Document:

EXECUTION COPY

 

ADMINISTRATION AGREEMENT

 

between

 

GE EQUIPMENT MIDTICKET LLC, SERIES 2011-1,

as Issuer

 

and

 

GENERAL ELECTRIC CAPITAL CORPORATION,

as Administrator

 

Dated as of October 5, 2011

Administration Agreement

  

  

  

TABLE OF CONTENTS

	  	  	
Page

	  	  	  
	
1.

	
DUTIES OF THE ADMINISTRATOR

	
2

	  	  	  
	
2.

	
RECORDS

	
6

	  	  	  
	
3.

	
COMPENSATION

	
6

	  	  	  
	
4.

	
ADDITIONAL INFORMATION TO BE FURNISHED TO THE ISSUER

	
6

	  	  	  
	
5.

	
INDEPENDENCE OF THE ADMINISTRATOR

	
6

	  	  	  
	
6.

	
NO JOINT VENTURE

	
6

	  	  	  
	
7.

	
OTHER ACTIVITIES OF THE ADMINISTRATOR

	
7

	  	  	  
	
8.

	
TERM OF AGREEMENT; RESIGNATION AND REMOVAL OF THE ADMINISTRATOR

	
7

	  	  	  
	
9.

	
ACTION UPON TERMINATION, RESIGNATION OR REMOVAL

	
8

	  	  	  
	
10.

	
NOTICES

	
9

	  	  	  
	
11.

	
AMENDMENTS

	
9

	  	  	  
	
12.

	
SUCCESSORS AND ASSIGNS

	
9

	  	  	  
	
13.

	
GOVERNING LAW

	
10

	  	  	  
	
14.

	
OTHER INTERPRETIVE MATTERS

	
11

	  	  	  
	
15.

	
HEADINGS

	
11

	  	  	  
	
16.

	
COUNTERPARTS

	
11

	  	  	  
	
17.

	
SEVERABILITY

	
12

	  	  	  
	
18.

	
NOT APPLICABLE TO THE ADMINISTRATOR IN OTHER CAPACITIES

	
12

	  	  	  
	
19.

	
LIMITATION OF LIABILITY OF THE MANAGING MEMBER

	
12

	  	  	  
	
20.

	
INDEMNIFICATION

	
12

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ADMINISTRATION AGREEMENT dated as of October 5, 2011, between GE Equipment Midticket LLC, Series 2011-1, a Delaware limited liability company (the ”Issuer”), and General Electric Capital Corporation, a Delaware corporation, as administrator (the ”Administrator”).

 

RECITALS

 

WHEREAS, the Issuer is issuing 0.42939% Class A-1 Notes, 0.72% Class A-2 Notes, 1.00% Class A-3 Notes, 1.42%, Class A-4 Notes (together with the Class A-3 Notes, the Class A-2 Notes and the Class A-1 Notes, the “Class A Notes”), and 2.10% Class B Notes (the “Class B Notes,” and together with the Class A Notes, the “Notes”), pursuant to the Indenture, dated as of the date hereof (as amended and supplemented from time to time in accordance with the provisions thereof, the “Indenture”), between the Issuer and the Indenture Trustee (capitalized terms used herein and not otherwise defined herein are defined in the Indenture);

 

WHEREAS, the Issuer has entered into certain agreements in connection with the issuance of the Notes and of certain beneficial ownership interests of the Issuer, including: (i) a Receivable Purchase and Sale Agreement, dated as of the date hereof (as amended and supplemented from time to time, the “Purchase and Sale Agreement”), between the Issuer and CEF Equipment Holding L.L.C., a Delaware limited liability company, as seller (the “Transferor”), (ii) the Indenture and (iii) a Servicing Agreement, dated as of the date hereof (the “Servicing Agreement), between the Issuer and General Electric Capital Corporation, as servicer (in such capacity, the “Servicer”) (the Servicing Agreement, the Purchase and Sale Agreement and the Indenture, being hereinafter referred to collectively as the “Related Documents”);

 

WHEREAS, pursuant to the Related Documents, the Issuer is required to perform certain duties in connection with: (a) the Notes and the collateral therefor pledged pursuant to the Indenture (the “Collateral”) and (b) the ownership interests in the Issuer (the registered holders of such interests being referred to herein as the “Owners”);

 

WHEREAS, the Issuer desires to have the Administrator perform certain of the duties of the Issuer referred to in the preceding clause, and to provide such additional services consistent with this Agreement and the Related Documents as the Issuer may from time to time request; and

 

WHEREAS, the Administrator has the capacity to provide the services required hereby and is willing to perform such services for the Issuer on the terms set forth herein;

 

NOW, THEREFORE, in consideration of the mutual terms and covenants contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:

Administration Agreement

  

  

  

1.           Duties of the Administrator.

 

(a)          Duties with Respect to the Indenture.  The Administrator, on behalf of the Issuer, shall perform the administrative duties of the Issuer under the Indenture.  In addition, the Administrator, on behalf of the Issuer, shall consult with the Indenture Trustee regarding the duties of the Issuer and the Indenture Trustee under the Indenture.  The Administrator, on behalf of the Issuer, shall monitor the performance of the Issuer and shall advise the Issuer when action is necessary to comply with the Issuer’s duties under the Indenture.  The Administrator, on behalf of the Issuer, shall prepare for execution by the Issuer or shall cause the preparation by other appropriate Persons of all such documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the Issuer to prepare, file or deliver pursuant to the Indenture.  In furtherance of the foregoing, the Administrator, on behalf of the Issuer, shall take all appropriate action that is the duty of the Issuer to take pursuant to such documents, including, without limitation, such of the foregoing as are required with respect to the following matters (references in this Section are to sections of the Indenture):

 

(i)          the duty to cause the Note Register to be kept and to give the Indenture Trustee notice of any appointment of a new Note Registrar and the location, or change in location, of the Note Register (Section 2.4);

 

(ii)         the notification to the Indenture Trustee of the Payment Date on which the final installment of principal and interest on the Notes will be paid (Section 2.7);

 

(iii)        the preparation of or obtaining of the documents and instruments required for authentication of the Notes and delivery of the same to the Indenture Trustee (Section 2.2);

 

(iv)        the maintenance of an office at the Corporate Trust Office, for registration of transfer or exchange of Notes and where notices and demands to or upon the Issuer in respect of the Notes and the Indenture may be served (Section 3.2);

 

(v)         the duty to cause newly appointed Paying Agents, if any, to deliver to the Indenture Trustee the instrument specified in the Indenture regarding funds held in trust (Sections 3.3 and 6.16);

 

(vi)        the direction to the Paying Agents to pay all sums held in trust by such Paying Agents to the Indenture Trustee for purposes of obtaining the satisfaction and discharge of the Indenture (Sections 3.3 and 6.16);

 

(vii)       the observance and compliance by the Issuer in all material respects with (i) all laws applicable to it and (ii) all requisite and appropriate organizational and other formalities in the management of its business and affairs and the conduct of the transactions contemplated by the Indenture (Section 3.4);

 

(viii)      the preparation of all supplements, amendments and all writings, and such other actions, necessary or advisable to protect the Collateral in accordance with Section 3.5 of the Indenture (Section 3.5);

 

(ix)         the delivery of the Opinion of Counsel on the Closing Date and the annual delivery of Opinions of Counsel, in accordance with Section 3.6 of the Indenture, as to the Collateral, and the annual delivery of the Officers’ Certificate and certain other statements, in accordance with Section 3.9 of the Indenture, as to compliance with the Indenture (Sections 3.6 and 3.9);

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(x)         upon a consolidation or merger of the Issuer, the delivery to the Indenture Trustee of an Officer’s Certificate and an Opinion of Counsel in accordance with Section 3.11 of the Indenture (Section 3.11(l));

 

(xi)        the preparation, execution and filing of all forms and documents necessary to pay all taxes in accordance with Section 3.8 of the Indenture (Section 3.8);

 

(xii)       the preparation and obtaining of documents and instruments required for the release of the Issuer from its obligations under the Indenture (Section 3.12(b));

 

(xiii)      the delivery of notice to the Indenture Trustee and the Rating Agencies of each Event of Default and each default by the Servicer of its obligations under the Servicing Agreement and each default of the Transferor under the Purchase and Sale Agreement (Section 3.13);

 

(xiv)      the monitoring of the Issuer’s obligations as to the satisfaction and discharge of the Indenture and the preparation of an Officers’ Certificate and the obtaining of an Opinion of Counsel and an Independent Certificate relating thereto (Section 4.1);

 

(xv)       the compliance with any written directive of the Indenture Trustee to the Issuer with respect to the sale of the Collateral in a commercially reasonable manner if an Event of Default shall have occurred and be continuing (Section 5.2(a)(vi));

 

(xvi)      the delivery of a written demand to the Servicer to deliver the Receivable Files to the Indenture Trustee upon receipt by the Issuer of a written demand for the same from the Indenture Trustee (Section 5.2(a)(vii));

 

(xvii)     the preparation and delivery of notice to Noteholders of the removal of the Indenture Trustee and the appointment of a successor Indenture Trustee (Section 6.8);

 

(xviii)    the furnishing to the Indenture Trustee with the names and addresses of Noteholders during any period when the Indenture Trustee is not the Note Registrar (Section 7.1);

 

(xix)       the preparation, execution and filing with the Commission and the Indenture Trustee of the annual reports and of the information, documents and other reports required to be filed on a periodic basis with, and summaries thereof as may be required by rules and regulations prescribed by, the Commission or, if the Issuer is not required to file with the Commission periodic information, documents or reports, then the preparation, execution and filing with the Commission and the Indenture Trustee of such supplementary and periodic information, documents and reports as may be prescribed by the Commission and, in each case, the transmission of such summaries, as necessary, to the Noteholders (Section 7.3);

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(xx)        the opening of one or more accounts in the Issuer’s name, the preparation of Issuer Orders, Officers’ Certificates and Opinions of Counsel and all other actions necessary with respect to investment and reinvestment of funds in the Trust Accounts (Sections 8.2 and 8.6);

 

(xxi)       the preparation of an Issuer Request and Officers’ Certificate and the obtaining of an Opinion of Counsel and Independent Certificates, if necessary, for the release of the Collateral as defined in the Indenture (Sections 8.7 and 8.8);

 

(xxii)      the preparation of Issuer Orders and the obtaining of Opinions of Counsel with respect to the execution of supplemental indentures and the mailing to the Noteholders of notices with respect to such supplemental indentures (Sections 9.1, 9.2 and 9.3);

 

(xxiii)     the execution and delivery of new Notes conforming to any supplemental indenture (Section 9.5);

 

(xxiv)     the notification of Noteholders of redemption of the Notes (Section 10.2);

 

(xxv)      the preparation of all Officers’ Certificates, Opinions of Counsel and Independent Certificates with respect to any requests by the Issuer to the Indenture Trustee to take an action under the Indenture other than any request that (a) the Indenture Trustee authenticate the Notes or (b) the Indenture Trustee pay amounts due and payable to the Issuer under the Indenture to the Issuer’s assignee (Section 11.1(a));

 

(xxvi)     the preparation and delivery of Officers’ Certificates and the obtaining of Independent Certificates, if necessary, for the release of property from the lien of the Indenture (Section 11.1(b));

 

(xxvii)    the preparation and delivery to Noteholders and the Indenture Trustee of any agreements with respect to alternate payment and notice provisions (Section 11.6);

 

(xxviii)   the recording of the Indenture, if applicable (Section 11.13); and

 

(xxix)      the filing with the Commission of the appropriate forms necessary to suspend reporting requirements under the Securities Exchange Act (Section 7.4).

 

(b)         Duties with Respect to the Issuer.  (i)  The Administrator shall perform such calculations, and shall prepare for execution by the Issuer or shall cause the preparation by other appropriate Persons, of all such documents, reports, filings, instruments, certificates and opinions, as it shall be the duty of the Issuer, to perform, prepare, file or deliver pursuant to the Related Documents.  At the request of the Issuer, the Administrator shall take all appropriate action that it is the duty of the Issuer to take pursuant to the Related Documents.  Subject to Section 5 of this Agreement, and in accordance with the directions of the Issuer, the Administrator, on behalf of the Issuer, shall administer, perform or supervise the performance of such other activities in connection with the Collateral (including the Related Documents) as are not covered by any of the foregoing and as are expressly requested by the Issuer, and are reasonably within the capability of the Administrator.

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(ii)         Notwithstanding anything in this Agreement or the Related Documents to the contrary, the Administrator shall be responsible for promptly notifying the Issuer, in the event that any withholding tax is imposed on the Issuer’s payments (or allocations of income).  Any such notice shall specify the amount of any withholding tax required to be withheld pursuant to such provision.

 

(iii)        Notwithstanding anything in this Agreement or the Related Documents to the contrary, the Administrator shall be responsible for performance of the duties of the Managing Member set forth in Sections 8.2 and 8.3 of the Issuer Limited Liability Company Agreement with respect to, among other things, accounting and reports to members; provided, however, that the Managing Member shall retain responsibility for the distribution of the information necessary to enable each member to prepare its federal and state income tax returns.

 

(iv)        The Administrator shall satisfy its obligations with respect to clauses (ii) and (iii) by retaining, at the expense of the Issuer, a firm of independent certified public accountants (the “Accountants”) acceptable to the Issuer, which Accountants shall perform the obligations of the Administrator thereunder.  In connection with clause (ii), the Accountants will provide a letter in form and substance satisfactory to the Managing Member or the Issuer, as applicable, as to whether any tax withholding is then required and, if required, the procedures to be followed with respect thereto to comply with the requirements of the Code.  The Accountants shall be required to update the letter in each instance that any additional tax withholding is subsequently required or any previously required tax withholding shall no longer be required.

 

(v)         In carrying out the foregoing duties or any of its other obligations under this Agreement, the Administrator may enter into transactions with or otherwise deal with any of its Affiliates; provided, however, that the terms of any such transactions or dealings shall be in accordance with any directions received from the Issuer and shall be, in the Administrator’s opinion, no less favorable to the Issuer than would be available from unaffiliated parties.

 

(vi)        The Administrator hereby agrees to execute on behalf of the Issuer all such documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the Issuer to prepare, file or deliver pursuant to the Related Documents or otherwise by law.

 

(c)         Non-Ministerial Matters.  (i)  With respect to matters that in the reasonable judgment of the Administrator are non-ministerial, the Administrator shall not take any action unless within a reasonable time before the taking of such action the Administrator shall have notified the Managing Member or the Issuer, as applicable, of the proposed action and the Managing Member or the Issuer, as applicable, shall have consented or provided an alternative direction.  For the purpose of the preceding sentence, “non-ministerial matters” shall include, without limitation:

 

(A)      the amendment of or any supplement to the Indenture;

 

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(B)       the initiation of any claim or lawsuit by the Issuer and the compromise of any action, claim or lawsuit brought by or against the Issuer (other than in connection with the collection of the Receivables);

 

(C)       the amendment, change or modification of the Related Documents;

 

(D)       the appointment of successor Note Registrars, successor Paying Agents and successor Indenture Trustees pursuant to the Indenture or the appointment of successor Administrators or successor Servicers, or the consent to the assignment by the Note Registrar, Paying Agent or Indenture Trustee of its obligations under the Indenture; and

 

(E)        the removal of the Indenture Trustee.

 

(ii)         Notwithstanding anything to the contrary in this Agreement, the Administrator shall not be obligated to, and shall not: (x) make any payments to the Noteholders under the Related Documents or (y) take any other action that the Issuer directs the Administrator not to take on its behalf.

 

2.           Records.  The Administrator shall maintain appropriate books of account and records relating to services performed hereunder, which books of account and records shall be accessible for inspection by the Issuer or its designees, at any time during normal business hours.

 

3.           Compensation.  As compensation for the performance of the Administrator’s obligations under this Agreement and as reimbursement for its expenses related thereto, the Administrator shall be entitled to $3,000 per annum, 1/12 of which is payable in arrears on each Payment Date, which payment shall be solely an obligation of the Issuer.

 

4.           Additional Information to be Furnished to the Issuer.  The Administrator shall furnish to the Issuer from time to time such additional information regarding the Collateral as the Issuer shall reasonably request.

 

5.           Independence of the Administrator.  For all purposes of this Agreement, the Administrator shall be an independent contractor and shall not be subject to the supervision of the Issuer with respect to the manner in which it accomplishes the performance of its obligations hereunder.  Unless expressly authorized by the Issuer, the Administrator shall have no authority to act for or represent the Issuer in any way (other than as permitted hereunder) and shall not otherwise be deemed an agent of the Issuer.

 

6.           No Joint Venture.  Nothing contained in this Agreement: (i) shall constitute the Administrator and the Issuer as members of any partnership, joint venture, association, syndicate, unincorporated business or other separate entity, (ii) shall be construed to impose any liability as such on any of them or (iii) shall be deemed to confer on any of them any express, implied or apparent authority to incur any obligation or liability on behalf of the others.

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7.           Other Activities of the Administrator.  Nothing herein shall prevent the Administrator or its Affiliates from engaging in other businesses or, in their sole discretion, from acting in a similar capacity as an administrator for any other Person even though such Person may engage in business activities similar to those of the Issuer.

 

8.           Term of Agreement; Resignation and Removal of the Administrator.  (a)  This Agreement shall continue in force until the dissolution of the Issuer, upon which event this Agreement shall automatically terminate.

 

(b)         Subject to Section 8(g), the Administrator may resign its duties hereunder by providing the Issuer and the Servicer with at least sixty (60) days’ prior written notice.

 

(c)         Subject to Section 8(e), the Issuer may remove the Administrator without cause by providing the Administrator and the Servicer with at least sixty (60) days’ prior written notice.

 

(d)         Subject to Section 8(e), at the sole option of the Issuer, the Administrator may be removed immediately upon written notice of termination from the Issuer to the Administrator and the Servicer if any of the following events shall occur:

 

(i)          the Administrator shall default in the performance of any of its duties under this Agreement and, after notice of such default, shall not cure such default within ten (10) days (or, if such default cannot be cured in such time, shall not give within ten (10) days such assurance of cure as shall be reasonably satisfactory to the Issuer);

 

(ii)         a court having jurisdiction in the premises shall enter a decree or order for relief, and such decree or order shall not have been vacated within sixty (60) days, in respect of the Administrator in any involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect or appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for the Administrator or any substantial part of its property or order the winding-up or liquidation of its affairs; or

 

(iii)        the Administrator shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator or similar official for the Administrator or any substantial part of its property, shall consent to the taking of possession by any such official of any substantial part of its property, shall make any general assignment for the benefit of creditors or shall fail generally to pay its debts as they become due.

 

The Administrator agrees that if any of the events specified in clauses (ii) or (iii) of this subsection shall occur, it shall give written notice thereof to the Issuer, the Servicer and the Indenture Trustee within seven (7) days after the occurrence of such event.

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(e)         Upon the Administrator’s receipt of notice of termination, pursuant to Sections 8(c) or (d), or the Administrator’s resignation in accordance with this Agreement, the predecessor Administrator shall continue to perform its functions as Administrator under this Agreement, in the case of termination, only until the date specified in such termination notice or, if no such date is specified in a notice of termination, until receipt of such notice and, in the case of resignation, until the later of: (x) the date forty-five (45) days from the delivery to the Issuer, the Indenture Trustee and the Servicer of written notice of such resignation (or written confirmation of such notice) in accordance with this Agreement and (y) the date upon which the predecessor Administrator shall become unable to act as Administrator, as specified in the notice of resignation and accompanying Opinion of Counsel.  In the event of the Administrator’s termination hereunder, the Issuer shall appoint a successor Administrator, and the successor Administrator shall accept its appointment by a written assumption.

 

(f)          Upon appointment, the successor Administrator shall be the successor in all respects to the predecessor Administrator and shall be subject to all the responsibilities, duties and liabilities arising thereafter relating thereto placed on the predecessor Administrator and shall be entitled to the compensation specified in Section 3 and all the rights granted to the predecessor Administrator by the terms and provisions of this Agreement.

 

(g)         No resignation or removal of the Administrator pursuant to this Section shall be effective until: (i) a successor Administrator shall have been appointed by the Issuer and (ii) such successor Administrator shall have agreed in writing to be bound by the terms of this Agreement in the same manner as the Administrator is bound hereunder.

 

(h)         The appointment of any successor Administrator shall be effective only after satisfaction of the Rating Agency Condition with respect to the proposed appointment.

 

(i)           The Administrator or the Issuer, as the case may be, shall provide to the Indenture Trustee a copy of all notices required to be delivered under this Article 8.

 

9.           Action upon Termination, Resignation or Removal.  Promptly upon the effective date of termination of this Agreement pursuant to Section 8(a), or the resignation or removal of the Administrator pursuant to Section 8(b) or (c), respectively, the Administrator shall be entitled to be paid all fees and reimbursable expenses accruing to it to the date of such termination, resignation or removal.  The Administrator shall forthwith upon such termination pursuant to Section 8(a) deliver to the Issuer all property and documents of or relating to the Collateral then in the custody of the Administrator.  In the event of the resignation or removal of the Administrator pursuant to Section 8(b) or (c), respectively, the Administrator shall cooperate with the Issuer and the Indenture Trustee and take all reasonable steps requested to assist the Issuer and the Indenture Trustee in making an orderly transfer of the duties of the Administrator.

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10.         Notices.  Any notice, report or other communication given hereunder shall be in writing and addressed as follows:

 

(a)          if to the Issuer, to:

GE Equipment Midticket LLC, Series 2011-1

c/o General Electric Capital Corporation

10 Riverview Drive

Danbury, Connecticut 06810

Attention: Capital Markets Operations

 

(b)          if to the Administrator, to:

 

General Electric Capital Corporation,

as Administrator

201 Merritt 7

Norwalk, Connecticut 06851

Attention: General Counsel

Telephone:     (203) 229-5000

Facsimile:      (203) 956-4296

(c)          if to the Indenture Trustee, to:

 

Deutsche Bank Trust Company Americas

60 Wall Street, 26th Floor,

NYC 60-2606, New York, NY 10005,

Attention: Structured Finance Services/Trust and Securities Services—Louis Bodi

 

or to such other address as any party shall have provided to the other parties in writing.  Any notice required to be in writing hereunder shall be deemed given if such notice is mailed by certified mail, postage prepaid, or hand-delivered to the address of such party as provided above.

 

11.          Amendments.  This Agreement may be amended from time to time by a written amendment duly executed and delivered by the Issuer and the Administrator.  Promptly after the execution of any such amendment (or, in the case of a Rating Agency, ten (10) days prior thereto), the Administrator shall furnish written notification of the substance of such amendment or consent to each Noteholder and each Rating Agency.

 

12.          Successors and Assigns.  This Agreement may not be assigned by the Administrator unless such assignment is previously consented to in writing by the Issuer and subject to the satisfaction of the Rating Agency Condition in respect thereof.  An assignment with such consent and satisfaction, if accepted by the assignee, shall bind the assignee hereunder in the same manner as the Administrator is bound hereunder. Notwithstanding the foregoing, this Agreement may be assigned by the Administrator without the consent of the Issuer to a corporation or other organization that is a successor (by merger, consolidation or purchase of assets) to the Administrator, provided that such successor organization executes and delivers to the Issuer, an agreement in which such corporation or other organization agrees to be bound hereunder by the terms of said assignment in the same manner as the Administrator is bound hereunder.  Subject to the foregoing, this Agreement shall bind any successors or assigns of the parties hereto.

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13.         Governing Law.  GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL.  (a)  THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL IN ALL RESPECTS, INCLUDING ALL 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 (INCLUDING SECTIONS 5-1401(1) AND 5-1402 OF THE GENERAL OBLIGATIONS LAWS, BUT WITHOUT REGARD TO ANY OTHER CONFLICT OF LAW PROVISIONS THEREOF) AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

(b)         EACH PARTY HERETO HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THEM PERTAINING TO THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT; PROVIDED, THAT EACH PARTY HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE BOROUGH OF MANHATTAN IN NEW YORK CITY; PROVIDED, FURTHER, THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE ANY OF THE PARTIES FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF SUCH PARTY.  EACH PARTY HERETO SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH PARTY HERETO HEREBY WAIVES ANY OBJECTION THAT SUCH PARTY MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.  EACH PARTY HERETO HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH PARTY AT ITS ADDRESS DETERMINED IN ACCORDANCE WITH SECTION 10 AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH PARTY’S ACTUAL RECEIPT THEREOF OR THREE DAYS AFTER DEPOSIT IN THE UNITED STATES MAIL, PROPER POSTAGE PREPAID.  NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

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(c)          BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS.  THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

14.         Other Interpretive Matters.  All terms defined directly or by incorporation in this Agreement shall have the defined meanings when used in any document delivered pursuant thereto unless otherwise defined therein.  For purposes of this Agreement, unless the context otherwise requires:  (a) accounting terms not otherwise defined herein and accounting terms partly defined herein to the extent not defined, shall have the respective meanings given to them under generally accepted accounting principles; and unless otherwise provided, references to any month, quarter or year refer to a fiscal month, quarter or year as determined in accordance with the GE Capital fiscal calendar; (b) references to any amount as on deposit or outstanding on any particular date means such amount at the close of business on such day; (c) the words “hereof,” “herein” and “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular provision of this Agreement; (d) references to any Section, Schedule or Exhibit are references to Sections, Schedules and Exhibits in or to this Agreement, and references to any paragraph, subsection, clause or other subdivision within any Section or definition refer to such paragraph, subsection, clause or other subdivision of such Section or definition; (e) the term “including” means “including without limitation”; (f) references to any law or regulation refer to that law or regulation as amended from time to time and include any successor law or regulation; (g) references to any agreement refer to that agreement as from time to time amended, restated or supplemented or as the terms of such agreement are waived or modified in accordance with its terms; (h) references to any Person include that Person’s successors and assigns; and (i) headings are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision hereof.

 

15.         Headings.  The section headings hereof have been inserted for convenience of reference only and shall not be construed to affect the meaning, construction or effect of this Agreement.

 

16.         Counterparts.  This Agreement may be executed in counterparts, all of which when so executed shall together constitute but one and the same agreement.

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17.         Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

18.         Not Applicable to the Administrator in Other Capacities.  Nothing in this Agreement shall affect any obligation that the Administrator may have in any other capacity.

 

19.         Limitation of Liability of the Managing Member.  Notwithstanding anything contained herein to the contrary, this instrument has been countersigned by CEF Equipment Holding, L.L.C., not in its individual capacity but solely in its capacity as the Managing Member of the Issuer, and in no event shall CEF Equipment Holding, L.L.C., in its individual capacity, or any beneficial owner of the Issuer have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder, as to all of which recourse shall be had solely to the assets of the Issuer.

 

20.         Indemnification.  The Administrator shall indemnify the Issuer (and its officers, directors, employees and agents) for, and hold them harmless against, any losses, liability or expense, including attorneys’ fees reasonably incurred by them, incurred without negligence or bad faith on their part, arising out of or in connection with: (i) actions taken by either of them pursuant to instructions given by the Administrator pursuant to this Agreement or (ii) the failure of the Administrator to perform its obligations hereunder.  The indemnities contained in this Section shall survive the termination of this Agreement and the resignation or removal of the Administrator or the Issuer.

 

[signature page follows]

Administration Agreement

  

-12-

  

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

	
GE EQUIPMENT MIDTICKET LLC,

	 
	
SERIES 2011-1

	 
	  	  	 
	
By:

	
CEF Equipment Holding, L.L.C.,

	 
	  	
its Managing Member

	 
	  	  	 
	
By:

	  	 
	
Name:

	 
	
Title:

	 
	  	  	 
	
GENERAL ELECTRIC CAPITAL CORPORATION, as Administrator

	 
	  	  	 
	
By:

	  	 
	
Name:

	 
	
Title:

	 

	
Accepted and agreed:

	  
	
CEF EQUIPMENT HOLDING, L.L.C.,

	
not in its individual capacity but

	
solely as Managing Member under

	
the Issuer Limited Liability

	
Company Agreement

	  
	
By:

	  
	
Name:

	
Title:

Administration Agreement

  

S-1SHARE PURCHASE AGREEMENT

This SHARE PURCHASE AGREEMENT (“Agreement”) is made and entered into as of the 22nd day of September, 2011 by and among China LianDi Energy Resources Engineering Technology Limited, a corporation organized under the laws of the British Virgin Islands (hereinafter referred to “BVI Law”) having registered office at P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands (hereinafter referred to “the Seller”), SJ Asia Pacific Limited, a corporation organized under the BVI Law having registered office at P.O. Box 146, Road Town, Tortola, British Virgin Islands (hereinafter referred to as “the Buyer”), and Zuo Jianzhong, a CEO of the Seller, (hereinafter referred to “Zuo”).  The Seller or the Buyer sometimes is referred to as “Party” and collectively as “Parties”.

RECITALS

A.           The Seller is the owner of 5,400,000 outstanding ordinary shares of LianDi Clean Technology Inc., a corporation organized under the laws of the State of Nevada, (hereinafter referred to “The Company”).

B.           The Buyer desires to purchase from the Seller, and the Seller desires to sell to the Buyer, all of the said 5,400,000 shares held by The Seller.

NOW, THEREFORE, in consideration of the mutual promises, representations, warranties, covenants and agreements contained herein, the Parties and Zuo, intending to be legally bound, hereby agree as follows:

	
Article 1 

	
Sales and Purchase of Shares

	
1.1

	
The Parties agree that the Seller sells to the Buyer and the Buyer purchases from the Seller 5,400,000 outstanding ordinary shares of 10,684,660 outstanding ordinary shares of the Company held by the Seller (hereinafter referred to as “Shares”) at the total price of US Dollars 25,920,000 (US$4.8 per share) (such total price is hereinafter referred to as “Purchase Price” and this transfer of Shares is hereinafter referred to as “Transaction”).

	
1.2

	
The Purchase Price may not be modified unless agreed in writing by the Parties.

 

  

1 / 14

  

 

	
1.3

	
All taxes imposed with respect to the Transaction shall be borne by the Seller.

	
Article 2 

	
Closing

 

	
2.1

	
The closing of the Transaction (“Closing”) shall take place at Tokyo, Japan on September 27 , 2011(“Closing Date”).

	
2.2

	
On the Closing Date, the Seller shall transfer the Shares to the Buyer . In connection with the Transaction, the Seller shall apply for the registration of transfer of the Shares from the Seller to the Buyer on the Closing Date. Further, the Seller and Zuo shall cause the Company to provide the necessary cooperation in such registration of transfer of the Shares.

	
2.3

	
The Seller shall deliver to the Buyer a certificate for the application of transfer of the Shares by September 29, 2011.

  

	
2.4

	
On the Closing Date, the Buyer shall make arrangement for the payment of the Purchase Price by bank transfer to the Seller’s bank account designated below.  US$7,517,472.60 of The Purchase Price shall be paid in US Dollars and the remaining US$18,402,597.40 of the Purchase Price shall be converted into Japanese Yen 1,417,000,000 based on the exchange rate on September 13, 2011 and remitted to the following the Seller’s bank account unless otherwise agreed between the Parties.  Costs for the remittance shall be borne by the Buyer.

	 	
(1)

	
Bank account information for the transfer in Japanese Yen

 

	
Bank name

	
:

	
Mizuho bank(SWIFT code; MHBKJPJT)

	
Branch

	
:

	
KABUTOCHO Branch

	
Branch Code

	
:

	
027

	
Branch Address

	
:

	
4-3 Nipponbashi - Kabuto-cho, Chuo-ku, Tokyo 103-0026 JP

	
Account Number

	
:

	
2134871

	
Account Name

	
:

	
CHINA LIANDI ENERGY RESOURCES ENGINEERING TECHNOLOGY LIMITED

 

	 	
(2)

	
Bank account information for the transfer in US Dollar

 

	
Bank Name:

	  	
The Hong Kong and Shanghai Banking Corporation Limited

	
Bank Address:

	  	
Lever 10, HSBC Main building

	  	  	
1 Queen's Road Central, Hong Kong

	
Swift Code:

	  	
HSBCHKHHHKH

	  	  	
Account Number: 848-141891-838

	
Account Name:

	  	
China Liandi Energy Resources Engineering Technology Limited

	
Company Address:

	  	
Unit 1103, 11/F., Tower Two, Lippo Centre

	  	  	
89 Queensway, Admiralty, Hong Kong

 

  

2 / 14

  

 

	
2.5

	
Notwithstanding the preceding clause, the Seller shall extend the due date of the payment to October 17, 2011 for the payment of US$18,402,597.40 (Japanese Yen 1,417,000,000) of the Purchase Price by the Buyer.

	
2.6

	
Upon the completion of the procedures as set forth in this Article, the Transaction is fully completed.

	
Article 3 

	
Conditions Precedent

	
3.1

	
The obligation of the Seller under this Agreement shall be subject to the fulfillment as of the Closing Date of the following conditions:

	
  

	
(i)

	
the representations and warranties of the Buyer set forth in Article 4 shall be true and correct as of the Closing Date and the date of this Agreement; and

	
  

	
(ii)

	
all procedures required for the Transaction under the laws and other internal rules of the Buyer shall have been completed.

	
3.2

	
The obligation of the Buyer under this Agreement shall be subject to the fulfillment as of the Closing Date of the following conditions:

	
  

	
 (i)

	
the representations and warranties of the Seller set forth in Article 5 shall be true and correct as of the Closing Date and the date of this Agreement;

	
  

	
 (ii)

	
the number of outstanding shares of the Company is the total of 36,444,850 (ordinary shares and preferred shares), and The Seller solely, lawfully and effectively owns 10,684,660 of such ordinary shares;

	
  

	
 (iii)

	
during the period from the date of this Agreement to the Closing Date there shall not have occurred any events which would likely to have a material adverse effect on the value of the Transaction;

	
  

	
 (iv)

	
all procedures required for the Transaction under the laws and other internal rules of the Seller shall have been completed;

 

  

3 / 14

  

 

	
  

	
 (v)

	
all governmental approvals, consents or filings required for the Transaction shall have been obtained or completed;

	
  

	
 (vi)

	
subscription agreement for the newly issued ordinary shares of SJI Inc. shall have been effectively executed by and among SJI Inc.,  Zuo, and The Seller; and

	 	
(vii)

	
all procedures required for the Transaction under the laws and other internal rules of the Company shall have been completed.

	
Article 4 

	
Representations and Warranties of the Buyer

	
4.1

	
The Buyer hereby represents and warrants to The Seller that the following shall be true and correct as of the Closing Date and the date of this Agreement:

	
  

	
 (i)

	
the Buyer is a corporation duly organized, validly existing and in good standing under the BVI Laws, and has all requisite power and authority to execute the Agreement and to perform its obligations hereunder;

	
  

	
 (ii)

	
with respect to the execution and performance of this Agreement, the Buyer is in conformity with laws, government orders, official  notices, rules, orders, ordinances, guidelines and other regulations (“Laws and Ordinances”) or internal rules of the Buyer and has completed all procedures required under the same;

	
  

	
 (iii)

	
the Buyer has obtained and completed all governmental licenses, approvals, consents, filings and other legal procedures required for the execution and performance of this Agreement, and neither the execution nor the performance of this Agreement by the Buyer will violate, breach or be in conflict with any administrative order issued by any governmental authorities;

	
  

	
 (iv)

	
neither the execution nor the performance of this Agreement by the Buyer will violate, breach or be in conflict with any judgment, ruling, order, judicial compromise or other decisions made by courts, arbitrators, arbitral institutions, other judicial institutions and self-regulatory organizations;

	
  

	
 (v)

	
no agreements which prevent the performance of the Buyer’s obligations hereunder have been executed between the Buyer and any third party; and

	 	
(vi)

	
there has not been any facts, with respect to the business, assets, operation and financial situation of the Buyer, which would likely to have a material adverse effect on the performance of obligations hereunder. The Buyer especially represents and warrants that the Buyer has the capacity to pay the Purchase Price to the Seller.

 

  

4 / 14

  

 

	
Article 5 

	
Representations and Warranties of the Seller and Zuo

5.1 The Seller and Zuo hereby jointly and severally represent and warrant to the Buyer that the following shall be true and correct as of the Closing Date and the date of this Agreement:

	
  

	
(i)

	
the Seller is a corporation duly organized, validly existing and in good standing under the BVI Laws, and has all requisite power and authority to execute the Agreement and to perform its obligations hereunder;

	
  

	
(ii)

	
with respect to the execution and performance of this Agreement, the Seller is in conformity with laws and ordinances or internal rules of the Seller and has completed all procedures required under the same;

	
  

	
(iii)

	
the Seller has obtained and completed all governmental licenses, approvals, consents, filings and other legal procedures required for the execution and performance of this Agreement, and has caused the Company obtained and completed all governmental licenses, approvals, consents, filings and other legal procedures required for the execution and performance of this Agreement, and neither the execution nor the performance of this Agreement by the Seller will violate, breach or be in conflict with any administrative order issued by any governmental authorities;

	
  

	
(iv)

	
neither the execution or the performance of this Agreement by the Seller will violate, breach or be in conflict with any judgment, ruling, order, judicial compromise or other decisions made by courts, arbitrators, arbitral institutions, other judicial institutions and self-regulatory organizations;

	
  

	
(v)

	
no agreements which prevent the performance of obligations hereunder, including but not limited to an agreement by which other shareholders or creditors of the Company can bring damage claim against the Company for the execution or the performance of the Agreement, have been executed between the Seller or Zuo, and any third party;

 

  

5 / 14

  

 

	
  

	
 (vi)

	
the number of outstanding stock of the Company under its articles of incorporation is the total of 36,444,850 (ordinary shares and preferred shares), and the shares of the Company are free of preemptive rights, stock acquisition rights, convertible bonds, other securities convertible to or exchangeable for the Company’s shares, warrants, rights to purchase or otherwise acquire shares, or options or any other rights, except as provided in clause (vii) below;

	
  

	
 (vii)

	
it is unlikely that any warrant or option issued by the Company is exercised. If any of the warrants or options is exercised, the Seller immediately sells to the Buyer at its exercised price the number of ordinary shares of the Company held by the Seller equal to fifty-one percent (51%) of the number of ordinary shares of the Company purchased by exercising such warrants or options;

	
  

	
(viii)

	
as of the date of this Agreement, the Seller lawfully and effectively owns 10,684,660 of ordinary shares in the Company, is the beneficial and sole record shareholder of all of such ordinary shares and such ordinary shares are free of pledges, liens, mortgages, other charges or any other encumbrances;

	
  

	
 (ix)

	
the Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada, and has all requisite power and authority to operate businesses it presently conducts;

	
  

	
 (x)

	
the Company (including its affiliates it directly or indirectly owns) complies with applicable laws and regulations with respect to businesses it presently conducts;

	
  

	
 (xi)

	
financial statements of the Company (including its affiliates it directly or indirectly owns) as of June 30, 2011 have been prepared in accordance with generally accepted accounting principle in the United States, present fairy financial conditions and results of operations of the Company (including its affiliates it directly or indirectly owns) as of the times and for the periods referred to therein, are consistent with the books and records of the Company (including its affiliates it directly or indirectly owns) and contain no undisclosed liabilities;

	
  

	
 (xii)

	
all taxes due and payable have been paid in full by the Company  (including its affiliates it directly or indirectly owns);

	
  

	
 (xiii)

	
there has not been any facts, with respect to the business, assets, operation and financial situation of the Seller and the Company (including its affiliates it directly or indirectly owns), which would likely to have a material adverse effect on the performance of obligations hereunder;

 

  

6 / 14

  

 

	
  

	
 (xiv)

	
even if there happens any change in shareholders of the Company, The Seller makes its best efforts to retain major officers, employees and customers of the Company (including its affiliates it directly or indirectly owns) and to prevent outflow of property of the Company (including its affiliates it directly or indirectly owns);

	
  

	
 (xv)

	
certificates of shares to be delivered by the Seller to the Buyer for the Transaction are true and effective certificates of shares of the Company;

	
  

	
 (xvi)

	
the Company has disclosed to the Buyer all the information which would have material effect on decisions by the Buyer related to this Agreement, all the information which has been disclosed by the Company to the Buyer (including to certified accountants, attorneys and other advisors retained by the Buyer) is true and correct and no facts have been deleted or omitted from such information which are necessary for descriptions and information contained in this Agreement to be free of any misunderstanding;

	
  

	
 (xvii)

	
the Seller and Zuo provide SJI Inc and the Buyer with assistance and advice as to all procedures required in U.S. including correction of any mistake if any.

  

	
Article 6

	
Cooperate Governance

	
6.1

	
Considering that the Seller and the Buyer continue to be major shareholders of the Company, the Seller and the Buyer continue to cooperate in the governance of the Company after the Transaction.

	
6.2

	
Being an incorporator and a major shareholder through the Seller, Zuo shall carry out the business of the Company by cooperating with SJI Inc. even after the Transaction.

	
6.3

	
The Seller and Zuo shall develop the business plan of the Company for the next 3 years and deliver it to the Buyer.

	
6.4

	
Considering that SJI Inc. become to hold the majority of voting rights of the Company through the Buyer and Hua Shen (International) Limited, when carrying out the business as described in 6.2, Zuo shall cause the Company to obtain prior written consent of SJI Inc for the material matters of the Company provided below.

 

  

7 / 14

  

 

	
  

	
(i)

	
sale, merger, acquisition, or other corporate restructuring of the Subsidiaries of the Company (hereinafter, “the Subsidiary of the Company” includes both subsidiary of the Company and company controlled by the subsidiary of the Company. );

	 	
(ii) 

	
merger or other corporate restructuring of the Company;

	 	
(iii) 

	
deregistration of the Company from the OTC Bulletin Board;

	
  

	
(iv)

	
listing or preparation for listing on security market by the Company;

	
  

	
(v)

	
sale, morgage or any other disposal of material assets (more than ten (10) % of the consolidated net assets) of the Company or the Subsidiary of the Company;

	
  

	
(vi)

	
issuance or cancellation of its shares, warrants, corporate bond, or any other securities or rights by the Company or the Subsidiary of the Company; or

	
  

	
(viii)

	
any other matter discussed and agreed as material matter between the Seller and the Buyer, or the Seller and SJI Inc.

	
6.5

	
The Seller or SJI Inc may dispatch its personnel to the Company after the Closing Date.

	
6.6

	
The Buyer has an option to request the Seller or Zuo to purchase a part or all of the Shares subject to the terms and conditions as agreed separately, if the business plan developed by the Seller and Zuo as specified in Article 6.3 is not accomplished.

	
Article 7 

	
Compensation

	
7.1

	
If either Party incurs any damage, loss or costs (including, without limitations, attorney’s fees) (hereinafter referred to as “Damages”) resulting from any breach of the other Party of this Agreement or of its representations and warranties as respectively set forth in Article 4 or Article 5 occurring during the period of five (5) years after the Closing Date, the breaching Party shall immediately indemnify the non-breaching Party for such Damages. Below article 6.1 in this Agreement, “the other Party” means both the Seller and Zuo, if the main Party is the Buyer, and “the other Party” means the Buyer, if the Party is the Seller or Zuo.

	
7.2

	
In case the Company incurs the Damages due to the breach of any obligation of this Agreement by Seller or Zuo or the breach of the representations and warranties under Article 4 or 5, such all Damages is deemed to be damages incurred by Buyer.

 

  

8 / 14

  

 

	
7.3

	
In case the Seller, the Buyer or Zuo fails to perform the obligation under the Agreement, the other Party may seek the enforcement, and in case any of them proceed any action which is prohibited under this Agreement, the other Party may seek injunction. The other Party may bring both claims under this article and article 7.1.

	
Article 8  

	
Termination for Cause

	
8.1

	
If any of the followings occurs to the Seller, the Buyer or Zuo prior to the completion of the Transaction, the other Party may terminate this Agreement by giving written notice to the Party:

	
  

	
 (i)

	
attachment, provisional attachment, provisional disposition or other execution;

	
  

	
 (ii)

	
dissolution, commencement of proceedings of bankruptcy, civil rehabilitation, corporate reorganization or liquidation (or other similar proceedings) is ordered or petition for such proceedings is filed;

	
  

	
 (iii)

	
collection procedures for tax delinquency;

	
  

	
 (iv)

	
material or significant deterioration of financial situation or threat thereof;

	
  

	
 (v)

	
any false entry due to willful misconduct or gross negligence is found in The Buyer’s publicly released financial statements;

	
  

	
 (vi)

	
revocation of business license, suspension of business or other dispositions are made by regulatory agencies;

	
  

	
 (vii)

	
dissolution, merger, corporate split or transfer of business is made without prior consultation; or

	
  

	
 (viii)

	
substantial change in the control of the Party, including, without limitation, changes in major shareholders.

	
8.2

	
If any of the following events of default occurs to the Seller, the Buyer or Zuo prior to the completion of the Transaction and the Party in default fails to cure the events of default within thirty (30) days of the other Party’s written notice demanding such cure, the other Party may terminate this Agreement by giving a written notice to the Party in default:

	
  

	
 (i)

	
breach of any obligation under this Agreement; or

	
  

	
 (ii)

	
breach of its representations or warranties.

 

  

9 / 14

  

 

	
8.3

	
If this Transaction is not consummated on or before November 15, 2011 and such failure of consummation is confirmed in writing upon consultations between the Seller and the Buyer, the Seller or the Buyer may terminate this Agreement except where there is a breach by the terminating Party of its obligations, representations or warranties.

	
Article 9 

	
Termination for Force Majeure

	
9.1

	
If performance of this Agreement is objectively deemed difficult due to a substantial change in the economic situation, acts of God or any other inevitable cause, either Party may terminate this Agreement upon consultations without assuming any liability for such termination.

 

	
Article 10 

	
Confidentiality

	
10.1

	
For two (2) years after execution of this Agreement, the Seller, the Buyer and Zuo shall keep secret the existence and contents of this Agreement, developments of negotiations about this Agreement (including due diligence) and other information of the other Party obtained related to execution of this Agreement whether before or after the execution and shall not disclose the same to any third party or use the same for any purpose other than this Agreement.  Provided, however, that either Party may disclose such information if such disclosure is made to its executives and employees, attorneys, certified accountants, tax accountants, financial advisors or other professionals or is required under the laws of US Federal and State or Japan or the regulations of security exchanges of Japan or US, on the condition that, in either case, the Party to disclose such information shall notify the other Party thereof before disclosure so that the other Party has a reasonable time to take appropriate measures against such a disclosure.

	
10.2

	
Notwithstanding the provisions of the preceding paragraph, the Seller, the Buyer and Zuo shall not assume confidentiality obligation if:

	
  

	
 (i)

	
the information was already possessed by the receiving Party or publicly known at the time of disclosure or it becoming aware of such information;

	
  

	
 (ii)

	
the information becomes publicly known after disclosure or the receiving Party becoming aware of such information through no willful conduct or negligence of the receiving Party;

 

  

10 / 14

  

 

	
  

	
 (iii)

	
the information is lawfully received from a third party duly authorized to disclose without assuming confidentiality obligation; or

	
  

	
 (iv)

	
the information is independently developed by the receiving Party without referring to the information disclosed by the other Party.

	
Article 11 

	
Public Announcement

	
11.1  

	
If either Party makes a public announcement related to the Transaction, such announcement shall be made after consultations and as agreed by the both Parties on the contents, timing and manner of the announcement except where such an announcement is required under the laws of US Federal and State or Japan or the regulations of security exchanges of Japan or US; in such a case, the Party to make such announcement shall notify the other Party thereof before the announcement so that the other Party has a reasonable time to take appropriate measures against such an announcement.

	
Article 12 

	
No Assignment

	
12.1  

	
The Seller, the Buyer and Zuo may not, without the prior written approval of the other Party, assign, mortgage or otherwise dispose of its contractual status, rights or obligations under this Agreement to any third party nor cause any third party to assume the same. Nothing in this paragraph prohibits the Seller from sale, mortgage or otherwise dispose of the shares of the Company after the Closing Date.

	
Article 13 

	
Taxes and Expenses

	
13.1  

	
Unless otherwise provided for in this Agreement, the Seller, the Buyer and Zuo shall bear taxes imposed on itself in connection with this Agreement.  Stamp duties imposed in connection with performance of this Agreement shall be equally borne by both Parties.

	
13.2

	
Unless otherwise provided for in this Agreement, the Seller, the Buyer and Zuo shall bear its own costs and expenses, including fees and expenses for attorneys, certified accountants and other third parties, incurred in connection with the negotiation (including due diligence), preparation, execution and performance of this Agreement except for the expenses incurred in connection with the claim for damages or other remedies due to any default of the other Party.

 

  

11 / 14

  

 

	
Article 14 

	
Notice

	
14.1  

	
Unless otherwise provided for in this Agreement or separately agreed in writing by both Parties and Zuo, all communications to be made under this Agreement, including, without limitation, notices and provision of information, shall be in writing and given by facsimile, e-mail, personal delivery or mail to the following contact persons.  Each Party and Zuo may change its contact information or contact person by notice given to the other Party in accordance with this Article.

The Seller:

 

	
Address:

	  	
Rm1103, 11/F, Tower Two, Lippo Centre, 89 Queensway, Admiralty, Hong Kong

	
Facsimile:

	  	
+85-2-2840-0488

	
E-mail:

	  	
jzhzuo@yahoo.com

	
Contact Person:

	  	
Zuo, JianZhong

 

The Buyer:

	
Address:

	  	
c/o  SJI Inc.

	  	  	
4-12-8 Higashi Shinagawa Shinagawa-ku, Tokyo, 140-0002 Japan

	
Facsimile:

	  	
+81-3-3472-6295

	
E-mail:

	  	
tano-daichi@sji-inc.jp

	
Contact Person:

	  	
Daichi Tano

 

Zuo

 

	
Address:

	
Rm1103, 11/F, Tower Two, Lippo Centre, 89 Queensway, Admiralty, Hong Kong

	
Facsimile:

	
+85-2-2840-0488

	
E-mail:

	
jzhzuo@yahoo.com

	
Contact Person:

	
Zuo, JianZhong

 

	
Article 15 

	
Entire Agreement

	
15.1  

	
This Agreement constitutes the entire agreement between the Parties regarding the Transaction.  Any prior contract, agreement, commitment or covenant regarding the Transaction, whether written or oral, shall be invalid to the extent inconsistent with this Agreement.

 

  

12 / 14

  

 

	
Article 16 

	
Amendment

	
16.1  

	
This Agreement may not be amended or modified without the prior written consent of both Parties and Zuo.

	
Article 17 

	
Governing Law and Language

	
17.1  

	
This Agreement and any and all rights and obligations related to this Agreement shall be governed by and construed in accordance with the laws of Japan.

	
17.2  

	
This Agreement shall be signed and executed in Japanese, Chinese and English. In case there is any discrepancy or conflict among the Japanese version, Chinese version and English version, the Japanese version shall prevail.

	
Article 18 

	
Arbitration

	
18.1

	
Any disputes, controversies, or differences arising between or among the Seller, the Buyer and Zuo in connection with this Agreement shall be settled by arbitration in Tokyo, Japan in accordance with the rules and procedures of the Japan Commercial Arbitration Association.  The arbitral institution shall be the Tokyo office of the said Association.  The number of arbitrator shall be one (1) and arbitration shall be conducted in the Japanese language.

[Remainder of page intentionally left blank]

 

  

13 / 14

  

 

IN WITNESS WHEREOF, the Parties have caused this Share Purchase Agreement to be executed in three (3) originals as of the date first written above by their respective officers thereunto duly authorized, each Party and Zuo retaining one (1) copy thereof respectively.

September 22 , 2011

	
The Seller:

	  
	
China LianDi Energy Resources Engineering Technology Limited

	  
	
By:

	
Name:

	
Title:

	  
	
The Buyer:

	  
	
SJ Asia Pacific Limited

	  
	
By:

	
Name:

	
Title:

	  
	
Zuo:

	  
	
Zuo Jianzhong

 

  

14 / 14

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