Document:

Subscription Agreement

 

As of __________, 2011                            

To the Board of Directors of

China Resources Development Inc.:

Gentlemen:

The undersigned hereby subscribes for and agrees to purchase _____ warrants (“Warrants”), each to purchase one Ordinary Share, at $0.50 per Warrant, of China Resources Development Inc. (the “Corporation”) for an aggregate purchase price of $_____ (“Purchase Price”).  The closing of the purchase of the Warrants shall occur simultaneously with the consummation of the Corporation’s initial public offering of securities (“IPO”) which is being underwritten by Lazard Capital Markets LLC.  The Warrants will be sold to the undersigned on a private placement basis and not as part of the IPO.

At least 24 hours prior to the effective date of the registration statement filed in connection with the IPO (“Registration Statement”), the undersigned shall deliver the Purchase Price to Graubard Miller, as escrow agent (“Escrow Agent”), to hold in a non-interest bearing account until the Corporation consummates the IPO.  Simultaneously with the consummation of the IPO, the Escrow Agent shall deposit the Purchase Price, without interest or deduction, into the trust fund (“Trust Fund”) established by the Corporation for the benefit of the Corporation’s public shareholders as described in the Corporation’s Registration Statement, pursuant to the terms of an Investment Management Trust Agreement to be entered into between the Corporation and Continental
Stock Transfer & Trust Company.  In the event that the IPO is not consummated within 14 days of the date the Purchase Price is delivered to the Escrow Agent, the Escrow Agent shall return the Purchase Price to the undersigned, without interest or deduction.

The undersigned represents and warrants that he has been advised that the Warrants have not been registered under the Securities Act of 1933, as amended (the “Securities Act”); that he is acquiring the Warrants for its account for investment purposes only; that he has no present intention of selling or otherwise disposing of the Warrants in violation of the securities laws of the United States; that he is an “accredited investor” as defined by Rule 501 of Regulation D promulgated under the Securities Act; and that he is familiar with the proposed business, management, financial condition and affairs of the Corporation.

Moreover, the undersigned agrees that he shall not sell or transfer the Warrants or any underlying securities (except for transfers (i) if the undersigned is an entity, as a distribution to partners, members or stockholders of the undersigned upon the liquidation and dissolution of the undersigned, (ii) by bona fide gift to a member of the undersigned’s immediate family or to a trust, the beneficiary of which is the undersigned or a member of the undersigned’s immediate family for estate planning purposes, (iii) by virtue of the laws of descent and distribution upon death of the undersigned, (iv) pursuant to a qualified domestic relations order, or (v) by private sales at prices no greater than the price at which the Warrants were originally purchased, in each case on the condition that such
transfers may be implemented only upon the respective transferee’s written agreement to be bound by the terms and conditions of this Subscription Agreement, the Warrant Agreement to be entered into between the Corporation and Continental Stock Transfer & Trust Company and the Insider Letter to be signed by the undersigned and filed as an exhibit to the Registration Statement) until after the Corporation consummates a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities (“Business Combination”) and acknowledges that the certificates for such Warrants shall contain a legend indicating such restriction on transferability.

  

  

  

 

The Warrants will be identical to the warrants underlying the units being offered by the Company in the IPO except that the Corporation hereby acknowledges and agrees that the Warrants shall not be redeemable by the Corporation and shall be exercisable on a cashless basis by surrendering such Warrants for that number of Ordinary Shares equal to the quotient obtained by dividing (x) the product of the number of Ordinary Shares underlying the Warrants, multiplied by the difference between the Warrant exercise price and the “Fair Market Value” (defined below) by (y) the Fair Market Value, in each case so long as the Warrants are held by the undersigned or his affiliates; provided, however, that no cashless exercise shall be permitted unless the Fair Market Value is higher than the exercise
price.  The “Fair Market Value” shall mean the average reported last sale price of the Ordinary Shares for the 10 trading days ending on the day prior to the date the Company receives the exercise notice.

 

Each party hereto hereby acknowledges that the Underwriters are third party beneficiaries of this Subscription Agreement, and this Subscription Agreement may not be modified or changed without the prior written consent of Lazard Capital Markets LLC.

 

	
Very truly yours,

	  
	
   

 

Agreed to:

 

China Resources Development Inc.

	
By:

	   
	  	
Name:

	  	
Title:

Graubard Miller, solely as Escrow Agent

  

	
By:

	    
	  	
Name:

	  	
Title:Unassociated Document

Exhibit 10.8

 

 

 

GLOBAL STRATEGIC PARTNERS LIMITED

21st Floor, New World Tower 1

18 Queen's Road, Central

Hong Kong

Tel:  (852) 2971 2871

	

John F. Ambruz

	  
	
Chairman and CEO

	  
	  	
November 22, 2010

Confidential

China Resources Development Inc.

C/o SSC Mandarin Financial Services Limited

1402 China Resources Building

26 Harbour Road, Wanchai

Hong Kong

	
Attention:

	
Mr. Robin Lee, Chairman

	  	  
	
Gentlemen:

	  

Engagement Letter

 

This letter will confirm the understanding and agreement between Global Strategic Partners Limited (“GSP”) and China Resources Development Inc. (together with any affiliates and successors, the “Company”) (the “Agreement”), as follows:

 

Engagement.  The Company confirms that it has engaged GSP as the exclusive financial advisor and coordinator to render financial advisory and co-ordination services to the Company with regard to financing for the Company in which the Company intends to raise US$75 million as a specified purpose acquisition company (the “Transaction”).  Following the Transaction, the Company intends to acquire or merge with an operating company. The Company agrees to fully co-operate with and provide all relevant information, personnel and reasonable resources to GSP during the Transaction.

 

Services.  GSP hereby accepts the engagement as exclusive financial advisor to the Company for the purposes of the Transaction and as such agrees to:

 

	
1.

	
Familiarize itself, to the extent appropriate and feasible, with the business, and prospects of the Company, it being understood that GSP will, in the course of such familiarization, rely entirely upon information provided to it by the Company and the Company’s management with respect to the operations, properties, financial condition, management and prospects of the Company and any affiliates.

 

	
2.

	
Assist in the preparation of the Company’s prospectus.

 

	
3.

	
Work with the Company’s investment bankers, lawyers, agents, underwriters, accountants, auditors, sponsors, appraisers and their respective counsels in the execution of the Transaction.

 

	
4.

	
Advise in the creation of and negotiation of the optimal financing structure in the Transaction from the Company’s point of view, including considerations of accounting, tax and management issues.

 

	
5.

	
Assist the Company in the preparation of documents related to the Transaction, including Closing.

	
6.

	
Render such other financial advisory services to the Company, including advice on mergers and acquisitions, strategic alliances and other strategic matters, as may from time to time be agreed between GSP and the Company.

  

Page 1 of 3

  

 

 

Compensation.  As compensation for the services rendered by GSP hereunder, the Company agrees to pay GSP the following compensation:

 

	
1.

	
Work Fee.  The Company will pay to GSP a work fee of US$50,000 payable in cash at the time of the signing of this Agreement and paid within 14 days of the date of this Agreement.

 

	
2.

	
Success Fee.  A success fee as follows:

 

	
  

	
2.1.

	
US$225,000 in cash at the completion of the Transaction; plus

 

	
 

	
2.2.

	
US$325,000 in cash at the completion of any merger transaction pursuant to the Company’s activity as a specified purpose acquisition company.

 

	
3.

	
Other Advisory Compensation. Compensation for GSP’s assistance in any transactions for which GSP may be hired, other than the Transaction, such as mergers, acquisitions, divestitures, strategic alliances and other strategic matters will be agreed upon between the Company and GSP in good faith and will be on customary market terms in transactions of that type.

 

	
4.

	
Fee Survival.  The Work Fee and the Success Fee will be payable to GSP if any Transaction or merger transaction for the Company contemplated under this engagement letter closes within 18 months of the termination of this Agreement.

 

Out-of-pocket Expenses. The Company will reimburse GSP for all its reasonable out-of-pocket expenses, and those of its advisors and consultants, incurred in connection with this engagement or otherwise arising out of this engagement, including reasonable travel, telephone and other similar expenses incurred on behalf of the Company. These reimbursements are payable upon the submission by GSP, from time to time, of a bill detailing such expenses together with relevant supporting documents. GSP will ask for the Company’s approval before incurring any major expenses. It is agreed that international air travel on behalf of the Company constitutes a major expense subject to prior approval by the Company.

 

Confidentiality. Except as contemplated by the terms hereof or as required by applicable law, GSP will keep confidential all non-public information concerning the Company (the “Information”) provided to it by the Company and shall not disclose such information to any third party without the Company’s prior written consent, unless it is required to do so by law. All opinions and advice, oral or written, provided by GSP under this Agreement are solely for the benefit of, and may only be relied upon by, the Company and shall not be disclosed publicly or made available to any third party or parties without the prior written consent of GSP unless it is required to do so by law. In the event that this Agreement is terminated, if the Company so
requests, GSP shall promptly return to the Company all of the Information in the control or possession of GSP.

 

Successors. The benefits of this Agreement together with the separate indemnity letter shall inure to the respective successors and assigns, and the obligations and liabilities assumed in this Agreement shall be binding upon the respective successors and assigns.

 

Termination.  Either the Company or GSP may terminate this Agreement at any time, provided that any termination by the Company must include the prior payment to GSP of earned, due and outstanding but unpaid Work Fee or Success Fee at the date of the termination and is subject to the Fee Survival above.

 

Applicable Law.  This Agreement may not be amended or modified except in writing and shall be governed by and construed in accordance with the laws of Hong Kong. The parties hereto irrevocably submit to the non-exclusive jurisdiction of the courts of Hong Kong.

 

If the foregoing correctly sets forth the understanding and agreement between us, please indicate your agreement in the space provided for that purpose below, whereupon this letter shall constitute a binding agreement.

Sincerely yours,

  

Page 2 of 3

  

 

	
GLOBAL STRATEGIC PARTNERS LIMITED

	  
	
Per:

	  /s/ John F. Ambruz
	  	  
	
Title:

	  Chairman & CEO
	  
	
Agreed.

	  
	
CHINA RESOURCES DEVELOPMENT INC.

	  
	
Per:

	  /s/ Seng Leong Lee
	  	  
	
Title:

	  Chairman & CEO

  

Page 3 of 3

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