Document:

ex102.htm

Equity Transfer Agreement

 

 

This Equity Transfer Agreement is entered into as of April 27, 2012 in __________, between:

 

Transferor (“Party A”): Atlantic Investment (Group) Limited

 

Registered Address in Hong Kong: Unit B, 8/F, Wing Yee Commercial Building, 5 Wing Kut Street, Sheung Wan, Hong Kong

 

Hong Kong Special Administrative Region Business Registration No.: 1372061

 

Legal Representative:

 

Executive Director (Authorized Representative): WANG Junyong    Nationality: China

 

ID No.: 342623197010056139

 

Transferee (“Party B”): YUAN Qihong        ID No.: 342623197105205336

 

Residence Address: 30 Building 5, Yizhu Garden, Yongmei Villa, Qixia District, Nanjing

 

WHEREAS:

 

1.           Jiangsu Danbom Mechanical & Electrical Co., Ltd. is a WFOE incorporated under the laws of People’s Republic of China, whose business license number is: 321183000045311, and whose registered office is at Jurong City, Jiangsu Province.

 

2.           As of the execution date (the “Execution Date”) of this Equity Transfer Agreement (hereinafter “this Agreement” or “Agreement”), Party A, as the legitimate shareholder of the Target Company, owns 100% of the equity interest in the Target Company. Party A intends to sell 100% of the equity interest in the Target Company, and Party B intends to purchase 100% of the equity interest in the Target Company assigned by Party A.

 

With respect to transaction of the 100% equity interest in the Target Company, Party A and Party B, through sufficient communication and friendly negotiation and based on relevant provisions in Contract Law of the People's Republic of China and Company Law of the Peoples Republic of China, hereby agree as follows:

 

Article 1 Definition

 

Both Party A and Party B come to a consensus, that unless otherwise agreed in this Agreement, certain expressions shall have the following meanings:

 

  

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    1.1 “Agreement” or “this Agreement” refers to this Equity Transfer Agreement together with all related Appendix as a whole.

 

1.2 “Target Company” refers to Jiangsu Danbom Mechanical & Electrical Co., Ltd., and the Transferor (“Party A”) is the actual owner of the registered capital injected in the Target Company.

 

1.3 “Transfer Price” refers to the buying price of this Equity Transfer, including all the shareholder’s rights and interests during the Equity Transfer. Such shareholder’s rights and interests mean all the current and potential interests attached to the transferred equity interests, including the interest in all the goods and chattels, real estates, tangible and intangible assets owned by the Target Company.

 

1.4 “Conversion” means to convert the Target Company from a foreign invested company to a wholly domestic company.

 

1.5 “Closing Date” refers to the actual approval date of this Equity Transfer, namely, the date when both Parties have obtained all the approval documents including resolutions concluded by shareholder(s) of Party A and Party A’s parent company, related approval letters and registration certificates issued by relevant government administrations of approval authorities and registration authorities, and/or other legal authorities on all the applications of this Equity Transfer and Conversion of the Target Company.

 

1.6 “Approval Authorities” refers to the Ministry of Commerce or its designated authorities at lower levels. “Registration Authorities” refers to the State Administration for Industry and Commerce or its designated authorities at lower levels.

 

1.7 “Equity Change Registration” means the legitimate registration procedures for changing the owner of the 100% equity interest in the Target Company from Party A to Party B after completion of the transaction.

 

1.8 “Delivery Date of Management Right in Target Company” refers to the delivery date on which the Transferor hands over the management right, decision-making right, personnel right (including the right to dismiss and replace the chairman of the board, directors, supervisors, managers, deputy managers, financial officers and other senior officers), as well as the company seals, accounts and assets of the Target Company, in accordance with the provisions under this Agreement, after execution of this Agreement.

 

1.9 “Base Date of Equity Transfer” refers to the date on which both Parties confirm the equity price in order to complete this transaction.

 

  

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Article 2 Transfer Price and Payment Method

 

2.1 Transfer Price: Party A and Party B both agree to appoint Zhenjiang Li Xin Assets and Real Estate Appraisal Co., Ltd. as the appraisal institution and adopt the evaluation price specified in the appraisal report concluded by the appraisal institution to be the price of this Equity Transfer. The Base Date of Equity Transfer hereby refers to the date when the equity evaluation price of Target Company is confirmed. Through evaluation in accordance with the law, the price of this Equity Transfer should be RMB 44,120,000 (in words: Forty Four Million One Hundred and Twenty Thousand).

 

2.2 Payment Method: within six months after the Execution Date of this Agreement, the payment should be made in one lump sum.

 

        Article 3 Representations and Warranties

 

3.1 Each of Party A and Party B or the applicable parties hereby represents and warrants as follows:

 

3.2 Such Party is not aware of any pending disputes, actions, arbitrations, administrative proceedings and other legal proceedings which might adversely affect the consummation of the transactions contemplated by this Agreement by the Execution Date.

 

 3.3 The documents, financial statements and information relevant to the Equity Transfer described in the Agreement disclosed by each Party to any parties are authentic, and no misrepresentation exists.

 

3.4 Party A hereby represents: Party A lawfully owns the equity rights in the Target Company to be transferred to Party B, and before the Base Date of Equity Transfer, any debts or obligations that are not disclosed to Party B is fully born by Party A, and independent to the new company after the Equity Change Registration. Before the Base Date of Equity Transfer, except for the debts and obligations incurred from violation of laws by Party A, any lawful debt or obligations which have been disclosed to Party B should be undertaken by the new company after the Equity Change Registration.

 

3.5 Party B hereby represents: Party B shall pay the Transfer Price as agreed in the Agreement, and the capital source for payment of Transfer Price is lawful.

 

Article 4 Delivery of Management Right

 

4.1 Delivery Date of Management Right in Target Company: it should be within twenty business days after completion of registration in the Registration Authorities. On the Delivery Date of Management Right, the Parities accomplish the handover of management right in the Target Company.

 

  

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4.2 Transfer of Rights: upon the confirmation by both Parties, by the Delivery Date of Management Right, the right of decision making, management, personnel and other relevant rights possessed by the former shareholder meeting, board of directors, board of supervisors and general manager of the Target Company should be suspended. Any resolution, decision, instruction, arrangement and so forth that have been made without enforcement or has not implemented completely should not be enforced or continue to be enforced unless being confirmed by the re-built, elected or designated shareholders meeting, board of directors, board of supervisors, general manager and other senior officers after the Transferee has joined.

 

4.3 Transfer or Replacement of Company Seals: the Parties will transfer the accounts, files and so forth of the Target Company on the Delivery Date of Management Right. The Parties will jointly dispose of the original company seals or hand over to the Registration Authorities, and meanwhile, the Transferee shall arrange for inscription of new seals and replace the Bank Special Chop and Tax Special Chop. Party A should not retain or use any of the seals of the Target Company or blank contracts, or carry out any business activities in the name of the Target Company.

 

4.4 Transfer of Business License and Government Permits: on the Delivery Date of Management Right in the Target Company, the Parties will verify and hand over the business license, tax registration certificate, entity code certificate and any other licenses or permits (if applicable).

 

Article 5 Confidentiality

 

Except for the disclosure required by laws and regulations or the peremptory commands executed by the government, authorities or the court, neither Party will disclose any material or information provided by the counterparty and the Target Company in relevant to the Equity Transfer hereof to any third party. Neither Party will make announcements regarding this Agreement, or the Equity Transfer hereof in the Agreement, or any other relevant issues without the written consent of the counterparty.

 

Article 6 Tax Undertaking

 

Party A is responsible for the taxes incurred in connection with the execution and enforcement of this Agreement by any Parties of this Agreement according to the laws and regulations in the People’s Republic of China. Party B is responsible for the fees arising from any testimony, audit or change of registration relevant to this Equity Transfer.

 

Article 7 Liabilities for Breach of Agreement

 

Any violation of this Agreement, failure to perform the obligations in this Agreement, any false, materially omissive and misleading undertakings and warranties, or any violation of undertakings and warranties made by one Party will constitute a breach of this Agreement. With regard to any 

 

  

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non-compliance made by one Party to this Agreement, the counterparty is entitled to inform the defaulting party in written notice, requesting for immediate termination of the non-compliance activities and bearing the liabilities for breach of Agreement upon the total loss thus incurred.

 

If the registration and delivery of the Equity Transfer are overdue due to unilateral violation of this Agreement by Party A, Party A shall pay the liquidated damages to Party B in the amount of 0.05% of the total Transfer Price for every expired day, and also compensate Party B the losses accordingly.

 

If the registration and delivery of the Equity Transfer are overdue due to unilateral violation of this Agreement by Party B, Party B shall pay the liquidated damages to Party A in the amount of 0.05% of the total Transfer Price for every expired day, and also compensate Party A the losses accordingly.

 

Article 8 Application of Law and Dispute Settlement

 

8.1 All the execution, effectiveness, performance, explanation, modification and termination of this Agreement shall be governed by the laws of the People’s Republic of China.

 

8.2 The parties shall use their best efforts to settle all disputes arising from or in connection with this Agreement through friendly consultations. In the event that no settlement is reached through consultations, such dispute shall be submitted to the China International Economic and Trade Arbitration Commission Shanghai Sub-commission according to its rules then in effect. The arbitral award shall be final and binding upon the Parties.

 

8.3 During the course of arbitration, in addition to the subject matter of dispute, the Parties shall continue to perform the other rights and obligations under the Agreement.

 

        Article 9 Force Majeure

 

Should any of the Parties be prevented from performing part or all of its obligations under this Agreement by force majeure events, such as earthquake, typhoon, war and etc., the prevented Party shall notify the other Party without delay, and within 60 days thereafter provide effective evidence concerning the existence and the duration of such events. Under these circumstances, the prevented Party is accordingly exempted from liabilities for breach of Agreement.

 

         Article 10 Modification and/or Termination of Agreement

 

The Parties may modify and/or terminate this Agreement by mutual consent in the form of Modification and/or Termination Agreement signed by both Parties. This Agreement may not be modified and/or terminated by one Party without mutual consent.

 

  

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        Article 11 Establishment and Effectiveness of Agreement

 

This Agreement is established once signed and sealed by the Parties and takes effect upon approval by relevant Approval Authorities in compliance with laws. The Parties shall handle the Equity Change Registration in relevant Registration Authorities within 30 days after the Equity Transfer Agreement becomes effective.

 

       Article 12 Miscellaneous

 

12.1 This Agreement constitutes the entire agreement between the Parties with respect to the Equity Transfer matter hereof, and supersedes all previous oral or written, expressed or implied negotiation, consultation and agreements, including but not limited to Appendix I—Framework Agreement of Equity Transfer.

 

12.2 For the matters that are not included in this Agreement, the Parties may sign supplementary agreements. Such supplementary agreements are integral parts of the Agreement and shall have the same legal effect as this Agreement.

 

12.3 This Agreement shall be executed in four originals. Each Party will hold one original, and the other two are submitted to the Approval Authorities and Registration Authorities. Each of the four originals will be deemed as the same instrument and take same effect.

 

12.4 Neither Party may assign any of its respective rights or obligations under this Agreement to any third party without the consent of the other Parties.

 

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

 

  

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first written above.

 

(Signature Page)

 

 

 

Transferor:

 

 

Party A (Official Seal of the Company):

 

Authorized Representative (Signature):

 

signature of WANG Junyong

 

seal of Atlantic Investment (Group) Limited

 

 

Transferee:

 

 

Party B:

 

Authorized Representative (Signature):

 

signature of YUAN Qihong

 

April 27, 2012

 

 

 

 

  

7exhibit10_1.htm

 

EXHIBIT 10.1

 

AUTOMATIC DATA PROCESSING, INC. 2008 OMNIBUS AWARD PLAN

 

STOCK OPTION GRANT AGREEMENT

 

(French Beneficiaries)

 

           AUTOMATIC DATA PROCESSING, INC. (the “Company”), pursuant to the 2008 Omnibus Award Plan (the “Plan”) and the French stock option sub plan dated January 26, 2012 appended hereto (the “French Sub Plan”), hereby irrevocably grants to [First Name][Last Name] (the “French Participant”), on [Date] (the “Date of Grant”) [Number] Nonqualified Stock Options (as defined in the Plan) giving right to purchase Shares of the Company (the “French Options”).

 

Each French Option gives the French Participant the right and option to purchase [Number] shares of the Common Stock, par value $0.10 per share, of the Company subject to the restrictions, terms and conditions herein.

 

WHEREAS, the Compensation Committee (the “Committee”) of the Board of Directors of the Company (the “Board”) has determined that it would be in the best interests of the Company and its stockholders to grant the award of French Options provided for herein to the French Participant, on the specific terms and conditions described in this Stock Option Grant Agreement (this “Agreement”).

 

NOW, THEREFORE, for and in consideration of the premises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, for themselves and their successors hereby agree as follows:

 

 1.           The French Options herein granted shall become exercisable in whole or in part as follows:

 

           (a)           Exercisable as to [Vesting 1] French Options on and after [Date 1];

 

           (b)           Exercisable as to an additional [Vesting 2] French Options on and after [Date 2];

 

           (c)           Exercisable as to an additional [Vesting 3] French Options on and after [Date 3]

 

           (d)           Exercisable in its entirety on and after [Date 4]; and

 

           (e)           Exercisable in its entirety (i) by the French Participant’s estate within six months from the death of the French Participant, or (ii) in the event of total and permanent disability corresponding to the 2nd or the 3rd category of disabilities listed under Section L. 341-4 of the French social security code (a “Permanent Disability”) of the French Participant.

 

           (f)           If the French Participant retires from the Company at any time following the first anniversary of this Agreement and at such time satisfies the Normal Retirement Criteria, the French Options herein granted shall continue to become exercisable as set forth in clauses (b) through (d) of this Section 1. The Normal Retirement Criteria will be satisfied if the French Participant shall (i) retire (and satisfy the Company’s criteria for retirement at such time) from the Company or any of its subsidiaries, divisions or business units, as the case may be, (ii) be at least 55 years of age at the time of such retirement, and (iii) have at least ten credited years of service with the Company or its subsidiaries at the time of such retirement.

 

           (g)           If a French Participant who at the time of retirement satisfies the Normal Retirement Criteria subsequently dies or becomes subject to a Permanent Disability before such French Participant’s French Options herein granted become exercisable in their entirety as set forth in clause (d) of this Section 1, the French Options herein granted shall become exercisable as set forth in clause (e) of this Section 1.

 

           (h)           If a French Participant who at the time of retirement satisfies the criteria set forth in Section 2(b)(iv) subsequently dies or becomes subject to a Permanent Disability before the expiration of 12 months after the retirement of the French Participant, such French Participant’s French Options herein granted shall become exercisable as set forth in clause (e) of this Section 1.

 

           (i)           Except as provided in clauses (f) through (h) of this Section 1 or as the Committee may otherwise determine in its sole discretion in accordance with the French Sub Plan, no French Option herein granted shall become exercisable following termination of the French Participant’s employment from the Company or any of its subsidiaries (and no French Option herein granted shall become exercisable following the Company’s sale of the subsidiary, or the Company’s or a subsidiary’s sale of the division or business unit, that employs such French Participant).

 

2.           The unexercised portion of the French Options herein granted shall automatically and without notice terminate and become null and void at the time of the earliest of the following to occur:

 

           (a)           the expiration of ten years from the date on which the French Option was granted;

 

           (b)           the expiration of 60 days from the date of termination of the French Participant’s employment from the Company (including in connection with the sale of the subsidiary, division or business unit that employs such French Participant) or any of its subsidiaries; provided, however, that

 

           (i)           if the French Participant’s employment from the Company or any of its subsidiaries terminates because of Permanent Disability, the provisions of sub-paragraph (c) shall apply,

 

           (ii)           if the French Participant shall die during employment by the Company or any of its subsidiaries or during the 60-day period following the date of termination of such employment, the provisions of sub-paragraph (d) below shall apply,

 

           (iii)           if the French Participant shall retire and satisfy the Normal Retirement Criteria, the provisions of sub-paragraph (e) below shall apply, and

 

           (iv)           if the French Participant shall (I) retire (and satisfy the Company’s criteria for retirement at such time) from the Company or any of its subsidiaries, divisions or business units, as the case may be, (II) be at least 55 years of age at the time of such retirement, and (III) have at least five (but less than ten) credited years of service with the Company and its subsidiaries at the time of such retirement, the provisions of sub-paragraph (f) below shall apply;

 

           (c)           if Section 2(b)(i) applies, (i) if the French Participant satisfied the Normal Retirement Criteria at the time of French Participant’s Permanent Disability, the expiration of 36 months after termination of French Participant’s employment from the Company or any of its subsidiaries because of Permanent Disability, or (ii) if the French Participant did not satisfy the Normal Retirement Criteria at the time of French Participant’s Permanent Disability, the expiration of 12 months after termination of French Participant’s employment from the Company or any of its subsidiaries because of Permanent Disability; provided, however, that if the French Participant shall die during the 36-month period specified in clause (i) of this Section 2(c) or the 12-month period specified in clause (ii) of this Section 2(c), as applicable, then the unexercised portion shall become null and void upon the expiration of 6 months after death of the French Participant;

 

           (d)           if Section 2(b)(ii) applies, the expiration of 6 months after death of the French Participant;

 

           (e)           if Section 2(b)(iii) applies, the expiration of 37 months after the retirement of the French Participant; provided, however, that if such French Participant shall die during the 37 month period following the date of such French Participant’s retirement, then the unexercised portion shall become null and void on the expiration of 6 months after death of the French Participant; and

 

           (f)           if Section 2(b)(iv) applies, the expiration of 12 months after the retirement of the French Participant; provided, however, that if such French Participant shall die during the 12 month period following the date of such French Participant’s retirement, then the unexercised portion shall become null and void on the expiration of 6 months after death of the French Participant.

 

 3.           For the avoidance of doubt, and notwithstanding any provision (or interpretation) of Section 2 to the contrary, the unexercised portion of the French Options herein granted shall automatically and without notice terminate and become null and void upon the expiration of ten years from the date of this Agreement.

 

 4.           The full price for each of the shares purchased pursuant to the French Options herein granted (the “French Exercise Price”) shall be $XX.XX.

 

 5.           Full payment for shares purchased by the French Participant shall be made at the time of the exercise of the French Options in whole or in part. No shares shall be transferred to the French Participant until full payment therefor has been made, and the French Participant shall have none of the rights of a shareholder with respect to any shares subject to the French Options until such shares shall have been transferred to the French Participant.

 

 6.           No French Option granted hereunder may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a French Participant, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or an Affiliate; provided, however, that upon the French Participant’s death, the French Options may be exercised by the French Participant’s estate subject to the terms and conditions of Section 1 and Section 2.

 

 7.           The Shares resulting from the exercise of the French Options shall not be assigned, pledged, attached, sold or otherwise transferred or encumbered by the French Participant before the expiration of a 48-month period commencing on the Date of Grant; provided, however, that, in accordance with the terms of Section 91 ter of Annex 2 of the French tax code, the restriction in this Section 7 shall not be applicable in case of:

 

(i)           Dismissal (licenciement) of the French Participant, if the French Options have been exercised no later than three months prior to the date of such Dismissal; or

 

(ii)            Retirement imposed by the employer (mise à la retraite) of the French Participant, if the French Options have been exercised no later than three months prior to the date of Retirement  of the French Participant; or

 

(iii)           Permanent Disability of the French Participant; or

 

(iv)           Death of the French Participant

 

 8.           The effectiveness of the French Options granted hereunder is conditioned upon the French Participant having executed and delivered to the Company a restrictive covenant, either (i) in connection with a previous stock option grant, or (ii) within six months from the date of this Agreement, if such restrictive covenant is furnished herewith.  If the Company has not received the restrictive covenant in accordance with the immediately preceding sentence, then this Agreement shall be terminable by the Company.

 

 9.           Pursuant to Article 17 of the French Sub Plan (“Administration of the French Sub Plan – Amendments”), the key terms and conditions of the French Options may be amended by the Committee after the Date of Grant only in accordance with French Law.

 

 10.           Notwithstanding anything to the contrary contained herein (and so long as the terms of this Section 10 are not deemed to result in a monetary sanction prohibited by Article L. 1331-2 of the French Labor Code) the French Options may be terminated and become null and void without consideration if the French Participant, as determined by the Committee in its sole discretion (i) engages in an activity that is in conflict with or adverse to the interests of the Company or any Affiliate, including but not limited to fraud or conduct contributing to any financial restatements or irregularities, or (ii) without the consent of the Company, while employed by the Company or any Affiliate, or after termination of such employment, violates a non-competition, non-solicitation or non-disclosure covenant or agreement between the French Participant and the Company or any Affiliate. If the French Participant engages in any activity referred to in the preceding sentence, the French Participant shall, at the sole discretion of the Committee, forfeit any gain realized in respect of the French Option granted hereunder (which gain shall be deemed to be an amount equal to the difference between the price for shares set forth in Section 4 above and the Fair Market Value (as defined in the Plan), on the applicable exercise date, of the shares of Common Stock (as defined in the Plan) of the Company delivered to the French Participant), and repay such gain to the Company.

 

11.           The provisions of the French Sub Plan and the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the applicable provisions of the French Sub Plan and the Plan, and any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the French Sub Plan or the Plan, as the case may be.

 

The provisions of this Agreement shall take precedence over conflicting provisions of the French Sub Plan.

 

 12.           Any right of the Company contained in this Agreement may be waived in writing by the Committee provided that the waiver of this right is in accordance with French Law. No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.

 

13.           The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

 

Any provision of this Agreement in contradiction with French Law shall be void and automatically replaced by the applicable provisions under French Law.

 

14.           The terms of this Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns, the French Participant and the beneficiaries, executors, administrators, heirs and successors of the French Participant.

 

15.           This Agreement, the French Sub Plan, and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto. No change, modification or waiver of any provision of this Agreement shall be valid unless the same be in writing and signed by the parties hereto, except for any changes permitted without consent of the French Participant under the French Sub Plan or the Plan.

 

16.           Except to the extent this Agreement expressly provides for the application of French Law, this Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware without regard to principles of conflicts of law thereof, or principles of conflicts of laws of any other jurisdiction which could cause the application of the laws of any jurisdiction other than the State of Delaware.

 

           By: ______________________________________

 

           [Name]

 

           [Title]

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