Document:

ex101.htm

 EXHIBIT 10.1

 

Residential Apartment Bulk Purchasing Agreement

Buyer: Hanzhong Municipal Public Security Bureau   (“Party A”)

Seller: Shaanxi Guangsha Investment and Development Group Co., Ltd.  (“Party B”)

Under the principle of high quality and favorable pricing from Party B, with individual consents and Party A’s lead, according to the related regulations under “CONTRACT LAW OF THE PEOPLE'S REPUBLIC OF CHINA” and the “LAW OF THE PEOPLES REPUBLIC OF CHINA ON ADMINISTRATION OF THE URBAN REAL ESTATE”, at equality, voluntary, and on the basis of consensus, Party A and Party B reached the following preliminary agreement with regard to the bulk purchase of the residential apartments:

Article 1 The Basis of the project under construction

The bulk-purchase target is located in Guangsha Mingzhu Beiyuan, which is classified for the usage as residential property, with 70 yeas’ of use right. (Land certificate: Han Shi Guo Yong (tu) Zi No. 4659).

Article 2 Brief description of the Party A bulk purchased residential apartment

1. According to the latest project plan, the location is the entire Tower C1 and Tower C3

2. Party A bulk purchased 224 units of residential apartments

3. All of Party A bulk purchased apartments are structured with two elevators and four units of apartments on each floor. Each Tower has 28 floors. The apartments comprise two models: GFA of 125 square meters and GFA of 135 square meters (to be confirmed by Party A and Party B). The floor height is 3 meters per floor.

Article 3 Confirmation of bulk purchasing price and area

	
1.  

	
The unit price of the apartments starts from 3,000/RMB per square meter (3,000RMB/Sq. Meter is the price for apartments on the first floor. The price increases by 25RMB/Sq. Meter per floor), the price agreed herein excludes the expenses related to designs out of the scope of the design standard)

	
2.  

	
Party B shall ensure the unit price of Party A’s bulk purchase is no more than the unit price of the bulk purchase from other parties

	
3.  

	
The total area of the bulk purchase is based on the calculation from the project construction plan. The actual area will be re-measured after the completion of the project construction in accordance with the state measurement standard. The final area shall be in line with the measurement results of the local House Administration Bureau

	
4.  

	
The total contract amount of the bulk purchase is approximately RMB 120 million  (including parking and heating installation fees)

 

  

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Article 4 Payment terms

	
1.  

	
Each apartment owner shall make RMB 100,000 initial payment within 10 days after the date of this agreement. Following the initial payment, each apartment owner shall make additional payment to make the aggregate payment equal to 50% of the total apartment price (The total price of each apartment is temporarily set at RMB 400,000) within two months after the date of this agreement. After the completion of the third floor of the apartment tower, each apartment owner shall make additional payment to make the aggregate payment equal to 70% of the total unit price. After the completion of the main body of the apartment tower, each apartment owner shall make additional payment to make the aggregate payment equal to 90% of the total unit price. The rest 10% payment will be cleared on the date of key-delivery. Party A shall be fully responsible for the project delay, rise of raw material prices, etc caused by the delayed payment as stipulated above

	
2.  

	
Party B shall only use the payment from Party A for the construction of the bulk purchased apartments. Party B is not allowed to use the payment from Party A for other business activities.

Article 5 Project delivery timeline

 

Party B shall complete the project designs, approvals, and engineering preparation works within three months after the date of this agreement. Party A shall, in its best efforts, to cooperate with Party B during the project preparation process and to reduce the related expenses to the largest extent. Party B shall complete and deliver the residential apartments herein to Party A within two and a half years of the date of this agreement; Party B shall also be responsible to help Party A obtain the property ownership certificate within half year following the project delivery. Party A shall actively cooperate with Party B in this regard.

 

Article 6 Liability for breach of contract

	
1.  

	
If Party B fail to complete the transaction (except the force majeure such as natural disaster, government policy, etc) or Party A fail to make the payment within the time frame stipulated in this agreement, the responsible party will assume the penalty at 0.1‰ of the total contract value per day.

	
2.  

	
Under the circumstance that Party A delay in making the purchase payments to Party B, Party A will assume the penalty at 0.1‰ of the total contract value per day.

Article 7 Additional agreement

	
1.   

	
Party A is prohibited from returning or exchanging the apartment (Apartments other than located in Tower C1 and Tower C3) after the execution of this agreement. If Party A return or exchange apartment without the written consent of Party B, Party A shall assume the penalty at 10% of the total contract value of this agreement.

	
3.  

	
If Party B cannot deliver all of the units of this bulk purchase at its own responsibility, or if Party B sells the contracted apartment units to other purchasers without the written consent of Party A, Party B will assume the penalty at 10% of the total contract value of this agreement.

  

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Article 8 Miscellaneous

	
1.  

	
The apartments covered in this bulk purchase agreement shall be equipped with central heating equipment. Party A and Party B will negotiate and sign separate agreement in this regard.

	
2.  

	
Party B shall provide an underground parking slot to each apartment covered in this bulk purchase agreement. Party A shall ensure that over 90% of the apartment owners will purchase parking slot. Party A and Party B will negotiate the price and sign separate agreement in this regard.

	
3.  

	
The purchase price in this agreement does not include the property management fee. The residents from Party A will bear the property management fee on their own.

	
4.  

	
If Party A intend to add additional facilities out of the equipment listed in the attachment of this agreement, both Parties will negotiate the related expenses in accordance with the market condition.

	
5.  

	
After moving in, Party A must comply with the administrative guidelines set by Party B’s property management company and implement the relative fees to be negotiated by both Parties.

Article 9 This agreement shall become effective immediately after being signed and stamped by both Parties.

Article 10 This agreement has four duplicates with equal legal effect, each party holds two copies.

Buyer (Party A)( Stamp) Hanzhong Municipal Public Security Bureau

Legal Representative (signature)

Seller (Party B)( Stamp) Shaanxi Guangsha Investment and Development Group Co., Ltd.

Legal Representative (signature)

Date:   May 28, 2011

Signing Address: Hantai District, Hanzhong city, Shaanxi province

 

 

 

 

 

3exhibit4_1-amendment.htm

Exhibit 4.1 

 

AMENDMENT NO. 1

Dated as of May 31, 2011

To

LOAN AGREEMENT

Dated as of August 18, 2009

This AMENDMENT NO. 1 (this “Amendment”) dated as of  May 31, 2011 is entered into between SCHIFF NUTRITION GROUP, INC., a Utah corporation, as Borrower, and the Lenders that are a party hereto, including U.S. BANK NATIONAL ASSOCIATION, in its capacity as a Lender and as administrative agent for the Lenders.  Capitalized terms used and not otherwise defined herein shall have the meanings ascribed thereto in the “Loan Agreement” referred to below.

 

PRELIMINARY STATEMENT.  Borrower and the Lenders have entered into a Loan Agreement dated as of August 18, 2009 (the “Loan Agreement”).  Borrower has entered into a letter of intent to purchase a division of Ganeden Biotech, Inc. with a purchase price of $40,000,000 (the “Ganeden Asset Purchase”).  Borrower has requested (1) that a modification be made to the Tangible Net Worth covenant set forth in the Loan Agreement and (2) that Lenders agree to the making a Loan for the full purchase price under the Ganeden Asset Purchase.

SECTION 1. Amendment to the Loan Agreement.  The parties hereto, effective the date hereof and subject to the satisfaction of the conditions precedent set forth in Section 3 hereof, agree that Section 5.01(o)(iii) of the Agreement with respect to Borrower’s Tangible Net Worth be amended to read as follows:

 

Tangible Net Worth.  Maintain a minimum Tangible Net Worth, measured as of the last day of each fiscal quarter, of not less than the sum of (i) the greater of eighty-five percent (85%) of Borrower’s Tangible Net Worth determined as of the closing of the Asset Purchase Agreement dated June 1, 2011 between Borrower and Ganeden Biotech, Inc. or $42,500,000, plus (ii) 50% of cumulative quarterly net income subsequent to that closing date, with no deduction for any quarterly net loss, plus (iii) 100% of the net cash proceeds from the issuance of equity securities subsequent to Closing if such proceeds from the issuance of equity securities are not intended and used to fund Acquisitions (subject to Section 5.02(l)).

 

SECTION 2. Consent.  Subject to the satisfaction of the conditions precedent set forth in Section 3 hereof, and notwithstanding the $25,000,000 limitation set forth in the definition of “Permitted Acquisition” in Section 101 of the Agreement, Lenders hereby consent to making a Loan in a principal amount up to $40,000,000 to equal the purchase price under the Ganeden Asset Purchase provided that the remaining requirements set forth in that definition are satisfied.  Nothing in this Amendment shall obligate the Lenders to provide a similar consent in future circumstances.

 

SECTION 3. Conditions Precedent.  This Amendment shall become effective upon receipt by the Lender of:

 

3.1 This Amendment No. 1 fully executed;

 

3.2 The attached Affirmation of Guaranties fully executed by Guarantors;

 

3.3 Reimbursement of all costs and expenses incurred by Agent in connection with this Amendment; and

 

3.4 The Ganeden Asset Purchase closes.

 

  

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SECTION 4. Covenants, Representations and Warranties of Borrower.

 

4.1 Upon the effectiveness of this Amendment, Borrower hereby reaffirms all covenants, representations and warranties made by it in the Loan Agreement as amended hereby and agrees that all such covenants, representations and warranties shall be deemed to have been re-made as of the effective date of this Amendment.

 

4.2 Borrower hereby represents and warrants that (i) this Amendment and the Loan Agreement as amended hereby each constitutes a legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with their respective terms and (ii) before and after giving effect to this Amendment, no Event of Default shall have occurred and then be continuing.

 

SECTION 5. Reference to and Effect on the Loan Agreement.

 

5.1 Upon the effectiveness of this Amendment, each reference in the Loan Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference to the Loan Agreement as amended hereby, and each reference to the Loan Agreement in any other document, instrument or agreement executed and/or delivered in connection with the Loan Agreement shall mean and be a reference to the Loan Agreement as amended hereby.

 

5.2 Except as specifically amended above, the Loan Agreement and all other Transaction Documents shall remain in full force and effect and are hereby ratified and confirmed.

 

5.3 The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy under the Transaction Documents, nor constitute a waiver of any provision contained therein, except as specifically set forth herein.

 

SECTION 6. Execution in Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument.

 

SECTION 7. Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of Utah.

 

SECTION 8. Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized as of the date first above written.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

[SIGNATURES ON NEXT PAGE]

 

  

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IN WITNESS WHEREOF, Borrower, the Agent and the Lenders have executed this Amendment as of the 31st day of May, 2011.

 

BORROWER:

	  	
SCHIFF NUTRITION GROUP, INC.,

a Utah corporation

 

	
By:

	
/s/  Joseph W. Baty

	  	
Name: Joseph W. Baty

	  	
Title: Executive Vice President and Chief Financial Officer

[Signature Page to Amendment No. 1]

  

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ADMINISTRATIVE AGENT AND LENDER:

	  	
U.S. BANK NATIONAL ASSOCIATION

 

	
By:

	
/s/  Adam Hill

	  	
Name: Adam Hill

	  	
Title:   Relationship Manager

 

 

[Signature Page to Amendment No. 1]

  

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LENDER:

	  	
BANK OF THE WEST

 

	
By:

	
/s/  Duc Duong

	  	
Name:    Duc Duong

	  	
Title:  Vice President

 

[Signature Page to Amendment No. 1]

  

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LENDER:

	  	
KEYBANK NATIONAL ASSOCIATION

 

	
By:

	
/s/  Ted Diven

	  	
Name:    Ted Diven

	  	
Title:  Commercial Banking RM, VP

[Signature Page to Amendment No. 1]

  

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LENDER:

	  	
JPMORGAN CHASE BANK, N.A.

 

	
By:

	
/s/  Robert Carpenter

	  	
Name:   Robert Carpenter

	  	
Title:  Authorized Officer

 

[Signature Page to Amendment No. 1]

  

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AFFIRMATION OF GUARANTIES

The undersigned hereby each (i) acknowledge and consent to the execution of that certain Amendment No. 1 to Loan Agreement (the “Amendment”) by and between Schiff Nutrition International, Inc., as Borrower, and the Lenders that are a party thereto, including U.S. Bank National Association, in its capacity as a Lender and as administrative agent for the Lenders, (ii) reaffirm the obligations to Lenders and Agent under the respective Continuing and Unconditional Guaranties dated August 18, 2009 (the “Guaranties”) made by each of the undersigned, and (iii) acknowledge and agree that such Guaranties remain in full force and effect, and such Guaranties are hereby ratified and affirmed.

Dated as of May 31, 2011.

Schiff Nutrition International, Inc., a

Delaware corporation

	
By:

	
/s/  Joseph W. Baty

	
Name:

	
Name: Joseph W. Baty

	
Title:

	
Title:  Executive Vice President and Chief Financial Officer

WNG Holdings (International) Ltd., a

Nevada corporation

	
By:

	
/s/  Joseph W. Baty

	
Name:

	
Name: Joseph W. Baty

	
Title:

	
Title:  Chief Financial Officer and Treasurer

Coppal Research, Inc., a Utah corporation

	
By:

	
/s/  Joseph W. Baty

	
Name:

	
Name: Joseph W. Baty

	
Title:

	
Title:  Executive Vice President and Chief Financial Officer

  

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