-
INVESTMENT TERM SHEET
Between PRAXCAPITAL FUND II, L.P.
and
A REAL ESTATE, LTD.
(CAYMAN ISLANDS)
In
relation to the offering of US$$ 30M Convertible
Notes
B
投资基金与
A
置业（开曼群岛）有限公司
关于三千万美元可转换债券融资的
投
资
条
款
书
The
intent of this document is to describe, for
negotiation purposes only, some key terms of the
proposed
agreement
between
PraxCapital
Fund
II,
L.P.
(“PraxCapital”
or
the
“Investor”)
and
A
Real
Estate,
Ltd.
(Cayman
Islands)
(“A
Cayman”
or
the
“Company”).
This
document
is
not
intended
to
be
a
binding
agreement
between
PraxCapital
and
the
Company
with
respect
to
the
subject
matter
hereof,
except
for
the
provisions
under
the
headings
“Exclusivity”,
“Confidentiality” and “Costs”. A
binding agreement will not occur unless and until
the Investor
and
the
Company
have
negotiated,
approved,
executed
and
delivered
the
appropriate
definitive
agreements. Until execution and
delivery of such definitive agreements, both
parties shall have the
absolute right
to terminate all negotiations for any reason.
本文件是为了描述
B
投资基金（
“B”
或
“
投资人
”
）和
A
地产（开曼群岛）有限公司（
“A
开
曼
”
或
“
公司
”
）之间拟订立的协议中的一些重要条款，仅
供谈判使用。本文件并非意在成为
B
和
A
开曼之间就本文件的主题达成的具有约束力的协议，但
“
排他性
”
，
“
保密
”
和
“
费用
”
标题下的条款除外。
< br>除非且直到投资人和公司已经谈判、
批准、签署并递交了合适的、
最终
确定的协议，具有约束力的协议才得以达成。在双方签署并递交上述最终确
定的协议之前，
双方均有权以任何理由终止所有谈判。
Company /
Issuer
公司
/
发行人
A REAL ESTATE, LTD. (“A Cayman” or the
“Company”), a company registered in
the
Cayman
Islands
and
currently
holding
100%
equity
interests
in
A
Real
Estate
(China)
Consulting Management Ltd. (“A WOFE”),
a company registered in China.
Prior
to
the
Closing,
A
WOFE
will
hold
100%
equity
interests
in
Henan
A
Real
Estate,
Ltd.
(“Henan A”), a company registered in
China.
A Cayman,
A WOFE and Henan A together refer to the “Group”
or “A Group”.
A<
/p>
地产（开曼群岛）有限公司（
“A
开曼<
/p>
”
或
“
公司
”
）
，一家注册于英属开曼群岛的公司，并
拥有注册于中国的
A
地产（中国）咨询
管理有限公司（
“AWOFE”
）
10
0%
的股权。
本投资交割完成前，
AWOFE
将会拥有注册于中国的河南
A
置业有限公司
（
“
河南
A”
）
100%
的股权。
A
开曼、
AWOFE
、河
南
A
统称
“
集
团
”
或
“A
集
团
”
。
Founders
创始人股东
- Mr. A:
80%
- Ms B: 20%
Securities
证券种类
Convertible Notes (“CN”)
可转换债券
(
简称
“
CN”)
Investment
Amount
投资金额
US$$
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<
/p>
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
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 NA
V 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
fulfillme
nt
of
the
Closing
Conditions,
the
Investors’
legal
counsel
will
send
to
the
Company a
Closing Condition notice acknowledging that all
the Closing conditions are met.
1)
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
< br>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。
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。
< br>
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