Document:

Exhibit 10.2

STANDBY PURCHASE AGREEMENT 

This STANDBY PURCHASE AGREEMENT (this “Agreement”), dated as of June 4, 2013, is by and between Asia Entertainment & Resources Ltd. (the “Company”), a Cayman Islands exempted company, and each of the purchasers set forth on Exhibit A hereto (each, a “Standby Purchaser” and collectively, the “Standby Purchasers”). 

WITNESSETH: 

WHEREAS, the Company proposes pursuant to the Prospectus (as defined herein), to commence an offering (the “Rights Offering”) to holders of its ordinary shares (the “Ordinary Shares”) of record as of the close of business on June 3, 2013, or such other date that may be selected by the Company (the “Record Date”), of transferable rights (the “Rights”) to subscribe for and purchase Ordinary Shares (the “Shares”) at the applicable Subscription Price (as defined below); 

WHEREAS, pursuant to the Rights Offering, the Company will grant to each of its Ordinary Shareholders as of the Record Date, at no charge, one Right for each two Ordinary Shares held by such Ordinary Shareholder as of the Record Date (the “Subscription Privilege”); 

WHEREAS, in order to facilitate the Rights Offering, the Company has requested the Standby Purchasers to agree, and each Standby Purchaser has agreed, it will purchase from us a number of Ordinary Shares having a value equal to the aggregate subscription price the Company would have received with respect to the Shares underlying all Rights not exercised by all holders in the Rights Offering pursuant to their respective Subscription Privilege to purchase Shares from the Company at the applicable Subscription Price, for an aggregate of $63.5 million, upon the terms and conditions set forth herein (the “Standby
Offering”); and 

NOW THEREFORE, in consideration of the foregoing and the mutual covenants herein contained and other good and valuable consideration, the parties hereto, intending to be legally bound hereby, agree as follows: 

Section 1. Certain Other Definitions.  The following terms used herein shall have the meanings set forth below: 

“Affiliate” shall mean an affiliate (as defined in Rule 12b-2 under the Exchange Act) of such Standby Purchaser; provided that such Standby Purchaser or any of its affiliates exercises investment authority with respect to such affiliate, including, without limitation, voting and dispositive rights with respect to such affiliate. 

“Agreement” shall have the meaning set forth in the preamble hereof. 

“Business Day” shall mean any day that is not a Saturday, a Sunday or a day on which banks are generally closed in the State of New York. 

“Closing” shall mean the closing of the Standby Offering as described in Section 2 hereof, which shall occur no more than five (5) Business Days after completion of the Rights Offering. 

“Closing Date” shall mean the date of the closing of the Standby Offering. 

“Commission” shall mean the United States Securities and Exchange Commission, or any successor agency thereto. 

“Company” shall have the meaning set forth in the preamble hereof. 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated by the Commission thereunder. 

“Indemnified Person” shall have the meaning set forth in Section 7(h)(i) hereof. 

“Lock-Up Shares” shall have the meaning set forth in Section 9 hereof. 

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“Material Adverse Effect” shall mean the occurrence, either individually or in the aggregate, of any material adverse effect on the earnings, business, management, properties, assets, rights, operations or condition (financial or otherwise) of the Company and of the Subsidiaries, taken as a whole. 

“Ordinary Shares” shall have the meaning set forth in the recitals hereof. 

“Person” shall mean an individual, corporation, partnership, association, joint stock company, limited liability company, joint venture, trust, governmental entity, unincorporated organization or other legal entity. 

“Prospectus” shall mean the prospectus supplement dated June 4, 2013 and the accompanying prospectus, including any information relating to the offer and sale of the Rights and Shares, including the offer and sale of the Rights and Shares to the Standby Purchasers, that is filed with the Commission pursuant to Rule 424(b) and for use in connection with the offer and sale of such securities. 

“Record Date” shall have the meaning set forth in the recitals hereof. 

“Registration Statement” shall mean the Company’s Registration Statement on Form F-3 (No. 333-185759), including a related prospectus or prospectuses, covering the registration of the securities under the Securities Act, which has become effective. “Registration Statement” at any particular time means such registration statement in the form then filed with the Commission, including any amendment thereto, any document incorporated by reference therein and all 430B Information and all 430C Information with respect to such registration statement, that in any case has not been superseded or
modified. “Registration Statement” without reference to a time means the Registration Statement as of the effective time pursuant to Rule 430B(f) of the Securities Act. For purposes of this definition, 430B Information shall be considered to be included in the Registration Statement as of the time specified in Rule 430B.

“Rights” shall have the meaning set forth in the recitals hereof. 

“Rights Offering” shall have the meaning set forth in the recitals hereof. 

“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated by the Commission thereunder. 

“Share” shall have the meaning set forth in the recitals hereof. 

“Standby Offering” shall have the meaning set forth in the recitals hereof. 

“Standby Offering Payment” shall mean set forth in Section 2(c) hereof. 

“Standby Purchaser” shall mean a Standby Purchaser named on Exhibit A hereto. 

“Subscription Price” shall mean $3.00 per Share; provided, however, with respect to purchases made pursuant to this Agreement by each of Lam Man Pou and Vong Hon Kun, shall mean $4.50 per Share. 

“Subscription Privilege” shall have the meaning set forth in the recitals hereof. 

“Subsidiary” or “Subsidiaries” shall mean any direct or indirect subsidiary of the Company. 

Section 2. Restriction on Exercise of Rights held by the Standby Purchasers; Standby Purchase Commitment. 

(a) Each Standby Purchaser hereby agrees that such Standby Purchaser shall not exercise any Rights held by such Standby Purchaser in connection the Rights Offering. 

(b) Each Standby Purchaser hereby agrees to purchase from the Company, and the Company hereby agrees to sell to each Standby Purchaser, at the Subscription Price, a number of shares equal to (i) the difference between (x) $63,500,000 and (y) the aggregate subscription price the Company received with respect to the Shares underlying all Rights exercised by all holders in the Rights Offering pursuant to their respective Subscription Privilege, multiplied by (ii) the percentage opposite such Standby Purchaser’s name on Exhibit A hereto, divided by (iii) the Subscription Price. 

(c) Subject to Section 5(b), payment shall be made to the Company by each Standby Purchaser, on the Closing Date, against delivery of the Shares purchased by such Standby Purchaser, in United States dollars by 

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means of certified or cashier’s checks, bank drafts, money orders, wire transfers or the reduction of outstanding indebtedness held by the Standby Purchasers in an amount equal to the applicable Subscription Price multiplied by the number of Shares purchased by such Standby Purchaser pursuant to the Standby Offering (the “Standby Offering Payment”). In the event that a Standby Purchaser elects to cancel indebtedness for the benefit of another Standby Purchaser, the Company shall issue the Shares to the Standby Purchaser for whose benefit the indebtedness was canceled. 

Section 3. Representations and Warranties of the Company.  The Company represents and warrants to, and agrees with, the Standby Purchaser as follows: 

(a) The Company is a corporation duly organized and in good standing under the laws of the Cayman Islands and has all requisite corporate power and authority to carry on its business as now conducted. 

(b) The Company has the requisite power and authority to enter into this Agreement and to perform and consummate the transactions contemplated hereby. This Agreement has been duly and validly authorized, executed and delivered by the Company and constitutes a binding obligation of the Company enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles of equity, including principles of commercial
reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity). 

(c) Prior to commencement of the Rights Offering, the Registration Statement shall have been declared effective by the Commission and the Prospectus shall have been filed with the Commission and no stop order will have been issued with respect thereto and no proceedings therefore will have been initiated or, to the knowledge of the Company, threatened by the Commission, and any request on the part of the Commission for additional information will have been complied with. On the date of the Prospectus and each Closing Date, the Prospectus and the Registration Statement will comply in all material respects with the requirements
of the Securities Act and the Exchange Act and (i) will not 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 not misleading and (ii) will not include an untrue statement of a material fact nor omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the representations and warranties in this subsection shall not apply to statements in or omissions from the Registration Statement or the Prospectus made in reliance upon and in conformity with the information furnished to the Company in writing by the Standby Purchasers expressly for use in the Registration Statement or in the Prospectus pursuant to Section 6(c) below. 

(d) All of the Shares issued in the Rights Offering and the Standby Offering will have been duly authorized for issuance prior to the applicable Closing, and, when issued and distributed as set forth in the Prospectus, will be validly issued, fully paid and non-assessable; and none of the Shares issued in the Rights Offering and the Standby Offering will have been issued in violation of the preemptive rights of any security holders of the Company arising as a matter of law or under or pursuant to the Company’s organizational documents or any material agreement or instrument to which the Company is a party or by which it
is bound. 

(e) Neither the Company nor any Subsidiary is in violation of its organizational documents or in default under any material agreement, indenture or instrument to which the Company or any Subsidiary is a party, the effect of which violation or default would reasonably be expected to have a Material Adverse Effect, and the execution, delivery and performance of this Agreement by the Company and the consummation of the transactions contemplated hereby will not conflict with, or constitute a breach of, or default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the assets of the Company
or any Subsidiary pursuant to the terms of any material agreement, indenture or instrument to which the Company or any Subsidiary is a party which lien, charge or encumbrance would reasonably be expected to have a Material Adverse Effect, or result in a violation of the organizational documents of the Company or any Subsidiary or any order, rule or regulation of any court or governmental agency having jurisdiction over the Company, any Subsidiary or any of their property; and, except as required by the Securities Act, the Exchange Act, and applicable state securities law, no consent, authorization or order of, or filing or registration with, any court or governmental agency is required for the execution, delivery and performance of this Agreement. 

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(f) The Company and the Subsidiaries have taken all actions necessary to ensure that the transactions contemplated by this Agreement, individually or in the aggregate, shall not cause the breach or the violation of, or the acceleration of any right under, or result in any additional rights, or the triggering of any rights of first refusal, preferential purchase or similar rights with respect to any securities of the Company or any Subsidiary, anti-dilution adjustment under any contract or agreement to which the Company or any Subsidiary is a party, including, without limitation, any employment agreement or employee benefit
plan of the Company or any Subsidiary. Such actions may include, without limitation, having any such contracts or agreements or rights granted under any such contract or agreement waived in writing or amended prior to the applicable Closing. 

(g) The Company’s Board of Directors have approved this Agreement and the transactions contemplated by this Agreement to the extent required by the laws of the Cayman Islands and the Nasdaq Global Market, and such laws, regulations and policies do not require that the Company’s stockholders approve the Agreement and the transactions contemplated by the Agreement. 

Section 4. Representations and Warranties of each Standby Purchaser.  Each Standby Purchaser represents and warrants to, and agrees with, the Company as follows: 

(a) Such Standby Purchaser has the relevant entity power and authority to perform its obligations under this Agreement. 

(b) Such Standby Purchaser is acquiring the Shares for its own account, with the intention of holding the Shares for investment and with no present intention of participating, directly or indirectly, in a distribution of the Shares. 

(c) Such Standby Purchaser is familiar with the business in which the Company is engaged, and based upon its knowledge and experience in financial and business matters, it is familiar with the investments of the type that it is undertaking to purchase; it is fully aware of the problems and risks involved in making an investment of this type; and it is capable of evaluating the merits and risks of this investment. Such Standby Purchaser acknowledges that, prior to executing this Agreement, it has had the opportunity to ask questions of and receive answers or obtain additional information from a representative of the Company
concerning the financial and other affairs of the Company. 

(d) This Agreement has been duly and validly executed and delivered by such Standby Purchaser and constitutes a binding obligation of such Standby Purchaser enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, moratorium and similar laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity). 

(e) Such Standby Purchaser understands that the Commission may express the position that the Shares purchased by such Standby Purchaser are deemed “restricted securities” as such term is defined in Rule 144 promulgated under the Securities Act (“Rule 144”), and they may not be sold except pursuant to Rule 144 or pursuant to a registration statement under the Act. Further, the following legends (or similar language) shall be placed on such certificate(s) representing the Shares: 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN
THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS. 

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Section 5. Deliveries at Closing.  At the Closing, the Company shall deliver to each Standby Purchaser a certificate or certificates representing the Shares issued to such Standby Purchaser pursuant to the Standby Offering. Each Standby Purchaser shall deliver to the Company the Standby Offering Payment. 

Section 6. Covenants. 

(a) Covenants.  The Company agrees and covenants with each Standby Purchaser, between the date hereof and the earlier of the Closing Date or the effective date of any termination pursuant to Section 8 hereof, as follows: 

(i) To use commercially reasonable efforts to effectuate the Rights Offering; 

(ii) As soon as reasonably practicable after the Company is advised or obtains knowledge thereof, to advise each Standby Purchaser, with a confirmation in writing, of (A) the time when the Prospectus or any amendment or supplement thereto has been filed, (B) the issuance by the Commission of any stop order, or of the initiation or threatening of any proceeding, suspending the effectiveness of the Registration Statement or any amendment thereto or any order preventing or suspending the use of any preliminary prospectus or the Prospectus or any amendment or supplement thereto, (C) the issuance by any state securities commission
of any notice of any proceedings for the suspension of the qualification of the Ordinary Shares for offering or sale in any jurisdiction or of the initiation, or the threatening, of any proceeding for such purpose, (D) the receipt of any comments from the Commission directed toward the Registration Statement, the Prospectus or any document incorporated therein by reference and (E) any request by the Commission for any amendment to the Registration Statement or any amendment or supplement to the Prospectus or for additional information. The Company will use its commercially reasonable efforts to prevent the issuance of any such order or the imposition of any such suspension and, if any such order is issued or suspension is imposed, to obtain the withdrawal thereof as promptly as possible; 

(iii) To operate the Company’s business in the ordinary course of business consistent with past practice; 

(iv) To notify each Standby Purchaser, on a daily basis or at such time as such Standby Purchaser may request, of the aggregate number of subscriptions received pursuant to the Subscription Privilege in the Rights Offering; and 

(v) Not to issue any shares of capital stock of the Company, or options, warrants, purchase rights, subscription rights, conversion rights, exchange rights, securities convertible into or exchangeable for capital stock of the Company, or other agreements or rights to purchase or otherwise acquire capital stock of the Company, except (i) for Ordinary Shares issuable upon exercise of the Company’s presently outstanding stock options or other issued and outstanding convertible securities as of the date hereof and (ii) in the ordinary course of business in accordance with past practices. 

(b) Certain Acquisitions.  Between the date hereof and the Closing Date, each Standby Purchaser and his Affiliates shall not acquire any Ordinary Shares unless authorized to do so by the Company other than in accordance with the Prospectus and the terms and conditions hereof. 

(c) Information.  Each Standby Purchaser agrees to furnish to the Company all information with respect to such Standby Purchaser that the Company may reasonably request and any such information furnished to the Company expressly for inclusion in the Prospectus by such Standby Purchaser is accurate and complete in all material respects as of the date of the Prospectus and as of each Closing Date. 

(d) Public Statements.  Except for the Prospectus and any press releases related to the Rights Offering, neither the Company nor any Standby Purchaser shall issue any public announcement, statement or other disclosure with respect to this Agreement or the transactions contemplated hereby without the prior consent of the other parties hereto, which consent shall not be unreasonably withheld or delayed, except (i) if such public announcement, statement or other disclosure is required by applicable law or applicable stock market regulations, in which case the disclosing party shall consult in advance with respect
to such disclosure with the other parties to the extent reasonably practicable, or (ii) with respect to the filing by any Standby Purchaser of any Form 3, 4, or 5 pursuant to Section 16 of the Exchange Act or any Schedule 13D or 

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Schedule 13G pursuant to Sections 13(d) or 13(g), respectively, of the Exchange Act, to which a copy of this Agreement may be attached as an exhibit thereto. 

(e) Regulatory Filing.  If the Company or a Standby Purchaser determines a filing is or may be required under applicable law in connection with the transactions contemplated hereunder, the Company and each Standby Purchaser shall use commercially reasonable efforts to promptly prepare and file all necessary documentation and to effect all applications that are necessary or advisable under applicable law with respect to the transactions contemplated hereunder so that any applicable waiting period shall have expired or been terminated as soon as practicable after the date hereof. 

(f) Expenses.  On the earlier of the Closing Date and the termination of this Agreement, other than a termination under circumstances that are directly and solely attributable to a material breach of this Agreement by the Standby Purchasers, the Company shall reimburse each Standby Purchaser for all out-of-pocket fees and expenses incurred in connection with the transactions contemplated hereby, including due diligence efforts, the negotiation and preparation of documents relating to the transaction, the preparation and filing of regulatory applications and notices, and the undertaking of the transactions
contemplated hereby, including, but not limited to, the fees and expenses of the Standby Purchasers’ accounting, financial and investment banking advisors, legal counsel and credit review. Such reimbursement shall not exceed the sum of $20,000. 

(g) Nasdaq Listing Application.  The Company will timely file an “Additional Listing Application” with the Nasdaq Global Market in connection with the Shares issued in the Rights Offering and the Standby Offering. The Company will use its commercially reasonable efforts to obtain, effect and maintain the listing of such securities on the Nasdaq Global Market and will file with the Nasdaq Global Market all documents and notices required by the Nasdaq Global Market of companies that have securities that are listed on the Nasdaq Global Market. 

(h) Indemnification. 

(i) Whether or not the transactions contemplated hereby are consummated, the Company agrees to indemnify and hold harmless the Standby Purchasers and each of their respective stockholders, members and general and limited partners and the respective officers, directors, employees, affiliates, advisors, agents, attorneys, accountants and consultants of each such entity and to hold each Standby Purchaser and such other persons and entities (each, an “Indemnified Person”) harmless from and against any and all losses, claims, damages, liabilities and expenses, joint or several, which any such person or
entity may incur, have asserted against it or be involved in as a result of or arising out of or in any way related to this Agreement or the matters referred to herein, including the Rights Offering, the Standby Offering or the use of proceeds therefrom or any related transaction or any claim, litigation, investigation or proceeding relating to any of the foregoing, regardless of whether any of such Indemnified Persons is a party thereto, and to reimburse each such Indemnified Person within five (5) Business Days of demand for any legal or other expenses incurred in connection with any of the foregoing; provided, however, that the foregoing indemnity will not, as to any Indemnified Person, apply to losses, claims, damages, liabilities or related expenses to the extent they have resulted from the bad faith, willful misconduct or gross negligence of such Indemnified Person. 

(ii) If the indemnification of an Indemnified Person provided for in Section 6(h)(i) is for any reason held unenforceable or is otherwise unavailable, the Company shall contribute to the losses, claims, damages, expenses and liabilities for which such indemnification is held unenforceable (1) in such proportion as is appropriate to reflect the relative benefits to the Company, on the one hand, and the Standby Purchasers, on the other hand, of any contemplated transaction (whether or not such transaction is consummated); or (2) if (but only if) the allocation provided for in clause (1) is for any reason held unenforceable, in
such proportion is appropriate to reflect not only the relative benefits referred to in clause (1) but also the relative fault of the Company, on the one hand, and the Standby Purchasers, on the other hand, as well as any other relevant equitable considerations. For the purposes of this paragraph the relative benefits to the Company and the Standby Purchasers of any transaction expressly described in the Agreement (whether or not such transaction is consummated) shall be deemed to be in the same proportion that the benefit received by, or contemplated to be received by, the Company in connection with transactions contemplated by this Agreement, bears to the total benefit received by the Standby 

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Purchasers under the Agreement; and the relative fault of the Company and of the Standby Purchasers (i) in the case of an untrue or alleged untrue statement of a material fact or an omission or alleged omission to state a material fact, shall be determined by reference to, among other things, whether such statement or omission relates to information supplied by the Company or by the Standby Purchasers and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission, and (ii) in the case of any other action or omission, shall be determined by reference to,
among other things, whether such action or omission was taken or omitted to be taken by the Company or by the Standby Purchasers and the parties’ relative intent, knowledge, access to information, and opportunity to prevent such action or omission. Without limiting the generality of the foregoing, if the Standby Purchasers or any other Indemnified Person is requested or required to be deposed, appear as a witness or is otherwise involved in any action relating to this Agreement, the Rights Offering or the Standby Offering brought by or on behalf of or against the Company in which such party is not named as a defendant, the Company shall reimburse the Standby Purchasers or the Indemnified Person (as applicable) for all reasonable expenses incurred in connection with such action, including, without limitation, the reasonable fees and disbursements of its legal counsel in connection with appearing and preparing to appear as a deponent or witness. 

(iii) The foregoing provisions are in addition to any rights that any Indemnified Person may have at common law or otherwise and shall be binding on and inure to the benefit of any successors, permitted assigns, and personal representatives of the Company and each Indemnified Person. The provisions of this Section 6(h) shall continue to apply and shall remain in full force and effect regardless of any modification or termination of this Agreement or the completion of the transactions contemplated hereunder. 

(i) Use of Proceeds.  The Company shall solely use the proceeds of the Rights Offering and the Standby Offering in accordance with the description set forth in the Prospectus. 

Section 7. Conditions to Closing. 

(a) The obligations of the Standby Purchasers to consummate the transactions contemplated hereunder are subject to the fulfillment, prior to or on each Closing Date, of the following conditions: 

(i) The representations and warranties of the Company in Section 3 shall be true and correct as of the date hereof and at and as of each Closing Date as if made on such date (except for representations and warranties made as of a specified date, which shall be true and correct as of such specified date) and the Company shall have performed all of its obligations hereunder; 

(ii) Subsequent to the execution and delivery of this Agreement and prior to each Closing Date, there shall not have been any Material Adverse Effect, nor shall there have occurred any breach of any covenant of the Company set forth in Section 6 hereof; 

(iii) As of each Closing Date, trading in the Ordinary Shares shall not have been suspended by the Commission or Nasdaq Global Market or trading in securities generally on the Nasdaq Global Market shall not have been suspended or limited or minimum prices shall not have been established on the Nasdaq Global Market; and 

(iv) The Company and the Standby Purchasers shall have obtained any required federal, state and regulatory approvals for the Rights Offering and Standby Offering on conditions reasonably satisfactory to the Standby Purchasers; 

(b) The obligations of the Company and the Standby Purchasers to consummate the transactions contemplated hereunder are subject to the fulfillment, prior to or on each Closing Date, of the following conditions: 

(i) No judgment, injunction, decree, regulatory proceeding or other legal restraint shall prohibit, or have the effect of rendering unachievable, the consummation of the Rights Offering, the Standby Offering or the material transactions contemplated by this Agreement; 

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(ii) No stop order suspending the effectiveness of the Registration Statement or any part thereof shall have been issued and no proceeding for that purpose shall have been initiated or threatened by the Commission; and any request of the Commission for inclusion of additional information in the Registration Statement or otherwise shall have been complied with; and 

(iii) The Shares issued in the Rights Offering and the Standby Offering shall have been authorized for listing on the Nasdaq Global Market prior to the issuance of such Shares. 

Section 8. Termination. 

(a) This Agreement may be terminated by the Standby Purchasers (i) at any time prior to each Closing Date by written notice to the Company if any condition to the obligations of the Standby Purchasers set forth in Section 7 hereof is not satisfied, or because of any refusal, inability or failure of the parties hereto (other than the Standby Purchasers) to perform any agreement herein or comply with any provision hereof other than by reason of a default by the Standby Purchasers, (ii) the Rights Offering shall have been cancelled, terminated or withdrawn on or prior to either Closing Date or (iii) if the Rights Offering will
not be consummated on or before June 30, 2013, unless the failure of such Closing to occur by such date shall be due to a default by the Standby Purchasers. 

(b) This Agreement may be terminated by the Company on one hand or by the Standby Purchasers on the other hand, by written notice to the other party hereto: 

(i) at any time prior to each Closing Date, if there is a material breach of this Agreement by the other party that is not cured within ten (10) days after the non-breaching party has delivered written notice to the breaching party of such breach; and 

(ii) consummation of the Standby Offering is prohibited by law, rule or regulation. 

(c) This Agreement may be terminated by the Company in the event that the Company determines that it is not in the best interests of the Company and its shareholders to go forward with the Rights Offering. 

(d) Subject to the limitations set forth in Section 6(f), the Company and the Standby Purchasers hereby agree that should the Agreement be terminated pursuant to this Section 8 prior to the Closing Date, the Company will reimburse the Standby Purchasers on demand for all reasonable and documented out-of pocket expenses (including reasonable fees and disbursements of counsel) that shall have been reasonably incurred by it in connection with this Agreement or the Standby Offer, but the Company shall then be under no further liability to the Standby Purchasers with respect to this Agreement except as provided in Section 6(h)
hereof. 

Section 9. Lock-Up.  Each of Lam Man Pou and Vong Hon Kun hereby agrees for the benefit of the Company, that, without the prior written consent of the Company, such individual will not, during the period ending two years after the date of the Prospectus, directly or indirectly (1) offer, pledge, assign, encumber, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, any Ordinary Shares purchased pursuant to the terms of this Agreement
(the “Lock-Up Shares”) or (2) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the Lock-Up Shares, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of the Lock-Up Shares or such other securities, in cash or otherwise, or publicly announce an intention to do any of the foregoing. The foregoing shall not apply to Lock-Up Shares to be transferred as a gift or gifts (provided that any donee thereof agrees in writing to be bound by the terms hereof). 

Section 10. Survival.  The representations and warranties of the Company and the Standby Purchasers contained in this Agreement together with Sections 6(f), 6(h) and 8(d) shall survive any failure of the Company to commence, or the withdrawal, termination or consummation of any of the Rights Offering or the Standby Offering and any termination of this Agreement. 

Section 11. Notices.  All notices, communications and deliveries required or permitted by this Agreement shall be made in writing signed by the party making the same, shall specify the Section of this Agreement pursuant to which it is given or being made and shall be deemed given or made (a) on the date delivered if delivered in person, (b) on the third (3rd) Business Day after it is mailed if mailed by registered or 

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certified mail (return receipt requested) (with postage and other fees prepaid) or (c) on the day after it is delivered, prepaid, to an overnight express delivery service that confirms to the sender delivery on such day, as follows: 

If to the Company:
 Asia Entertainment & Resources Ltd.
 Unit 605, East Town Building
 16 Fenwick Street
 Wanchai, Hong Kong
 Phone: 852-2111-9220
 Facsimile: 852-2110-9420
 Attention: Raymond Li, Chief Financial Officer 

with a copy to:
 Loeb & Loeb LLP
 345 Park Avenue
 New York, New York 10154
 Facsimile: (212) 407-4000
 Attention: Mitchell S. Nussbaum
 

If to a Standby Purchaser:
 To the address set forth on Exhibit A hereto. 

or to such other representative or at such other address of a party as such party hereto may furnish to the other parties in writing in accordance with this Section 11. 

Section 12. Entire Agreement.  This Agreement embodies the entire agreement and understanding between the parties hereto in respect of the subject matter contained herein. This Agreement supersedes all prior agreements and understandings between the parties with respect to the subject matter of this Agreement. 

Section 13. Governing Law; Jurisdiction.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York. This Agreement shall be subject to the exclusive jurisdiction of the State and Federal courts sitting in New York County, New York. 

Section 14. Severability.  If any provision of this Agreement or the application thereof to any person or circumstances is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to persons or circumstances other than those as to which it has been held invalid, void or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse
to any party. Upon such determination, the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to affect the original intent of the parties. 

Section 15. Modification of the Rights Offering.  The Company may (a) waive irregularities in the manner of exercise of the Rights, and (b) waive conditions relating to the manner (but not the timing) of the exercise of the Rights to the extent that such waiver does not materially adversely affect the interests of the Standby Purchasers. 

Section 16. Miscellaneous. 

(a) The Company shall not after the date of this Agreement enter into any agreement with respect to its securities which is inconsistent with or violates the rights granted to the Standby Purchasers in this Agreement. 

(b) Other than with respect to Indemnified Persons as set forth in Section 6(h) herein, no Person other than the Company and the Standby Purchasers shall be entitled to rely on and/or have the benefit of, as a third party beneficiary or under any other theory, any of the representations, warranties, agreements, covenants or other provisions of this Agreement. 

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(c) The headings in this Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning of this Agreement. 

(d) This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which, when taken together, shall constitute one and the same instrument. 

[EXECUTION PAGE APPEARS NEXT] 

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[EXECUTION PAGE TO STANDBY PURCHASE AGREEMENT] 

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of the date first above written. 

COMPANY 

ASIA ENTERTAINMENT & RESOURCES LTD. 

		By:	/s/ Leong Siak Hung

Name: Leong Siak Hung
 Title: Chief Executive Officer 

STANDBY PURCHASERS 

/s/ Lam Man Pou

Lam Man Pou 

/s/ Lam Chou In

Lam Chou In 

/s/ Vong Hon Kun

Vong Hon Kun 

/s/ Zheng An Ting

Zheng An Ting 

/s/ So Kam Tai

So Kam Tai 

/s/ Au Chun Yin

Au Chun Yin 

/s/ Chan Fok Hoi

Chan Fok Hoi 

/s/ Chan Kai Ian

Chan Kai Ian 

/s/ Sin Kam Chan

Sin Kam Chan 

/s/ Leong Wai Meng

Leong Wai Meng 

/s/ Cheung Mee Mo

Cheung Mee Mo 

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Exhibit A 

		 	
	Name and Address of Standby Purchaser	 	Percentage
	Lam Man Pou	 	16%
	Lam Chou In	 	18%
	Vong Hon Kun	 	18%
	Zheng An Ting	 	 8%
	So Kam Tai	 	7.5%
	Au Chun Yin	 	7.5%
	Chan Fok Hoi	 	7.5%
	Chan Kai Ian	 	 3%
	Sin Kam Chan	 	7.5%
	Leong Wai Meng	 	3.5%
	Cheung Mee Mo	 	3.5%

12Exhibit 10.3

REGISTRATION RIGHTS AGREEMENT 

REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of June 4, 2013, between Asia Entertainment & Resources Ltd., a Cayman Islands company (the “Company”), and each of the investors set forth on Exhibit A hereto (each, an “Investor” and collectively, the “Investors”). 

This Agreement is made pursuant to that certain Standby Purchase Agreement (the “Purchase Agreement”), dated as of the date hereof, between the Company and the Investors. 

The parties accordingly agree as follows: 

ARTICLE I
 DEFINITIONS. 

Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings: 

1.1 “Commission” means the Securities and Exchange Commission. 

1.2 “Company” is defined in the Preamble. 

1.3 “Demand Notice” is defined in Section 2.1. 

1.4 “Effective Date” means the date on which the Commission declares a Registration Statement effective. 

1.5 “Effectiveness Deadline” means a date no later than ninety (90) days following the Filing Deadline. 

1.6 “Effectiveness Period” means the period commencing on the Effective Date and ending on the earlier of the date when all of the Registrable Securities covered by such Registration Statement have been sold or otherwise no longer meet the definition of Registrable Securities. 

1.7 “Event” is defined in Section 2.4. 

1.8 “Event Date” is defined in Section 2.4. 

1.9 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor statute. 

1.10 “Filing Deadline” means a date no later than sixty (60) days following the date of the Demand Notice. 

1.11 “Holder” or “Holders” means each Investor and any other person holding Registrable Securities or any of their respective affiliates or transferees to the extent any of them hold Registrable Securities, other than those purchasing Registrable Securities in a market transaction. 

1.12 “Indemnified Party” is defined in Section 6.3. 

1.13 “Indemnifying Party” is defined in Section 6.3. 

1.14 “Ordinary Shares” means ordinary shares of the Company, par value $0.0001 per share. 

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

1.16 “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 such 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. 

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1.17 “Purchase Agreement” is defined in the Preamble. 

1.18 “Registrable Securities” means the (i) Shares and (ii) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing, provided, that any of the foregoing securities shall cease to be Registrable Securities upon the earliest to occur of the following: (A) a sale pursuant to an effective Registration Statement (b) a sale pursuant to Rule 144 (in which case, only such security sold shall cease to be a Registrable Security); or (C) eligibility for sale without current public information requirements and volume or manner
of sale restrictions pursuant to Rule 144. 

1.19 “Registration Statement” means each registration statement required to be filed hereunder, including the Prospectus therein, amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement. Notwithstanding the foregoing, Registration Statement excludes a registration statement on Form S-4 or Form S-8, or their successors, or any registration statement covering only securities proposed to be issued in exchange for
securities or assets of another entity. 

1.20 “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. 

1.21 “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. 

1.22 “Securities Act” means the Securities Act of 1933, as amended, and any successor statute. 

1.23 “Shares” means the Ordinary Shares issued pursuant to the Purchase Agreement. 

1.24 “Trading Market” means any of the NASD Over The Counter Bulletin Board, NASDAQ Capital Market, the NASDAQ Global Market, the American Stock Exchange or the New York Stock Exchange. 

ARTICLE II
 DEMAND REGISTRATION. 

2.1 Demand Notice. 

(a) At any time and from time to time on or after July 1, 2013, the Investors holding a majority-in-interest of the Registrable Securities may make a written demand for registration under the Securities Act of all or part of their Registrable Securities (a “Demand Notice”). A Demand Notice shall specify the number of Registrable Securities proposed to be sold and the intended method(s) of distribution thereof. The Company will notify all Holders of the demand, and each Holder who wishes to include all or a portion of its Registrable Securities in the Registration Statement shall so notify the Company within
five (5) days after the receipt by the Holder of the Company’s notice and shall be entitled to have such Holder’s Registrable Securities included in the Registration Statement, subject to Section 2.3 and the provisos set forth in Section 2.1(b). The Company shall not be obligated to effect more than an aggregate of one (1) registration under this Section 2.1. 

(b) Notwithstanding the provisions of Section 2.1(a), the Company shall not be obligated to take any action to effect a registration following receipt of a Demand Notice: 

(i) If the Company shall furnish to such Holders a certificate signed by the Chief Executive Officer of the Company stating that in the good faith judgment of the board of directors of the Company it would be seriously detrimental to the Company or its shareholders for a registration statement to be filed in the near future, in which case the Filing Deadline and the Effectiveness Deadline shall be extended for a period not to exceed one hundred eighty (180) days. 

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(ii) During the period starting with the date thirty (30) days prior to the Company’s estimated date of filing of, and ending on the date three months immediately following the effective date of, any registration statement pertaining to securities of the Company (other than a registration of securities on Form F-4, S-4 or S-8), provided that the Company is actively employing in good faith all commercially reasonable efforts to cause such registration statement to become effective; or 

(iii) If a Registration Statement pursuant to this Section 2.1 has been declared effective and remains effective. 

2.2 Registration.  In case the Company shall receive a Demand Notice, the Company shall, on or prior to the Filing Deadline, prepare and file with the Commission a Registration Statement covering the Registrable Securities for a selling stockholder resale offering to be made on a continuous basis pursuant to Rule 415. Each Registration Statement shall be on Form F-3 (except if the Company is not then eligible to register for resale the Registrable Securities on Form F-3, in which case such registration shall be on another appropriate form in accordance herewith). The Company shall use its commercially
reasonable efforts to cause the Registration Statement to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in no event later than the Effectiveness Deadline, and to remain effective continuously throughout the Effectiveness Period. The Company shall promptly notify the Holders via facsimile or electronic mail of a “.pdf” format data file of the effectiveness of a Registration Statement within one (1) business day of the Effective Date. The Company shall, by 9:30 a.m. New York City time on the first business day after the Effective Date, file a final Prospectus with the Commission, as required by Rule 424(b) of the Securities Act. Notwithstanding the registration obligations set forth in this Article 2, in the event the Commission informs the Company that all of the Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale on a single registration statement, the Company agrees
to promptly (i) inform each of the Holders thereof, (ii) use its commercially reasonable efforts to file amendments to the Registration Statement as required by the Commission and/or (iii) withdraw the Registration Statement and file a new registration statement (a “New Registration Statement”), in either case covering the maximum number of Registrable Securities permitted to be registered by the Commission, on Form F-3 or such other form available to register for resale the Registrable Securities as a secondary offering; provided, however, that prior to filing such amendment or New Registration Statement, the Company shall be obligated to use its commercially reasonable efforts to advocate with the Commission for the registration of all of the Registrable Securities in accordance with the SEC Guidance, including without limitation, the Manual of Publicly Available Telephone Interpretations D.29. In the event the Company amends the Initial Registration Statement or
files a New Registration Statement, as the case may be, under clauses (ii) or (iii) above, the Company will use its commercially reasonable efforts to file with the Commission, as promptly as allowed by Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements on Form F-3 or such other form available to register for resale those Registrable Securities that were not registered for resale on the Registration Statement, as amended, or the New Registration Statement (the “Remainder Registration Statements”). 

2.3 Selling Stockholder Questionnaire.  Each Holder desiring to have its Registrable Securities included in a Registration Statement under this Article II agrees to furnish to the Company a completed selling stockholder questionnaire in the form attached as Schedule 2.3 (the “Selling Stockholder Questionnaire”) at least ten (10) business days prior to the Filing Deadline. The Company shall notify a Holder if it requires additional information from that Holder other than the information contained in the Selling Stockholder Questionnaire, which additional information shall be completed
and delivered to the Company promptly following such request. Each Holder further agrees that it shall not be entitled to be named as a selling securityholder in the Registration Statement or use the Prospectus for offers and resales of Registrable Securities at any time, unless such Holder has returned to the Company a completed and signed Selling Stockholder Questionnaire and a response to any requests for further information as described in the previous sentence. If a Holder of Registrable Securities returns a Selling Stockholder Questionnaire or a request for further information, in either case, after its respective deadline, the Company shall use its commercially reasonable efforts at the expense of the Holder who failed to return the Selling Stockholder Questionnaire or to respond for further information to take such actions as are required to name such Holder as a selling security holder in the Registration Statement or any pre-effective or post-effective amendment thereto and
to 

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include (to the extent not theretofore included) in the Registration Statement the Registrable Securities identified in such late Selling Stockholder Questionnaire or request for further information. Each Holder acknowledges and agrees that the information in the Selling Stockholder Questionnaire or request for further information as described in this Section 2.3 will be used by the Company in the preparation of the Registration Statement and hereby consents to the inclusion of such information in the Registration Statement. 

2.4 Material Non-Public Information.  Notwithstanding anything to the contrary herein, at any time after the Registration Statement has been declared effective by the Commission, the Company may delay the disclosure of material non-public information concerning the Company if the disclosure of such information at the time is not, in the good faith judgment of the Company, in the best interests of the Company (a “Grace Period”); provided, however, the Company shall promptly (i) notify the Holders in writing of the existence of material non-public information giving rise to a Grace Period
(provided that the Company shall not disclose the content of such material non-public information to the Holders) or the need to file a post-effective amendment, as applicable, and the date on which such Grace Period will begin, and (ii) notify the Holders in writing of the date on which the Grace Period ends; provided, further, that no single Grace Period shall exceed thirty (30) consecutive days, and during any three hundred sixty-five (365) day period, the aggregate of all Grace Periods shall not exceed an aggregate of sixty (60) days (each Grace Period complying with this provision being an “Allowable Grace Period”). In the event the Company does disclose the content of such material non-public information that is the subject of subpart (i) above to any Holder without its consent, the Company shall make public disclosure of such material nonpublic information within two (2) Trading Days of such disclosure and no Grace Period shall apply. For purposes of determining
the length of a Grace Period, the Grace Period shall be deemed to begin on and include the date the Holders receive the notice referred to in clause (i) above and shall end on and include the later of the date the Holders receive the notice referred to in clause (ii) above and the date referred to in such notice; provided, however, that no Grace Period shall be longer than an Allowable Grace Period. Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended certificates to a transferee of a Holder in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which a Holder has entered into a contract for sale prior to the Holder’s receipt of the notice of a Grace Period and for which the Holder has not yet settled. 

ARTICLE III
 COMPANY REGISTRATION 

3.1 Notice of Registration.  If at any time or from time to time the Company shall determine to register any of its Ordinary Shares exclusively for cash, either for its own account or the account of security holders, other than (i) a registration on Form S-8 or otherwise relating solely to employee benefit plans, (ii) a registration on Form F-4 or S-4, (iii) a registration on any other form which does not permit secondary sales, or (iv) a registration on any other form which does not include substantially the same information as would be required to be included in a registration statement covering the sale of
the Registrable Securities, the Company shall: 

(a) promptly give to each Holder written notice thereof; and 

(b) except as set forth in Section 4.2, include in such registration (and any related qualification under blue sky laws or other compliance), and in any underwriting involved therein, all Registrable Securities as are specified in a written request or requests, actually received by the Company within 20 days after receipt of such written notice from the Company, by any Holder. 

3.2 Underwritten Offerings.  If the registration of which the Company gives notice is for a registered public offering involving an underwriting, the Company shall so advise the Holders as a part of the written notice given pursuant to Section 3.1. In such event the right of any Holder to registration pursuant to Section 3.1 shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities through such underwriting
shall (together with the Company and the other holders distributing their securities through such underwriting) enter into an underwriting agreement in customary form with the managing underwriter selected for such underwriting by the Company. The foregoing shall include, without limitation, such powers of attorney and escrow agreements as the underwriters may require. 

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Notwithstanding any other provision of Article III, if the managing underwriter determines that marketing factors require a limitation of the number of shares to be underwritten, the managing underwriter may limit the Registrable Securities to be included in such registration, it being understood that the shares proposed to sold by the Company in such underwriting shall be given priority and shall not be subject to any such limitation vis-a-vis the Registrable Securities. The Company shall so advise all Holders and other holders distributing their securities through such underwriting, and the number of shares of
Registrable Securities that may be included in the registration and underwriting shall be allocated among all Holders and such other holders in proportion, as nearly as practicable, to the respective amounts of Registrable Securities held by such Holders and such other holders at the time of filing the registration statement. To facilitate the allocation of shares in accordance with the above provisions, the Company may round the number of shares allocated to any Holder to the nearest 100 shares. If any Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and the managing underwriter. 

The Registrable Securities so excluded or withdrawn shall also be excluded or withdrawn from registration, and neither such Registrable Securities nor any securities convertible into or exchangeable or exercisable for Ordinary Shares shall be sold in any public sale or other distribution, without the prior written consent of the Company or such underwriters, for such period of time before and after (not to exceed thirty (30) days before and one hundred eighty (180) days after) the effective date of the registration statement relating thereto as the underwriters may require. 

3.3 Company Termination of Registration.  The Company reserves the right to terminate any registration under this Article III at any time and for any reason without liability to any Holder. 

ARTICLE IV
 Registration Procedures 

4.1 Registration Procedures.  If and whenever the Company is required by the provisions of Articles II or III hereof to effect the registration of any Registrable Securities under the Securities Act, the Company will, as expeditiously as possible: 

(a) prepare and file with the Commission a Registration Statement with respect to such Registrable Securities, respond as promptly as possible to any comments received from the Commission, and use its commercially reasonable efforts to cause such Registration Statement to become and remain effective for the Effectiveness Period with respect thereto, and the Investors shall have the opportunity to object to any information pertaining to itself that is contained therein and the Company will make the corrections reasonably requested by the Investors with respect to such information prior to filing any Registration Statement or
amendment thereto or any Prospectus or any supplement thereto; 

(b) prepare and file with the Commission such amendments and supplements to such Registration Statement and the Prospectus used in connection therewith as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such Registration Statement and to keep such Registration Statement effective until the expiration of the Effectiveness Period applicable to such Registration Statement; 

(c) furnish to the Investors such number of copies of the Registration Statement and the Prospectus included therein (including each preliminary Prospectus and any amendments and supplements to the Registration Statement and the Prospectus) and such other documents as the Investors reasonably may request to facilitate the public sale or disposition of the Registrable Securities covered by such Registration Statement; 

(d) use its commercially reasonable efforts to register or qualify the Investors’ Registrable Securities covered by such Registration Statement under the securities or “blue sky” laws of such jurisdictions within the United States as the Investors may reasonably request and do any and all other acts and things which may be reasonably necessary or advisable to enable the Investors to consummate the disposition in such jurisdiction of the Registrable Securities, provided, however, that the Company shall not for any such purpose be required to qualify generally to transact business as a foreign corporation in any
jurisdiction where it is not so qualified or to consent to general service of process in any such jurisdiction; 

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(e) list the Registrable Securities covered by such Registration Statement with any securities exchange on which the Ordinary Shares are then listed and, if the Ordinary Shares are not then listed, list the Registrable Securities on Nasdaq or a national securities exchange selected by the Company; 

(f) immediately notify the Investors at any time when a Prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event as a result of which the Prospectus contained in such Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and, at the request of the Investors, the Company shall prepare a supplement or amendment to such Prospectus so that, as thereafter delivered to the purchasers of Registrable Securities, such
Prospectus shall not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statement therein not misleading; 

(g) make available for inspection by the Investors and any attorney, accountant or other agent retained by the Investors, all publicly available, non-confidential financial and other records, pertinent corporate documents and properties of the Company, and cause the Company’s officers, directors and employees to supply all publicly available, non-confidential information reasonably requested by the attorney, accountant or agent of the Investors; 

(h) provide a transfer agent and registrar for all such Registrable Securities not later than the effective date of such Registration Statement; 

(i) if requested, cause to be delivered, immediately prior to the effectiveness of the Registration Statement, letters from the Company’s independent certified public accountants addressed to the Investors (unless the Investors do not provide to such accountants the appropriate representation letter required by rules governing the accounting profession) stating that such accountants are independent public accountants within the meaning of the Securities Act and the applicable rules and regulations adopted by the SEC thereunder, and otherwise in customary form and covering such financial and accounting matters as are
customarily covered by letters of the independent certified public accountants delivered in connection with primary or secondary underwritten public offerings, as the case may be; and 

(j) at all times after the Company has filed a Registration Statement with the SEC pursuant to the requirements of either the Securities Act or the Exchange Act, the Company shall file all reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder, and take such further action as the Investors may reasonably request, all to the extent required to enable the Investors to be eligible to sell Registrable Securities pursuant to Rule 144 (or any similar rule then in effect). 

ARTICLE V
 REGISTRATION EXPENSES. 

5.1 Registration Expenses.  All expenses relating to the Company’s compliance with Articles II and III hereof, including, without limitation, all registration, filing and listing application fees, costs of distributing any prospectuses and supplements thereto, printing expenses, fees and disbursements of counsel and independent public accountants for the Company, fees and expenses (including counsel fees) incurred in connection with complying with state securities or “blue sky” laws, fees of FINRA, transfer taxes and fees of transfer agents and registrars (collectively, the “Registration
Expenses”) shall be borne by the Company. The obligation of the Company to bear the Registration Expenses shall apply irrespective of whether a registration, becomes effective, is withdrawn or suspended, is converted to another form of registration and irrespective of when any of the foregoing shall occur. Notwithstanding the foregoing, if because of the allocation of Registration Expenses set forth above, the Company is unable to register or qualify its securities under the “blue sky” or state securities laws of any jurisdiction in which the Company had originally intended to register or qualify its securities, the Holders shall bear all incremental expenses of such registration attributable to such inability. 

5.2 Selling Expenses.  All underwriting discounts and selling commissions applicable to the sale of Registrable Securities, and any fees and disbursements of any counsel to the Holders beyond those included in Registration Expenses (collectively, the “Selling Expenses.” shall be borne by the Holders. 

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ARTICLE VI
 INDEMNIFICATION. 

6.1 Company Indemnification.  In the event of a registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Company shall indemnify and hold harmless each Holder, and its officers, directors and each other person, if any, who controls such Holder within the meaning of the Securities Act, against any losses, claims, damages or liabilities, joint or several, to which such Holder, or such persons may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in any Registration Statement under which such Registrable Securities were registered under the Securities Act pursuant to this Agreement, any preliminary Prospectus or final Prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or any violation or alleged violation by the Company of the Securities Act, the Exchange Act or applicable “blue sky” laws, and shall reimburse such Holder, and each such person for any legal or other expenses incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case if and to the extent that any such loss, claim, damage or liability arises out of
or is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished in writing by or on behalf of a Holder specifically for use in any such document. 

6.2 Holder Indemnification.  Each Holder of Registrable Securities included in a Registration Statement pursuant to this Agreement shall indemnify and hold harmless the Company, and its officers, directors and each other person, if any, who controls the Company within the meaning of the Securities Act, against all losses, claims, damages or liabilities, joint or several, to which the Company or such persons may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact which was furnished in writing by the Investors to the Company expressly for use in (and such information is contained in) the Registration Statement under which such Registrable Securities were registered under the Securities Act pursuant to this Agreement, any preliminary Prospectus or final Prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and shall reimburse the Company and each such person for any reasonable legal or other expenses incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action, provided, however, that a Holder shall be liable in any such case if and only to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement
or alleged untrue statement or omission or alleged omission so made in conformity with information furnished in writing to the Company by or on behalf of such Holder specifically for use in any such document. Notwithstanding the provisions of this paragraph, a Holder shall not be required to indemnify any person or entity in excess of the amount of the aggregate net proceeds received by the Holder in respect of Registrable Securities in connection with any such registration under the Securities Act. 

6.3 Indemnification Procedures.  Promptly after receipt by a party entitled to claim indemnification hereunder (an “Indemnified Party”) of notice of the commencement of any action, such Indemnified Party shall, if a claim for indemnification in respect thereof is to be made against a party hereto obligated to indemnify such Indemnified Party (an “Indemnifying Party”), notify the Indemnifying Party in writing thereof, but the omission so to notify the Indemnifying Party shall not relieve it from any liability which it may have to such Indemnified Party other than under this 
Section 6.3 and shall only relieve it from any liability which it may have to such Indemnified Party under this Section 6.3 if and to the extent the Indemnifying Party is prejudiced by such omission. In case any such action shall be brought against any Indemnified Party and it shall notify the Indemnifying Party of the commencement thereof, the Indemnifying Party shall be entitled to participate in and, to the extent it shall wish, to assume and undertake the defense thereof with counsel satisfactory to such Indemnified Party, and, after notice from the Indemnifying Party to such Indemnified Party of its election so to assume and undertake the defense thereof, the Indemnifying Party shall not be liable to such Indemnified Party under this Section 6.3 for any legal expenses subsequently 

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incurred by such Indemnified Party in connection with the defense thereof; if the Indemnified Party retains its own counsel, then the Indemnified Party shall pay all fees, costs and expenses of such counsel; provided, however, that, if the defendants in any such action include both the Indemnified Party and the Indemnifying Party and the Indemnified Party shall have reasonably concluded that there may be reasonable defenses available to it which are different from or additional to those available to the Indemnifying Party or if the interests of the Indemnified Party reasonably may be deemed to conflict with the interests of the
Indemnifying Party, the Indemnified Party shall have the right to select one separate counsel and to assume such legal defenses and otherwise to participate in the defense of such action, with the reasonable expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the Indemnifying Party as incurred. 

6.4 Contribution.  In order to provide for just and equitable contribution in the event of joint liability under the Securities Act in any case in which either (i) a Holder, or any officer, director or controlling person of a Holder, makes a claim for indemnification pursuant to this Section 6.4 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that this Section 6.4
provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of the Investors or such officer, director or controlling person of such Investor in circumstances for which indemnification is provided under this Section 6.4; then, and in each such case, the Company and the Investors shall contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (after contribution from others) in such proportion so that the Investors are responsible only for the portion represented by the percentage that the public offering price of its securities offered by the Registration Statement bears to the public offering price of all securities offered by such Registration Statement, provided, however, that, in any such case, (A) the Investors shall not be required to contribute any amount in excess of the public offering price of all such securities offered by it pursuant to such Registration Statement; and (B)
no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 10(f) of the Act) shall be entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation. 

6.5 Survival.  The indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party or any officer, director or controlling Person of such indemnified party and shall survive the transfer of securities. 

ARTICLE VII
 MISCELLANEOUS. 

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

7.2 Discontinued Disposition.  Each Holder agrees by its acquisition of Registrable Securities that, upon receipt of a notice from the Company of the occurrence of a Discontinuation Event (as defined below), such Holder shall forthwith discontinue disposition of such Registrable Securities under the applicable 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 Section 7.2. For purposes of this Agreement, a “Discontinuation Event” shall mean (i) 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); (ii) any request by the Commission or any other Federal or state governmental authority for amendments or supplements to such Registration Statement or Prospectus or for additional information; (iii) the issuance by the Commission of any stop order suspending the effectiveness of such Registration Statement covering any or
all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of 

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the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and/or (v) the occurrence of any event or passage of time that makes the financial statements included in such 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 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. 

7.3 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 F-4, 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 the Company’s stock option or other employee benefit plans, then the Company shall deliver to each Holder a written notice of such determination and, if within fifteen days after the date of the delivery 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; provided, however, that the Company shall not be required to register any Registrable Securities pursuant to this Section 6(e) that are eligible for resale pursuant to Rule 144 (without volume restrictions or current public information requirements) promulgated by the Commission pursuant to the Securities Act or that are the subject of a then effective Registration Statement. 

7.4 Entire Agreement.  This Agreement sets forth the entire agreement of the parties with respect to the subject matter hereof. No provision of this Agreement may be explained or qualified by any prior or contemporaneous understanding, negotiation, discussion, conduct, or course of conduct or by any trade usage, and, except as otherwise expressly stated herein, there is no condition precedent to the effectiveness of any provision hereof. No party has relied on any representation, warranty, or agreement of any person in entering this Agreement, except those expressly stated herein. 

7.5 Counterparts; Facsimile Signatures.  This Agreement may be executed in counterparts, each of which shall constitute an original, but all of which shall constitute one agreement. This Agreement shall become effective upon delivery to each party of an executed counterpart or the earlier delivery to each party of original, photocopied, or electronically transmitted signature pages that together (but need not individually) bear the signatures of all other parties. 

7.6 Amendments; Waivers; Remedies. 

(a) This Agreement cannot be amended, except by a writing signed by each party, or terminated orally or by course of conduct. No provision hereof can be waived, except by a writing signed by the party against whom such waiver is to be enforced, and any such waiver shall apply only in the particular instance in which such waiver shall have been given. 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, however, that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of the immediately preceding sentence. 

(b) Neither any failure or delay in exercising any right or remedy hereunder or in requiring satisfaction of any condition herein nor any course of dealing shall constitute a waiver of or prevent any party from enforcing any right or remedy or from requiring satisfaction of any condition. No notice to or demand on a party waives or otherwise affects any obligation of that party or impairs any right of the party giving such notice or making such demand, including any right to take any action without notice or demand not otherwise required by this Agreement. No exercise of any right or remedy with respect to a breach of this
Agreement 

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shall preclude exercise of any other right or remedy, as appropriate to make the aggrieved party whole with respect to such breach, or subsequent exercise of any right or remedy with respect to any other breach. 

(c) Except as otherwise expressly provided herein, no statement herein of any right or remedy shall impair any other right or remedy stated herein or that otherwise may be available. 

(d) Notwithstanding anything else contained herein, neither shall any party seek, nor shall any party be liable for, punitive or exemplary damages, under any tort, contract, equity, or other legal theory, with respect to any breach (or alleged breach) of this Agreement or any provision hereof or any matter otherwise relating hereto or arising in connection herewith. 

7.7 Notices.  Any notice hereunder shall be sent in writing, addressed as specified below, and shall be deemed given: if by hand or recognized courier service, by 4:00PM on a business day, addressee’s day and time, on the date of delivery, and otherwise on the first business day after such delivery; if by fax, on the date that transmission is confirmed electronically, if by 4:00PM on a business day, addressee’s day and time, and otherwise on the first business day after the date of such confirmation; or five days after mailing by certified or registered mail, return receipt requested. Notices shall
be addressed to the respective parties as follows (excluding telephone numbers, which are for convenience only), or to such other address as a party shall specify to the others in accordance with these notice provisions: 

To Company, at: 

Asia Entertainment & Resources Ltd.
 Unit 605, East Town Building
 16 Fenwick Street
 Wanchai, Hong Kong
 Phone: 852-2111-9220
 Facsimile: 852-2110-9420
 Attention: Raymond Li, Chief Financial Officer 

with a copy (not constituting notice) to 

Loeb & Loeb LLP
 345 Park Avenue
 New York, New York 10154
 Facsimile: (212) 407-4000
 Attention: Mitchell S. Nussbaum 

To Investors at 

To the address set forth on Exhibit A hereto. 

To any other Person who is then the registered Holder at the address of such Holder as it appears in the stock transfer books of the Company 

7.8 Governing Law; Jurisdiction.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York. This Agreement shall be subject to the exclusive jurisdiction of the State and Federal courts sitting in New York County, New York. 

7.9 Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties, including without limitation and without the need for an express assignment, subsequent Holders of Registrable Securities. 

7.10 Further Assurances.  Each party shall execute and deliver such documents and take such action, as may reasonably be considered within the scope of such party’s obligations hereunder, necessary to effectuate the transactions contemplated by this Agreement. 

[Balance of page intentionally left blank; signature page follows] 

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

ASIA ENTERTAINMENT & RESOURCES LTD. 

		By:	/s/ Leong Siak Hung
Name: Leong Siak Hung
 Title: Chief Executive Officer 

INVESTORS 

/s/ Lam Man Pou

Lam Man Pou 

/s/ Lam Chou In

Lam Chou In 

/s/ Vong Hon Kun

Vong Hon Kun 

/s/ Zheng An Ting

Zheng An Ting 

/s/ So Kam Tai

So Kam Tai 

/s/ Au Chun Yin

Au Chun Yin 

/s/ Chan Fok Hoi

Chan Fok Hoi 

/s/ Chan Kai Ian

Chan Kai Ian 

/s/ Sin Kam Chan

Sin Kam Chan 

/s/ Leong Wai Meng

Leong Wai Meng 

/s/ Cheung Mee Mo

Cheung Mee Mo 

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Exhibit A 

Lam Man Pou 

Lam Chou In 

Vong Hon Kun 

Zheng An Ting 

So Kam Tai 

Au Chun Yin 

Chan Fok Hoi 

Chan Kai Ian 

Sin Kam Chan 

Leong Wai Meng 

Cheung Mee Mo 

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Schedule 2.3
  
Selling Stockholder Questionnaire 

13

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