Document:

Exhibit 10.9

Indalex Holdings Finance, Inc. Stock Option

Grant Agreement

This
Grant Agreement, dated as of May 31, 2006 (the “Effective Date”), evidences the
grant of an option pursuant to the provisions of the 2006 Stock Option Plan
(the “Plan”) of Indalex Holdings Finance, Inc. (the “Company”) to the individual whose name
appears below (the “Optionee”), covering the specific number of shares of
Non-Voting Common Stock (the “Shares”) set forth below and on the following
terms and conditions:

1.             Name of the Optionee:

2.             Number of Shares subject to this option:

3.             Exercise price per Share subject to this
option:

4.             Date of grant of this option:

5.             Type of option: Non-qualified Option

6.                                       Vesting:

a.               Except as otherwise
expressly provided in Section 6 b. hereof, (i) 20% of the total number of
Shares subject to this option shall vest as of the Effective Date and (ii) 20%
of the total number of Shares subject to this option shall vest as of May 31 of
each year (commencing on the second such date occurring after the Effective
Date and ending on the fifth such date occurring after the Effective Date).

b.              Notwithstanding anything to the contrary
contained in Section 6 a. hereof, 100% of the total number of Shares subject to
this option shall vest immediately prior to the consummation of a Change in
Control (as defined in Section 6 d. below) in connection with which the
consideration paid to the Company or to its stockholders, as the case may be,
consists primarily of cash (as determined by the Board of Directors in its sole
discretion).

c.               Notwithstanding anything to the contrary
contained herein, (i) this option shall not be exercisable, and shall be void
and of no further force and effect, (x) after the expiration of the option
term, (y) on and after the start of the date on which the Optionee’s employment
terminates for Cause (as defined in the Plan), and (z) on and after the start
of the date on which the Optionee breaches or violates any of the terms or
provisions hereof, including without limitation any provision of Annex A
hereto, (ii) except as provided in Section 7 below, this option shall be
exercisable only if the Optionee is, at the time of exercise, an employee of
the Company or one of its subsidiaries, (iii) except as provided in Section 13
of the Plan, this option shall in no event be exercisable for more than the
total number of Shares provided for in Section 2 hereof and (iv) vesting shall
cease immediately upon termination of employment for any reason, and any
portion of this option that has not vested on or prior to the date of such
termination is forfeited on such date. 
Once vesting has occurred, the vested portion can be exercised at the
time or times specified in Section 7 below.

 

d.              For
purposes of this Section 6, “Change in
Control” shall mean (i) any consolidation, merger or other transaction in which
the Company is not the surviving entity or which results in the acquisition of
all or substantially all of the Company’s outstanding shares of Common Stock by
a single person or entity or by a group of persons or entities acting in
concert or (ii) any sale or transfer of all or substantially all of the Company’s
assets (excluding, however, for this purpose any real estate “sale-lease back”
transaction); provided, however, that the term “Change in Control”
shall not include transactions either (x) with affiliates of the Company or Sun
Capital Partners, Inc. (“Sun”) (as determined by the Board of Directors in its
sole discretion) or (y) pursuant to which more than fifty percent (50%) of the
shares of voting stock of the surviving or acquiring entity is owned and/or
controlled (by agreement or otherwise), directly or indirectly, by Sun or its
affiliates; provided, further, that a transaction shall not
constitute a Change in Control unless the transaction also constitutes a change
in the ownership or effective control of the Company, or in the ownership of a
substantial portion of the Company’s assets, within the meaning of Section
409A(a)(2)(A)(v) of the Code and the regulations or other published guidance (including,
without limitation, Internal Revenue Service Notice 2005-1 and Proposed
Regulation Section 1.409A-3) promulgated thereunder.

7.                                       The vested portion of this option can be
exercised only until the earliest of the following dates:

a.               May 31, 2016;

b.              the date of the consummation of a Change in
Control; or

c.               the date on which the Optionee’s employment
terminates; provided that if the Optionee’s termination of employment (i) is
not voluntary (other than a termination for Cause), then any portion of the
option exercisable pursuant to this Section 7(c) may also be exercised after
the date of termination but on or before the 15th day of the third calendar month following the
date of termination or (ii) is due to death or Disability (as defined in the
Plan), then any portion of the option exercisable pursuant to this Section 7(c)
may also be exercised after the date of termination but on or before the later
of (A) December 31 of the year in which the Optionee’s employment terminates or
(B) the 15th day of
the third calendar month after the date on which the Optionee’s employment
terminates; provided further that, except in the case of termination due to
death or Disability, if the Optionee is a “specified employee” as defined in
Section 409A(a)(2)(B)(i) of the Code, then the option shall instead be
exercisable on the date that is six months after the date of termination (or,
if earlier, death of the Optionee).

8.                                       The permitted
exercise events specified in Section 7 are intended to comply with the
provisions of Section 409A(a)(2) of the Internal Revenue Code of 1986, as
amended (the “Code”).  The Company may
reduce or expand the period of time following an event in which the vested
portion of the option may be exercised if Internal Revenue Service guidance
specifies that such a reduction is required or that such an expansion is
permitted under the provisions of Code Section 409A(a)(2).  In addition, the Company may make any other
changes to this Grant Agreement it determines are necessary to comply with the
provisions of Code Section 409A(a)(2) without the consent of the Optionee.

9.                                       The Optionee agrees to abide by
the covenants and agreements set forth in Annex A hereto and incorporated by
reference herein, and acknowledges that the option being granted herein constitutes
adequate and sufficient consideration in support of such covenants and
agreements.

 

10.                                 The Optionee hereby acknowledges,
understands, and agrees that by signing this Grant Agreement, the Optionee
voluntarily and irrevocably forfeits any and all rights, title, and interests
the Optionee has or may have had in, to and under (a) any option agreement,
option letter, or other similar document pursuant to which the Company (or any
Subsidiary or affiliate thereof) may have previously granted, or offered to
grant, options in the Company (or any Subsidiary or affiliate thereof) to the
Optionee and (b) any oral or written commitment or promise regarding options
that the Company (or any Subsidiary or affiliate thereof) may have made to the
Optionee, except as to any options that have been previously exercised and paid
for by the Optionee.

11.                                 If the Optionee is entitled to exercise the
vested portion of this option, and wishes to do so, in whole or in part, the
Optionee shall submit to the Company a notice of exercise, in the form attached
as Annex B hereto, specifying the exercise date and the number of Shares to be
purchased pursuant to such exercise, and shall remit to the Company in a form
satisfactory to the Company (in its sole discretion) the exercise price, plus
an amount sufficient to satisfy any withholding tax obligations of the Company
that arise in connection with such exercise (as determined by the Company).

12.                                 The Optionee hereby acknowledges receipt of a
copy of the Plan attached hereto as Annex C as presently in effect.  Except as otherwise provided in this Grant
Agreement, all of the terms and conditions of the Plan are incorporated herein
by reference (including, without limitation, the repurchase provisions of
Paragraph 20 of the Plan) and this option is subject to such terms and
conditions in all respects.  Capitalized
terms that are used but not otherwise defined herein shall have the meanings
given to such terms in the Plan.  This
Grant Agreement, the Plan and that certain letter agreement, dated on or about
the date hereof, between the Optionee and the Company constitute the entire
agreement of the parties with respect to the subject matter hereof, and
supersede any prior written or oral agreements.

13.                                 Except as otherwise provided herein and
notwithstanding anything to the contrary in the Plan, any provision of this
Grant Agreement may be amended or waived with the prior written consent of the
Company and either (i) the Optionee or (ii) the Plan participants who have been
granted options to purchase a majority of the options under the Plan (based on
the number of underlying shares of Non-Voting Common Stock issuable upon the
exercise of all such options) theretofore granted under the Plan (unless the
Optionee will be treated in a manner different from other Plan participants, in
which case the Optionee’s written consent will also be required).

14.                                 The Optionee hereby acknowledges, agrees and
confirms that, upon his or her exercise of this option, the Optionee will be
deemed to be a party to the Stockholders’ Agreement attached hereto as Annex D
and shall have all of the rights and obligations of the “Minority Stockholders”
thereunder as if the Optionee had executed the Stockholders’ Agreement.   The Optionee hereby ratifies, as of the date
hereof, and agrees to be bound by, all of the terms, provisions and conditions
contained in the Stockholders’ Agreement.

 

Nothing in the Plan or
this Grant Agreement shall confer upon the Optionee any right to continue in
the employ of the Company or any of its Subsidiaries or affiliates, or
interfere in any way with any right of the Company or any of its Subsidiaries
or affiliates to terminate such employment at any time for any reason
whatsoever (whether for cause or without cause) without liability to the Company
or any of its Subsidiaries or affiliates.

Accepted and Agreed:

	
   

  	
   

  
	
  

  	
  Indalex Holdings Finance, Inc.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Signature of
  Optionee

  	
  Name:

  
	
   

  	
  Title:

  
					

 

Attachments:                        Annex A (Covenants and Agreements of
Optionee)

Annex B (Form of Exercise Notice)

Annex C (The Plan)

Annex D (Stockholders’ Agreement)

 

ANNEX A

COVENANTS AND AGREEMENTS OF OPTIONEE

1.             Optionee acknowledges the time and expense incurred by
the Company in connection with developing proprietary and confidential information
in connection with the Company’s business and operations.  Optionee agrees that Optionee will not,
whether during Optionee’s service as an employee of Sun Capital Partners, Inc.
or its affiliates (“Sun Capital”) or the Company or its Subsidiaries or at any
time thereafter, divulge, communicate, or use to the detriment of Sun Capital
or the Company and their respective affiliates (the “Group”) or any other
person, firm or entity, confidential information or trade secrets relating to
any member of the Group, including, without limitation, business strategies,
operating plans, acquisition strategies (including the identities of (and any
other information concerning) possible acquisition candidates), financial
information, market analyses, acquisition terms and conditions, personnel
information, know-how, customer lists and relationships, supplier lists and
relationships, or other non-public proprietary and confidential information
relating to any member of the Group.  The
foregoing confidentiality agreement shall not apply if Optionee can show that
the communication (i) is required in the course of performing Optionee’s duties
as an employee of Sun Capital or the Company or its Subsidiaries, (ii) is made
with the Board of Directors’ written consent, (iii) relates to information that
is or becomes generally known by the public other than as a result of a breach
hereof, or (iv) is required by law or judicial or administrative process.

2.             During Optionee’s
service as an employee of Sun Capital or the Company or its Subsidiaries and
for the two-year period thereafter, Optionee shall not, to the detriment of any
member of the Group, directly or indirectly, for Optionee or on behalf of any
other person, firm or entity, employ, engage, retain, solicit, recruit or enter into a business affiliation with
any person who is an employee of any member of the Group, or attempt to
persuade any such person to terminate such person’s employment with any member
of the Group, whether or not such person is a full-time employee or whether or
not such employment is pursuant to a written agreement or at-will.

3.             During Optionee’s
service as an employee of the Company or its Subsidiaries and for the two-year
period thereafter, Optionee shall not, to the detriment of the Company or its Subsidiaries,
directly or indirectly, for Optionee or on behalf of any other person, firm or
entity, solicit or otherwise attempt to take away any supplier, vendor, or
customer of any member of the Group who Optionee solicited or did business with
on behalf of the Company or its Subsidiaries or with whom Optionee otherwise
became acquainted as a result of Optionee’s employment with the Company or its
Subsidiaries.

4.             During Optionee’s service as an employee of the
Company or its Subsidiaries and for the one-year period thereafter, Optionee
shall not, directly or indirectly, engage in, or serve as a principal, partner,
joint venturer, member, manager, trustee, agent, stockholder, director, officer
or employee of, or advisor to, or in any other capacity, or in any manner, own,
control, manage, operate, or otherwise participate, invest, or have any
interest in, or be connected with, any person, firm or entity that engages in
any activity which competes directly or indirectly with any business of the
Company or its subsidiary or parent companies (collectively, the “Company
Business”) anywhere in the United States of America or any other country in
which the Company Business was conducted or related sales were effected during
the preceding two years.  THIS PARAGRAPH
4 WILL NOT APPLY AND WILL NOT BE ENFORCED BY THE COMPANY WITH RESPECT TO
POST-TERMINATION ACTIVITY BY OPTIONEE THAT OCCURS IN CALIFORNIA OR IN ANY OTHER
STATE IN WHICH THIS PROHIBITION IS NOT ENFORCEABLE UNDER APPLICABLE LAW.

5.             Whether during or
after the term of Optionee’s employment or service, Optionee shall not
disparage,

 

defame or
discredit any member of the Group or engage in any activity which would have
the effect of disparaging, defaming or discrediting any member of the Group,
nor shall Optionee interfere with or disrupt the business activities of any
member of the Group, or engage in any activity which would have the effect of
interfering with or disrupting the business activities of any member of the
Group; provided, however, that nothing in this Paragraph 5 or
elsewhere in this Annex shall prevent Optionee from engaging in “whistle-blowing”
or other activities expressly protected by applicable law, to the extent so
protected.

6.             Optionee acknowledges
that Optionee’s service as an employee of Sun Capital or the Company or its
Subsidiaries, as the case may be, and the agreements herein are reasonable and
necessary for the protection of Sun Capital and the Company and its
Subsidiaries and are an essential inducement to the Company’s grant of the Option.  Accordingly, Optionee shall be bound by the
provisions hereof to the maximum extent permitted by law, it being the intent
and spirit of the parties that the foregoing shall be fully enforceable.  However, the parties further agree that, if
any of the provisions hereof shall for any reason be held to be excessively
broad as to duration, geographical scope, property or subject matter, such
provision shall be construed by limiting and reducing it so as to be
enforceable to the extent compatible with the applicable law as it shall herein
pertain.

7.             Optionee acknowledges
that the services to be rendered by Optionee to the Company or its Subsidiaries
are of a unique nature and that it would be difficult or impossible to replace
such services and that by reason thereof Optionee agrees and consents that if
Optionee violates the provisions of this Annex, Sun Capital and the Company, in
addition to any other rights and remedies available under this Contract or
otherwise, shall be entitled to an injunction to be issued or specific
performance to be required restricting Optionee from committing or continuing
any such violation.

 

ANNEX B

Stock Option Plan of Indalex Holdings Finance, Inc.

Notice of Exercise of Stock Option

1.             Exercise of Option. 
Pursuant to the 2006 Stock Option Plan of Indalex Holdings
Finance, Inc.  (the “Plan”) and my agreement with Indalex
Holdings Finance, Inc. (the “Company”)
dated May 31, 2006 (the “Grant Agreement”), I hereby elect to exercise my
nonqualified stock option (the “Option”) to the extent of                      shares
of Non-Voting Common Stock of the Company (the “Shares”).

2.             Delivery of Payment.  I
hereby deliver to the Company a cashier’s check in the amount of $                in
full payment of the purchase price of the Shares [determined by multiplying (a)
the exercise price per Share as set forth in my Grant Agreement, by (b) the
number of Shares as to which I am exercising the Option] and in satisfaction of
my obligation to remit to the Company an amount sufficient to satisfy any
withholding tax obligations of the Company that arise in connection with this
exercise, or through such other payment method agreed to by the Company and
permitted under the terms of the Plan.

3.             Representations.  In
connection with my exercise of the Option, I hereby represent to the Company as
follows:

(a)           I am acquiring the Shares solely for
investment purposes, with no present intention of distributing or reselling any
of the Shares or any interest therein.  I
acknowledge that the Shares have not been registered under the Securities Act
of 1933, as amended (the “Securities Act”).

(b)           I am aware of the Company’s business affairs
and financial condition and have acquired sufficient information about the
Company to reach an informed and knowledgeable decision to acquire the Shares.

(c)           I understand that the Shares are “restricted
securities” under applicable U.S. federal and state securities laws and that,
pursuant to these laws, I must hold the Shares indefinitely unless they are
registered with the Securities and Exchange Commission and qualified by state
authorities, or unless an exemption from such registration and qualification
requirements is available. I acknowledge that the Company has no obligation to
register or qualify the Shares for resale. 
I further acknowledge that if an exemption from registration or
qualification is available, it may be conditioned on various requirements
including, but not limited to, the time and manner of sale, the holding period
for the Shares, and requirements relating to the Company which are outside of
my control, and which the Company is under no obligation to and may not be able
to satisfy.

(d)           I understand that there is no public market for the Shares, that no
market may ever develop for them, and that the Shares have not been approved or
disapproved by the Securities and Exchange Commission or any other federal,
state or other governmental agency.

(e)           I understand that the Shares are subject to
certain restrictions on transfer set forth in the Plan.  Both the Plan and the Grant Agreement are
incorporated herein by reference.

(f)            I understand that any Shares purchased
hereunder shall be subject to the Stockholders’ Agreement of the Company dated
as of February 2, 2006, as it may be amended from time to time (“Stockholders’
Agreement”), a copy of which has been provided to me, and that it is a
condition to the exercise of my Option that I execute the attached signature
page of the Stockholders’ Agreement,

 

agreeing
to be bound thereby.  I have had a full
and fair opportunity to review the Stockholders’ Agreement prior to exercising
the Option.

(g)           I understand that the certificate
representing the Shares will be imprinted with the following legends:

THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAW AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED
UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING
SUCH SECURITIES OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF
THE SECURITIES, REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE,
TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND
PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT AND APPLICABLE STATE SECURITIES
LAWS.

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO A RIGHT OF FIRST REFUSAL AND A REPURCHASE RIGHT IN
FAVOR OF THE COMPANY OR ITS ASSIGNEE AS SET FORTH IN THE COMPANY’S STOCK OPTION
PLAN.  SUCH RIGHT OF FIRST REFUSAL AND
REPURCHASE RIGHT ARE BINDING ON TRANSFEREES OF THE SHARES REPRESENTED BY THIS
CERTIFICATE.

THIS CERTIFICATE AND THE SECURITIES
REPRESENTED HEREBY ARE HELD SUBJECT TO THE TERMS, COVENANTS AND CONDITIONS OF A
STOCKHOLDERS’ AGREEMENT DATED AS OF FEBRUARY 2, 2006, AS SUCH AGREEMENT MAY BE
AMENDED, BY AND AMONG THE STOCKHOLDERS OF INDALEX HOLDINGS FINANCE, INC., AND
MAY NOT BE TRANSFERRED OR DISPOSED OF EXCEPT IN ACCORDANCE WITH THE TERMS AND
PROVISIONS THEREOF.  A COPY OF SAID AGREEMENT
AND ALL AMENDMENTS THERETO IS ON FILE AND MAY BE INSPECTED AT THE PRINCIPAL
EXECUTIVE OFFICES OF THE COMPANY.

(h)           I have consulted my own tax advisors in
connection with my exercise of this Option and I am not relying upon the
Company for any tax advice.

(i)            I am presently an employee of the Company.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

	
  

  	
  Submitted by the Optionholder:

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Social Security
  No.

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Received and
  Accepted by the Company:

  
	
   

  	
   

  
	
   

  	
  Indalex Holdings
  Finance, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
										

 

Note:  If
options are being exercised on behalf of a deceased Plan participant, then this
Notice must be signed by such participant’s personal representative and must be
accompanied by a certificate issued by an appropriate authority evidencing that
the individual signing this Notice has been duly appointed and is currently
serving as the participant’s personal representative under applicable local law
governing decedents’ estates.Exhibit
10.17

Conformed
Copy

8
June 2001

 

GLOBAL
APPLIED TECHNOLOGIES HOLDINGS LIMITED

 

INDALEX
UK LIMITED

 

INDALEX,
INC.

 

CHINA
ALUMINUM GROUP HOLDINGS

(BVI) LIMITED

 

 

SHAREHOLDERS
AGREEMENT

relating to

CHINA ALUMINUM GROUP HOLDINGS

(BVI) LIMITED

 

	
  

  	
    FRESHFIELDS BRUCKHAUS DERINGER

  

(English Translation)

 

CONTENTS

	
  CLAUSE

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  
	
  1.   INTERPRETATION

  	
   

  	
  1

  
	
   

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  2.   BUSINESS
  OF THE GROUP

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  3.   CAPITAL
  AND FURTHER FINANCE

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  4.   DIRECTORS
  AND MANAGEMENT

  	
   

  	
  6

  
	
   

  	
  Board of Directors

  	
   

  	
  6

  
	
   

  	
  Joint Working Parties

  	
   

  	
  7

  
	
   

  	
  Business Plan and Budget

  	
   

  	
  8

  
	
   

  	
  Retained Employees

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  5.   RESERVED
  SHAREHOLDER MATTERS AND DEADLOCK

  	
   

  	
  9

  
	
   

  	
  Reserved Shareholder Matters

  	
   

  	
  9

  
	
   

  	
  Deadlock

  	
   

  	
  11

  
	
   

  	
  Dilution

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  6.   FINANCIAL
  MATTERS

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  7.   INFORMATION
  AND REPORTING

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  8.   CONFIDENTIALITY

  	
   

  	
  14

  
	
   

  	
   

  	
   

  
	
  9.   OPPORTUNITY
  TO CO-INVEST/CO-PARTICIPATE

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  10. REGULATORY MATTERS

  	
   

  	
  17

  
	
   

  	
   

  	
   

  
	
  11. INTELLECTUAL PROPERTY

  	
   

  	
  18

  
	
   

  	
   

  	
   

  
	
  12. RELATIONSHIP WITH VENDOR GROUP AND INDALEX GROUP

  	
   

  	
  18

  
	
   

  	
   

  	
   

  
	
  13. TAX MATTERS

  	
   

  	
  18

  
	
   

  	
   

  	
   

  
	
  14. TRANSFER OF SHARES, ISSUANCE OF SHARES AND
  OPTIONS TO ACQUIRE SHARES

  	
   

  	
  18

  

 

 I
 

 

 

	
  

  	
  General

  	
   

  	
  18

  
	
   

  	
  Shareholder ceasing to be a Subsidiary

  	
   

  	
  18

  
	
   

  	
  Tag-along

  	
   

  	
  19

  
	
   

  	
  Issue of new shares

  	
   

  	
  19

  
	
   

  	
  Effect of material breach

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  15. PUT AND CALL OPTIONS

  	
   

  	
  20

  
	
   

  	
   

  	
   

  
	
  16. INSOLVENCY

  	
   

  	
  20

  
	
   

  	
   

  	
   

  
	
  17. DEFAULT

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
  18. PARENT COMPANY ASSURANCES

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
  19. ASSIGNMENT

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  20. WAIVER OF RIGHTS

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  21. AMENDMENTS

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  22. INVALIDITY

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  23. NO PARTNERSHIP OR AGENCY

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  24. ANNOUNCEMENTS

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  25. COSTS

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  26. ENTIRE AGREEMENT

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  27. CONFLICT WITH ARTICLES

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  28. TERMINATION OF AGREEMENT

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  29. NOTICES

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  30. COUNTERPARTS

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  31. GOVERNING LAW, JURISDICTION AND PROCESS AGENT

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1

  	
   

  	
  30

  
	
   

  	
  TRANSFERS OF SHARES

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 2

  	
   

  	
  37

  
	
   

  	
  PUT AND CALL OPTIONS

  	
   

  	
  37

  

 

 II
 

 

 

	
  SCHEDULE 3

  	
   

  	
  43

  
	
   

  	
  INTELLECTUAL PROPERTY RIGHTS

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 4

  	
   

  	
  47

  
	
   

  	
  INSOLVENCY

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 5

  	
   

  	
  49

  
	
   

  	
  GUARANTEES, BONDS, FINANCING, ARRANGEMENTS OR
  SIMILAR UNDERTAKINGS EXISTING AT COMPLETION

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 6

  	
   

  	
  54

  
	
   

  	
  RETAINED EMPLOYEES

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 7

  	
   

  	
  55

  
	
   

  	
  DEED OF ADHERENCE TO SALE AND PURCHASE AGREEMENT AND
  SHAREHOLDERS AGREEMENT

  	
   

  	
  56

  

 

 III

 

THIS
SHAREHOLDERS AGREEMENT is made on 8 June 2001

Between:

(1)                                  GLOBAL APPLIED TECHNOLOGIES HOLDINGS LIMITED,
incorporated under the laws of Bermuda whose registered office is at Clarendon
House, 2 Church Street, Hamilton, HM11, Bermuda (the Vendor);

(2)                                  INDALEX UK LIMITED, incorporated under the
laws of England and Wales whose company number is 188407 and whose registered
office is at Novar House, 24 Queen’s Road, Weybridge, Surrey, KT13 9UX, United
Kingdom (the Purchaser);

(3)                                  INDALEX, INC., incorporated under the laws
of Delaware whose registered office is at 3000 Lakeside Drive, Suite 309 South,
Bannockburn, IL 60015, U.S.A. (Indalex); and

(4)                                  CHINA ALUMINUM GROUP HOLDINGS (BVI) LIMITED,
incorporated under the laws of the British Virgin Islands, whose registered
office is at Caribbean Corporate Services Limited, Omar Hodge Building,
Wickhams Cayman Islands, P.O. Box 362, Road Town, Tortola, British Virgin
Islands (the Company).

Whereas:

(A)                              By a
Sale and Purchase Agreement dated 25 April 2001 (the SPA) made between the Purchaser, Indalex and
the Vendor, the Vendor agreed to sell and the Purchaser agreed to purchase
541,935 ordinary shares of US$0.01 each in the Company (representing 26.2% of
the entire issued share capital in the Company) (the Acquisition).

(B)                                The
Vendor, the Purchaser, Indalex and the Company are entering into this Agreement
to set out the terms governing their relationship following the Acquisition and
establishing the manner in which the affairs of the Company shall be conducted.

It is  agreed
as follows:

Interpretation

Definitions

1.1                                 In
this Agreement:

Aluminum Extrusion means the processes of aluminum
extrusion, casting, anodising and paint coating, and the fabrication,
production or manufacture of aluminum extrusion products (including the supply
and/or distribution of the aluminum extrusion products manufactured by the
business that carries on such process but excluding, for the avoidance of
doubt, aluminum smelting);

Board means the Company’s board of directors or any duly appointed committee
of it;

 1
 

 

Budget means a budget for the Group for a particular Financial Year in a
format approved from time to time by the Board;

Business means the business carried on by the Group, as described in
clause 2.1;

Business Day means a day (other than a Saturday) on which banks
generally are open in Hong Kong for a full range of business;

Business Plan means a rolling business plan for the
Group relating to the then current Financial Year and three (3) succeeding
Financial Years (in a format agreed from time to time between the Vendor and
the Purchaser) to be updated annually;

Chairman means the chairman from time to time of the Board;

company includes any body corporate, wherever incorporated;

Deed of Adherence means a deed of adherence in the agreed form;

Directors means the Company’s directors;

Equity Proportions means the respective proportions in which
the Vendor Shareholder(s) and the Purchaser Shareholder(s) (or Indalex
Shareholder(s)) hold Shares from time to time which will immediately after completion
of the Hongjia Acquisition and the Nanhua Acquisition be, in the case of the
Vendor Shareholder(s), approximately 70.7% and, in the case of the Purchaser
Shareholder(s), approximately 25.1% (and Equity Proportion shall be construed accordingly);

Fair Price means the open market value of the relevant Shares between
a willing seller and a willing third party buyer at the date of the Transfer
Notice without any premium or discount by reference to the percentage of the
Shares being sold or transferred;

Financial Year means a financial period of the Company
(commencing on 1 July and ending on 30 June);

Group means the Company and its Subsidiaries for the time being, and,
following completion of the Hongjia Acquisition and the Nanhua Acquisition, the
Group shall be deemed to include the sino-foreign equity joint venture
enterprises to be established pursuant to the Hongjia Agreement and the Nanhua
Agreement;

Group Member means any member of the Group;

Hong Kong Listing Rules means the Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited;

Hong Kong Stock Exchange means The Stock Exchange of Hong Kong
Limited;

Indalex Group means Indalex and its Subsidiaries from
time to time;

Indalex Group Member means any member of the Indalex Group;

 2
 

 

Indalex Parties means Indalex America Inc., Indalex
Limited, Indalex and Indalex West Inc.;

Insolvency Event has the meaning given to that expression
in clause 16;

Intellectual Property Rights means
patents, trade marks, service marks, logos, get-up, trade names, internet
domain names, rights in designs, copyright (including rights in computer
software) and moral rights, database rights, semi-conductor topography rights,
utility models, rights in know-how and other intellectual property rights, in each
case whether registered or unregistered and including applications for
registration, and all rights or forms of protection having equivalent or
similar effect anywhere in the world;

Joint Working Party, in relation to any matter, means a joint
working party established pursuant to clause 4.9 by representatives from both
(i) Indalex and (ii) the Vendor or the Company to consider such matter;

Kwong means Kwong Wui Chun of 12th Floor, Railway Plaza, 39 Chatham Road
South, Kowloon, Hong Kong;

Memorandum and Articles means the Company’s Memorandum and
Articles of Association, as amended from time to time (and Memorandum and Articles shall
be construed accordingly);

Memorandum of Understanding means the memorandum of understanding
entered into between the Vendor and Indalex hereto dated 7 March 2001 (and
effective on 8 March 2001);

Parties means the Vendor and the Purchaser (and Party shall be construed accordingly);

Purchaser Group means the Purchaser and its Subsidiaries
from time to time;

Purchaser Group Member means any member of the Purchaser Group;

Purchaser Shareholder(s) means the holder or holders for the time
being of Purchaser Shares;

Purchaser Shares means any Shares held by a Purchaser
Group Member from time to time, being at the date hereof 541,935 Shares;

Regulatory Action means:

(a)                                  any
order of a court of competent jurisdiction; or

(b)                                 any
order, decision or conclusive view made, given or expressed by a competent
supranational, governmental or regulatory authority or agency; or

(c)                                  an
enactment of a legislative body which materially prohibits or restricts the
carrying on of the business of the Group as contemplated by this Agreement;

 3
 

 

Regulatory Approvals means any necessary approvals required by
a party purchasing Shares of any competent supranational, governmental or
regulatory agencies or authorities;

Reserved Shareholder Matters
means those matters defined in clause 5;

Retained Employees means those employees listed in Schedule
6;

Shareholders means the holders of Shares from time to time (and Shareholder shall be construed accordingly);

Shares means ordinary shares of US$0.01 each in the Company’s capital;

Strategic Alliance Agreement
means the supply agreement dated 6 September 2000 between the
Indalex Parties and the Vendor (as novated as contemplated by the SPA);

Subsidiary means, in relation to an undertaking (the holding undertaking), any other undertaking in which the
holding undertaking (or persons acting on its or their behalf) for the time
being directly or indirectly holds or controls either:

(a)                                  a
majority of the voting rights exercisable at general meetings of the members of
that undertaking on all, or substantially all, matters; or

(b)                                 the
right to appoint or remove directors having a majority of the voting rights
exercisable at meetings of the board of directors of that undertaking on all,
or substantially all, matters,

and any
undertaking which is a Subsidiary of another undertaking is also a Subsidiary
of any further undertaking of which that other is a Subsidiary; Provided That, for the purposes of this Agreement,
neither the Company nor any Subsidiary of the Company is to be regarded as a
Subsidiary of the Vendor, the Purchaser or Indalex or any other Vendor Group
Member, Purchaser Group Member or Indalex Group Member;

undertaking means a body corporate or partnership or an unincorporated
association carrying on trade or a business with or without a view to profit.
In relation to an undertaking which is not a company, expressions in this
Agreement appropriate to companies are to be construed as references to the
corresponding persons, officers, documents or organs (as the case may be)
appropriate to undertakings of that description;

Vendor Group  means the Vendor
and its Subsidiaries from time to time;

Vendor Group Member means any member of the Vendor Group;

Vendor Shareholder(s) means the holder or holders for the time
being of Vendor Shares; and

Vendor Shares means any Shares held by a Vendor Group
Member from time to time, being at the date hereof 1,526,518 Shares.

 4
 

 

1.2                                 Terms
not otherwise defined in this Agreement shall have the meanings attributed to
them in the SPA.

1.3                                 Any
reference in this Agreement to an amount in Hong Kong dollars (HKS) includes
the equivalent amount at the relevant time in any other currency or combination
of currencies.

1.4                                 The
headings in this Agreement do not affect its interpretation.

1.5                                 A
reference to a document in this Agreement in the agreed form is to a document agreed by the Parties and initialled by
them or on their behalf for identification purposes.

1.6                                 Where
any obligation in this Agreement is expressed to be undertaken or assumed by
any Party, that obligation is to be construed as requiring the Party concerned
to exercise all rights and powers of control over the affairs of any other
person which it is able to exercise (whether directly or indirectly) in order
to secure performance of the obligation.

Business of the Group

2.1                                 The
business of the Group shall be the manufacture, sale and distribution of
Aluminum Extrusion products and such other aluminum business as the Group may
undertake pursuant to this Agreement.

2.2                                 The
business of the Group shall be conducted in the best interests of the Group in
accordance with applicable laws and the general principles of the then current
Business Plan.

Capital and further finance

3.1                                 The
Company’s issued share capital may be increased from time to time by such sum
as the Parties may agree in accordance with this clause 3 and clause 5.

3.2                                 Subject
to clause 3.5 below, the Parties intend that the Group should be self-financing
and should obtain additional funds from third parties without recourse to its
shareholders. Neither Party is obliged to contribute further funds for the
Group’s benefit.

3.3                                 If
the Board considers at any time that the Business requires further finance, the
Board will consider whether or not to approach the Company’s bankers or other
financial institutions or, in appropriate circumstances, to seek such further
finance from the Parties. The Parties are not obliged to provide any further finance
unless they agree on the amount and method of providing the finance. If they
both so agree to provide further finance, the Vendor and the Purchaser (or,
where the Purchaser fails to do so, Indalex) (or members of their respective
Groups) shall contribute the agreed amount to the Company in the Equity
Proportions as at the date of provision of the further finance (whether by
subscribing for shares, stock or debentures or by way of

 5
 

 

loan or
otherwise), at the same time and on the same terms (unless they agree
otherwise).

3.4                                 Except
as provided in clause 3.5, neither Party (nor any member of its respective
Group) shall be obliged to participate for the benefit of the Group in any
guarantee, bond or financing arrangement or similar undertaking with any bank
or financial institution, whether as a guarantor or in any other capacity
whatsoever.

3.5                                 The
Purchaser undertakes that, in the event any bank or financial institution
cancels or requires the restructuring or renewal of any guarantee, bond or
financing arrangement or similar undertaking existing at the date of Completion
between a Vendor Group Member and the relevant bank or financial institution
for the benefit of the Group as listed in Schedule 5, or in respect of any
guarantee, bond or financing arrangement or similar undertaking proposed to be
entered into by any Group Member after Completion and not requiring the prior
approval of the Vendor and the Purchaser pursuant to clause 5 (each, a Non-Reserved Shareholder Matter
Guarantee), the
Purchaser shall (or, where the Purchaser fails to do so, Indalex shall)
participate (or procure that a member of its Group participates), with the
relevant Vendor Group Member, in any such replacement, restructured or renewed
guarantee, bond or financing or similar undertaking (each, a Replacement Guarantee) or any such Non-Reserved Shareholder
Matter Guarantee.

3.6                                 If
the Purchaser (or, as the case may be, Indalex, in which event Indalex shall be
where the context so permits a Party for
the purposes of this clause 3.6 only) is required to participate (or procure
that a member of its Group participates) in any Replacement Guarantee or
Non-Reserved Shareholder Matter Guarantee pursuant to clause 3.5, or if and to
the extent that the Parties agree in accordance with clause 5 to participate
(or agree to procure that members of their respective Groups participate) in
any guarantee, bond or financing arrangement or similar undertaking (each, a Reserved Shareholder Matter
Guarantee), then,
unless the Parties agree otherwise, any liability or obligation to be assumed
by them in relation to any such Replacement Guarantee, Non-Reserved Shareholder
Matter Guarantee or Reserved Shareholder Matter Guarantee (each, a Guarantee) shall be borne by the Parties in the Equity Proportions as
at the date of entering into of the relevant Guarantee. Any such liability or
obligation shall be several and not joint or joint and several, unless they
agree otherwise.

Directors and management

Board of
Directors

4.1                                 The
Board shall be responsible for the overall direction, supervision and
management of the Group. For so long as members of the Purchaser Group or
Indalex Group hold not less than ten per cent (10%) of the issued share capital
of the Company, the Board shall not take any decision in relation to any of the
Reserved Shareholder Matters without the prior approval of the Vendor and
Indalex.

 6
 

 

4.2                                 The
Board shall comprise seven (7) Directors. The Purchaser shall have the right to
appoint one (1) Director at any time and the remaining Directors shall be
appointed by the Vendor.

4.3                                 A
Party may appoint or remove a Director nominated by it by notice to the Company
and to the other Party signed by it or on its behalf. Unless the notice
indicates otherwise, the appointment or removal shall take effect when the
notice is delivered to the Company and, upon receipt of such notice, the
Parties shall procure that the Directors appointed by them promptly take all
such actions as may be necessary to give effect to such appointment or removal.
Any removal shall be without prejudice to any claim which any removed Director
may have under any contract between him and the Company. A Party removing a
Director shall indemnify the Company for any liability arising from the
removal. Each Party shall consult with the other before appointing or removing
a Director.

4.4                                 The
quorum for transacting business at any Board meeting shall be at least two
Directors present when the relevant business is transacted. A Director shall be
regarded as present for the purposes of a quorum if represented by an alternate
Director in accordance with clause 4.6.

4.5                                 At
least fourteen (14) days’ written notice of any Board meeting shall be given to
each of the Parties and to each Board member, unless the Parties approve a
shorter notice period. Any notice shall include an agenda identifying in
reasonable detail the matters to be discussed at the meeting together with
copies of any relevant papers to be discussed at the meeting. If any matter is
not identified in reasonable detail, the Board shall not decide on it.

4.6                                 The
Board shall decide on matters by simple majority vote. Each Director shall have
one vote. Any Director who is absent from a meeting may nominate any other
Director to act as his alternate and to vote in his place at the meeting.

4.7                                 The
Chairman shall not have a casting vote.

4.8                                 A
copy of the minutes of all Board meetings shall be provided to each Director
and to each Party within seven (7) days of each Board meeting.

Joint Working Parties

4.9                                 A
Joint Working Party shall be established which shall consist of four (4)
representatives, comprising equal numbers of representatives from both (i)
Indalex and (ii) the Vendor or the Company.

4.10                           A Joint
Working Party shall decide on matters by simple majority vote on a poll of all
the representatives comprising the Joint Working Party. Each representative
shall have one vote. No representative (nor any representative acting as
chairman of a meeting held by a Joint Working Party to vote on any matter)
shall have a casting vote.

 7
 

 

4.11                           Any matter
upon which the Joint Working Party fails to agree shall be adjourned to a
second poll of all the representatives comprising the Joint Working Party to be
taken within seven (7) Business Days of the adjournment. If the matter remains
unresolved following such second poll, the matter shall be deemed to have been
rejected by the Joint Working Party.

4.12                           The
Vendor and Indalex shall procure that:

(a)                                  at
least one representative has the necessary technical experience to advise other
members of the Joint Working Party on the matter referred to it; and

(b)                                 their
respective nominated representatives on the Joint Working Party:

(i)                        devote
such time and effort in their consideration of the matter referred to it as is
necessary for them to make an informed assessment of the matter;

(ii)                     act in the
best interests of the Group; and

(iii)                  give to the
Board detailed reasons for their decisions on matters referred to the Joint
Working Party.

4.13                           The
procedures for the conduct of Board meetings provided in clauses 4.3 to 4.5 and
clause 4.8 shall apply to meetings of the Joint Working Party, mutatis mutandis, as if references to
Board and Directors shall mean the Joint Working Party and its members,
respectively.

Business Plan and Budget

4.14                           The
Vendor shall procure that a copy of each Business Plan and Budget is provided
to the Purchaser for review at least thirty (30) days before it is submitted to
the Board for approval or before it is otherwise submitted to the Company for
adoption.

Retained Employees

4.15                           The
Vendor undertakes:

(a)                                  to
ensure that the employment agreements between the Vendor or, in the case of Ms
June Yip, the Company and the Retained Employees (the Retained Employee Agreements) shall provide that the Retained
Employees shall devote on average not less than eighty per cent (80%) of their
normal weekly working hours to conducting the business and affairs of the
Company for so long as they remain employees of the Vendor Group or, in the
case of Ms June Yip, the Company;

(b)                                 that
it shall use its best endeavours to ensure that the Retained Employee
Agreements shall contain non-compete restrictions satisfactory to the
Purchaser; and

 8
 

 

(c)                                  to
ensure that the Retained Employee Agreements shall not be amended without the
prior written approval of the Purchaser.

RESERVED SHAREHOLDER MATTERS AND DEADLOCK

Reserved Shareholder Matters

5.1                                 The
Parties shall use their respective powers to ensure, for so long as members of
the Purchaser Group or the Indalex Group hold not less than ten per cent (10%)
of the issued share capital of the Company, that none of the actions specified
in clause 5.2 (Reserved Shareholder Matters) is taken (whether by
the Board, the Company, any Subsidiary of the Company or any of the officers or
managers within the Group) unless the Vendor and Indalex give their prior
approval to proceed in accordance with clause 5.3.

5.2                                 The
Reserved Shareholder Matters are:

(a)                                  altering
the Memorandum and/or Articles or other constitutional documents of any Group
Member;

(b)                                 except
with the approval of a Joint Working Party as provided in clause 5.4, issuing
new shares or securities or otherwise changing the authorised or issued share
capital of any Group Member or any Group Member increasing (or reducing) its
shareholding in any other company;

(c)                                  materially
changing the nature or scope of the Business of any Group Member;

(d)                                 any
Group Member borrowing or raising money or entering into any commitment to
borrow or raise money (including entering into any finance lease, but excluding
normal trade credit or trade facilities entered into in the ordinary course of
business) which would result in the Group’s aggregate actual and contingent
borrowings exceeding HK$10,000,000 (or such other amount as the Vendor and
Indalex may agree from time to time);

(e)                                  any
Group Member entering into any guarantee agreement or arrangement for the
benefit of any person other than a member of the Group;

(f)                                    any
Group Member incurring any capital expenditure in respect of all items and
projects in aggregate in excess of HK$15,000,000 (or such other amounts as the
Vendor and Indalex may agree from time to time);

(g)                                 any
Group Company disposing of (whether in a single transaction or series of
transactions) any business (or any material part of any business) or any shares
in any company;

(h)                                 except
with the approval of a Joint Working Party as provided in clause 5.4, any Group
Member acquiring (whether in a single transaction or series of transactions)
any Aluminum Extrusion business (or any material part of any

 9
 

 

Aluminum Extrusion business) or any shares in any
company which carries on the business of Aluminum Extrusion;

(i)                                     any
Group Member acquiring (whether in a single transaction or series of
transactions) any business other than Aluminum Extrusion (or any material part
of any business other than Aluminum Extrusion) or any shares in any company
which carries on any business other than Aluminum Extrusion;

(j)                                     any
Group Member entering into (or terminating) any material partnership, joint
venture, profit-sharing agreement, technology licence or collaboration (other
than a contract entered into in the ordinary course of business, the novation
of the Strategic Alliance Agreement by the Vendor to the Company, and the
termination of such novated Strategic Alliance Agreement where the Company has an
accrued right to do so);

(k)                                  any
Group Member entering into any contract, liability or commitment which:

(i)                                     is
of a long term nature; for this purpose long term means
continuing for more than two (2) calendar years and not terminable without the
payment of damages of less than HK$5,000,000;

(ii)                                  could
involve an obligation of a material magnitude or nature; for this purpose material means a liability for expenditure
(excluding the purchase of aluminum ingots and scrap) in excess of
HK$20,000,000; or

(iii)                               is
outside the ordinary course of business of the Group;

unless a contract satisfies such authorisation criteria as the Vendor
and Indalex may approve from time to time as part of the procedures for any
Group Member entering into contracts;

(l)                                     any
Group Member entering into any transaction which would constitute a connected
transaction as defined in chapter 14 of the Hong Kong Listing Rules;

(m)                               major
decisions relating to the conduct (including the settlement) of material legal
proceedings to which any Group Member is a party, excluding legal proceedings
against Indalex or any of its affiliates; for these purposes material means a potential liability or claim of
more than HK$10,000,000;

(n)                                 any
transaction between any Group Member and any Vendor Group Member (save for
another Group Member) which is either:

(i)                        outside
the ordinary course of business; or

(ii)                     within the
ordinary course of business but has a value of more than HK$10,000,000 or is
not on commercial arm’s length terms;

 10
 

 

(o)                                 creating
any mortgage, charge, encumbrance or other security interest of any nature in
respect of all or any material part of any Group Member’s undertaking, property
or assets;

(p)                                 any
Group Member making any material acquisition or disposal (including any
material acquisition or grant of any licence) of or relating to any
Intellectual Property Rights;

(q)                                 any
proposal or proceedings to wind up any Group Member.

5.3                                 Approval
to any of the Reserved Shareholder Matters (or to any variation thereof) shall
be given either in writing by the Vendor and Indalex or by their respective
representatives at a general meeting of the Company held in accordance with
clause 5.5.

5.4                                 Notwithstanding
the provisions of clauses 5.2 and 5.3, the Reserved Shareholder Matters
described in clause 5.2(b) and clause 5.2(h) may be approved by a majority vote
of a Joint Working Party made in accordance with clause 4.10 or clause 4.11.

5.5                                 General
meetings of Shareholders shall take place in accordance with the applicable
provisions of the Articles including on the basis that:

(a)                                  subject
to sub-clause (e) below, the quorum shall be one (1) duly authorised
representative of the Vendor Shareholder(s) and one (1) duly authorised
representative of the Purchaser Shareholder(s);

(b)                                 the
notice of meeting shall set out an agenda identifying in reasonable detail the
matters to be discussed (unless the Shareholders agree otherwise);

(c)                                  the
chairman of the meeting shall not have a casting vote;

(d)                                 save
as otherwise provided in clauses 5.1, 5.3 and 5.4, a decision to approve any of
the Reserved Shareholder Matters shall require a unanimous vote of the Vendor
and Indalex;

(e)                                  if
at any general meeting of Shareholders, the quorum specified in paragraph (a)
above is not present within thirty (30) minutes from the time when the meeting
should have begun, the meeting shall be adjourned for seven (7) Business Days
to be held at the same venue and at that adjourned meeting any two holders of
Shares present in person or by proxy shall be a quorum.

Any matters
requiring a general meeting of or approval by the Shareholders under relevant
corporate laws, but not covered by the Reserved Shareholder Matters, shall be
dealt with in accordance with the Memorandum and Articles.

Deadlock

5.6                                 If
a deadlock arises because the Parties fail to agree any Reserved Shareholder
Matter, the matter shall be adjourned to a general meeting of Shareholders. If
the

 11
 

 

matter remains
unresolved following a general meeting of Shareholders, it shall be referred to
the chairman of the Vendor and the chief executive of Indalex with a view to it
being resolved as early as possible in the best interests of the Group. Each
Party shall endeavour to resolve any disagreement in the best interests of the
Group.

5.7                                 If
the deadlocked matter cannot be resolved within thirty (30) days after
referring the dispute to the chairman of the Vendor and the chief executive of Indalex
pursuant to clause 5.6 or if Indalex otherwise serves a written notice on the
Vendor declaring that a deadlock has arisen (each, a Deadlock) the
Purchaser (or any Purchaser Shareholder or Indalex Shareholder) shall be
entitled to transfer all (and not some only) of its Shares to a third party
subject to the provisions of clause 14 and Schedule 1 or to exercise the Put
Option described in Part A of Schedule 2.

5.8                                 Any
purported resolution of a Deadlock prior to the Purchaser (or any Purchaser
Shareholder or Indalex Shareholder) transferring all of its Shares to a third
party, or exercising its Put Option, pursuant to clause 5.7 shall not be effective
until the resolution of the Deadlock is confirmed by the Parties in writing.

Dilution

5.9                                 The
Parties agree that, in the event the aggregate holding of Shares by Purchaser
Group Members and Indalex Group Members is diluted other than as a result of a
disposal by the Purchaser (or any Purchaser Shareholder) of some or all of its
Shares to below 25% of the entire issued share capital of the Company, but
subject to the aggregate holding of Shares by Purchaser Group Members and Indalex
Group Members being not less than ten per cent (10%) of the entire issued share
capital of the Company, the Purchaser will be deemed to continue to be entitled
to all the rights available to it under applicable laws as though it held over
25% of the entire issued share capital of the Company.

Financial matters

6.1                                 The
Company shall adopt accounting principles approved by the Board from time to
time in relation to its financial statements.

6.2                                 The
Company’s auditors shall be Ernst & Young or such other firm of certified
public accountants of recognised international standing as the Parties may
agree from time to time.

6.3                                 The
Company’s Financial Year shall be 1 July to 30 June, unless the Parties agree
otherwise.

6.4                                 The
Parties shall, unless they agree otherwise in relation to any Financial Year,
take all steps to ensure that in respect of each Financial Year the Company
distributes to the Parties not less than forty per cent (40%) (or such other
percentage as the Parties may agree from time to time in writing) of the realised
profits of the Company for that Financial Year.

 12
 

 

Information and Reporting

7.1                                 Each
Party may examine the separate books, records and accounts to be kept by each
Group Member. Each Party shall be entitled to receive all information,
including monthly management accounts and operating statistics and other
trading and financial information, in such form as a Party reasonably requires
to keep it properly informed about the business and affairs of the Group and
generally to protect its interests as a Shareholder.

7.2                                 Without
prejudice to the generality of clause 7.1, the Company shall supply the Parties
with copies of:

(a)                                  within
sixty (60) days after the end of each Financial Year, audited accounts for each
Group Member (complying with all relevant legal requirements) and the Group’s
audited consolidated accounts, except that, in respect of the year 2001, such
accounts shall be provided within ninety (90) days after the end of the
Financial Year;

(b)                                 within
thirty (30) days before the commencement of each Financial Year commencing 1
July 2001, a Business Plan and itemised revenue and capital Budgets for that
Financial Year showing proposed trading and cash flow figures, manning levels
and all material proposed acquisitions, disposals and other commitments for that
Financial Year, and

(c)                                  within
seven (7) days after the end of each calendar month, monthly management
accounts of the Group, except that, in respect of the first three (3) calendar
months immediately following Completion, the Vendor shall be permitted to
supply the monthly management accounts for this three (3) month period within
seven (7) days after the end of the three (3) month period; the monthly
management accounts shall include a consolidated profit and loss account,
balance sheet and cash flow statement broken down according to the principal
divisions of the Group including a statement of progress against the relevant
Business Plan, a statement of any variation from the revenue Budget and
up-to-date forecasts for the balance of the relevant Financial Year and
itemising all transactions referred to in the capital Budget entered into by
the Group during that period.

7.3                                 The
Company shall procure that financial reports (which shall include management
commentaries) are prepared and provided to the Purchaser monthly within seven
(7) days after the end of each calendar month or at such other intervals as may
be requested by the Purchaser and agreed by the Vendor from time to time,
except that, in respect of the first three (3) calendar months immediately
following Completion, the Vendor shall be permitted to supply such financial
reports (and management commentaries) for this three (3) month period within
seven (7) days after the end of the three (3) month period.

7.4                                 The
Company shall ensure that the Purchaser’s auditors are allowed, upon reasonable
notice and during normal business hours, access to such books, records,

 13
 

 

accounts and other
information relating to the Company as may be necessary for them to review the
information provided to Purchaser pursuant to clauses 7.2 and 7.3.

7.5                                 Without
prejudice to clause 8, the Purchaser shall use its best endeavours to ensure
that any of the information provided to it under this clause 7 is not, directly
or indirectly, released to the public without giving the Vendor at least one
(1) Business Day’s notice in writing of such disclosure and providing the
Vendor with a draft of the intended disclosure.

Confidentiality

8.1                                 Each
party shall use (and shall ensure that each of its Subsidiaries shall use) all
reasonable endeavours to keep confidential (and to ensure that its officers,
employees, agents and professional and other advisers keep confidential) any
information:

(a)                                  which
it may have or acquire before or after the date of this Agreement in relation
to any Group Member’s customers, business, assets or affairs; this includes,
without limitation, any such information provided pursuant to clause 7 or
otherwise coming to its knowledge;

(b)                                 which
it may have or acquire before or after the date of this Agreement in relation
to the customers, business, assets or affairs of any Vendor Group Member (if
the party is the Purchaser or Indalex) or of any Purchaser Group Member or
Indalex Group Member (if the party is the Vendor) resulting from:

(i)                        negotiating
this Agreement or examining the business or affairs of the Group;

(ii)                     being
a shareholder in the Company;

(iii)                  having appointees on the Board; or

(iv)                 exercising
its rights or performing its obligations under this Agreement; or

(c)                                  which
relates to the contents of this Agreement or the SPA (or any agreement or
arrangement entered into pursuant to this Agreement or the SPA).

No party shall use
for its own business purposes or disclose to any third party any such
information (collectively, Confidential
Information) without the consent of the other
parties, which if the same is for the promotion of the Business shall not be
unreasonably withheld.

8.2                                 The
obligation of confidentiality under clause 8.1 does not apply to:

(a)                                  the
disclosure (subject to clause 8.3) on a ‘need to know’ basis to a company which
is another Vendor Group Member, Purchaser Group Member or Indalex Group Member
(as the case may be) where the disclosure is for a purpose reasonably
incidental to this Agreement;

 14
 

 

(b)                                 information
which is independently developed by the relevant party or acquired from a third
party to the extent that it is acquired with the right to disclose the same;

(c)                                  the
disclosure of information to the extent required to be disclosed by law, any
stock exchange regulation (subject to clause 7.5) or any binding judgment,
order or requirement of any court or other competent authority;

(d)                                 the
disclosure of information to any tax authority to the extent reasonably
required for the purposes of the tax affairs of the party concerned or any member
of its Group;

(e)                                  the
disclosure (subject to clause 8.3) in confidence to a party’s professional
advisers of information reasonably required to be disclosed for a purpose
reasonably incidental to this Agreement;

(f)                                    information
which becomes within the public domain (otherwise than as a result of a breach
of this clause 8); or

(g)                                 any
announcement made in accordance with the terms of clause 24.

8.3                                 Each
party shall inform (and shall ensure that any Subsidiary shall inform) any
officer, employee or agent or any professional or other adviser advising it in
relation to the matters referred to in this Agreement, or to whom it provides
Confidential Information, that such information is confidential and shall
instruct them:

(a)                                  to
keep it confidential; and

(b)                                 not
to disclose it to any third party (other than those persons to whom it has
already been disclosed in accordance with the terms of this Agreement).

The disclosing
party is responsible for any breach of this clause 8 by the person to whom the
Confidential Information is disclosed.

8.4                                 If
this Agreement terminates, either party may by notice require the other parties
to return the first party’s Confidential Information. If so, the other parties
shall (and shall ensure that its Subsidiaries and its officers and employees
and those of its Subsidiaries shall):

(a)                                  return
all documents containing Confidential Information which have been provided by
or on behalf of the party demanding the return of Confidential Information; and

(b)                                 destroy
any copies of such documents and any document or other record reproducing,
containing or made from or with reference to the Confidential Information

(save, in each
case, for any submission to or filings with governmental, tax or regulatory
authorities). The other parties shall return or destroy the Confidential
Information as soon as practicable after receiving notice.

 15

 

8.5                                 The
provisions of this clause 8 continue to apply if this Agreement is terminated.

OPPORTUNITY TO
CO-INVEST/CO-PARTICIPATE

9.1                                 For
the duration of this Agreement, to the extent that any opportunity to invest or
participate in any business or venture involved in the aluminum business or
involving the sale and distribution of aluminum products arises to any Vendor
Group Member, any Group Member or Kwong, the Vendor shall not, and it shall
procure that no Vendor Group Member or Group Member shall, except as permitted
in this clause 9, invest or participate in any such business or venture unless
and until the Purchaser and Indalex have been offered the opportunity to
co-invest or co-participate in such business or venture in accordance with this
clause 9.

9.2                                 Upon
receipt of such opportunity referred to in clause 9.1, the Vendor shall
promptly and in good faith make available to the Purchaser and Indalex by
notice in writing (the Co-Participation
Notice) the
opportunity to co-invest or co-participate in such business or venture on
reasonable commercial terms which are equal (so far as possible) to those
offered to the Vendor Group Member, Group Member or Kwong.

9.3                                 In
the event that an opportunity to co-invest or co-participate in a business or
venture is made available to the Purchaser and Indalex pursuant to clause 9.2,
the Vendor shall not, and it shall procure that no Vendor Group Member or Group
Member shall, invest or participate in any such business or venture unless (a)
within thirty (30) Business Days of receipt of a Co-Participation Notice, the
Purchaser or Indalex gives written notice to the Vendor of its desire to
co-invest or co-participate in the business or venture, in which event the
Vendor Group Member or Group Member stipulated by the Purchaser or Indalex
shall be permitted to co-invest or co-participate with the Purchaser or Indalex
and the provisions of clause 9.6 shall apply or (b) such investment or
participation is made in accordance with clause 9.4 or clause 9.5.

9.4                                 If
the opportunity arising to the Vendor Group Member, Group Member or Kwong to
invest or participate is in an aluminum business or venture other than Aluminum
Extrusion and neither the Purchaser nor Indalex elects to co-invest or
co-participate in such business or venture in accordance with clauses 9.3 and
9.6, any Vendor Group Member (but not a Group Member) shall be permitted to
invest or participate in the business or venture and, in relation to any such
new business or venture, the Vendor and the Company undertake that, provided
Purchaser Group Members or Indalex Group Members hold not less than ten per
cent (10%) of the issued share capital of the Company at the time of completion
of such investment or participation:

(a)                                  no
right (either actual or contingent) to acquire any shares or other rights over
any shares (either issued or unissued) in any member of the Group shall be
granted or transferred to any person; and

(b)                                 no
Group Member shall borrow, guarantee or raise any money or enter into any
commitment to borrow, guarantee or raise money to finance the investment or
participation,

 16
 

 

and that any shares transferred or issued as
consideration or otherwise shall be shares in the Vendor and that the Vendor
shall be the entity which borrows or raises money or enters into any commitment
to borrow or raise money to fund or assist in the funding of the investment or
participation.

9.5                                 If
the opportunity arising to the Vendor Group Member, Group Member or Kwong to
invest or participate is in an Aluminum Extrusion business or venture and
neither the Purchaser nor Indalex elects to co-invest or co-participate in such
business or venture in accordance with clause 9.3, the opportunity to invest or
participate shall be referred to a Joint Working Party. If the Joint Working
Party approves the opportunity, any Vendor Group Member or Group Member
approved by the Joint Working Party shall be permitted to invest or participate
in the business or venture. If the Joint Working Party does not approve the
opportunity, neither the Vendor or the Company, nor any Vendor Group Member or
Group Member, shall be permitted to invest or participate in the business or
venture.

9.6                                 If
the Purchaser or Indalex elects to co-invest or co-participate in the business
or venture made available to it pursuant to clause 9.2, the Purchaser or
Indalex (as the case may be) shall have the option to co-invest or
co-participate up to an amount representing such percentage of the amount of
investment being made available to the relevant Vendor Group Member or Group
Member as is equivalent to the Equity Proportion of the Purchaser
Shareholder(s) (or Indalex Shareholder(s)) at the time of the giving of written
notice by Indalex of its desire to co-invest or co-participate in the business
or venture.

REGULATORY
MATTERS

10.1                           The Parties
shall co-operate with each other to ensure that all information necessary or
desirable for making (or responding to any requests for further information
following) any notification or filing made in respect of this Agreement, or the
transactions contemplated by it, is supplied to the Party dealing with such
notification and filing and that they are properly, accurately and promptly
made.

10.2                           If any
material Regulatory Action is taken or threatened, the Parties shall promptly
meet to discuss:

(a)                                  the
situation and the action to be taken as a result; and

(b)                                 whether
any modification to the terms of this Agreement (or any agreement entered into
pursuant to this Agreement) should be made in order that any requirement
(whether as a condition of giving any approval, exemption, clearance or consent
or otherwise) of any regulatory authority may be reconciled with, and within
the intended scope of, the business arrangement contemplated by this Agreement.
The Parties shall co-operate to give effect to any agreed modifications.

 17
 

 

INTELLECTUAL
PROPERTY

11.                                 The
provisions of Schedule 3 apply in relation to Intellectual Property Rights
which the Vendor, the Purchaser and Indalex are to make available to the
Company.

RELATIONSHIP WITH VENDOR
GROUP AND INDALEX GROUP

12.1                           If any
Group Member has or may have any claim against a Party arising out of any
agreement entered into by any Group Member and any member of that Party’s
Group, that Party will ensure that neither it, nor any Director nominated by
it, shall do anything to prevent or hinder the Group Member asserting or
enforcing the claim against that Party or the relevant member of its Group and
that it, and any Directors nominated by it, shall, if necessary, enable all
decisions regarding such claims to be taken by the relevant Group Member
wishing to assert or enforce the claim. This is without prejudice to any right
of the first mentioned Party itself to dispute the claim.

12.2                           The
Parties confirm their intention to promote the best interests of the Group and
to consult fully on all matters materially affecting the development of the
business of the Group. Each Party shall act in good faith towards the other in
order to promote the success of the Group.

TAX MATTERS

13.                                 Each
Party agrees to co-operate, and ensure that its Subsidiaries co-operate, to
such extent as may be reasonably requested in connection with the making of any
returns, claims or elections for Taxation purposes:

(a)                                  by
the other Party in relation to the Taxation affairs of any member (or former
member) of its Group for any period ending before Completion; or

(b)                                 by
the Company (or any other Group Member) in relation to the Taxation affairs of
the Group.

TRANSFER OF SHARES,
ISSUANCE OF SHARES AND OPTIONS TO ACQUIRE SHARES

General

14.1                           Except
for transfers made pursuant to the provisions of clauses 5.7 (in respect of any
exercise of the Put Option pursuant thereto), 15, 16 or 17 and Schedules 2 or
4, the provisions of Schedule 1 shall apply in relation to any transfer, or
proposed transfer, of Shares in the Company or any interest in those Shares.

Shareholder ceasing to be
a Subsidiary

14.2                           Without
prejudice to clause 19, each of the Vendor and the Purchaser undertakes to
ensure that any of its Subsidiaries holding Shares shall transfer all of the
Shares which it then holds to the Party of which it is a Subsidiary (or to a
wholly-owned Subsidiary of that Party) before any such Subsidiary ceases being
a Subsidiary of it at any time.

 18
 

 

Tag-along

14.3                           In the
event that the Vendor (or any Vendor Shareholder) (the Seller) wishes to sell all of its Shares (the Seller’s Shares) to a third party purchaser (the Third Party Purchaser), it shall do so in accordance with the
provisions of Schedule 1 and shall procure that the transfer notice which it
gives under paragraph 5 of Schedule 1 (the Transfer Notice) is accompanied by an offer from the Third Party Purchaser
to the Purchaser (the Continuing
Party) to buy all
the Shares held by the Continuing Party (or any Purchaser Shareholder or
Indalex Shareholder) (the Continuing
Party’s Shares) on
the same terms (including price per Share) as are set out in the Transfer
Notice (the Tag-along
Offer). The
Tag-along Offer shall be expressed to be irrevocable and open for acceptance by
the Continuing Party during the acceptance period prescribed in paragraph 6 of
Schedule 1 (the Acceptance
Period). The
Continuing Party shall be entitled to elect to purchase the Seller’s Shares
pursuant to paragraph 6 of Schedule 1, or to accept the Tag-along Offer, during
the Acceptance Period. If the Continuing Party accepts the Tag-along Offer, the
sale of the Continuing Party’s Shares to the Third Party Purchaser shall take
place on the terms contained in paragraphs 11 (a) to (h) of Schedule 1. If,
within the Acceptance Period, the Continuing Party neither gives notice to the
Seller that it wishes to purchase the Seller’s Shares nor accepts the Tag-along
Offer, the Seller shall be entitled to sell the Seller’s Shares to the Third
Party Purchaser free from any restrictions on transfer provided in Schedule 1; Provided That, if the Transfer Notice is not
accompanied by the Tag-along Offer, notwithstanding any provision to the
contrary contained in this Agreement, the Seller shall not be permitted to sell
any of the Seller’s Shares to the Third Party Purchaser. If the Continuing
Party elects to accept the Tag-along Offer, it (or the relevant Purchaser
Shareholder or Indalex Shareholder) shall warrant to the Third Party Purchaser
that it is the sole legal and beneficial owner of the Continuing Party’s Shares
free from all encumbrances and shall agree to the sale of the Continuing
Party’s Shares to the Third Party Purchaser free from all encumbrances together
with all rights attaching thereto as at the date of the Transfer Notice.

Issue of new shares

14.4                           Except
for 43,142 Shares issued pursuant to the Hongjia Agreement and 47,978 Shares
issued pursuant to the Nanhua Agreement, for the duration of this Agreement, no
new shares in the capital of the Company, nor any option to acquire new shares
in the capital of the Company, shall be issued or granted, as the case may be,
to any person unless such shares or option to acquire new shares are first
offered to the then Shareholders pro rata their existing holdings of Shares and
the provisions of paragraphs 5 to 11 of Schedule 1 shall apply, mutatis mutandis, as if references to
transfer shall mean issuance of new shares or grant of options to acquire new
shares, as the case may be.

 19
 

 

Effect
of material breach

14.5                           Neither
Party shall be entitled to make any transfer of its Shares otherwise permitted
under this clause 14 and Schedule 1 for so long as it is in material breach of
its obligations under this Agreement or under clause 8 of the SPA.

PUT AND
CALL OPTIONS

15.1                           The
Parties agree to be bound by the provisions of Schedule 2, and the provisions
of clause 14 and Schedule 1 shall not apply to any transfers made pursuant to
this clause 15 and Schedule 2.

15.2                           The
Vendor shall be entitled at any time to seek the Purchaser’s agreement to sell
all of the Shares held by the Purchaser Group (the Purchaser Group Shares) to the Vendor in accordance with the
provisions of Part B of Schedule
2, mutatis mutandis, as if
references to the Purchaser shall mean the Vendor, and vice versa; Provided That, the price
payable by the Vendor for the Purchaser Group Shares shall be calculated in
accordance with paragraphs 7(a) or 7(b) (and not paragraphs 7(c) or 7(d)) of
Schedule 2, as the case may be; and Provided Further That, the Purchaser shall be entitled at its absolute discretion
without providing any reason therefor to refuse to sell the Purchaser Group
Shares to the Vendor upon such a request.

15.3                           The
Purchaser shall not be entitled to exercise the Put Option or Call Option
pursuant to this clause 15 and Schedule 2 for so long as it is in material
breach of its obligations under this Agreement or under clause 8 of the SPA.

INSOLVENCY

16.                                 The
provisions of Schedule 4 shall apply on the occurrence of an Insolvency Event,
and the provisions of clause 14 and Schedule 1 shall not apply to any transfers
made pursuant to this clause 16 and Schedule 4. It is an Insolvency Event in
relation to a Party if:

(a)                                  a
court of competent jurisdiction makes an order or a resolution is passed, for
the dissolution or administration of that Party (otherwise than in the course
of a reorganisation or restructuring previously approved in writing by the
other Party); or

(b)                                 any
person other than a member of the other Party’s Group takes any step to appoint
a liquidator, manager, receiver, administrator, administrative receiver or
other similar officer in respect of any of its material assets which include
either (i) the Shares held by that Party or any Subsidiary of it or (ii) shares
in that Party or any holding company of it; or

(c)                                  that
Party convenes a meeting of its creditors or makes or proposes any arrangement
or composition with, or any assignment for the benefit of, its creditors;

 20
 

 

and reference to a Party in this clause (other
than any reference to the other Party) includes any Shareholder in that Party’s
Group or any holding company of that Party.

DEFAULT

17.1                           If the
Vendor (or any member of its Group) commits a material breach of this Agreement
(a Vendor Breach), the Purchaser may serve notice upon the
Vendor (a Vendor Default
Notice). The
Vendor Default Notice shall specify the Vendor Breach and require the Vendor
immediately to stop the Vendor Breach and, to the extent that it is possible,
to make good the results of the Vendor Breach within thirty (30) days. This
does not affect the Purchaser’s right subsequently to claim damages or other
compensation under applicable law for the Vendor Breach or, where appropriate,
to seek an immediate remedy of an injunction, specific performance or similar
court order to enforce the Vendor’s obligations.

17.2                           If the
Purchaser (or any member of its Group) commits a material breach of this
Agreement (a Purchaser
Breach), the
Vendor may serve notice upon the Purchaser (a Purchaser Default Notice). The Purchaser Default Notice shall
specify the Purchaser Breach and require the Purchaser immediately to stop the
Purchaser Breach and, to the extent that it is possible, to make good the
results of the Purchaser Breach within thirty (30) days. This does not affect
the Vendor’s right subsequently to claim damages or other compensation under
applicable law for the Purchaser Breach or, where appropriate, to seek an
immediate remedy of an injunction, specific performance or similar court order
to enforce Indalex’s obligations.

17.3                           If the
Vendor fails within thirty (30) days of the Vendor Default Notice to stop and,
to the extent that it is possible, remedy the Vendor Breach as required in the
Vendor Default Notice, the Purchaser shall be entitled to elect either to
exercise the Put Option or the Call Option described in Parts A and B of
Schedule 2.

17.4                           The
Purchaser shall not be entitled to exercise the Put Option or Call Option
pursuant to this clause 17 and Schedule 2 for so long as it is in material
breach of its obligations under this Agreement or under clause 8 of the SPA.

PARENT
COMPANY ASSURANCES

18.1                           So far
as it is legally able, each Party agrees with the other to exercise all voting
rights and powers (direct or indirect) available to it in relation to any
person and/or the Company to ensure that the provisions of this Agreement (and
the other agreements referred to in this Agreement) are completely and
punctually fulfilled, observed and performed and generally that full effect is
given to the principles set out in this Agreement and each Party agrees with
the other that it shall not rely on any contrary fiduciary duties of its
Directors to frustrate the operation of this clause 18.1.

18.2                           Each
Party shall ensure that its Subsidiaries perform:

(a)                                  all
obligations under this Agreement which are expressed to relate to members of
its respective Group (whether as Shareholders or otherwise); and

 21
 

 

(b)                                 all
obligations under any agreement entered into by any of its Subsidiaries
pursuant to this Agreement.

The liability of a Party
under this clause 18.2 shall not be discharged or impaired by any amendment to
or variation of this Agreement, any release of or granting of time or other
indulgence to any of its Subsidiaries or any third party or any other act,
event or omission which but for this clause would operate to impair or discharge
the liability of such Party under this clause 18.2.

18.3                           If
Shares are at any time held by two or more members of its Group, each Party
shall ensure that each such member appoints the relevant Party its attorney
with authority (or otherwise authorises the relevant Party) at any time or from
time to time to execute such proxies, mandates, written resolutions and other
documents as are required to enable that Party to exercise the voting rights
attaching to the Shares held by members of its Group.

Assignment

19.1                           It is
acknowledged and agreed by the Vendor that the Purchaser may at any time
following Completion effect a corporate reorganisation of the Purchaser’s Group
and/or the Indalex Group whereby the Purchaser may sell or transfer (or procure
the sale or transfer of) all or any of the Purchaser Shares to Indalex or any
wholly-owned Subsidiary of either the Purchaser or Indalex. Accordingly,
subject to clause 19.2, the Vendor agrees that the benefit of this Agreement
may be assigned (in whole or in part) by the Purchaser without the consent of
the Vendor to, and may be enforced by, Indalex or any wholly-owned Subsidiary
of either the Purchaser or Indalex which is the legal and/or beneficial owner
for the time being of any or all of the Purchaser Shares as if it were the
Purchaser under this Agreement.

19.2                           If the
benefit of the whole or any part of this Agreement is assigned by the Purchaser
to Indalex or any of either the Purchaser’s or Indalex’s wholly-owned
Subsidiaries in accordance with clause 19.1, that company may at any time
assign the same to Indalex or any other wholly-owned Subsidiary of either the
Purchaser or Indalex and where any such assignee subsequently ceases to be a
wholly-owned Subsidiary of either the Purchaser or Indalex, the Purchaser or
Indalex, as the case may be, shall procure that before it so ceases to be a
wholly-owned Subsidiary it shall assign that benefit to Indalex, to the
Purchaser or to another continuing wholly-owned Subsidiary of either the
Purchaser or Indalex.

19.3                           It is
acknowledged and agreed by Indalex and the Purchaser that the Vendor may at any
time following Completion effect an intra-group reorganisation of the Vendor
Group whereby, subject to obtaining the Purchaser’s prior written consent (not
to be unreasonably withheld or delayed), the Vendor may sell or transfer all or
any of the Vendor Shares to any other wholly-owned Subsidiary of the Vendor.
Accordingly, subject to clause 19.4, Indalex and the Purchaser agree that the
benefit of this Agreement may be assigned (in whole or in part) by the Vendor,
subject to obtaining the Purchaser’s prior written consent (not to be
unreasonably withheld or delayed), to, and may be enforced by, any wholly-owned
Subsidiary of the Vendor

 22
 

 

which is the legal and/or the beneficial owner for the
time being of any or all of the Vendor Shares as if it were the Vendor under
this Agreement.

19.4                           If the
benefit of the whole or any part of this Agreement is assigned by the Vendor to
any of its wholly-owned Subsidiaries in accordance with clause 19.3, that
member of the Vendor Group may, subject to obtaining the Purchaser’s prior
written consent (not to be unreasonably withheld or delayed), at any time
assign the same to any other wholly-owned Subsidiary of the Vendor Group and
where any such assignee subsequently ceases to be a wholly-owned Subsidiary of
the Vendor, the Vendor shall procure that before it so ceases to be a
wholly-owned Subsidiary it shall assign that benefit to the Vendor or to
another continuing wholly-owned Subsidiary of the Vendor, subject to obtaining
the Purchaser’s prior written consent (not to be unreasonably withheld or
delayed).

19.5                           Save as
otherwise provided in this Agreement, no Party, nor any Shareholder in its
Group, shall, nor shall purport, to assign, transfer, charge or otherwise deal
with all or any of its rights and/or obligations under this Agreement nor
grant, declare, create or dispose of any right or interest in it without the
prior written consent of the other Party.

Waiver of rights

20.                                 No
waiver by a party of a failure by the other party to perform any provision of
this Agreement operates or is to be construed as a waiver in respect of any
other failure whether of a like or different character.

AMENDMENTS

21.                                 A
variation of this Agreement (or of any of the documents referred to in it) is
valid only if it is in writing and signed by or on behalf of each party (except
that a variation of any provision of this Agreement which only affects the
respective rights and obligations of the Vendor, the Purchaser and Indalex or
either of them as between themselves does not need the Company’s agreement).

INVALIDITY

22.                                 If
any provision of this Agreement is or is held to be invalid or unenforceable,
then so far as it is invalid or unenforceable it has no effect and is deemed
not to be included in this Agreement. This shall not invalidate any of the
remaining provisions of this Agreement. The parties shall then use all
reasonable endeavours to replace the invalid or unenforceable provision by a
valid provision the effect of which is as close as possible to the intended
effect of the invalid or unenforceable provision.

No partnership or agency

23.1                           Nothing
in this Agreement (or any of the arrangements contemplated by it) is or shall
be deemed to constitute a partnership between the parties nor, except as may be
expressly set out in it, constitute either party the agent of the other for any
purpose.

 23
 

 

23.2                           Unless
the parties agree otherwise in writing, none of them shall:

(a)                                  enter
into any contracts or commitments with third parties as agent for any Group
Member or for the other party; or

(b)                                 
describe itself as such an agent or in any way hold itself out as being such an
agent.

Announcements

24.1                           No
formal public announcement or press release in connection with the signature or
subject matter of this Agreement shall (subject to clause 24.2) be made or
issued by or on behalf of either party or any of its Subsidiaries without the
prior written approval of the other parties (such approval not to be
unreasonably withheld or delayed).

24.2                           If a
party has an obligation to make or issue any announcement required by law or by
any stock exchange or by any governmental authority, the relevant party shall
give the other parties every reasonable opportunity to comment on any
announcement or release before it is made or issued (provided that this shall
not have the effect of preventing the party making the announcement or release
from complying with its legal and/or stock exchange obligations).

Costs

25.                                 Each
of the parties shall pay its own costs, charges and expenses (including
taxation) incurred in connection with negotiating, preparing and implementing
this Agreement.

Entire agreement

26.                                 This
Agreement, the SPA, the Deed of Undertaking and the Tax Indemnity set out the
entire agreement and understanding between the parties with respect to their
relationship following the Acquisition. This Agreement supersedes the
Memorandum of Understanding, which shall cease to have any further force or
effect.

Conflict with articles

27.1                           If the
provisions of this Agreement conflict with the Memorandum and Articles or the
Company’s other constitutional documents or those of any other Group Member,
the provisions of this Agreement shall prevail as between the Parties. The
Parties shall:

(a)                                exercise
all voting and other rights and powers available to them to give effect to the
provisions of this Agreement; and

(b)                                 (if
necessary) ensure that any required amendment is made to the Memorandum and
Articles or other constitutional document of the Company or any Group Member.

 24
 

 

27.2                           Without
prejudice to the generality of clause 27.1, the provisions of this Agreement
shall prevail in relation to the transfer of Shares and, accordingly, neither
Party shall use the provisions of articles 37 to 41 of the Articles to
frustrate the operation of clauses 5.7, 14,15,16 or 17 or Schedules 1, 2 or 4
of this Agreement.

Termination of Agreement

28.1                           This
Agreement shall, unless otherwise terminated, continue in full force and effect
for so long as Vendor Group Members and Purchaser Group Members hold Shares in
the Company and shall terminate immediately if either Party ceases to be a
Shareholder, except where a Party ceases to be a Shareholder pursuant to an
intra-group transfer made in accordance with paragraph 12 of Schedule 1 or
where, following a transfer by a Party to a third party, the third party enters
into a Deed of Adherence substantially in the form attached as Part B of
Schedule 7 and this Agreement is novated pursuant thereto.

28.2                           Subject
to clause 5.2(q), this Agreement shall also terminate upon a resolution being
passed to wind-up the Company. In such event, the Vendor and the Purchaser
shall endeavour to agree a suitable basis for dealing with the Group’s
interests and assets. Subject to this:

(a)                                  the
Vendor and the Purchaser shall co-operate (but without any obligation to
provide any additional finance) with a view to enabling all existing
obligations of the Group to be completed insofar as its resources allow. The
Vendor and the Purchaser shall consult together with a view to novating or
re-allocating outstanding contracts within the Business in a suitable manner;

(b)                                 the
Group shall not assume any new contractual obligation for the supply of
products or services;

(c)                                  unless
the Vendor and the Purchaser agree otherwise, the Parties shall ensure that the
Company is wound-up as soon as practicable;

(d)                                 the
Vendor, the Purchaser and Indalex shall be free to compete in any way within
the field of the Business;

(e)                                  the
Vendor shall promptly deliver up to the Purchaser and vice versa, and the Company shall as soon
as reasonably practicable deliver up to the Vendor, the Purchaser or Indalex
(as the case may be), all drawings, notes, copies or other representations of
confidential information proprietary to and/or originating from the other party
or its Group. Termination shall not affect the obligations of the parties under
clause 8 (Confidentiality) which shall remain in full force and
effect;

(f)                                    each
Vendor Group Member, each Purchaser Group Member and each Indalex Group Member
shall have free access to, and use of, any technology or products developed by
the Company (whether by transfer of design and manufacturing rights or by
appropriate non-exclusive licences). The Company shall deliver to each of the
Vendor, the Purchaser and Indalex, and not to any

 25
 

 

third party, copies of drawings, notes or other
representations of confidential information proprietary to and/or originating
from the Group.

Notices

29.1                           Any
notice or other formal communication to be given under this Agreement shall be
in writing and signed by or on behalf of the party giving it. It shall be:

(a)                                  sent
by fax to the number set out in clause 29.2; or

(b)                                 delivered
by hand or sent by prepaid recorded delivery, special delivery or registered
post to the relevant address in clause 29.2.

In each case it shall be
marked for the attention of the relevant party set out in clause 29.2 (or as
otherwise notified from time to time under this Agreement). Any notice given by
hand delivery, fax or post shall be deemed to have been duly given:

(a)                                  if
hand delivered, when delivered;

(b)                                 if
sent by fax, twelve (12) hours after the time of despatch;

(c)                                  if
sent by recorded delivery, special delivery or registered post, at 10 am on the
fifth Business Day from the date of posting

unless there is evidence
that it was received earlier than this and provided that, where (in the case of
delivery by hand or by fax) the delivery or transmission occurs after 6 pm on a
Business Day or on a day which is not a Business Day, service shall be deemed
to occur at 9 am on the next following Business Day. References to time in this
clause are to local time in the country of the addressee.

29.2                           The
addresses and fax numbers of the Parties for the purpose of clause 29.1 are:

(a)                                  Global
Applied Technologies Holdings Limited:

	
  Address:

  	
  12th Floor

  
	
   

  	
  Railway Plaza

  
	
   

  	
  39 Chatham Road
  South

  
	
   

  	
  Kowloon

  
	
   

  	
  Hong Kong

  
	
   

  	
   

  
	
  Fax:

  	
  +852 2156 8600

  
	
   

  	
   

  
	
  For the
  attention of:

  	
  The Chairman

  

(b)                                 Indalex UK Limited:

	
  Address:

  	
  Novar House

  
	
   

  	
  24 Queen’s Road 

  
	
   

  	
  Weybridge

  

 

 26
 

 

 

	
  

  	
  Surrey, KT13 9UX

  
	
   

  	
  United Kingdom

  
	
   

  	
   

  
	
  Fax:

  	
  +44 1932 823 313

  
	
   

  	
   

  
	
  For the
  attention of:

  	
  The Group Company Secretary of Novar PLC

  

(c)                                  Indalex, Inc.:

	
  Address:

  	
  3000 Lakeside Drive

  
	
   

  	
  Suite 309 South

  
	
   

  	
  Bannockburn

  
	
   

  	
  IL 60015

  
	
   

  	
  U.S.A.

  
	
   

  	
   

  
	
  Fax:

  	
  +1 847 295 3782

  
	
   

  	
   

  
	
  For the attention of:

  	
  The Company Secretary of Indalex, Inc.

  

with a copy to:

Novar
PLC:

	
  Address:

  	
  Novar House

  
	
   

  	
  24 Queen’s Road

  
	
   

  	
  Weybridge

  
	
   

  	
  Surrey, KT13 9UX

  
	
   

  	
  United Kingdom

  
	
   

  	
   

  
	
  Fax:

  	
  +44 1932 823 313

  
	
   

  	
   

  
	
  For the
  attention of:

  	
  The Group Company Secretary

  

(d)                                 China Aluminum Group Holdings (BVI) Limited:

	
  Address:

  	
  c/o Global Applied Technologies Limited

  
	
   

  	
  12th Floor

  
	
   

  	
  Railway Plaza

  
	
   

  	
  39 Chatham Road South

  
	
   

  	
  Kowloon

  
	
   

  	
  Hong Kong

  
	
   

  	
   

  
	
  Fax:

  	
  +852 2156 8500

  
	
   

  	
   

  
	
  For the
  attention of:

  	
  The Chairman

  

29.3                           A
party may notify any other party to this Agreement of a change to its name,
relevant addressee, address or fax number for the purposes of this clause 29,
provided that, such notice shall only be effective on:

 27

 

(a)                                  the
date specified in the notice as the date on which the change is to take place;
or

(b)                                 if
no date is specified or the date specified is less than five Business Days
after the date on which notice is given, the date following five Business Days
after notice of any change has been given.

29.4                           In
proving such service it shall be sufficient to prove that the envelope
containing such notice was properly addressed and delivered either to the
address shown thereon or into the custody of the postal authorities as a
pre-paid recorded delivery, special delivery or registered post letter, or that
the facsimile transmission was made after obtaining in person or by telephone
appropriate evidence of the capacity of the addressee to receive the same, as
the case may be.

29.5                           All
notices or formal communications under or in connection with this Agreement
shall be in the English language or, if in any other language, accompanied by a
translation into English. In the event of any conflict between the English text
and the text in any other language, the English text shall prevail.

Counterparts

30.                                 This
Agreement may be executed in any number of counterparts and by the Parties to
it on separate counterparts, each of which shall be an original but all of
which together shall constitute one and the same instrument.

Governing
law, jurisdiction and process agent

31.1                           This
Agreement shall be governed by, and interpreted in accordance with, the laws of
Hong Kong.

31.2                           Each of
the parties agrees that the courts of Hong Kong are to have non-exclusive
jurisdiction to settle any disputes (including claims for set-off and
counterclaims) which may arise in connection with the creation, validity,
effect, interpretation or performance of, or the legal relationships
established by, this Agreement or otherwise arising in connection with this
Agreement, and for such purposes irrevocably submit to the jurisdiction of the
courts of Hong Kong.

31.3                           The
parties irrevocably waive any objections to the jurisdiction of any court
referred to in this clause 31.

31.4                           The
parties irrevocably agree that a judgment or order of any court referred to in
this clause 31 in connection with this Agreement is conclusive and binding on
them and may be enforced against it in the courts of any other jurisdiction.

31.5                           The
Purchaser, Indalex and the Company shall at all times maintain an agent for
service of process and any other documents in proceedings in Hong Kong or any
other proceedings in connection with this Agreement. Such agent shall be either
a firm of Hong Kong practising solicitors or a Hong Kong incorporated company.
The initial process agents of the Purchaser and Indalex MK Electric (China)
Limited

 28
 

 

currently of 9th Floor, Grand Centre, 8 Humphreys
Avenue, Kowloon, Hong Kong and the initial process agent of the Company is
Global Applied Technologies Limited currently of 12th Floor, Railway Plaza, 39
Chatham Road South, Kowloon, Hong Kong, and any writ, judgment or other notice
of legal process shall be sufficiently served on the Purchaser, Indalex or the
Company if delivered to its process agent at its address for the time being.

31.6                           Each
of the Purchaser, Indalex and the Company agrees with the other parties that if
its process agent ceases to have an address in Hong Kong or ceases to act as
its process agent, it shall by no later than such cessation appoint a successor
process agent and will deliver to the other parties within fourteen (14) days
of such appointment a copy of a written confirmation to them by the successor
process agent of its acceptance of appointment. Until such time as service on
the other parties of a written confirmation of acceptance of appointment of a
successor process agent shall have been completed, service on the process agent
last known to the other parties at such agent’s last known address shall be
deemed sufficient service on the Purchaser, Indalex or the Company, as the case
may be.

AS WITNESS this
Agreement has been signed by the duly authorised representatives of the parties
the day and year first before written.

 29
 

 

SCHEDULE 1

TRANSFERS OF SHARES

(References in this Schedule to paragraphs are to
paragraphs of this Schedule.)

1.                                       Except
as permitted by this Schedule or with the prior written consent of the other
Party, no Party (or any Shareholder in its Group) shall:

(a)                                  transfer
any Shares;

(b)                                 grant,
declare, create or dispose of any right or interest in any Shares; or

(c)                                  create
or permit to exist any pledge, lien, fixed or floating charge or other
encumbrance over any Shares.

2.                                       Except
for transfers for which consent is given under paragraph 1, for permitted
transfers under paragraph 3 or paragraph 4, or for intra-Group transfers
permitted under paragraph 12, no Party or any Shareholder in its respective
Group may transfer Shares unless it (the Seller) and/or
members of its Group transfer all (and not some only) of the Shares
collectively held by them (the Seller’s Shares); Provided That, after the third anniversary of
Completion, the Vendor shall, subject to compliance with the provisions of this
Schedule 1, be permitted to transfer some only (and not all) of its Shares for
so long as, immediately following such transfer (a) the Vendor continues to
hold, directly, the legal and beneficial title to not less than thirty-five per
cent (35%) of the entire issued share capital of the Company and (b) the Vendor
is not under any future obligation (excluding any obligation that may arise,
but has not yet arisen at the time of such transfer, under clauses 5.7, 15, 16
or 17) to transfer any of the beneficial and/or legal title to any person which
would result in it, directly or indirectly, holding the legal and beneficial
title to less than thirty-five per cent (35%) of the entire issued share
capital of the Company.

3.                                       Provided
that the Vendor first procures that Kwong enters into a Deed of Adherence
substantially in the form attached in Part A of Schedule 7 to be bound by the
terms of the SPA and this Agreement, the Vendor shall be permitted to transfer
any of its Shares to Kwong free from any restrictions on transfer provided in
this Schedule.

4.1                                 Save
as provided in paragraph 13.1 below, no Shareholder shall transfer any Shares
during a period of two (2) years from the date of this Agreement.

4.2                                 Save
as provided in paragraph 13.2 below, for the period commencing upon the
Completion Date and ending on the third anniversary of Completion, the Vendor
shall not:

(a)                                  transfer
or agree to transfer any of the Shares (or any right or interest therein)
directly or indirectly held by it;

 30
 

 

(b)                                 grant,
declare, create or dispose of any right or interest in any of the Shares
directly or indirectly held by it; or

(c)                                  create
or permit to exist any pledge, lien, fixed or floating charge or other
encumbrance over any Shares (or any right or interest therein) directly or
indirectly held by it,

(each, a the Vendor Transfer) unless:

(i)                                     the
Vendor first gives a notice (a Transfer Notice) to
the Purchaser in accordance with paragraph 5; and

(ii)                                  immediately
following such Vendor Transfer (A) the Vendor continues to hold, directly, the
legal and beneficial title to not less than sixty per cent (60%) of the entire
issued share capital of the Company and (B) the Vendor is not under any future
obligation (excluding any obligation that may arise, but has not yet arisen at
the time of such Vendor Transfer, under clauses 5.7, 15, 16 or 17) to transfer
any of the beneficial and/or legal title to any person which would result in
it, directly or indirectly, holding the legal and beneficial title to less than
sixty per cent (60%) of the entire issued share capital of the Company;

and, following such Transfer Notice:

(aa)                            if the
Purchaser elects (the Election) within thirty (30) days of receiving the
Transfer Notice (the Acceptance
Period) to buy the
number of Shares comprised in the Transfer Notice (the Vendor Transfer Shares):

(AA)                    the Vendor
shall transfer the Vendor Transfer Shares to the Purchaser in accordance with
paragraphs 6 to 11; PROVIDED THAT, such transfer shall be completed not
later than 12:00 noon (Hong Kong time) on, but not before, the first
anniversary of the Election or, if such date is not a Business Day, on the
first Business Day thereafter; and

(BB)                        the
Purchaser shall pay or procure payment to the Vendor by banker’s draft of
twenty per cent (20%) of the total consideration agreed or determined for the Vendor
Transfer Shares in accordance with paragraphs 6 or 7 (the Consideration) within thirty (30) days after such
agreement or determination of the Consideration and, upon the completion of the
transfer, the Purchaser shall pay or procure payment to the Vendor by banker’s
draft of the remaining eighty per cent (80%) of the Consideration and otherwise
comply, mutatis mutandis, with
the provisions of paragraph 11; or

(bb)                          if the
Purchaser does not elect within the Acceptance Period to buy the Vendor
Transfer Shares, the Vendor shall be entitled to make the Vendor Transfer free
from any restrictions on transfer contained in this Agreement in respect of the
Vendor Transfer Shares at any time within ninety (90) days after the expiry of
the Acceptance Period.

 31
 

 

4.3                                 Save
as provided in paragraph 13.3 below, for the period commencing upon the
Completion Date and ending on the second anniversary of Completion, the
Purchaser shall not:

(a)                                  transfer
or agree to transfer any of the Shares (or any right or interest therein)
directly or indirectly held by it;

(b)                                 grant,
declare, create or dispose of any right or interest in any of the Shares directly or indirectly held by it; or

(c)                                  create
or permit to exist any pledge, lien, fixed or floating charge or other
encumbrance over any Shares (or any right or interest therein) directly or
indirectly held by it,

(each, a Purchaser Transfer) unless immediately following such Purchaser Transfer (A)
the Purchaser continues to, directly, hold the legal and beneficial title to
not less than ten per cent (10%) of the entire issued share capital of the
Company and (B) the Purchaser is not under any future obligation (excluding any
obligation that may arise, but has not yet arisen at the time of such Purchaser
Transfer, under clause 16) to transfer any of the beneficial and/or legal title
to any person which would result in it, directly or indirectly, holding the
legal and beneficial title to less than ten per cent (10%) of the entire issued
share capital of the Company.

5.                                       Except
as otherwise provided in this Agreement, before the Seller (or any Shareholder
in its Group) makes any transfer of the Seller’s Shares, the Seller shall first
give the other Party (the Continuing
Party) notice (a Transfer Notice) of any proposed transfer together with
details of any proposed third party purchaser (a Third Party Purchaser) the number (subject to paragraph 2 above)
of Seller’s Shares proposed to be transferred (the Target Shares), the proposed purchase price and other
material terms which the Seller and the Third Party Purchaser have agreed.

6.                                       On
receipt of the Transfer Notice, the Continuing Party shall have the right to
buy all (but not some only) of the Target Shares being offered to the Third
Party Purchaser at the price specified in the Transfer Notice (or at such other
price as the Seller and the Continuing Party agree) by giving notice to the
Seller within thirty (30) days of receiving the Transfer Notice (the Acceptance Period). The Parties’ obligations to complete the
purchase are subject to the provisions of paragraph 11.

7.                                       If
the Continuing Party wishes to buy the Target Shares but is unwilling to accept
the price specified in the Transfer Notice and fails to agree a price with the
Seller within the Acceptance Period, then the Continuing Party may refer the
question of the purchase price to an international firm of accountants (the Expert) as the Parties agree to certify the Fair
Price for the Target Shares. The following principles shall apply:

(a)                                  unless
the Parties agree otherwise, the Expert shall be a firm which is independent of
both Parties and the Third Party Purchaser;

 32
 

 

(b)                                 if
the Seller and the Continuing Party cannot agree on the firm within fifteen
(15) days after the end of the Acceptance Period, either Party may apply to the
President for the time being of the Hong Kong Society of Accountants to appoint
the Expert;

(c)                                  the
Parties shall ensure that the Expert has such information relating to the Group
as it reasonably requires in order to determine the Fair Price;

(d)                                 in
certifying the Fair Price, the Expert shall take into account all factors it
considers to be relevant, including the purchase price and other material terms
which the Seller and the Third Party Purchaser have agreed and including the
amount of distributable reserves that have been retained by the Company since
the date of Completion;

(e)                                  the
Expert shall act as an expert and not an arbitrator and its decision shall be
final and binding on the Parties;

(f)                                    the
Expert shall determine the Fair Price within fifteen (15) days after the date
of its appointment and shall state the reasons supporting its determination in
the Certificate (as defined in sub-paragraph (g) below);

(g)                                 the
Parties shall bear the cost of obtaining the Expert’s certificate (the Certificate) equally; and

(h)                                 the
Certificate shall be issued to both the Seller and the Continuing Party.

8.                                       If
an Expert is appointed under paragraph 7, the Continuing Party shall have the
right to buy the Target Shares from the Seller at the Fair Price by giving
notice to the Seller within thirty (30) days of the issue by the Expert of the
Certificate to the Continuing Party and the Seller.

9.                                       The
Continuing Party shall be bound (subject only to any Regulatory Approvals) to
buy the Target Shares on giving the Seller notice (the Exercise Notice) that it is exercising its rights under
either paragraph 6 or paragraph 8. In such event, completion of the sale and
purchase of the Target Shares shall take place within thirty (30) days after
the giving of the Exercise Notice or, if later, the obtaining of all Regulatory
Approvals. Notwithstanding the foregoing, where any Regulatory Approvals are
required, such Exercise Notice and the Continuing Party’s right to buy the
Target Shares shall cease to have effect unless the Continuing Party shall give
notice to the Seller within one hundred and twenty (120) days of the Exercise
Notice that it has obtained all necessary Regulatory Approvals and is in a
position to complete the purchase of the Target Shares.

Each of the Parties undertakes to use reasonable
endeavours to promptly obtain all necessary Regulatory Approvals, and the
Continuing Party shall keep the Seller informed of the specific Regulatory
Approvals that it requires and the progress of its application(s) therefor in a
reasonably timely manner.

 33
 

 

10.                                 If
the Continuing Party does not give an Exercise Notice under paragraph 6 or
paragraph 8, or, having given such Exercise Notice, the Exercise Notice ceases
to have effect pursuant to paragraph 9, the Seller may (subject to paragraph 11
below) transfer the Target Shares on a bona fide arm’s length sale to the Third
Party Purchaser at a price not less than the purchase price specified in the
Transfer Notice or, if lower, the Fair Price determined under paragraph 7 (if
such a determination is made), provided that the transfer is completed:

(a)                                  within
one-hundred and eighty (180) days after the later of:

(i)                        the
date of the Transfer Notice; or

(ii)                     if
the question of the purchase price has been referred to the Expert, the issue
of the Certificate; or

(b)                                 where
the Continuing Party has given an Exercise Notice under either paragraph 6 or
paragraph 8 which has ceased to have effect pursuant to paragraph 9, within one
hundred and twenty (120) days of the Continuing Party’s notice to the Seller that
it has failed to obtain the necessary Regulatory Approvals; and

the Parties shall give (or ensure that any
Shareholders in their respective Groups shall give) any approvals required by
the Articles in relation to any transfer of Shares permitted by the terms of
this paragraph 10.

11.                                 The
sale of any Target Shares to the Continuing Party or a Third Party Purchaser
shall be on the following terms:

(a)                                  the
Target Shares will be sold free from all liens, charges and encumbrances and
third party rights and together with all rights of any nature attaching to them
including all rights to any dividends or other distributions declared, paid or
made after the date of the Transfer Notice;

(b)                                 the
Continuing Party or Third Party Purchaser, as the case may be, shall assume,
with effect from the completion date, any obligations of the Seller and any
member of its Group under (and shall procure the release of) any guarantees,
indemnities, letters of comfort and/or counter-indemnities to third parties in
relation to the business of the Group in the same proportion as the number of
Target Shares bears to the total number of Shares held by the Seller upon
completion of the sale of the Target Shares. Where the buyer is the Continuing
Party, any such assumption shall be without prejudice to the Continuing Party’s
right to receive a contribution from the Seller for its share of any claims
attributable to any liabilities arising in respect of the period before the
completion date;

(c)                                  if
the buyer is a Third Party Purchaser, it shall, in the same proportion as the
number of Target Shares bears to the total number of Shares held by the Seller
upon completion of the sale of the Target Shares, take an assignment of, or
make available equivalent finance in place of, any loans, loan capital,

 34
 

 

borrowings and indebtedness in the nature of borrowing
(but excluding, for the avoidance of doubt, any debts incurred in the ordinary
course of trade which are at the relevant time outstanding on inter-company
accounts) owing at that time from any Group Member to the Seller or any member
of its Group;

(d)                                 the
Seller shall deliver to the Continuing Party or Third Party Purchaser, as the
case may be, duly executed transfer(s) in favour of the Continuing Party or
Third Party Purchaser, as the case may be, or as it may direct, together with
the appropriate share certificate(s) in respect of the Target Shares and a
certified copy of any authority under which such transfer(s) is/are executed;

(e)                                  against
delivery of the transfer(s), the Continuing Party or Third Party Purchaser
shall pay the total consideration for the relevant Target Shares to the Seller
by banker’s draft for value on the completion date;

(f)                                    the
Parties shall ensure (insofar as they are able) that the relevant transfer or
transfers (subject to their being duly stamped, stamp duty to be paid by the
Continuing Party or Third Party Purchaser, as the case may be) are registered
in the name of the Continuing Party or Third Party Purchaser, as the case may
be, or as it may direct;

(g)                                 the
Seller shall do all such other things and execute all other documents
(including any deed) as the Continuing Party or Third Party Purchaser, as the
case may be, may reasonably request to give effect to the sale and purchase of
the Target Shares;

(h)                                 if
the buyer is a Third Party Purchaser, it shall, where the Seller sells some
only (but not all) of its Shares, enter into a Deed of Adherence substantially
in the form attached in Part A of Schedule 7, or, where the Seller sells all of
its Shares, enter into a Deed of Adherence with the Seller, the Continuing
Party and the Company substantially in the form attached in Part B of Schedule
7, to be bound by the terms of the SPA and this Agreement. If requested by the
Third Party Purchaser, the Seller shall ensure that all the Directors appointed
by it resign and the resignation(s) take effect without any liability on the
Company for compensation for loss of office or otherwise (save to the extent
that the liability arises in relation to a service contract with a Director who
was acting in an executive capacity).

12.                                 Subject
to clause 19 of this Agreement, a Shareholder may at any time transfer free
from the restrictions on transfer provided in this Schedule any of the Shares
held by it to:

(a)                                  (where
the transferor is one of the Parties itself) a wholly-owned Subsidiary of that
Party; or

(b)                                 (where
the transferor is a Subsidiary) either the Party of which the transferor is a
Subsidiary or a wholly-owned Subsidiary of the relevant Party; or

 35
 

 

(c)                                  (where
the transferor is the Purchaser or a wholly-owned Subsidiary of the Purchaser)
either Indalex or a wholly-owned Subsidiary of Indalex.

13.1                           The
restrictions in paragraph 4.1 shall not apply to transfers permitted under
clauses 5.7, 15, 16 or 17 and Schedules 2 or 4 of this Agreement, permitted
transfers under paragraphs 3, 4.2 or 4.3 or intra-group transfers permitted
under paragraph 12.

13.2                           The
restrictions in paragraph 4.2 shall not apply to transfers permitted under
clauses 15, 16 or 17 and Schedules 2 or 4, permitted transfers under paragraph
3 or intra-group transfers permitted under paragraph 12.

13.3                           The
restrictions in paragraph 4.3 shall not apply to transfers permitted under
clauses 5.7, 15, 16 or 17 and Schedules 2 or 4 of this Agreement or intra-group
transfers permitted under paragraph 12.

 36
 

 

SCHEDULE 2

PUT AND CALL OPTIONS

(References in this Schedule to paragraphs are to
paragraphs of this Schedule.)

(For the purposes of this Schedule, references to the
legal and beneficial interest of the Vendor or the Purchaser in the share
capital of the Company shall include any interests held by any Shareholder, in
the case of the Vendor, in the Vendor Group or, in the case of the Purchaser,
the Purchaser Group or the Indalex Group and, where the context so permits,
references to the Vendor or the Purchaser shall include any Shareholder, in the
case of the Vendor, in the Vendor Group or, in the case of the Purchaser, the
Purchaser Group or the Indalex Group.)

A.                                    Purchaser’s
Put Option

1.                                       The
Vendor grants to the Purchaser an option for the Purchaser to sell to the
Vendor and to require the Vendor to buy (the Put Option) the Purchaser’s entire legal and beneficial interest in
the share capital of the Company (including any third party rights to acquire
Shares, either issued or unissued, at a future date) (the Put Option Securities) on the terms set out below. The Put
Option may be exercised by notice from Indalex given upon:

(a)                                  the
occurrence of a Deadlock pursuant to clause 5.7 of this Agreement; or

(b)                                 Kwong
ceasing to hold, directly or indirectly, the legal and beneficial title to at
least thirty-five per cent (35%) of the entire issued share capital of the
Vendor unless, in accordance with rule 14.23(6)(a) of the Hong Kong Listing
Rules, within fourteen (14) days (or such longer period as the Hong Kong Stock
Exchange may agree with the Vendor) of Kwong having reduced his percentage
interest in the entire issued share capital of the Vendor to below thirty-five
per cent (35%) by placing some of his ordinary shares to a third person who is
not his associate (as defined in chapter 1 of the Hong Kong Listing Rules),
additional ordinary shares in the Vendor are issued to Kwong such that his
percentage interest in the entire issued share capital of the Vendor is at
least thirty-five per cent (35%) and (i) the price at which the Vendor’s
ordinary shares are issued is not less than the price at which the shares were
placed after adjusting for the expenses of the placing; and (ii) the issue does
not increase his percentage interest in the Vendor’s entire issued share
capital of the Vendor above his percentage interest immediately before the
placing; or

(c)                                  the
Vendor ceasing to hold, directly, the legal and beneficial title to at least
sixty per cent (60%) of the entire issued share capital of the Company; or

(d)                                 a
failure by the Vendor, within thirty (30) days after receipt of a Vendor
Default Notice served by the Purchaser pursuant to clause 17.1 of this
Agreement, to stop and, to the extent that it is possible, remedy the Vendor
Breach

 37
 

 

(in the case of (a) to (c), each, a Put Option Triggering Event or, in the case of (d), a Default Put Option Triggering Event).

Put Option Price

2.                                       The
price per Share payable for the Put Option Securities under the Put Option (the
Put Option Price) shall be:

(a)                                  if
the exercise of the Put Option is triggered by a Put Option Triggering Event
occurring within two (2) years after the date hereof, the same price per Share
as that paid by the Purchaser for its Shares under the SPA; or

(b)                                 if
the exercise of the Put Option is triggered by a Put Option Triggering Event
occurring on or after the second anniversary of the date hereof, the Fair Price
as determined by the Parties or, if the Parties fail to agree a Fair Price
within fifteen (15) days after a notice is given under paragraph 3, by an
international firm of accountants (the Expert) appointed
by the Parties who shall certify the Fair Price for the Put Option Securities, mutatis mutandis, in accordance with the
principles contained in paragraphs 7(a) to (h) of Schedule 1 to this Agreement;
or

(c)                                  if
the exercise of the Put Option is triggered by a Default Put Option Triggering
Event occurring within two (2) years after the date hereof, one hundred and ten
per cent (110%) of the price per Share paid by the Purchaser for its Shares
under the SPA; or

(d)                                 if
the exercise of the Put Option is triggered by a Default Put Option Triggering
Event occurring on or after the second anniversary of the date hereof, one
hundred and ten per cent (110%) of the Fair Price as determined by the Parties
or, if the Parties fail to agree a Fair Price within fifteen (15) days after a
notice is given under paragraph 3, by an international firm of accountants (the
Expert) appointed by the Parties who shall
certify the Fair Price for the Put Option Securities, mutatis mutandis, in accordance with the
principles contained in paragraphs 7(a) to (h) of Schedule 1 to this Agreement.

Exercise of Put Option

3.                                       The
Put Option may be exercised in respect of all (but not some only) of the Put
Option Securities by sixty (60) days’ notice from the Purchaser to the Vendor
given at any time after the occurrence of a Put Option Triggering Event or a
Default Put Option Triggering Event. On the expiry of the notice or, if later,
when all Regulatory Approvals are obtained or, if the Vendor shall so elect on
not less than five (5) Business Days’ notice to the Purchaser during such sixty
(60) day period:

(a)                                  the
Vendor shall pay or procure payment for the Put Option Securities at the Put
Option Price to the Purchaser by banker’s draft made payable to Indalex for
value on the completion date;

 38
 

 

(b)                                 the
Purchaser shall give the Vendor (or procure that the Vendor is given) a
transfer or transfers in respect of the Put Option Securities duly completed in
favour of the Vendor or as the Vendor may direct and with the payment for the
Put Option Securities apportioned as the Vendor may reasonably request together
(where appropriate) with the certificates for them;

(c)                                  the
Parties shall ensure that the transfer or transfers are registered subject to
their being duly stamped (all stamp duty to be borne in equal shares by the
Vendor and the Purchaser); and

(d)                                 the
Purchaser shall ensure that any Director appointed by it resigns and that the
resignation takes effect without any liability on the Company for loss of
office or otherwise (save to the extent that the liability arises in relation
to a service contract with the Director acting in an executive capacity).

Release of guarantees

4.                                       The
Vendor undertakes that, prior to completion of any transfer of the Put Option
Securities, the Vendor shall assume the Purchaser’s obligations under any
guarantees and/or counter-indemnities to third parties in relation to the
business of the Group. Such assumption is without prejudice to the Vendor’s
right to receive a contribution from the Purchaser for its share of any claim
attributable to any liabilities arising in respect of the period during which
the Purchaser and/or any member of its Group held the Put Option Securities.

Sale free of encumbrances

5.                                       The
Put Option Securities shall be sold free from all liens, charges and
encumbrances and with all rights attached to them at the date of exercise of
the Put Option.

B.                                    Purchaser’s
Call Option

6.                                       The
Vendor grants to the Purchaser an option for the Purchaser to buy from the
Vendor and to require the Vendor to sell (the Call Option) the Vendor’s
entire legal and beneficial interest in the share capital of the Company on the
date of notice given under paragraph 8, together with any legal and beneficial
interest in the share capital of the Company acquired by the Vendor between the
date of such notice and the date of completion of the exercise of the Call
Option (including any third party rights to acquire Shares, either issued or
unissued, at a future date) (the Call Option Securities) on the terms set out below, and the
Vendor undertakes that it shall not, and shall procure that any Shareholder in
its Group shall not, without the prior written consent of the Purchaser,
dispose of any legal or beneficial interest in the Company after the receipt of
notice from the Purchaser under paragraph 8. The Call Option may be exercised
by notice from the Purchaser given upon:

(a)                                  at
any time during the period from the date hereof to the third anniversary of the
date of the date hereof:

 39
 

 

(i)                                     a
third party (or any third parties acting in concert) acquiring at least:

(A)                              thirty-five
per cent (35%) of the entire issued share capital of the Vendor, and/or

(B)                                thirty-five
per cent (35%) of the voting rights of the Vendor; or

(ii)                                  Kwong
ceasing to hold, directly or indirectly, the legal and beneficial title to at
least thirty-five per cent (35%) of the entire issued share capital of the
Vendor unless, in accordance with rule 14.23(6)(a) of the Hong Kong Listing
Rules, within fourteen (14) days (or such longer period as the Hong Kong Stock
Exchange may agree with the Vendor) of Kwong having reduced his percentage
interest in the entire issued share capital of the Vendor to below thirty-five
per cent (35%) by placing some of his ordinary shares to a third person who is
not his associate (as defined in chapter 1 of the Hong Kong Listing Rules),
additional ordinary shares in the Vendor are issued to Kwong such that his
percentage interest in the entire issued share capital of the Vendor is at
least thirty-five per cent (35%) and (A) the price at which the Vendor’s
ordinary shares are issued is not less than the price at which the shares were
placed after adjusting for the expenses of the placing; and (B) the issue does
not increase his percentage interest in the Vendor’s entire issued share
capital of the Vendor above his percentage interest immediately before the
placing; or

(iii)                               the
Vendor ceasing to hold, directly, the legal and beneficial title to at least
sixty per cent (60%) of the entire issued share capital of the Company

(each, a Call Option Triggering Event), or

(b)                                 a
failure by the Vendor, within thirty (30) days after receipt of a Vendor
Default Notice served by the Purchaser pursuant to clause 17.1 of this Agreement,
to stop and, to the extent that it is possible, remedy the Vendor Breach (a Default Call Option Triggering Event).

Call Option Price

7.                                       The
price per Share payable for the Call Option Securities under the Call Option
(the Call Option Price) shall be:

(a)                                  if
the exercise of the Call Option is triggered by a Call Option Triggering Event
occurring within two (2) years after the date hereof, the same price per Share
as that paid by the Purchaser for its Shares under the SPA; or

(b)                                 if
the exercise of the Call Option is triggered by a Call Option Triggering Event
occurring after the second anniversary of the date hereof, the Fair Price as
determined by the Parties or, if the Parties fail to agree a Fair Price within
fifteen (15) days after a notice is given under paragraph 3, by an
international

 40
 

 

firm of accountants (the Expert) appointed by the Parties who shall certify the Fair Price for the
Call Option Securities, mutatis mutandis, in
accordance with the principles contained in paragraphs 7(a) to (h) of Schedule
1 to this Agreement.

(c)                                  if
the exercise of the Call Option is triggered by a Default Call Option
Triggering Event occurring within two (2) years after the date hereof, ninety
per cent (90%) of the price per Share paid by the Purchaser for its Shares
under the SPA; or

(d)                                 if
the exercise of the Call Option is triggered by a Default Call Option
Triggering Event occurring:

(i)                        on
or after the second anniversary but before the third anniversary of the date
hereof, ninety per cent (90%) of the Fair Price, or

(ii)                     on
or after the third anniversary of the date hereof, ninety-five per cent (95%)
of the Fair Price,

as determined by the Parties or, if the Parties fail
to agree a Fair Price within fifteen (15) days after a notice is given under
paragraph 8, by an international firm of accountants (the Expert) appointed by the Parties who shall
certify the Fair Price for the Call Option Securities, mutatis mutandis, in accordance with the
principles contained in paragraphs 7(a) to (h) of Schedule 1 to this Agreement.

Exercise of Call Option

8.1                                 The
Call Option may be exercised in respect of all (but not some only) of the Call
Option Securities by sixty (60) days’ notice (the Exercise Notice) from the Purchaser to the Vendor given at
any time after the occurrence of a Call Option Triggering Event or a Default
Call Option Triggering Event. On the expiry of the Exercise Notice or, if
later, when all Regulatory Approvals are obtained:

(a)                                  the
Purchaser shall pay or procure payment for the Call Option Securities at the
Call Option Price to the Vendor by banker’s draft made payable to the Vendor
for value on the completion date;

(b)                                 the
Vendor shall give the Purchaser (or procure that the Purchaser is given) a
transfer or transfers in respect of the Call Option Securities duly completed
in favour of the Purchaser or as the Purchaser may direct and with the payment
for the Call Option Securities apportioned as the Purchaser may reasonably
request together (where appropriate) with the certificates for them;

(c)                                  the
Parties shall ensure that the transfer or transfers are registered subject to
their being duly stamped (all stamp duty to be borne in equal shares by the
Vendor and the Purchaser); and

 41
 

 

(d)                                 the
Vendor shall ensure that all the Directors appointed by it resign and that the
resignations take effect without any liability on the Company for loss of
office or otherwise (save to the extent that the liability arises in relation
to a service contract with a Director who was acting in an executive capacity).

8.2                                 If
any Regulatory Approvals have not been obtained on the expiry of the Exercise
Notice, the Purchaser shall promptly inform the Vendor of the nature of the
Regulatory Approval(s) required and shall use its reasonable endeavours to
obtain such Regulatory Approval(s) within sixty (60) days after the expiry of
the Exercise Notice. If the Purchaser fails to give notice to the Vendor that
it has secured all necessary Regulatory Approval(s) within sixty (60) days
after the expiry of the Exercise Notice, the Call Option, in respect of that
Call Option Triggering Event or Default Call Option Triggering Event, shall
lapse.

Release of guarantees

9.                                       Prior
to completion of any transfer of the Call Option Securities, the Purchaser
shall assume the Vendor’s obligations under any guarantees and/or
counter-indemnities to third parties in relation to the business of the Group.
Such assumption is without prejudice to the Purchaser’s right to receive a
contribution from the Vendor for its share of any claim attributable to any
liabilities arising in respect of the period during which the Vendor and/or any
member of its Group held the Call Option Securities.

Sale free of encumbrances

10.                                 The
Call Option Securities shall be sold free from all liens, charges and
encumbrances and with all rights attached to them at the date of exercise of
the Call Option.

 42

 

SCHEDULE 3

INTELLECTUAL PROPERTY RIGHTS

(References in this Schedule to paragraphs are to
paragraphs of this Schedule.)

1.                                      Definitions

1.1                                 In
this Schedule the following terms have the following meanings:

Business IPR means existing Intellectual Property Rights
which are held by the Vendor Group (whether as proprietor or licensee) and are
used exclusively or predominantly in connection with the business of the Vendor
Group;

existing means existing at the date of this
Agreement;

Vendor Marks means the trade marks of the Vendor
and/or any Vendor Group Member in various forms (including corporate symbols
associated with it) and whether or not registered or the subject of an
application to register;

Vendor Mark
Agreement means
an agreement for use of the Vendor Marks in a form to be agreed;

Intellectual
Property Licences means
all existing agreements or arrangements between Vendor Group Members or (as the
case may be) Purchaser Group Members or Indalex Group Members and third parties
insofar as they relate to the use of Intellectual Property Rights which have
direct application to the business of the Group;

Intellectual
Property Rights means
patents, copyrights, rights in designs, trade marks, rights in trade or
business names or internet domain names, topography and database rights, moral
rights, rights in confidential information (whether registered or unregistered,
and including applications for any such rights) and any intellectual property
rights having the same or similar effect anywhere in the world;

Major Technology means any technology other than the
operational assistance and know-how provided by the Indalex Parties pursuant to
the Strategic Alliance Agreement (as novated as contemplated by the SPA);

Registered Rights means any Intellectual Property Rights
which are registered (or the subject of an application for registration) with
any competent authority;

1.2                                 The
terms Vendor Group, Vendor Group
Member, Purchaser Group, Purchaser Group Member, Indalex Group and Indalex Group Member and
other terms defined in the main body of this Agreement have the same meanings
in this Schedule.

 43
 

 

1.3                                 In
this Schedule references to:

(a)                                  a
Party shall,
where the context may require, be deemed to include any Vendor Group Member,
Purchaser Group Member or Indalex Group Member (as the case may be) owning the
relevant Intellectual Property Right; and

(b)                                 a
third party means
any person, firm or company whose business is not within the Vendor Business or
(as the case may be) the Indalex Business.

2.                                      Consents

2.                                       It
is acknowledged that the transfer and/or licensing of particular Intellectual
Property Rights:

(a)                                  may
not be permitted by law or may prejudice the validity of the Intellectual
Property Rights being contributed; or

(b)                                 may
require the consent, approval or waiver (including waiver of a termination
right or like right upon change of ownership or control) from a third party
(referred to as a Consent).

If so, each Party will discuss with the other and the
Board an alternative solution by which the Group can receive the benefits
(subject to any associated burdens) of the Intellectual Property Rights. If the
discussions take place on a timely basis and in good faith, no Party shall
breach paragraph 3 or paragraph 8.1 of this Schedule.

3.                                      Business
IPR

3.1                                 The
Vendor is responsible for ensuring (or, in the case of Business IPR held as
licensee, ensuring insofar as it is able) that the Business IPR is assigned to
or otherwise vested in the Company in accordance with this Agreement subject to
the retention by the Vendor or by the relevant Vendor Group Member of its
rights under the licence back referred to in paragraph 3.2 below; such
assigning or vesting Vendor Group Member is referred to in this Schedule as the
assigning party.

3.2                                 In
the case of Business IPR of an assigning party:

(a)                                  the
Company shall grant (or ensure that there is granted) to the assigning party a
full licence back to use all and any such Business IPR for its remaining life;

(b)                                 such
licence shall be non-exclusive, non-transferable, irrevocable and worldwide and
shall (subject as set out in sub-paragraphs (c) and (d) below) carry the right
to sub-license;

(c)                                  an
assigning party may sub-license any Business IPR to another Vendor Group Member
for so long as it is a member of the Vendor Group;

(d)                                 if
an assigning party wishes to sub-license any Business IPR to a party other than
a member of its Group, the terms of any such sub-licence shall be subject to
agreement in each particular case between the relevant party and the Company
(such agreement not to be unreasonably withheld); and

 44
 

 

(e)                                  the
Company shall hold Business IPR subject to and with the benefit of any
Intellectual Property Licences and any other third party rights and
obligations.

3.3                                 If
the Company wishes to cease the prosecution or maintenance of any of the Business
IPR which are Registered Rights, it shall first give timely notice to the
assigning party offering to reassign that Registered Right free of charge. If
such offer is accepted by the assigning party, the Registered Right shall then
be reassigned to that party and shall then cease to be a Business IPR. If the
offer is not accepted, the Company may (subject to the terms of any
Intellectual Property Licences) cease such prosecution or maintenance and
abandon the relevant Registered Right.

4.                                      Vendor
Marks

4.1                                 In
the case of the Vendor Marks, the Vendor shall grant, or procure that each
relevant Vendor Group Member grants, to the Company a right to use the Vendor
Marks subject to and on the terms of a licence agreement to be entered into
substantially in the form of the Vendor Mark Agreement.

4.2                                 The
Vendor and/or each relevant Vendor Group Member shall also enter into a licence
agreement with any other Group Member wishing to use the Vendor Marks
substantially in the form of the Vendor Mark Agreement. Any such agreement
shall, in addition, terminate automatically if the relevant company ceases to
be a Group Member. The Company shall ensure that no Group Member uses any of
the Vendor Marks without a licence agreement.

5.                                      Product
marks

5.                                       The
Vendor shall permit, and shall ensure that each relevant Vendor Group Member
permits, the Company to use the he Vendor Marks as may specifically be applied
to products in the normal course of the Company’s business on the terms and
subject to the same limitations as set out in the Vendor Mark Agreement.

6.                                      Use
by Subsidiaries of the Company

6.                                       The
provisions of the Vendor Mark Agreement also apply to use of any of the Vendor
Marks by any Subsidiary of the Company.

7.                                      Company
IPR

7.1                                 In
the case of Intellectual Property Rights generated “in-house” by the Company or
any Group Member after the date of this Agreement (Company IPR), the Company (or other Group Member)
shall own and maintain the Company IPR.

7.2                                 If
the Company (or relevant Group Member) wishes to cease the prosecution or
maintenance of any Company IPR which are Registered Rights, it shall first give
timely notice to each Party offering to assign that Registered Right free of
charge to them. If either of them accept the offer within 90 days of the
notice, the Registered Right shall then be assigned to the Party(ies) but on
terms that it shall not subsequently be asserted against the Company (or
relevant Group Member). If such

 45
 

 

offer of assignment is not accepted within that
period, the Company (or relevant Group Member) may cease such prosecution or
maintenance and abandon the Registered Rights.

8.                                      Future
IPR of the Parties

8.1                                 For
the duration of this Agreement, if the Purchaser or Indalex transfers Major
Technology (other than any technological assistance currently being provided by
the Indalex Parties pursuant to the Strategic Alliance Agreement) to the Group,
the Purchaser or Indalex (as the case may be) shall assign to or otherwise vest
in the Company the IPR related to such technology (including any specific technology
IPR) on the following terms:

(a)                                  the
Company shall grant (or ensure that there is granted) to the Purchaser or
Indalex (as the case may be) a full licence back to use all and any such IPR
for its remaining life;

(b)                                 such
licence shall be non-exclusive, non-transferable, irrevocable and worldwide;

(c)                                  the
Company shall pay to the Purchaser or Indalex (as the case may be) a royalty
negotiated on arm’s length commercial terms; and

(d)                                 the
Company shall hold such IPR subject to and with the benefit of any Intellectual
Property Licences and any other third party rights and obligations.

8.2                                 If
a Party generates Intellectual Property Rights which have direct application to
the activities of the Group after the date of this Agreement, that Party:

(a)                                  shall
use all reasonable endeavours to keep the Company informed as to the broad
nature of any Registered Rights and any other Intellectual Property Rights so
generated; and

(b)                                 shall
negotiate in good faith with the Company to make such Intellectual Property Rights
available to the Group on such fair and reasonable terms as may be agreed.

9.                                      General

9.1                                 The
Vendor shall before Completion set out in good faith a list of Registered
Rights which it believes to be relevant Business IPR and a list of relevant
Intellectual Property Licences. Such lists shall not be regarded as exhaustive
or legally binding and the relevant Party may update or amend them in the light
of further information or investigation.

9.2                                 The
Parties shall take all such steps (including entering into such further deeds
or documents) as may reasonably be required to give effect to the provisions of
this Schedule.

 46
 

 

SCHEDULE 4

INSOLVENCY

(References in this Schedule to paragraphs are to
paragraphs of this Schedule.)

1.                                       If
an Insolvency Event occurs in relation to a Party (the Affected Party), the Affected Party shall be obliged to
notify the other Party promptly of such Insolvency Event. At any time before
the expiry of a period of ninety (90) days after the date the other Party is
notified that the Insolvency Event has occurred, the other Parry (the Buyer) may make an offer for all the Shares (the
Relevant Securities) collectively held by the Affected Party
and/or any members of its Group.

2.                                       The
offer for the Relevant Securities referred to in paragraph 1 shall take the
form of a notice to the Affected Party (the Offer Notice). The Offer Notice shall include the price offered (the Offered Price) and a statement that the offer may be
accepted within thirty (30) days of the Affected Party receiving the Offer
Notice.

3.                                       If
the Affected Party:

(a)                                  notifies
the Buyer within the thirty (30) day period that it does not accept the Offered
Price and the Buyer and the Affected Party are unable to agree a price within
that period; or

(b)                                 fails
to respond to the Buyer within the thirty (30) day period,

an internationally recognised firm of accountants (the
Expert) shall be appointed to determine the Fair
Price, mutatis mutandis, in
accordance with the principles contained in paragraphs 7(a) to (h) of Schedule
1 to this Agreement.

4.                                       If
an Expert is appointed under paragraph 3, the Buyer shall have the right to buy
the Relevant Securities from the Affected Party at the Fair Price. The Buyer
shall exercise the right to buy by giving notice to the Affected Party within
thirty (30) days of the issue by the Expert of the Certificate to the Affected
Party and the Buyer.

5.                                       Subject
only to any Regulatory Approvals, the Affected Party shall be bound to sell and
the Buyer shall be bound to buy the Relevant Securities:

(a)                                  at
the Offered Price, if the Affected Party notifies acceptance of the Offered
Price under paragraph 2; or

(b)                                 at
the Fair Price, if the Buyer notifies the exercise of its rights under
paragraph 4.

In such event, completion of the sale and purchase of
the Relevant Securities shall take place within sixty (60) days of the day on
which the Parties become so bound (the Reference Date) or, if any Regulatory Approval has not been obtained by the
end of that period, within ten (10) days of the date on which the last
Regulatory Approval to be obtained is obtained. If any Regulatory Approval has
not been obtained within

 47
 

 

one-hundred and twenty (120) days after the Reference
Date, the Offer Notice shall lapse and have no further effect.

6.                                       The
transfer of the Relevant Securities shall be on the following terms:

(a)                                  the
Relevant Securities shall be sold free from all liens, charges and encumbrances
and third party rights, together with all rights of any nature attaching to
them including all rights to any dividends or other distributions declared,
paid or made after the date of the Offer Notice;

(b)                                 with
effect from the completion date the Buyer shall assume any obligations of the
Affected Party and any member of its Group under, and shall ensure the release
of, any guarantees, indemnities, letters of comfort and/or counter-indemnities
to third parties in relation to the business of the Group. This is without
prejudice to the Buyer’s right to receive a contribution from the Affected
Party for its share of any claims attributable to any liabilities arising in
respect of the period before the completion date;

(c)                                  the
Affected Party shall deliver to the Buyer duly executed transfer(s) in favour
of the Buyer, or as it may direct, together with, if appropriate, share
certificate(s) for the Relevant Securities and a certified copy of any
authority under which such transfer(s) is/are executed;

(d)                                 against
delivery of the transfers), the Buyer shall pay the total consideration for the
Relevant Securities to the Affected Party by banker’s draft for value on the
completion date;

(e)                                  the
Parties shall ensure (insofar as they are able) that the relevant transfer or
transfers (subject to their being duly stamped, stamp duty to be paid by the
Buyer) are registered in the name of the Buyer or as it may direct;

(f)                                    the
Affected Party shall do all such other things and execute all other documents
(including any deed) as the Buyer may reasonably request to give effect to the
sale and purchase of the Affected Party’s Relevant Securities.

 48
 

 

SCHEDULE 5

GUARANTEES, BONDS, FINANCING, ARRANGEMENTS OR SIMILAR

UNDERTAKINGS EXISTING AT COMPLETION

	
  Name
  of Bank

  	
   

  	
  Borrower

  	
   

  	
  Date

  Granted

  	
   

  	
  Type of 

  Financing

  	
   

  	
  Facility

  Amount

  
	
  Asia Commercial Bank

  	
   

  	
  AAMCL

  	
   

  	
  28 July 2000

  	
   

  	
  Letter of credit & trust receipt loan

  	
   

  	
  US$2 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABSA Asia Limited

  	
   

  	
  AAMCL

  	
   

  	
  7 September 2000

  	
   

  	
  (i)             Letter of credit
  & trust receipt loan

   

  (ii)          Overdraft

  	
   

  	
  (i)             HK$20 million

   

  (ii)          HK$2 million

   

  (Maximum combined exposure under all facilities are
  not to exceed HK$20 million in total)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CITIC Ka Wah Bank

  	
   

  	
  AAMCL

  	
   

  	
  27 March 2000

  	
   

  	
  (i)             Local/foreign
  documentary credit and trust receipt loan

   

  (ii)          Overdraft

   

  (iii)       Bills negotiation under
  indemnity

  	
   

  	
  (i)             HK$20 million

   

  (ii)          HK$1 million

   

  (iii)       HK$10 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equitable Bank

  	
   

  	
  AAMCL

  	
   

  	
  12 March 2001

  	
   

  	
  (i)             Letter of credit,
  trust receipt loans, export bills and overdrafts

  	
   

  	
  (i)             US$3.0 million

  

 

 49
 

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (ii)          3 year machinery and
  equipment financing to be repayable in 36 equal instalments

  	
   

  	
  (ii)          US$1.5 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fleet National Bank

  	
   

  	
  AAMCL

  	
   

  	
  20 November 2000

  	
   

  	
  (i)             Sight and usance
  letter of credit

   

  (ii)          Trust receipt and
  shipping guarantees

   

  (iii)       Bought bills and D/A

  	
   

  	
  (i)             US$10 million

   

  (ii)          US$10 million

   

  (iii)       US$10 million

   

  (Maximum combined exposure under all facilities are
  not to exceed US$10 million in total)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Fuji Bank Limited

  	
   

  	
  AAMCL

  	
   

  	
  21 September 2000

  	
   

  	
  (i)             Letter of credit

   

  (ii)          Trust receipt

   

  (iii)       Acceptance

   

  (iv)      Shipping guarantee

  	
   

  	
  Maximum combined exposure under all facilities are
  not to exceed HK$15 million in total

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABN Amro Bank

  	
   

  	
  NAAF

  	
   

  	
  12 September 2000

  	
   

  	
  (i)             Letter of credit

   

  (ii)          Trust receipt

  	
   

  	
  US$2 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hamburgische Landesbank

  	
   

  	
  AAMCL

  	
   

  	
  14 January 2000

  	
   

  	
  (i)             General trading
  credit facilities

  	
   

  	
  (i)             US$3 million

  

 

 50
 

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (ii)          Discounting of
  accounts receivable up to 90 days on debtors acceptable to us

  	
   

  	
  (ii)          US$1 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hong Kong Chinese Bank Limited

  	
   

  	
  AAMCL

  	
   

  	
  7 March 2000

  	
   

  	
  (i)             Issuance of import
  letters of credit with documents, and subsequent inwards bills financing up
  to 90 days

   

  (ii)          Export letters of
  credit

   

  	
   

  	
  (i)             HK$7 million

   

  (ii)          HK$3 million 

   

  (Maximum combined exposure under all facilities not
  to exceed HK$7 million in total)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HSBC

  	
   

  	
  AAMCL

  	
   

  	
  2 February 2001

  	
   

  	
  (i)             Import line of
  credit

   

  (ii)          Export documentary
  credit bills

   

  (iii)       Corporate card facility

  	
   

  	
  (i)             HK$66 million

   

  (ii)          HK$10 million

   

  (ii)          HK$1 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Keppel TatLee Bank

  	
   

  	
  AAMCL

  	
   

  	
  20 March 2000

  	
   

  	
  Sight/usance irrevocable letter of credit

  	
   

  	
  US$1.5 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DBS Kwong On Bank

  	
   

  	
  AAMCL

  	
   

  	
  5 July 2000

  	
   

  	
  (i)             Letter of credit

   

  (ii)          Inwards bills
  financing

   

  (iii)       Shipping guarantees

  	
   

  	
  HK$15 million

  

 

 51
 

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (iv)      Advances against trust
  receipt

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The National Commercial Bank Ltd.

  	
   

  	
  AAMCL

  	
   

  	
  6 March 2001

  	
   

  	
  (i)             Letter of credit

   

  (ii)          Trust receipt

  	
   

  	
  HK$15 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nanyang Commercial Bank, Limited

  	
   

  	
  AAMCL

  	
   

  	
  9 August 2000

  	
   

  	
  (i)             Letter of credit

   

  (ii)          Trust receipt

  	
   

  	
  (i)             HK$30 million

   

  (ii)          HK$30 million

   

  (Maximum combined exposure under all facilities are
  not to exceed HK$30 million in total)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Standard Chartered Bank

  	
   

  	
  AAMCL

  	
   

  	
  19 September 2000

  	
   

  	
  (i)             Letter of credit

   

  (ii)          Trust receipt

  	
   

  	
  HK$40 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Debis Financial Services China Limited

  	
   

  	
  AAMCL

  	
   

  	
  12 July 1999

  	
   

  	
  Finance lease

  	
   

  	
  HK$2,536,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tokyo Leasing

  	
   

  	
  Nanhai Xinya

  	
   

  	
  15 September 1998

  	
   

  	
  Finance lease

  	
   

  	
  US$1.78 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of China Nanhai Branch

  	
   

  	
  Nanhai Xinya

  	
   

  	
  August 1998

  	
   

  	
  Short term working capital loan

  	
   

  	
  RMB¥3.73 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shenzhen Development Bank

  	
   

  	
  Nanhai Xinya

  	
   

  	
  20 July 2000

  	
   

  	
  Short term working capital loan

  	
   

  	
  RMB¥20 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nanhai Cooperative Bank

  	
   

  	
  Nanhai Panasia

  	
   

  	
  27 September 2000

  	
   

  	
  Short term working capital loan

  	
   

  	
  RMB¥5 million

  

 

 52
 

 

 

	
  Nanhai Cooperative Bank

  	
   

  	
  Nanhai Panasia

  	
   

  	
  5 September 2000

  	
   

  	
  Short term working capital loan

  	
   

  	
  RMB¥5 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Agricultural Bank - Dali Branch

  	
   

  	
  NAAF

  	
   

  	
  17 May 2000

  	
   

  	
  Short term working capital loan

  	
   

  	
  RMB¥8 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Agricultural Bank - Dali Branch

  	
   

  	
  NAAF

  	
   

  	
  17 May 2000

  	
   

  	
  Short term working capital loan

  	
   

  	
  RMB¥4 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of China - Dali Branch

  	
   

  	
  NAAF

  	
   

  	
  28 March 2000

  	
   

  	
  Short term working capital loan

  	
   

  	
  RMB¥8 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of China - Dali Branch

  	
   

  	
  NAAF

  	
   

  	
  25 October 2000

  	
   

  	
  Short term working capital loan

  	
   

  	
  RMB¥8.3 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Construction Bank - Nanhai Branch

  	
   

  	
  NAAF

  	
   

  	
  May 1998

  	
   

  	
  Short term working capital loan

  	
   

  	
  RMB¥25.9 million

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shenzhen Development Bank

  	
   

  	
  NAAF

  	
   

  	
  17 July 2000

  	
   

  	
  Short term working capital loan

  	
   

  	
  RMB¥20 million

  

 

 53
 

 

SCHEDULE
6

RETAINED EMPLOYEES

	
  Employee

  	
   

  	
  Present Position

  
	
  Mr Wui Chun Kwong

  	
   

  	
  Chairman of the Vendor

  
	
   

  	
   

  	
   

  
	
  Mr Michael Tse

  	
   

  	
  Deputy Chairman and Managing Director of the Vendor

  
	
   

  	
   

  	
   

  
	
  Mr Danny Hung

  	
   

  	
  Executive Director of the Vendor

  
	
   

  	
   

  	
   

  
	
  Mr Waltery Law

  	
   

  	
  Chief Financial Officer of the Vendor

  
	
   

  	
   

  	
   

  
	
  Ms June Yip

  	
   

  	
  Export Manager of the Group

  

 

 54
 

 

SCHEDULE 7

A.                                    DEED
OF ADHERENCE (TO BE USED WHEN A PARTY TRANSFERS SOME ONLY (BUT NOT ALL) OF ITS
SHARES)

 55

 

DEED OF ADHERENCE TO

SALE AND PURCHASE AGREEMENT AND

SHAREHOLDERS AGREEMENT

THIS
DEED is made on [    ]

BY [     ]
of [      ] (the Covenantor)

WHEREAS

(A)          On
25 April 2001, the persons in Schedule I hereto entered into a sale and
purchase agreement pursuant to which Global Applied Technologies Holdings
Limited agreed to sell and Indalex UK Limited agreed to purchase (the Acquisition) 541,935 shares of
US$0.01 each in the capital of the Company (representing at the date thereof
26.2% of the entire issued share capital of China Aluminum Group Holdings (BVI)
Limited (the Company) (such agreement, as varied, supplemented,
novated or amended from time to time, the Sale and Purchase Agreement).

(B)           On
[         ] 2001 the persons in
Schedule 2 hereto entered into a shareholders agreement governing their
relationship following the Acquisition and establishing the manner in which the
affairs of the Company would be conducted (such agreement, as varied,
supplemented, novated or amended from time to time, the Shareholders Agreement).

(C)           The
Covenantor wishes to become a party to the Sale and Purchase Agreement and the
Shareholders Agreement (together, the Agreements) immediately upon acquiring certain shares in the Company from
[        ] (the Transferor) and wishes to amend the Agreements with
the effect that the Covenantor becomes a party thereto and as such assumes
proportionately with the Transferor the rights and obligations under the
Agreements.

NOW THIS
DEED WITNESSES as follows:

Interpretation

1.             Words
and expressions defined in the Agreements shall, unless the context otherwise
requires, have the same meanings when used in this Deed.

Adherence

2.             The
Covenantor hereby covenants to and undertakes with each of the other persons in
Schedules 1 and 2 to this Deed (the Continuing Parties) and with each such other person who may from time to time
expressly adhere to the Agreements (by way of execution of a deed or by way of
novation) to be bound by and comply in all respects with the Agreements, and to
assume proportionately with the Transferor the benefits (except as specified in
clause 3 below) and obligations of the Agreements, including the restrictions
in clause 8 of the Sale and Purchase Agreement, as if the Covenantor had
executed the Agreements and was named as an original party thereto.

 56
 

 

Exceptions

3.             The
benefits of the Agreements shall transfer to the Covenantor except as follows:

(a)           the
Continuing Parties shall not be required to give non-compete undertakings in
favour of the Covenantor,

(b)           the
deadlock provisions in the Shareholders Agreement shall not apply;

(c)           there
shall be no Put Option except as provided in clause 17.1 of the Shareholders
Agreement, and there shall be no premium on any Put Option Price payable
pursuant thereto;

(d)           the
co-investment rights shall continue to apply, but there shall be no restriction
against any Continuing Party from engaging in a business or venture covered by
a co-investment opportunity if the Covenantor declines or fails to participate
in such business or venture;

(f)            the
Purchaser Disposal Date shall be amended to contain a shareholding threshold of
10%;

(g)           rights
of pre-emption shall be limited to a transfer of Shares, and no Shareholder
shall be required to maintain any particular level of shareholding or to refrain
from charging or creating other encumbrances over its Shares;

(h)           an
issue of Shares shall not be a Reserved Shareholder Matter (but all issues of
Shares must first be offered to all the Shareholders proportionately and on the
same terms);

(i)            participation
in a new business shall not be a Reserved Shareholder Matter so long as that
business is an aluminium business;

(j)            [any
other exceptions to be mutually agreed].

Notices

4.             For
the purposes of the Agreements, the Covenantor’s address for notices shall be
as follows:

Address:                [               ]

Fax No:                   [               ]

Addressed for the
personal attention of:         [               ]

Governing Law

 57
 

 

5.         This Deed
shall be governed by and construed in accordance with Hong Kong law.

Duly delivered as a Deed
on the date inserted above.

 58
 

 

SCHEDULE 1

PARTIES TO SALE AND
PURCHASE AGREEMENT

(1)           Global
Applied Technologies Holdings Limited

(2)           Indalex
UK Limited

(3)           Indalex,
Inc.

 59
 

 

SCHEDULE 2

PARTIES TO SHAREHOLDERS
AGREEMENT

(1)           Global
Applied Technologies Holdings Limited

(2)           Indalex
UK Limited

(3)           Indalex,
Inc.

(4)           China
Aluminum Group Holdings (BVI) Limited

 60
 

 

 

	
  EXECUTED as a DEED by

  	
  )

  
	
  [      ]

  	
  )

  
	
  acting by two
  Directors/

  	
  )

  
	
  a Director and
  the Secretary

  	
  )

  

 

 61
 

 

B.            DEED OF
ADHERENCE (TO BE USED WHEN A PARTY TRANSFERS ALL OF ITS SHARES)

 62
 

 

DEED OF ADHERENCE TO 

SALE AND PURCHASE AGREEMENT AND 

SHAREHOLDERS AGREEMENT

THIS DEED is made on [     ]

BETWEEN

(1)           GLOBAL APPLIED TECHNOLOGIES HOLDINGS LIMITED
of [     ]

(GAT)

(2)           INDALEX UK LIMITED of [     ]

(3)           INDALEX, INC. of [     ]

(Indalex
UK Limited and Indalex, Inc. together, the Indalex Contracting Parties)

(4)           CHINA ALUMINUM GROUP HOLDINGS
(BVI) LIMITED of
[     ] (the Company)

(5)           [     ] of
[     ]

(the Transferee).

WHEREAS

(A)          GAT and the Indalex Contracting Parties are
parties to a sale and purchase agreement dated 25 April 2001 pursuant to which
GAT agreed to sell and Indalex UK Limited agreed to purchase 541,935 Shares of
US$0.01 each in the Company (representing at the date thereof 26.2% of the
entire issued share capital in the Company) (such agreement, as varied,
supplemented, novated or amended from time to time, the Sale and Purchase Agreement).

(B)           GAT, the Indalex Parties and the Company are
parties to a shareholders agreement dated [     ] 2001
with respect to the affairs of the Company (such agreement, as varied,
supplemented, novated or amended from time to time, the Shareholders Agreement).

(C)           [     ] (the Transferor) intends to transfer
[     ] shares in the capital of the Company subject
to the Transferee entering into this Deed.

(D)          The Transferee wishes to accept such shares
subject to such condition and to enter into this Deed.

NOW THIS DEED WITNESSES as follows:

 63
 

 

Interpretation

1.             Words and expressions defined in the Agreements
shall, unless the context otherwise requires, have the same meanings when used
in this Deed.

Novation

2.1           With effect from [     ] and [     ] (the Continuing
Parties) hereby
release and discharge the Transferor (save in relation to any antecedent breach)
from all its obligations under the Sale and Purchase Agreement and the
Shareholders Agreement (together, the Agreements) and, without prejudice to the other parties to the Agreements in
respect of antecedent breach, the Transferor shall cease to be a party to the
Agreements.

2.2           The Continuing Parties agree that with effect
from [          ], the following shall apply:

(a)           the
Transferee shall assume all the rights (except as specified in clause 3 below)
and obligations of the Transferor pursuant to the Agreements (including the
restrictions in clause 8 of the Sale and Purchase Agreement);

(b)           the
Transferee shall be subject to and shall perform the obligations from which the
Transferor is released and discharged pursuant to clause 1.1 as if the Transferee
had at all times been a party to the Agreements in place of the Transferor.

Exceptions

3.             The benefits of the Agreements shall transfer
to the Transferee except as follows:

(a)           the
Continuing Parties shall not be required to give non-compete undertakings in
favour of the Transferee;

(b)           the
deadlock provisions in the Shareholders Agreement shall not apply;

(c)           there
shall be no Put Option except as provided in clause 17.1 of the Shareholders
Agreement, and there shall be no premium on any Put Option Price payable
pursuant thereto;

(d)           the
co-investment rights shall continue to apply, but there shall be no restriction
against any Continuing Party from engaging in a business or venture covered by
a co-investment opportunity if the Transferee declines or fails to participate
in such business or venture;

(f)            the
definition of Purchaser Disposal Date shall be amended to contain a
shareholding threshold of 10%;

 64
 

 

(g)           rights
of pre-emption shall be limited to a transfer of Shares, and no Shareholder
shall be required to maintain any particular level of shareholding or
to refrain from charging or creating other encumbrances over its Shares;

(h)           an
issue of Shares shall not be a Reserved Shareholder Matter (but all issues of
Shares must first be offered to all the Shareholders proportionately and on the
same terms);

(i)            participation
in a new business shall not be a Reserved Shareholder Matter so long as that
business is an aluminium business;

(j)            [any
other exceptions to be mutually agreed].

Notices

4.             For the purposes of the Agreements, the
Transferee’s address for notices shall be as follows:

Address:                [               ]

Fax
No:                   [               ]

Addressed
for the personal attention of:         [               ]

Counterparts

5.             This Deed may be executed in any number of counterparts
and by the parties to it on separate counterparts, each of which shall be an
original, but all of which together shall constitute one and the same
instrument.

Governing
Law

6.             This Deed shall be governed by and construed
in accordance with Hong Kong law.

Duly
delivered as a Deed on the dated inserted above.

 65
 

 

 

	
  EXECUTED as a DEED by

  	
  )

  
	
  GLOBAL
  APPLIED TECHNOLOGIES

  	
  )

  
	
  HOLDINGS
  LIMITED

  	
  )

  
	
  acting by two
  Directors/a Director

  	
  )

  
	
  and the
  Secretary

  	
  )

  

 

 

	
  EXECUTED as a DEED by

  	
  )

  
	
  INDALEX
  UK LIMITED

  	
  )

  
	
  acting by two
  Directors/a Director

  	
  )

  
	
  and the
  Secretary

  	
  )

  

 

 

	
  EXECUTED as a DEED by

  	
  )

  
	
  INDALEX,
  INC.

  	
  )

  
	
  acting by two
  Directors/a Director

  	
  )

  
	
  and the
  Secretary

  	
  )

  

 

 

	
  EXECUTED as a DEED by

  	
  )

  
	
  CHINA
  ALUMINUM GROUP

  	
  )

  
	
  HOLDINGS
  (BVI) LIMITED

  	
  )

  
	
  acting by two
  Directors/a Director

  	
  )

  
	
  and the
  Secretary

  	
  )

  

 

 

	
  EXECUTED as a DEED by

  	
  )

  
	
  [        ]

  	
  )

  
	
  acting by two
  Directors/a Director

  	
  )

  
	
  and the Secretary

  	
  )

  

 

 66
 

 

 

	
  SIGNED by KWONG WUI CHUN

  	
  )

  	
   

  
	
  for and on
  behalf of

  	
  )

  	
  Kwong Wui Chun

  
	
  GLOBAL
  APPLIED TECHNOLOGIES

  	
  )

  	
   

  
	
  HOLDINGS
  LIMITED

  	
  )

  	
   

  

 

 

	
  SIGNED by PHILIP BERGQVIST

  	
  )

  	
   

  
	
  for and on
  behalf of

  	
  )

  	
  Philip Bergqvist

  
	
  INDALEX
  UK LIMITED

  	
  )

  	
   

  

 

 

	
  SIGNED by MARK EMERY

  	
  )

  	
   

  
	
  for and on
  behalf of

  	
  )

  	
  Mark Emery

  
	
  INDALEX,
  INC.

  	
  )

  	
   

  

 

 

	
  SIGNED by KWONG WUI CHUN

  	
  )

  	
   

  
	
  for and on
  behalf of

  	
  )

  	
  Kwong Wui Chun

  
	
  CHINA
  ALUMINUM GROUP

  	
  )

  	
   

  
	
  HOLDINGS
  (BVI) LIMITED

  	
  )

  	
   

  

 

 67

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]