto after the
satisfaction all the conditions precedent to the Closing
set forth in Article 4 hereof.
	 
	 	 
	“SASAC”

	 	shall mean the State-owned Asset Supervision and
Administration Commission of the State Council.
	 
	 	 
	“PRC” or “China”

	 	shall mean the People’s Republic of China, but for
purposes of
	 
	 	 

- 4 -

 

	 	 	 
	 

	 	this Agreement, excluding Hong Kong Special
Administrative Region, Macau Special Administrative
Region and Taiwan.

Article 2        Subject Interest

          The Subject Interest shall refer to the 100% equity interest in South Oil collectively owned
by the Transferors, i.e., CNPC E&D and CNPC Central Asia.

Article 3        Consideration for Transfer of Subject Interest

          The parties hereto agree and acknowledge that the consideration for the Transfer of the
Subject Interest shall be RMB2,813,333,500, as determined by reference to the asset appraisal
results set forth in the Appraisal Report prepared as of the Reference Date, of which, RMB
2,672,666,800 shall be for the 95% interest held by CNPC E&D in South Oil, and RMB140,666,700 shall
be for the 5% interest held by CNPC Central Asia in South Oil. However, such consideration will be
adjusted by reference to the final appraised value filed with SASAC.

Article 4        Conditions Precedent to Closing of the Transfer

	 	4.1	 	The Closing hereunder shall occur on the Closing Date agreed among the parties
hereto following the satisfaction of all the conditions precedent to the Closing:

	 	(1)	 	This Agreement has been duly signed by the legal
representatives of the Transferors and the Transferee or their respective
authorized representative;

	 
	 	(2)	 	All necessary consents or approvals in connection with this
Agreement and the Subject Interest have been obtained, including without
limitation:

	 	(A)	 	each of the Transferors has obtained approval
from its respective internal governing bodies in respect of the
Transfer;

	 
	 	(B)	 	the Transferee has obtained approval from its
respective internal authorities in respect of the Transfer;

	 
	 	(C)	 	the Transfer has been approved by the
shareholders of the Target Company;

	 
	 	(D)	 	creditors and any other relevant third parties
have given the Transferors all the necessary consents in respect of the
delivery of the Subject Interest;

	 
	 	(E)	 	the Appraisal Report, being the pricing basis
of the Transfer, has been confirmed by the Transferors and the
Transferee and

- 5 -

 

	 	 	 	filed with SASAC; and

	 
	 	(F)	 	the Transfer, to take place by way of transfer
by agreement, has been approved by SASAC.

	 	(3)	 	all the representations, warranties and covenants made by the
parties hereto in this Agreement shall remain true and accurate as at the
Closing Date.

	 	4.2	 	The parties hereto shall make efforts to cooperate with each other friendly to
ensure that all the conditions precedent set forth above will be satisfied as soon as
practicable and shall make all reasonable efforts to cause the Transfer to be completed
by June 30, 2010.

Article 5        Delivery of the Subject Interest

	 	5.1	 	The Transferors shall, within a reasonable period, actively procure the fulfillment
of all the Closing conditions set forth in Article 4 (other than 4.1 (2)(B) above), give
a notice to the Transferee in writing requesting Closing to be conducted and shall
furnish copies of the documents/proof evidencing fulfillment of the Closing conditions
and the proposed Closing Date.

	 
	 	5.2	 	If the Transferee determines that all the Closing conditions have been fulfilled,
it shall, within five (5) business days following receipt of the notice referred to in
Article 5.1, issue a letter to each of CNPC E&D and CNPC Central Asia in writing
indicating its agreement to the Closing as well as the Closing Date proposed by the
Transferors.

	 
	 	5.3	 	At the Closing Date, the Transferee shall pay the consideration to each of the
Transferors in full to the bank account designated by each of the Transferors in a lump
sum.

	 
	 	5.4	 	At the Closing Date, each of the Transferors shall deliver to the Transferee the
investment certificate issued by the Target Company or the amended shareholder register,
and shall cause and assist the Target Company to carry out the registration of changes to
the Subject Interest with the competent administration for industry and commerce.

	 
	 	5.5	 	At the Closing Date, the Transferors shall deliver to the Transferee or the Target
Company, all the materials relating to the Target Company in their possession, including
without limitation, asset lists, financial statements, and files relating to the Target
Company.

	 
	 	5.6	 	As from the Closing Date, the Transferee shall obtain the Subject Interest,

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	 	 	 	together with all the interest accrued thereon in accordance with applicable PRC
laws, and enjoy and assume the corresponding rights and obligations under applicable
laws and regulations and articles of association of the Target Company.

Article 6        Gain/Loss Arising in the Transition Period

          The parties hereto agree and acknowledge that subject to the terms and conditions hereunder
any gain/loss arising in the Transition Period shall be enjoyed and assumed by the Transferor.
Subject to the terms and conditions of this Agreement, any gain/loss of the Target Company arising
in the Transition Period shall be enjoyed or borne by the Transferors. The parties hereto agree
that in the event of a loss during such period the Transferee shall reduce the consideration by an
amount equal to such loss, and on the contrary in the event of a profit during such period, the
Transferee shall increase the consideration by an amount equal to such loss. The actual amount of
gain/loss shall be determined by the parties hereto by reference to the results of the Supplemental
Audit.

Article 7        Representations, Warranties and Covenants of the Transferors

	 	7.1	 	Each of the Transferors is a limited liability company duly established and validly
existing under the laws of the PRC. Each of the Transferors legally owns the Subject
Interest and has the right to transfer the Subject Interest to the Transferee in
accordance with this Agreement.

	 
	 	7.2	 	Each of the Transferors warrants that it has not, whether directly or indirectly,
created any pledge, third party interest or any other restriction of right on the Subject
Interest.

	 
	 	7.3	 	The execution and performance of this Agreement by either Transferor do not violate
any contracts or agreements to which such Transferor is legally bound by.

	 
	 	7.4	 	The execution and performance of this Agreement by either Transferor do not violate
any applicable laws or regulations, or the articles of association or other
constitutional documents of such Transferor.

	 
	 	7.5	 	Each of the Transferors undertakes to make efforts to cooperate, and cause the
Target Company to cooperate with the Transferee in the completion of any and all legal or
administrative procedures in connection with the Transfer hereunder, including without
limitation, industrial and commercial registration of the relevant changes.

	 
	 	7.6	 	Each of the Transferors hereby makes the following representations, warranties and
covenants to the Transferee with respect to the Target Company:

	 	(1)	 	The Target Company is duly established and validly existing as
an independent legal person under the laws of the PRC;

	 
	 	(2)	 	The Target Company is not in violation of any currently
effective PRC

- 7 -

 

	 	 	 	laws, regulations or rules, and has duly completed the procedures for the
registration, annual review or annual audit of all the relevant permits,
licenses and approvals as required by competent governmental authorities,
including without limitation, competent industrial and commercial
administrative authorities, tax authorities, and customs authorities, and
has obtained all the qualifications for the conduct of its business;

	 
	 	(3)	 	Except as disclosed to the Transferee, the Target Company has
the legal ownership and use right to its assets as evidenced by all the
necessary certificates and instruments without any flaw, free from any
security interest or any other encumbrance or third party interest;

	 
	 	(4)	 	The Target Company does not have any material litigations,
claims, arbitration, administrative proceedings or other legal proceedings,
whether pending or threatening, or any contingent liabilities in any other
form. The Target Company has paid in full all the taxes due and payable or
prior to the date hereof, and shall guarantee that it shall pay in full all the
taxes due and payable from the date hereof to the Closing Date;

	 
	 	(5)	 	From the date hereof to the Closing Date, the Target Company
shall not declare or pay in any form any dividends, bonuses or distributions to
any of its shareholders or any other person;

	 
	 	(6)	 	All the financial and operational information relating to the
Target Company furnished by the Transferors and the Target Company are true,
accurate and complete; and

	 
	 	(7)	 	Each of the Transferors has full paid up the capital
contribution to the Target Company subscribed for by it.

Article 8        Representations, Warranties and Covenants of the Transferee

	 	8.1	 	The Transferee is a company limited by shares duly established and validly
existing under the laws of the PRC.

	 
	 	8.2	 	The execution and performance of this Agreement by the Transferee do not violate
any contracts or agreements by which the Transferee is legally bound.

	 
	 	8.3	 	The execution and performance of this Agreement by the Transferee do not violate
any applicable laws or regulations, or the articles of association or other
constitutional documents of the Transferee.

Article 9        Obligations of the Transferors

	 	9.1	 	Each of the Transferors shall apply to SASAC for its approval to the Transfer of
the Subject Interest by way of transfer by agreement and arrange for the appraisal
results to be filed with SASAC.

	 
	 	9.2	 	Each of the Transferors shall cause South Oil to carry out the industrial and
commercial registration of the amendments to the shareholder register and

- 8 -

 

	 	 	 	articles of association of South Oil.

Article 10       Obligations of the Transferee

	 	  10.1	 	The Transferee shall assist the Transferors to complete all the applications for,
filings of and industrial and commercial registration of changes in connection with the
Transfer.

	 
	 	  10.2	 	The Transferee shall pay the consideration for the Transfer to the Transferors on a
timely basis in accordance with relevant provisions hereof.

Article 11       Taxes

          The taxes and charges incurred in connection with the Transfer shall be assumed by the parties
hereto in accordance with the applicable laws and regulations.

Article 12       Default Liabilities

	 	  12.1	 	After this Agreement takes effect, if any party hereto fails to fulfill any of its
other obligations hereunder in accordance with the terms hereof, or any representations
or warranties contained herein made by such party hereto is false, such party shall be
deemed to be in default. The defaulting party shall indemnify the non-defaulting party
against any and all losses suffered by the non-defaulting party as a result of the above
default.

	 
	 	  12.2	 	After this Agreement takes effect, if either Transferor fails to transfer any
Subject Interest in accordance with the terms hereof, the Transferee shall have the right
to terminate this Agreement. In addition, the Transferors shall be liable for
indemnifying the Transferee against any expenses and losses actually incurred by the
Transferee as a result of the above failure, including without limitation, any and all
related expenses incurred in connection with the Transferee’s purchase of the Subject
Interest.

Article 13       Confidentiality

          All the parties hereto shall treat any and all details regarding this Agreement and the
Transfer of the Subject Interest, the relationship among the parties hereto and the documents
furnished to each other hereunder as confidential information (the “Confidential
Information”). Without prior written consent of the other parties, any party hereto may not
disclose the Confidential Information to any person other than the parties hereto, except for any
disclosure to relevant advisors or regulatory bodies or as required by the listing rules of the
jurisdiction in which it is listed.

          This Article shall survive the expiration or any termination of this Agreement for any reason.

Article 14       Effectiveness, Amendments, Rescission, Termination and Assignment

	 	  14.1	 	  Effectiveness

	 
	 	  	 	  This Agreement has been executed by the authorized representatives of the

- 9 -

 

	 	 	 	parties hereto on the date first written above and shall officially come into effect
upon the satisfaction of all the following conditions:

	 	(1)	 	this Agreement has been authorized/approved by the competent
internal governing bodies of the Transferors and the Transferee; and

	 
	 	(2)	 	the Transfer by way of transfer by agreement as contemplated
hereunder has been approved by SASAC.

	 	  14.2	 	Amendments and Rescission

	 
	 	 	 	After execution, this Agreement may not be amended or rescinded by any party without
prior written consent from the other parties.

	 
	 	  14.3	 	Termination

	 
	 	 	 	At any time prior to the consummation of the Closing, this Agreement may be
terminated as follows:

	 	(a)	 	by mutual agreement among the parties hereto; or

	 
	 	(b)	 	by the Transferee at its own discretion, without any liability,
in case the Transferee is aware of any event that may have an adverse effect on
the Subject Interest or the Transferee or any representation, warranty or
covenant made by either Transferor has any omission or is misleading,
incomplete or accurate.

	 	  14.4	 	No Assignment

	 
	 	 	 	Without the written consent of the other parties, any party hereto may not transfer
any of its rights or obligations hereunder to any third party.

Article 15       Force Majeure

          If any party has been prevented from performing all or part of its obligations provided in
this Agreement because of an event of Force Majeure, including earthquake, typhoon, flood, fire,
war and any governmental interference, or change of circumstances, it shall promptly notify the
other parties in writing, and shall provide the other parties with details of the event of force
majeure or change of circumstances, as well as valid evidence supporting its inability to perform
all or part of its obligations hereunder or the reasons for the extension of the term for
performance within seven (7) days following the occurrence of such event. The parties shall
negotiate to terminate this Agreement, partially release or extend the term of the performance of
the affected obligations as necessary, based on the extent of the effect of such event on the
performance of this Agreement.

Article 16       Notices

	 	  16.1	 	Notices given hereunder shall be in writing and sent by facsimile, email, personal
delivery or mail. Any such notice shall be sent to the addressee at the following
address, and shall contain sufficient statements and/or details indicating that it
relates to the subject matters of this Agreement.

- 10 -

 

	 	 	 	 	 

	 	 	The contact information of the parties hereto is as follows:
	 
	 	 	 	 
	 	 	The Transferors:
	 
	 	 	 	 
	 	 	CNPC E&D
	 
	 	 	 	 
	 

	 	Address:
	 	Tower D, International Investment Building, 6 North
	 

	 	 	 	Fuchengmen Street, Xicheng District, Beijing
	 

	 	Attention:
	 	WANG Zhe
	 

	 	Tel:
	 	010-58551776 
	 

	 	Fax:
	 	010-58551003 
	 
	 	 	 	 
	 	 	CNPC Central Asia
	 
	 	 	 	 
	 

	 	Address:
	 	1 South Street, Qingnianhu Lake, Dongcheng District, Beijing
	 

	 	Attention:
	 	LI Panjun
	 

	 	Tel:
	 	010-62096059 
	 

	 	Fax:
	 	010-62096007 
	 
	 	 	 	 
	 	 	Transferee:
	 
	 	 	 	 
	 	 	PetroChina Company Limited
	 
	 	 	 	 
	 

	 	Address:
	 	9 Dongzhimen North Street, Dongcheng District, Beijing
	 

	 	Attention:
	 	WANG Chun
	 

	 	Tel:
	 	010-59984573 
	 

	 	Fax:
	 	010-62094518 

	 	16.2	 	Each notice given by facsimile, email or personal delivery shall be deemed to have
been duly delivered on the date such notice is sent out, unless the addressee furnish
proof to the contrary evidencing that it has not received such notice as a matter of
fact.

	 
	 	16.3	 	Each notice given by mail shall be deemed to have been duly delivered three (3)
business days after such notice is delivered to postal services, unless the addressee
furnish the proof to the contrary evidencing that it has not received such notice as a
matter of fact.

	 
	 	16.4	 	In case any party hereto intends to change its contact person or any other contact
information, such party shall notify the other parties in writing seven (7) business days
prior to such change.

Article 17      Governing Law and Dispute Resolution

	 	17.1	 	The formation, validity, performance, interpretation and enforceability as well as
any and all issues in connection with this Agreement shall be governed by the laws of the
PRC.

	 
	 	17.2	 	Any dispute arising from, out of or in connection with this Agreement shall be
settled through friendly consultations among the parties.

- 11 -

 

Article 18      Miscellaneous

	 	18.1	 	Maintenance of Normal Operation and Management

	 
	 	 	 	From the date hereof to the Closing Date, the parties hereto agree to maintain the
normal operation and management of the Target Company. Each of the Transferors
guarantees that the Target Company will not make any material change or conduct any
substantial disposal with respect to its human resources or assets, nor will it make
any change or conduct any disposal with respect to the Subject Interest or the human
resources relating thereto in a way contrary to the purpose of this Agreement. In the
event of any material changes to the Target Company other than in the ordinary course
of its business, each of the Transferors shall forthwith notify the Transferee in
writing of such changes.

	 
	 	18.2	 	Decision-making and Delivery of Operation and Management

	 
	 	 	 	As from the Closing Date, the Transferee shall have the right to nominate candidates
for members of the board of directors and the board of supervisors of the Target
Company, and to participate in the decision-making, operation and management of the
Target Company. Each of the Transferors shall do its best endeavors to provide any
and all assistance and deliver the relevant materials and documents in its possession
to the Transferee.

	 
	 	18.3	 	Disposal of Creditor’s Rights and Debts

	 
	 	 	 	Following the consummation of the Transfer, all the creditor’s rights, debts and other
contingent liabilities of the Target Company shall continue to be enjoyed and assumed
by the Target Company.

This Agreement shall be executed in nine (9) counterparts, with two for each party and the
remainder for standby purposes. All such counterparts shall have equal legal force.

[End of text]

- 12 -

 

(Signature page of the Equity Transfer Agreement by and among CNPC Exploration and Development
Company Limited, CNPC Central Asia Petroleum Company Limited and PetroChina Company Limited)

	 	 	 

	The Transferors:

	 	
	 
	 	 
	CNPC Exploration and Development
Company Limited

	 	CNPC Central Asia Petroleum Company Limited

	 
	 	 
	Legal Representatives or Authorized 

Representative: /s/Zhao Dong          

	 	Legal Representatives or Authorized

Representative: /s/ XIE Shiyao          

The Transferee:

PetroChina Company Limited (affixed with the company seal)

Legal Representatives or Authorized Representative:           /s/LI Hualin          

- 13 -EX-4.26

Exhibit 4.26

English Translation of Chinese Original

Asset Transfer Agreement

By and between

CNPC Liaoyang Petrochemical Fiber Company

And

PetroChina Liaoyang Petrochemical Company

Dated August 28, 2009

 

Table of Contents

	 	 	 	 	 	 	 

	ARTICLE 1
	 	DEFINITIONS

	 	 	2	 
	 	 	 
	 	 	 	 
	ARTICLE 2
	 	DELIVERY OF ASSETS

	 	 	3	 
	 	 	 
	 	 	 	 
	ARTICLE 3
	 	TRANSFER OF ASSETS

	 	 	3	 
	 	 	 
	 	 	 	 
	ARTICLE 4
	 	CLOSING

	 	 	4	 
	 	 	 
	 	 	 	 
	ARTICLE 5
	 	CONDITIONS PRECEDENT TO CLOSING

	 	 	5	 
	 	 	 
	 	 	 	 
	ARTICLE 6
	 	PARTY A’S POST-EXECUTION OBLIGATIONS

	 	 	5	 
	 	 	 
	 	 	 	 
	ARTICLE 7
	 	REPRESENTATIONS, WARRANTIES AND COVENANTS OF PARTY A

	 	 	5	 
	 	 	 
	 	 	 	 
	ARTICLE 8
	 	REPRESENTATIONS AND WARRANTIES OF PARTY B

	 	 	6	 
	 	 	 
	 	 	 	 
	ARTICLE 9
	 	EMPLOYEES

	 	 	6	 
	 	 	 
	 	 	 	 
	ARTICLE 10
	 	ACCESS TO INFORMATION

	 	 	6	 
	 	 	 
	 	 	 	 
	ARTICLE 11
	 	FORCE MAJEURE

	 	 	6	 
	 	 	 
	 	 	 	 
	ARTICLE 12
	 	COMMUNICATIONS

	 	 	7	 
	 	 	 
	 	 	 	 
	ARTICLE 13
	 	GOVERNING LAW AND DISPUTE RESOLUTION

	 	 	7	 
	 	 	 
	 	 	 	 
	ARTICLE 14
	 	OTHER PROVISIONS

	 	 	8	 
	 	 	 
	 	 	 	 
	EXHIBIT 1 FURTHER REPRESENTATIONS, WARRANTIES AND COVENANTS OF PARTY A	 	 	9	 
	 	 	 
	 	 	 	 
	EXHIBIT 2 SCOPE OF THE TARGET ASSETS	 	 	12	 

1

 

This Agreement is entered into by and between the following two parties in Liaoyang City on
August 28, 2009:

Party A: CNPC Liaoyang Petrochemical Fiber Company

Business License No.: 2110001100718

Registered Address: Liaoyang City, Liaoning Province

Party B: PetroChina Liaoyang Petrochemical Company

Business License No.: 211000004009999

Registered Address: Liaoyang City, Liaoning Province

Whereas,

(i)      Party A, a subsidiary of China National Petroleum Corporation (“CNPC”), is a wholly state-owned
company established under the laws of the PRC on October 6, 1998,

(ii)     Party B, a branch of PetroChina Company Limited, is established on December 2, 1999; and

(iii)    Party A has agreed to transfer to Party B, and Party B has agreed to purchase from Party A,
the refinery equipment and related assets (including liabilities associated therewith) owned by
Party A, on the terms and conditions of this Agreement.

NOW, THEREFORE, the Parties hereby reach agreement as follows:

Article 1     Definitions

	1.1	 	For purposes of this Agreement, unless otherwise specified in the context, terms used in this
Agreement and the exhibits hereto shall have the meanings set forth below:

	 	 	 	 	 	 

	 	“Agreement”

	 	 	shall mean this Asset Transfer Agreement entered into
by and between Party A and Party B on August 28, 2009;	 
	 	 
	 	 	 	 
	 	“Party A”

	 	 	shall mean CNPC Liaoyang Petrochemical Fiber Company
and its branches; and unless otherwise specified in the
context, the term “Party A” shall include the assets
and business of Party A;	 
	 	 
	 	 	 	 
	 	“Party B”

	 	 	shall mean PetroChina Liaoyang Petrochemical Company;
and unless otherwise specified in the context, the term
“Party B” shall include the assets and business of
Party B;	 
	 	 
	 	 	 	 
	 	“Target Assets”

	 	 	shall mean the refinery equipment and related assets to
be transferred hereunder, the scope of which is as
further set forth in Exhibit 2 hereto;	 
	 	 
	 	 	 	 
	 	“Closing”

	 	 	shall have the meaning set forth in Article 4 hereof;	 
	 	 
	 	 	 	 
	 

2

 

	 	 	 	 	 	 

	 	“Closing Date”

	 	 	shall mean the later of August 31, 2009 or the date on
which all the conditions set forth in Article 5 have
been satisfied;	 
	 	 
	 	 	 	 
	 	“Reference Date”

	 	 	shall mean February 28, 2009, the reference date for
the asset appraisal conducted for the purpose of the
transfer contemplated hereunder; and	 
	 	 
	 	 	 	 
	 	“Appraisal Report”

	 	 	shall mean the asset appraisal report issued by China
Enterprise Appraisal Co., Ltd. on May 31, 2009.	 
	 	 
	 	 	 	 
	 

	 	1.2	 	Unless otherwise specified herein, for the purposes of this Agreement,

	 	(a)	 	All references herein to a party shall include the successors
thereof;

	 	(b)	 	All references herein to Articles or Schedules shall refer to
Articles or Schedules of this Agreement;

	 	(c)	 	This Agreement shall be construed to refer to this Agreement as
extended, amended, modified or supplemented from time to time;

	 	(d)	 	Headings used herein are for convenience only, and shall not in
any way affect the interpretation or performance of this Agreement; and

	 	(e)	 	Any subsidiary or branch of Party A shall not include Party B
or any of its subsidiaries or branches.

Article 2          Delivery of Assets

	 	2.1	 	Subject to the terms and conditions of this Agreement, Party A shall deliver to
Party B, and Party B shall, in reliance on the applicable representations, warranties and
covenants of Party A set forth herein, accept from Party A, the Target Assets, together
all the rights associated therewith at present and in the future.
	 
	 	2.2	 	The Target Assets shall be as set forth in Exhibit 2 hereto.

Article 3          Transfer of Assets

The parties hereto agree that the price for the purchase of the Target Assets
hereunder shall be RMB 218,831,800 (the “Purchase Price”), as determined based on
the asset appraisal results set forth in the Appraisal Report prepared as of
February 28, 2009, adopting as the Reference Date. The Purchase Price, after being
adjusted by reference to the changes in the interest during the period from the
Reference Date and the Closing Date as reflected on the financial statements of
Party B, shall be paid to Party A in cash.

3

 

Article 4          Closing

	 	4.1	 	Date of Closing
	 
	 	 	 	The closing of the assets transfer contemplated hereunder (the “Closing”)
shall occur on the later of August 31, 2009 or the date on which all the conditions
set forth in Article 5 herein below are satisfied (either the “Closing
Date”).

	 
	 	4.2	 	At the Closing, Party A shall:

	 	4.2.1	 	deliver to Party B:

	 	(i)	 	the Target Assets and any and all the
certificates, deeds, operating licenses, title documents and any other
instruments (including without limitation, land use right certificates,
certificate of title to buildings, account books, property insurance
policies and receipt of premiums) indicating that all benefits to the
ownership and operating rights of the Target Assets are obtained by
Party B;

	 
	 	(ii)	 	any and all the required third party consents
necessary for the transfer of the Target Assets, including without
limitation, consent letters from relevant creditors and approvals from
relevant governmental authorities; and

	 
	 	(iii)	 	any and all the effective contracts, account
books, certificates, records and other documents, including financial
records, that are possessed or controlled by Party A in connection with
the Target Assets.

	 	4.2.2	 	permit Party B to take possession of the Target Assets.

	 	4.3	 	As from the Closing Date, Party B shall obtain the Target Assets and all the
interest accrued thereon. Party B shall become the exclusive owner of the Target Assets
and have all the right to operate the Target Assets as from the Closing Date.

	 	4.4	 	Except as otherwise specified herein, any and all the profits, benefits, claims,
liabilities and any other rights and obligations generated by the Target Assets prior to
the Closing Date shall be owned and assumed by Party A.

	 	4.5	 	In case Party A fails to fully comply with Section 4.2, Party B may at its own
option, conduct the Closing as practicable, without any prejudice to any remedies
otherwise available to Party B or any of Party B’s rights hereunder.

	 	4.6	 	The Parties agree that after the Closing Date they shall carry out the registration
of the changes relating to the Target Assets. Party A shall be obligated to cooperate
with Party B to reapply for the certificates of operation qualifications and any other
relevant qualifications and certificates relating to the Target Assets, and proactively
assist Party B to carry out the registration of the relevant title changes.

4

 

Article 5          Conditions Precedent to Closing

	 	5.1	 	The Closing shall be subject to the satisfaction of all the following conditions:

	 	(a)	 	Party B has completed the due diligence with respect to the
Target Assets;

	 
	 	(b)	 	Party A has obtained all the required consents to the transfer
of the Target Assets from the creditors and any other relevant third parties;

	 
	 	(c)	 	there does not occur any material adverse change to the
operation or technical performance of the Target Assets; or

	 
	 	(d)	 	as at the Closing Date, all the representations, warranties and
covenants made by Party A herein shall remain true, accurate, complete and
valid.

	 	5.2	 	The parties hereto shall make all reasonable efforts to ensure that the conditions
set forth in Section 5.1 will be fulfilled by August 31, 2009. In case any condition set
forth in Section 5.1 fails to be fulfilled by August 31, 2009 for any reason attributable
to Party A, Party B shall have the right to terminate this Agreement.

	 	5.3	 	The parties hereto agree that in case any regulatory authority of the jurisdiction
in which either party is listed or any PRC relevant governmental authority imposes any
condition for the approval to the transfer of the Target Assets, the parties hereto shall
negotiate to make corresponding and appropriate amendments to this Agreement and any
other terms of the transaction based on such conditions. In case such negotiations fail
and the performance of this Agreement will render either Party A or Party B to violate
any PRC laws and/or any listing rules, such party shall have the right to terminate this
Agreement at its own discretion.

Article 6          Party A’s Post-execution Obligations

	 	6.1	 	Party A undertakes to Party B that following the Closing it will continue to make
its best efforts to provide Party B with any and all the information and assistance in
connection with the operation and maintenance of any Target Assets reasonably requested
by Party B.

	 	6.2	 	As from the execution of this Agreement, without consent from Party B, Party A may
not use or disclose or divulge to any third party, any information relating to any Target
Assets, except where the information is otherwise available in the public domain or where
disclosure is required by the orders of a court having competent jurisdiction or any
relevant regulatory authority.

Article 7          Representations, Warranties and Covenants of Party A

	 	7.1	 	Party A hereby makes the representations, warranties and covenants in accordance
with the terms set forth under Exhibit 1 (“Warranties”) to Party B, 

5

 

	 	 	 	and
acknowledges that Party B executes this Agreement in reliance on the Warranties.

	 	7.2	 	Each Warranty of Party A set forth in Exhibit 1 shall be severable and independent,
and none of other provisions in this Agreement or the exhibits hereto may limit any
Warranties.

	 	7.3	 	Party A hereby further undertakes to indemnify Party B in full against any and all
losses or liabilities, including but not limited to, any diminution of the value of any
Target Assets, arising from breaches of any Warranties by Party A. In the event of any
breach by Party A of Article 1 or 2 of Exhibit 1 hereto, Party B shall have the right to
terminate this Agreement.

	 	7.4	 	Both before and after the Closing, Party A shall promptly inform Party B in writing
of any violations of the Warranties or any matters not consistent with the Warranties it
becomes aware of.

Article 8          Representations and Warranties of Party B

       Party B hereby represents and warrants to Party A that from the date of this Agreement to the
Closing Date (inclusive):

	 	8.1	 	Party B is a branch of PetroChina Company Limited validly existing under
applicable laws.

	 	8.2	 	Party B has all necessary authority to enter into and perform this Agreement.

	 	8.3	 	The execution and performance of this Agreement by Party B does not violate any
laws or regulations applicable to it.
	 
	 	8.4	 	This Agreement constitutes a valid and binding contract of Party B.

Article 9          Employees

       Party A’s contractual employees working for the Target Assets shall be transferred to Party B
and Party B may continue to use any other employees of Party A to satisfy its own business
requirements.

Article 10          Access to Information

       From the date of this Agreement, Party A shall provide Party B and any persons authorized by
Party B with and shall cause such person to be provided with access to (including the right to make
copies of, where necessary) all materials regarding the Target Assets, and all books, title
instruments, contracts, records and any other documents regarding the Target Assets, and the
executive officers and employees of Party A shall promptly furnish such materials and explanations
with respect thereto to any such persons.

Article 11          Force Majeure

       If a party has been prevented from performing all or part of its obligations provided in

6

 

this
Agreement because of an event of Force Majeure, including earthquake, typhoon, flood, fire, war and
any governmental interference, or change of circumstances, it shall immediately notify the other
Party in writing, and shall provide details of the event of Force Majeure or
change of circumstances, as well as valid evidence supporting its inability to perform all or
part of its obligations hereunder or the reasons for the extension of the term for performance,
within seven (7) days following the occurrence of such an event. The parties shall negotiate to
terminate this Agreement, partially release or extend the term for performance of the affected
obligations, as necessary, based on the extent of the effect of such event on the performance of
this Agreement.

Article 12          Communications

          Notices or other communications required to be given by either party hereto pursuant to this
Agreement shall be written in Chinese and sent by personal delivery or in registered mail or
facsimile to the address/fax number of the other party set forth below, and shall be deemed to have
been duly given (i) on the date of delivery if by personal delivery, (ii) seven (7) days (excluding
public holidays) after being delivered to postal services (as indicated by the postmark) if by
registered mail, or (iii) upon the completion of transmission if by facsimile; provided, however,
that the sender shall provide the intended recipient with the electronic answerbacks printed out by
the sender’s facsimile machine indicating the complete transmission of the relevant notice or other
communication to the intended recipient.

          If to Party A:

CNPC Liaoyang Petrochemical Fiber Company

Address: 5-1 Huoju Dajie, Hongwei District, Liaoyang City, Liaoning

Province, 111003

Fax: 0419-5355566

          If to Party B:

PetroChina Liaoyang Petrochemical Company

Address: 5-1 Huoju Dajie, Hongwei District, Liaoyang City, Liaoning

Province, 111003

Fax: 0419-5355566

Article 13          Governing Law and Dispute Resolution

	 	13.1	 	This Agreement shall be governed by and construed in accordance with the laws of
the PRC.

	 	13.2	 	Any dispute arising from, out of or in connection with this Agreement shall be
settled through friendly consultations between Party A and Party B. If any dispute
cannot be settled through consultations, such dispute shall be submitted to the
respective supervisory organ of each party for resolution through further consultations.
Where any dispute still fails to be resolved

7

 

	 	 	 	through such further consultations, either
Party A or Party B may refer such dispute to the Arbitration Commission at the place
which this Agreement is executed. Such dispute shall be finally settled by arbitration
in accordance
with the then effective rules of arbitration of such Arbitration Commission. An
arbitral award is final and binding upon both parties.

Article 14          Other Provisions

	 	14.1	 	The parties shall be solely responsible for their own costs and expenses arising
from the transfer of the Target Assets hereunder according to the applicable laws.

	 	14.2	 	The invalidity, illegality or unenforceability of any term or provision of this
Agreement in any aspect at any time may not affect or prejudice the legality, validity
and enforceability of any other terms and provisions of this Agreement.

	 	14.3	 	This Agreement may not be assigned by either party hereto without consent from the
other party hereto.

	 	14.4	 	This Agreement together with any documents referred to herein shall constitute an
entire agreement between the parties hereto. The parties expressly represent that any
amendment to this Agreement shall be invalid unless in writing.

	 	14.5	 	This Agreement shall come into effect upon being executed and stamped by the
representative of each party.

Party A

CNPC Liaoyang Petrochemical Fiber Company (company seal)

Authorized representative: /s/ GENG Chenghui

Party B:

PetroChina Liaoyang Petrochemical Company (company seal)

Authorized representative: /s/ PAN Daqiang

8

 

Exhibit 1 Further Representations, Warranties and Covenants of Party A

                          Party A hereby represents, warrants and undertakes to Party B that unless otherwise agreed
between the parties hereto, as of the Closing Date:

1. Corporate Matters

	1.1	 	Party A is a wholly state-owned enterprise duly organized and validly existing under the laws
of the PRC and has full and legal rights to own its assets and operate its business.
	 
	1.2	 	The business license, articles of association and other documents of Party A provided to
Party B are accurate and complete, and for documents provided in photocopy, photocopies
conform with the original.
	 
	1.3	 	Party A has all necessary power and authority to execute this Agreement and perform its
obligations hereunder.
	 
	1.4	 	This Agreement and any other documents to be executed by Party A pursuant to this Agreement
shall constitute the valid and binding obligations of Party A, which are enforceable in
accordance with the relevant terms.

2. Approvals

	2.1	 	The transfer of the Target Assets by Party A to Party B shall be conducted in accordance with
the PRC laws.
	 
	2.2	 	At the Closing Date, all governmental approvals required for the transfer of the Target
Assets, including but not limited to, the required approval for the change of land use rights
certificates and title certificates, shall have been obtained, and Party A does not receive
any written or oral notice that such approvals have been cancelled.
	 
	2.3	 	Party A has been granted all necessary authorization for the execution and performance of
this Agreement.

	2.4	 	The execution and performance of this Agreement do not violate any applicable laws or
regulations.

3. Ownership and Conditions of Assets

	3.1	 	Except as otherwise indicated, none of the Target Assets are subject to any encumbrance of
any form. In the event of any legal proceedings in respect of financial guarantees or any
other disputes arising prior to the Closing Date, such proceedings or disputes shall be
assumed by Party A. Details regarding the Target Assets set forth in Exhibit 2 are
true, complete and accurate in all aspects.
	 
	3.2	 	Party A shall have full ownership and/or use right to Target Assets, and there does not exist
any requirement requiring that all or any portion of the Target Assets shall be transferred to
any third party.

9

 

	3.3	 	The construction and operation of the Target Assets have been approved by the competent PRC
authorities and do not violate any PRC law or regulation.

	 
	3.4	 	Party A has been operating the Target Assets in compliance with the applicable PRC laws and
regulations.

	 
	3.5	 	The machines, equipment, buildings and other overground and underground structures forming a
part of the Target Assets are substantially in a sound status and fit for their intended
purposes.

	 
	3.6	 	There is no dispute with the adjacent property owners or the competent authorities of
state-owned land resources in relation to the demarcation lines or passages of any land,
buildings and other structures forming a part of the Target Assets, .

	 
	3.7	 	There has never occurred any material interruption in the public utilities, such as the water
supply, drainage, electricity supply or gas supply, in the buildings or other overground and
underground structures that form a part of the Target Assets.

	 
	3.8	 	Party A holds good and transferable title and/or use right to the land, buildings and other
structures that form a part of the Target Assets and are owned by Party A, and is the legal
and de facto owner thereof under applicable laws and regulations.

	 
	4.	 	Continuous Operations
	 
	 	 	To the knowledge of Party A, there was/is not any circumstance which may materially affect the
continuous operation of the Target Assets after Closing.

	 
	5.	 	Confidential Information
	 
	 	 	Any activity conducted by Party A on the Target Assets does not infringe on or abuse any
know-how, customer or supplier list, trade secrets, proprietary technologies, patents or other
confidential information of any third parties.

	 
	6.	 	Environmental Compliance
	 
	 	 	In the course of construction and operation of the Target Assets, Party A has always been in
full compliance with any and all applicable laws and regulations regarding environmental
protection (“Environmental Laws and Regulations”), and has never been subject to any
governmental punishment due to the violation of any Environmental Laws and Regulations. Party
A has sufficient resources and facilities, and will, at Party B’s request, assist Party B
after Closing in complying with all Environmental Laws and Regulations which are currently in
effect.

	 
	7.	 	Accuracy of the Information Provided
	 
	7.1	 	All the information contained in this Agreement (including without limitation, those covered
in the preamble hereof) is true and accurate.

	 
	7.2	 	All the information provided by Party A prior to the execution of this Agreement to Party B
and its professional advisors, officers and other staff in connection with the Target Assets
was/will be true and accurate at the time of provision and during the period from the
execution of this Agreement to the Closing Date. In addition, there

10

 

	 	 	does not exist any fact or circumstance that may render any of the above information untrue,
inaccurate or misleading and has not been disclosed to Party B or its professional advisors in
writing.

	 
	8.	 	Indemnification
	 
	8.1	 	Party A undertakes to indemnify Party B for any claims arising from Party A’s violation of
any provision hereunder, including without limitation, Article 7 herein and “Further
Representations, Warranties and Covenants of Party A” as set forth in Exhibit 1.

11

 

Exhibit 2 Scope of the Target Assets

The Target Assets shall include without limitation, all the assets, liabilities and interests
associated with Party A, which in particular, include the following assets:

	1.	 	such assets as machinery and equipment and ancillary devices, facilities and the buildings
and other structures owned by any relevant entity of Party A;

	 
	2.	 	the rights and obligations under the contracts and agreements (including any amendments and
supplements thereto) executed by Party A in respect of the Target Assets, including title to
buildings and guarantees with respect to such contracts and agreements;

	 
	3.	 	if transferrable in accordance with applicable laws, the entire interests under any and all
the permits, licenses, approval certificates, certificates, power of attorney, and any other
similar documents possessed or owned by any relevant entity of Party A in connection with the
operation of the Target Assets;

	 
	4.	 	rights to claim, set-off rights or any other similar rights of any relevant entity of Party A
against any third party, in each case, relating to or arising from the Target Assets; and

	 
	5.	 	business records, accounting records, operating records, operating data, operating
statistical data, manuals, maintenance handbooks, training handbooks and relevant technical
records, technical documentation, technical data, technical drawings, technical handbooks,
technical books, project research and development records and any other know-how possessed by
Party A in connection with the Target Assets, whether saved in written, electronic or any
other media.

Any other assets set forth in the Appraisal Report. The parties hereto agree that where they have
any disagreement on the understanding of the Target Assets set forth in this Schedule, the contents
of the Appraisal Report shall prevail.

12

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