Document:

exh10-5.htm

Exhibit 10.5

Call Option Agreement

	
 

 

Founders:

 

Shareholder 1:Tang Weijiao

 

Shareholder 2:  Cao Xiaoya

 

 

	  	  

Call Option Holder:  Crown Union Resources Limited, a British Virgin Islands company (“CURL”)

The Parties hereby agree as follows:

1. The Founders hold one hundred percent (100%) equity interest in the registered capital of Peng Tuo Information Technology Co. Ltd. (“PTIT”) with the registered address in Room 117, Number 467,West Wenshan Road ,Hangzhou, Zhejiang Province,China (hereinafter referred to as the “Company”). The Founders acknowledge that the Company’s registered capital is RMB 100,000 and has been fully paid in. The Company’s business license is attached hereto as Appendix I.

2. The Founders hereby confirm that CURL or an entity designated by CURL in writing (hereinafter referred to as the “Call Option Holder”) has the right to purchase from the Founders up to 100% equity interest in the Company including all the equity interest, stock options and similar interests derived from such equity interest (such equity interest and all of the derivative interests are collectively referred to as the “Equity Interest”, and the right to purchase Equity Interest by the Call Option Holder is referred to as “Call Option”).

 

To the fullest extent permitted by the Chinese laws, the transfer price for the Equity Interest (or any part thereof) shall be equal to Founders’ initial contributions to the registered capital of the Company in exchange for the Equity Interest (or any part thereof) (“Contributions to Registered Capital”). The Parties agree that, to the fullest extent permitted by the Chinese laws, in connection with the transfer of any or all of the Equity Interest to CURL and/or any third party designated by CURL, CURL shall have the right to offset the value of any other consideration received by the Founders in connection with this and its related Agreements against the transfer price for the Equity Interest, and CURL and any third party designated by CURL shall not be required to make any cash payment to the Founders separately. If the Equity Interest is required to be valued under relevant Chinese laws, or there are any other provisions for the transfer price for the Equity Interest, then such transfer price shall be the lowest price permitted under relevant Chinese laws.

  

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If the Call Option Holder elects to purchase part of the Equity Interest, the exercise price shall be adjusted on a pro rata basis according to the proportion of the equity interest to be purchased in Equity Interest. The equity interest held by the Founders respectively shall be paid-in capital, free from any debt or any third party’s claims.

3. The Call Option Holder shall have the pre-emptive right and may exercise such rights and power at its sole discretion. The Call Option Holder shall notify the Founders in writing when it exercises Call Option. Upon receipt of the written notice from the Call Option Holder, each Founder shall enter into an equity/asset transfer agreement with the Call Option Holder on the date specified on the notice (if any). To the extent permitted by applicable laws and the Call Option Holder determines to exercise Call Option, the Founders shall cooperate and cause the Company to cooperate with the Call Option Holder to proceed with all approvals, permits, registrations, filings and other documents necessary for such transfer. If the Founders refuse to facilitate or delay the transfer, the Call Option Holder may take proper actions independently to complete such transfer.

4. To guarantee the Call Option Holder’s call option and other rights, the Founders agree to surrender the share certificates and other relevant certificates to the Call Option Holder for safekeeping. Without the written consent of the Call Option Holder, the Founders shall not approve or support any equity transfer or capital increase of the Company, or any resolution approving the capital increase, issuance of additional shares, dilution of the existing shareholdings, or affecting the right of the Call Option Holder at any Board or shareholders’ meetings.

5. The Founders undertake not to dispose of the stock dividends or exercise any related rights in any form without the Call Option Holder’s written consent. In the event of dissolution of the Company, all the assets available to the Founders after the liquidation shall be allocated to the Call Option Holder.

6. The Founders agree that, from the date of this Agreement, all profits and shareholders’ equity interests shall belong to the Call Option Holder, all losses and costs related to such Equity Interest shall be borne by the Call Option Holder, all benefits and interests such as dividends, stock rewards or bonus relating to Equity Interest shall belong to the Call Option Holder; any shareholder’s pre-emptive right (if any) to purchase the Company’s additional shares and to purchase the equity interest assigned by other shareholders shall be vested in the Call Option Holder, the Founders shall exercise, deliver or process all the aforementioned benefits, interests and rights under the instructions of the Call Option Holder. Without the written consent of the Call Option Holder, the Founders shall not execute or adopt any resolution approving the distribution of the stock dividends, stock awards or profits at any Board or shareholders’ meetings.

  

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7. The Founders further agree that:

Before the Call Option Holder exercises Call Option to obtain all the equity interest and assets, the Founders shall not engage in and shall not cause the Company to engage in the following activities:

1) Selling, assigning or otherwise disposing of any assets, lawful income and business revenues of the Company, or making security pledge on the Company (other than those made in the ordinary course of business or have been disclosed to and approved by the Call Option Holder in writing);

2) Entering into any transactions that may substantially affect the Company’s assets, liabilities, operations, equity and other legitimate interests (other than those made in the ordinary course of business or have been disclosed to and approved by the Call Option Holder in writing);

3) Supplementing, altering or modifying the Company’s charter documents in any form, which will substantially affect the Company’s assets, liabilities, operations, equity and other legitimate interests (except the proportional capital increase as required by law); and

4) Appointing any other third as the Company’s agent or representative.

8. The Call Option Holder may assign the Call Option and any rights and interests hereunder, and the Founders shall not raise an objection. The Founders shall also undertake that they will enter into a new call option agreement similar to this Agreement with the successor to the Call Option Holder upon the written request of the Call Option Holder.

9. If any part of this Agreement is declared or held invalid by a competent judicial authority, such part shall be deemed as deleted from this Agreement and the other parts of this Agreement shall remain valid. The Parties shall negotiate in good faith to modify the deleted terms and enter into a supplemental agreement to effectively carry out the original intent of such terms.

10. If any dispute arises out of the interpretation or performance of this Agreement, the Parties shall negotiate in good faith to resolve such dispute; if such dispute cannot be resolved within thirty (30) days of the beginning of such negotiations, either Party may submit such dispute to the China International Economic and Trade Arbitration Commission in Beijing for arbitration in accordance with its then effective arbitration rules.

11. Any failure of the Call Option Holder to promptly exercise any of its rights hereunder shall not constitute a waiver of such rights; single or partial exercise of any rights shall not preclude any exercise of such rights in the future; failure to exercise certain rights shall not preclude any exercise of any other rights.

  

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12. Without the Parties’ prior consent, either Party shall keep this Agreement confidential and shall not disclose or make any announcements with regard to this Agreement to any third parties, provided the provisions in this Section do not prohibit (i) any disclosures made under applicable laws or the provisions of any exchange rules; (ii) any disclosures in connection with any information that is publicly available, which is not a consequence of the disclosing party’s breach of contract; (iii) any disclosures made to the Parties’ investors, legal counsels, accountants, financial advisors or other professional consultants; or (iv) any disclosures made to either Party or any potential buyers of either Party’s equity/assets, other investors, or creditors, in which the receiving parties shall undertake proper confidentiality obligations (where the assignor is not the Call Option Holder, the Call Option Holder’s consent shall have been obtained).

13. This Call Option is not subject to any time limit, and shall become effective upon execution by the Parties. This Agreement shall not terminate until the Call Option Holder exercises Call Option and the Equity Interest has been fully vested in the Call Option Holder or a person designated by the Call Option Holder or upon termination by the Call Option Holder in writing.

This Agreement is signed on December 30, 2011.

Founders:

	 	 	 	 
	
Shareholder #1:

	
By: 

	/s/ Tang Weijiao	 
	 	 	Name Tang Weijiao	 
	 	 	 	 

	 	 	 	 
	
Shareholder #2:

	
By: 

	/s/ Cao Xiaoya	 
	 	 	Name: Cao Xiaoya	 
	 	 	 	 

 

 

  

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Call Option Holder:

	 	Crown Union Resources Limited	 
	 	 	 	 
	
 

	
By: 

	/s/ Joshua Kallan	 
	 	 	Name: Joshua Kallan	 
	 	 	Title: Authorized representativeKBS RIII PEA no.4 -Exhibit 10.18

Exhibit 10.18

Loan No. 1005669

JOINDER AGREEMENT
(LOAN AGREEMENT)
THIS JOINDER AGREEMENT (this "Agreement"), dated as of October 28, 2011, is entered into by KBSIII LAS CIMAS IV, LLC, a Delaware limited liability company (the "New Borrower"), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent under that certain Loan Agreement, dated as of September 29, 2011 (as the same may be amended, supplemented or otherwise modified from time to time, the "Loan Agreement"), among KBSIII DOMAIN GATEWAY, LLC, a Delaware limited liability company (“Domain Borrower”), the Lenders from time to time party thereto and the Administrative Agent.  All capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Loan Agreement.
New Borrower and the Administrative Agent, for the benefit of the Lenders, hereby agree as follows:
Section 1.    Assumption and Joinder.
(a)    The New Borrower hereby expressly assumes, and hereby agrees to perform and observe, each and every one of the covenants, rights, promises, agreements, terms, conditions, obligations, appointments, duties and liabilities of a "Borrower" under the Loan Agreement and all of the other Loan Documents applicable to it as a Borrower under the Loan Agreement.  By virtue of the foregoing, the New Borrower hereby accepts and assumes any liability of a Borrower related to each representation, warranty, covenant or obligation made by a Borrower in the Loan Agreement, as they relate to the New Borrower, and hereby expressly affirms, as of the date hereof, each of such representations, warranties, covenants and obligations.
(b)    All references to the term "Borrower" in the Loan Agreement or in any document or instrument executed and delivered or furnished, or to be executed and delivered or furnished, in connection therewith shall be deemed to be a reference to, and shall include, the New Borrower. 
Section 2.    Representations and Warranties.  The New Borrower hereby represents and warrants to the Administrative Agent and the Lenders as follows:
(a)    The New Borrower has the requisite limited liability company power and authority to enter into this Agreement and to perform its obligations hereunder and under the Loan Agreement and any other Loan Document to which it is a party.  The execution, delivery and performance of this Agreement by the New Borrower and the performance of its obligations under this Agreement, the Loan Agreement, and any other Loan Document have been duly authorized by the members of the New Borrower and no other limited liability company proceedings on the part of the New Borrower are necessary to authorize the execution, delivery or performance of this Agreement, the transactions contemplated hereby or the performance of its obligations under this Agreement, the Loan Agreement or any other Loan Document.  This Agreement has been duly executed and delivered by the New Borrower.  This Agreement, the Loan Agreement and each Loan Document constitute the legal, valid and binding obligation of the New Borrower enforceable against it in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally and by general principles of equity, whether such enforceability is considered in a proceeding at law or in equity.
(b)    Except as otherwise disclosed to the Administrative Agent in writing, the representations and warranties set forth in the Loan Agreement are true and correct in all material respects on and as of the date hereof as such representations and warranties apply to the New Borrower (except to the extent that any such representations and warranties expressly relate to an earlier date) with the same force and effect as if made on the date hereof.

Section 3.    Security Document.  New Borrower is, simultaneously with the execution of this Agreement, executing and delivering (i) a Security Document which encumbers certain real property owned by New Borrower and (ii) such other documents and instruments as requested by the Administrative Agent in accordance with the Loan Agreement.  New Borrower acknowledges and agrees that from and after the date of this Agreement, such real property referred to in item (i) of the immediately preceding sentence shall be a Property under the Loan Agreement.
Section 4.     Further Assurances.  At any time and from time to time, upon the Administrative Agent's request and at the sole expense of the New Borrower, the New Borrower will promptly and duly execute and deliver any and all further instruments and documents and take such further action as the Administrative Agent reasonably deems necessary to effect the purposes of this Agreement.
Section 5.    Binding Effect.  This Agreement shall be binding upon the New Borrower and shall inure to the benefit of the Administrative Agent and the other Lenders and their respective successors and assigns.
Section 6.    Counterparts.    This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.
Section 7.    Governing Law.     This Agreement shall be governed by, and construed and enforced in accordance with the laws of the State of California, except to the extent preempted by federal laws.  
Section 8.    JURY TRIAL WAIVER.  TO THE EXTENT PERMITTED BY THEN APPLICABLE LAW, EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (a) ARISING UNDER THE LOAN DOCUMENTS OR OTHER RELATED DOCUMENTS, INCLUDING, WITHOUT LIMITATION, ANY PRESENT OR FUTURE MODIFICATION THEREOF OR (b) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THE LOAN DOCUMENTS OR OTHER RELATED DOCUMENTS  (AS NOW OR HEREAFTER MODIFIED) OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION IS NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF ANY RIGHT THEY MIGHT OTHERWISE HAVE TO TRIAL BY JURY.
Section 9    Limitations on Personal Liability.  The limitations on personal liability of the shareholders, partners and members of the “Borrower” contained in Section 13.27 of the Loan Agreement shall apply to this Agreement and are incorporated herein by this reference,
Section 10    OneWest Bank Lease.  The Administrative Agent hereby acknowledges and agrees that the terms and provisions of Section 11.1(c) of the Loan Agreement are hereby void and of no further force and effect.
Section 11    Incorporation.

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a.  The following reference is hereby added to Schedule 6.24 of the Loan Agreement:
“Property Management Agreement, dated October 1, 2011, between KBSIII Las Cimas IV, LLC, a Delaware limited liability company, acting through KBS Capital Advisors LLC, a Delaware limited liability company, and Transwestern Property Company SW GP, L.L.C. dba Transwestern.”
b.  The following reference is hereby added to Schedule 7.1 of the Loan Agreement:
“Phase I Environmental Site Assessment, dated September 2011, prepared by ENVIRON International Corporation.”
[Signatures Follow on Next Page]

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Loan No. 1005669

IN WITNESS WHEREOF, New Borrower has caused this Agreement to be duly executed by its respective authorized officer, and the Administrative Agent, for the benefit of the Lenders, has caused the same to be accepted by its authorized officer, as of the day and year first above written.
KBSIII LAS CIMAS IV, LLC,
a Delaware limited liability company

By:    KBSIII REIT ACQUISITION II, LLC,
a Delaware limited liability company,
its sole member

By:    KBS REIT PROPERTIES III, LLC,
a Delaware limited liability company,
its sole member

By:    KBS LIMITED PARTNERSHIP III,
a Delaware limited partnership,
its sole member

By:    KBS REAL ESTATE INVESTMENT TRUST III, INC.,
a Maryland corporation,
its general partner

By:    /s/ Charles J. Schreiber, Jr.
Charles J. Schreiber, Jr.,
Chief Executive Officer

WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent

By: /s/ Bryan Stevens    
Name: Bryan Stevens
Its: Senior Vice President

SFI-714438v2

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