-
term sheet
中英文（
1
）
INVESTMENT TERM
SHEET
Between
PRAXCAPITAL FUND II, L.P
.
and
A REAL
ESTATE, LTD. (CAYMAN ISLANDS)
In relation to the offering
of US$$ 30M Convertible Notes
B
投资基金与
A
置业（开曼群岛）有限公司
关于三千万美元可转换债券融资的
投
资
条
款
书
The
intent
of
this
document
is
to
describe,
for
negotiation
purposes
only,
some
key
terms
of
the
proposed
agreement
between
PraxCapital
Fund
II,
L.P
.
(“PraxCapital”
or
the
“Investor”)
and
A
Real
Estate,
Ltd.
(Cayman
Islands)
(“A
Ca
yman”
or
the
“Company”).
This
document
is
not
intended
to
be
a
binding
agreement between PraxCapital and the
Company with respect to the subject matter
hereof, except for the provisions under
the headings “Exclusivity”, “Confidentiality”
and “Costs”. A bin
ding
agreement will not occur unless and until the
Investor and the
Company
have
negotiated,
approved,
executed
and
delivered
the
appropriate
definitive
agreements.
Until
execution
and
delivery
of
such
definitive
agreements,
both
parties
shall
have
the
absolute
right
to
terminate
all
negotiations
for
any
reason.
本文件是为了描述
B
投资基金（
“
B
”
或“投资人”
）
和
A
地产（开曼群岛）
有限公司（
“
A
开曼”或“公司”
）之间拟订立的协议中的一些
重要条款，仅供谈
判使用。本文件并非意在成为
B
和
A
开曼之间就本文件的主题达成的具有约束
力的协议，但“排他性”
，
“保密”和“费用
”标题下的条款除外。除非且直到投
资人和公司已经谈判、批准、签署并递交了合适的、
最终确定的协议，具有约束
力的协议才得以达成。
在双方签署并
递交上述最终确定的协议之前，
双方均有权
以任何理由终止所有
谈判。
Company / Issuer
公司
/
发行人
A REAL ESTATE, LTD.
(
“
A
Cayman
”
or the
“
Company
”
), a
company
registered
in
the
Cayman
Islands
and
currently
holding
100%
equity
interests
in
A
Real
Estate
(China)
Consulting
Management
Ltd.
(
“
A
WOFE
”
),
a
company registered in
China.
Prior to
the Closing, A WOFE will hold 100% equity
interests in Henan A Real
14
Estate, Ltd. (“Henan A”), a company
registered in China.
A Cayman, A WOFE and Henan A together
refer to the “Group” or “A Group”.
A
地产（开曼群岛）有限公司（
“
A
开曼”或“公司”
）
，一家注册于英属
开曼群岛的公司，并拥有注册于中国的
A
地产（中国）咨询管理有限公司
（<
/p>
“
AWOFE
”
）
100%
的股权。
本投资交割完成前，
AWOFE
将会拥有注册于中国的河南
A
置业有限公司
（
“河南
A
”
）
100%
的股权。
< br>
A
开曼、
< br>AWOFE
、河南
A
统称“集团
”或“
A
集团”
。
Founders
创始人股东
- Mr. A:
80%
- Ms B: 20%
Securities
证券种类
Convertible
Notes (
“
CN
”
)
可转换债券
(
简称“
CN
”
)
Investment
Amount
投资金额
US$$ 30 million
三千万美元
Investors
投资人
PraxCapital
Fund II Ltd. and its co-investor
B
投资基金及其共同投资人
Use of Proceeds
募集资金使用
It is
understood and agreed that there is no cash-out in
this
transaction. If the Founders have
ever received any proceeds from this transaction,
they
shall
immediately
return
the
proceeds
back
to
the
Group,
net
of
any
transaction-related taxes, if
applicable.
- Acquire land:
US$$
- Property development
cost: US$$
- Others
(specify): US$$
TOTAL: US$$
30m
双方同意本交易不产生任何现金兑现。
如果创始人从本交易中获得任何收
益，则必须立即将所得归还给
A
集团，并扣除任何相关交易税（如果有）
。
购买土地款：
US$$
物业开发费：
US$$
其他（列明）
：
US$$
合计：
US$$
30m
14
Expected Closing
Date
预期交割完成日
Two
months
after
signing
this
Term
Sheet
or
another
day
mutually agreed by the
Investors and the Company
本投
资条款书签署后两月内，或投资人与公司共同认可的其他日期
Closing Conditions
交割条件
1)
Completion
of
business,
legal
&
financial
due
diligence
of
the
Company,
including
the
obtaining
of
a
NAV
report
prepared
by
an
internationally
reputable
valuer;
2) Receipt of all
investment committee approvals required by the
Investors;
3)
Execution
and
delivery
of
legal
documentation
in
form
and
substance
satisfactory to
the Investors and their counsel;
4) Delivery of audited financial
statements of the Company prepared by Ernst
& Young in accordance with US GAAP for
the fiscal years ended December 31, 2003
and
2004
and
2005,
and
the
management
accounts
of
the
Company
for
the
six
months ended June 30, 2006;
5)
PRC/Cayman/BVI
legal
counsels
to
the
Company
and
the
Founders
have
issued
respective
legal
opinion
in
respect
of
the
Company
and
the
Founders,
addressed to the
Investors and in a form and substance reasonably
satisfactory the
Investors;
6)
The
Company
having
entered
into
three
years
non-compete
agreements
with
the
Founders
and
other
senior
executives
of
the
Company
in
form
and
substance satisfactory
to the Investors;
7)
No
material
adverse
development
affecting
the
business,
financial
conditions, management or prospects of
the Company;
8) The share
charge has been duly executed; and
9) Upon fulfillment of the
Closin
g Conditions, the Investors’
legal counsel will
send to the Company
a Closing Condition notice acknowledging that all
the Closing
conditions are
met.
1)
< br>投资人完成对公司业务、法律和财务方面的尽职调查，包括由一家国
际知名的仲量
行出具的净资产评估报告；
2)
投资人得到其投资委员会的批准；
3)
执行并出具形式和内容上令投资人及其律师满意的法律文本；
4)
公司出具经安永会计师事务所依照美国会计准则所做的<
/p>
2003
年、
2004
< br>年及
2005
年的审计报告，以及
2006
年１
-6
月份的管理报表；
5)
公司和发起人股东的中国、开
曼群岛、维尔京群岛律师出具的法律意
见书；
6)
公司与创始人股东及其他高管人员签订三年非竞争协议；
7)
公司在业务、财务、管理或前景方面无重大负面变化；
8)
股份抵押已执行；以及
9)
交割条件满足时，投资人律师将向公司呈送交割条件满足
通知，确认
所有条件均已满足。
14
Stock Option
Plan
股票期权计划
After the Closing, the Company shall
implement an Employee
Stock Option Plan
(
“
ESOP
”
) which represents up to 7% of the total number
of shares,
as if the CN are fully
converted.
公司将于交割完成后实施员工期权计划
（
“
ESOP
”
）
.
用于员工期权计划股
份最多可达
到
7
％，其计算基数为视同可转换债券全部转换为股份后的股份
数
额。
Conversion Rights
转股权利
The holders
of CN will have the right to convert part or all
of CN
into
Ordinary
shares
at
any
time
at
the
Conversion
Price
in
effect
at
the
time
of
conversion.
可转换债券
持有人有权在转股期限内依照转股时有效的转股价格随时将
部分或全部可转换债券转换为
普通股。
Conversion
Price
转股价格
The
Conversion
Price
shall
be
based
on
a
valuation,
pursuant
to
which
the
CN
holders
may
convert
all
outstanding
principal
of
all
CN
into
the
Company
’
s
Ordinary shares representing 30% of the
Company
’
s fully diluted
share
capital
(assuming
the
conversion
of
all
CN
and
the
exercise
of
all
options
granted
under the entire
ESOP).
转股价格基于估值确定：
可转换债券持有人可将全部已发行的可转换债券
本金依照该转股价格转为代表公司全面
摊薄股本（假定全部可转换债券均转股，
且全部
ESOP
计划下的期权均行权）
30%
的普通股。
Post Closing
Capitalization
交割完成后的股权结构
Assuming
the
full
conversion
of
CN
immediately
following the
Closing, the Company
’
s
capitalization shall be as follows:
假设交割完成后，
全部可转换债券立即转为股份的情况下，
公司的股权结
构将为：
Pre-ESOP Post-ESOP
不考虑期权摊薄
考虑期权摊薄
Founders
创始股东：
67.74%
63.00%
Investors
投资人：
32.26%
30.00%
ESOP
员工期权：
0%
7.00%
Total
总共：
100%
100%
Interest Rate
利率
5% per annum,
payable semi-annually in cash to CN
holders.
年利率
5%
，每半年以现金方式向可转换债券持有人支付。
Maturity
14
期限
CN
has a maturity of 24 months
可转换债券的期限为
24
个月。
Share Charge
股票质押
Upon
the
Closing,
the
Company
shall
charge
20%
of
Ordinary
Shares
in
favor
of
the
Investors
as
a
continuing
security
for
the
due
and
punctual
performance and observance by the
Company of all the obligations of the
Company
交割完成同时，
公司
须将
20%
的普通股股票质押给投资人，
作为公司及时
履行全部义务的担保。
Profit Guarantee
利润保证
The Company
and Founders undertake that the Audited Net Profit
After
Tax
(
“
NPAT
”
)
(excluding
any
exceptional
or
extraordinary
income)
of
the
Company
based on US GAAP or IAS for the fiscal year ended
on December 31, 2006
and 2007 will be
no less than U
S$$16 million (“Y2006
Guaranteed NPAT”) and US$$40
million
(“Y2007 Guaranteed NPAT”),
respectively.
公司及创始人股东保证，
公司
2006
和
20
07
年基于美国或国际会计准则审
计的税后净利润（不包括任何
例外或非经常性收益）分别不低于
1600
万美元
（
“
2006
年保证税后净
利”
）和
4000
万美元（
“
2007
年保证税后净利”
）
。
Share Adjustment
股份调整
(a) If the
Audited Net Profit After Tax achieved by the
Company for
the fiscal year ended
December 31, 2006 is less than the Y2006
Guaranteed NPAT, the
Founders
shall
transfer
to
each
of
the
Investors
such
number
of
Shares
at
an
aggregate
consideration of US$$1.00 as determined in
accordance with the following
formula:
如果公司
2006
年截止
12
月
31
日经审计税后净
利润低于所保证的税后
净利润，创始股东应以
1
美元总价转让按如下公式计算出的股份给每个投资人：
( A / B ) x C - D
Where
其中
A is the principal amount of CN issued
to the relevant Investor
发行给相关投
资人可转换债券的本金
B is the
Audited Net Profit After Tax achieved by the
Company for the fiscal
year 2006
multiplied by a price earnings ratio of 6.25 2006<
/p>
年经审计后公司净利润
乘以市盈率
6.2
5
C is the fully diluted
total number of Shares of the Company at 31
December,
2006,
as
if
all
the
outstanding
CN
are
converted
and
the
ESOP
are
fully
exercised
2
006
年
12
月
31
号当日全面摊薄股份数额（视同所有可转换债券已经转换为普
通股及员工股票期权完全行权）
D is the
aggregate of the number of Shares and principal
amount of CN held
by the relevant
Investor on an as converted basis at 31 December,
2006 2006
年
12
月
31
日相关投资人持有普通股数额及可转换债本金按
2006
年
12
月
31
日转换价转
换为股份的数额之和
< br>
(b) If the Audited Net
Profit After Tax achieved by the Company for the
fiscal
14
year
ended
December
31,
2007
is
less
than
the
Y2007
Guaranteed
NPAT,
the
Founders
shall
transfer
to
each
of
the
Investors
such
number
of
Shares
at
an
aggregate consideration of US$$1.00 as
determined in accordance with the following
formula:
如果公司
2007
年截止
12
月
31
日经审计税后净利润低于所保证的税后
净利润，创始股东应
以
1
美元总价转让按如下公式计算出的股份给每个投资人：
( A / B ) x C - D
Where
其中
A is the principal amount of CN issued
to the relevant Investor
发行给相关投
资人可转换债券的本金
B
is the Audited Net Profit After Tax achieved by
the Company for the fiscal
year 2007
multiplied by a price earnings ratio of 2.50 2007<
/p>
年经审计后公司净利润
乘以市盈率
2.5
C is the fully
diluted total number of Shares of the Company at
31 December,
2007, as if all the
outstanding CN are converted and the ESOP are
fully exercised 2007
年
12
月
31
号当日全面摊薄股份数额
< br>（视同所有可转换债券已经转换为普通股及
员工股票期权完全行权）
D
is
the
aggregate
of
the
number
of
Shares
[excluding
Shares,
if
any,
transferred pursuant to this Valuation
Adjustment clause (a) ] and principal amount
of CN held by the relevant Investor on
an as converted basis at 31 December, 2007
2007
年
12
月
31
日相关投资人持有普通股数额（不包括按照本条（
a
）获得的股
份）及可转换债本金按
2007
年
12
月
< br>31
日转换价转换为股份的数额之和
Automatic
Conversion
自动转股
Immediately
before
the
completion
of
a
Qualified
IPO
(defined
below), or upon
written consent of all the CN holders, the
outstanding principal of all
CNs
shall
be
automatically
converted
into
Ordinary
Shares
of
the
Company
at
the
Conversion Price then in
effect.
在即将完成合格
IP
O
（定义见下）实施之前，或经持全部可转换债券持有
人的书面
同意，
所有已发行的可转换债券本金将依照届时的转股价格自动转换为
< br>公司普通股。
Qualified IPO
合格
IPO
“
Qualified
IPO
”
means an IPO
on a Qualified Exchange that values
the
Company at no less than US$$400,000,000 immediately
prior to the IPO and that
results
in
aggregate
proceeds
to
the
Company
(net
of
Selling
Expenses)
of
US$$100,000,000.
合
格
IPO
是指：公司在合格证券交易所实施的
< br>IPO
，该
IPO
之前的公司估
值不低于
4
亿美元，且公司募集资金（
扣除募集费用后）不低于
1
亿美元。
“
Qualified
Exchange” means (i) the New York Stock Exchange or
the Nasdaq
Stock
Market's
National
Market
System
or
(ii)
any
other
exchange
of
recognized
14
international
reputation
and
standing
duly
approved
by
the
Company's
Board
of
Directors, including the
affirmative vote of the Investor
Directors.
合格证券交易所是指：
(i)
纽约证
券交易所或
NASDAQ
股票市场的全国市
场系统；
或者
(ii)
其他具备国际知名度、
并由公司董事会以应有程序批准
（投资
人董事须投赞成票）的交易所。
Redemption
赎回
At any time
beginning on the 25th month following the Closing
Date or
upon an Event of Default, CN
will be redeemable at the sole option of the CN
holders
at a redemption price which
would give CN holders an internal rate of return
of 15%
per annum.
自交割日之后第
25
个月起，或违约事项发生时，可转换债券
持有人有权
以保证年内部收益率
15%
的赎回价格，要求公司赎回可转换债券。
Events of Default
违约事项
An Event of
Default includes:
1) Failure
to pay interest or principal in any amount when
due
2) Material breach of
any covenants in the CN agreements
3) Breach of any transfer restriction
or non-
competition of the Founders
(“the
“Events of Default”)
违约事项包括：
1)
不能按时支付利息或偿还本金；
2)
任何违背可转换债券协议条款的重大违约行为；
3)
创始人股东任何违背股权转让限制或竞业禁止承诺的行为。
<
/p>
（
“违约事项”
）
Board of
Directors
董事会成员
The
Company
would
have
a
Board
of
Directors
(the
consisting
of
7
directors,
upon
the
Closing
Date.
The
Investors
shall
be
entitled
to
elect 2 directors to the
Board (
“
Investor
Directors
”
). The Board of
Directors of the
PRC
Subsidiary
shall
have
the
same
number
of
directors
and
consist
of
the
same
directors as that of
the Company.
公司须于交割日设立由
7
名董事组成的董事会。
投资人有权向董事会委派
2
名董事（
“投资人董事”
）
。中国子公司的董事会须与公司有相同数量的董事，
并由与公司相同的董事组成。
D&O insurance
董事责任险
The
Company
must
maintain
Directors
&
Officers
Liability
insurance for each
member of the Board of not less than
[US$$500,000].
公司须为各董事会成员维持不少
于
[50]
万美元的董事责任保险。
Anti-Dilution
反稀释条款
The
Conversion Price shall be adjusted on a full-
ratchet basis for
issuance
of
any
securities
of
the
Company
at
a
purchase
price
less
than
the
14