Document:

Exhibit 10.1

Exhibit 10.1

Share Purchase Agreement

Between

Synthesis Energy Systems, Inc.

China Energy Industry Holding Group Co., Limited

and

Zhongjixuan Investment Management Company Ltd.

March 31, 2011

 

 

Share Purchase Agreement

This Share Purchase Agreement (this “Agreement”) is made and entered into as of March 31,
2011, by and among the following (collectively, the “Parties”):

Synthesis Energy Systems, Inc. (“SES”), a Delaware corporation listed on the NASDAQ Global
Market (“NASDAQ”), with its address at Three Riverway, Suite 300, Houston, Texas 77056, United
States of America (“USA”);

Zhongjixuan Investment Management Company Ltd. (“ZJX”), a limited liability company
incorporated and existing under the law of the People’s Republic of China (“PRC”), with its
address at No.4 Building, No.7 Wanshou Road (West), Beijing, PRC; and

China Energy Industry Holding Group Co., Limited, a limited liability company (“China Energy”)
incorporated and existing under the law of Hong Kong Special Administrative Region, PRC (“Hong
Kong”) , with its address at Unit D 16/F Cheuk Nang Plaza 250 Hennessy RD Wanchai, Hong Kong.

WHEREAS, as of March 30, 2011, SES had 48,449,512 issued and outstanding shares of common stock,
par value USD0.01 (in this Agreement “USD” shall mean the legal currency of the USA) per share (the
“Common Stock”), outstanding options to acquire 6,462,455 shares of Common Stock and 969,745 shares
of Common Stock reserved for future issuance pursuant to its incentive plan.

WHEREAS, pursuant to the terms and conditions of this Agreement, SES will agree to issue new shares
of Common Stock (“New Shares”) to China Energy on the terms described below.

WHEREAS, pursuant to the terms and conditions of Clause 7.3 of this Agreement, ZJX shall directly
or indirectly acquire 60% of the equity of China Energy.

WHEREAS, notwithstanding anything to the contrary in any documents which may be submitted to any
governmental authorities in connection with this transaction, the Parties intend to comprehensively
set forth in this Agreement all of the terms and conditions of this transaction.

NOW THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained
herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties agree as follows:

	1.	 	Definitions

	 
	1.1	 	References to any statutory provisions shall, where the context so admits or requires, be
construed as references to those provisions as respectively amended, consolidated, extended or
re-enacted from time to time, and shall, where the context so admits or requires, be construed
as including references to the corresponding provisions of any earlier legislation (whether
repealed or not) directly or indirectly amended, consolidated, extended, or replaced thereby
or re-enacted therein, which may be applicable to any relevant tax year or other period, and
shall include any orders, regulations, instruments or other subordinate legislation made under
the relevant statute.

	 
	1.2	 	Unless the context otherwise requires, words importing the singular only shall include the
plural and vice versa, words importing one gender only shall include all other genders, and
words importing natural persons shall include corporations and un-incorporated associations.

	 
	1.3	 	The recitals form an integral part of this Agreement and shall be construed and have the same
full force and effect as if expressly set out in the body of this Agreement.

	 
	1.4	 	References herein to clauses are to clauses in this Agreement unless the context
requires otherwise.

 

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	1.5	 	a “business day” shall mean any day (other than a Saturday or a Sunday or other public
holidays) on which banks are open for business in Hong Kong. A “day” shall mean a calendar
day.

	 
	2.	 	Transactions

	 
	2.1	 	Payment of Consideration for New Shares

	 
	 	 	On the Closing Date (as defined in Clause 3 below), China Energy shall make the payment of
USD83,822,568 (the “Consideration”) in a lump sum payment by wire transfer to a designated
Hong Kong bank account held by the Escrow Agent (as defined in Clause 2.3.1 below).

	 
	2.2	 	Issuance of New Shares

	 
	 	 	Subject to the other terms and conditions under this Agreement, the New Shares should be
issued and released pursuant to the following schedule:

	 	2.2.1	 	On the Closing Date, SES shall issue 37,254,475 New Shares (“Closing
Shares”) to China Energy and deliver the Closing Shares to the Escrow Agent and the
Escrow Agent shall release such Closing Shares to China Energy pursuant to Clause
2.3.2.

	 
	 	2.2.2	 	Within twenty (20) business days after the accomplishment of the Milestone
(as defined in Clause 2.2.3 below), SES shall further issue directly to China Energy
an amount of New Shares (the “Milestone Shares”) which, when combined with the Closing
Shares, equals sixty percent (60.0%) of the issued and outstanding Common Stock
(including outstanding options or securities convertible to, or exercisable for shares
of Common Stock, and all Common Stock reserved for future issuance pursuant to SES
incentive plan) on a fully-diluted basis as of the date on which the Milestone is
achieved.

	 
	 	2.2.3	 	For the purpose of the above, the Milestone (the “Milestone”) will be deemed
to be achieved if the average closing price of the Common Stock for twenty (20)
consecutive trading days equals USD8.00 per share (the “Threshold Price”) or above,
provided that, the beginning of the twenty (20) consecutive trading days may only
occur upon the occurrence of both (i) ZJX and/or China Energy has undertaken best
endeavours to establish any of one of the MJVs as described in Clause 7.2.1 for SES;
and (ii) the expiration of a 6 month period after the Closing Date.

	2.3	 	Escrow Arrangement

	 	2.3.1	 	Within 30 business days upon the signing of this Agreement, China Energy and
SES shall jointly appoint a reputable law firm or accounting firm in Hong Kong as the
escrow agent (“Escrow Agent”), which shall be responsible for releasing of the
Consideration to SES and Closing Shares to China Energy, pursuant to the terms and
conditions of this Agreement.

	 
	 	2.3.2	 	Within three (3) business days after receipt by the Escrow Agent of joint
written instructions from ZJX, China Energy and SES confirming that all conditions
precedent set forth in Clause 4 of this Agreement have been satisfied, the Escrow
Agent shall release and wire transfer the full amount of the Consideration to a Hong
Kong bank account designated by SES, and release and deliver the Closing Shares to
China Energy.

 

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	2.4	 	Failure to Achieve the Milestone

	 
	 	 	In the event that the Milestone is not achieved within a five (5) year period commencing on
the Closing Date (such five years plus any extensions granted pursuant to this Clause 2.4
shall be referred to as the “Deadline” in this Agreement), and no Target Projects (as
defined below) are secured by ZJX for SES by the Deadline, SES shall then have the sole
discretion to extend or not extend the Deadline. If ZJX has secured Target Projects for
SES prior to the Deadline, but the Milestone has not been achieved by the Deadline, SES
shall agree to extend the period to achieve the Milestone by one year for each Target
Project secured by ZJX for SES, provided that the Deadline cannot be extended beyond 10
years from the Closing Date. If the Deadline is not extended pursuant to this Agreement
after it expires, China Energy’s rights to the Milestone Shares shall be relinquished.

	 
	 	 	For the purpose of the above, a Target Project (“Target Project”) shall mean either (i) the
execution of a joint venture agreement, and other ancillary and necessary documents,
related to the formation of a MJV (as defined in Clause 7.2.1), or (ii) securing for SES a
coal resource project that is already in operation, a new coal chemical project or any
other project that is approved by the Board of Directors of SES (the “SES Board”), each
with a total investment of at least RMB1.5 billion (in this Agreement “RMB” shall mean the
legal currency of the PRC).

	 
	2.5	 	Failure of Issuance of Milestone Shares for Regulatory Reasons

	 
	 	 	In the event that the Milestone is achieved in accordance with the terms and conditions of
this Agreement but, pursuant to restriction or non-approval by any U.S.A governmental
agency or competent regulatory authority, (i) the issuance of the Milestone Shares to China
Energy is prevented from occurring or (ii) the ownership by China Energy of the Milestone
Shares is required to be divested, SES shall be responsible to seek qualified third parties
to purchase the right of China Energy to the Milestone Shares. In the event that such can
not be accomplished within twelve (12) months (commencing from the date of the action of
such U.S.A. governmental agency or competent regulatory authority preventing China Energy’s
ownership of the Milestone Shares), then SES shall compensate China Energy for the
Milestone Shares by making a payment in an amount equal to USD2.00 per share (the
“Settlement Price”) for each Milestone Share. Such payment may be made by SES to China
Energy in the form of cash or an equivalent amount of SES’s assets in the PRC. To avoid any
doubt, if SES has paid the compensation described above, ZJX or China Energy should not
further claim for the issuance of the Milestone Shares or make other claims under this
Clause 2.5.

	 
	2.6	 	Notwithstanding anything to the contrary in this Agreement, the number of Milestone Shares,
as well as the Threshold Price and Settlement Price for the Milestone Shares, shall be subject
to proportionate adjustment in the event of a change in the capital structure of SES,
including as a result of recapitalization, reclassification, stock split, reverse split,
consolidation, conversion, etc.

	 
	3.	 	Closing

	 
	 	 	Subject to other terms and conditions under this Agreement, the closing (the “Closing”) of
the payment of the Consideration by China Energy and the issuance of the Closing Shares
shall take place on a day (the “Closing Date”) within ten (10) business days after
satisfaction of all conditions precedent specified in Clause 4.

	 
	4.	 	Conditions Precedent

	 
	 	 	The consummation of the transactions for Closing shall be subject to the following
conditions precedent:

 

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	4.1	 	Representations and Warranties.

	 
	 	 	The representations and warranties by each Party contained in this Agreement shall be true
and correct as of the Closing Date in all material respects as though made at such date
(except to the extent that a representation and warranty speaks as of an earlier date, in
which case such representation and warranty shall be true as of such earlier date).

	 
	4.2	 	Incorporation of China Energy.

	 
	 	 	China Energy has been duly incorporated and has obtained all necessary approvals to operate
under the laws of Hong Kong.

	 
	4.3	 	Authorization and Approval.

	 	4.3.1	 	The transactions contemplated in this Agreement shall have been approved and
adopted by the stockholders of SES and China Energy.

	 
	 	4.3.2	 	The issuance of the New Shares shall have been duly authorized.

	 
	 	4.3.3	 	All other necessary third party consents and approvals for this Agreement
shall have been obtained.

	4.4	 	No Orders or Legal Proceedings.

	 
	 	 	There shall be no law, governmental order, or legal proceeding in effect or threatened
which prohibits or restricts the transactions contemplated by this Agreement or imposes any
restrictions on the Parties with respect thereto.

	 
	4.5	 	No Material Adverse Effect.

	 
	 	 	Since the execution of this Agreement, there shall have occurred no Material Adverse Effect
(as defined in Clause 5.1.6 below) with respect to ZJX, China Energy or SES.

	 
	4.6	 	Covenants and Agreements.

	 
	 	 	ZJX, China Energy and SES shall have performed in all material respects all covenants and
agreements required to be performed by them under this Agreement at, or prior to, the
Closing Date including, without limitation to, the appointment of the Escrow Agent.

	 
	4.7	 	Funds for Closing

	 
	 	 	Prior to Closing, China Energy shall provide, in favor of SES, a bank reference letter
issued by a reputable bank in HK evidencing that China Energy has the necessary funds to
perform the payment obligations under this Agreement, of which the form and the issuing
bank should be mutually agreed upon by the Parties. In addition, China Energy shall also
provide adequate materials evidencing that the funds are appropriately and legally
obtained.

	 
	5.	 	Representations and Warranties

	 
	5.1	 	General Representations and Warranties

	 
	 	 	Each of the Parties (the “Warranting Party”) shall represent and warrant to the other (the
“Warranted Party”) that:

	 	5.1.1	 	Organization, Good Standing, Qualification, Legally Bound and Authorization.

	 
	 	 	 	The Warranting Party has been duly incorporated and organized, and is validly
existing and in good standing under the laws of jurisdiction where it is
incorporated and is legally bound by the terms of this Agreement. The
Warranting Party has the corporate power and authority to (a) enter into and
perform this Agreement, or any other agreement or document necessary for the
performance of this Agreement, to (b) own and operate its properties and assets,
and to (c) carry on its business as currently conducted and as presently
proposed to be conducted.

 

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	 	5.1.2	 	Compliance with Laws; No Violations

	 
	 	 	 	The Warranting Party is not in violation or default of any provisions of its
Articles of Association and/or Bylaws, or other similar constituent document,
and to its knowledge, except for any violations that individually or in the
aggregate would have no material adverse impact on its business, it is in
compliance with all applicable statutes, laws, regulations and executive orders
of the PRC, Hong Kong, USA or other governmental bodies and agencies having
jurisdiction over its business or properties. It has not received any notice of
any violation of any such statute, law, regulation or order which has not been
remedied. The execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated hereby will not result in any such
violation or default, or be in conflict with or result in a violation or breach
of, with or without the passage of time or the giving of notice or both, the
Articles of Association and/or Bylaws, or other similar constituent document,
any judgment, order or decree of any court or arbitrator to which the Warranting
Party is a party or is subject, any agreement or contract of it, or, to its
knowledge, a violation of any statute, law, regulation or order, or an event
which results in the creation of any lien, charge or encumbrance upon any of its
assets.

	 
	 	5.1.3	 	Permits

	 
	 	 	 	Except as disclosed in the Schedule of Exceptions (attached hereto as
Appendix 1), the Warranting Party has obtained all franchises, permits,
licenses and any similar authority necessary for the conduct of its business as
now being conducted by it, the lack of which could materially and adversely
affect its business, properties or financial condition and believes it can
obtain, without undue burden or expense, any similar authority for the conduct
of its business as planned to be conducted. It is not in default in any
material respect under any of such franchises, permits, licenses or other
similar authority.

	 
	 	5.1.4	 	Consents and Third Party Approvals

	 
	 	 	 	Except as disclosed in the Schedule of Exceptions, the Warranting Party has
obtained all necessary consents and/or third party approvals to execute, deliver
and perform this Agreement.

	 
	 	5.1.5	 	Litigation

	 
	 	 	 	Except as disclosed in the Schedule of Exceptions, there is no action, suit,
proceeding, claim, arbitration or investigation pending (or, to its knowledge,
currently threatened) against the Warranting Party, its activities, properties
or assets or, to its knowledge, against any officer, director or employee of it
in connection with such officer’s, director’s or employee’s relationship with,
or actions taken on behalf of. The Warranting Party has no knowledge of or
belief that there is pending or threatened any claim or litigation against it
contesting its right to produce, manufacture, sell, use or offer any product,
process, method, substance, part or other material or service presently
produced, manufactured, sold, used or offered or planned to be produced,
manufacture, sold, used or offered by the Warranting Party. The Warranting Party
has no knowledge or belief that or there exists, or there is pending or planned,
any patent, invention, device, application or principle, which would materially
adversely affect the condition, financial or otherwise, or the operations of the
Warranting Party.

	 
	 	5.1.6	 	Absence of Material Adverse Effect and Other Changes

	 
	 	 	 	The Warranting Party knows of no information or fact or change of situation
which has or could reasonably be expected to have a Material Adverse Effect (as
defined below) on the financial condition, business or business
prospects of the Warranting Party or on the legally binding effect of this
Agreement on the Warranting Party, which has not been disclosed to the Warranted
Party.

 

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	 	 	 	For the purpose of this Agreement, a “Material Adverse Effect” shall mean that
with respect to any Party, any event, condition, circumstance, change, effect,
violation, inaccuracy or state of facts or other matter that (a) is, or would
reasonably be likely to be, adverse to the business, operations (including
results of operation), assets, liabilities or financial condition of such Party
in an amount, individually or in the aggregate, exceeding USD10 million, or (b)
impedes, or would reasonably be likely to impede, the ability of such Person to
complete the transactions contemplated herein, but, as to (a) and (b), shall
exclude any circumstance, change or effect resulting or arising from: (i) any
change in general economic conditions in the industries or markets in which the
Party operates (which changes, individually or in the aggregate, do not
disproportionately affect such Party, taken as a whole); (ii) seasonal
reductions in revenue and/or earnings of the Party in the ordinary course of
business (which seasonal reductions, individually or in the aggregate, do not
disproportionately affect such Party, taken as a whole); (iii) any adverse
change, event or effect on the global energy industry as a whole (which
changes, individually or in the aggregate, do not disproportionately affect such
Party, taken as a whole); (iv) national or international political conditions,
including any engagement in hostilities, whether or not pursuant to the
declaration of a national emergency or war, or the occurrence of any military or
terrorist attack (which conditions, individually or in the aggregate, do not
disproportionately affect such Party, taken as a whole); and (v) the entry into
or announcement of this Agreement, actions contemplated by this Agreement, or
the consummation of the transactions contemplated hereby.

	 
	 	5.1.7	 	Compliance with the Foreign Corrupt Practices Act

	 
	 	 	 	To the knowledge of the Warranting Party, neither itself nor any of its senior
management or directors has taken any action in violation of the United States
Foreign Corrupt Practices Act.

	5.2	 	Representation and Warranties of ZJX

	 
	 	 	ZJX hereby further represents and warrants to SES that:

	 	5.2.1	 	ZJX has the ability of coordinating public relationships and channels
necessary to consummate the transactions and fulfill the covenants under this
Agreement.

	5.3	 	Representations and Warranties of China Energy

	 
	 	 	China Energy hereby further represents and warrants to SES that:

	 	5.3.1	 	China Energy shall have the availability of adequate funds to consummate the
transactions under this Agreement.

	 
	 	5.3.2	 	China Energy is duly incorporated and organized, and is validly existing
under the laws of Hong Kong, and has the power and authority to enter into and perform
this Agreement and any other agreement to which China Energy is a party.

	5.4	 	Representation and Warranties of SES

	 
	 	 	SES hereby further represents and warrants to ZJX that:

 

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	 	5.4.1	 	Capitalization.

	 
	 	 	 	All the outstanding and issued Common Stock of SES are duly authorized and
validly issued, fully paid and non-assessable, and have been approved by all
requisite corporate and stockholder action. Except as shown on the
Schedule of Exceptions, there are no outstanding options, warrants, rights or
agreements for the purchase or acquisition from SES of any Common Stock or any
securities convertible into or ultimately exchangeable or exercisable for any
Common Stock. To avoid any doubt, as of March 30, 2011, SES had 48,449,512
issued and outstanding shares of Common Stock, par value USD0.01, outstanding
options to acquire 6,462,455 shares of Common Stock and 969,745 shares of Common
Stock reserved for future issuance pursuant to its incentive plan.

	 
	 	5.4.2	 	Intellectual Property

	 
	 	 	 	Except as otherwise disclosed in the Schedule of Exceptions, SES (a) has legally
valid rights to and ownership of all its intellectual property required for use
in connection with its business and (b) does not use any intellectual property
by contest of any other person and is not required to and does not make any
payments to others with respect thereto. Except as otherwise disclosed in the
Schedule of Exceptions, all of SES’s intellectual property are fully assignable
free and clear of any encumbrances. SES has in all material respects performed
all obligations required to be performed by it, and it is no in default in any
material respect under any contract relating to any of the foregoing. SES has
not received any notice to the effect (or is otherwise aware) that any
intellectual property or any use thereof by SES conflicts with or allegedly
conflicts with or infringes the rights of any third party.

	6.	 	Covenants between Signing and Closing

	 
	 	 	Commencing from the execution of this Agreement and before the Closing Date, each Party
shall use its reasonable endeavours to fulfill the following obligations:

	 
	6.1	 	conduct its respective business in the usual and ordinary course;

	 
	6.2	 	provide to the other Parties access to and information regarding its financial status,
executives, consultants and organizational relationships including but limited to that SES
shall provide ZJX and China Energy the financial information for the period between the
signing of this Agreement and the Closing Date;

	 
	6.3	 	obtain or assist in obtaining all necessary consents and approvals for the transactions
contemplated under this Agreement, including but not limited to all necessary regulatory
approvals;

	 
	6.4	 	respond or assist in responding to those claims, inquiries or litigations, if any, filed by
the stockholders of SES, China Energy or ZJX, in respect of the transactions contemplated
under this Agreement;

	 
	6.5	 	in the case of SES, ensure that all New Shares have been duly authorized and are validly
issued under all applicable laws and regulation; and

	 
	6.6	 	in the case of SES, ensure that all documents required by the Securities and Exchange
Commission of the United States (the “SEC”) for the issuance of the New Shares are duly filed.

	 
	7.	 	Post-Closing Covenants and Agreements

	 
	7.1	 	Corporate Governance

	 	7.1.1	 	As soon as practicable after the Closing Date, and until the date of (i) the
achievement of the Milestone; or (ii) the expiration of the Deadline, whichever
happens earlier, ZJX or China Energy shall have the right to appoint a Qualified
Managing Director (“QMD”) and his/her successor(s), who should be comprehensively
responsible for leading SES’s business in PRC. The qualification and employment terms
and conditions of such

 

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	 	 	 	QMD will be subject to the approval of the SES Board and such QMD shall agree to
follow all applicable policies and procedures of SES, and the roles and
responsibilities of such QMD are set out in Appendix 2 attached hereto. The
roles and responsibilities of the QMD shall exclude: all global SES U-GAS®
technology engineering, technology operations, technology licensing and other
technology development activities, and the manufacturing of any core specialized
gasification equipment related to such technologies.

	 
	 	7.1.2	 	As soon as practicable after the Closing Date, and until the date of (i) the
achievement of the Milestone; or (ii) the expiration of the Deadline, whichever
happens earlier, SES agrees to increase the size of the SES Board to eleven (11)
directors and the SES Board agrees to nominate four (4) individuals identified by
China Energy for service as directors on the SES Board. Upon the achievement of the
Milestone, but not before the third anniversary of the Closing Date, SES shall take
all reasonable actions to ensure that China Energy shall have the right to nominate a
number of individuals representing one more than half of the directors (i.e. a simple
majority) on the SES Board. For the avoidance of doubt, for so long as China Energy
directly or indirectly owns any New Shares, China Energy and ZJX shall take and cause
any and all action to be taken, including, without limitation, voting or consenting,
or causing the voting or consenting, of the New Shares so that seven (7) of the eleven
(11) directors on the Board are non-China Energy nominee directors; provided, however,
that this obligation shall terminate on either (i) the third anniversary of the
Closing Date, if the Milestone is achieved prior to that date, or (ii) the date on
which the Milestone is achieved, if such date is subsequent to the third anniversary
of the Closing Date. Election of such individuals identified by China Energy shall be
made by the stockholders of SES. Any person appointed or elected to the SES Board must
meet minimum criteria for service on the SES Board under applicable SES guidelines,
U.S. securities laws and the rules and regulations of the NASDAQ, as determined in the
reasonable discretion of the SES Board, and shall follow all applicable policies and
procedures of SES.

	 
	 	7.1.3	 	On or prior to the later to occur of the fifth anniversary of the Closing
Date or to the expiry date of the Deadline, China Energy shall not sell, assign or
transfer any shares of Common Stock issued to it under this Agreement, and the key
shareholders on the SES Board set forth in Appendix 3 herein shall not sell, assign or
transfer any shares of Common Stock held by them as of the Closing Date so long as
they remain on the SES Board. Notwithstanding this, the Parties agree that China
Energy and the aforementioned key shareholders shall not be subject to these
limitations after the six month anniversary of the achievement of the Milestone;
provided, however that, even if the Milestone is achieved, until the fifth anniversary
of the Closing Date, any sale, assignment or transfer of the Common Stock by China
Energy must be for a price greater than USD8.00 per share. China Energy also
acknowledges and agrees that any sale, assignment or transfer of shares of the Common
Stock must comply with all applicable U.S. laws (including applicable U.S. stock
exchange rules and regulations). China Energy further acknowledges and agrees that
its right to nominate directors pursuant to Clause 7.1.2 above shall be reduced by one
(1) director for every 10% reduction in ownership in SES pursuant to this Clause
7.1.3, provided, however, that China Energy shall have the right to nominate four (4)
directors as long as its ownership in SES is no less than 40%.

 

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	 	7.1.4	 	After the Closing Date, if SES proposes to issue any additional shares of
its Common Stock in (i) a public or private offering ; (ii) pursuant to its employee
and director stock incentive plans; or (iii) upon the exercise of any outstanding
securities convertible to, or exercisable for shares of Common Stock, China Energy acknowledges and agrees that its ownership in SES could be
diluted accordingly, however pursuant to Clause 2.2.2, SES shall issue directly
to China Energy an amount of New Shares which, when combined with the Closing
Shares, equals sixty percent (60.0%) of the issued and outstanding Common Stock
(including outstanding options or securities convertible to, or exercisable for
shares of Common Stock, and all Common Stock reserved for future issuance
pursuant to SES incentive plan) on a fully-diluted basis as of the date on which
the Milestone is achieved.

	 
	 	7.1.5	 	ZJX has the right to appoint a securities representative for China investor
relations and public communications for SES, and SES shall also appoint a separate
investor relations specialist (the “Investor Relations Specialist”), and both such
securities representative and the Investor Relations Specialist shall work
cooperatively together and develop a coordinated approach for investor relations and
public communications and report to the CEO of SES, and shall agree to follow all
applicable policies and procedures of SES. The qualification and employment terms and
conditions of such securities representative and the Investor Relation Specialist will
be subject to the approval of the SES Board.

	 
	 	7.1.6	 	Until the Deadline, except as permitted by this Agreement, none of ZJX,
China Energy or any of their affiliates, shall, without the prior written consent of
the disinterested SES Board, directly or indirectly, (a) effect or seek, offer or
propose (whether publicly or otherwise) to effect, or cause or participate in or in
any way assist any other person to effect or seek, offer or propose (whether publicly
or otherwise) to effect or participate in, (i) any acquisition of any securities or
rights to acquire any securities (or any other beneficial ownership thereof) or assets
of SES or any of its subsidiaries (provided that the foregoing shall not apply to any
acquisition of securities or assets under the terms hereof); (ii) any merger or other
business combination or tender or exchange offer involving SES or any of its
subsidiaries; (iii) any “solicitation” of “proxies” (as such terms are used in the
proxy rules of the SEC) or consents to vote with respect to any voting securities of
SES, or any communication exempted from the definition of “solicitation” by Rule
14a-1(l)(2)(iv) under the U.S. Securities Exchange Act of 1934, as amended (the
“Exchange Act”); (b) form, join or in any way participate in a “group” (as defined
under the Exchange Act) with respect to SES; (c) have any discussions or enter into
any arrangements, understandings or agreements (oral or written) with, or advise,
finance, assist or actively encourage, any third party with respect to any of the
matters set forth in this Clause 7.1.6, or make any investment in any other person
that engages, or offers or proposes to engage, in any of such matters; (d) take any
action which might cause or require SES, China Energy or ZJX and/or their affiliates
to make a public announcement regarding any of the types of matters set forth in this
Clause 7.1.6; or (e) disclose any intention, plan or arrangement relating to any of
the foregoing.

	 
	 	7.1.7	 	After the Closing Date, SES shall, within 60 days after receiving a written
request from China Energy, prepare and file with the SEC a registration statement on
Form S-3 relating to sales of the Closing Shares by China Energy provided that all
costs and expenses of SES relating to the preparation and filing of such registration
statement shall be borne by China Energy, however, all costs and expenses relating to
the first time preparation and filing of the registration statement with the SEC
should be borne by SES. If SES is unable to include the entire amount of the Closing
Shares on a registration statement on Form S-3 due to the rules and regulations of the
SEC, SES shall only be obligated to include up to the number of Closing Shares which
is permissible under the rules and regulations of the SEC.

 

10

 

	 	 	 	In addition, after the issuance of the Milestone Shares, SES shall, within 60
days after receiving a written request from China Energy, prepare and file with
the SEC a registration statement on Form S-3 relating to sales of the Milestone
Shares by China Energy provided that all costs and expenses of SES relating to
the preparation and filing of such registration statement shall be borne by
China Energy.

	 
	 	 	 	The rights of China Energy pursuant to this Clause 7.1.7 shall at all times be
subject to the restrictions on sale, assignment and transfer set forth in Clause
7.1.3.

	7.2	 	Other Post-Closing Covenants and Agreements

	 	7.2.1	 	ZJX will use its reasonable endeavours to create at least four Major Joint
Ventures (“MJVs”) in the major products that SES U-GAS® Technology makes possible and
that are most economical.

	 	7.2.1.1	 	Funding for each MJV will be approximately 20 billion RMB, and total
funding for the four MJVs will be approximately 80 billion RMB.

	 
	 	7.2.1.2	 	Each MJV will have equity from a strategic investor from the industry
for the relating product in the PRC (“Strategic Investor”) plus highly
favorable loans including interest-free facilities so as to ensure the
success of the MJV projects.

	 
	 	7.2.1.3	 	The first MJV would be for Synthetic Natural Gas (“SNG”) projects.

	 
	 	7.2.1.4	 	Other MJVs currently planned should include the following 3 areas:

	 	(a)	 	Methanol to Gasoline
(“MTG”) Projects;

	 
	 	(b)	 	Fertilizer Projects; and

	 
	 	(c)	 	Electric Power Projects.

	 	7.2.1.5	 	Each of the above MJVs is envisioned to be funded by the relevant
Strategic Investor plus bank financing to total 20 Billion RMB.

	 
	 	7.2.1.6	 	SES would be part owner of each MJV via a carry provided by the
Strategic Investor as part of SES’s development of and provision of
technology for the particular projects:

	 	(a)	 	SES’s carried ownership
is targeted at 35% of each MJV; and

	 
	 	(b)	 	Each project will be
fully funded by its respective Strategic Investor if
required by SES.

	 	7.2.1.7	 	ZJX will help SES work with the Strategic Investors to obtain long term
purchase commitments for the products of the respective MJVs mentioned
above (i.e. SNG, gasoline, fertilizers and electric power) after government
approval and prior to the start of construction of each such project.

	 	7.2.2	 	ZJX shall actively work with SES, to effectively communicate with current
stockholders of SES concerning the background and overview of the aforesaid projects.

	 
	 	7.2.3	 	SES and ZJX would also discuss and determine a long-term plan for SES’s
China operations to be listed on either the Mainland PRC markets or the Hong Kong
Stock Exchange in the future.

	 
	 	7.2.4	 	SES shall ensure, subject to the discretion and approval of the SES Board,
the Consideration net of cost and expenses, shall fully be applied to a selection of
the following items or projects:

 

11

 

	 	7.2.4.1	 	Payment of the costs and expenses relating to the first time filing and
preparation of the registration statement with the SEC as described in
Clause 7.1.7;

	 
	 	7.2.4.2	 	Incorporation of a PRC Headquarter of SES to consolidate the ownership
of investment projects of SES in PRC under one entity and enhance SES’s
presence in PRC and provide its working capital needs;

	 
	 	7.2.4.3	 	Investing in the expansion project of SES’s existing joint venture in
Zaozhuang PRC;

	 
	 	7.2.4.4	 	Investing to raise SES ownership interests in Phase I of existing SES’s
joint ventures in Yima, Henan (the “Yima Project”);

	 
	 	7.2.4.5	 	Acquiring an ownership interest in a coal mine in Yima that will provide
raw material coal to the Yima Project;

	 
	 	7.2.4.6	 	Investing in the Golden
Concord project (i.e. the SES-GCL (Inner
Mongolia) Coal Chemical Co., Ltd.) of SES located in Xilinhaote of Inner
Mongolia;

	 
	 	7.2.4.7	 	Other PRC projects that may be recommended to the SES Board from time to
time;

	 
	 	7.2.4.8	 	All capital and expense requirements for the operation and business of
SES in PRC.

	 	7.2.5	 	ZJX will use its reasonable endeavours to assist SES to obtain third party
funding (third party direct equity investment in projects or debt financing to the
projects) to (a) cover funding needs of the above projects not already satisfied by
the Consideration, (b) provide funding for SES to invest in Phase 2 and Phase 3 of the
Yima Project; (c) invest in strategic coal resources in China connected to SES
projects; and (d) provide funding for SES to invest in other new SES investment
projects in PRC not listed above and assist SES to obtain third party’s investment in
any of SES’s project in any other manner.

	7.3	 	Acquisition of China Energy

	 
	 	 	Within two (2) years after the Closing Date, ZJX shall directly or indirectly acquire no
less than 60% equity of China Energy, ZJX shall ensure that such acquisition shall be in
full compliance with the laws and regulation of PRC and Hong Kong, and all necessary
approvals and authorizations shall be obtained.

	 
	8.	 	SURVIVAL; TERMINATION

	 
	8.1	 	Survival

	 
	 	 	The representations and warranties of the Parties as set out in Clause 5 shall survive the
Closing Date until the second anniversary of the Closing Date after which no Party may make
a claim against the other Party for a breach of representations and warranties.

	 
	8.2	 	Termination

	 
	 	 	This Agreement may be terminated upon the occurrence of any of the following:

	 	8.2.1	 	by any Party if any governmental authority shall have issued an order,
decree or ruling enjoining or otherwise prohibiting the transactions contemplated by
this Agreement;

 

12

 

	 	8.2.2	 	by any Party, if the stockholder meeting of SES is called and the required
stockholder approval is not obtained;

	 
	 	8.2.3	 	by any Party, if there shall have been a breach of any other Party’s
covenants, agreements, representations or warranties set forth in this Agreement which
breach, either individually or in the aggregate, would result in the failure of any
Condition Precedent as set out in Clause 4;

	 
	 	8.2.4	 	by any Party, if the Closing Date does not occur within 150 days after the
signing of this Agreement, provided that such date can be extended by mutual agreement
in writing of the Parties to the extent that the Closing Date is delayed by any
investigation, review, approval or similar procedures required by any U.S.A
governmental agency or competent authority for the consummation of the transactions
under this Agreement, as long as SES has notified ZJX and China Energy of the
potential occurrence of such delay and has provided to ZJX and China Energy the
relevant evidence; or

	 
	 	8.2.5	 	at any time upon the mutual agreement of the Parties.

	9.	 	Confidentiality

	 
	 	 	Each Party recognises and affirms that any oral or written information exchanged between
the Parties with respect to the subject matter of this Agreement as well as any oral or
written information concerning U-GAS® technology disclosed or to be disclosed by SES to ZJX
and China Energy are strictly confidential. Each Party shall keep all such information in
strictest confidence and shall not disclose any information to any third party without the
prior written consent of the Party that provided such information, except if such
information is:

	 	(a)	 	made available to the public (but not as a result of unauthorised disclosure
into the public domain of such information by the Party receiving the information);

	 
	 	(b)	 	required to be disclosed by any applicable law, rule or regulation, provided
the disclosing Party should notify the other Parties of the disclosed content prior to
the disclosure; and/or

	 
	 	(c)	 	made available by any Party to its employees, officers, legal or financial
advisers or other in connection with any of the transactions contemplated under this
Agreement and that such employees, officers, legal and/or financial advisers be bound
by confidentiality obligations similar to those set out in this Clause 9.

	10.	 	Notices

	 
	 	 	All notices, claims, certificate, requests, demands and other communications under this
Agreement shall be made in writing and shall be delivered by hand or sent by telecopy, or
sent, postage prepaid, by reputable overnight courier services, and shall be deemed given
when so delivered by hand, or in the case of a telecopy, upon receipt of a confirmed
transmittal receipt, or if sent by overnight courier, five (5) calendar days after delivery
to or pickup by the overnight courier service to the Parties at the addresses (or at such
other address for a Party as shall be specified by like notice) shown on Appendix
4.

	 
	11.	 	Non-Competition

	 
	 	 	For as long as ZJX or China Energy holds shares of the Common Stock, directly or
indirectly, ZJX and China Energy shall not:

 

13

 

	 	(a)	 	directly or indirectly purchase or otherwise acquire any ownership interest
in and/or any assets of any third party other than SES which is engaging in activities
that are competing with SES U-GAS® coal gasification technology;

	 
	 	(b)	 	render any technical, financial, marketing or sales assistance to any third
party which is engaging in activities that are competing with SES U-GAS® coal
gasification technology; or

	 
	 	(c)	 	develop, market, provide financing for and/or sell a solution or other
technology product that competes with SES.

	12.	 	Miscellaneous

	 
	12.1	 	Successors and Assigns; Third-Party Beneficiaries. Unless otherwise agreed to by the
Parties, no Party shall assign any of its rights or obligations hereunder. Nothing in this
Agreement, express or implied, is intended to confer upon any party other than the Parties
hereto or their respective successors any rights or remedies.

	 
	12.2	 	Governing Law. This Agreement shall be governed by and construed under the laws of
Hong Kong, without regard to principles of conflicts of law thereunder.

	 
	12.3	 	Counterparts. 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.

	 
	12.4	 	Headings and Titles. Headings and titles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement.

	 
	12.5	 	Dispute Resolution.

	 	12.5.1	 	Any dispute, controversy or claim arising out of or relating to this Agreement, or
the interpretation, breach, termination or validity hereof, shall be resolved through
consultation. Such consultation shall begin immediately after one Party hereto has
delivered to the other Parties hereto a written request for such consultation. If
within 60 days following the date on which such notice is given the dispute cannot be
resolved, the dispute shall be submitted to arbitration upon the request of any Party
with notice to the other Parties.

	 
	 	12.5.2	 	The arbitration shall be conducted in Hong Kong under the auspices and rules of the
Hong Kong International Arbitration Center (the “HKIAC”). There shall be three
arbitrators. The claimant in the arbitration shall appoint one arbitrator, and the
respondent shall appoint one arbitrator. Such arbitrators shall be freely selected,
and the Parties shall not be limited in their selection to any prescribed list. The
two arbitrators shall select the third arbitrator. The Parties agree that none of such
arbitrators shall be a citizen of PRC, U.S.A, Taiwan China, Hong Kong or Macau China.
If either the claimants or the respondents do not appoint an arbitrator who has
consented to participate within 30 days after receiving the arbitration notice, the
relevant appointment shall be made by the HKIAC.

	 
	 	12.5.3	 	The arbitration proceedings shall be conducted both in English and Chinese. The
arbitration tribunal shall apply the Rules of the HKIAC in effect at the time of the
arbitration. However, if such rules are in conflict with the provisions of this Clause
12.5, including the provisions concerning the appointment of arbitrators, the
provisions of this Clause 12.5 shall prevail.

	 
	 	12.5.4	 	The arbitrators shall decide any dispute submitted by the Parties to the arbitration
strictly in accordance with the substantive law of Hong Kong and shall not apply any
other substantive law.

	 
	 	12.5.5	 	Each Party shall cooperate with the other in making full disclosure of and providing
complete access to all information and documents requested by
the other in connection with such arbitration proceedings, subject only to any
confidentiality obligations binding on such Party.

 

14

 

	 	12.5.6	 	The award of the arbitral tribunal shall be final and binding upon the disputing
Parties, and any prevailing Party may apply to a court of competent jurisdiction for
enforcement of such award.

	 
	 	12.5.7	 	Any Party shall be entitled to seek preliminary injunctive relief, if possible, from
a competent court of Hong Kong pending the constitution of the arbitral tribunal.

	12.6	 	Entire Agreement; Amendments and Waivers. This Agreement (including the Appendices
hereto) constitutes the full and entire understanding and agreement among the Parties with
regard to the subjects hereof and thereof. 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), only with the mutual written consent of all the Parties.

	 
	12.7	 	Force Majeure. If a Force Majeure occurs, to the extent that any contractual
obligation in this Agreement of any Party cannot be performed as a result of such event, such
contractual obligation shall be suspended while the Force Majeure subsists and the due date
for performance thereof shall be automatically extended, without penalty, for a period equal
to such suspension.

	 
	12.8	 	Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be excluded from this Agreement and
the balance of the Agreement shall be interpreted as if such provision were so excluded and
shall be enforceable in accordance with its terms.

	 
	12.9	 	Further Assurances. The Parties agree to execute such further instruments and to take
such further actions as may be reasonably necessary to carry out the intent of this Agreement.

	 
	12.10	 	Taxes and Costs. Each of the Parties shall pay its own taxes, costs and expenses
incidental to the negotiation, preparation and performance of this Agreement and the
transactions contemplated hereby and thereby, including, but not limited to, all applicable
taxes, the fees, expenses and disbursements of its investment bankers, accountants and counsel
and of securing third party consents and approvals required to be obtained by it.

	 
	12.11	 	This Agreement is written both in English and Chinese. Both versions shall have the same
effect in all aspects.

	 
	12.12	 	This Agreement shall become effective upon the execution of both the English and the Chinese
versions of this Agreement by the Parties hereto.

 

15

 

IN WITNESS OF, this Agreement has been signed by the Parties (or their duly authorized
representatives) on the date stated at the beginning of this Agreement.

	 	 	 	 	 
	On behalf of

Synthesis Energy Systems, Inc.

 	 	 
	/s/ Robert Rigdon
 	 	 
	 
	By: Robert Rigdon

 	 	 
	On behalf of

Zhongjixuan Investment Management Company Ltd.

 	 	 
	/s/ Feng Feng
 	 	 
	 	 	 
	By: Feng Feng 	 	 
	 
	On behalf of

China Energy Industry Holding Group Co., Limited

 	 	 
	/s/ Zhao Chuan Qi
 	 	 
	 	 	 
	By: Zhao Chuan Qi 	 	 
	 

 

16exv4w6

Exhibit 4.6

EXECUTION VERSION

SUPPLEMENTAL AGREEMENT TO

AMENDED AND RESTATED POOLING AND SERVICING AGREEMENT OF

NATIONAL CITY CREDIT CARD MASTER TRUST

October 26, 2010

     This Supplemental Agreement to the Amended and Restated Pooling and Servicing Agreement (this
“Agreement”) is made as of October 26, 2010 (the “Agreement Date”), by and between PNC BANK, N.A.,
a national banking association (“PNC”) as successor to National City Bank, as Seller and Servicer,
and BNY MELLON TRUST OF DELAWARE (formerly known as BNYM (Delaware) and The Bank of New York
(Delaware)), a Delaware banking corporation, as Trustee (the “Trustee”).

Recitals:

     WHEREAS National City Bank, as the original Seller and Servicer (“National City”) and The
Bank of New York, a New York banking corporation, as the original Trustee, entered into a Pooling
and Servicing Agreement, dated as of June 1, 1995, as amended and restated as of July 1, 2000 (as
amended and supplemented through the date hereof and as the same may be further amended,
supplemented or otherwise modified and in effect from time to time, the “Pooling and Servicing
Agreement”);

     WHEREAS, National City was merged with and into PNC, under the charter of PNC as approved
by the Office of the Comptroller of the Currency on November 7, 2009 (the “Merger Date”);

     WHEREAS, on the Merger Date, PNC assumed, as a matter of law, the rights and
obligations of the Seller and Servicer under the Pooling and Servicing Agreement; and

     WHEREAS, PNC and the Trustee desire to confirm PNC’s assumption of National City’s obligations
and rights as Seller and Servicer under the Pooling and Servicing Agreement.

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

     1. Defined Terms. Capitalized terms used and not defined herein shall have
the meaning ascribed to them in the Pooling and Servicing Agreement.

     2. Assumption of Obligations. Effective as of the Merger Date, PNC has assumed
the performance of every covenant and obligation, including the Seller’s obligations
under Section
7.04 of the Pooling and Servicing Agreement, and all of the rights, of the Seller and Servicer
under the Pooling and Servicing Agreement.

     3. Effective Date. As of the Agreement Date, the following conditions
have been satisfied:

 

 

	 	a.	 	counterparts of this Agreement have been duly executed by each of the parties
to this Agreement, and
	 
	 	b.	 	each of the conditions precedent described in Sections 7.02 and 8.02 of
the Pooling and Servicing Agreement has been satisfied.

     4. 
Effect of Agreement; Ratification.

	 	a.	 	On and after the Agreement Date, this Agreement shall be a part of the
Pooling and Servicing Agreement and each reference in the Pooling and Servicing
Agreement to “this Agreement” or “hereof,” “hereunder” or words of like import, and
each reference in any other Transaction Document to the Pooling and Servicing
Agreement shall mean and be a reference to the Pooling and Servicing Agreement as
supplemented hereby.
	 
	 	b.	 	Except as expressly amended hereby, the Pooling and Servicing Agreement
shall remain in full force and effect and is hereby ratified and confirmed by the
parties hereto.

     5. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAWS
PROVISIONS.

     6. Counterparts. This Agreement may be executed in any number of counterparts, and
by the parties hereto on separate counterparts, each of which shall be an original and all of
which taken together shall constitute one and the same agreement.

     7. Trustee Disclaimer. The Trustee shall not be responsible for the
validity or sufficiency of this Agreement, nor for the recitals contained
herein.

 

 

          IN WITNESS WHEREOF, the Seller, the Servicer and the Trustee have caused this
Agreement to be duly executed by their respective officers as of the day and year first above
written.

	 	 	 	 	 
	 	PNC BANK, N.A.,

as Seller and Servicer

 	 
	 	By:  	/s/ Andrew Widner
 	 
	 	 	Name:  	Andrew Widner 	 
	 	 	Title:  	V. P. & CFO Credit Card PNC 	 
	 
	 	BNY MELLON TRUST OF DELAWARE,

as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

          IN WITNESS WHEREOF, the Seller, the Servicer and the Trustee have caused this
Agreement to be duly executed by their respective officers as of the day and year first above
written.

	 	 	 	 	 
	 	PNC BANK, N.A.,

as Seller and Servicer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BNY MELLON TRUST OF DELAWARE,

as Trustee

 	 
	 	By:  	/s/
Kristine K. Gullo
 	 
	 	 	Name:  	Kristine K. Gullo 	 
	 	 	Title:  	Vice President

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