{"id":43475,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/merger-agreement-utstarcom-telecom-co-ltd-and-guangdong.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"merger-agreement-utstarcom-telecom-co-ltd-and-guangdong","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/planning\/merger-agreement-utstarcom-telecom-co-ltd-and-guangdong.html","title":{"rendered":"Merger Agreement &#8211; UTStarcom Telecom Co. Ltd. and Guangdong UTStarcom Telecom Co. Ltd."},"content":{"rendered":"<pre><p align=\"CENTER\">\n<b>MERGER AGREEMENT<br><br>\nBY AND BETWEEN<br><br>\nUTSTARCOM TELECOM CO., LTD.<br><br>\nAND<br><br>\nGUANGDONG UTSTARCOM TELECOM CO. LTD.<br><br>\nJune 10, \n2002<\/b><\/p>\n\n<hr noshade>\n\n<br>\n\n\n<p> \n        <b>THIS MERGER AGREEMENT <\/b>(the \"<b>Agreement<\/b>\") is made as of June 10, 2002 by and between: <\/p>\n\n<p>        UTStarcom \nTelecom Co., Ltd. (\"<b>HUTS<\/b>\"), a wholly foreign owned enterprise incorporated under the law of People's Republic of China \n(\"<b>PRC<\/b>\") with its legal address at Buildings No. 2 and 3, Yile Industry Zone, No. 129 Wenyi Road, Hangzhou. Zhejiang Province, PRC (its \nlegal representative is Ying Wu); and <\/p>\n\n<p>        Guangdong \nUTStarcom Telecom Co. Ltd. (\"<b>GUTS<\/b>\"), a wholly foreign owned enterprise incorporated under the PRC with its legal address \nat No. 4, Yunshan East Road, Huizhou, Guangdong Province, PRC (its legal representative is Shao-Ning Chou). <\/p>\n\n<p>        <b>HUTS<\/b> and <b>GUTS<\/b> are both subsidiaries of UTStarcom, Inc., and intend to make and \nimplement a merger of the undertakings of GUTS with and into HUTS pursuant to the terms of this Agreement. The primary purpose of this merger is to consolidate the operations of GUTS and HUTS into one \nsubsidiary entity, to improve the operational efficiencies of UTStarcom, Inc. <\/p>\n\n<p>        <b>IT IS AGREED<\/b> as follows: <\/p>\n\n<p><b>1.    MERGER  <\/b><\/p>\n\n<\/pre>\n<ul>\n<p>        1.1  Subject<br \/>\nto the terms and conditions of this Agreement, the parties hereto agree to the merger of GUTS with and into HUTS (the<br \/>\n&#8220;<b>Merger<\/b>&#8220;) by means of absorption. In the Merger, HUTS shall be the surviving corporation and GUTS shall be dissolved and absorbed into HUTS. <\/p>\n<p>        1.2  After<br \/>\nthe completion of the Merger: <\/p>\n<ul>\n<p>        1.2.1 HUTS&#8217;s<br \/>\nname, address and legal representative shall remain unchanged. <\/p>\n<p>        1.2.2 GUTS<br \/>\nshall be dissolved and cancelled. <\/p>\n<p>        1.2.3 The<br \/>\ntotal amount of investment of HUTS shall be the sum of the total amount of investment of HUTS and GUTS, i.e., USD 28,000,000. The registered capital of HUTS shall be the<br \/>\nsum of the registered capital of HUTS and GUTS, i.e., USD 16,440,000. <\/p>\n<p>        1.2.4 100%<br \/>\nequity of HUTS shall be held by UTStarcom, Inc. <\/p>\n<p>        1.2.5 The<br \/>\nArticles of Association of HUTS in effect immediately prior to the date of this Agreement shall remain unchanged except for necessary amendments in relation to this<br \/>\nMerger and shall continue to be the Articles of Association of HUTS. <\/p>\n<\/ul>\n<\/ul>\n<p><b>2.    MERGER OF PROPERTIES, ASSETS AND LIABILITIES  <\/b><\/p>\n<ul>\n<p>        2.1  All<br \/>\nproperties, assets, rights, debts and other obligations of GUTS shall be merged into HUTS unconditionally pursuant to Appendix I. <\/p>\n<\/ul>\n<p><b>3.    ALLOCATION OF EMPLOYEES OF GUTS  <\/b><\/p>\n<ul>\n<p>        3.1  All<br \/>\nemployees of GUTS shall be allotted pursuant to Appendix II. <\/p>\n<\/ul>\n<p><b>4.    COMPLETION  <\/b><\/p>\n<ul>\n<p>        4.1  The<br \/>\ncompletion of the Merger shall take place subject to the satisfaction of the following conditions: <\/p>\n<ul>\n<p>        4.1.1 passing<br \/>\nat a duly convened board meeting of either HUTS or GUTS of an ordinary resolution approving this Merger; <\/p>\n<p>        4.1.2 duly<br \/>\nexecution of this Merger Agreement by HUTS and GUTS; <\/p>\n<p>        4.1.3 all<br \/>\nnecessary approvals of the competent government authorities of the PRC having been obtained; <\/p>\n<\/ul>\n<\/ul>\n<hr noshade>\n<ul>\n<ul>\n<\/p>\n<p>        4.1.4 the<br \/>\npost-merger business license of HUTS having been issued by the competent government authority of the PRC (&#8220;<b>Merger<br \/>\nDate<\/b>&#8220;); and <\/p>\n<p>        4.1.5 HUTS<br \/>\nand GUTS have completed all necessary publications, registrations and other matters in relation to this Merger as may be required pursuant to PRC laws and regulations. <\/p>\n<\/ul>\n<p>        4.2  To<br \/>\nsatisfy the conditions set out in Clauses 4.1, each party agrees to: <\/p>\n<ul>\n<p>        4.2.1 use<br \/>\nall reasonable endeavors to do and execute, or procure to be done and executed, all necessary acts, deeds, documents and things within their power to effect and complete<br \/>\nthe Merger on the terms and subject to the conditions herein and to give effect to all matters related to the Merger; <\/p>\n<p>        4.2.2 co-operate<br \/>\nwith a view to obtain all necessary government approvals and comply with the legal requirements (including the making of announcements) in connection<br \/>\nwith the Merger being obtained or complied with; and <\/p>\n<p>        4.2.3 provide<br \/>\nthe other party promptly with all necessary information reasonably required by such party for the preparation of any documents required for the Merger or under this<br \/>\nAgreement. <\/p>\n<\/ul>\n<\/ul>\n<p><b>5.    TRANSFER OF PROPERTIES, RIGHTS AND INTERESTS  <\/b><\/p>\n<ul>\n<p>        5.1  Upon<br \/>\nobtaining the post-merger business license by HUTS, both parties shall co-operate with each other in transferring to HUTS all properties of<br \/>\nGUTS and contracts and\/or agreements effective as of the Merger Date to which GUTS is a party. <\/p>\n<p>        5.2  The<br \/>\nchange-registration of the title to the real properties and intellectual properties of GUTS shall be completed within, three (3) months after the Merger Date.<br \/>\nOther properties of GUTS shall be deemed as having been transferred to HUTS as of the Merger Date. <\/p>\n<\/ul>\n<p><b>6.    CLEARANCE AND SUCCESSION OF CREDITS AND DEBTS  <\/b><\/p>\n<ul>\n<p>        6.1  Upon<br \/>\nthe completion of the Merger, all credits of GUTS shall be succeeded by HUTS. <\/p>\n<p>        6.2  Both<br \/>\nparties shall issue written notifications to its creditors within ten (10) days after obtaining the preliminary approval from the competent approval<br \/>\nauthority, and, within thirty (30) days, announce the Merger three times in a nationally circulated newspaper at or above the provincial level. Upon the requests of creditors, both parties<br \/>\nshall make full repayment or provide corresponding security to such creditors. All debts pending as of the Merger Date shall be succeeded by HUTS. <\/p>\n<\/ul>\n<p><b>7.    REPRESENTATIONS AND WARRANTIES  <\/b><\/p>\n<ul>\n<p>        7.1  Each<br \/>\nparty hereto represents and warrants to the other party as follows: <\/p>\n<ul>\n<p>        7.1.1 The<br \/>\nfacts and information set out in this Agreement in relation to itself are true and accurate in all material respects; <\/p>\n<p>        7.1.2 It<br \/>\nis a company duly established under the laws of the PRC and has been in continuous existence since establishment, and is validly existing and in good standing under the<br \/>\nlaws of the PRC; <\/p>\n<p>        7.1.3 It<br \/>\nhas the full capacity, right, power and authority and has taken all action necessary to execute and deliver this Agreement. The obligations of each party under this<br \/>\nAgreement are legal, valid, binding and enforceable in accordance with their terms; <\/p>\n<\/ul>\n<\/ul>\n<p align=\"CENTER\">2<\/p>\n<hr noshade>\n<ul>\n<ul>\n<\/p>\n<p>        7.1.4 Each<br \/>\nof the party has obtained all necessary approvals, consents and permissions required in accordance with applicable PRC laws for it to exercise its rights and to<br \/>\nundertake and to perform its obligations under this Agreement. All such approvals, consents and permissions are valid, subsisting and there is no circumstance known to each of the party that any such<br \/>\napprovals, consents or permissions may be withdrawn, suspended or terminated. This warranty is given as at the completion of this Merger only; <\/p>\n<p>        7.1.5 Neither<br \/>\nthe execution nor the performance of this Agreement or any document to be executed at or before the completion of this Merger will result in it losing the benefit of<br \/>\nany asset, grant, subsidy, right or privilege which it enjoys at the date of this Agreement and which would have a material adverse effect an the business or operation of each party; or will conflict<br \/>\nwith, or result in a breach of, or give rise to an event of default under, or enable a person to terminate, or relieve a person from an obligation under, any agreement or arrangement to which each<br \/>\nparty is a party and which would have a material adverse effect on its business or operation; or any legal or administrative requirement by which it is bound and which would have a material adverse<br \/>\neffect on its business or operation; and <\/p>\n<p>        7.1.6 It<br \/>\nis not involved in any legal proceedings which would reasonably be expected to have a material adverse effect on its business or operation as of the date of this<br \/>\nAgreement. <\/p>\n<p>        7.1.7 Each<br \/>\nparty intends that HUTS, as the surviving entity, shall continue to use those assets acquired and developed by GUTS during the latter&#8217;s existence as part of the<br \/>\nsurviving entity&#8217;s continuing business operations. <\/p>\n<\/ul>\n<\/ul>\n<p><b>8.    TERMINAT1ON  <\/b><\/p>\n<ul>\n<p>        8.1  This<br \/>\nAgreement shall terminate: <\/p>\n<ul>\n<p>        8.1.1 at<br \/>\nany time by mutual written agreement of the parties hereto; or <\/p>\n<p>        8.1.2 the<br \/>\nMerger is rejected by the competent government authorities. <\/p>\n<\/ul>\n<p>        8.2  The<br \/>\ntermination shall not affect the rights and obligations of the parties accrued prior to such termination. <\/p>\n<\/ul>\n<p><b>9.    GENERAL  <\/b><\/p>\n<ul>\n<p>        9.1  This<br \/>\nAgreement shall become effective upon its duly execution by both parties. <\/p>\n<p>        9.2  The<br \/>\nfailure to exercise or delay is exercising a right or remedy under this Agreement shall not constitute a waiver of the right or remedy or waiver of any rights or<br \/>\nremedies and no single or partial exercise of any right or remedy under this Agreement shall prevent any further exercise of the right or remedy or the exercise of any other right or remedy, <\/p>\n<p>        9.3  This<br \/>\nAgreement shall supersede all and any previous agreements, negotiations, understanding or arrangements between the parties hereto or any other matter referred to in<br \/>\nthis Agreement and all or any such previous agreements, negotiations, understanding or arrangements (if any) shall cease and determine with effect from the date hereof. <\/p>\n<p>        9.4  If<br \/>\nany term or provision of this Agreement shall become of be declared illegal, invalid or unenforceable for any reason whatsoever, such term or provision shall be<br \/>\nsevered from this Agreement and shall be deemed to be deleted from this Agreement provided always that if such deletion materially affects or alters the commercial basis of this Agreement, the parties<br \/>\nshall negotiate in good faith to amend and modify the provisions and terms of this Agreement as may be necessary or desirable is the circumstances. <\/p>\n<\/ul>\n<p align=\"CENTER\">3<\/p>\n<hr noshade>\n<ul>\n\n<\/ul>\n<p><b>10.  COSTS AND EXPENSES  <\/b><\/p>\n<ul>\n<p>        10.1 each<br \/>\nof the parties to this Agreement shall bear its own costs and expenses incurred in relation to the preparation of this Agreement; and <\/p>\n<p>        10.2 the<br \/>\ncost of implementing the Merger, including all stamp duty payable in respect of the carrying into effect of this Agreement and the Merger, shall be borne by the<br \/>\nrelevant party to this Agreement. <\/p>\n<\/ul>\n<p><b>11.  LIABILITY FOR BREACH OF CONTRACT  <\/b><\/p>\n<ul>\n<p>        11.1 Each<br \/>\nparty hereto shall be liable to compensate the other party for any losses sustained thereby due to any breach conducted by such party of any representation or<br \/>\nwarranty made by such Party hereunder, or inaccuracy of its representations or warranties, or any breach or non-performance of any of its agreements, covenants and obligations hereunder. <\/p>\n<\/ul>\n<p><b>12.  GOVERNING LAW AND DISPUTE RESOLUTION  <\/b><\/p>\n<ul>\n<p>        12.1 This<br \/>\nAgreement shall be governed by and construed in accordance with the laws of the PRC. <\/p>\n<p>        12.2 Any<br \/>\ndispute arising out of or in connection with this Agreement shall be submitted to <b>China International Economic and Trade Arbitration<br \/>\nCommission<\/b> for arbitration in accordance with its rules. Such arbitration shall be conducted in Beijing. The arbitral award shall be final and binding upon both parties. <\/p>\n<\/ul>\n<p>        <b>IN WITNESS<\/b>, this Agreement has born entered into the day and year first above written. <\/p>\n<table width=\"76%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tr valign=\"TOP\">\n<td width=\"49%\"> <\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"49%\"><b>UTSTARCOM TELECOM CO., LTD.<\/b><\/td>\n<\/tr>\n<tr valign=\"TOP\">\n<td width=\"49%\">\n <\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"49%\" align=\"CENTER\">\n\/s\/  YING WU      <\/p>\n<hr noshade><i>Authorized Representative<\/i><\/td>\n<\/tr>\n<tr valign=\"TOP\">\n<td width=\"49%\">\n <\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"49%\">\n[Stamp]<\/td>\n<\/tr>\n<tr valign=\"TOP\">\n<td width=\"49%\">\n <\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"49%\"><b>GUANGDONG UTSTARCOM TELECOM CO. LTD.<\/b><\/td>\n<\/tr>\n<tr valign=\"TOP\">\n<td width=\"49%\">\n <\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"49%\" align=\"CENTER\">\n\/s\/  SHAO-NING CHOU      <\/p>\n<hr noshade><i>Authorized Representative<\/i><\/td>\n<\/tr>\n<tr valign=\"TOP\">\n<td width=\"49%\">\n <\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"49%\">\n[Stamp]<\/td>\n<\/tr>\n<\/table>\n<p align=\"CENTER\">4<\/p>\n<hr noshade>\n<p align=\"CENTER\">\n<p><b>Translation Certification    <br \/>  <\/b><\/p>\n<p>        I hereby certify, under penalty of perjury of the laws of the State of California, that I have provided English translations of the following documents, and that<br \/>\neach such translation represents a fair and accurate English translation of the original Chinese document <\/p>\n<ul>\n<dl compact>\n<dt style=\"margin-bottom:-11pt;\">\u0097<\/dt>\n<dd>Merger<br \/>\nAgreement By and Between UTStarcom Telecom Co., Ltd. and Guangdong UTStarcom Telecom Co., Ltd., dated June 10, 2002. <\/dd>\n<\/dl>\n<\/ul>\n<p>Dated:<br \/>\nAugust 3, 2002 <\/p>\n<table width=\"78%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tr valign=\"TOP\">\n<td width=\"41%\"> <\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"5%\">By:<\/td>\n<td width=\"3%\"> <\/td>\n<td width=\"49%\" align=\"CENTER\">\/s\/  SHI WENQIAN      <\/p>\n<hr noshade> Shi Wenqian<br \/> <i>Corporate<br \/>\nAttorney\u0097UTStarcom China Co., Ltd.<\/i><\/td>\n<\/tr>\n<\/table>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[9205],"corporate_contracts_industries":[9516],"corporate_contracts_types":[9622,9626],"class_list":["post-43475","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-utstarcom-inc","corporate_contracts_industries-telecommunications__equipment","corporate_contracts_types-planning","corporate_contracts_types-planning__merger"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/43475","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=43475"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=43475"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=43475"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=43475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}