Acquisition Agreement (2004)Full Document 

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ACQUISITION AGREEMENT

 

by and between

 

AsiaInfo Holdings, Inc.

 

and

 

Lenovo Group Limited

 

 

Dated as of July 27, 2004

 



TABLE OF CONTENTS

 

          Page

ARTICLE I     DEFINITIONS

   1

Section 1.1.

   Definitions    1

Section 1.2.

   Other Defined Terms    9

Section 1.3.

   Interpretation    11

ARTICLE II     PURCHASE AND SALE; CLOSING

   11

Section 2.1.

   Purchase and Sale    11

Section 2.2.

   Excluded Assets    13

Section 2.3.

   Assumed Liabilities    14

Section 2.4.

   Excluded Liabilities    15

Section 2.5.

   Purchase Price.    17

Section 2.6.

   Proration of Payments .    17

Section 2.7.

   Closing    17

Section 2.8.

   Closing Deliveries by Purchaser.    17

Section 2.9.

   Closing Deliveries by Seller    18

Section 2.10.

   Closing Balance Sheet.    19

Section 2.11.

   Conversion of the Note    21

Section 2.12.

   Earn-out.    21

Section 2.13.

   US$ to RMB Exchange Rate .    22

Section 2.14.

   Escrow Arrangement.    22

Section 2.15.

   Modification of Structure.    23

ARTICLE III     REPRESENTATIONS AND WARRANTIES OF SELLER

   23

Section 3.1.

   Organization and Qualification.    23

Section 3.2.

   Authority; Non-Contravention; Approvals    24

Section 3.3.

   Financial Statements.    25

Section 3.4.

   Absence of Undisclosed Liabilities    25

Section 3.5.

   Absence of Certain Changes or Events    26

Section 3.6.

   Books and Records.    26

Section 3.7.

   Tax Matters.    26

Section 3.8.

   Employee Benefits.    27

Section 3.9.

   Employment Matters.    28

Section 3.10.

   Labor Relations    28

Section 3.11.

   Litigation    29

 

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          Page

Section 3.12.

   No Violation of Law; Permits.    29

Section 3.13.

   Title to Assets; Encumbrances.    30

Section 3.14.

   Entire Business    30

Section 3.15.

   Transactions with Affiliates.    30

Section 3.16.

   Insurance.    30

Section 3.17.

   Contracts and Other Agreements.    31

Section 3.18.

   Tangible Personal Property.    31

Section 3.19.

   Inventory    31

Section 3.20.

   Accounts Receivable; Disputed Accounts Payable.    32

Section 3.21.

   Intellectual Property.    32

Section 3.22.

   Real Property    34

Section 3.23.

   Environmental Matters.    35

Section 3.24.

   Casualties.    35

Section 3.25.

   Product Liability.    35

Section 3.26.

   Product Returns and Warranties.    36

Section 3.27.

   Bank and Brokerage Accounts; Investment Assets.    36

Section 3.28.

   Significant Customers and Suppliers.    36

Section 3.29.

   Brokers.    36

Section 3.30.

   AsiaInfo Shares.    37

Section 3.31.

   Selling Subsidiaries    38

Section 3.32.

   Sale and Distribution Network    38

Section 3.33.

   Disclosure.    38

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PURCHASER

   38

Section 4.1.

   Organization and Qualification    38

Section 4.2.

   Authority; Non-Contravention; Approvals.    38

Section 4.3.

   Brokers.    39

Section 4.4.

   SEC Documents; Financial Statements.    39

Section 4.5.

   Absence of Undisclosed Liabilities    39

Section 4.6.

   Consents and Approvals.    39

Section 4.7.

   Litigation    40

Section 4.8.

   Absense of Certain Changes or Events.    40

Section 4.9.

   Taxes.    40

Section 4.10.

   Initial Shares and Conversion Shares.    40

 

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TABLE OF CONTENTS

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          Page

ARTICLE V    COVENANTS

   40

Section 5.1.

   Conduct of the Business    40

Section 5.2.

   Access to Information.    42

Section 5.3.

   Reasonable Efforts.    43

Section 5.4.

   Takeover Proposals.    43

Section 5.5.

   Notification.    44

Section 5.6.

   Use of Names.    44

Section 5.7.

   Tax Matters.    45

Section 5.8.

   Non-Competition.    46

Section 5.9.

   Assignment of Contracts and Rights.   

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