Document:

f8k020111ex10i_neweratech.htm

 

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

THIS SECURITIES PURCHASE AGREEMENT (“Agreement”) is made as of the 28th day of January, 2011, by and among NewEra Technology Development Co., Ltd., a Nevada corporation, with an address at 25-1303 Dongjin City Suite, East Dongshan Road, Huaina, Anhui Province, P.R.C. 232001 (the “Company”), and the Investors set forth on the signature pages affixed hereto (each an “Investor” and collectively the “Investors”).

Recitals:

A.           The Company and the Investors are executing and delivering this Agreement in connection with an offering of securities of the Company (the “Offering”) in reliance upon the exemption from securities registration afforded by the provisions of Regulation D (“Regulation D”) and Regulation S (“Regulation S”), as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “1933 Act”); and

B.           The Investors wish to purchase from the Company, and the Company wishes to sell and issue to the Investors, upon the terms and conditions stated in this Agreement, shares of Company’s Common Stock, $0.001 par value per share (the “Common Stock”) aggregating an amount of $3,782,393 (the “Offering Shares”).

C.           The purchase price shall be $3.5769 per share of Common Stock (the “Share Purchase Price”); and

D.           Pursuant to its terms an aggregate of up to 1,057,450 Offering Shares may be sold in this offering; and

In consideration of the mutual promises made herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.            Definitions.  In addition to those terms defined above and elsewhere in this Agreement, for the purposes of this Agreement, the following terms shall have the meanings set forth below:

“Affiliate” means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries Controls, is controlled by, or is under common control with, such Person.

“Business Day” means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction of business.

 

 

  

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“Common Stock” means the Company’s common stock, par value $0.001 per share, and any securities into which the common stock may be reclassified.

“Company’s Knowledge” means the actual knowledge of the executive officers (as defined in Rule 405 under the 1933 Act) of the Company, after due inquiry.

“Confidential Information” means trade secrets, confidential information and know-how (including but not limited to ideas, formulae, compositions, processes, procedures and techniques, research and development information, computer program code, performance specifications, support documentation, drawings, specifications, designs, business and marketing plans, and customer and supplier lists and related information).

“Control” (including the terms “controlling”, “controlled by” or “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

“Escrow Agent” means Allbright Law Offices.

“Escrow Agreement” means the Escrow Agreement the Company, the Investors and the Escrow Agent will enter into at the Closing, in substantially the form attached hereto as Exhibit A.

“Intellectual Property” means all of the following: (i) patents, patent applications, patent disclosures and inventions (whether or not patentable and whether or not reduced to practice); (ii) trademarks, service marks, trade dress, trade names, corporate names, logos, slogans and Internet domain names, together with all goodwill associated with each of the foregoing; (iii) copyrights and copyrightable works; (iv) registrations, applications and renewals for any of the foregoing; and (v) proprietary computer software (including but not limited to data, data bases and documentation).

“Material Adverse Effect” means a material adverse effect on (i) the assets, liabilities, results of operations, condition (financial or otherwise), business, or prospects of the Company and its Subsidiaries taken as a whole, or (ii) the ability of the Company to perform its obligations under the Transaction Documents.

“Person” means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein.

“Purchase Price” means up to a maximum of $3,782,393.

“SEC Filings” has the meaning set forth in Section 4.6.

“Securities” means the Offering Shares.

 

 

  

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“Shares” means the shares of Common Stock and to be purchased in connection with the Offering.

“Subsidiary” of any Person means another Person, an amount of the voting securities, other voting ownership or voting partnership interests of which is sufficient to elect at least a majority of its Board of Directors or other governing body (or, if there are no such voting interests, 50% or more of the equity interests of which) is owned directly or indirectly by such first Person.

“Transaction Documents” means this Agreement, the Escrow Agreement, and certain other papers, agreements, documents, instruments and certificates necessary to carry out the purposes thereof.

“Transfer Agent” means Corporate Stock Transfer, the Company’s transfer agent.

“1933 Act” has the meaning set forth in the Recitals above.

“1934 Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

2.           Purchase and Sale of the Offering Shares.

2.1           Purchase and Sale. Subject to the terms and conditions of this Agreement, on the Closing Date, the Investors shall severally, and not jointly, purchase, and the Company shall sell and issue to the Investors, Offering Shares of the securities in the respective amounts set forth opposite the Investors’ names on the signature pages attached hereto in exchange for payment of each Investor’s pro rata share of the Purchase Price as specified in Section 3 below; provided, however, that not more than $3,782,393 of Offering Shares, in the aggregate, shall be purchased in this Offering.

3.           Closing.  Each Investor shall deliver, or cause to be delivered, their pro rata share of the Purchase Price to the Escrow Agent, in immediately available funds, to be held and disbursed by the Escrow Agent as provided in the Escrow Agreement.  The Escrow Agent shall promptly notify the Company of its receipt of the aggregate Share Purchase Price from any Investor and shall deposit such amount in an interest bearing account, as further set forth in the Escrow Agreement.  The Company shall deliver certificates representing the appropriate number of Offering Shares to the Escrow Agent to be held and disbursed by the Escrow Agent as provided in the Escrow Agreement.  The Escrow Agent shall promptly notify the Investor Agent of its receipt of the Shares for each Investor.  The Share Purchase Price and Offering Shares are hereafter referred to collectively as, the “Escrow Property”).  The Escrow Agent shall hold the Escrow Property in accordance with the terms and conditions of the Escrow Agreement.  In the event there are any inconsistencies between the terms of the Escrow Agreement as discussed herein and the actual Escrow Agreement, the Escrow Agreement shall govern.  On the date (the “Closing Date”) the Escrow Agent receives joint written instructions from the Company and the Investor Agent directing the manner in which the Escrow Agent shall distribute all or any portion of the Purchase Price, plus any interest earned thereon, and the Shares, and provided each of the conditions set forth in Section 6 hereof have been satisfied or waived by the appropriate party or parties, the Escrow Property shall be released to the Investors and the Company, as applicable (each, a “Closing”).  The Closing(s) shall take place at the offices of Anslow & Jaclin, LLP, 195 Route 9 South, Suite 204, Manalapan, NJ 07726, or at such other location and on such other date as the Company and the Investors shall mutually agree.

 

 

  

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4.           Representations and Warranties of the Company.  The Company hereby represents and warrants to the Investors that, except as set forth in the schedules delivered herewith (collectively, the “Disclosure Schedules”):

4.1           Organization, Good Standing and Qualification.  Each of the Company and its Subsidiaries is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has all requisite corporate power and authority to carry on its business as now conducted and to own its properties.  Each of the Company and its Subsidiaries is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property makes such qualification or leasing necessary unless the failure to so qualify has not had and could not reasonably be expected to have a Material Adverse Effect.  The Company’s Subsidiaries are listed on Schedule 4.1 hereto.

4.2           Authorization.  The Company has full power and authority and, except as described in Schedule 4.2, has taken all requisite action on the part of the Company, its officers, directors and stockholders necessary for (i) the authorization, execution and delivery of the Transaction Documents, (ii) the authorization of the performance of all obligations of the Company hereunder or thereunder, and (iii) the authorization, issuance (or reservation for issuance) and delivery of the Securities.  The Transaction Documents constitute the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating to or affecting creditors’ rights generally.

4.3           Capitalization.  Schedule 4.3 sets forth (a) the authorized capital stock of the Company on the date hereof; (b) the number of shares of capital stock issued and outstanding; (c) the number of shares of capital stock issuable pursuant to the Company’s stock plans; and (d) the number of shares of capital stock issuable and reserved for issuance pursuant to securities (other than the Securities) exercisable for, or convertible into or exchangeable for any shares of capital stock of the Company.  All of the issued and outstanding shares of the Company’s capital stock have been, or will be, duly authorized and validly issued and are fully paid, nonassessable and free of pre-emptive rights and were, or shall be, issued in full compliance with applicable state and federal securities law and any rights of third parties.  Except as described on Schedule 4.3, all of the issued and outstanding shares of capital stock of each Subsidiary have been duly authorized and validly issued and are fully paid, nonassessable and free of pre-emptive rights, were issued in full compliance with applicable state and federal securities law and any rights of third parties and are owned by the Company, beneficially and of record, subject to no lien, encumbrance or other adverse claim.  Except as described on Schedule 4.3, no Person is entitled to pre-emptive or similar statutory or contractual rights with respect to any securities of the Company.  Except as described on Schedule 4.3, there are no outstanding warrants, options, convertible securities or other rights, agreements or arrangements of any character under which the Company or any of its Subsidiaries is or may be obligated to issue any equity securities of any kind and except as contemplated by this Agreement, neither the Company nor any of its Subsidiaries is currently in negotiations for the issuance of any equity securities of any kind.  Except as described on Schedule 4.3, there are no voting agreements, buy-sell agreements, option or right of first purchase agreements or other agreements of any kind among the Company and any of the securityholders of the Company relating to the securities of the Company held by them.  Except as described on Schedule 4.3, no Person has the right to require the Company to register any securities of the Company under the 1933 Act, whether on a demand basis or in connection with the registration of securities of the Company for its own account or for the account of any other Person.

 

 

  

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Except as described on Schedule 4.3, the issuance and sale of the Securities hereunder will not obligate the Company to issue shares of Common Stock or other securities to any other Person (other than the Investors) and will not result in the adjustment of the exercise, conversion, exchange or reset price of any outstanding security.

Except as described on Schedule 4.3, the Company does not have outstanding stockholder purchase rights or “poison pill” or any similar arrangement in effect giving any Person the right to purchase any equity interest in the Company upon the occurrence of certain events.

4.4           Valid Issuance.  The Shares have been duly and validly authorized and, when issued and paid for pursuant to this Agreement, will be validly issued, fully paid and nonassessable, and shall be free and clear of all encumbrances and restrictions (other than those created by the Investors), except for restrictions on transfer set forth in the Transaction Documents.

4.5           Consents.  Except as described in Schedule 4.5, (a) the execution, delivery and performance by the Company of the Transaction Documents, and (b) the offer, issuance and sale of the Securities, require no consent of, action by or in respect of, or filing with, any Person, governmental body, agency, or official other than filings that have been made pursuant to applicable state securities laws and post-sale filings pursuant to applicable state and federal securities laws or any other notices required thereby, all of which the Company undertakes to file within the applicable time periods.  Subject to the accuracy of the representations and warranties of each Investor set forth in Section 5 hereof, the Company has taken all action necessary to exempt (i) the issuance and sale of the Offering Shares, and (iii) any other transactions contemplated by the Transaction Documents from the provisions of any stockholder rights plan or other “poison pill” arrangement, any anti-takeover, business combination or control share law or statute binding on the Company or to which the Company or any of its assets and properties may be subject and any provision of the Company’s Certificate of Incorporation or Bylaws that is or could reasonably be expected to become applicable to the Investors as a result of the transactions contemplated hereby, including without limitation, the issuance of the Securities and the ownership, disposition or voting of the Securities by the Investors or the exercise of any right granted to the Investors pursuant to this Agreement or the other Transaction Documents.

 

 

  

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4.6           Delivery of SEC Filings; Business.  The Company has made available to the Investors through the EDGAR system, true and complete copies of the Company’s Annual Report on Form 10-KSB for the fiscal year ended September 30, 2010 (the “10-KSB”), and all other reports filed by the Company pursuant to the 1934 Act since the filing of the 10-KSB and prior to the date hereof (collectively, the “SEC Filings”).  Except as indicated in the SEC Filings, the SEC Filings are the only filings required of the Company pursuant to the 1934 Act for such period.  The Company and its Subsidiaries are engaged in all material respects only in the business described in the SEC Filings and the SEC Filings contain a complete and accurate description in all material respects of the business of the Company and its Subsidiaries, taken as a whole.

4.7           Use of Proceeds.  The net proceeds from this Offering will be used primarily for: (a) expenses related to the Offering, and (b) general working capital purposes.

 

4.8           No Material Adverse Change.  Since January 28, 2011, the effective date of the Share Exchange Agreement (the “Share Exchange Agreement”) by and among the Company, Grain Wealth Limited, a company incorporated under the laws of the British Virgin Islands and each of the equity owners of Keenway Limited, except as identified and described on Schedule 4.8, or filed with the SEC on reports publicly available at www.sec.gov, there has not been:

(a)           any change in the consolidated assets, liabilities, financial condition or operating results of the Company from that reflected in the financial statements included in the Company’s Current Report on Form 8-K filed with the SEC on January 24, 2011except for changes in the ordinary course of business which have not had and could not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate;

(b)           any declaration or payment of any dividend, or any authorization or payment of any distribution, on any of the capital stock of the Company, or any redemption or repurchase of any securities of the Company;

(c)           any material damage, destruction or loss, whether or not covered by insurance to any assets or properties of the Company or its Subsidiaries;

(d)           any waiver, not in the ordinary course of business, by the Company or any Subsidiary of a material right or of a material debt owed to it;

(e)           any satisfaction or discharge of any lien, claim or encumbrance or payment of any obligation by the Company or a Subsidiary, except in the ordinary course of business and which is not material to the assets, properties, financial condition, operating results or business of the Company and its Subsidiaries taken as a whole (as such business is presently conducted and as it is proposed to be conducted);

(f)           any change or amendment to the Company’s Certificate of Incorporation or Bylaws, or material change to any material contract or arrangement by which the Company or any Subsidiary is bound or to which any of their respective assets or properties is subject;

 

 

  

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(g)           any material labor difficulties or labor union organizing activities with respect to employees of the Company or any Subsidiary;

(h)           any material transaction entered into by the Company or a Subsidiary other than in the ordinary course of business;

(i)           the loss of the services of any key employee, or material change in the composition or duties of the senior management of the Company or any Subsidiary;

(j)           the loss or threatened loss of any customer which has had or could reasonably be expected to have a Material Adverse Effect; or

(k)           any other event or condition of any character that has had or could reasonably be expected to have a Material Adverse Effect.

4.9           SEC Filings.

(a)           At the time of filing thereof, the SEC Filings complied as to form in all material respects with the requirements of the 1934 Act and did not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.

(b)           To the Company’s Knowledge, each registration statement and any amendment thereto filed by the Company pursuant to the 1933 Act and/or 1934 Act, and the rules and regulations thereunder, as of the date such statement or amendment became effective, complied as to form in all material respects with the 1933 Act and/or 1934 Act, and did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made therein not misleading; and each prospectus filed pursuant to Rule 424(b) under the 1933 Act, as of its issue date and as of the closing of any sale of securities pursuant thereto did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.

4.10           No Conflict, Breach, Violation or Default.  The execution, delivery and performance of the Transaction Documents by the Company and the issuance and sale of the Securities will not conflict with or result in a breach or violation of any of the terms and provisions of, or constitute a default under (i) the Company’s Certificate of Incorporation, or the Company’s Bylaws, in effect on the date hereof (true and complete copies of which have been made available to the Investors), or (ii)(a) any statute, rule, regulation or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company, any Subsidiary or any of their respective assets or properties, or (b) any agreement or instrument to which the Company or any Subsidiary is a party or by which the Company or a Subsidiary is bound or to which any of their respective assets or properties is subject.

 

 

  

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4.11           Tax Matters.  The Company and each Subsidiary has timely prepared and filed all tax returns required to have been filed by the Company or such Subsidiary with all appropriate governmental agencies and timely paid all taxes shown thereon or otherwise owed by it.  The charges, accruals and reserves on the books of the Company in respect of taxes for all fiscal periods are adequate in all material respects, and there are no material unpaid assessments against the Company or any Subsidiary nor, to the Company’s Knowledge, any basis for the assessment of any additional taxes, penalties or interest for any fiscal period or audits by any federal, state or local taxing authority except for any assessment which is not material to the Company and its Subsidiaries, taken as a whole.  All taxes and other assessments and levies that the Company or any Subsidiary is required to withhold or to collect for payment have been duly withheld and collected and paid to the proper governmental entity or third party when due.  There are no tax liens or claims pending or, to the Company’s Knowledge, threatened against the Company or any Subsidiary or any of their respective assets or property.  Except as described on Schedule 4.11, there are no outstanding tax sharing agreements or other such arrangements between the Company and any Subsidiary or other corporation or entity.

4.12           Title to Properties.  Except as disclosed in Schedule 4.12, the Company and each Subsidiary has good and marketable title to all real properties and all other properties and assets owned by it, in each case free from liens, encumbrances and defects that would materially affect the value thereof or materially interfere with the use made or currently planned to be made thereof by them; and except as disclosed in Schedule 4.12, the Company and each Subsidiary holds any leased real or personal property under valid and enforceable leases with no exceptions that would materially interfere with the use made or currently planned to be made thereof by them.

4.13           Certificates, Authorities and Permits.  The Company and each Subsidiary possess adequate certificates, authorities or permits issued by appropriate governmental agencies or bodies necessary to conduct the business now operated by it, and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit that, if determined adversely to the Company or such Subsidiary, could reasonably be expected to have a Material Adverse Effect, individually or in the aggregate.

 

4.14           Labor Matters.

                                (a)           Except as set forth on Schedule 4.14, the Company is not a party to or bound by any collective bargaining agreements or other agreements with labor organizations.  The Company has not violated in any material respect any laws, regulations, orders or contract terms, affecting the collective bargaining rights of employees, labor organizations or any laws, regulations or orders affecting employment discrimination, equal opportunity employment, or employees’ health, safety, welfare, wages and hours.

 

 

  

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                                (b)           (i) There are no labor disputes existing, or to the Company’s Knowledge, threatened, involving strikes, slow-downs, work stoppages, job actions, disputes, lockouts or any other disruptions of or by the Company’s employees, (ii) there are no unfair labor practices or petitions for election pending or, to the Company’s Knowledge, threatened before any governmental agency or labor commission relating to the Company’s employees, (iii) no demand for recognition or certification heretofore made by any labor organization or group of employees is pending with respect to the Company, and (iv) to the Company’s Knowledge, the Company enjoys good labor and employee relations with its employees and labor organizations.

                                (c)           The Company is, and at all times has been, in compliance in all material respects with all applicable laws respecting employment (including laws relating to classification of employees and independent contractors) and employment practices, terms and conditions of employment, wages and hours, and immigration and naturalization.

                                (d)           Except as disclosed in the SEC Filings or as described on Schedule 4.14, the Company is not a party to, or bound by, any employment or other contract or agreement that contains any severance, termination pay or change of control liability or obligation, including, without limitation, any “excess parachute payment,” as defined in Section 2806(b) of the Internal Revenue Code.

                                (e)           Except as specified in Schedule 4.14, to the Company’s Knowledge, none of the Company’s employees is a Person who is either a United States citizen or a permanent resident entitled to work in the United States.  To the Company’s Knowledge, the Company has no liability for the improper classification by the Company of such employees as independent contractors or leased employees prior to the Closing.

4.15           Intellectual Property. Except as specified in Schedule 4.15:

(a)           All Intellectual Property of the Company and its Subsidiaries is currently in compliance with all legal requirements (including timely filings, proofs and payments of fees) and is valid and enforceable.  No Intellectual Property of the Company or its Subsidiaries which is necessary for the conduct of Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted has been or is now involved in any cancellation, dispute or litigation, and, to the Company’s Knowledge, no such action is threatened.  No patent of the Company or its Subsidiaries has been or is now involved in any interference, reissue, re-examination or opposition proceeding.

(b)           All of the licenses and sublicenses and consent, royalty or other agreements concerning Intellectual Property which are necessary for the conduct of the Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted to which the Company or any Subsidiary is a party or by which any of their assets are bound (other than  generally commercially available, non-custom, off-the-shelf software application programs having a retail acquisition price of less than $10,000 per license) (collectively, “License Agreements”) are valid and binding obligations of the Company or its Subsidiaries that are parties thereto and, to the Company’s Knowledge, the other parties thereto, enforceable in accordance with their terms, except to the extent that enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally, and there exists no event or condition which will result in a material violation or breach of or constitute (with or without due notice or lapse of time or both) a default by the Company or any of its Subsidiaries under any such License Agreement.

 

 

  

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(c)           The Company and its Subsidiaries own or have the valid right to use all of the Intellectual Property that is necessary for the conduct of the Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted and for the ownership, maintenance and operation of the Company’s and its Subsidiaries’ properties and assets, free and clear of all liens, encumbrances, adverse claims or obligations to license all such owned Intellectual Property and Confidential Information, other than licenses entered into in the ordinary course of the Company’s and its Subsidiaries’ businesses.  The Company and its Subsidiaries have a valid and enforceable right to use all third party Intellectual Property and Confidential Information used or held for use in the respective businesses of the Company and its Subsidiaries.

(d)           To the Company’s Knowledge, the conduct of the Company’s and its Subsidiaries’ businesses as currently conducted does not infringe or otherwise impair or conflict with (collectively, “Infringe”) any Intellectual Property rights of any third party or any confidentiality obligation owed to a third party, and, to the Company’s Knowledge, the Intellectual Property and Confidential Information of the Company and its Subsidiaries which are necessary for the conduct of Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted are not being Infringed by any third party.  There is no litigation or order pending or outstanding or, to the Company’s Knowledge, threatened or imminent, that seeks to limit or challenge or that concerns the ownership, use, validity or enforceability of any Intellectual Property or Confidential Information of the Company and its Subsidiaries and the Company’s and its Subsidiaries’ use of any Intellectual Property or Confidential Information owned by a third party, and, to the Company’s Knowledge, there is no valid basis for the same.

(e)           The consummation of the transactions contemplated hereby and by the other Transaction Documents will not result in the alteration, loss, impairment of or restriction on the Company’s or any of its Subsidiaries’ ownership or right to use any of the Intellectual Property or Confidential Information which is necessary for the conduct of Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted.

(f)           The Company and its Subsidiaries have taken reasonable steps to protect the Company’s and its Subsidiaries’ rights in their Intellectual Property and Confidential Information.  Each employee, consultant and contractor who has had access to Confidential Information which is necessary for the conduct of Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted has executed an agreement to maintain the confidentiality of such Confidential Information and has executed appropriate agreements that are substantially consistent with the Company’s standard forms thereof, except where the failure to do so has not had and could not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate.  Except under confidentiality obligations, there has been no material disclosure of any of the Company’s or its Subsidiaries’ Confidential Information to any third party.

 

 

  

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4.16           Environmental Matters.  Except as specified in Schedule 4.16, to the Company’s Knowledge, neither the Company nor any Subsidiary (i) is in violation of any statute, rule, regulation, decision or order of any governmental agency or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively, “Environmental Laws”), (ii) owns or operates any real property contaminated with any substance that is subject to any Environmental Laws, (iii) is liable for any off-site disposal or contamination pursuant to any Environmental Laws, or (iv) is subject to any claim relating to any Environmental Laws, which violation, contamination, liability or claim has had or could reasonably be expected to have a Material Adverse Effect, individually or in the aggregate; and there is no pending or, to the Company’s Knowledge, threatened investigation that might lead to such a claim.

4.17           Litigation.  Except as described on Schedule 4.17, there are no pending actions, suits or proceedings against or affecting the Company, its Subsidiaries or any of its or their properties; and to the Company’s Knowledge, no such actions, suits or proceedings are threatened or contemplated.

4.18           Financial Statements.  The financial statements included in each SEC Filing present fairly, in all material respects, the consolidated financial position of the Company as of the dates shown and its consolidated results of operations and cash flows for the periods shown, and such financial statements have been prepared in conformity with United States generally accepted accounting principles applied on a consistent basis (“GAAP”) (except as may be disclosed therein or in the notes thereto, and, in the case of quarterly financial statements, as permitted by Form 10-QSB under the 1934 Act).  Except as set forth in the financial statements of the Company included in the SEC Filings filed prior to the date hereof or as described on Schedule 4.18, neither the Company nor any of its Subsidiaries has incurred any liabilities, contingent or otherwise, except those incurred in the ordinary course of business, consistent (as to amount and nature) with past practices since the date of such financial statements, none of which, individually or in the aggregate, have had or could reasonably be expected to have a Material Adverse Effect.

4.19           Insurance Coverage.  Except as set forth on Schedule 4.19, the Company and each Subsidiary maintains in full force and effect insurance coverage that is customary for comparably situated companies for the business being conducted and properties owned or leased by the Company and each Subsidiary, and the Company reasonably believes such insurance coverage to be adequate against all liabilities, claims and risks against which it is customary for comparably situated companies to insure.

4.20           Brokers and Finders.  No Person will have, as a result of the transactions contemplated by the Transaction Documents, any valid right, interest or claim against or upon the Company, any Subsidiary or an Investor for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Company, other than as described in Schedule 4.20.

 

 

  

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4.21           No Directed Selling Efforts or General Solicitation.  Neither the Company nor any Person acting on its behalf has conducted any general solicitation or general advertising (as those terms are used in Regulation D) in connection with the offer or sale of any of the Securities.

4.22           No Integrated Offering.  Neither the Company nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any Company security or solicited any offers to buy any security, under circumstances that would adversely affect reliance by the Company on Section 4(2) for the exemption from registration for the transactions contemplated hereby or would require registration of the Securities under the 1933 Act.

4.23           Private Placement.  The offer and sale of the Securities to the Investors as contemplated hereby is exempt from the registration requirements of the 1933 Act.

4.24           Questionable Payments.  Neither the Company nor any of its Subsidiaries nor, to the Company’s Knowledge, any of their respective current or former stockholders, directors, officers, employees, agents or other Persons acting on behalf of the Company or any Subsidiary, has on behalf of the Company or any Subsidiary or in connection with their respective businesses: (a) used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity; (b) made any direct or indirect unlawful payments to any governmental officials or employees from corporate funds; (c) established or maintained any unlawful or unrecorded fund of corporate monies or other assets; (d) made any false or fictitious entries on the books and records of the Company or any Subsidiary; (e) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment of any nature; or (f) taken any actions that would violate the U.S. Foreign Corrupt Practices Act of 1977, as amended.

4.25           Transactions with Affiliates.  Except as disclosed in the SEC Filings or as disclosed on Schedule 4.25, none of the officers or directors of the Company and, to the Company’s Knowledge, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other than as holders of stock options and/or warrants, and for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the Company’s Knowledge, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner.

 

 

  

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4.26           Internal Controls.  The Company is in material compliance with the provisions of the Sarbanes-Oxley Act of 2002 currently applicable to the Company.  The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company has established disclosure controls and procedures (as defined in 1934 Act Rules 13a-14 and 15d-14) for the Company and designed such disclosure controls and procedures to ensure that material information relating to the Company, including the Subsidiaries, is made known to the certifying officers by others within those entities, particularly during the period in which the Company’s most recently filed periodic report under the 1934 Act, as the case may be, is being prepared.  The Company’s certifying officers have evaluated the effectiveness of the Company's controls and procedures as of the end of the period covered by the most recently filed periodic report under the 1934 Act (such date, the “Evaluation Date”).  The Company presented in its most recently filed periodic report under the 1934 Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date.  Since the Evaluation Date, there have been no significant changes in the Company’s internal controls (as such term is defined in Item 308 of Regulation S-B) or, to the Company’s Knowledge, in other factors that could significantly affect the Company’s internal controls.  The Company maintains and will continue to maintain a standard system of accounting established and administered in accordance with GAAP and the applicable requirements of the 1934 Act.  In the event that the Company is notified, either by an Investor, the SEC, or some other party, that the Company is not in compliance with the provisions of the Sarbanes-Oxley act of 2002, the Company shall have ten (10) days (or such amount of time as is reasonably practicable) to cure such non-compliance).

4.27           Disclosures.  Neither the Company nor any Person acting on its behalf has provided the Investors or their agents or counsel with any information that constitutes or might constitute material, non-public information.  The written materials delivered to the Investors in connection with the transactions contemplated by the Transaction Documents do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein, in light of the circumstances under which they were made, not misleading.

4.28           Dilution; Hedging. The Company acknowledges and agrees that the issuance of the Securities will have a potential dilutive effect on the equity holdings of other holders of the Company’s equity or rights to receive equity of the Company. The Board of Directors of the Company has concluded, in its good faith business judgment, that the issuance of the Securities is in the best interests of the Company.  Subject to compliance with applicable securities laws, the Investors may enter into lawful hedging transactions with third parties, which may in turn engage in short sales of the Securities in the course of hedging the position they assume and the Investors may also enter into short positions or other derivative transactions relating to the Securities, or interests in the Securities, and deliver the Securities, or interests in the Securities, to close out their short or other positions or otherwise settle short sales or other transactions, or loan or pledge the Securities, or interests in the Securities, to third parties that in turn may dispose of these Securities.

 

 

  

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4.29           No Market Manipulation.  The Company has not taken, and will not take, directly or indirectly, any action designed to, or that might reasonably be expected to, cause or result in stabilization or manipulation of the price of the Common Stock of the Company to facilitate the sale or resale of the Securities or affect the price at which the Securities may be issued or resold.

5.             Representations and Warranties of the Investors.  Each of the Investors hereby severally, and not jointly, represents and warrants to the Company that:

5.1           Organization and Existence.  Such Investor is an individual or a validly existing corporation, limited partnership, or limited liability company and has all requisite individual, corporate, partnership or limited liability company power and authority to invest in the Securities pursuant to this Agreement.

5.2           Authorization.  The execution, delivery and performance by such Investor of the Transaction Documents to which such Investor is a party have been duly authorized and will each constitute the valid and legally binding obligation of such Investor, enforceable against such Investor in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating to or affecting creditors’ rights generally.

5.3           Purchase Entirely for Own Account.  The Securities to be received by such Investor hereunder will be acquired for such Investor’s own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the 1933 Act, and such Investor has no present intention of selling, granting any participation in, or otherwise distributing the same in violation of the 1933 Act without prejudice, however, to such Investor’s right at all times to sell or otherwise dispose of all or any part of such Securities in compliance with applicable federal and state securities laws.  Nothing contained herein shall be deemed a representation or warranty by such Investor to hold the Securities for any period of time.  Such Investor is not a broker-dealer registered with the SEC under the 1934 Act or an entity engaged in a business that would require it to be so registered.

5.4           Investment Experience.  Such Investor acknowledges that it can bear the economic risk and complete loss of its investment in the Securities and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment contemplated hereby.

5.5           Disclosure of Information.  Such Investor has had an opportunity to receive all information related to the Company requested by it and to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of the offering of the Securities.  Such Investor acknowledges receipt of copies of the SEC Filings.  Neither such inquiries nor any other due diligence investigation conducted by such Investor shall modify, amend or affect such Investor’s right to rely on the Company’s representations and warranties contained in this Agreement.

 

 

  

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5.6           Restricted Securities.  Such Investor understands that the Securities are characterized as “restricted securities” under the U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the 1933 Act only in certain limited circumstances.

5.7           Legends.  It is understood that, except as provided below, certificates evidencing the Securities may bear the following or any similar legend:

(a)           “The securities represented hereby may not be transferred unless (i) such securities have been registered for sale pursuant to the 1933 Act, as amended, (ii) such securities may be sold pursuant to Rule 144(k), or (iii) the Company has received an opinion of counsel reasonably satisfactory to it that such transfer may lawfully be made without registration under the 1933 Act, as amended, or qualification under applicable state securities laws.”

(b)           If required by the authorities of any state in connection with the issuance of sale of the Securities, the legend required by such state authority.

5.8           Accredited Investor.  Such Investor is an “accredited investor” within the meaning of Rule 501(a) of Regulation D promulgated under the 1933 Act for the reasons checked on Schedule 1 hereto.

5.9           No General Solicitation.  Such Investor did not learn of the investment in the Securities as a result of any public advertising or general solicitation.

5.10           Brokers and Finders.  No Person will have, as a result of the transactions contemplated by the Transaction Documents, any valid right, interest or claim against or upon the Company, any Subsidiary or an Investor for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of such Investor.

5.11           Reliance on Exemptions.  Such Investor understands that the Securities are being offered and sold to it in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and such Investor’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of such Investor set forth herein in order to determine the availability of such exemptions and the eligibility of such Investor to acquire the Securities.

5.12           Company Stock Listing.  The Investors understand and acknowledge that the Company is currently publicly reporting but not listed on any trading market, exchange or quotation system.  The Investors agree that the Company, in its sole discretion, may apply to be listed on the OTCBB or a national exchange such as the AMEX, NYSE or Nasdaq.

 

 

  

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6.           Conditions to Closing.

6.1           Conditions to the Investors’ Obligations. The obligation of each Investor to purchase the Offering Shares at the Closing is subject to the fulfillment to such Investor’s satisfaction, on or prior to the Closing Date, of the following conditions, any of which may be waived by such Investor (as to itself only):

(a)           The representations and warranties made by the Company in Section 4 hereof qualified as to materiality shall be true and correct at all times prior to and on the Closing Date, except to the extent any such representation or warranty expressly speaks as of a specific date, in which case such representation or warranty shall be true and correct as of such date, and, the representations and warranties made by the Company in Section 4 hereof not qualified as to materiality shall be true and correct in all material respects at all times prior to and on the Closing Date, except to the extent any such representation or warranty expressly speaks as of a specific date, in which case such representation or warranty shall be true and correct in all material respects as of such specific date.

(b)           The Company shall have performed in all material respects all obligations and covenants herein required to be performed by it on or prior to the Closing Date.

(c)           The Company shall have obtained any and all consents, permits, approvals, registrations and waivers necessary or appropriate for consummation of the purchase and sale of the Offering Shares and the consummation of the other transactions contemplated by the Transaction Documents to be consummated on or prior to the Closing Date, all of which shall be in full force and effect.

(d)           The Company shall have executed and delivered certificates representing the appropriate number of Offering Shares to the Escrow Agent.

(e)           The Company and the Escrow Agent shall have executed and delivered the Escrow Agreement.

(f)           No judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have been instituted by any governmental authority, enjoining or preventing the consummation of the transactions contemplated hereby or in the other Transaction Documents.

(g)           No stop order or suspension of trading shall have been imposed by the SEC or any other governmental or regulatory body with respect to public trading in the Common Stock.

(h)           The Company shall have received not greater than $3,782,393, in the aggregate.

6.2           Conditions to Obligations of the Company. The Company’s obligation to sell and issue the Offering Shares at the Closing is subject to the fulfillment to the satisfaction of the Company on or prior to the Closing Date of the following conditions, any of which may be waived by the Company:

 

  

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(a)           The representations and warranties made by the Investors in Section 5 hereof, (the “Investment Representations”), shall be true and correct in all material respects when made, and shall be true and correct in all material respects on the Closing Date with the same force and effect as if they had been made on and as of said date.  The Investment Representations shall be true and correct in all respects when made, and shall be true and correct in all respects on the Closing Date with the same force and effect as if they had been made on and as of said date.  The Investors shall have performed in all material respects all obligations and covenants herein required to be performed by them on or prior to the Closing Date.

(b)           The Investors shall have delivered to the Escrow Agent the Share Purchase Price for the number of Shares to be purchased.

(c)           The Investor Agent and the Escrow Agent shall have executed and delivered the Escrow Agreement.

(d)           No judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have been instituted by any governmental authority, enjoining or preventing the consummation of the transactions contemplated hereby or in the other Transaction Documents.

(e)           The Company shall have received not greater than $3,782,393, in the aggregate.

6.3           Termination of Obligations to Effect Closing; Effects.

(a)           The outstanding obligations of the Company, on the one hand, and the Investors, on the other hand, to effect the Closing shall terminate as follows:

(i)           Upon the mutual written consent of the Company and the Investors;

(ii)           By the Company if any of the conditions set forth in Section 6.2 shall have become incapable of fulfillment, and shall not have been waived by the Company;

(iii)           By an Investor (with respect to itself only), if such Investor reasonably determines that any condition set forth in Section 6.1 has become incapable of fulfillment, and such Investor does not waive such condition; or

(iv)           By either the Company, or any Investor (with respect to itself only), only upon written notice of its intent to terminate the transaction, if the Closing has not occurred on or prior to February 15, 2011; provided, however, that, except in the case of clause (i) above, the party seeking to terminate its obligation to effect the Closing shall not then be in breach of any of its representations, warranties, covenants or agreements contained in this Agreement or the other Transaction Documents if such breach has resulted in the circumstances giving rise to such party’s seeking to terminate its obligation to effect the Closing.

 

 

  

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(b)           In the event of termination by any Investor of its obligations to effect the Closing pursuant to this Section 6.3, written notice thereof shall forthwith be given to the other Investors and the other Investors shall have the right to terminate their obligations to effect such Closing upon written notice to the Company and the other Investors.  Nothing in this Section 6.3 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement or the other Transaction Documents.

7.            Covenants and Agreements of the Company.

7.1           Reports.  If the information is not already publicly disclosed in the Company’s public filings available on the SEC’s website, the Company will furnish to the Investors and/or their assignees such information relating to the Company and its Subsidiaries as from time to time may reasonably be requested by the Investors and/or their assignees; provided, however, that the Company shall not disclose material nonpublic information to the Investors, or to advisors to or representatives of the Investors, unless prior to disclosure of such information the Company identifies such information as being material nonpublic information and provides the Investors, such advisors and representatives with the opportunity to accept or refuse to accept such material nonpublic information for review and any Investor wishing to obtain such information enters into an appropriate confidentiality agreement with the Company with respect thereto.

7.2           No Conflicting Agreements.  The Company will not take any action, enter into any agreement or make any commitment that would conflict or interfere in any material respect with the Company’s obligations to the Investors under the Transaction Documents.

7.3           Insurance.  The Company shall not materially reduce the insurance coverages described in Section 4.19.

7.4           Compliance with Laws.  The Company will comply in all material respects with all applicable laws, rules, regulations, orders and decrees of all governmental authorities.

7.5           Removal of Legends.  Upon the earlier of (i) registration for resale pursuant to the Registration Rights Agreement or (ii) Rule 144(k) becoming available the Company shall (A) deliver to the transfer agent for the Common Stock (the “Transfer Agent”) irrevocable instructions that the Transfer Agent shall reissue a certificate representing shares of Common Stock without legends upon receipt by such Transfer Agent of the legended certificates for such shares, together with either (1) a customary representation by the Investor that Rule 144 applies to the shares of Common Stock represented thereby, and (B) cause its counsel to deliver to the Transfer Agent one or more blanket opinions to the effect that the removal of such legends in such circumstances may be effected under the 1933 Act.  From and after the earlier of such dates, upon an Investor’s written request, the Company shall promptly cause certificates evidencing the Investor’s Securities to be replaced with certificates which do not bear such restrictive legends.

 

 

  

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8.             Survival and Indemnification.

8.1           Survival.  The representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing of the transactions contemplated by this Agreement for a period of one (1) year.

8.2           Indemnification.  The Company agrees to indemnify and hold harmless each Investor and its Affiliates and their respective directors, officers, employees and agents from and against any and all losses, claims, damages, liabilities and expenses (including without limitation reasonable attorney fees and disbursements and other expenses incurred in connection with investigating, preparing or defending any action, claim or proceeding, pending or threatened and the costs of enforcement thereof) (collectively, “Losses”) to which such Person may become subject as a result of any breach of representation, warranty, covenant or agreement made by or to be performed on the part of the Company under the Transaction Documents, and will reimburse any such Person for all such amounts as they are incurred by such Person.

8.3           Conduct of Indemnification Proceedings.  Promptly after receipt by any Person (the “Indemnified Person”) of notice of any demand, claim or circumstances which would or might give rise to a claim or the commencement of any action, proceeding or investigation in respect of which indemnity may be sought pursuant to Section 8.2, such Indemnified Person shall promptly notify the Company in writing and the Company shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Person, and shall assume the payment of all fees and expenses; provided, however, that the failure of any Indemnified Person so to notify the Company shall not relieve the Company of its obligations hereunder except to the extent that the Company is materially prejudiced by such failure to notify.  In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless: (i) the Company and the Indemnified Person shall have mutually agreed to the retention of such counsel; or (ii) in the reasonable judgment of counsel to such Indemnified Person representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them.  The Company shall not be liable for any settlement of any proceeding effected without its written consent, which consent shall not be unreasonably withheld, but if settled with such consent, or if there be a final judgment for the plaintiff, the Company shall indemnify and hold harmless such Indemnified Person from and against any loss or liability (to the extent stated above) by reason of such settlement or judgment.  Without the prior written consent of the Indemnified Person, which consent shall not be unreasonably withheld, the Company shall not effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Person from all liability arising out of such proceeding.

 

 

  

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9.            Miscellaneous.

9.1           Successors and Assigns.  This Agreement may not be assigned by a party hereto without the prior written consent of the Company or the Investors, as applicable, provided, however, that an Investor may assign its rights and delegate its duties hereunder in whole or in part to an Affiliate or to a third party acquiring some or all of its Securities in a private transaction without the prior written consent of the Company or the other Investors, after notice duly given by such Investor to the Company provided, that no such assignment or obligation shall affect the obligations of such Investor hereunder.  The provisions of this Agreement shall inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

9.2           Counterparts; Faxes.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  This Agreement may also be executed via facsimile, which shall be deemed an original.

9.3           Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

9.4           Notices.  Unless otherwise provided, any notice required or permitted under this Agreement shall be given in writing and shall be deemed effectively given as hereinafter described (i) if given by personal delivery, then such notice shall be deemed given upon such delivery, (ii) if given by telex or telecopier, then such notice shall be deemed given upon receipt of confirmation of complete transmittal, (iii) if given by mail, then such notice shall be deemed given upon the earlier of (A) receipt of such notice by the recipient or (B) three days after such notice is deposited in first class mail, postage prepaid, and (iv) if given by an internationally recognized overnight air courier, then such notice shall be deemed given one Business Day after delivery to such carrier.  All notices shall be addressed to the party to be notified at the address as follows, or at such other address as such party may designate by ten days’ advance written notice to the other party:

If to the Company:

NewEra Technology Development Co., Ltd.

c/o Hunan Xiangmei Food Co., Ltd.

Attn:   Mr. Taiping Zhou

200 Taozhu Road, Wuxi Town

Qiyang County, Yongzhou City

Hunan Province, China

Tel: [insert]

 

  

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With a copy to:

Anslow & Jaclin, LLP

195 Route 9 South, Suite 204

Manalapan, NJ 07726

Attn: Richard I. Anslow, Esq.

Fax: (732) 577-1188

If to the Investors:

to the addresses set forth on the signature pages hereto.

9.5           Expenses.  The parties hereto shall pay their own costs and expenses in connection herewith.  In the event that legal proceedings are commenced by any party to this Agreement against another party to this Agreement in connection with this Agreement or the other Transaction Documents, the party or parties which do not prevail in such proceedings shall severally, but not jointly, pay their pro rata share of the reasonable attorneys’ fees and other reasonable out-of-pocket costs and expenses incurred by the prevailing party in such proceedings.

9.6           Amendments and Waivers.  Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Investors.  Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of any Securities purchased under this Agreement at the time outstanding, each future holder of all such Securities, and the Company.  Notwithstanding the foregoing, no consideration shall be offered or paid by the Company to any Investor to amend or consent to a waiver or modification of any provision of any of this Agreement unless the same consideration also is offered to all of the holders of the Offering Shares.

9.7           Publicity.  No public release or announcement concerning the transactions contemplated hereby shall be issued by the Company or the Investors without the prior consent of the Company (in the case of a release or announcement by the Investors) or the Investors (in the case of a release or announcement by the Company) (which consents shall not be unreasonably withheld), except as such release or announcement may be required by law or the applicable rules or regulations of any securities exchange or securities market, in which case the Company or the Investors, as the case may be, shall allow the Investors or the Company, as applicable, to the extent reasonably practicable in the circumstances, reasonable time to comment on such release or announcement in advance of such issuance.

9.8           Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted as if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  To the extent permitted by applicable law, the parties hereby waive any provision of law which renders any provision hereof prohibited or unenforceable in any respect.

 

 

  

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9.9           Entire Agreement.  This Agreement, including the Exhibits and the Disclosure Schedules, and the other Transaction Documents constitute the entire agreement among the parties hereof with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, both oral and written, between the parties with respect to the subject matter hereof and thereof.

9.10           Further Assurances.  The parties shall execute and deliver all such further instruments and documents and take all such other actions as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained.

9.11           Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.  This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of Nevada without regard to the choice of law principles thereof.  Each of the parties hereto irrevocably submits to the exclusive jurisdiction of the courts of the State of Nevada for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby.  Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Agreement.  Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court.  Each party hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

9.12           Independent Nature of Investors' Obligations and Rights.  The obligations of each Investor under any Transaction Document are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor under any Transaction Document.  The decision of each Investor to purchase Securities pursuant to the Transaction Documents has been made by such Investor independently of any other Investor.  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 the Transaction Documents.  Each Investor acknowledges that no other Investor has acted as agent for such Investor in connection with making its investment hereunder and that no Investor will be acting as agent of such Investor in connection with monitoring its investment in the Securities or enforcing its rights under the Transaction Documents.  Each Investor shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, 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 Transaction Documents for the purpose of closing a transaction with multiple Investors and not because it was required or requested to do so by any Investor.

[The remainder of this page is left blank intentionally. Signature pages follow]

 

 

  

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IN WITNESS WHEREOF, the parties have executed this Agreement or caused their duly authorized officers to execute this Agreement as of the date first above written.

NEWERA TECHNOLOGY DEVELOPMENT CO., LTD.

By:                                                                          

Name:

Title:

 

 

 

 

 

 

  

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SECURITIES PURCHASE AGREEMENT

 

 

COUNTERPART SIGNATURE PAGE

 

By signing below, the undersigned agrees to the terms of the Securities Purchase Agreement and to purchase the number of Offering Shares set forth below.

 

	  	
INVESTOR:

	
Number of Shares being purchased:

 

                                                                                    

	
                                                                                   

 

By:                                                                             

Name:

Title:

	  
	  	
Address:                                                            

                                                          

Facsimile:                                                                   

with a copy to:

	
Aggregate Purchase Price:

 

___________________________________

 

	  	
Please complete the following:

	  

 

	  	
1.

	
The exact name that your Offering Shares are to be registered in (this is the name that will appear on your Share certificates). You may use a nominee name if appropriate:

	                                                                                          	  
	 	 	 	 	 
	  	
2.

	
The relationship between the Investors of the Offering Shares and the Registered Holder listed in response to item 1 above:

	                                                                                          	  
	 	 	 	 	 
	  	
3.

	
The mailing address and facsimile number of the Registered Holder listed in response to item 1 above (if different from above):

	
                                                                                           

                                                                                           

Facsimile:                                                                    

	  
	 	 	 	 	 
	  	
4.

	
The Social Security Number or Tax Identification Number of the Registered Holder listed in the response to item 1 above:

	                                                                                           	  

 

 

  

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Exhibit A

(Form of Escrow Agreement)

 

 

 

 

 

 

 

 

 

 -25-option.htm

 

Exhibit 10.2

CALL OPTION AGREEMENT

           选择权协议

 

 

BETWEEN

由

LUCY XIA

 

AND

与

Individual Listed in Schedule A

附件A所列个人

Date: January 15, 2011

日期:2011年1月15日

 

  

1

  

 

 

THIS CALL OPTION AGREEMENT (this "Agreement") is made on January 15, 2011 by and between LUCY XIA, with U.S. Passport number of 075323787 (the "Grantor"), and the individual listed in Schedule A (the "Grantee").

 

 

本选择权协议(“本协议”)由LUCY XIA,一位持有编号075323787的美国护照持有人(“授予人”),和附件A所列个人(“被授予人”)于2011年1月15日签订。

 

The Grantor and the Grantee are collectively referred to as the "Parties" and each of them as a "Party".

 

授予人和被授予人合称“各方”,单独称为“一方”

 

Whereas, the Grantor owns 100% issued and outstanding shares of Excel Deal International Limited, a company incorporated under the laws of British Virgin Islands, (“BVI Company”)

 

鉴于,授予人拥有英属维京群岛公司,Excel Deal International Limited (“BVI 公司”) 的100%发行或已发行股份。

 

Whereas, the Grantor has agreed to grant to the Grantee, and the Grantee has agreed to accept from the Grantor, a call option (the “Option”) to purchase certain number of ordinary shares of BVI Company (the "Option Shares") as set forth in Schedule A to this Agreement.

 

鉴于,授予人同意授予被授予人,且被授予人同意从授予人处接受BVI 公司于本协议附件A列明的一定数量普通股(“选择权股份”)的选择权(“选择权”)。

 

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

据此,基于前述事实以及各方在本协议项下所做的相互承诺与保证,以及各方在此确认收讫并确认充分的其他良好有价对价,协议各方现达成如下协议,以资信守:

 

	
1  

	
DEFINITIONS

定义

 

 

	 	1.1 	Defined Terms : In this Agreement (including the Recitals and the Schedules), unless the context otherwise requires, the following words and expressions shall have the following meanings:
	 	 	定义的术语:本协议(包括鉴于条款及附件)中,除上下文另有所指外,下列词语表达的含义如下:
	 	 	 
	 	 	"Business Day" means a day (other than Saturdays, Sundays and public holidays) on which banks are generally open for business in China;
	 	 	“工作日”指中国境内银行通常营业日(除周六、周日及公众假日外);
	 	 	 
	 	 	"China" or "PRC" means the People's Republic of China;
	 	 	“中国”指中华人民共和国;

 

  

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	 	 	"Completion Date" means the date falling seven (7) Business Days after the service of the Exercise Notice by the Grantee on the Grantor;
	 	 	“交割日”指被授予人向授予人发出行权通知后的七(7)个工作日届满之日;
	 	 	 
	 	 	"Completion" means the completion of the sale to and purchase by the Grantee of the Option Shares under this Agreement;
	 	 	“交割”指本协议项下选择权股份的买卖完成;
	 	 	 
	 	 	"Distributions" means any cash proceeds arising from or in respect of, or in exchange for, or accruing to or in consequence of the Option Shares from the Effective Date to the Completion Date, including without limitation the Dividends.
	 	 	“分红”指自生效日始至交割日止,源自、有关于、基于交换、孳息于、或产生于选择权股份的任何现金收益,包括但不限于红利;
	 	 	 
	 	 	"Dividends" means the dividends declared by BVI Company and accrued in respect of the Option Shares (whether or not such dividends shall have been paid and received by the Grantee);
	 	 	“红利”指由选择权股份而产生的经BVI 公司公告并累计的股息(无论该股息是否已被支付并由被授予人获得)
	 	 	 
	 	 	"Effective Date" means the execution date of this Agreement;
	 	 	“生效日”指本协议签署之日;
	 	 	 
	 	 	"Exercise" means the exercise by the Grantee or his Nominee(s) of the Option pursuant to the terms of this Agreement;
	 	 	“行权”指由选择权之被授予人或其提名人依本协议条款行权;
	 	 	 
	 	 	"Exercise Notice" means the notice substantially in the form set out in Part I of Schedule B;
	 	 	“行权通知”指符合附件B第I部分中指明格式之通知;
	 	 	 
	 	 	"Exercise Price" means the exercise price to be paid by the Grantee (or his Nominee(s), as the case may be) to the Grantor in respect of the Option Shares issued to such Grantee as set forth opposite his name in Schedule A;
	 	 	“行权价”指就发行给附件A所列该被授予人(或其提名人,依情况而定)的相应选择权股份由被授予人向授予人所支付之行权价格。
	 	 	 
	 	 	"Nominee" means such person nominated by a Grantee in the Transfer Notice to be the transferee of the Option or Option Shares;
	 	 	“提名人”指由被授予人在转让通知中提名的选择权或选择权股份之受让人;
	 	 	 
	 	 	"Option Effective Date" has the meaning ascribed to it in Clause 2.3;
	 	 	“选择权生效日”之定义见第2.3条款;
	 	 	 
	 	 	"RMB" means the lawful currency of China;
	 	 	“人民币”指中国合法流通货币;

 

  

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	 	 	"Transfer Notice" means the notice substantially in the form set out in Part II of Schedule B;
	 	 	“转让通知”指符合附件B中指明格式之通知;
	 	 	 
	 	 	"US$" or "United States Dollar" means the lawful currency of the United States of America.
	 	 	 
	 	 	“美元”或“美国元”指美利坚合众国之合法流通货币。
	 	 	 
	 	 	 
	 	1.2	Interpretation: Except to the extent that the context requires otherwise:
	 	 	解释:除上下文另有要求外:
	 	 	 
	 	1.2.1	words denoting the singular shall include the plural and vice versa; words denoting any gender shall include all genders; words denoting persons shall include firms and corporations and vice versa;
	 	 	单数词应包括复数含义,反之亦然;带有一种性别含义的词语包括每一性别,指一个人的词语包括公司和法人,反之亦然;
	 	 	 
	 	1.2.2	any reference to a statutory provision shall include such provision and any regulations made in pursuance thereof as from time to time modified or re-enacted whether before or after the date of this Agreement and (so far as liability thereunder may exist or can arise) shall include also any past statutory provisions or regulations (as from time to time modified or re-enacted) which such provisions or regulations have directly or indirectly replaced;
	 	 	所指法律规定应包括其规定和依此制定的规章,以及任何修订、重新制定的内容,不论该修订或重新制定发生于本协议日之前或之后。并且(只要该规定项下之责任可能存在或可以出现)也应包括任何过去的被(修订、重新制定)直接或间接取代的法律规定或规章;
	 	 	 
	 	1.2.3	the words "written" and "in writing" include any means of visible reproduction;
	 	 	词语“书面的”或“以书面形式”,包括可见性重现之任何方式;
	 	 	 
	 	1.2.4	any reference to "Clauses", "Recitals" and "Schedules" are to be construed as references to clauses and recitals of, and schedules to, this Agreement; and
	 	 	引用“条款”、“鉴于条款”及“附件”,应解释为指向本协议之条款、鉴于条款及附件;及
	 	 	 
	 	1.2.5	any reference to a time of day is a reference to China time unless provided otherwise.
	 	 	除上下文另有所指外,时间指中国时间。
	 	 	 
	 	1.3	Headings: The headings in this Agreement are inserted for convenience only and shall be ignored in construing this Agreement.
	 	 	标题:本协议标题之加入仅为方便之用且在解释本协议时应予忽略。

 

	
2  

	
OPTION

 

	 	2.1	Option: The Grantor hereby irrevocably and unconditionally grants to the Grantee an Option for such Grantee to acquire from the Grantor, at the Exercise Price, at any time during the Exercise Period (defined below), to the extent that the Option has vested, any or all of the Option Shares set forth opposite his/her name in Schedule A hereto, free from all claims, liens, charges, pledges, mortgages, trust, equities and other encumbrances, and with all rights attaching thereto on the Completion Date.
	 	 	选择权  授予人在此不可撤销地、无条件地授予被授予人在行权期间(定义见下文)内的任何时间,在授予的选择权范围内按照行权价向授予人购买与附件A所列姓名相应的选择权股份的选择权,前述选择权股份在交割日不应存在任何索赔、留置、抵押、质押、担保、信托或其他权利负担,且应附有所有相关权利。

 

  

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	 	2.2	Vesting Schedule: Subject to the terms and conditions hereto, the Option may be exercised, in whole or in part, in accordance with the following schedule:
	 	 	授予方案:基于本协议条款和条件,选择权根据下列方案全部或部分行权:
	 	 	 
	 	2.2	34% of the Option Shares subject to the Option shall vest and become exercisable on January 30, 2012; 33% of the Option Shares subject to the Option shall vest and become exercisable on January 30, 2013 and 33% of the Option Shares subject to the Option shall vest and become exercisable on January 30, 2014.
	 	 	选择权中34%的选择权股份应于2012年1月30日授予并可行权;选择权中33%的选择权股份应于2013年1月30日授予并可行权;选择权中33%的选择权股份应于2014年1月30日授予并可行权。
	 	 	 
	 	2.3	Exercise Period: The Option shall vest and become effective and exercisable at the times commencing on the dates set forth in Section 2.2 (the “Option Effective Date”) and shall expire five years from the date of the Option.  The Option may be exercised by the Grantee (or his Nominee on behalf of the Grantee), to the extent that the Option shall have vested, and only to that extent, at any time prior to five years from the date of this Option (“Exercise Period”).
	 	2.3	行权期间  选择权应自第2.2条所述日期起授予、生效和可行权(“选择权生效日”),并于选择权之日起5年到期。被授予人(或代表授予人的提名人)在本选择权日起5年内(“行权期间”)并在选择权已被授予的范围内也仅在该范围内,可以进行行权。
	 	 	 
	 	2.4	Nominees: The Grantee may, at any time during the Exercise Period, at his sole discretion, nominate one or more person(s) (each a “Nominee”) to be the transferee(s) of whole or part of the shares subject to his Option, who shall hold and/or exercise the transferred Option on behalf of the Grantee.
	 	2.4	提名人 被授予人在行权期间内可以随时自行提名一人或多人(均称为“提名人”),作为他所享有受限于选择权的部分或全部股份受让人,前述提名人应代表被授予人持有和/或行使该项经转让的选择权。
	 	 	 
	 	2.5  	Exercise Notice: The Option may be exercised by the Grantee or his Nominee(s), in whole or in part, at any time during the Exercise Period, by serving an Exercise Notice on the Grantor.
	 	2.5	行权通知 在行权期间内,被授予人或其提名人随时可以通过向授予人递送行权通知的方式行使全部或部分选择权。

 

  

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	 	2.6	Exercise: The Grantor agrees that he shall, upon receipt of the Exercise Notice, transfer to the Grantee (or his/her Nominee(s), as the case may be) any and all of the Option Shares specified in the Exercise Notice, free from all claims, liens, charges, pledges, mortgages, trust, equities and other encumbrances, and with all rights now or hereafter attaching thereto.  The Option shall be exercisable only in compliance with the laws and regulations of the PRC and the British Virgin Islands, and such Grantee (or his Nominee(s), as the case may be) shall complete any and all approval or registration procedures regarding the exercise of his Option at PRC competent authorities in accordance with applicable PRC laws and regulations.
	 	2.6	行权 授予人同意,其将在收到行权通知的前提下,向被授予人(或其提名人,依情况而定)转让行权通知所述数额的选择权股份。前述选择权股份不应存在任何索赔、留置、抵押、质押、担保、信托或其他权利负担,且应附有所有相关权利。该等选择权仅在遵守中国和英属维京群岛法律、法规时可行权。且为遵守所适用的中国法律法规,该被授予人(或其提名人,依情况而定)应在中国主管当局就他/她的选择权的行权完成全部批准或登记程序。
	 	 	 
	 	2.7	Transfer Notice: In case that a Grantee transfers any or all of his/her Option to one or more Nominee(s) in accordance with Clause 2.4 above, the Grantee shall serve a Transfer Notice on the Grantor.
	 	2.7	转让通知 如果被授予人根据上述2.4条的规定向一位或多位提名人转让其全部或部分选择权,被授予人应向授予人递送转让通知。
	 	 	 
	 	2.8	Transfer to Nominees: The Grantor agrees that he shall, upon receipt of the Transfer Notice, take all actions necessary to allow the Nominee(s) to be entitled to any or all of Option Shares specified in the Transfer Notice.
	 	2.8	转让给提名人 授予人同意,在收到转让通知后,其将采取必要措施保证提名人按照转让通知载明的数额享有相应的选择权股份。
	 	 	 
	 	 	Upon exercise by any Nominee(s) of the transferred Option on behalf of the Grantee, the Grantee shall serve the Exercise Notice on the Grantor in his own name for the exercising Nominee(s).  Upon receipt of such Exercise Option, the Grantor shall issue to such Nominee(s) any and all of the relevant Option Shares in the same manner as specified in Clause 2.6.
	 	 	在提名人代表被授予人行使转让选择权时,被授予人应以自己的名义为行权的提名人向授予人递送行权通知。在收到转让通知后,授予人应依与本协议2.6条款规定相同的方式,向该等提名人发行部分或全部相关选择权股份。
	 	 	 
	 	2.9	Payment of Exercise Price: Upon Exercise of the Option in whole or in part, the Grantee (or his Nominee(s), as the case may be) shall pay the Exercise Price to the Grantor.
	 	2.9	行权价款的支付 在上述选择权全部或部分行使之时,行权的被授予人(或其提名人,依情况而定)应向授予人支付行权价款。
	 	 	 
	 	2.10	The Grantor’s Obligation upon Exercise: The Grantor agrees that upon the Exercise of any Option by the Grantee (or his Nominee(s)), he shall cause and procure the number of Option Shares provided in the Exercise Notice to be transferred to the Grantee (or his Nominee(s)) within seven (7) Business Days after the date of the Exercise Notice.
	 	2.10	行权时授予人的义务 授予人同意,在被授予人(或其提名人)行使选择权时,应在行权通知之日起七个工作日内,促使前述通知载明的选择权股份数额转让给被授予人(或其提名人)。

 

  

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3  

	
INFORMATION, DISTRIBUTIONS AND ADJUSTMENTS

3.     信息、分红和调整

 

	 	3.1	Information: The Grantee shall be entitled to request from the Grantor at any time before the Completion, a copy of any information received from the Grantor which may be in the possession of the Grantor and, upon such request, the Grantor shall provide such information to the Grantee.
	 	3.1	信息 在上述交割前的任何时间,被授予人有权要求授予人向其提供授予人获得的在授予人处的任何信息副本;授予人应根据此等要求向被授予人提供相应信息。
	 	 	 
	 	3.2	Distributions: The Grantor agrees that the Grantee shall be entitled to all the Distributions in respect of his Option Shares.  In the event that any such Distributions have been received by the Grantor for any reason, the Grantor shall cause the existing shareholder at the request of the Grantee to pay an amount equivalent to the Distributions received to the Grantee.
	 	3.2	分红 授予人同意,被授予人有权获得对于其选择权股份的分红。如果授予人基于任何事由获得上述分红,授予人应促使现有股东应被授予人的要求,按照与获得的分红相同的金额,向上述被授予人支付等值款项。
	 	 	 
	 	3.3	Adjustments: If, prior to the Completion, BVI Company shall effect any adjustment in its share capital (such as share split, share dividend, share combination or other similar acts), then the number of Option Shares and the Exercise Price shall be adjusted accordingly to take into account such adjustment.
	 	3.3	调整 如果在上述交割前,BVI 公司股本进行有效调整(例如:股份分拆、股份分红、股份合并或是其他类似调整),被授予人在行权时受让的选择权股份数额和行权价应在考虑到此等调整的情况下进行相应调整。

 

	
4  

	
COMPLETION

4        交割

 

	 	4.1	Time and Venue: Completion of the sale and purchase of the Option Shares pursuant to the Exercise shall take place at such place decided by the Grantee on the Completion Date and reasonably acceptable to the Grantor.  The parties agree that Hong Kong is a reasonable place for the completion of the sale.
	 	4.1	时间和地点 基于上述行权而进行的选择权股份买卖应于交割日在被授予人确定的并且授予人可合理接受的地点进行交割。各方同意香港是一个出售交割的合理的地点。
	 	 	 
	 	4.2	Business at Completion: At Completion of each Exercise, all (but not part only) of the following shall be transacted:
	 	4.2	交割事项:在每次行权交割之时,以下所有(而非部分)事项均应办理:
	 	 	 
	 	4.2.1	the exercising Grantee shall pay the Exercise Price to the Grantor by wire transfer or such other method as shall be reasonably acceptable to Grantor;
	 	4.2.1	行权的被授予人应以电汇或授予人可合理接受的其他方式向授予人支付行权价;

 

  

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	 	4.2.2 	the Grantor shall, and to the extent that any action on the part of other shareholders or the directors is required, procure the then existing shareholders and directors of BVI Company to, within seven (7) Business Days after the date of Exercise Notice, deliver to the exercising Grantee (or his Nominee(s), same below) the following documents and take all corporate actions necessary to give effect to such delivery:
	 	4.2.2	授予人及某种程度上被要求采取行动的其他股东或董事,应当并促使BVI 公司当时的股东和董事,在行权通知之日起七个工作日内,向行权的被授予人(或其提名人,以下相同)递送下列文件并采取使之生效的所有必备法人行动:
	 	 	 
	 	4.2.2.1 	a share certificate or share certificates in respect of the number of the Option Shares exercised by the Grantee;
	 	 	载明行权的被授予人行权的选择权股份数额的股权凭证;
	 	 	 
	 	4.2.2.2 	a certified true copy of the register of members of BVI Company updated to show the entry of the Grantee as the holder of the Option Shares so exercised; and
	 	 	更新过的BVI 公司的股东名册的经认证的真实副本,该副本应载明此行权的被授予人作为经行权的选择权股份的持有人进入股东名册;及
	 	 	 
	 	4.2.2.3 	any other documents as the Grantee may reasonably believe necessary to give effect to the transfer of the exercised Option Shares.
	 	 	被授予人合理地相信使行权选择权股份转让生效所必需的其他文件

 

	
5  

	
CONFIDENTIALITY

5.  保密

 

The transaction contemplated hereunder and any information exchanged between the Parties pursuant to this Agreement will be held in complete and strict confidence by the concerned Parties and their respective advisors, and will not be disclosed to any person except: (i) to the Parties’ respective officers, directors, employees, agents, representatives, advisors, counsel and consultants that reasonably require such information and who agree to comply with the obligation of non-disclosure pursuant to this Agreement; (ii) with the express prior written consent of the other Party; or (iii) as may be required to comply with any applicable law, order, regulation or ruling, or an order, request or direction of a government agency; provided, however, that the foregoing shall not apply to information that: (1) was known to the receiving Party prior to its first receipt from the other Party; (2) becomes a matter of public knowledge without the fault of the receiving Party; or (3) is lawfully received by the Party from a third person with no restrictions on its further dissemination.

协议各方及其顾问应对于本协议相关交易及有关信息严格保密,不应向任何人员披露;除非:(i) 在协议各方的管理人员、董事、员工、代理、代表、顾问均同意遵守本条保密义务和无披露约定的前提下,根据前述人员的合理要求向该人员进行披露;(ii) 经本协议另一方书面同意的披露;(iii) 根据相关法律、法令、法规、判令的要求,或是根据有关部门的指示所进行的披露;但是,上述规定不应适用于以下信息:(1) 接受方在从协议另一方取得相关信息之前已经取得的信息;(2) 非因接受方违约而被公众知晓的信息;(3)协议一方从不受传播限制的第三方处合法取得的信息。

 

 

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6  

	
GRANTOR’S UNDERTAKINGS

6.     授予人的保证

 

	
 

	6.1.	Grantor agrees that in its capacity as holder of Option Shares, it shall not and shall not cause the BVI Company to, take any action or agree on behalf of the BVI Company to take any action to do the following, without the express written direction of the Grantee:
	 	 	授予人同意作为选择权股份持有人,在未经被授予人明示书面指示的前提下,其不得或不得促使BVI公司以BVI公司名义进行任何行动下列行动或同意进行下列活动:
	 	 	 
	 	6.1.1	issue new shares, equity interests, registered capital, ownership interests, or equity-linked securities, or any options or warrants that are directly convertible into, or exercisable or exchangeable for, shares, equity, registered capital, ownership interest, or equity-linked securities of the BVI Company, other similar equivalent arrangements;
	 	6.1.1	发售或创设任何新股份、股权、注册资本、所有权益或类似股权的证券,以及可以直接行权转换为BVI 公司股份、股权、注册股本或所有权益的相关证券、购买选择权、认股权证或类似协议;
	 	 	 
	 	6.1.2	alter the shareholding structure of the BVI Company (other than as a result of the transactions contemplated by this agreement);
	 	6.1.2	变更BVI 公司的持股结构(但依本协议转让现存股份的结果除外);
	 	 	 
	 	6.1.3	cancel, redeem, forefeit or otherwise alter the shares of the BVI Company that Grantor holds;
	 	6.1.3	注销、回赎、取消或变更授予人持有的选择权股份;
	 	 	 
	 	6.1.4	amend the register of members or the memorandum and articles of association of the BVI Company;
	 	6.1.4	修订BVI 公司章程或公司股东名册;
	 	 	 
	 	6.1.5	liquidate or wind up the BVI Company;
	 	6.1.5	对于BVI 公司进行清盘或歇业;
	 	 	 
	 	6.1.6	act or omit to act in such a way that would effect the interest in the BVI Company that Grantor holds;
	 	6.1.6	任何可能对于被授予人的选择权股份产生不利影响的作为或不作为
	 	 	 
	 	6.1.7	transfer or dispose of any assets or liabilities of the BVI Company;
	 	6.1.7	转让或处分任何BVI公司资产或债务
	 	 	 
	 	6.1.8	incur any obligations whatsoever, including any financial obligations, or borrow any money or assets from any bank or third party;
	 	6.1.8	承诺任何种类的义务,包括财务义务,或向银行或第三方借款;
	 	 	 
	 	6.1.9	appoint or remove any officer or manager of the BVI Company;
	 	6.1.9	任命或免职任何BVI公司高级管理人员或经理;

 

  

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	 	6.1.10	acquire property from any person;
	 	6.1.10	从任何人处取得资产
	 	 	 
	 	6.1.11	enter into any contract with any third party;
	 	6.1.11	与第三方签署合同;
	 	 	 
	 	6.1.12	invest funds or assets held by the BVI Company; or
	 	6.1.12	投资任何BVI公司持有的基金或资产;或
	 	 	 
	 	6.1.13	take any action that would circumvent, oppose or interfere with the exercise of Grantees’ rights under this Agreement.
	 	6.1.13	进行任何限制、阻止或干扰被授予人行使本协议项下权利的行为。
	 	 	 
	 	6.2 	During the term of this agreement, Grantor hereby further agrees;
	 	6.2 	在本协议期间,授予人同意:
	 	 	 
	 	

6.2.1

	to execute and deliver to any party any document, agreement, instrument, notice, letter or other item as requested by Grantee in connection with Grantee’s exercise of discretion and its rights hereunder;
	 	

6.2.1

	依被授予人要求就被授予人行使其本协议项下权利签署任何文件、协议、票证、通知、函件等事项并向第三方传送。
	 	 	 
	 	6.2.2	Grantor shall take any action as reasonably necessary, whether or not directed by Grantee, in order to realize the intent of the Parties under this Agreement.
	 	6.2.2	授予人不应采取任何行动变更BVI公司的管理层。

 

	
7  

	
MISCELLANEOUS

7.     附则

 

	 	7.1	Indulgence, Waiver Etc: No failure on the part of any Party to exercise and no delay on the part of such Party in exercising any right hereunder will operate as a release or waiver thereof, nor will any single or partial exercise of any right under this Agreement preclude any other or further exercise of it or any other right or remedy.
	 	7.1	豁免、弃权 任何协议一方对于本协议相关权利的不行使或是迟延行使均不应视为该项权利的弃权或豁免;行使本协议项下的某一或部分权利,并不影响行使进一步权利、行使其他权利或救济。
	 	 	 
	 	7.2	Effective Date and Continuing Effect of Agreement: This Agreement shall take effect from the Effective Date.  All provisions of this Agreement shall not, so far as they have not been performed at Completion, be in any respect extinguished or affected by Completion or by any other event or matter whatsoever and shall continue in full force and effect so far as they are capable of being performed or observed, except in respect of those matters then already performed.
	 	7.2	生效日及协议的持续效力 本协议应自生效日起生效。除已经履行的相关条款外,本协议所有条款如在交割时尚未被履行,应保持完整的效力,均不应基于上述交割而失效或是受到其他相关事由的影响。

 

  

10

  

 

	 	7.3	Successors and Assigns: This Agreement shall be binding on and shall ensure for the benefit of each of the Parties' successors and permitted assigns. Any reference in this Agreement to any of the Parties shall be construed accordingly.
	 	7.3	承继人和受让人 本协议基于协议各方及其承继方和许可受让方的利益而订立,并对于上述各方有约束效力。对本协议所涉的各方应作据此解释。
	 	 	 
	 	7.4	Further Assurance: At any time after the date of this Agreement, each of the Parties shall, and shall use its best endeavors to procure that any necessary third party shall, execute such documents and do such acts and things as any other Party may reasonably require for the purpose of giving to such other Party the full benefit of all the provisions of this Agreement.
	 	7.4	进一步保证 自本协议签署之日起,为使协议对方获得本协议项下的充分利益,协议各方均应根据协议对方的合理要求,签署必要文件或采取必要的行动;或尽最大努力促使必要的第三方签署必要文件或采取必要的行动。
	 	 	 
	 	7.5	Remedies: No remedy conferred by any of the provisions of this Agreement is intended to be exclusive of any other remedy which is otherwise available at law, in equity, by statute or otherwise, and each and every other remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law, in equity, by statute or otherwise. The election of any one or more of such remedies by any Party shall not constitute a waiver by such Party of the right to pursue any other available remedies.
	 	7.5	 救济 本协议约定的所有救济均不应排除普通法、衡平法、制订法等救济措施的适用;上述救济均应视为累积救济,且不应与前述普通法、衡平法、制订法等救济产生任何关联。协议方选择一项或是多项救济不应视为放弃其他救济措施。
	 	 	 
	 	7.6	Severability of Provisions: If any provision of this Agreement is held to be illegal, invalid or unenforceable in whole or in part in any jurisdiction, this Agreement shall, as to such jurisdiction, continue to be valid as to its other provisions and the remainder of the affected provision; and the legality, validity and enforceability of such provision in any other jurisdiction shall be unaffected.
	 	7.6	条款可分性 如果本协议的任何条款在任何法域被认定为非法、无效或不可履行,则本协议其他条款仍应保持完全的法律效力;并且,前述被认定无效的条款在其他法域内的合法性、有效性和可履行性均不应影响。
	 	 	 
	 	7.7	Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the British Virgin Islands.
	 	7.7	适用法律 本协议应适用英属维京群岛的法律,并根据该法律进行解释。
	 	 	 
	 	7.8	Dispute Resolution: In the event of any dispute, claim or difference (the "Dispute") between any Parties arising out of or in connection with this Agreement, the Dispute shall be resolved in accordance with the following:
	 	7.8	争议解决  协议各方在本协议履行过程中产生的所有争议、索赔或分歧(“争议”)均应通过以下方式解决:

 

  

11

  

 

(a)   Negotiation between Parties; Mediations.  The Parties agree to negotiate in good faith to resolve any Dispute.  If the negotiations do not resolve the Dispute to the reasonable satisfaction of all parties within thirty (30) days, subsection (b) below shall apply.

 

(a)   各方协商;调解 协议各方同意通过善意协商解决相关争议,如果协议各方未能在三十天内通过协商方式满意解决相关争议,则应按照下述约定解决该项争议。

(b)   Arbitration.  In the event the Parties are unable to settle a Dispute in accordance with subsection (a) above, such Dispute shall be referred to and finally settled by arbitration at Hong Kong International Arbitration Centre in accordance with the UNCITRAL Arbitration Rules (the “UNCITRAL Rules”) in effect, which rules are deemed to be incorporated by reference into this subsection (b).  The arbitration tribunal shall consist of three arbitrators to be appointed according to the UNCITRAL Rules.  The language of the arbitration shall be English.

 

(b)   仲裁:如果协议方未能按照上述(a)款约定的方式解决相关争议,该项争议应递交香港国际仲裁中心根据有效的联合国国际贸易法委员会仲裁规则(“联合国仲裁规则”)进行终局裁决,前述规则应视为本款约定不可分割的组成部分。仲裁庭应根据联合国仲裁规则任命的三名仲裁员组成。仲裁程序应使用英语进行。

 

	 	7.9	Counterparts: This Agreement may be signed in any number of counterparts, all of which taken together shall constitute one and the same instrument.  Any Party hereto may enter into this Agreement by signing any such counterpart.
	 	7.9	份数  本协议可签署多份,各份共同构成同一协议文件。本协议任何一方均可通过签署任何一份的方式订立本协议。

[SIGNATURE PAGE FOLLOWS]

[以下是签名页]

 

  

12

  

 

IN WITNESS WHEREOF the Parties hereto have executed this Agreement on the date first above written.

兹证明,协议各方于本协议首页载明之日期签署本协议。

The Grantor

授予人

 

By: _____________________

签名:

Name: LUCY XIA

姓名:

 

  

13

  

 

 

IN WITNESS WHEREOF the Parties hereto have executed this Agreement on the date first above written.

兹证明,协议各方于本协议首页载明之日期签署本协议。

The Grantee

被授予人

 

By: _____________________

签名:

Name: ZHOU, Taiping

姓名: 周太平

  

14

  

 

SCHEDULE A

附件A

Grantee and Option Shares

被授予人及选择权股份

	
Grantee

被授予人

	
ID Card/Passport Number

身份证/护照号码

	
Number of

Option Shares

选择权股份数

	
Exercise Price

行权价

	
ZHOU, Taiping

周太平

	
432930195208136313

	
10,000

	
USD 0.01

  

15

  

 

SCHEDULE B

 

附件B

Part I

第I部分

Form of Exercise Notice

行权通知格式

To: LUCY XIA (the “Grantor”) and board of directors of BVI Company

致:LUCY XIA(“授予人”)与 BVI公司董事会

From: ZHOU Taiping (the “Grantee”)

递送方:周太平(“被授予人”)

We refer to the Call Option Agreement (the "Option Agreement") dated January 15, 2011 made between the Grantee and the Grantor.  Terms defined in the Option Agreement shall have the same meanings as used herein.

我们参照被授予人与授予人于2011年1月15日签订的选择权协议(“选择权协议”)。此处所用术语与选择权协议的定义具有同等含义。

We hereby give you notice that we require you to sell to us / [Nominees' names] in accordance with the terms and conditions of the Option Agreement, the following Option Shares at the Exercise Price set out below, subject to the terms and conditions set out in the Option Agreement. Completion shall take place at [ ] on [                   ] at the office of [                   ].

我们在此通知贵方,我们要求贵方依据选择权协议的条款和条件向我们/[提名人姓名]按下列行权价出售如下选择权股份。根据选择权协议所规定的条款和条件,交割应于【】日【】时在【】办公室进行。

	
Grantee

被授予人

	
Option Shares

选择权股份

	
Exercise Price

行权价

	
ZHOU Taiping

周太平

	  	
USD 0.01

 

Dated [               ]

日期【              】

Yours faithfully

此致

 

(1) 敬礼

 

___________________________

Name: ZHOU Taiping

姓名:周太平

 

  

16

  

 

Party II

第II部分

Form of Transfer Notice I

转让通知格式一

To: LUCY XIA (the “Grantor”) and board of directors of BVI Company

致:LUCY XIA(“授予人”)与BVI公司董事会

From: ZHOU Taiping (the “Grantee”)

递送方:周太平(“被授予人”)

We refer to the Call Option Agreement (the "Option Agreement") dated January 15, 2011 made between the Grantee and the Grantor.  Terms defined in the Option Agreement shall have the same meanings as used herein.

我们参照被授予人与授予人于2011 年1月15日签订的选择权协议(“选择权协议”)。此处所用术语与选择权协议的定义具有同等含义。

We hereby give you notice that we will transfer to [Nominees' names] the following portion of the Option, expressed in terms of the number of Option Shares represented by the portion of the Option transferred in accordance with the terms and conditions of the Option Agreement,.

我们在此通知贵方,我们将按照购买选择权的条款和条件,向[提名人姓名]转让下述部分选择权,以转让的部分选择权代表的选择权股份数额予以表示。

	
Grantee

被授予人

	
Nominees

提名人

	
Option Shares Represented

代表的选择权股份

	
[  ]

	  	  
	  	  	  

 

Dated [         ]

日期

Yours faithfully

此致

 

(2) 敬礼

___________________________

ZHOU Taiping

周太平

 

 

17

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