Document:

Exhibit
10.3

 

IRREVOCABLE UNDERTAKING

 

To:                              Atlantic
Industries (the Offeror)

PO Box 309GT

Ugland House

South Church
Street

George Town

Grand Cayman

Cayman Islands

 

From:                Gourmet
Grace International Limited (the Bondholder)

P.O. Box 957

Offshore Incorporations Centre

Road Town

Tortola

British Virgin
Islands

 

Warburg Pincus Private Equity IX, LP (the Guarantor)

c/o The Corporation Trust Company

Corporation Trust Center

1209 Orange Street

Wilmington

New Castle County

Delaware

USA 19801

 

31 August 2008

 

Dear Sirs,

 

Offer for China Huiyuan Juice Group Limited (Huiyuan)

 

The Bondholder understands that an offer is to be made by or on behalf
of the Offeror to acquire all the issued ordinary shares of Huiyuan (the Share Offer), to acquire all the
outstanding convertible bonds of Huiyuan (the Convertible
Bond Offer) and to cancel all the outstanding share options of
Huiyuan (the Option Offer and, together
with the Share Offer and the Convertible Bond Offer, the Offers),
substantially on the terms of the draft announcement attached as Schedule 2 to
this letter agreement (the Announcement)
or on such other terms as may be agreed between the Offeror and Huiyuan or as
may be required to comply with the requirements of the Securities and Futures
Commission of Hong Kong (the SFC), the
Hong Kong Code on Takeovers and Mergers (the Code),
The Stock Exchange of Hong Kong Limited (the Stock
Exchange) or the Rules Governing the Listing of Securities
on the Stock Exchange (the Listing Rules).  This letter agreement sets out the terms and
conditions on which the Bondholder will accept the Share Offer when it is made
and sets out certain undertakings to be given by the Offeror to the
Bondholder.  The Guarantor has agreed to
guarantee the performance by the Bondholder of its obligations under this
letter agreement.

 

A reference in this letter agreement to the Offers,
the Share Offer, the Convertible Bond Offer or the Option Offer  also includes any new,
increased, renewed or revised offers made by or on behalf of the Offeror to
acquire shares in Huiyuan, to acquire the outstanding convertible bonds of
Huiyuan or to cancel the share options of Huiyuan, as the case may be provided
that the terms of such offers are no less favourable to acceptors than the
terms set out in the Announcement.

 

Terms defined in Schedule 1 hereto shall have the same meaning in this
letter agreement.

 

1

 

Warranties

 

1.                                       The
Bondholder warrants to the Offeror, as at the date of this letter agreement and
the date the Share Offer becomes or is declared unconditional in all respects,
by reference to the facts and circumstances existing as at such dates
respectively, that:

 

(a)                                  it is the registered holder and beneficial owner of
US$2,326,000 of series B zero coupon convertible bonds due 2011 of face value
US$1,000 each issued by Huiyuan (the Series B Convertible
Bonds) which are convertible into 3,541,951 Shares and it holds
the Series B Convertible Bonds free of any Encumbrances;

 

(b)                                 it is a party to a call option with ABN AMRO Bank
N.V., Hong Kong Branch (ABN)
pursuant to which it is entitled to call for US$65,000,000 of series A 2.5 per
cent. convertible bonds due 2011 of face value US$1,000 each issued by Huiyuan
(the Series A Convertible Bonds),
which are convertible into 98,979,706 Shares;

 

(c)                                  through the aggregate of the interests set out in
paragraphs 1(a) and 1(b) above, it has an interest in
US$67,326,000 in aggregate of Series B Convertible Bonds and Series A
Convertible Bonds (together, the Convertible Bonds
(which expression shall include any other Convertible Bonds issued after
the date of this letter agreement and attributable to or derived from the
Convertible Bonds)), which are convertible into 102,521,657 ordinary shares of
US$0.00001 each in the capital of Huiyuan (the Huiyuan
Shares);

 

(d)                                 it is entitled to sell and transfer, or procure the
sale and transfer of the full legal and beneficial ownership of the Series B
Convertible Bonds and, upon receipt of the Series A Convertible Bonds from
ABN, of the Series A Convertible Bonds to the Offeror pursuant to and in
accordance with the terms and conditions of the Convertible Bond Offer, free
from Encumbrances and with all rights attaching thereto as at the date of the
Convertible Bond Offer and thereafter;

 

(e)                                  it will, upon conversion of the Convertible Bonds into
the Huiyuan Shares, be entitled to sell and transfer, or procure the sale and
transfer of, the full legal and beneficial ownership of the Huiyuan Shares to
the Offeror pursuant to and in accordance with the terms and conditions of the
Share Offer, free from Encumbrances and with all rights attaching thereto as at
the date of the Share Offer (including the right to all dividends, and other
distributions, declared, made or paid after the date of the Announcement) and
thereafter;

 

(f)                                    the Huiyuan Shares to be held by it will have been
validly allotted and issued and will be fully paid or credited as fully paid
and such Huiyuan Shares will be legally or beneficially owned by it free from
Encumbrances;

 

(g)                                 other than as set out in this paragraph 1,
neither it nor any of its Associates (as defined in the Listing Rules), has any
interest in any securities of Huiyuan or any rights to subscribe for, purchase
or otherwise acquire any such securities;

 

(h)                                 the acceptance by the Bondholder of the Share Offer in
accordance with this letter agreement will not result in a breach of,
constitute a default under, or conflict with, the terms of the Convertible
Bonds;

 

(i)                                     its has, subject to satisfaction of the Pre-Condition,
obtained or satisfied all corporate, regulatory and other approvals, and any
other conditions, necessary to execute and perform its obligations under this
letter agreement and: (i) once it has 

 

2

 

called
for the Series A Convertible Bonds and converted all the Convertible Bonds
then held by it into Huiyuan Shares pursuant to paragraphs 5(a) and
5(b), to accept the Share Offer; or (ii) if paragraph 5(c) applies,
to accept the Convertible Bond Offer in respect of all the Convertible Bonds
then held by it;

 

(j)                                     the execution and delivery by it of this letter
agreement, and the performance and completion of this letter agreement by it:

 

(i)                                     will not, subject to satisfaction of the
Pre-Condition, infringe any applicable laws;

 

(ii)                                  will not result in any breach of the terms of, or
constitute a default under, its constitutional documents or any instrument,
agreement or governmental, regulatory or other judgment, decree or order to
which it is a party or by which it is bound; and

 

(iii)                               will not conflict with any of its certificates,
licences or permits that enable it to carry on the business or operations
operated by it;

 

(k)                                  this letter agreement constitutes legal, valid and
binding obligations of it enforceable in accordance with its terms.

 

2.                                       The
Guarantor warrants to the Offeror, as at the date of this letter agreement and
the date the Share Offer becomes or is declared unconditional in all respects,
by reference to the facts and circumstances existing as at such dates
respectively:

 

(a)                                  it has, subject to the satisfaction of the
Pre-Condition, obtained or satisfied all corporate, regulatory and other
approvals, and any other conditions, necessary to execute and perform its
obligations under this letter agreement;

 

(b)                                 the execution and delivery by it of this letter
agreement, and the performance and completion of this letter agreement by it:

 

(i)                                     will not, subject to satisfaction of the
Pre-Condition, infringe any applicable laws;

 

(ii)                                  will not result in any breach of the terms of, or
constitute a default under, its constitutional documents or any instrument,
agreement or governmental, regulatory or other judgment, decree or order to
which it is a party or by which it is bound; and

 

(iii)                               will not conflict with any of its certificates,
licences or permits that enable it to carry on the business or operations
operated by it;

 

(c)                                  this letter agreement constitutes legal, valid and
binding obligations of it enforceable in accordance with its terms.

 

3.                                       Each
of the Bondholder and the Guarantor acknowledges that the Offeror has entered
into this letter agreement in reliance upon the warranties in paragraphs 1
and 2.

 

Dealings and undertakings

 

4.                                       The
Bondholder undertakes to the Offeror that before the Offers close, lapse or are
withdrawn, it shall not:

 

3

 

(a)                                  sell, transfer, Encumber, or otherwise dispose of any
interest in any Convertible Bonds or Huiyuan Shares, other than pursuant to
accepting the Share Offer or the Convertible Bond Offer;

 

(b)                                 accept any other offer in respect of the Convertible
Bonds or the Huiyuan Shares;

 

(c)                                  vote in favour of any resolution to approve any scheme
of arrangement of Huiyuan which is proposed in competition with the Offers; or

 

(d)                                 except upon exercise of its rights of conversion under
the Convertible Bonds, acquire, and shall not permit any person acting in
concert with it, to acquire any Shares or any warrants, options, subscription
rights or other rights to subscribe for, acquire or convert into such Shares or
any interest therein or agree to do so without the prior written consent of the
Offeror.

 

5.                                       In
consideration of the Offeror’s undertakings in paragraph 7, the Bondholder
undertakes to the Offeror that, once the Share Offer has become or has been
declared unconditional in all respects:

 

(a)                                  it shall exercise its right under the call option with
ABN to call for the Series A Convertible Bonds to be delivered to it; and

 

(b)                                 (i)                                     upon delivery to it of the Series A Convertible
Bonds, it shall forthwith take all steps required of it under the terms of the Series A
Convertible Bonds to convert all Series A Convertible Bonds into Shares;
and

 

(ii)                                  it shall forthwith take all steps required of it under
the terms of Series B Convertible Bonds to convert all Series B
Convertible Bonds into Shares;

 

and,
in each case:

 

(x)                                  upon becoming the registered holder of all or any of
the Huiyuan Shares, it shall accept the Share Offer in respect of all such
Huiyuan Shares in accordance with the procedure for acceptance set out in the
formal offer document to be issued by or on behalf of the Offeror and Huiyuan
in connection with the Offers (Composite Document)
not later than seven days after becoming the registered holder of such Huiyuan
Shares;

 

(y)                                 it shall not withdraw any acceptances of the Share
Offer; and

 

(z)                                 it shall sell all such Huiyuan Shares free of any
Encumbrance and together with all rights of any nature attaching to those
Shares, including the right to all dividends, and other distributions,
declared, made or paid on or after the date of the Announcement; or

 

(c)                                  if either: (i) upon delivery to it of the Series A
Convertible Bonds, there is insufficient time for it to convert the Series A
Convertible Bonds into Shares according to the timetable of the Offers as
stipulated by the Code; or (ii) it is prevented or is unable to convert
the Series A Convertible Bonds into Shares for any other reason:

 

(i)                                     it shall accept the Convertible Bond Offer in respect
of all the Series A Convertible Bonds in accordance with the procedure for
acceptance set 

 

4

 

out in the Composite
Document not later than two days after becoming the registered hold of the Series A
Convertible Bonds;

 

(ii)                                it shall not withdraw any acceptances of the
Convertible Bond Offer; and

 

(iii)                             it shall sell the Series A Convertible Bonds free
from any Encumbrance of any nature whatsoever and together with all rights of
any nature attaching to those Convertible Bonds, including the right to all
interest payments paid on or after the date of the Announcement.

 

Documentation

 

6.                                       The
Bondholder and the Guarantor consent to:

 

(a)                                  this letter agreement being disclosed to the SFC and
the Stock Exchange;

 

(b)                                 the inclusion of references to them, and particulars
of this letter agreement and their respective holdings of relevant securities
of Huiyuan being included in the Announcement and the Composite Document; and

 

(c)                                  this letter agreement being made available for
inspection as required by Note 1 to Rule 8 of the Code or the Listing
Rules.

 

Offeror’s undertakings

 

7.                                       The
Offeror agrees with the Bondholder that:

 

(a)                                  it will make the Offers in accordance with the
Announcement and the Announcement will be released substantially in the form
attached (or in such other form as may be agreed between the Offeror and the
Bondholder or as may be required to comply with the requirements of the SFC or
the Stock Exchange) within ten Business Days of the date of this letter
agreement (or such later date as the Offeror and the Bondholder may agree);

 

(b)                                 it shall, at its own cost, use all reasonable efforts
to ensure that the Pre-Condition is fulfilled promptly after the date of the
Announcement, and in any event, no later than the First Long Stop Date;

 

(c)                                  without prejudice to the generality of
paragraph 7(b) above, it shall initiate contact with the relevant
Governmental Authority relating to the satisfaction of the Pre-condition within
seven days of the date of the Announcement with a view to making the PRC Antitrust
Filing within 20 days of the date of the Announcement; and

 

(d)                                 it shall not announce a change to the initial First
Long Stop Date without the prior consent of the Bondholder.

 

8.                                       Each
party shall regularly review with the other parties and their advisers the
progress of any notifications or filings
submitted in order to satisfy the Pre-Condition with a view to obtaining
clearance from any Governmental Authority at the earliest reasonable
opportunity and, in particular, the Offeror shall inform the Bondholder and the
Guarantor within two Business Days of it submitting any notification or filing,
receiving any response from any Governmental Authority or engaging in any
material communications with any Governmental Authority (in each case, in
connection with the Pre-Condition), together with a brief summary of such
notification, filing, response or communication.

 

5

 

Termination

 

9.                                       This
letter agreement shall automatically terminate if:

 

(a)                                  the Announcement is not released within ten Business
Days of the date of this letter agreement (or such later date as the Offeror
and the Bondholder may agree);

 

(b)                                 the Offers are not made (by posting of the Composite
Document) by the Latest Despatch Date;

 

(c)                                  the Offers include any material terms or are subject
to any conditions other than those set out in the draft of the Announcement; or

 

(d)                                 the Share Offer lapses or is withdrawn.

 

10.                                 Termination
of this letter agreement shall be without prejudice to a party’s accrued rights
and remedies, obligations and liabilities under this letter agreement as at the
date of such termination.

 

Guarantee

 

11.                                 In
consideration of the Bondholder entering into this letter agreement at the
request of the Guarantor, the Guarantor hereby unconditionally and irrevocably
guarantees to the Offeror, as primary obligations of it:

 

(a)                                  the due and punctual performance and observance by the
Bondholder of its obligations, commitments and undertakings under this letter
agreement;  and

 

(b)                                 if and whenever the Bondholder shall be in default in
the payment of any amount payable under or in connection with this letter
agreement or of any damages for breach of the same or any of the Warranties or
any other warranties, representations or undertakings contained herein after
being given notice to that effect by the Offeror, to pay to the Offeror all
such amounts that are payable by the Bondholder as though the Guarantor instead
of the Bondholder was expressed to be the principal debtor.

 

12.                                 The
liability of the Guarantor under this letter agreement shall not be released or
diminished by any arrangements or alterations of terms or any forbearance,
neglect or delay in seeking performance of the obligations hereby imposed or
any granting of time or other indulgence for such performance.

 

13.                                 The
guarantee under paragraph 11 is to be a continuing security to the Offeror
for all obligations, commitments and undertakings on the part of the Bondholder
under this letter agreement.  Any amount
not paid by the Bondholder and not recoverable from the Guarantor on the basis
of a guarantee (whether because of any legal limitation, disability or
incapacity on the part of the Bondholder or any other matter or thing whether
known to the Offeror or not) shall nevertheless be recoverable from the
Guarantor on the basis of an indemnity.

 

14.                                 As a
separate and independent obligation, the Guarantor undertakes, as principal
obligor and not only as surety, that in the event, the Bondholder does not
perform in full its obligations, commitments and undertakings under this letter
agreement, the Guarantor will itself then duly and punctually perform the
obligations, commitments and undertakings of the Bondholder under this letter
agreement as if all such obligations, commitments and undertakings were
obligations, commitments and undertakings of the Guarantor.

 

6

 

Appointment of attorney

 

15.                                 In
order to secure the performance of the Bondholder’s obligations under paragraph
5, the Bondholder hereby irrevocably appoints any director for the time being
of the Offeror to be its attorney and/or agent in its name and on its behalf to
execute a form or forms of acceptance and/or such other documents and do such
other acts and things as may be necessary to accept (or procure the acceptance
of) the Share Offer in respect of the Huiyuan Shares and/or accept the
Convertible Bond Offer in respect of the Convertible Bonds PROVIDED THAT such
director shall only be authorised to execute such documents and perform such
actions on the Bondholder’s behalf if the Bondholder has failed to comply with
its obligations under paragraph 5.

 

Further assurance

 

16.                                 At
any time after the date of this letter agreement, each party shall, and shall
use all reasonable endeavours to procure that any necessary third party shall,
execute such documents and do such acts and things as any other party may
reasonably require for the purpose of giving that party the full benefit of all
the provisions of this letter agreement in their favour.

 

Undertaking survives

 

17.                                 The
warranties under paragraphs 1 and 2 and all other provisions of this
letter agreement, insofar as the same shall not have been performed upon the
Share Offer becoming, or being declared to be, unconditional shall remain in
full force and effect.

 

General

 

18.                                 This
letter agreement may be executed in any number of separate counterparts, each
of which is an original but all of which together shall constitute one and the
same instrument.

 

19.                                 The
failure to exercise or delay in exercising a right or remedy provided by this
letter agreement or by law does not impair or constitute a waiver of the right
or remedy or an impairment of a waiver of other rights or remedies.  No single or partial exercise of a right or
remedy provided under this letter agreement or by law prevents further exercise
of the right or remedy or the exercise of another right or remedy.

 

20.                                 If
at any time any provision of this letter agreement is or becomes illegal,
invalid or unenforceable under the laws of any jurisdiction, that shall not
affect:

 

(a)                                  the legality, validity or enforceability in that
jurisdiction of any other provision of this letter agreement; or

 

(b)                                 the legality, validity or enforceability under the law
of any other jurisdiction of that or another provision of this letter
agreement.

 

21.                                 Each
party agrees that, if it fails to perform or breaches any of the obligations
under this letter agreement, damages may not be an adequate remedy and
accordingly, the parties to whom any such unperformed or breached obligation is
owed shall be entitled to the remedy of specific performance.

 

Governing law and jurisdiction

 

22.                                 This
letter agreement shall be governed by and construed in accordance with law of
Hong Kong and each of the Bondholder, the Guarantor and the Offeror each submit
to the 

 

7

 

exclusive jurisdiction of
the courts of Hong Kong for all purposes in connection with this letter
agreement.

 

23.                                 Process
by which any proceedings are begun may be served on the Offeror by being served
on The Coca-Cola Export Corporation at 38 Floor, Shell Tower, Times Square, 1
Matheson Street, Causeway Bay, Hong Kong, marked for the attention of the
General Counsel, Pacific Group, with a copy to be sent to the Offeror on fax
number 1-404-598-7791, marked for the attention of the Vice President and
Director of Mergers and Acquisitions.

 

24.                                 Process
by which any proceedings are begun may be served on the Bondholder and/or the
Guarantor by being served on Warburg Pincus Asia L.L.C at Suite 6703, IFC
Two, 8 Finance Street, Hong Kong, marked for the attention of Mr. Chang
Sun.

 

8

 

Yours faithfully,

 

 

	
  /s/ Timothy J. Curt

  	
   

  
	
  For and on
  behalf of

  
	
  GOURMET
  GRACE INTERNATIONAL LIMITED

  
	
   

  
	
  Name: Timothy J. Curt

  
	
   

  
	
  Title: Director

  

 

	
  /s/ Timothy J. Curt

  	
   

  
	
  For and on
  behalf of

  
	
  WARBURG
  PINCUS PRIVATE EQUITY IX, LP

  
	
   

  
	
  Name: Timothy J. Curt

  
	
   

  
	
  Title:
  Authorized Representative

  

 

 

AGREED AND ACCEPTED BY:

 

	
  /s/ Paul Etchells

  	
   

  
	
  For and on
  behalf of

  
	
  ATLANTIC
  INDUSTRIES

  
	
   

  
	
  Name: Paul Etchells

  
	
   

  
	
  Title:
  Authorized Attorney

  

 

9

 

SCHEDULE
1

 

DEFINITIONS

 

In this letter agreement:

 

Business Days  means a day on which banks are open for the transaction
of normal banking business in Hong Kong and in the PRC (excluding Saturday and
Sunday);

 

Encumbrance  means a mortgage, charge, pledge, lien, option,
restriction, right of first refusal, right of pre-emption, third-party right or
interest, or other encumbrance or security interest having similar effect;

 

Executive
means the Executive Director of the Corporate Finance Division of the SFC;

 

First Long Stop Date
means the date which is 90 days after the date of the PRC Antitrust Filing,
which date shall be automatically extended to the date which is 180 days after
the date of the PRC Antitrust Filing if the Pre-Condition is not satisfied by
such date (or any other date as may be announced by the Offeror and approved by
the Executive and the Bondholder);

 

Governmental Authority  means any national, state, municipal or local
government (including any subdivision, court, administrative agency or
commission or other authority thereof) or any quasi governmental or private
body exercising any regulatory, taxing, importing or other governmental or
quasi governmental authority in the PRC;

 

Hong Kong
means the Hong Kong Special Administrative Region of the PRC;

 

Latest Despatch Date
means the later of 21 days after the date of the Announcement and the date
which is 7 days after the Pre-Condition is satisfied (or such later date to
which the Executive, at the request of the Offeror, may consent);

 

PRC  means the People’s Republic of China;

 

PRC Antitrust Filing
means the submission of the formal notification pursuant to The Antitrust Laws
of the PRC to The Ministry of Commerce of the PRC, Department of Treaty and
Law, Antimonopoly Investigations Office in connection with the Share Offer;

 

Pre-Condition
means the pre-condition to the making of the Share Offer as described in the
Announcement; and

 

Shares
means the ordinary shares of US$0.00001 each in the share capital of Huiyuan.

 

10

 

SCHEDULE
2

 

ANNOUNCEMENT

 

11Exhibit 10.4

 

DEED OF NON-COMPETITION

 

THIS DEED is
made on 31 August 2008

 

BY

 

(1)                                 MR. ZHU XINLI of c/o Beijing Huiyuan Beverage &
Food Group Limited, Beixiaoying Town, Shunyi District, Beijing, People’s
Republic of China (the “Covenantor”).

 

IN FAVOUR OF

 

(2)                                 ATLANTIC INDUSTRIES, a company incorporated under the laws of
the Cayman Islands whose registered office is at PO Box 309GT, Ugland House,
South Church Street, George Town, Grand Cayman, Cayman Islands, British West
Indies (the “Offeror”); and

 

(3)                                 CHINA HUIYUAN JUICE GROUP LIMITED, a company incorporated in the laws of the
Cayman Islands, whose registered office is at Scotia Centre, 4th
Floor, P.O. Box 2804, George Town, Grand Cayman, Cayman Islands (the “Company”), for itself and for the benefit of each Group
Company.

 

WHEREAS:

 

(A)                             The Company is principally engaged in the
business of producing and selling ready-to-drink beverages including fruit
juices, vegetable juices, mixed fruits and vegetable juices, ready-to-drink tea
and bottled water.

 

(B)                               The Offeror proposes to make a cash offer to
acquire all the issued ordinary shares of the Company, to acquire all the
outstanding convertible bonds of the Company and to cancel all the outstanding
share options of the Company (collectively, the “Offers”).

 

(C)                               The Covenantor is an indirect substantial
shareholder of the Company and the Chairman of the board of directors of the
Company at the date of this Deed.

 

(D)                              The Covenantor has undertaken to the Offeror
and the Company (for itself and for the benefit of each Group Company) not to
engage in any competing interest according to the terms and conditions of this
Deed.

 

THIS DEED WITNESSES as follows:

 

1.                                      INTERPRETATION

 

1.1                                In this
Deed:

 

	
  “ABN AMRO”

  	
   

  	
  means ABN AMRO Bank N.V., Hong Kong Branch, a licensed corporation
  under the SFO and the financial adviser to the Offeror in connection with the
  Offers;

  
	
   

  	
   

  	
   

  
	
  “Affiliate”

  	
   

  	
  means, with respect to any
  Person, any other Person Controlling, Controlled by or under common Control
  with such Person, and with respect to an individual Person, means that
  individual’s relative,
  that is any spouse and any child (including adopted child and step-child), as
  well as any entity which is Controlled by any of the foregoing acting singly
  or

  

 

1

 

	
   

  	
   

  	
  together as well as such entity’s Affiliates;

  
	
   

  	
   

  	
   

  
	
  “Arbitration Board”

  	
   

  	
  has the meaning given to it under clause 8;

  
	
   

  	
   

  	
   

  
	
  “Arbitration Rules”

  	
   

  	
  has the meaning given to it under clause 8;

  
	
   

  	
   

  	
   

  
	
  “Business”

  	
   

  	
  means the business of producing, distributing, selling and marketing
  ready-to-drink beverages, including fruit juices, vegetable juices, mixed
  fruits and vegetable juices, ready-to-drink tea and bottled water operated by
  the Group, other than the business of producing milk;

  
	
   

  	
   

  	
   

  
	
  “Business Day”

  	
   

  	
  means a day on which banks are open for the transaction of normal
  banking business in Hong Kong and in the PRC (excluding Saturday and Sunday);

  
	
   

  	
   

  	
   

  
	
  “Completion”

  	
   

  	
  means the date on which the Share Offer becomes or is declared
  unconditional in all respects;

  
	
   

  	
   

  	
   

  
	
  “Composite Document”

  	
   

  	
  means the composite offer and response document to be issued by or on
  behalf of the Offeror and the Company in accordance with the Takeovers Code
  containing, among other things, details of the Offers, the terms and
  conditions of the Offers and the acceptance and transfer forms in respect of
  the Offers;

  
	
   

  	
   

  	
   

  
	
  “Control”

  	
   

  	
  of a Person means:
  (i) with respect to a corporate Person, direct or indirect ownership of
  more than thirty percent of the outstanding voting securities of such corporate
  Person or the ability to appoint more than one-third of the directors of the
  board or equivalent governing body of such Person or the ability to direct or
  cause the direction of the management and policies of such Person;
  (ii) with respect to a non-corporate Person, the comparable voting
  interest (as set forth in (i) above) for such non-corporate Person;
  (iii) the possession, direct or indirect, of the power to direct or
  cause the direction of the management and policies of a Person; or
  (iv) the operational or practical control of a Person; and the terms “Controls”, “Controlling”
  and “Controlled” shall have corresponding
  meanings;

  
	
   

  	
   

  	
   

  
	
  “Dispute”

  	
   

  	
  has the meaning given to it under clause 8;

  
	
   

  	
   

  	
   

  
	
  “Executive”

  	
   

  	
  means the Executive Director of the Corporate Finance Division of the
  Hong Kong Securities and Futures Commission or any delegate of the Executive
  Director;

  
	
   

  	
   

  	
   

  
	
  “Governmental Entity”

  	
   

  	
  means any competent
  government or governing body of any international or supranational
  organisation, nation, state, province, city, municipality, town or locality
  or any political or administrative subdivision thereof; any department,
  agency, commission, ministry, secretariat, court or other entity exercising
  executive, legislative, judicial, regulatory or

  

 

2

 

	
   

  	
   

  	
  administrative functions
  of or pertaining to government, and the governing body of any securities
  exchange;

  
	
   

  	
   

  	
   

  
	
  “Group”

  	
   

  	
  means the Company and its Subsidiaries;

  
	
   

  	
   

  	
   

  
	
  “Group Company”

  	
   

  	
  means the Company or a Subsidiary of the Company;

  
	
   

  	
   

  	
   

  
	
  “HKIAC”

  	
   

  	
  has the meaning given to it under clause 8;

  
	
   

  	
   

  	
   

  
	
  “Hong Kong”

  	
   

  	
  means the Hong Kong Special Administrative Region of the PRC;

  
	
   

  	
   

  	
   

  
	
  “Person”

  	
   

  	
  means an individual, a
  partnership, a corporation, an association, a joint stock company, a trust, a
  joint venture, an unincorporated organisation, Governmental Entity or any
  other entity;

  
	
   

  	
   

  	
   

  
	
  “PRC”

  	
   

  	
  means the People’s Republic of China;

  
	
   

  	
   

  	
   

  
	
  “Restricted Period”

  	
   

  	
  means each of the following periods:

  

  (a)  from Completion until one year
  after Completion; and

  

  (b)  one year beginning on the first anniversary
  of Completion;

  
	
   

  	
   

  	
   

  
	
  “Second Long Stop Date”

  	
   

  	
  means the latest date on which the Offeror can declare the Share
  Offer unconditional as to acceptances, which is the 60th day after the date
  of posting of the Composite Document (or such later date to which the
  Executive may consent);

  
	
   

  	
   

  	
   

  
	
  “SFO”

  	
   

  	
  means the Securities and Futures Ordinance, Chapter 571 of the Laws
  of Hong Kong;

  
	
   

  	
   

  	
   

  
	
  “Share Offer”

  	
   

  	
  means the possible voluntary conditional cash offer by ABN AMRO on
  behalf of the Offeror for all the issued Shares as part of the Offers;

  
	
   

  	
   

  	
   

  
	
  “Shares”

  	
   

  	
  means the ordinary shares of US$0.00001 each in the share capital of
  the Company;

  
	
   

  	
   

  	
   

  
	
  “Stock Exchange”

  	
   

  	
  means The Stock Exchange of Hong Kong Limited;

  
	
   

  	
   

  	
   

  
	
  “Subsidiary”

  	
   

  	
  means a company over which the Company has Control;

  
	
   

  	
   

  	
   

  
	
  “Takeover Code”

  	
   

  	
  means the Hong Kong Code on Takeovers and Mergers; and

  
	
   

  	
   

  	
   

  
	
  “Upstream Business”

  	
   

  	
  means the business carried on as at the date of this Deed by certain
  Affiliates of the Covenantor (but not any Group Companies) relating to the
  production, supply and distribution of recyclable containers, external
  packaging and raw materials for juice production.

  

 

3

 

1.2                                In this Deed,
unless the context requires otherwise:

 

(a)                                  the clause headings are inserted for
convenience only and do not affect its interpretation;

 

(b)                                 a reference to this Deed or another
instrument includes any variation or replacement of either of them;

 

(c)                                  words in the singular include the
plural and vice versa; and

 

(d)                                 use of any gender includes the other
genders.

 

2.                                      CONDITIONS

 

2.1                                Except for
this clause 2 (Conditions), clauses 6 (General), 7 (Notices) and 8 (Governing
Law and Arbitration), this Deed is conditional upon the Share Offer becoming or
being declared unconditional in all respects.

 

2.2                                 If the
condition set out in clause 2.1 is not fulfilled or waived by the Offeror by
the Second Long Stop Date, this Deed (other than this clause 2 (Conditions), clauses
6 (General), 7 (Notices) and 8 (Governing Law and Arbitration)) shall from such
date have no effect and the Covenantor shall not have any liability under this
Deed (other than liability pursuant to any antecedent breaches).

 

3.                                      UNDERTAKINGS OF THE COVENANTOR

 

3.1                                During any
of the Restricted Periods, the Covenantor hereby irrevocably undertakes to the
Offeror and the Company (for itself and for the benefit of each Group Company)
that, subject to clause 3.2 below, he shall not, and shall
procure that none of his Affiliates shall, within the PRC:

 

(a)                                  conduct,
carry on or promote (whether on its own account, in partnership, in joint
venture or as employee or agent of or manager for any other Person) any
business or operation similar to or competitive with the Business;

 

(b)                                 be
concerned or interested in any business or operation similar to or competitive
with the Business (directly or through any interposed body corporate, trust,
partnership or entity) as trustee, principal, agent, shareholder, unitholder,
independent contractor, consultant, adviser or in any other capacity; or

 

(c)                                  provide
any business or entity any financial assistance which assists that business or
entity to engage in any business or operation similar to or competitive with
the Business.

 

3.2                                Nothing in clause 3.1 shall prevent,
during any of the Restricted Periods:

 

(a)                                  the Covenantor and any of his Affiliates from holding shares or units
that constitute in aggregate 10% or less of the
issued capital or units of a company or trust listed on any recognised stock
exchange, provided that such holding is a passive investment and none of the
Covenantor nor any of his Affiliates is a director of, or has any management,
consulting or other role with, the relevant
company or trust; or

 

4

 

(b)                                 the Covenantor and any of his
Affiliates from continuing to operate the Upstream Business.

 

4.                                      RESTRAINTS CUMULATIVE

 

Each of the restraints in
clause 3.1 resulting from the various combinations of the Restricted Periods is
a separate, severable and independent restraint and:

 

(a)                                  clause 6.2
applies to each of those restraints; and

 

(b)                                 the
invalidity or unenforceability of any of the restraints in clause 3.1 does not
affect the validity or enforceability of any of the other restraints in clause
3.1.

 

5.                                      RESTRAINTS REASONABLE AND BENEFIT

 

5.1                                 The Covenantor acknowledges and
agrees that each of the restraints in clause 3.1 is reasonable in its extent
(as to duration, geographical area and restrained conduct) having regard to,
and goes no further than is reasonably necessary to protect, the interests of
the Offeror and the Company (and of each Group Company).

 

5.2                                 Each of the restraints in clause 3.1
is being given by the Covenantor to:

 

(a)                                  the Offeror for the benefit of the
Offeror; and

 

(b)                                 the Company (acting for itself and
as trustee for each Group Company) for the benefit of the Company and for each
Group Company.

 

6.                                      GENERAL

 

6.1                                 The
failure to exercise or delay in exercising a right or remedy provided by this
Deed or by law does not impair or constitute a waiver of the right or remedy or
an impairment of a waiver of other rights or remedies.  No single or partial exercise of a right or
remedy provided under this Deed or by law prevents further exercise of the
right or remedy or the exercise of another right or remedy.

 

6.2                                 Any
provision of this Deed which is unenforceable or partly unenforceable is, where
possible, to be severed to the extent necessary to make this Deed enforceable,
unless this would materially change the intended effect of this Deed.

 

6.3                                 If at any
time any provision of this Deed is or becomes illegal, invalid or unenforceable
under the laws of any jurisdiction, that shall not affect:

 

(a)                                  the
legality, validity or enforceability in that jurisdiction of any other
provision of this Deed; or

 

(b)                                 the
legality, validity or enforceability under the law of any other jurisdiction of
that or another provision of this Deed.

 

6.4                                 This Deed
shall be binding on and enure for the benefit of the successors in title of
each of the Covenantor and the beneficiaries of this Deed.

 

5

 

7.                                      NOTICES

 

7.1                                A notice
or other communication under or in connection with this Deed (a “Notice”) shall be in writing; in the English language; and
delivered personally or sent by registered post (or air mail if overseas) or by
fax to the party due to receive the Notice to the address set out in clause
7.3.

 

7.2                                Unless
there is evidence that it was received earlier, a Notice is deemed given if:

 

(a)                                  delivered
personally, when left at the address referred to in clause 7.3;

 

(b)                                 sent by
mail, except air mail, two Business Days after posting it;

 

(c)                                  sent by
air mail, six Business Days after posting it; and

 

(d)                                 sent by
fax, when confirmation of its error-free transmission has been recorded by the
sender’s fax machine,

 

provided that in each case
where delivery by hand or by fax occurs after 6:00 p.m. on a Business Day
or on a day which is not a Business Day, service shall be deemed to occur at
9:00 a.m. on the next following Business Day.  References to time in this clause 7.2 are to
local time in the country of the addressee.

 

7.3                                For the
purposes of this clause 7, Notices should be sent as follows:

 

(i)            in the
case of the Company, to the Company at Huiyuan Road, Beixiaoying Town, Shunyi
District, Beijing, the People’s Republic of China or on fax number +8610 6048
9047, marked for the attention of Chief Financial Officer;

 

(ii)           in the
case of the Offeror, to the Offeror, c/o The Coca-Cola Company, NAT 456, P.O. Box
1731, Atlanta, Georgia 30301 United States of America or on fax number
1-404-598-7791, marked for the attention of the Vice President and Director of
Mergers and Acquisitions; and

 

(iii)          in the
case of the Covenantor, to the Covenantor at c/o Beijing Huiyuan Beverage &
Food Group Limited, Beixiaoying Town, Shunyi District, Beijing, People’s
Republic of China or on fax number +8610 6048 9047.

 

8.                                      GOVERNING LAW AND ARBITRATION

 

8.1                                This Deed
shall be governed by and construed in accordance with the laws of Hong Kong.

 

8.2                                 Any
dispute or claim arising out of or in connection with or relating to this Deed
(a “Dispute”), or the interpretation,
breach, termination or invalidity of this Deed including the validity, scope
and enforceability of this arbitration provision, shall be finally resolved by
arbitration in Hong Kong under the auspices of the Hong Kong International
Arbitration Centre (“HKIAC”) in
accordance with the UNCITRAL Arbitration Rules and the HKIAC Procedures
for the Administration of International Arbitration in force at the date of
this Deed (the UNCITRAL Arbitration Rules and the HKIAC Procedures
collectively referred to as the “Arbitration Rules”).
There shall be three arbitrators (the “Arbitration Board”).  If there are only two parties to the
arbitration, each party shall appoint one arbitrator and the two arbitrators so
appointed shall appoint the third arbitrator, who shall serve as the presiding
arbitrator of the Arbitration Board.  If
there are more than two parties to the arbitration, the parties shall endeavour
to agree on the procedure for appointing the

 

6

 

arbitrators
and if within thirty (30) days of receipt of the Notice of Arbitration, the
parties have not reached an agreement on the procedure for appointing the
arbitrators, all the arbitrators shall be appointed by the HKIAC as soon as
practicable upon the receipt of a party’s request to the HKIAC.  The parties shall not be limited in their
selection of arbitrators to any prescribed list; however, all arbitrators shall
be impartial and independent.

 

8.3                                The
arbitration proceedings shall be conducted and the award shall be rendered in
English (with a simultaneous translation of the proceedings into Chinese if so
requested by any party).  If the
Arbitration Rules are in conflict with the provisions of this section,
including the provisions concerning the appointment of arbitrators, the
provisions of this section shall prevail. The arbitrators shall decide any
Dispute submitted by the parties to the arbitration in accordance with the governing
law specified in clause 8.1.  Judgment
upon any arbitral award rendered hereunder may be entered in any court having
jurisdiction, or application may be made to such court for a judicial
acceptance of the award and an order of enforcement, as the case may be.

 

8.4                                The
parties to the Dispute agree to facilitate the arbitration by: (i) cooperating
in good faith to expedite the conduct of the arbitration; (ii) conducting
arbitration hearings to the greatest extent possible on successive Business
Days; and (iii) using their best efforts to observe the time periods
established by the Arbitration Rules or by the Arbitration Board for the
submission of evidence and briefs.

 

8.5                                 In order to
facilitate the comprehensive resolution of related Disputes, all claims that
arise under or in connection with this Deed may be brought in a single
arbitration.  Upon the request of any
party to such arbitration, the Arbitration Board for such proceeding shall be
entitled to consolidate any arbitration proceeding constituted under this Deed
with any other arbitration proceeding constituted under this Deed,  if the Arbitration Board determines that: (i) there
are issues of fact or law common to the proceedings so that a consolidated
proceeding would be more efficient than separate proceedings; and (ii) no
party would be unduly prejudiced as a result of such consolidation through
undue delay or otherwise.  No such
consolidation shall take place unless the parties to all the relevant
arbitrations are identical.  In the event
of different rulings on this question by the Arbitration Board constituted
hereunder and another Arbitration Board constituted under this Deed, the ruling
of the Arbitration Board constituted first in time shall control. Such
Arbitration Board shall serve as the tribunal for any consolidated arbitration,
and shall have the power to make all orders consequential upon and for the
purposes of facilitating the consolidation of the arbitrations, including
orders as to costs.

 

8.6                                The costs
and expenses of the arbitration, including the fees of the Arbitration Board,
shall be borne equally by each party to the Dispute, and each party shall pay
its own fees, disbursements and other charges of its counsel; provided that the
Arbitration Board shall have the right to allocate the costs and expenses
between each party as the Arbitration Board deems equitable.

 

8.7                                The award
of the Arbitration Board shall be final and binding upon the disputing parties,
and any party to the Dispute may apply to a court of competent jurisdiction for
enforcement of such award.  Any party to
the Dispute shall, prior to the appointment of the Arbitration Board, be
entitled to seek preliminary injunctive relief, to prevent irreparable harm
from any court of competent jurisdiction pending the constitution of the
Arbitration Board.  Without prejudice to
such provisional remedies that may be granted by a national court, the
Arbitration Board shall have full authority to grant provisional remedies, to
order a party to seek modification or vacation of an injunction issued by a
national court, and to

 

7

 

award
damages for the failure of any party to respect the Arbitration Board’s orders
to that effect.

 

EXECUTED as a
deed.

 

 

	
  Signed, sealed and delivered by MR. ZHU

  XINLI in the presence of:

  
	
   

  
	
  /s/ Zhu Xin Li

  	
   

  
	
  Witness

  

 

8

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