Document:

Exhibit
10.2

     

    REGISTRATION
RIGHTS AGREEMENT

     

    This
Registration Rights Agreement (this “Agreement”) is made and entered into as
of is dated as of [Closing Date], between MGT Capital Investments, Inc., a
Delaware corporation (the “Company”), and
Laddcap Value Partners, LP, a Delaware limited partnership (or an affiliate
thereof) (the “Purchaser”).

     

    This
Agreement is made in connection with the Amended and Restated Securities
Purchase Agreement, dated as of December 9, 2010, by and between the Company and
the Purchaser (the “Purchase
Agreement”).

     

    The
Company and Purchasers hereby agree as follows:

     

    1.           Definitions.
Capitalized terms used and not otherwise defined herein that are defined in the
Purchase Agreement will have the respective meanings given such terms in the
Purchase Agreement. As used in this Agreement, the following terms have the
respective meanings set forth in this Section 1:

     

    “Advice” has the meaning set forth in
Section 6(d).

     

    “Commission
Comments” means
written comments pertaining solely to Rule 415 which are received by the Company
from the Commission to a filed Registration Statement, a copy of which shall
have been provided by the Company to the Holders, which either (i) requires the
Company to limit the number of Registrable Securities which may be included
therein to a number which is less than the number sought to be included thereon
as filed with the Commission or (ii) requires the Company to either exclude
Registrable Securities held by specified Holders or deem such Holders to be
underwriters with respect to Registrable Securities they seek to include in such
Registration Statement.

     

    “Cut Back Shares” has
the meaning set forth in Section 2(e).

     

    “Demand Date” means
the date on which the Purchaser provides notice to the Company of its request
that the Company file the Registration Statement.

     

    “Effective Date” means, as to a Registration
Statement, the date on which such Registration Statement is first declared
effective by the Commission.

     

    “Effectiveness
Date” means the
earlier of: (i) the 120th day following the Demand Date; and (ii) the fifth
Trading Day following the date on which the Company is notified by the
Commission that the Registration Statement will not be reviewed or is no longer
subject to further review and comments.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    “Effectiveness
Period” means the
period commencing on the Effective Date of the Registration Statement and ending
on the earliest to occur of (a) the second anniversary of such Effective Date,
(b) such time as all of the Registrable Securities covered by such Registration
Statement have been publicly sold by the Holders of the Registrable Securities
included therein, or (c) such time as all of the Registrable Securities covered
by such Registration Statement may be sold by the Holders without volume
restrictions pursuant to Rule 144, in each case as determined by the counsel to
the Company pursuant to a written opinion letter to such effect, addressed and
acceptable to the Company’s transfer agent and the affected
Holders.

     

    “Exchange Act” means the Securities
Exchange Act of 1934, as amended.

     

    “Filing Date” means the date that is sixty
(60) days from the Demand Date.

     

    “Holder” or “Holders” means the holder or holders,
as the case may be, from time to time of Registrable Securities.

     

    “Indemnified
Party” has the
meaning set forth in Section 5(c).

     

    “Indemnifying
Party” has the
meaning set forth in Section 5(c).

     

    “Losses” has the meaning set forth in
Section 5(a).

     

    “New York Courts” means the state and federal
courts sitting in the City of New York, Borough of Manhattan.

     

    “Proceeding” means an action, claim,
suit, investigation or proceeding (including, without limitation, an informal
investigation or partial proceeding, such as a deposition), whether commenced or
threatened.

     

    “Prospectus” means the prospectus
included in a Registration Statement (including, without limitation, a
prospectus that includes any information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act), as amended or supplemented by any
prospectus supplement, with respect to the terms of the offering of any portion
of the Registrable Securities covered by a Registration Statement, and all other
amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be
incorporated by reference in such Prospectus.

     

    “Registrable
Securities” means
the Shares and any securities issued or issuable upon any stock split, dividend
or other distribution, recapitalization or similar event, or any price
adjustment as a result of such stock splits, reverse stock splits or similar
events with respect to the Shares.

     

    “Registration
Statement” means
the registration statement required to be filed in accordance with Section 2 and
any additional registration statements required to be filed under this
Agreement, including in each case the Prospectus, amendments and supplements to
such registration statements or Prospectus, including pre- and post-effective
amendments, all exhibits thereto, and all material incorporated by reference or
deemed to be incorporated by reference therein.

     

    “Restriction Termination
Date” has the meaning set forth in Section 2(b).

    
      
         

      

      
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    “Rule 144” means Rule 144 promulgated
by the Commission pursuant to the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
Commission having substantially the same effect as such Rule.

     

    “Rule 415” means Rule 415 promulgated
by the Commission pursuant to the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
Commission having substantially the same effect as such Rule.

     

    “Rule 424” means Rule 424 promulgated
by the Commission pursuant to the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
Commission having substantially the same effect as such Rule.

     

    “SEC Restrictions” has
the meaning set forth in Section 2(b).

     

    “Securities Act” means the Securities Act of
1933, as amended.

     

    “Shares” means the shares of Common
Stock, par value $0.001 per share, issued to the Purchasers pursuant to the
Purchase Agreement.

     

    2.           Registration.

     

    (a)           On
or after the earlier of (i) the later of (A) the date on which the Company files
its Annual Report on Form 10-K with respect to its 2010 fiscal year, (B) the
date on which the registration statement for the Medicsight PLC shares of common
stock owned by the Company is declared effective by the SEC, and (C) the date on
which all of the assets of MGT (UK) have been disposed of, and (ii) June 30,
2011, the Purchaser shall have the right to request that the Company file the
Registration Statement and, upon receipt such request, the Company shall prepare
and file the Registration Statement on the terms and conditions set forth in
this Agreement. On or prior to the Filing Date, the Company shall prepare and
file with the Commission a Registration Statement on Form S-3 covering the
resale of the Shares if the Company is then eligible to utilize such Form (or on
such other form appropriate for such purpose) and shall cause such Registration
Statement to be filed by the Filing Date for such Registration Statement and use
commercially reasonable efforts to have the Registration Statement declared
effective under the Securities Act as soon as possible thereafter, but in any
event prior to the Effectiveness Date therefor. Such Registration Statement
shall contain (except if otherwise required pursuant to written comments
received from the Commission upon a review of such Registration Statement, other
than as to the characterization of any Holder as an underwriter, which shall not
occur without such Holder’s consent) the “Plan of Distribution” attached hereto
as Annex A. The
Company shall use its commercially reasonable efforts to keep such Registration
Statement continuously effective under the Securities Act during the entire
Effectiveness Period which is applicable to it. By 5:00 p.m. (New York City
time) on the Business Day immediately following the Effective Date of such
Registration Statement, the Company shall file with the Commission in accordance
with Rule 424 under the Securities Act the final prospectus to be used in
connection with sales pursuant to such Registration Statement (whether or not
such filing is technically required under such Rule). The Company hereby
represents and warrants to the Purchasers that as of the date hereof the Company
is eligible to use Form S-3 for the registration of the Registrable
Securities.

    
      
         

      

      
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    (b)           If
for any reason other than due solely to SEC Restrictions, a Registration
Statement is effective but not all outstanding Registrable Securities are
registered for resale pursuant thereto, then the Company shall prepare and file
by the applicable Filing Date an additional Registration Statement to register
the resale of all such unregistered Registrable Securities for an offering to be
made on a continuous basis pursuant to Rule 415. Notwithstanding anything to the
contrary contained in this Section 2, if the Company receives Commission
Comments, and following discussions with and responses to the Commission in
which the Company uses its commercially reasonable efforts and time to cause as
many Registrable Securities for as many Holders as possible to be included in
the Registration Statement filed pursuant to Sections 2(a), without
characterizing any Holder as an underwriter (and in such regard uses its
commercially reasonable efforts to cause the Commission to permit the affected
Holders or their respective counsel to participate in Commission conversations
on such issue together with Company Counsel, and timely conveys relevant
information concerning such issue with the affected Holders or their respective
counsel), the Company is unable to cause the inclusion of all Registrable
Securities, then the Company may, following not less than three (3) Trading Days
prior written notice to the Holders (i) remove from the Registration Statement
such Registrable Securities (the “Cut Back Shares”)
and/or (ii) agree to such restrictions and limitations on the registration and
resale of the Registrable Securities, in each case as the Commission may require
in order for the Commission to allow such Registration Statement to become
effective; provided, that in no
event may the Company name any Holder as an underwriter without such Holder’s
prior written consent (collectively, the “SEC Restrictions”).
Unless the SEC Restrictions otherwise require, any cut-back imposed pursuant to
this Section 2(b) shall be allocated among the Registrable Securities of the
Holders on a pro rata basis. No liquidated damages under Section 2(c) shall
accrue on or as to any Cut Back Shares, and the required Effectiveness Date for
such Registration Statement will be tolled, until such time as the Company is
able to effect the registration of the Cut Back Shares in accordance with any
SEC Restrictions (such date, the “Restriction Termination
Date”). From and after the Restriction Termination Date, all provisions
of this Section 2 (including, without limitation, the liquidated damages
provisions, subject to tolling as provided above) shall again be applicable to
the Cut Back Shares (which, for avoidance of doubt, retain their character as
“Registrable Securities”) so that the Company will be required to file with and
cause to be declared effective by the Commission such additional Registration
Statements in the time frames set forth herein as necessary to ultimately cause
to be covered by effective Registration Statements all Registrable Securities
(if such Registrable Securities cannot at such time be resold by the Holders
thereof without volume limitations pursuant to Rule 144).

     

    (c)           If:
(i) a Registration Statement is not filed on or prior to its Filing Date
covering the Registrable Securities required under this Agreement to be included
therein (if the Company files a Registration Statement without affording the
Holders the opportunity to review and comment on the same as required by Section
3(a) hereof, the Company shall not be deemed to have satisfied this clause (i)),
(ii) a Registration Statement is not declared effective by the Commission on or
prior to its required Effectiveness Date or if by the Business Day immediately
following the Effective Date, the Company shall not have filed a “final”
prospectus for the Registration Statement with the Commission under Rule 424(b)
in accordance with the terms hereof (whether or not such a prospectus is
technically required by such Rule), or (iii) after its Effective Date, without
regard for the reason thereunder or efforts therefor, such Registration
Statement ceases for any reason to be effective and available to the Holders as
to all Registrable Securities to which it is required to cover at any time prior
to the expiration of its Effectiveness Period for more than an aggregate of 20
Trading Days (which need not be consecutive) (any such failure or breach being
referred to as an “Event,” and for purposes of clauses
(i) or (ii) the date on which such Event occurs, or for purposes of clause (iii)
the date which such 20 Trading Day-period is exceeded, being referred to as
“Event Date”), then the Holders are
entitled to exercise such rights they may have hereunder or under applicable
law.

    
      
         

      

      
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    (d)           Each
Holder agrees to furnish to the Company a completed Questionnaire in the form
attached to this Agreement as Annex B (a “Selling Holder
Questionnaire”).
The Company shall not be required to include the Registrable Securities of a
Holder in a Registration Statement and shall not be required to pay any
liquidated or other damages under Section 2(c) to any Holder who fails to
furnish to the Company a fully completed Selling Holder Questionnaire at least
two Trading Days prior to the Filing Date (subject to the requirements set forth
in Section 3(a)). In addition to the foregoing, each Holder shall provide such
other information to the Company as the Company may from time-to-time reasonably
request.

     

    3.           Registration
Procedures.

     

    In
connection with the Company’s registration obligations hereunder, the Company
shall:

     

    (a)           Not
less than four Trading Days prior to the filing of a Registration Statement or
any related Prospectus or any amendment or supplement thereto, the Company shall
furnish to each Holder copies of the “Selling Stockholders” section of such
document, the “Plan of Distribution” and any risk factor contained in such
document that addresses specifically this transaction or the Selling
Stockholders, as proposed to be filed, which documents will be subject to the
review of such Holder. The Company shall not file a Registration Statement, any
Prospectus or any amendments or supplements thereto in which the “Selling
Stockholder” section thereof differs from the disclosure received from a Holder
in its Selling Holder Questionnaire (as amended or supplemented). The Company
shall not file a Registration Statement, any Prospectus or any amendments or
supplements thereto in which it (i) characterizes any Holder as an underwriter,
(ii) excludes a particular Holder due to such Holder refusing to be named as an
underwriter, or (iii) reduces the number of Registrable Securities being
registered on behalf of a Holder except pursuant to, in the case of subsection
(iii), the Commission Comments, without, in each case, such Holder’s express
written authorization.

     

    (b)           (i)           Prepare
and file with the Commission such amendments, including post-effective
amendments, to each Registration Statement and the Prospectus used in connection
therewith as may be necessary to keep such Registration Statement continuously
effective as to the applicable Registrable Securities for its Effectiveness
Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of the
Registrable Securities; (ii) cause the related Prospectus to be amended or
supplemented by any required Prospectus supplement, and as so supplemented or
amended to be filed pursuant to Rule 424; (iii) respond as promptly as
reasonably possible to any comments received from the Commission with respect to
each Registration Statement or any amendment thereto and, as promptly as
reasonably possible provide the Holders true and complete copies of all
correspondence from and to the Commission relating to such Registration
Statement that would not result in the disclosure to the Holders of material and
non-public information concerning the Company; and (iv) comply in all material
respects with the provisions of the Securities Act and the Exchange Act with
respect to the Registration Statement(s) and the disposition of all Registrable
Securities covered by each Registration Statement.

    
      
         

      

      
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    (c)           Notify
the Holders as promptly as reasonably possible (and, in the case of (i)(A)
below, not less than three Trading Days prior to such filing and, in the case of
(v) below, not less than three Trading Days prior to the financial statements in
any Registration Statement becoming ineligible for inclusion therein) and (if
requested by any such Person) confirm such notice in writing no later than one
Trading Day following the day (i)(A) when a Prospectus or any Prospectus
supplement or post-effective amendment to a Registration Statement is proposed
to be filed; (B) when the Commission notifies the Company whether there will be
a “review” of such Registration Statement and whenever the Commission comments
in writing on such Registration Statement (the Company shall provide true and
complete copies thereof and all written responses thereto to each of the Holders
that pertain to the Holders as a Selling Stockholder or to the Plan of
Distribution, but not information which the Company believes would constitute
material and non-public information); and (C) with respect to each Registration
Statement or any post-effective amendment, when the same has become effective;
(ii) of any request by the Commission or any other Federal or state governmental
authority for amendments or supplements to a Registration Statement or
Prospectus or for additional information; (iii) of the issuance by the
Commission of any stop order suspending the effectiveness of a Registration
Statement covering any or all of the Registrable Securities or the initiation of
any Proceedings for that purpose; (iv) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction, or the initiation or threatening of any Proceeding for such
purpose; and (v) of the occurrence of any event or passage of time that makes
the financial statements included in a Registration Statement ineligible for
inclusion therein or any statement made in such Registration Statement or
Prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or that requires any revisions to such
Registration Statement, Prospectus or other documents so that, in the case of
such Registration Statement or the Prospectus, as the case may be, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not
misleading.

     

    (d)           Use
its commercially reasonable efforts to avoid the issuance of, or, if issued,
obtain the withdrawal of (i) any order suspending the effectiveness of a
Registration Statement, or (ii) any suspension of the qualification (or
exemption from qualification) of any of the Registrable Securities for sale in
any jurisdiction, at the earliest practicable moment.

     

    (e)           Furnish
to each Holder, without charge, at least one copy of each Registration Statement
and each amendment thereto and all exhibits to the extent requested by such
Person (including those previously furnished) promptly after the filing of such
documents with the Commission.

    
      
         

      

      
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    (f)        
   Promptly deliver to each Holder, without charge, as many
copies of each Prospectus or Prospectuses (including each form of prospectus)
and each amendment or supplement thereto as such Persons may reasonably request.
The Company hereby consents to the use of such Prospectus and each amendment or
supplement thereto by each of the selling Holders in connection with the
offering and sale of the Registrable Securities covered by such Prospectus and
any amendment or supplement thereto.

     

    (g)           Prior
to any public offering of Registrable Securities, register or qualify such
Registrable Securities for offer and sale under the securities or Blue Sky laws
of all jurisdictions within the United States as any Holder may request, to keep
each such registration or qualification (or exemption therefrom) effective
during the Effectiveness Period and to do any and all other acts or things
necessary or advisable to enable the disposition in such jurisdictions of the
Registrable Securities covered by the Registration Statement(s).

     

    (h)           Cooperate
with the Holders to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be delivered to a transferee
pursuant to the Registration Statement(s), which certificates shall be free, to
the extent permitted by the Purchase Agreement, of all restrictive legends, and
to enable such Registrable Securities to be in such denominations and registered
in such names as any such Holders may request.

     

    (i)      
     Upon the occurrence of any event contemplated by
Section 3(c)(v), as promptly as reasonably possible, prepare a supplement or
amendment, including a post-effective amendment, to the affected Registration
Statements or a supplement to the related Prospectus or any document
incorporated or deemed to be incorporated therein by reference, and file any
other required document so that, as thereafter delivered, no Registration
Statement nor any Prospectus will contain an untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading.

     

    4.           Registration
Expenses.

     

    All fees
and expenses incident to the performance of or compliance with this Agreement by
the Company shall be borne by the Company whether or not any Registrable
Securities are sold pursuant to a Registration Statement. The fees and expenses
referred to in the foregoing sentence shall include, without limitation, (i) all
registration and filing fees (including, without limitation, fees and expenses
(A) with respect to filings required to be made with any Trading Market on which
the Common Stock is then listed for trading, and (B) in compliance with
applicable state securities or Blue Sky laws), (ii) printing expenses
(including, without limitation, expenses of printing certificates for
Registrable Securities and of printing prospectuses if the printing of
prospectuses is reasonably requested by the holders of a majority of the
Registrable Securities included in the Registration Statement), (iii) messenger,
telephone and delivery expenses, (iv) fees and disbursements of counsel for the
Company, (v) Securities Act liability insurance, if the Company so desires such
insurance, and (vi) fees and expenses of all other Persons retained by the
Company in connection with the consummation of the transactions contemplated by
this Agreement. In addition, the Company shall be responsible for all of its
internal expenses incurred in connection with the consummation of the
transactions contemplated by this Agreement (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange as required hereunder.

    
      
         

      

      
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    5.           Indemnification.

     

    (a)           Indemnification by the
Company. The Company shall, notwithstanding any termination of this
Agreement, indemnify and hold harmless each Holder, the officers, directors,
agents, investment advisors, partners, members and employees of each of them,
each Person who controls any such Holder (within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act) and the officers,
directors, agents and employees of each such controlling Person, to the fullest
extent permitted by applicable law, from and against any and all losses, claims,
damages, liabilities, costs (including, without limitation, reasonable costs of
preparation and reasonable attorneys’ fees) and expenses (collectively, “Losses”), as
incurred, arising out of or relating to any untrue or alleged untrue statement
of a material fact contained in any Registration Statement, any Prospectus or
any form of prospectus or in any amendment or supplement thereto or in any
preliminary prospectus, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein (in the case of any Prospectus or form of prospectus or
supplement thereto, in light of the circumstances under which they were made)
not misleading, except to the extent, but only to the extent, that (1) such
untrue statements or omissions are based solely upon information regarding such
Holder furnished in writing to the Company by such Holder expressly for use
therein, or to the extent that such information relates to such Holder or such
Holder’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in
the Registration Statement, such Prospectus or such form of Prospectus or in any
amendment or supplement thereto (it being understood that the Holder has
approved Annex A hereto for this purpose) or (2) in the case of an occurrence of
an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder
of an outdated or defective Prospectus after the Company has notified such
Holder in writing that the Prospectus is outdated or defective and prior to the
receipt by such Holder of an Advice or an amended or supplemented Prospectus,
but only if and to the extent that following the receipt of the Advice or the
amended or supplemented Prospectus the misstatement or omission giving rise to
such Loss would have been corrected. The Company shall notify the Holders
promptly of the institution, threat or assertion of any Proceeding of which the
Company is aware in connection with the transactions contemplated by this
Agreement.

    
      
         

      

      
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    (b)           Indemnification by
Holders. Each Holder shall, severally and not jointly, indemnify and hold
harmless the Company, its directors, officers, agents and employees, each Person
who controls the Company (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers, agents or
employees of such controlling Persons, to the fullest extent permitted by
applicable law, from and against all Losses, as incurred, arising solely out of
or based solely upon: (x) such Holder’s failure to comply with the prospectus
delivery requirements of the Securities Act or (y) any untrue statement of a
material fact contained in any Registration Statement, any Prospectus, or any
form of prospectus, or in any amendment or supplement thereto, or arising solely
out of or based solely upon any omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading to the
extent, but only to the extent that, (1) such untrue statements or omissions are
based solely upon information regarding such Holder furnished in writing to the
Company by such Holder expressly for use therein, or to the extent that such
information relates to such Holder or such Holder’s proposed method of
distribution of Registrable Securities and was reviewed and expressly approved
in writing by such Holder expressly for use in the Registration Statement (it
being understood that the Holder has approved Annex A hereto for this purpose),
such Prospectus or such form of Prospectus or in any amendment or supplement
thereto or (2) in the case of an occurrence of an event of the type specified in
Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective
Prospectus after the Company has notified such Holder in writing that the
Prospectus is outdated or defective and prior to the receipt by such Holder of
an Advice or an amended or supplemented Prospectus, but only if and to the
extent that following the receipt of the Advice or the amended or supplemented
Prospectus the misstatement or omission giving rise to such Loss would have been
corrected. In no event shall the liability of any selling Holder hereunder be
greater in amount than the dollar amount of the net proceeds received by such
Holder upon the sale of the Registrable Securities giving rise to such
indemnification obligation.

     

    (c)           Conduct of Indemnification
Proceedings. If any Proceeding shall be brought or asserted against any
Person entitled to indemnity hereunder (an “Indemnified Party”),
such Indemnified Party shall promptly notify the Person from whom indemnity is
sought (the “Indemnifying Party”)
in writing, and the Indemnifying Party shall assume the defense thereof,
including the employment of counsel reasonably satisfactory to the Indemnified
Party and the payment of all fees and expenses incurred in connection with
defense thereof; provided, that the failure of any Indemnified Party to give
such notice shall not relieve the Indemnifying Party of its obligations or
liabilities pursuant to this Agreement, except (and only) to the extent that it
shall be finally determined by a court of competent jurisdiction (which
determination is not subject to appeal or further review) that such failure
shall have proximately and materially adversely prejudiced the Indemnifying
Party.

     

    An
Indemnified Party shall have the right to employ separate counsel in any such
Proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party or Parties
unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
expenses; (2) the Indemnifying Party shall have failed promptly to assume the
defense of such Proceeding and to employ counsel reasonably satisfactory to such
Indemnified Party in any such Proceeding; or (3) the named parties to any such
Proceeding (including any impleaded parties) include both such Indemnified Party
and the Indemnifying Party, and such Indemnified Party shall have been advised
by counsel that a conflict of interest is likely to exist if the same counsel
were to represent such Indemnified Party and the Indemnifying Party (in which
case, if such Indemnified Party notifies the Indemnifying Party in writing that
it elects to employ separate counsel at the expense of the Indemnifying Party,
the Indemnifying Party shall not have the right to assume the defense thereof
and such counsel shall be at the expense of the Indemnifying Party). The
Indemnifying Party shall not be liable for any settlement of any such Proceeding
effected without its written consent, which consent shall not be unreasonably
withheld. No Indemnifying Party shall, without the prior written consent of the
Indemnified Party, effect any settlement of any pending Proceeding in respect of
which any Indemnified Party is a party, unless such settlement includes an
unconditional release of such Indemnified Party from all liability on claims
that are the subject matter of such Proceeding.

    
      
         

      

      
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    All fees
and expenses of the Indemnified Party (including reasonable fees and expenses to
the extent incurred in connection with investigating or preparing to defend such
Proceeding in a manner not inconsistent with this Section) shall be paid to the
Indemnified Party, as incurred, within ten Trading Days of written notice
thereof to the Indemnifying Party (regardless of whether it is ultimately
determined that an Indemnified Party is not entitled to indemnification
hereunder; provided, that the Indemnifying Party may require such Indemnified
Party to undertake to reimburse all such fees and expenses to the extent it is
finally judicially determined that such Indemnified Party is not entitled to
indemnification hereunder).

     

    (d)           Contribution. If a
claim for indemnification under Section 5(a) or 5(b) is unavailable to an
Indemnified Party (by reason of public policy or otherwise), then each
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such Indemnifying
Party and Indemnified Party shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission of a material fact,
has been taken or made by, or relates to information supplied by, such
Indemnifying Party or Indemnified Party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
action, statement or omission. The amount paid or payable by a party as a result
of any Losses shall be deemed to include, subject to the limitations set forth
in Section 5(c), any reasonable attorneys’ or other reasonable fees or expenses
incurred by such party in connection with any Proceeding to the extent such
party would have been indemnified for such fees or expenses if the
indemnification provided for in this Section was available to such party in
accordance with its terms.

     

    The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 5(d) were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable
considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), no Holder shall be required
to contribute, in the aggregate, any amount in excess of the amount by which the
proceeds actually received by such Holder from the sale of the Registrable
Securities subject to the Proceeding exceeds the amount of any damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission.

     

    The
indemnity and contribution agreements contained in this Section are in addition
to any liability that the Indemnifying Parties may have to the Indemnified
Parties.

     

    6.           Miscellaneous.

     

    (a)           Remedies. In the
event of a breach by the Company or by a Holder, of any of their obligations
under this Agreement, each Holder or the Company, as the case may be, in
addition to being entitled to exercise all rights granted by law and under this
Agreement, including recovery of damages, will be entitled to specific
performance of its rights under this Agreement. The Company and each Holder
agree that monetary damages would not provide adequate compensation for any
losses incurred by reason of a breach by it of any of the provisions of this
Agreement and hereby further agrees that, in the event of any action for
specific performance in respect of such breach, it shall waive the defense that
a remedy at law would be adequate.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (b)           No Piggyback on
Registrations. Neither the Company nor any of its security holders (other
than the Holders in such capacity pursuant hereto) may include securities of the
Company in a Registration Statement other than the Registrable Securities, and
the Company shall not during the Effectiveness Period enter into any agreement
providing any such right to any of its security holders.

     

    (c)           Compliance. Each
Holder covenants and agrees that it will comply with the prospectus delivery
requirements of the Securities Act as applicable to it in connection with sales
of Registrable Securities pursuant to the Registration Statement.

     

    (d)           Discontinued
Disposition. Each Holder agrees by its acquisition of such Registrable
Securities that, upon receipt of a notice from the Company of the occurrence of
any event of the kind described in Section 3(c), such Holder will forthwith
discontinue disposition of such Registrable Securities under the Registration
Statement until such Holder’s receipt of the copies of the supplemented
Prospectus and/or amended Registration Statement or until it is advised in
writing (the “Advice”) by the Company that the use
of the applicable Prospectus may be resumed, and, in either case, has received
copies of any additional or supplemental filings that are incorporated or deemed
to be incorporated by reference in such Prospectus or Registration Statement.
The Company may provide appropriate stop orders to enforce the provisions of
this paragraph.

     

    (e)           Piggy-Back
Registrations. If at any time during the Effectiveness Period there is
not an effective Registration Statement covering all of the Registrable
Securities and the Company shall determine to prepare and file with the
Commission a registration statement relating to an offering for its own account
or the account of others under the Securities Act of any of its equity
securities, other than on Form S-4 or Form S-8 (each as promulgated under the
Securities Act) or their then equivalents relating to equity securities to be
issued solely in connection with any acquisition of any entity or business or
equity securities issuable in connection with stock option or other employee
benefit plans, then the Company shall send to each Holder written notice of such
determination and, if within fifteen calendar days after receipt of such notice,
any such Holder shall so request in writing, the Company shall include in such
registration statement all or any part of such Registrable Securities such
holder requests to be registered, subject to customary underwriter cutbacks
applicable to all holders of registration rights.

     

    (f)           Amendments and
Waivers. The provisions of this Agreement, including the provisions of
this Section 6(f), may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given, unless the
same shall be in writing and signed by the Company and the Holders holding at
least 67% in interest of the then outstanding Registrable Securities.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of
certain Holders and that does not directly or indirectly affect the rights of
other Holders may be given by Holders of at least a majority of the Registrable
Securities to which such waiver or consent relates; provided, further
that no amendment or waiver to any provision of this Agreement relating to
naming any Holder or requiring the naming of any Holder as an underwriter may be
effected in any manner without such Holder’s prior written
consent.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    Section
2(a) may not be amended or waived except by written consent of each Holder
affected by such amendment or waiver.

     

    (g)           Notices. Any and all
notices or other communications or deliveries required or permitted to be
provided hereunder shall be in writing and shall be deemed given and effective
on the second (2nd) trading day following the date of mailing, if sent by U.S.
nationally recognized overnight courier service or upon actual receipt by the
party to whom such notice is required to be given.

     

    (h)           Successors and
Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors and permitted assigns of each of the parties and shall inure to
the benefit of each Holder. The Company may not assign its rights or obligations
hereunder without the prior written consent of each Holder. Each Holder may
assign their respective rights hereunder in the manner and to the Persons as
permitted under the Purchase Agreement.

     

    (i)      
     Execution and
Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and, all of which taken together shall constitute one and the same Agreement. In
the event that any signature is delivered by facsimile transmission, such
signature shall create a valid binding obligation of the party executing (or on
whose behalf such signature is executed) the same with the same force and effect
as if such facsimile signature were the original thereof.

     

    (j)     
      Governing Law. All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all Proceedings
concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement (whether brought against a party hereto or its
respective Affiliates, employees or agents) will be commenced in the New York
Courts. Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the New York Courts for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert in
any Proceeding, any claim that it is not personally subject to the jurisdiction
of any New York Court, or that such Proceeding has been commenced in an improper
or inconvenient forum. Each party hereto hereby irrevocably waives personal
service of process and consents to process being served in any such Proceeding
by mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices
to it under this Agreement and agrees that such service shall constitute good
and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner
permitted by law. Each party hereto hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any
Proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby. If either party shall commence a Proceeding to enforce any
provisions of this Agreement, then the prevailing party in such Proceeding shall
be reimbursed by the other party for its attorney’s fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such
Proceeding.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (k)           Cumulative Remedies.
The remedies provided herein are cumulative and not exclusive of any remedies
provided by law.

     

    (l) 
          Severability. If any
term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their reasonable efforts to
find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms, provisions, covenants
and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.

     

    (m)          Headings. The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof.

     

    (n)           Independent Nature of
Investors’ Obligations and Rights. The obligations of each Investor under
this Agreement are several and not joint with the obligations of each other
Investor, and no Investor shall be responsible in any way for the performance of
the obligations of any other Investor under this Agreement. Nothing contained
herein or in any Transaction Document, and no action taken by any Investor
pursuant thereto, shall be deemed to constitute the Investors as a partnership,
an association, a joint venture or any other kind of entity, or create a
presumption that the Investors are in any way acting in concert or as a group
with respect to such obligations or the transactions contemplated by this
Agreement or any other Transaction Document. Each Investor acknowledges that no
other Investor will be acting as agent of such Investor in enforcing its rights
under this Agreement. Each Investor shall be entitled to independently protect
and enforce its rights, including without limitation the rights arising out of
this Agreement, and it shall not be necessary for any other Investor to be
joined as an additional party in any Proceeding for such purpose. The Company
acknowledges that each of the Investors has been provided with the same
Registration Rights Agreement for the purpose of closing a transaction with
multiple Investors and not because it was required or requested to do so by any
Investor.

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK SIGNATURE PAGES

    TO
FOLLOW]

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as
of the date first written above.

     

    
      
        
          
            	
                    MGT
      CAPITAL INVESTMENTS, INC.

                  
	 
      
	
                    By: 

                  	 
      
	
                    Name:

                  
	
                    Title:

                  
	 
      
	
                    LADDCAP
      VALUE PARTNERS, LP

                  
	 
      
	
                    By:

                  	 
      
	
                    Name:

                  
	
                    Title:

                  

          

        

      

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    Plan of
Distribution

    

    The
Selling Stockholders and any of their pledgees, donees, transferees, assignees
and successors-in-interest may, from time to time, sell any or all of their
shares of Common Stock on any stock exchange, market or trading facility on
which the shares are traded or quoted or in private transactions. These sales
may be at fixed or negotiated prices. The Selling Stockholders may use any one
or more of the following methods when selling shares:

     

    
      	
               
      

            	
              ·

            	
              ordinary
      brokerage transactions and transactions in which the broker-dealer
      solicits Investors;

            

    

     

    
      	
               
      

            	
              ·

            	
              block
      trades in which the broker-dealer will attempt to sell the shares as agent
      but may position and resell a portion of the block as principal to
      facilitate the transaction;

            

    

     

    
      	
               
      

            	
              ·

            	
              purchases
      by a broker-dealer as principal and resale by the broker-dealer for its
      account;

            

    

     

    
      	
               
      

            	
              ·

            	
              an
      exchange distribution in accordance with the rules of the applicable
      exchange;

            

    

     

    
      	
               
      

            	
              ·

            	
              privately
      negotiated transactions;

            

    

     

    
      	
               
      

            	
              ·

            	
              to
      cover short sales made after the date that this Registration Statement is
      declared effective by the
Commission;

            

    

     

    
      	
               
      

            	
              ·

            	
              broker-dealers
      may agree with the Selling Stockholders to sell a specified number of such
      shares at a stipulated price per
share;

            

    

     

    
      	
               
      

            	
              ·

            	
              a
      combination of any such methods of sale;
and

            

    

     

    
      	
               
      

            	
              ·

            	
              other
      method permitted pursuant to applicable
law.

            

    

     

    The
Selling Stockholders may also sell shares under Rule 144 under the Securities
Act, if available, rather than under this prospectus.

     

    Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers-dealers to
participate in sales. Broker-dealers may receive commissions or discounts from
the Selling Stockholders (or, if any broker-dealer acts as agent for the
Purchasers of shares, from the Purchasers) in amounts to be negotiated. The
Selling Stockholders do not expect these commissions and discounts to exceed
what is customary in the types of transactions involved.

     

    The
Selling Stockholders may from time to time pledge or grant a security interest
in some or all of the Shares owned by them and, if they default in the
performance of their secured obligations, the pledgees or secured parties may
offer and sell shares of Common Stock from time to time under this prospectus,
or under an amendment to this prospectus under Rule 424(b)(3) or other
applicable provision of the Securities Act of 1933 amending the list of selling
stockholders to include the pledgee, transferee or other successors in interest
as selling stockholders under this prospectus.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    Upon the
Company being notified in writing by a Selling Stockholder that any material
arrangement has been entered into with a broker-dealer for the sale of Common
Stock through a block trade, special offering, exchange distribution or
secondary distribution or a purchase by a broker or dealer, a supplement to this
prospectus will be filed, if required, pursuant to Rule 424(b) under the
Securities Act, disclosing (i) the name of each such Selling Stockholder and of
the participating broker-dealer(s), (ii) the number of shares involved, (iii)
the price at which such the shares of Common Stock were sold, (iv)the
commissions paid or discounts or concessions allowed to such broker-dealer(s),
where applicable, (v) that such broker-dealer(s) did not conduct any
investigation to verify the information set out or incorporated by reference in
this prospectus, and (vi) other facts material to the transaction. In addition,
upon the Company being notified in writing by a Selling Stockholder that a donee
or pledgee intends to sell more than 500 shares of Common Stock, a supplement to
this prospectus will be filed if then required in accordance with applicable
securities law.

     

    The
Selling Stockholders also may transfer the shares of Common Stock in other
circumstances, in which case the transferees, pledgees or other successors in
interest will be the selling beneficial owners for purposes of this
prospectus.

     

    The
Selling Stockholders and any broker-dealers or agents that are involved in
selling the shares may be deemed to be “underwriters” within the meaning of the
Securities Act in connection with such sales. In such event, any commissions
received by such broker-dealers or agents and any profit on the resale of the
shares purchased by them may be deemed to be underwriting commissions or
discounts under the Securities Act. Discounts, concessions, commissions and
similar selling expenses, if any, that can be attributed to the sale of
Securities will be paid by the Selling Stockholder and/or the Purchasers. Each
Selling Stockholder has represented and warranted to the Company that it
acquired the securities subject to this Registration Statement in the ordinary
course of such Selling Stockholder’s business and, at the time of its purchase
of such securities such Selling Stockholder had no agreements or understandings,
directly or indirectly, with any person to distribute any such
securities.

     

    The
Company has advised each Selling Stockholder that it may not use shares
registered on this Registration Statement to cover short sales of Common Stock
made prior to the date on which this Registration Statement shall have been
declared effective by the Commission. If a Selling Stockholder uses this
prospectus for any sale of the Common Stock, it will be subject to the
prospectus delivery requirements of the Securities Act. The Selling Stockholders
will be responsible to comply with the applicable provisions of the Securities
Act and Exchange Act, and the rules and regulations thereunder promulgated,
including, without limitation, Regulation M, as applicable to such Selling
Stockholders in connection with resales of their respective shares under this
Registration Statement.

     

    The
Company is required to pay all fees and expenses incident to the registration of
the shares, but the Company will not receive any proceeds from the sale of the
Common Stock. The Company has agreed to indemnify the Selling Stockholders
against certain losses, claims, damages and liabilities, including liabilities
under the Securities Act.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    Annex
B

     

    MGT
CAPITAL INVESTMENTS, INC.

     

    Selling
Securityholder Notice and Questionnaire

     

    The
undersigned beneficial owner of common stock (the “Common Stock”), of MGT Capital
Corporation, Inc., a Delaware corporation (the “Company”), understands that the
Company has filed or intends to file with the Securities and Exchange Commission
(the “Commission”) a Registration Statement
for the registration and resale of the Registrable Securities, in accordance
with the terms of the Registration Rights Agreement, dated as of
[_____________________] (the “Registration Rights
Agreement”),
among the Company and the Purchasers named therein. A copy of the Registration
Rights Agreement is available from the Company upon request at the address set
forth below. All capitalized terms used and not otherwise defined herein shall
have the meanings ascribed thereto in the Registration Rights
Agreement.

     

    The
undersigned hereby provides the following information to the Company and
represents and warrants that such information is accurate:

     

    QUESTIONNAIRE

     

    1.  Name.

    

    
      
        	
                 
      

              	
                (a)

              	
                Full
      Legal Name of Selling Securityholder

              
	 	 	 

      

    

    

    
      
        	
                 
      

              	
                (b)

              	
                Full
      Legal Name of Registered Holder (if not the same as (a) above) through
      which Registrable Securities Listed in Item 3 below are
    held:

              
	 	 	 

      

    

    

    
      
        	
                 
      

              	
                (c)

              	
                Full
      Legal Name of Natural Control Person (which means a natural person who
      directly or indirectly alone or with others has power to vote or dispose
      of the securities covered by the questionnaire):

              
	 	 	 

      

    

    

    2. 
Address for Notices to Selling Securityholder:

    
      
        	 	 
	 	 
	
                Telephone:

              	
                 

              

      

    

    
      
        	
                Fax:

              	
                 

              

      

    

    
      
        	
                Contact

                Person:

              	
                 

              

      

    

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    3.
 Beneficial Ownership of Registrable Securities:

    

    
      
        
          
            
              
                
                  
                    	
                              

                          	
                            Type
      and Principal Amount of Registrable Securities beneficially
      owned:

                          
	 	 
	 	 
	 	 
	 	 
	 	 

                  

                

              

            

          

        

      

    

    

    4. 
Broker-Dealer Status:

    

    
      	
            	
              (a) 

            	
              Are
      you a broker-dealer?

            

    

     

    Yes  ̈
No  ̈

    

    Note:  If
yes, the Commission’s staff has indicated that you should be identified as an
underwriter in the Registration Statement.

     

    
      	
            	
              (b) 

            	
              Are
      you an affiliate of a
broker-dealer?

            

    

     

    Yes  ̈
No  ̈

    

    (c)          If
you are an affiliate of a broker-dealer, do you certify that you bought the
Registrable Securities in the ordinary course of business, and at the time of
the purchase of the Registrable Securities to be resold, you had no agreements
or understandings, directly or indirectly, with any person to distribute the
Registrable Securities?

     

    Yes  ̈
No  ̈

    

    Note: 
If no, the Commission’s staff has indicated that you should be identified as an
underwriter in the Registration Statement.

     

    5. 
Beneficial Ownership of Other Securities of the Company Owned by the Selling
Securityholder.

     

    Except
as set forth below in this Item 5, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the Registrable
Securities listed above in Item 3.

     

    Type and
Amount of Other Securities beneficially owned by the Selling
Securityholder:

     

      
        

      

    

     

    6.
 Relationships with the Company:

     

    Except
as set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (owners of 5% of more of the equity
securities of the undersigned) has held any position or office or has had any
other material relationship with the Company (or its predecessors or affiliates)
during the past three years.

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    State any
exceptions here:

    

    7.  The Company has
advised each Selling Stockholder that it may not use shares registered on the
Registration Statement to cover short sales of Common Stock made prior to the
date on which the Registration Statement is declared effective by the
Commission, in accordance with 1997 Securities and Exchange Commission Manual of
Publicly Available Telephone Interpretations Section A.65. If a Selling
Stockholder uses the prospectus for any sale of the Common Stock, it will be
subject to the prospectus delivery requirements of the Securities Act. The
Selling Stockholders will be responsible to comply with the applicable
provisions of the Securities Act and Exchange Act, and the rules and regulations
thereunder promulgated, including, without limitation, Regulation M, as
applicable to such Selling Stockholders in connection with resales of their
respective shares under the Registration Statement.

     

    The
undersigned agrees to promptly notify the Company of any inaccuracies or changes
in the information provided herein that may occur subsequent to the date hereof
and prior to the Effective Date for the Registration Statement.

     

    By
signing below, the undersigned consents to the disclosure of the information
contained herein in its answers to Items 1 through 6 and the inclusion of such
information in the Registration Statement and the related prospectus. The
undersigned understands that such information will be relied upon by the Company
in connection with the preparation or amendment of the Registration Statement
and the related prospectus.

     

    IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
and Questionnaire to be executed and delivered either in person or by its duly
authorized agent.

     

    
      
        
          
            
              	
                      Dated:

                    	 
      	 
      	
                      Beneficial
      Owner:

                    	 
      

            

          

        

      

    

     

    
      
        
          	 
      	 
      	
                  By:

                	 
      
	 
      	 
      	
                  Name: 

                	 
      
	 
      	 
      	
                  Title:

                	 
      

        

         

        
          
            
               

            

            
              19

              
                

              

            

            
               

            

          

        

        
PLEASE
FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
THE ORIGINAL BY OVERNIGHT MAIL, TO:

         

      

    

    [   ]

    
      
         

      

      
        20Unassociated Document

    Exhibit
10.15

    (English
Summary Translation)

    

    Chongqing
Guiyuan Project Liyuan Zone

    Construction
Agreement

    

    Employer:
Chongqing Foguang Tourism Development (Group) Co., Ltd.

    Contractor:
Chongqing Hongxing Construction Co., Ltd.

    

    In
accordance with the “Contract Law of the People’s Republic of China” and other
relevant Chinese laws and regulations, Employer will pay contractor for civil
engineering services in Liyuan Zone. Both Parties signed this “Construction
Contract” to define their rights, obligations and economic
responsibilities.

    

    Article
One: Name of the project

    The name
of the project is Civil Engineering of Chongqing Liyuan Zone for Guiyuan
Project. (The working term of Liyuan Zone is 250 days from May 20, 2010 to
January 29, 2011.)

    

    Article
Two: Location of the project

    The
location of the project is Group 6, Jiangnan Longqiao Village,
Chongqing

    

    Article
Three: Scope of Work

    The scope
of work is civil engineering services in Liyuan Zone; more detailed contents can
be located in the Bill of Quantities.

    

    Article
Four: Contracting Methods and Project Cost

    
      	
               
      

            	
              1.

            	
              Contracting
      Methods: Contractor contracts the entire project. The contractor can
      sublet project to sub-contractors. However, Contractor is responsible for
      quality, time limit and safety.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              2.

            	
              The
      temporary total cost of Liyuan Zone project is 131,229,000.00 RMB (tax
      included). The actual total project cost shall be based on actual project
      quantities.

            

    

    

    Article
Five: Project Period

    
      	
               
      

            	
              0.

            	
              Time
      limit: The time limit for different sub-projects shall be followed up with
      the written notification from the Engineering Department. Contractor must
      complete all sub-projects and the entire project in accordance with the
      employer’s schedule.

            

    

    
      	
               
      

            	
              1.

            	
              The
      project can be delayed, if any one of the following occurs (must be
      confirmed by employer):

            

    

    
      	
               
      

            	
              1)

            	
              Employer
      modifies the design during the construction
  period;

            

    

    
      	
               
      

            	
              2)

            	
              Employer
      cannot handover the construction field to contractor at the time, which
      was decided by both parties.

            

    

    
      	
               
      

            	
              3)

            	
              Some
      natural disaster, or continuous water and power failure caused by the
      employer.

            

    

    
      	
               
      

            	
              2.

            	
              If
      the contractor causes 10% delay in accordance with the employer’s
      schedule, employer has right to terminate this contract, and contractor
      has obligation to pay 10% of the total project cost as compensation for
      breach of contract. If the 10% compensation is not enough for paying the
      employer’s loss, the contractor shall pay for actual
  loss.

            

    

    

    Article
Six: Construction Requirements:

    
      	
               
      

            	
              1.

            	
              The
      contractor must perform its construction activities in accordance with the
      employer’s design drawings and related construction
      information.

            

    

    
      	
               
      

            	
              2.

            	
              The
      contractor must set up a tight construction management, check before
      acceptance and send the summary of construction and acceptance to
      employer.

            

    

    
      	
               
      

            	
              3.

            	
              After
      completion of the project, the contractor shall clean the construction
      site. Also, the contractor shall deliver the construction waste to the
      designated place stipulated by the
employer.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Article
Seven: Project Settlement

    
      	
               
      

            	
              1.

            	
              The
      price of the project shall be in accordance with the approved list price,
      no other fees or expenses shall be
included.

            

    

    
      	
               
      

            	
              2.

            	
              The
      accounting calculation of the project shall be in accordance with the
      actual project quantity list.

            

    

    
      	
               
      

            	
              3.

            	
              The
      total project price shall be in accordance with the entire cost. If more
      than 10% of the entire project is subcontracted, or employer has some
      special requirements (special materials), both parties shall negotiate the
      new price for the project.

            

    

    

    Article
Eight: Payment Term

    
      	
               
      

            	
              1.

            	
              The
      contract shall report the monthly construction quantities to the employer
      on the 25th
      of every month (the construction quantities must be agreed by the
      employer). The employer shall pay 80% of the accumulated project fund. The
      employer shall keep 5% of the project fund until the project has been
      completed 95% or more.

            

    

    
      	
               
      

            	
              2.

            	
              After
      the inspection and approval of the project by the employer, the contractor
      shall receive 97% of the fund of the total project from the employer
      within one month. The remaining 3% of the fund shall be kept as warranty.
      The employer shall pay the remaining 3% of the fund to the contractor in
      two years (with no interest), if the quality of the project is
      satisfactory.

            

    

    
      	
               
      

            	
              3.

            	
              The
      contract shall take care of any fees accrued in this project, including
      taxes.

            

    

    

    Article
Nine: The inspection and acceptance of the project

    
      	
               
      

            	
              1.

            	
              After
      completion of the entire project, the quality inspection and acceptance
      test shall be in accordance with the “The Standard of Quality Test of
      Construction”.

            

    

    
      	
               
      

            	
              2.

            	
              If
      a certain part of the project cannot pass the employer’s inspection, the
      contractor must rework on it. The contractor shall be responsible for
      bearing rework fees.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              3.

            	
              If
      the contract is not in accordance with the employer’s design or use poor
      materials, the contractor shall be responsible for rework and bear all
      expenses. If the contractor refuses to rework or the rework still cannot
      pass the employer’s inspection, the employer has the right to terminate
      this contract. The contractor has the obligation to pay 10% of total
      project cost as compensation for breach of contract. If 10% compensation
      is not enough for paying the employer’s loss, contractor shall pay for the
      actual loss.

            

    

    

    Article
Ten: The Employer’s Obligation

    
      	
               
      

            	
              1.

            	
              The
      employer shall provide the approved construction drawings to the
      contractor.

            

    

    
      	
               
      

            	
              2.

            	
              The
      employer shall coordinate the water and electricity on the construction
      site and other related construction
issues.

            

    

    
      	
               
      

            	
              3.

            	
              The
      employer shall provide a qualified construction site, which needs to be
      accepted by the contractor. The employer has no obligation after the
      contract accepts the construction
site.

            

    

    
      	
               
      

            	
              4.

            	
              The
      employer’s representative: Guangyong He deputy manager is the only person
      who is responsible for coordination, inspection, supervision of the
      construction site from the employer’s
side.

            

    

    

    Article
Eleven: The Contractor’s Obligation

    
      	
               
      

            	
              1.

            	
              The
      contractor shall provide the qualification certificate for materials,
      which is used in construction site. The quality of the materials must be
      inspected by the employers.

            

    

    
      	
               
      

            	
              2.

            	
              The
      contractor shall follow the employer’s
  requirements.

            

    

    
      	
               
      

            	
              3.

            	
              The
      contractor shall take care of the procedure of importation of water and
      electricity in the relevant government department. Also, the contractor
      shall be responsible for the safety of the construction
    site.

            

    

    
      	
               
      

            	
              4.

            	
              The
      contractor shall coordinate with the
employer.

            

    

    
      	
               
      

            	
              5.

            	
              The
      contractor shall be liable for any damages as a consequence of any
      accident or injury to any workman or other person in the employment of the
      contractor or any subcontractor.

            

    

    
      	
               
      

            	
              6.

            	
              The
      contractor shall be liable for any damages as a consequence of any damage
      to the employer’s property.

            

    

    
      	
               
      

            	
              7.

            	
              The
      contractor shall follow up with the signature system of the
      project.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              8.

            	
              After
      completion of the project, the contract shall provide inspection report to
      employee within 30 days.

            

    

    
      	
               
      

            	
              9.

            	
              The
      contractor shall provide the project quality assurance to the employer
      after completion of the project.

            

    

    
      	
            	
              10.

            	
              The
      contractor shall provide 2 years of warranty for this
    project.

            

    

    
      	
            	
              11.

            	
              The
      contractor is responsible for any documentation or other related fees by
      the local construction bureau.

            

    

    

    Article
Twelve: Breach of contract

    
      	
               
      

            	
              1.

            	
              The
      contractor shall pay 0.1% of the project settlement amount for any one-day
      delay on project with the exception of natural
  disaster.

            

    

    
      	
               
      

            	
              2.

            	
              The
      employer is responsible for compensation, if the employer cannot make the
      payment on time.

            

    

    
      	
               
      

            	
              3.

            	
              The
      contractor shall pay 0.1% of the project settlement amount per day, if the
      contractor cannot provide the completion report and materials on
      time.

            

    

    
      	
               
      

            	
              4.

            	
              If
      a party wants to terminate this contract, it must negotiate with the other
      party and get the permission from the other party. Otherwise, the party
      who wants to terminate the contract shall be responsible for any expense
      caused by termination of the
contract.

            

    

    

    Article
Thirteen: Settlement of disputes

    All
disputes in connection with this contract on the execution thereof shall be
settled primarily through negotiations. In the event no settlement can be
reached, both parties have rights to submit for arbitration to the local
arbitration commission.

    

    Article
Fourteen: Other matters

    
      	
               
      

            	
              1.

            	
              The
      contractor is responsible for fees, which are related to water and
      electricity on the construction site. The employer shall deduct 1% of the
      settlement amount for paying water and
  electricity.

            

    

    
      	
               
      

            	
              2.

            	
              The
      employer shall deduct 0.03% of settlement amount as clean-up cost for
      cleaning the construction site after the employer accepts the finished
      project.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              3.

            	
              The
      employer shall pay construction payment to the third party sub-contractor
      directly, if the contractor does not make the payment in accordance with
      the contract.

            

    

    
      	
               
      

            	
              4.

            	
              The
      employer will mail or fax the documents to the contractor’s address and
      fax listed in this contract.

            

    

    
      	
               
      

            	
              5.

            	
              The
      contractor and employer shall negotiate for any new issues or problems,
      which occurs during the construction period. They can execute a
      supplemental agreement if
necessary.

            

    

    
      	
               
      

            	
              6.

            	
              The
      contract is executed in two originals and two
  copies.

            

    

    

    The
employer: Chongqing Foguang Tourism Development (Group) Co., Ltd.

    Representative:
Yiyou Ran

    Signature.

    

    The
contractor: Chongqing Hongxing Construction Co., Ltd.

    Signature

    

    Date: May
20, 2010.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]