Document:

ex10-1.htm

Exhibit 10.1

 

 

Certain portions of this exhibit have been omitted pursuant to Rule 24b-2 and are subject to a confidential treatment request. Copies of this exhibit containing the omitted information have been filed separately with the Securities and Exchange Commission. The omitted portions of this document are marked with a ***.

AGREEMENT 

BETWEEN 

WU'AN MUNICIPAL PEOPLE'S GOVERNMENT, HEBEI PROVINCE 

AND 

HANDAN MUNICIPAL PEOPLE’S GOVERNMENT, HEBEI PROVINCE

AND

ALTAIR NANOTECHNOLOGIES (CHINA) CO., LTD. 

ON COOPERATIVE INVESTMENT AND CONSTRUCTION OF 

LITHIUM TITANATE MATERIALS PRODUCTION LINE 

On 

LITHIUM ION ENERGY STORAGE SYSTEM PROJECT

April 19, 2012

 

 

  

1

  

	
Party A:

	
Wu'an Municipal People's Government, Hebei Province

(hereinafter referred to as Party A)

 

Address:

 

Telephone:                 Fax:                  Post code:

 

	
Party B:

	
Altair Nanotechnologies (China) Co., Ltd. 

(hereinafter referred to as Party B)

 

Address:

 

Telephone:                 Fax:                  Post code:

 

	
Party C:

	
Handan Municipal People's Government , Hebei Province 

(hereinafter referred to as Party C)

 

Address:

 

Telephone:                 Fax:                  Post code:

 

 

Party A and Party B agree to jointly promote, plan and develop the industrial park based on the scientific and mutually beneficial, win-win cooperative principles to increase the local tax revenue, lift GDP and expand local employment opportunities. Party B, as a new energy enterprise, should have the world's advanced technology and process in the production of lithium ion battery and energy storage system products, and it should make use of the advantageous conditions including China acting as the 21st century's development engine for the world economy, potential huge new energy application market, rich human resources and low cost investment, etc. to rapidly realize the large scale development and industrialization of the new energy industry and to occupy domestic and foreign markets.

 

Both parties will vigorously develop the new energy industry-oriented headquarter economy as well as the projects’ ability to sell various kinds of new energy products at its initial startup phase, which will expand and firm up local tax sources and facilitate the development of local economy.

 

After friendly consultation, the Parties reached the following agreements for Party B's construction of the headquarters base and the investment and construction of the production project for lithium titanate materials and lithium ion energy storage system in Party A's park:

 

  

2

  

 

1.    Content of Construction: Party B agrees to construct a plant which shall have the following content of construction:

	
  

	
a.

	
LTO material production line: annual capacity of up to 3,000 tons in the first phase of the project, and up to *** tons in later phases;

	
  

	
b.

	
Li-ion energy storage system production line: annual capacity of up to ***MW.

 

2.    Scale of investment: Total investment is estimated at ***RMB over the life of the project.

 

3.    Land for the Project: Party A shall grant Party B with the exclusive   and completed right to 2,000 mu of land (the “Land”) as defined in the attached memorandum of understanding between Party A and Party B. This memorandum of understanding shall be an indivisible part of this agreement and have equal legal effect.

 

4.    Project progress:

 

	
  

	
a.

	
Party A should finish registration of the subsidiary company in Wuan, Hebei before April 20, 2012, and Party A should assist Party B to finish the land use rights transfer procedure before July 30, 2012.

 

	
  

	
b.

	
Party B should build a project team and enter Wu’an industrial park within 5 days after signing of this agreement.

 

	
  

	
c.

	
Party B will seek to finish the first phase of construction and commence LTO material and energy storage system production before October 31, 2013.

 

5.    Market supporting policies: In the light of both parties’ intent of establishing a "headquarters economy", and in order to support the project’s market sales at its initial and subsequent development phases, purchase orders will be all placed to the company established by Party B in Wu’an to realize the “headquarters economy” effect as follows:

	
  

	
a.

	
As per the attached sales and purchase agreement between Party A and Party B, Party A shall purchase *** EV buses from Party B and specially issue the operational licenses for *** EV taxis for Party B, which will be a demonstration for promotion of Green, Environmental protection and new energy, in which, ***EV bus should be purchased and *** operation licenses should be issued before end of 2012.

	
  

	
b.

	
In order to apply for the national “Ten city one thousand electric vehicles” demonstration city, Party C decides to apply clean energy and strongly promote public transportation and change gasoline engine taxis to electric Taxi. Party C will purchase *** EV buses and ***EV Taxis from Party B within 5 years ( the sales and purchase agreement between Party C and Party B will be signed later and is the indivisible part of this agreement.)

	
  

	
c.

	
For the purpose of urban energy management safety, energy saving and emission reduction and peak shaving, Party C will promulgate supporting policies for energy storage system market before the launch of Party B's project as follows:

 

  

3

  

 

	
  

	
(a)

	
The area under Party C’s administration (including each district, town, or city), ***% of the total gross installed capacity of the new wind power projects must be equipped with Party B’s advanced energy storage system;

 

	
  

	
(b)

	
The emergency power supply system for newly constructed commercial or residential building, public places and government divisions should be installed by international advanced LTO energy storage system produced by companies within Party C’s administration area beginning in January 1, 2013. The purchased products should have national and international legal intellectual property and technology with patent. Infringing products cannot be purchased or applied.

 

Party C shall implement these policies and purchase at least ***MW energy storage system from Party B before December 30th, 2013.

 

	
6.

	
Party A shall carry out the tender, auction or listing procedures for land granting related to the Land within three months of the establishment of the Hebei company of Party B.  Party A will provide to Party B the Land use right certificate which shall conform to the requirements of the laws of the State. The relevant issues shall be implemented according to the memorandum of understanding between Party A and Party B. The Land granted by Party A shall satisfy the standard of “nine availabilities and land leveling” (e.g., nine availabilities shall mean that water, electricity, heat, gas, sewage, post, telecommunications, and TV signals are connected and available on the Land; and leveling shall mean that the Land has leveled ground and is accessible to paved roads). Party A shall guarantee that there are no disputes in connection with such Land.

 

	
7.

	
In order to encourage Party B to commence the construction as soon as possible, Party A shall support Party B to commence the construction while at the same time handling the relevant formalities for commencement of project construction.

 

  

4

  

 

	
8.

	
The Parties will jointly establish a project office (no less than 3 persons from each party), which shall be responsible for all the daily work of the construction of the project until the commencement of the production.

 

	
9.

	
For the new energy project built by Party B in Party A’s industrial park, the associated infrastructure package fee and all of the administrative charges will be waived for Party B. To encourage the development of the industry, the previously agreed revenue policy of “Three free and Three half” has been changed to that, for the revenue from local retained part, in the first three years, will be awarded to the enterprise; for the fourth till sixth year, half of the revenue will be awarded to the enterprise for technical innovation, new products development, technology introduction, setting up research and development center, etc. Party A will provide necessary supporting policies; help with setting up a financing platform; support to provide loans and financing guarantees for an eligible entity; and provide government interest subsidies through the Wu’an New Energy Industry Development Fund (the “Fund”) that has been incorporated into the annual financial plan. Subsidies from the Fund shall include loan interest payments of no less than ***RMB for three years starting from 2012, which shall be awarded to companies who are engaged in the research and development and large scale production of world advanced nano LTO material, LTO batteries, energy storage systems within the industrial park.

 

	
10.

	
In order to improve the research and development, production and operation, introduction of talents and smooth operation of the enterprises at the locality, prior to March 2013, Party A must provide Party B with no less than ***of commercial-residential land to the extent permitted by law.

 

	
11.

	
The office room and accommodation of the project preparation office of Party B and the exhibition hall for the plans of investment attraction and invitation shall be provided by Party A free of charge; the accommodation of the management personnel and high level talents of the Hebei company of Party B enjoy the relevant preferential policies of Handan Municipality (Wu'an) for foreign investment.

 

	
12.

	
Party A shall be responsible for the connection of the necessary facilities of water, electricity, gas to the boundary lines of the project land of Party B, and guarantee the sufficient supply of water, electricity, gas, etc as demanded by the project. The prices of the water, electricity, gas consumed will be calculated at the local favorable price.

 

  

5

  

 

	
13.

	
Subject to the documents provided by Party B for obtaining relevant approvals being timely provided, complete and accurate, Party A will be fully responsible for the relevant formalities for Party B's establishing of the company, the obtaining of approval for the project and the obtaining of the approval for the commencement of construction.

 

	
14.

	
If Party B needs to expand the production capacity of the project within 3 years, Party A will provide the land for the second stage of the project which is adjacent to the land of the first stage. The specific size of the land will be provided according to the need of the capacity expansion, and Party B will enjoy all the preferential policies applicable to the first stage investment.

 

	
15.

	
Party A is responsible to facilitate Party B's personnel to purchase apartments locally and enjoy the policies available to the local people. Party A is responsible to help the Party B's high level talents and the children of the key technical persons to complete the process for registering residential domicile (hukou) and enrolling in nearby schools and will exempt any temporary schooling fees.

 

	
16.

	
Based on the principal spirit of this agreement, the exact implementation plan for the three core points, i.e. land, market and funds, will be further defined before May 20, 2012.

 

	
17.

	
The Parties shall strictly fulfill the confidentiality obligations, and shall not disclose the relevant information of this Agreement to the public and any third party (except for market promotion order).

 

	
18.

	
Any dispute should be solved by friendly discussion and negotiation between both parties.

 

	
19.

	
Issues not included in this Agreement can be stipulated in a separately signed supplementary agreement, which shall have the equal legal effect as this Agreement.

 

	
20.

	
This Agreement shall be written in Chinese and executed in eight   copies, with each Party holding three copies and the Verifying and Witnessing Party holding two copies.

 

 (Intentionally left blank)

(Signatures below)

 

  

6

  

 

Party A:  Heibei Wu'an Municipal People's Government, Hebei Province

 

(signature of authorized representative):

 

/s/ [signature illegible]

 

 

Party B: Altair Nanotechnologies (China) Co., Ltd.

(signature of authorized representative):

 

/s/  Alexander Lee

 

 

Party C: Handan Municipal People's Government, Hebei Province

 

(signature of authorized representative):

 

 

/s/ [signature illegible]

 

 

 

 

Date of execution:   April 19 , 2012

 

 

 

 

7Unassociated Document

Exhibit 10.1

 

AMENDMENT NO. 6 TO CREDIT AGREEMENT

 

This AMENDMENT NO. 6 TO CREDIT AGREEMENT (this “Amendment”) is dated as of June 14, 2012 by and among INTERNATIONAL TEXTILE GROUP, INC., a Delaware corporation (“ITG”), the other Borrowers and Credit Parties signatory hereto, GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (“GE Capital”), for itself and as Agent (“Agent”), and the other Lenders signatory hereto.  Unless otherwise specified herein, capitalized terms used in this Amendment shall have the meanings ascribed to them in the Credit Agreement (as hereinafter defined).

 

R E C I T A L S:

 

WHEREAS, Borrowers, the other Credit Parties, the Agent and the Lenders entered into that certain Amended and Restated Credit Agreement dated as of March 30, 2011 (as amended, supplemented, restated or otherwise modified from time to time, the “Credit Agreement”); and

 

WHEREAS, the parties to the Credit Agreement have agreed to an amendment to, the Credit Agreement as set forth herein.

 

NOW, THEREFORE, in consideration of the premises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1           Amendments to Credit Agreement.

 

1.1           Section 5.4(f) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“(f) the Investment by ITG in ITG – Phong Phu Limited Company, a joint venture organized under the laws of Vietnam (“Phong Phu”), in the form of an unsecured subordinated loan from ITG (either directly or through one of its Subsidiaries) to Phong Phu (the “Phong Phu JV Loan”); provided that (v) such Investment shall be made by no later than June 24, 2011, (w) such Investment shall not exceed $3,500,000, (x) at the time such Investment is made, no Default or Event of Default shall have occurred and be continuing, (y) such Phong Phu JV Loan shall be evidenced by a promissory note in form and substance satisfactory to the Agent and delivered to the Agent in original copy together with instruments of transfer executed in blank and (z) either (i) such Phong Phu JV Loan shall have been repaid in full in cash by Phong Phu by no later than November 22, 2012 (which repayment shall have been evidenced by a certificate of a Responsible Officer of the Borrower Representative delivered to Agent certifying that such amounts have been repaid by Phong Phu by no later than such date) or (ii) Agent, for the benefit of the Lenders, shall have received payment under the WLR/RBS Letter of Credit in the full amount thereof on or before December 22, 2012 in accordance with its terms (which amounts shall have been applied by Agent first to prepay outstanding Swing Loans, and second to prepay outstanding Revolving Loans owing by the Borrowers without a permanent reduction of the Aggregate Revolving Loan Commitment); provided that, to the extent the Phong Phu JV Loan shall have been repaid in full in cash by Phong Phu to ITG on or prior to November 22, 2012, Agent shall, on behalf of the Lenders, terminate the WLR/RBS Letter of Credit in accordance with its terms;”

 

  

  

  

 

1.2           Section 11.1 of the Credit Agreement is hereby amended by inserting the following new defined terms in proper alphabetical order thereto:

 

““Sixth Amendment Effective Date” has the meaning assigned to such term in that certain Amendment No. 6 to Credit Agreement dated as of June 14, 2012 among Borrowers, the other Credit Parties signatory thereto, Agent and the Lenders signatory thereto.”

 

1.3           Section 11.1 of the Credit Agreement is hereby amended by amending and restating the following defined terms in their entirety to read as follows:

 

““WLR/RBS Letter of Credit” means an irrevocable standby letter of credit in form and substance satisfactory to Agent that (i) is issued by RBS Citizens, N.A. in an amount equal to $3,675,000, (ii) names GE Capital, in its capacity as Agent for itself and the Lenders, as the beneficiary thereof and (iii) names WLR Recovery Fund IV L.P. as the applicant, which letter of credit shall have been delivered in original copy to Agent on the Second Amendment Effective Date and which letter of credit shall have been amended (the “WLR/RBS LC Amendment”) on or prior to the Sixth Amendment Effective Date in a manner satisfactory to Agent to (x) extend the expiration date thereof from June 13, 2012 to December 22, 2012, (y) change the reference to May 14, 2012 therein to November 22, 2012 and (z) provide that Agent may request payment thereunder to the extent an Event of Default shall have occurred and be continuing.”

 

2           Representations and Warranties.  In order to induce Agent and the Lenders to enter into this Amendment, each Borrower and each other Credit Party represents and warrants to Agent and each Lender (which representations and warranties shall survive the execution and delivery of this Amendment), that:

 

(a)           the execution, delivery and performance by each Credit Party of this Amendment has been duly authorized by all necessary corporate and partnership action and this Amendment is a legal, valid and binding obligation of such Credit Party enforceable against such Credit Party in accordance with its terms; and

 

(b)           upon the effectiveness of this Amendment, all of the representations and warranties contained in the Credit Agreement and in the other Loan Documents (other than those which speak expressly only as of an earlier date) are true and correct in all material respects on and as of the date of the effectiveness of this Amendment after giving effect to this Amendment and the transactions contemplated hereby.

 

3           Conditions to Effectiveness.  This Amendment shall be effective on the date when each of the following conditions has been satisfied (the “Sixth Amendment Effective Date”):

 

(a)           This Amendment shall have been duly executed and delivered by each Borrower, each other Credit Party party hereto, Agent, the Supermajority Revolving Lenders and the Majority Lenders;

 

  

-2-

  

 

(b)           Agent shall have received a duly executed and delivered copy of the WLR/RBS LC Amendment; and

 

(c)           Agent shall have received, to the extent invoiced, payment of all out-of-pocket expenses (including the legal fees and expenses of Latham & Watkins LLP, counsel to Agent).

 

4           Miscellaneous.

 

4.1           Effect; Ratification.

 

(a)           Except as specifically set forth above, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed.  Without limiting the generality of the foregoing, each Credit Party reaffirms its guaranty of the Obligations and the Liens securing those guaranties.

 

(b)           The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of Agent or any Lender under the Credit Agreement or any other Loan Document, nor constitute amendment of any provision of the Credit Agreement or any other Loan Document, except as specifically set forth herein.  Upon the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby.

 

(c)           Each Credit Party acknowledges and agrees that the amendments set forth herein are effective solely for the purposes set forth herein and that the execution and delivery by Agent and the Lenders of this Amendment shall not be deemed (i) except as expressly provided in this Amendment, to be a consent to any amendment, waiver or modification of any term or condition of the Credit Agreement or of any other Loan Document, (ii) to create a course of dealing or otherwise obligate Agent or Lenders to forbear, waive, consent or execute similar amendments under the same or similar circumstances in the future, or (iii) to amend, prejudice, relinquish or impair any right of Agent or Lenders to receive any indemnity or similar payment from any Person or entity as a result of any matter arising from or relating to this Amendment.

 

4.2           Counterparts and Signatures by Fax.  This Amendment may be executed in any number of counterparts, each such counterpart constituting an original but all together one and the same instrument.  Any party delivering an executed counterpart of this Amendment by fax shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or binding effect of this Amendment.

 

4.3           Severability.  In case any provision in or obligation under this Amendment shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

 

4.4           Loan Document.  This Amendment shall constitute a Loan Document.

 

  

-3-

  

 

4.5           GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL, IN ALL RESPECTS, INCLUDING MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

 

[Signature Pages Follow]

 

 

  

-4-

  

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above written.

	 	
BORROWERS:

INTERNATIONAL TEXTILE GROUP, INC.

BURLINGTON INDUSTRIES LLC

CONE JACQUARDS LLC

CONE DENIM LLC

CARLISLE FINISHING LLC

SAFETY COMPONENTS FABRIC

   TECHNOLOGIES, INC.

	 
	 	 	 
	 	 	 	 
	 	
By: 

	/s/ Craig J. Hart	 
	 	Name:	Craig J. Hart	 
	 	Title:	Vice President and Treasurer	 

 

	 	
NARRICOT INDUSTRIES LLC

 

By: International Textile Group, Inc., its sole member

 

	 
	 	 	 	 
	 	
By: 

	/s/ Craig J. Hart	 
	 	Name:	Craig J. Hart	 
	 	Title:	Vice President and Treasurer	 

 

[Signature Page to Amendment No. 6 to Amended and Restated Credit Agreement]

  

  

  

	 	

OTHER CREDIT PARTIES:

 

APPAREL FABRICS PROPERTIES, INC.

BURLINGTON INDUSTRIES V, LLC

CONE ADMINISTRATIVE AND SALES LLC 
CONE INTERNATIONAL HOLDINGS II, INC.

 
INTERNATIONAL TEXTILE GROUP ACQUISITION GROUP LLC

BURLINGTON WORLDWIDE INC.

 
CONE DENIM WHITE OAK LLC

 
CONE INTERNATIONAL HOLDINGS, INC.

 
CONE ACQUISITION LLC

 
WLR CONE MILLS IP, INC.

	 
	 	 	 
	 	 	 	 
	 	
By: 

	/s/ Craig J. Hart	 
	 	Name:	Craig J. Hart	 
	 	Title:	Vice President and Treasurer	 

 

	 	
VALENTEC WELLS, LLC 
By: International Textile Group, Inc.,

its sole member

	 
	 	 	 	 
	 	
By: 

	/s/ Craig J. Hart	 
	 	Name:	Craig J. Hart	 
	 	Title:	Vice President and Treasurer	 

 

 

[Signature Page to Amendment No. 6 to Amended and Restated Credit Agreement]

  

  

  

 

	 	 
AGENT AND LENDERS:

	 
	 	 	 	 
	 	 
GENERAL ELECTRIC CAPITAL CORPORATION, as the Agent and a Lender

	 
	 	 	 
	 	
By: 

	/s/ James N. DeSantis	 
	 	Name:	James N. DeSantis	 
	 	Title:	Its Duly Authorized Signatory	 

 

[Signature Page to Amendment No. 6 to Amended and Restated Credit Agreement]

  

  

  

 

	 	 
TD BANK, N.A., as a Lender

	 
	 	 	 	 
	 	
By: 

	/s/ Jang Kim	 
	 	Name:	Jang Kim	 
	 	Title:	Vice President	 

 

 

[Signature Page to Amendment No. 6 to Amended and Restated Credit Agreement]

  

  

  

 

	 	BANK OF AMERICA, N.A., as a Lender	 
	 	 	 	 
	 	
By: 

	/s/ John Yankauskas	 
	 	Name:	John Yankauskas	 
	 	Title:	Sr. Vice President	 

 

 

[Signature Page to Amendment No. 6 to Amended and Restated Credit Agreement]

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