UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF AUGUST 2018
Commission File Number: 001-38350
LITHIUM AMERICAS CORP.
(Translation of Registrant’s name into English)
355 Burrard Street, Suite 1150,
Vancouver, British Columbia
Canada, V6C 2G8
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☐ Form 40-F ☒
Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
On August 23, 2018, Lithium Americas Corp. issued the documents attached hereto as Exhibits 99.1, 99.2, 99.3, 99.4 which are hereby incorporated by reference into this report furnished on Form 6-K.
Exhibit |
Description of Exhibit |
99.1 |
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99.2 |
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99.3 |
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99.4 |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: August 27, 2018.
LITHIUM AMERICAS CORP. |
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By: |
/s/ W. Thomas Hodgson |
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Name: W. Thomas Hodgson |
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Title: Chief Executive Officer |
Exhibit 99.1
FORM 51-102F3
MATERIAL CHANGE REPORT
Item 1 |
Name and Address of Company |
Lithium Americas Corp. (the “Company”)
1150 - 355 Burrard Street
Vancouver, BC, V6C 2G8
Item 2 |
Date of Material Change |
August 13, 2018.
Item 3 |
News Release |
A news release with respect to the contents of this report was issued on August 13, 2018 and was disseminated through the facilities of recognized newswire services. A copy of the news release was filed on SEDAR.
Item 4 |
Summary of Material Change |
On August 13, 2018, the Company announced that it has entered into definitive transaction agreements to implement a series of transactions (together, the “Transaction”), pursuant to which, among other things, a subsidiary of Sociedad Química y Minera de Chile S.A. (“SQM”) has agreed to sell its interest in Minera Exar S.A. (“Minera Exar”), the holding company for the Caucharí-Olaroz lithium brine project (“Caucharí-Olaroz” or the “Project”), to a subsidiary of Jiangxi Ganfeng Lithium Co., Ltd. (“GFL”). As a result of the Transaction, GFL will become the Company’s partner in developing and operating the Project, which is currently under development in Jujuy, Argentina. The Company’s interest in Caucharí-Olaroz will increase from 50% to 62.5%, with GFL holding the remaining 37.5% interest. In connection with the Transaction, GFL has agreed to provide the Company with a new US$100 million subordinated loan facility (the “Loan Facility”) to complement the Company’s existing financing and fully-fund the Company’s share of Caucharí-Olaroz’s anticipated Stage 1 capital expenditures.
Item 5 |
Full Description of Material Change |
On August 13, 2018, the Company announced that it has entered into definitive transaction agreements to implement the Transaction, pursuant to which, among other things, a subsidiary of SQM has agreed to sell its interest in Minera Exar to a subsidiary of GFL. As a result of the Transaction, GFL will become the Company’s partner in developing and operating the Project, which is currently under development in Jujuy, Argentina. The Company’s interest in Caucharí-Olaroz will increase from 50% to 62.5%, with GFL holding the remaining 37.5% interest. In connection with the Transaction, GFL has agreed to provide the Company with the US$100 million Loan Facility.
LEGAL_1:50655525.6
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Under the terms of the Transaction, GFL has agreed to purchase SQM’s interest in Minera Exar. SQM will receive an aggregate of US$87.5 million in cash (including repayment of outstanding indebtedness owing from Minera Exar and certain other costs) plus a deferred payment of US$50 million, which is payable on satisfaction of certain agreed milestones after the Project has successfully reached production. In addition, GFL has also agreed to provide a loan to Minera Exar to permit Minera Exar to repay US$25 million of its outstanding indebtedness owing to the Company. As a result of the Transaction, on closing, GFL will own 37.5% and the Company 62.5% (an increase from its previous 50% ownership) of Minera Exar.
GFL and the Company have agreed to enter into a new shareholders agreement governing their respective ownership interests and the business and operations of Minera Exar. The new shareholders agreement will provide the Company and GFL with shared decision-making over certain decisions of Minera Exar. The board of directors of Minera Exar will have representatives from both the Company and GFL consisting of three Company nominees and two GFL nominees. In addition, a management committee consisting of representatives of the Company and GFL will be formed to direct the development of the Project.
Pursuant to the Transaction, GFL has agreed to provide the Company with the Loan Facility. The Loan Facility is repayable exclusively out of future distributions from Minera Exar. The Loan Facility complements the Company’s existing senior credit facilities from GFL and Bangchak Corporation in the aggregate amount of US$205 million and provides the Company with committed financing expected to fully support all of the Company’s capital expenditure funding obligations for the development of Stage 1 of the Project. The Loan Facility will be unsecured and subordinated to the Company’s existing senior credit facilities and will be repaid from the proceeds of 50% of the Company’s share of future distributions from the Project. The Company will have the right to prepay the Loan Facility without penalty. Draws may be made under the Loan Facility until December 31, 2025. The Loan Facility will bear interest at a rate equal to 6-month LIBOR +5.5% per annum, subject to a maximum of 10% per annum. Interest is payable annually from 50% of the distributions paid directly and indirectly by Minera Exar to the Company, subject to compliance with the Company’s existing senior credit facilities, and to the receipt of distributions from Minera Exar.
In addition, the Company and GFL have entered into a strategic collaboration agreement (the “Strategic Collaboration Agreement”) to explore future opportunities to collaborate (the “Strategic Collaboration”) and develop lithium resources. The focus of the Strategic Collaboration Agreement will be on technical and financial collaboration with the objective of identifying and developing lithium resource projects in North and South America that leverage both companies’ respective strengths.
The Transaction is expected to close in the fourth quarter of 2018, and is subject to customary closing conditions.
The funding by GFL of Minera Exar in connection with the Transaction and the provision of the Loan Facility by GFL to the Company constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”), as GFL is a related party of the Company by virtue of its shareholdings in the Company. The Company is relying on the exemptions from the formal valuation and minority approval requirements set forth in MI 61-101. Specifically, the funding by GFL of Minera Exar is exempt from the formal valuation and minority approval requirements
LEGAL_1:50655525.6
- 3 -
on the basis of the exemptions in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the subject matter of the transaction, nor the fair market value of the consideration for the transaction, insofar as it involves GFL, is greater than 25% of the Company’s market capitalization (calculated in accordance with MI 61-101). The Loan Facility is not subject to the requirement to obtain a formal valuation. The Loan Facility is also exempt from the minority approval requirements on the basis of the exemption in section 5.7(f) of MI 61-101, as: (i) the transaction is a loan that has been obtained on reasonable commercial terms that are not less advantageous to the Company than if the loan or credit facility were obtained from a person dealing at arm’s length with the Company, and (ii) the Loan Facility contains no equity component. The Company is not aware of any prior valuation relevant to the Transaction (within the meaning of MI 61-101).
Provision of the US$100 million Loan Facility to the Company and the intercompany loans to Minera Exar from GFL are subject to the approval of the shareholders of GFL. The Company has entered into voting support agreements from GFL’s largest shareholder, pursuant to which such shareholder has agreed to vote in favour of the transactions. If the shareholder approval is not obtained, GFL has agreed to fund the intercompany indebtedness by way of equity in a manner that does not impact the relative interests of the parties and to cede a portion of its rights to off-take from Minera Exar to the Company in respect of the US$100 million Loan Facility.
The principal purposes and business reasons for, and anticipated effect of, the Transaction include: (i) increasing the Company’s interest in the Project to 62.5% from 50%; (ii) ensuring that the Company’s anticipated capital expenditure obligations with respect to the Project are fully funded; (iii) securing repayment by Minera Exar of US$25 million of its outstanding indebtedness owing to the Company and thereby providing liquidity to the Company; (iv) continuing to advance the development of the Project; and (v) leveraging GFL’s technical and project execution expertise to advance and optimize the Project.
As a result of the Transaction, GFL will acquire from SQM, directly or indirectly, SQM’s interest in Minera Exar and will hold, directly or indirectly, a 37.5% interest in Minera Exar following the Transaction (not including GFL’s indirect interest in Minera Exar resulting from its ownership of shares of the Company). GFL will also provide the Loan Facility to the Company and will be entitled to repayment of any amounts borrowed by the Company under the Loan Facility in accordance with its terms.
The Transaction will not affect GFL’s interest in the Company’s outstanding securities.
The board of directors of the Company (the “Board”) constituted a special committee of independent directors (the “Special Committee”) for the purposes of, among other things, considering the Transaction, reviewing, directing and supervising the process to be carried out by the Company and its professional advisors in assessing and negotiating the Transaction, and considering and making recommendations to the Board with respect to the Transaction.
The Special Committee was composed of Jean Fraser (Chair), Gary Cohn, George Ireland and Chaiwat Kovavisarach. In considering the Transaction, the Special Committee retained Osler, Hoskin & Harcourt LLP as its independent legal counsel and Cormark Securities Inc. (“Cormark”) as its independent financial advisor. Cormark has provided a fairness opinion to the Special Committee, concluding that, as of August 12, 2018, the Transaction was fair, from a financial point of view, to the Company and the shareholders of the Company (other than GFL and its affiliates).
LEGAL_1:50655525.6
- 4 -
After careful consideration and deliberation, the Special Committee determined that the Transaction was in the best interests of the Company and was fair to shareholders of the Company (other than GFL and its affiliates) and unanimously recommended to the Board that the Board approve the Transaction. Following receipt of the unanimous recommendation by the Special Committee, the Board (with interested directors having recused themselves) determined that the Transaction was in the best interests of the Company and was fair to shareholders of the Company (other than GFL and its affiliates) and unanimously approved the Transaction.
Item 6 |
Reliance on subsection 7.1(2) of National Instrument 51-102 |
Not applicable.
Item 7 |
Omitted Information |
No information has been intentionally omitted from this form.
Item 8 |
Executive Officer |
The name and business number of the executive officer of the Company who is knowledgeable of the material change and this report is:
Eduard Epshtein
Chief Financial Officer
1150 – 355 Burrard Street
Vancouver, BC V6C 2G8
Telephone: 1 (778)-656-5820
Item 9 |
Date of Report |
August 23, 2018
FORWARD-LOOKING INFORMATION
This material change report contains “forward-looking information” and “forward-looking statements” (which we refer to collectively as forward-looking information) under the provisions of applicable securities legislation. All statements, other than statements of historical fact, may be forward-looking information. Forward looking information can be identified by the use of statements that include words such as “anticipate”, “plan”, “continue” ,”estimate”, “expect”, “exceed”, “may”, “will”, “project”, “predict”, “propose”, “potential”, “targeting”, “exploring”, “scheduled”, “implementing”, “intend”, “could”, “might”, “should”, “believe” and similar words or expressions. Information provided in this presentation is necessarily summarized and may not contain all available material information.. Such forward-looking information is subject to various risks and uncertainties. Forward-looking information in this material change report includes, but is not limited to, statements with respect to: (i) the timing and results of the Transaction; (ii) the timing and results of the development plan at the Caucharí-Olaroz project; (iii) the timing and terms of the capital raising process; (iv) the composition of the board, management committee and management team of Minera Exar; (v) the timing and results of current development work on the Caucharí-Olaroz project; (v) the potential for future collaboration with GFL and any benefits therefrom; (vii) the Company’s ability to fund
LEGAL_1:50655525.6
- 5 -
the Caucharí-Olaroz project; (viii) statements regarding anticipated decision making with respect to Minera Exar; and (ix) anticipated rates of production at the Project. Forward looking information is based on certain assumptions, estimates, expectations, analyses and opinions made by management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Forward looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information, including, but not limited to, risks relating to changes in Project parameters as plans continue to be redefined, including the possibility that mining operations may not commence at the Project, risks relating to variations in mineral resources and mineral reserves, risks relating to the ability to access infrastructure, risks relating to changes in the price of, or worldwide demand for, battery-grade lithium carbonate, sulfuric acid or other commodities, risks relating to increased competition in the market for batter-grade lithium carbonate and related products, risks relating to global financial conditions, reliance on key personnel, operational risks inherent in the conduct of mining activities, increases in capital or operating costs and the risk of delays or increased costs that may be encountered during the development and construction process, regulatory risks, including risks relating to the acquisition of necessary permits and licenses, financing risks, including the risk that funding required for development and construction activities may not be available on satisfactory terms or at all, environmental risks, and the additional risks identified in the “Risk Factors” section of the Company’s annual information form and other reports and filings filed with applicable securities regulators. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are made as of the date hereof and the Company does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this material change report, except as required by law. Accordingly, readers are cautioned not to place undue reliance on forward-looking information.
LEGAL_1:50655525.6
EXECUTION COPY
SQM POTASIO S.A.
- and -
GFL INTERNATIONAL CO. LTD. (“GFL International”) or its Wholly-Owned Subsidiary (“GFL Wholly Owned Subsidiary”) (either GFL International or GFL Wholly-Owned Subsidiary being referred to herein as “GFL”)
- and -
LITHIUM AMERICAS CORP.
- and -
MINERA EXAR S.A.
- and, solely for the purposes of Sections 11.10 and 11.11 -
2265866 ONTARIO INC.
- and, solely for the purposes of Section 11.10 and 11.12 -
SOCIEDAD QUÍMICA Y MINERA DE CHILE S.A.
TRANSACTION AGREEMENT
LEGAL_1:50904367.3
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Article 1 INTERPRETATION |
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3 |
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1.1 |
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Definitions |
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3 |
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1.2 |
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Certain Rules of Interpretation |
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1.3 |
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Knowledge |
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10 |
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1.4 |
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Entire Agreement |
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10 |
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1.5 |
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Schedules and Exhibits |
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10 |
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Article 2 PURCHASE AND SALE |
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11 |
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2.1 |
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Actions by Parties |
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11 |
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2.2 |
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Time and Place of Closing |
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11 |
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Article 3 PURCHASE PRICE AND CLOSING DELIVERIES |
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3.1 |
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Purchase Price to the Vendor for the Purchased Shares |
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12 |
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3.2 |
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Payments |
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3.3 |
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Vendor Closing Deliveries |
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13 |
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3.4 |
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GFL Closing Deliveries |
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13 |
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3.5 |
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LAC Closing Deliveries |
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14 |
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3.6 |
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Corporate Actions |
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Article 4 REPRESENTATIONS AND WARRANTIES OF THE VENDOR |
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4.1 |
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Status of the Vendor and SQM Parent |
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15 |
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4.2 |
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Ownership of Purchased Shares and Right to Sell |
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4.3 |
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Due Authorization and Enforceability of Obligations |
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16 |
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4.4 |
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Absence of Conflicts |
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4.5 |
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Regulatory Approvals |
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4.6 |
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Litigation |
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4.7 |
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No Broker |
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4.8 |
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Status of the Company |
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4.9 |
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Subsidiaries |
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4.10 |
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Due Authorization and Enforceability of Obligations |
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4.11 |
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No Implied Representations and Warranties |
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Article 5 REPRESENTATIONS AND WARRANTIES OF GFL |
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5.1 |
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Status of GFL |
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18 |
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5.2 |
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Due Authorization and Enforceability of Obligations |
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5.3 |
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Absence of Conflicts |
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19 |
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5.4 |
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Regulatory Approvals |
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5.5 |
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Litigation |
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19 |
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5.6 |
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No Broker |
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20 |
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5.7 |
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No Implied Representations and Warranties |
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5.8 |
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Investigation by GFL |
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Article 6 REPRESENTATIONS AND WARRANTIES OF LAC |
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6.1 |
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Status of LAC |
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20 |
Table of Contents
(continued)
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Due Authorization and Enforceability of Obligations |
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6.3 |
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Absence of Conflicts |
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21 |
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6.4 |
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Regulatory Approvals |
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6.5 |
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No Shareholder Approval |
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6.6 |
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Litigation |
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6.7 |
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No Broker |
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6.8 |
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Status of the Company |
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6.9 |
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Subsidiaries |
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6.10 |
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Due Authorization and Enforceability of Obligations |
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6.11 |
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No Implied Representations and Warranties |
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Article 7 Conditions in Favour of GFL |
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7.1 |
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Truth and Accuracy of Representations of the Vendor and LAC at the Closing Time |
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7.2 |
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Performance of Obligations |
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7.3 |
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No Proceedings |
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7.4 |
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Regulatory Approvals |
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Article 8 CONDITIONS IN FAVOUR OF LAC |
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8.1 |
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Truth and Accuracy of Representations of Vendor and GFL at the Closing |
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8.2 |
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Performance of Obligations |
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25 |
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8.3 |
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No Proceedings |
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8.4 |
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Regulatory Approvals |
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Article 9 Conditions in Favour of the VENDOR |
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9.1 |
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Truth and Accuracy of Representations of LAC and GFL at the Closing Time |
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9.2 |
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Performance of Obligations |
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9.3 |
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No Proceedings |
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9.4 |
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Regulatory Approvals |
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Article 10 Termination |
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10.1 |
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Termination |
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10.2 |
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Effect of Termination |
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Article 11 COVENANTS |
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11.1 |
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Conduct of Business Prior to Closing; Shareholder Loans |
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11.2 |
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Company Approvals |
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30 |
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11.3 |
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Notice by the Parties of Certain Matters |
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11.4 |
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Confidentiality |
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30 |
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11.5 |
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Actions to Satisfy Closing Conditions |
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11.6 |
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Public Notices |
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31 |
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11.7 |
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Non-Solicitation |
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32 |
LEGAL_1:50904367.3 |
-ii- |
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Table of Contents
(continued)
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11.8 |
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Standstill |
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33 |
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11.9 |
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Continuing Support and Transitional Services |
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33 |
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11.10 |
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Termination of Certain Agreements |
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35 |
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11.11 |
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LAC, 226 and Company Release |
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35 |
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11.12 |
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Vendor and SQM Parent Release |
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Article 12 INDEMNIFICATION |
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12.1 |
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Survival |
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12.2 |
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Indemnification by the Vendor |
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35 |
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12.3 |
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Indemnification by LAC |
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12.4 |
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Indemnification by GFL |
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36 |
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12.5 |
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Exclusive Remedy |
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36 |
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Article 13 GENERAL |
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13.1 |
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Non-Waiver |
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37 |
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13.2 |
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Specific Performance |
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37 |
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13.3 |
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Expenses and Taxes |
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37 |
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13.4 |
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Stamp Tax |
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38 |
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13.5 |
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Consent |
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38 |
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13.6 |
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Right of Review and Cooperation |
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38 |
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13.7 |
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Notices |
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39 |
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13.8 |
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Assignment |
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41 |
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13.9 |
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Enurement |
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41 |
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13.10 |
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Amendment |
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41 |
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13.11 |
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Further Assurances |
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41 |
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13.12 |
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Execution and Delivery |
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41 |
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13.13 |
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Dispute Resolution |
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42 |
Schedule 3.3(a)(i) Notice pursuant Section 215 of ACL
Schedule 3.3(a)(ii) Resignation Letter
Schedule 3.3(B) Notice OF ASSIGNMENT OF IRREVOCABLE CAPITAL CONTRIBUTIONS
Schedule 3.6(A) Minutes of the Board of Directors - Resignations
Schedule 3.6(B) Minutes of the shareholders’ meeting of the Company
Schedule 3.6(D) Minutes of the Board of Directors – Acknowledge receipt of Notice pursuant to Section 215 of the ACL
SCHEDULE 11.1(a)(ii) INTERIM PERIOD ACTIVITIES
LEGAL_1:50904367.3 |
-iii- |
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Table of Contents
(continued)
Page
SCHEDULE 11.1(III)(B) APPROVED BUDGET
Schedule 11.10 termination
Schedule 11.11 LAC, 226 and COMPANY Release
Schedule 11.12 VENDOR and SQM PARENT Release
Exhibit A Form of Deferred Payment Agreement
Exhibit B COMPANY-VENDOR AFFILIATE Services
Exhibit C Form of Joint Release INSTRUCTION
LEGAL_1:50904367.3 |
-iv- |
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THIS TRANSACTION AGREEMENT is dated this 13th day of August, 2018
BETWEEN:
SQM POTASIO S.A., a corporation organized under the laws of Chile,
(the “Vendor”)
- and -
GFL INTERNATIONAL CO. LTD., a corporation organized under the laws of Hong Kong (“GFL International”), or its Wholly-Owned Subsidiary (“GFL Wholly Owned Subsidiary”)
(either GFL International or GFL Wholly-Owned Subsidiary being referred to herein as “GFL”)
- and -
LITHIUM AMERICAS CORP., a corporation organized under the laws of British Columbia, Canada,
(“LAC”)
- and -
MINERA EXAR S.A., a corporation organized under the laws of Argentina,
(the “Company”)
- and solely for the purposes of Sections 11.10 and 11.11 -
2265866 ONTARIO INC., a corporation organized under the laws of the Province of Ontario,
(“226”)
- and solely for the purposes of Sections 11.10 and 11.12 -
SOCIEDAD QUÍMICA Y MINERA DE CHILE S.A., a corporation organized under the laws of Chile,
(“SQM Parent”)
RECITALS:
A. |
The Vendor (i) is the registered and beneficial owner, and exercises control and direction over, 211,525,416 of the issued and outstanding common shares in the capital of the Company (“Common Shares”), representing 50% of the issued and outstanding Common Shares, (ii) holds irrevocable capital contributions (aportes irrevocables) that |
LEGAL_1:50904367.3
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are convertible into Common Shares or intercompany loans, made to the Company in an aggregate principal amount of $23,300,000.00 (the “SQM Irrevocable Capital Contributions”); (iii) holds indebtedness of the Company in an aggregate principal amount, as of the date of this Agreement, of approximately $19,500,000.00 (based on the face value of such indebtedness converted into US dollars) (the “Company-Vendor Indebtedness”), plus accrued but unpaid interest thereon to the Closing Date. |
B. |
SQM S.A., an Affiliate of the Vendor, has performed certain services in connection with the Cauchari-Olaroz Project (as defined below) as described in Exhibit B (the “Company-Vendor Affiliate Services”), that Vendor has estimated in the aggregate amount of US$5,800,000.00, as of the date of this Agreement (the “Vendor Services Amount”), and the Parties have agreed that, conditional upon Closing, the Company shall accept such estimate for the Company-Vendor Affiliate Services and therefore SQM S.A. shall invoice the Vendor Service Amount and the Company shall pay them concurrently with the Closing; |
D. |
It is the mutual desire of the Parties that GFL, or an Affiliate of GFL, purchase from the Vendor all of the Common Shares owned by the Vendor (the “Purchased Shares”). |
E. |
In consideration for the Purchased Shares, the aggregate purchase price shall consist of the Basic Payment (as defined below) and the Differential Additional Amount (as defined below, and together with the Basic Payment, the “Closing Payment”) and subject to certain conditions precedent being satisfied, the Deferred Payment Amount (as defined below). |
F. |
In connection therewith, the Parties also wish to effect the following transactions: |
|
(a) |
the repayment to the Vendor of the Company-Vendor Indebtedness; |
|
(b) |
the payment to the Vendor of the Vendor Services Amount; and |
|
(c) |
the assignment of all the rights of the Vendor under SQM Irrevocable Capital Contributions to GFL for a consideration based on the face-value of such indebtedness, $23,300,000.00 (the “SQM ICCs Assignment Consideration”). |
G. |
In connection with the execution and delivery of this Agreement, the Vendor will deliver to LAC and the Company duly executed resignation and release letters, to be effective as of the date of Closing (as defined below), of all of the SQM Directors and syndics, and the following officers, of the Company: [redacted – personal information] (director and vice-chairman), [redacted – personal information] (regular director), [redacted – personal information] (alternate director), [redacted – personal information] (alternate director), [redacted – personal information] (regular syndic), [redacted – personal information] (alternate syndic), all in the terms set forth in Schedule 3.3(a)(ii). |
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THEREFORE, the Parties agree as follows:
The following terms shall have the following meanings when used in this Agreement:
|
(b) |
“ACL” means the Argentine Companies Law No. 19,550, as amended. |
|
(c) |
“Affiliate” of any Person means, at the time such determination is being made, any other Person controlling, controlled by or under common control with such first Person, in each case, whether directly or indirectly. |
|
(e) |
“Ancillary Agreements” means, collectively, the Deferred Payment Agreement and the Joint Release Instruction. |
|
(f) |
“Ancillary Shareholder Agreements” shall mean, collectively, the Subscription Agreement, Indemnification Agreement and Other Agreements as such terms are defined at section 1 of Schedule 11.10. |
|
(h) |
“Bankruptcy and Equity Exception” means any bankruptcy, insolvency, fraudulent transfer or conveyance, reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and any implied covenant of good faith and fair dealing. |
|
(i) |
“Basic Payment” means an amount equal to $36,000,000. |
|
(j) |
“Books and Records” means books and records of the Company or that reasonably belong to the Company that are in the possession of the Vendor or its Affiliates, including but not limited to financial, corporate, operations and sales books, records, books of account, sales and purchase records, lists of suppliers and customers, proposals from vendors, suppliers and contractors (either awarded or not), formulae, business reports, technical reports, project controls, basic and detailed engineering information, hydrogeological models and data, plans and projections and all other documents, surveys, plans, files, records, assessments, |
LEGAL_1:50904367.3
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|
correspondence, and other data and information, financial or otherwise, including all data, information and databases stored on computer-related or other electronic media. |
|
(k) |
“Business Day” means any day, other than a Saturday or Sunday, on which commercial banks located in New York (U.S.A.), Santiago (Chile), Toronto (Canada), Hong Kong and Buenos Aires (Argentina) are open for banking business during normal banking hours. |
|
(m) |
“Claims” means claims, demands, complaints, grievances, actions, applications, suits, causes of action, Orders, charges, indictments, prosecutions, informations or other similar processes, assessments or reassessments, judgments, debts, liabilities, penalties, fines, expenses, costs, damages or losses, contingent or otherwise, whether liquidated or unliquidated, matured or unmatured, disputed or undisputed, contractual, legal or equitable, including loss of value, professional fees, including fees and disbursements of legal counsel on a full indemnity basis, and all costs incurred in investigating or pursuing any of the foregoing or any proceeding relating to any of the foregoing, excluding exemplary, punitive damages, unless pursuant to third party Claims. |
|
(n) |
“Closing” means the closing of the Transactions. |
|
(p) |
“Closing Payment” has the meaning given to such term in the recitals. |
|
(q) |
“Closing Time” has the meaning given to such term in Section 2.2. |
|
(r) |
“Common Shares” has the meaning given to such term in the recitals. |
|
(s) |
“Company” has the meaning given to such term in the preamble. |
|
(t) |
“Company Funding Payment” has the meaning given to such term in Section 3.2(b). |
|
(u) |
“Company-Vendor Affiliate Services” has the meaning given to such term in the recitals. |
|
(v) |
“Company-Vendor Indebtedness” has the meaning given to such term in the recitals; |
|
(w) |
“Vendor Services Amount” has the meaning given to such term in the recitals. |
|
(x) |
“Construction Period” has the meaning given to such term in Section 11.9(a). |
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|
(y) |
“Contracts” means contracts, licences, leases, agreements, obligations, promises, undertakings, understandings, arrangements, documents, commitments, entitlements or engagements to which any Party is a party or by which any Party is bound or under which any Party has, or will have, any liability or contingent liability (in each case, whether written or oral, express or implied), and includes any quotations, orders, proposals or tenders which remain open for acceptance and warranties and guarantees. |
|
(aa) |
“Date of Declaration of Commercial Production” shall mean the date upon which the Company has sold and received payment for at least 10 metric tonnes of lithium carbonate equivalent produced from the Cauchari-Olaroz Project. |
|
(bb) |
“Deferred Payment Agreement” means an agreement between the Vendor and GFL or a Wholly Owned Subsidiary substantially in the form attached as Exhibit A. |
|
(cc) |
“Deferred Payment Amount” means $50,000,000.00, payable by GFL or a Wholly Owned Subsidiary to the Vendor in accordance with the terms and conditions of the Deferred Payment Agreement. |
|
(dd) |
“Differential Additional Amount” means the amount equal to the difference between $87,500,000, and an amount equal to the sum of (i) the Basic Payment, (ii) the Company-Vendor Indebtedness (including any accrued but unpaid interest thereon to the Closing Date) repaid to the Vendor, (iii) the SQM ICCs Assignment Consideration, and (iv) the Vendor Services Amount paid to the Vendor at Closing, each calculated as of the Closing Date. |
|
(ee) |
“Encumbrances” means pledges, liens, charges, security interests, leases, title retention agreements, mortgages, options or adverse claims or encumbrances of any kind or character whatsoever. |
|
(ff) |
“Ganfeng Parent” means Jiangxi Ganfeng Lithium Co., Ltd., a corporation organized under the laws of the People’s Republic of China and the ultimate parent of GFL. |
|
(gg) |
“GFL” has the meaning given to such term in the preamble. |
|
(hh) |
“Governmental Authorities” means governments, regulatory authorities, governmental departments, agencies, commissions, bureaus, officials, ministers, Crown corporations, courts, bodies, boards, tribunals or dispute settlement panels or other law, rule or regulation-making organizations or entities: |
LEGAL_1:50904367.3
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|
(i) |
having or purporting to have jurisdiction on behalf of any nation, province, territory or state or any other geographic or political subdivision of any of them; or |
|
(ii) |
exercising, or entitled or purporting to exercise any administrative, executive, judicial, legislative, policy, regulatory or taxing authority or power. |
|
(ii) |
“Independent Person” means a Person other than a Party or an Affiliate or Representative of a Party. |
|
(kk) |
“LAC” has the meaning given to such term in the preamble. |
|
(ll) |
“LAC Release” means the release contemplated by Section 11.11. |
|
(mm) |
“Laws” means applicable laws (including common law or civil law), statutes, by-laws, rules, regulations, Orders, ordinances, protocols, codes, guidelines, treaties, policies, notices, directions, decrees, judgments, awards or requirements, in each case of any Governmental Authority. |
|
(nn) |
“Loss” or “Losses” means all actually suffered or incurred and paid judgments, debts, liabilities, penalties, fines, expenses, costs, damages or losses, contingent or otherwise, whether liquidated or unliquidated, matured or unmatured, disputed or undisputed, contractual, legal or equitable, including loss of value, professional fees, including reasonable fees and disbursements of legal counsel on a full indemnity basis, and all costs incurred in investigating or pursuing any of the foregoing or any proceeding relating to any of the foregoing, excluding exemplary, aggravated or punitive damages, unless pursuant to third party Claims. |
|
(oo) |
“MI 61-101” means Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions of the Canadian Securities Administrators. |
|
(pp) |
“Notice” has the meaning given to such term in Section 13.6. |
|
(qq) |
“Orders” means orders, injunctions, judgments, administrative complaints, decrees, rulings, awards, assessments, directions, instructions, penalties or sanctions issued, filed or imposed by any Governmental Authority or arbitrator. |
LEGAL_1:50904367.3
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|
the shareholders or other equity holders of such Person or any other separate or special authorization of any nature, other than authorization by the director(s) (or their equivalent) of such Person, or (ii) is specified on Schedule 11.1(a)(ii). |
|
(ss) |
“Outside Date” means December 31, 2018. |
|
(tt) |
“Parties” means, collectively, the Vendor, GFL, LAC, the Company, and solely for the purposes of Sections 11.10 and 11.11, 226, and, solely for the purposes of Sections 11.10 and 11.12, SQM Parent, and “Party” means any one of them. |
|
(vv) |
“Proceedings” means any investigations (including any audit or examination), actions, claims, suits or proceedings (public or private) by or before a Governmental Authority or any arbitrator. |
|
(ww) |
“Purchased Shares” has the meaning given to such term in the recitals. |
|
(xx) |
“Representative” means, with respect to any Person, any director, officer or employee of such Person and any agent, consultant, legal, accounting, financial or other advisor or other representative authorized by such Person to represent or act on behalf of such Person. |
|
(yy) |
“Resigning Persons” has the meaning given to such term in Section 3.3(a). |
|
(zz) |
“Shareholder Loans” has the meaning given to such term in the Shareholders Agreement; |
|
(aaa) |
“Shareholders Agreement” means the amended and restated shareholders agreement of the Corporation, by and among the Vendor, LAC, 226 and the Company, dated as of October 3, 2017. |
|
(bbb) |
“Spring Event” has the meaning given to such term in Section 11.8(a). |
|
(ccc) |
“SQM Directors” means the “SQM Directors” as such term is defined in the Shareholders Agreement. |
|
(ddd) |
“SQM Irrevocable Capital Contributions” has the meaning given to such term in the recitals. |
|
(eee) |
“SQM ICCs Assignment Consideration” has the meaning given to such term in the recitals. |
|
(fff) |
“SQM Parent” has the meaning given to such term in the preamble. |
|
(ggg) |
“Standstill Period” has the meaning given to such term in Section 11.8(a). |
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|
(hhh) |
“Subsidiary” means with respect to any Person, any other Person who, directly or indirectly, is controlled by such first Person. |
|
(iii) |
“Support Staff” means [redacted – personal information]. |
|
(jjj) |
“Support Staff Compensation” has the meaning given to such term in Section 11.1.(f). |
|
(kkk) |
“Suport Staff Temporary Employment” has the meaning given to such term in Section 11.1(f). |
|
(lll) |
“Taxes” means, with respect to any Person, all supranational, national, federal, provincial, state, local or other taxes, including income taxes, branch taxes, profits taxes, capital gains taxes, gross receipts taxes, windfall profits taxes, value added taxes, severance taxes, ad valorem taxes, property taxes, capital taxes, net worth taxes, production taxes, sales taxes, use taxes, licence taxes, excise taxes, franchise taxes, environmental taxes, transfer taxes, withholding or similar taxes, payroll taxes, employment taxes, employer health taxes, government pension plan premiums and contributions, social security premiums, workers’ compensation premiums, employment/unemployment insurance or compensation premiums and contributions, stamp taxes, occupation taxes, premium taxes, alternative or add-on minimum taxes, GST/HST, customs duties or other taxes of any kind whatsoever imposed or charged by any Governmental Authority and any instalments in respect thereof, interest, penalties, or additions with respect thereto and any interest in respect of such additions or penalties, and whether disputed or not, and “Tax” means any one of such Taxes. |
|
(mmm) |
“Technical Discussions” has the meaning given to such term in Section 11.9(a). |
|
(nnn) |
“Termination Agreement” means the agreement relating to the termination of certain arrangements contemplated by Section 11.10. |
|
(ooo) |
“Transactions” means the transactions contemplated by this Agreement. |
|
(ppp) |
“Vendor” has the meaning given to such term in the preamble. |
|
(qqq) |
“Vendor Personnel” has the meaning given to such term in Section 11.9(a). |
|
(rrr) |
“Vendor Release” means the release contemplated by Section 11.12. |
|
(sss) |
“Vendor Services Amount” has the meaning given to such term in the recitals. |
|
(ttt) |
“Wholly-Owned Subsidiary” means a Subsidiary of GFL International, all of the outstanding securities of which are directly or indirectly owned by GFL International. |
LEGAL_1:50904367.3
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In this Agreement:
|
(a) |
Currency – Unless otherwise specified, all references to money amounts are to lawful currency of the United States. |
|
(b) |
Definitions – Capitalized words or phrases that are defined anywhere in this Agreement, or defined by cross-reference in this Agreement to another agreement or other document, shall have the meanings so assigned to them wherever they are used in this Agreement. |
|
(d) |
Headings – Headings of Articles and Sections are inserted for convenience of reference only and do not affect the construction or interpretation of this Agreement. |
|
(e) |
Including – Where the word “including” or “includes” is used in this Agreement, it means “including (or includes) without limitation”. |
|
(f) |
No Strict Construction – The language used in this Agreement is the language chosen by the Parties to express their mutual intent, and no rule of strict construction shall be applied against any Party. |
|
(g) |
Number and Gender – Unless the context otherwise requires, words importing the singular include the plural and vice versa and words importing gender include all genders. |
|
(h) |
Severability – If, in any jurisdiction, any provision of this Agreement or its application to any Party or circumstance is restricted, prohibited or unenforceable, such provision shall, as to such jurisdiction, be ineffective only to the extent of such restriction, prohibition or unenforceability without invalidating the remaining provisions of this Agreement and without affecting the validity or enforceability of such provision in any other jurisdiction or without affecting its application to other Parties or circumstances. |
LEGAL_1:50904367.3
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|
(i) |
Statutory references – A reference to a statute includes all regulations and rules made pursuant to such statute and, unless otherwise specified, the provisions of any statute, regulation or rule which amends, supplements or supersedes any such statute, regulation or rule. |
|
(j) |
Time – Time is of the essence in the performance of the Parties’ respective obligations. |
|
(k) |
Time Periods – Unless otherwise specified, time periods within or following which any payment is to be made or act is to be done shall be calculated by excluding the day on which the period commences and including the day on which the period ends and by extending the period to the next Business Day following if the last day of the period is not a Business Day. |
Any reference to the knowledge of any Party means to the best of the knowledge, information and belief of such Party after reviewing all relevant records and making due inquiries regarding the relevant matter of all relevant directors, officers and employees of such Party.
This Agreement and the agreements and other documents required to be delivered pursuant to this Agreement, constitute the entire agreement between the Parties and set out all the covenants, promises, warranties, representations, conditions and agreements between the Parties in connection with the subject matter of this Agreement and supersede all prior agreements, understandings, negotiations and discussions, whether oral or written, pre-contractual or otherwise. Other than the Shareholders Agreement (certain terms of which are superseded by this Agreement), there are no covenants, promises, warranties, representations, conditions, understandings or other agreements, whether oral or written, pre-contractual or otherwise, express, implied or collateral between the Parties in connection with the subject matter of this Agreement except as specifically set forth in this Agreement and any document required to be delivered pursuant to this Agreement.
|
(a) |
The schedules and exhibits to this Agreement, listed below, are an integral part of this Agreement: |
Schedule/Exhibit |
|
Description |
Schedule 3.3(a)(i) |
|
Notice pursuant Section 215 of ACL |
Schedule 3.3(a)(ii) |
|
Director and Syndic Resignation Letters |
Schedule 3.6(a) |
|
Minutes of the Board of Directors - Resignations |
Schedule 3.6(b) |
|
Minutes of the shareholders’ meeting of the Company |
Schedule 3.6(d) |
|
Minutes of the Board of Directors - Acknowledge receipt of Notice pursuant to Section 215 of the ACL |
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Schedule/Exhibit |
|
Description |
Schedule 11.1(a)(ii) |
|
Interim Period Activities |
Schedule 11.1(iii)(b) |
|
Approved Budget |
Schedule 11.10 |
|
Termination Agreement |
Schedule 11.11 |
|
LAC, 226 and Company Release |
Schedule 11.12 |
|
Vendor and SQM Parent Release |
Exhibit A |
|
Form of Deferred Payment Agreement |
Exhibit B |
|
Description of Services |
Exhibit C |
|
Form of Joint Release Instruction |
On the terms and conditions of this Agreement, at the Closing:
|
(a) |
the Vendor shall transfer to GFL or its Wholly-Owned Subsidiary, and GFL or its Wholly-Owned Subsidiary shall receive from the Vendor, the Purchased Shares; |
|
(b) |
GFL or a Wholly Owned Subsidiary and the Vendor shall enter into the Deferred Payment Agreement; |
|
(c) |
GFL shall fund or cause to be funded to the Company a sufficient amount to (i) repay to the Vendor the Company-Vendor Indebtedness and (ii) pay to SQM S.A. the Vendor Services Amount, each in accordance with the terms and conditions of this Agreement; |
|
(d) |
the Company shall, and LAC and GFL shall cause the Company to, repay to the Vendor the Company-Vendor Indebtedness; |
|
(e) |
the Company shall, and LAC and GFL shall cause the Company to, pay to SQM S.A. the Vendor Services Amount; and |
|
(f) |
the Vendor shall assign to GFL all its rights under the SQM Irrevocable Capital Contributions against payment of the SQM ICCs Assignment Consideration. |
The Parties will use commercially reasonable efforts to complete the consummation of the Transaction as soon as reasonably practicable. The Closing will take place at the offices of Osler, Hoskin & Harcourt LLP in Toronto, Ontario, at 10:00 a.m. (Toronto time) (the “Closing Time”) on the Closing Date. The Closing shall be deemed effective as of 12:00 a.m. on the Closing Date.
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Article 3
PURCHASE PRICE AND CLOSING DELIVERIES
The aggregate purchase price payable by GFL or a Wholly Owned Subsidiary to the Vendor for the Purchased Shares will be satisfied as follows:
|
(b) |
by payment of an amount in cash equal to the Deferred Payment Amount (being $50,000,000.00) upon satisfaction of the conditions specified in the Deferred Payment Agreement. |
|
(a) |
At the Closing, GFL or a Wholly Owned Subsidiary shall pay to the Vendor by wire transfer of immediately available funds to an account designated by the Vendor the Closing Payment. |
|
(c) |
Immediately upon receipt by the Company of the Company Funding Payment, the Company shall pay (and LAC and GFL shall cause the Company to pay) to the Vendor or its Affiliate, as the case may be, by wire transfer of immediately available funds to an account designated by the Vendor: |
|
(i) |
all outstanding amounts owing under the Company-Vendor Indebtedness (including any accrued and payable interest thereon); and |
|
(ii) |
the Vendor Services Amount, |
|
(d) |
At the Closing, GFL or a Wholly Owned Subsidiary shall pay to the Vendor by wire transfer of immediately available funds to an account designated by the Vendor the SQM ICCs Assignment Consideration; |
provided that the aggregate amount of the Closing Payment, the Company-Vendor Indebtedness (including any accrued and payable interest thereon), the Vendor Services Amount and the SQM ICCs Assignment Consideration shall not exceed $87,500,000.
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At the Closing, the Vendor shall deliver or cause to be delivered to GFL, LAC and, solely for the purpose of 3.3. (a), 3.3. (b) and 3.3. (g), to the Company:
|
(b) |
notice of the assignment to GFL or a Wholly Owned Subsidiary of all the rights of the Vendor under the SQM Irrevocable Capital Contributions, in the form attached hereto as Schedule 3.3(b); |
|
(c) |
the Deferred Payment Agreement executed by the Vendor; |
|
(d) |
a certificate from a senior officer of the Vendor addressed to GFL confirming the satisfaction of the conditions set forth in Sections 7.1(a), 7.2(a); |
|
(e) |
a certificate from a senior officer of the Vendor addressed to LAC confirming the satisfaction of the conditions set forth in Sections 8.1(a) and 8.2(a); |
|
(f) |
the Joint Release Instruction executed by the Vendor; |
|
(g) |
the invoice from SQM S.A. for the Vendor Services Amount in respect of the Company-Vendor Affiliate Services; and |
|
(h) |
all such other documentation or evidence as is necessary to establish the consummation of the Transactions and the taking of all required corporate proceedings by the Vendor in connection with the Transactions. |
At the Closing, in addition to the payments required by Section 3.2, GFL shall deliver or cause to be delivered to the Vendor and LAC, as the case may be:
|
(a) |
the Deferred Payment Agreement executed by GFL or a Wholly Owned Subsidiary; |
|
(b) |
a certificate from a senior officer of GFL addressed to the Vendor confirming the satisfaction of the conditions set forth in Sections 9.1(a) and 9.2(a); |
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|
(c) |
a certificate from a senior officer of GFL addressed to LAC confirming the satisfaction of the conditions set forth in Sections 8.1(b) and 8.2(b); and |
|
(d) |
all such other documentation or evidence as is necessary to establish the consummation of the Transactions and the taking of all required corporate proceedings by GFL in connection with the Transactions. |
At the Closing, LAC shall deliver or cause to be delivered to the Vendor and GFL:
|
(a) |
certified copies of the minutes of shareholders’ meetings and board of directors meetings of the Company referred to in Section 3.6; |
|
(b) |
a certificate from a senior officer of LAC addressed to GFL confirming the satisfaction of the conditions set forth in Sections 7.1(b) and 7.2(b); |
|
(c) |
a certificate from a senior officer of LAC addressed to the Vendor confirming the satisfaction of the conditions set forth in Sections 9.1(b) and 9.2(b); |
|
(d) |
the Joint Release Instruction executed by LAC; and |
|
(e) |
all such other documentation or evidence as is necessary to establish the consummation of the Transactions and the taking of all required corporate proceedings by LAC in connection with the Transactions. |
At the Closing:
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|
(c) |
if appointment of new directors and syndics is required by the Company bylaws, GFL and/or LAC shall deliver to the Vendor (i) letters of acceptance of the appointment of the directors and syndics appointed pursuant to the shareholders’ meetings provided in Section 3.6(b), executed by each director and syndics in form and substance to comply with the requirements of applicable law or (ii) a certified and duly legalized copy of the board of directors’ meeting minutes of the Company including the acceptance by directors and syndics of their appointment pursuant to the shareholders’ meetings provided in Section 3.6(b) in form and substance to comply with the requirements of applicable law; |
|
(e) |
the transfer of title to the Common Shares to GFL shall be recorded on the Stock Registry Book of the Company; and |
|
(f) |
LAC shall cause the Company to deliver to the Vendor a receipt acknowledging the receipt by the Company of the Books and Records listed in Appendix I.A(1), Appendix I.A(2) and Appendix I.A(3) of Exhibit B. |
Article 4
REPRESENTATIONS AND WARRANTIES OF THE VENDOR
The Vendor represents and warrants to GFL and LAC the matters set out below.
Each of the Vendor and SQM Parent is a corporation duly organized and validly existing under the laws of Chile.
|
(a) |
The Vendor is the sole registered and beneficial owner of the Purchased Shares free and clear of all Encumbrances, and the Purchased Shares are the only securities in the capital of, or issued by, the Company beneficially owned by the Vendor or over which it exercises control or direction. The Purchased Shares are held by the Vendor with good, valid and marketable title thereto, and the transfer to GFL or a Wholly Owned Subsidiary of the Purchased Shares will pass good and marketable title to the Purchased Shares, free and clear of all Encumbrances. The Vendor has the exclusive right to dispose of the Purchased Shares as provided in this Agreement and such disposition will not violate, contravene, breach or offend against or result in any default under any Contract, charter or by-law provision, Order, judgment, decree, licence, permit or Law, to which the Vendor or SQM Parent is a party or subject or by which the Vendor or SQM Parent is bound or affected. |
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|
(b) |
Other than the Shareholders Agreement, the Purchased Shares are not subject to any shareholders’ agreements, voting trust or similar agreements or any right or privilege (whether by Law, pre-emptive or contractual) capable of becoming a shareholders’ agreement, voting trust or other agreement affecting the Purchased Shares or any interest therein or right thereto, including, without limitation, the voting of any such shares, other than pursuant to this Agreement; and no person has any option or any right or privilege (whether by Law, pre-emptive or contractual) capable of becoming an agreement or option for the purchase of all or any portion of the Purchased Shares or of any interest therein. |
|
(c) |
The Vendor has not previously granted or agreed to grant any proxy or any other right to vote any of the Purchased Shares in respect of any meeting of security holders of the Company that is currently in force, and has not entered into a voting trust, vote pooling or other agreement with respect to his, her or its right to vote, call meetings of security holders of the Company or give consents or approvals of any kind as to the Purchased Shares. |
Each of the Vendor or SQM Parent has all necessary corporate power, authority and capacity to enter into this Agreement and the applicable Ancillary Agreements and to carry out its obligations under this Agreement and such Ancillary Agreements. The execution and delivery of this Agreement and the applicable Ancillary Agreements and the consummation of the Transactions and such Ancillary Agreements have been duly authorized by all necessary corporate action on the part of the Vendor or SQM Parent. This Agreement has been duly executed and delivered by the Vendor and SQM Parent and constitutes, and each Ancillary Agreement to be executed by the Vendor or SQM Parent in connection with the Closing will constitute, assuming the due authorization, execution and delivery by each of the other Parties, a valid and binding obligation of the Vendor or SQM Parent, as the case may be, enforceable against it in accordance with its terms, subject to the Bankruptcy and Equity Exception.
Neither of the Vendor nor SQM Parent is a party to, bound or affected by or subject to any:
|
(a) |
Contract; |
|
(b) |
charter or by-law; or |
|
(c) |
Laws or Governmental Authorizations; |
that (with or without notice or the passage of time or both) would be violated, breached by, or under which default would occur or an Encumbrance would be created, or in respect of which the obligations of the Vendor or SQM Parent will increase or the rights or entitlements of the Vendor or SQM Parent will decrease or any obligation on the part of the Vendor or SQM Parent to give notice to any Governmental Authority will arise, as a result of the execution and delivery of, or the performance of obligations under, this Agreement or any Ancillary Agreement, except as would not, individually or in the aggregate, adversely affect or reasonably be expected to prevent or significantly impede or materially delay the ability of the Vendor or SQM Parent to enter into this Agreement or any applicable Ancillary Agreement or the completion of any of the Transactions.
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No approval, Order, consent of, or filing with, any Governmental Authority is required on the part of the Vendor or SQM Parent in connection with the execution, delivery and performance of this Agreement or any applicable Ancillary Agreement or the performance of the obligations of the Vendor or SQM Parent under this Agreement or any such Ancillary Agreement, provided that this Section 4.5 shall not be construed as a representation or warranty by the Vendor in respect of Argentine Antitrust Laws.
There are no Claims or Proceedings, including appeals and applications for review, in progress or pending, or, to the knowledge of the Vendor, threatened against or affecting the Vendor or SQM Parent before any Governmental Authority, which, if determined adversely to the Vendor or SQM Parent, would,
|
(a) |
enjoin, restrict or prohibit the transfer of all or any part of the Purchased Shares as contemplated by this Agreement, or |
|
(b) |
delay, restrict or prevent the Vendor or SQM Parent from fulfilling any of their respective obligations set out in this Agreement or any Ancillary Agreement or arising therefrom, |
and the Vendor has no knowledge of any existing ground on which any such action, suit, litigation or proceeding might be commenced with any reasonable likelihood of success.
No broker, investment banker, financial advisor or other Person is entitled to any broker’s, finder’s or financial advisor’s fee or commission in connection with any of the Transactions based upon arrangements made by or on behalf of the Vendor or SQM Parent, other than any fees and expenses which are payable exclusively by the Vendor or SQM Parent (and, for certainty, not LAC, the Company or GFL).
The Company is a corporation duly organized and validly existing under the laws of Argentina. The Company has all requisite corporate power or other entity power and authority to carry on its business as presently conducted. The Company is duly qualified or licensed to do business and is in good standing (where such concept is recognized under applicable Law) in each jurisdiction where the nature of its business or the ownership, leasing or operation of its properties makes such qualification or licensing necessary.
The Company does not own, directly or indirectly, any capital stock of, or other equity interests in, any corporation, partnership, joint venture, association or other entity.
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The Company has all necessary corporate power, authority and capacity to enter into this Agreement and the applicable Ancillary Agreements and to carry out its obligations under this Agreement and such Ancillary Agreements. The execution and delivery of this Agreement and the applicable Ancillary Agreements and the consummation of the transactions contemplated by this Agreement and such Ancillary Agreements have been duly authorized by all necessary corporate action on the part of the Company. This Agreement has been duly executed and delivered by the Company and constitutes, and each Ancillary Agreement to be executed by the Company in connection with the Closing will constitute, assuming the due authorization, execution and delivery by each of the other Parties, a valid and binding obligation of the Company enforceable against it in accordance with its terms, subject to the Bankruptcy and Equity Exception.
Except for the representations and warranties contained in this Article 4, the Vendor and SQM Parent make no other express or implied representation or warranty on behalf of or with respect to the Vendor or the Company or with respect to the execution or delivery of this Agreement or the consummation of the Transactions contemplated hereby, and/or with respect to the current legal, economic and financial status of the Company or the assets, liabilities or businesses of the Company, including the Cauchari-Olaroz Project. The Vendor and SQM Parent hereby disclaim any such representation or warranty, whether by the Vendor, SQM Parent, or any of their respective Affiliates, officers, directors, employees, agents or representatives or any other person, notwithstanding the delivery or disclosure to GFL, LAC or any of their respective Affiliates, officers, directors, employees, agents or representatives or any other person of any documentation or other information by the Vendor, SQM Parent or any of their respective Affiliates, officers, directors, employees, agents or representatives or any other person with respect to any one or more of the foregoing.
Article 5
REPRESENTATIONS AND WARRANTIES OF GFL
GFL represents and warrants to the Vendor and LAC the matters set out below.
GFL is a corporation existing under the laws of Hong Kong.
GFL has all necessary corporate power, authority and capacity to enter into this Agreement and to carry out its obligations under this Agreement. The execution and delivery of this Agreement and the consummation of the Transactions have been duly authorized by all necessary corporate action on the part of GFL. This Agreement has been duly executed and delivered by GFL and constitutes, assuming the due authorization, execution and delivery by each of the other Parties, a valid and binding obligation of GFL enforceable against it in accordance with its terms, subject to the Bankruptcy and Equity Exception.
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GFL is not a party to, bound or affected by or subject to any:
|
(a) |
Contract; |
|
(b) |
memorandum and articles of association, charter or by-law; or |
|
(c) |
Laws or Governmental Authorizations; |
that (with or without notice or the passage of time or both) would be violated, breached by, or under which default would occur or an Encumbrance would be created, or in respect of which the obligations of GFL will increase or the rights or entitlements of GFL will decrease or any obligation on the part of GFL to give notice to any Governmental Authority will arise, as a result of the execution and delivery of, or the performance of obligations under, this Agreement, except as would not, individually or in the aggregate, adversely affect or reasonably be expected to prevent or significantly impede or materially delay the ability of GFL to enter into this Agreement or the completion of any of the Transactions.
|
(a) |
Except for overseas investment project filings with the National Development and Reform Commission of the People’s Republic of China and with the Ministry of Commerce of the People’s Republic of China (which filings do not require approval of such authorities, and which filings will be made by no later than September 30, 2018), no approval, Order, consent of, or filing with, any Governmental Authority is required on the part of GFL in connection with the execution, delivery and performance of this Agreement or any applicable Ancillary Agreement or the performance of the obligations of GFL under this Agreement or any such Ancillary Agreement. |
|
(b) |
With LAC and the Vendor’s consent, GFL has had access to the combined volume of business of GFL’s and Ganfeng Parent’s group and of the Company (based on information regarding revenues of the Company for the most recent fiscal year provided to GFL and Ganfeng Parent) and during the most recent fiscal year such combined volume of business in Argentina does not exceed the merger control threshold under the Argentine Antitrust Laws of Argentine Pesos 2.000.000.000, and therefore the merger control threshold under the Argentine Antitrust Laws necessary for a notification in Argentina is not met. |
There are no Claims or Proceedings, including appeals and applications for review, in progress or pending, or, to the knowledge of GFL, threatened against or affecting GFL or Ganfeng Parent before any Governmental Authority, which, if determined adversely to GFL or Ganfeng Parent, would,
|
(a) |
enjoin, restrict or prohibit the transfer of all or any part of the Purchased Shares as contemplated by this Agreement, or |
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|
(b) |
delay, restrict or prevent GFL or Ganfeng Parent from fulfilling any of its obligations set out in this Agreement or arising therefrom, and GFL has no knowledge of any existing ground on which any such action, suit, litigation or proceeding might be commenced with any reasonable likelihood of success. |
No broker, investment banker, financial advisor or other Person is entitled to any broker’s, finder’s or financial advisor’s fee or commission in connection with any of the Transactions based upon arrangements made by or on behalf of GFL or Ganfeng Parent, other than any fees and expenses which are payable exclusively by GFL or Ganfeng Parent (and, for certainty, not the Vendor, LAC or the Company).
Except for the representations and warranties contained in this Article 4, GFL makes no other express or implied representation or warranty on behalf of or with respect to GFL or with respect to the execution or delivery of this Agreement or the consummation of the Transactions contemplated hereby. GFL hereby disclaims any such representation or warranty, whether by GFL or any of its Affiliates, officers, directors, employees, agents or representatives or any other person, notwithstanding the delivery or disclosure to the Vendor, LAC or any of their respective Affiliates, officers, directors, employees, agents or representatives or any other person of any documentation or other information by GFL or any of its Affiliates, officers, directors, employees, agents or representatives or any other person with respect to any one or more of the foregoing.
GFL has conducted its own independent investigation, review and analysis of the business, operations, assets, liabilities, prospects, results of operations and financial condition of the Company. In entering into this Agreement, GFL acknowledges that it has not relied upon any representations or opinions of the Vendor or LAC other than the representations and warranties of the Vendor or LAC expressly set forth in this Agreement and that it assumes all past and future risks in respect of and responsibility for its investigation of the Company and has taken such investigation into account in entering into this Agreement and completing the transactions contemplated by this Agreement.
Article 6
REPRESENTATIONS AND WARRANTIES OF LAC
LAC represents and warrants to the Vendor and GFL the matters set out below:
LAC is a corporation duly organized and validly existing under the laws of British Columbia, Canada.
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LAC has all necessary corporate power, authority and capacity to enter into this Agreement and the applicable Ancillary Agreements and to carry out its obligations under this Agreement and such Ancillary Agreements. The execution and delivery of this Agreement and the applicable Ancillary Agreements and the consummation of the Transactions and such Ancillary Agreements have been duly authorized by all necessary corporate action on the part of LAC. This Agreement has been duly executed and delivered by LAC and constitutes, and each Ancillary Agreement to be executed by LAC in connection with the Closing will constitute, assuming the due authorization, execution and delivery by each of the other Parties, a valid and binding obligation of LAC enforceable against it in accordance with its terms, subject to the Bankruptcy and Equity Exception.
LAC is not a party to, bound or affected by or subject to any:
|
(a) |
Contract; |
|
(b) |
charter or by-law; or |
|
(c) |
Laws or Governmental Authorizations; |
that (with or without notice or the passage of time or both) would be violated, breached by, or under which default would occur or an Encumbrance would be created, or in respect of which the obligations of LAC will increase or the rights or entitlements of LAC will decrease or any obligation on the part of LAC to give notice to any Governmental Authority will arise, as a result of the execution and delivery of, or the performance of obligations under, this Agreement or any Ancillary Agreement, except as would not, individually or in the aggregate, adversely affect or reasonably be expected to prevent or significantly impede or materially delay the ability of LAC to enter into this Agreement or any applicable Ancillary Agreement or the completion of any of the Transactions.
No approval, Order, consent of, or filing with, any Governmental Authority is required on the part of LAC in connection with the execution, delivery and performance of this Agreement or any applicable Ancillary Agreement or the performance of LAC’s obligations under this Agreement or any such Ancillary Agreement.
The entry by LAC into this Agreement and the consummation of the Transactions is not subject to, or is exempt from, the requirement to obtain minority shareholder approval under MI 61-101.
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There are no Claims or Proceedings, including appeals and applications for review, in progress or pending, or, to the knowledge of LAC, threatened against or affecting LAC before any Governmental Authority, which, if determined adversely to LAC, would,
|
(a) |
enjoin, restrict or prohibit the transfer of all or any part of the Purchased Shares as contemplated by this Agreement, or |
|
(b) |
delay, restrict or prevent LAC from fulfilling any of its obligations set out in this Agreement or any Ancillary Agreement or arising therefrom, |
and LAC has no knowledge of any existing ground on which any such action, suit, litigation or proceeding might be commenced with any reasonable likelihood of success.
No broker, investment banker, financial advisor or other Person is entitled to any broker’s, finder’s or financial advisor’s fee or commission in connection with any of the Transactions based upon arrangements made by or on behalf of LAC, other than fees and expenses which are payable exclusively by LAC (and, for certainty, not the Vendor or GFL).
The Company is a corporation duly organized and validly existing under the laws of Argentina. The Company has all requisite corporate power or other entity power and authority to carry on its business as presently conducted. The Company is duly qualified or licensed to do business and is in good standing (where such concept is recognized under applicable Law) in each jurisdiction where the nature of its business or the ownership, leasing or operation of its properties makes such qualification or licensing necessary.
The Company does not own, directly or indirectly, any capital stock of, or other equity interests in, any corporation, partnership, joint venture, association or other entity.
The Company has all necessary corporate power, authority and capacity to enter into this Agreement and the applicable Ancillary Agreements and to carry out its obligations under this Agreement and such Ancillary Agreements. The execution and delivery of this Agreement and the applicable Ancillary Agreements and the consummation of the transactions contemplated by this Agreement and such Ancillary Agreements have been duly authorized by all necessary corporate action on the part of the Company. This Agreement has been duly executed and delivered by the Company and constitutes, and each Ancillary Agreement to be executed by the Company in connection with the Closing will constitute, assuming the due authorization, execution and delivery by each of the other Parties, a valid and binding obligation of the Company enforceable against it in accordance with its terms, subject to the Bankruptcy and Equity Exception.
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Except for the representations and warranties contained in this Article 6, LAC makes no other express or implied representation or warranty on behalf of or with respect to LAC or the Company or with respect to the execution or delivery of this Agreement or the consummation of the Transactions contemplated hereby, and/or with respect to the current legal, economic and financial status of the Company or the assets, liabilities or businesses of the Company, including the Cauchari-Olaroz Project. LAC hereby disclaims any such representation or warranty, whether by LAC or any of its Affiliates, officers, directors, employees, agents or representatives or any other person, notwithstanding the delivery or disclosure to the Vendor, GFL or any of their respective Affiliates, officers, directors, employees, agents or representatives or any other person of any documentation or other information by LAC or any of its Affiliates, officers, directors, employees, agents or representatives or any other person with respect to any one or more of the foregoing.
Article 7
Conditions in Favour of GFL
The obligations of GFL to complete the Transactions is subject to the satisfaction of or compliance with, at or before the Closing Time, each of the following conditions precedent (each of which is acknowledged to be inserted for the exclusive benefit of GFL and may be waived by them in whole or in part).
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There shall not be in effect on the Closing Date any Order or Law restraining, enjoining or otherwise prohibiting or making illegal, and there shall be no pending or threatened Claim of a Governmental Authority which if successful would reasonably be expected to restrain, enjoin or otherwise prohibit, the consummation of the Transactions.
All necessary governmental or regulatory approvals and consents in respect of the Transactions shall have been obtained by the Vendor and LAC on terms satisfactory to GFL, acting reasonably, and any applicable governmental or regulatory waiting period shall have expired or been terminated.
Article 8
CONDITIONS IN FAVOUR OF LAC
The obligation of LAC to complete the Transactions is subject to the satisfaction of, or compliance with, at or before the Closing Time, each of the following conditions precedent (each of which is acknowledged to be inserted for the exclusive benefit of LAC and may be waived by LAC in whole or in part).
LEGAL_1:50904367.3
- 25 -
|
which representations and warranties shall have been true and correct as of such date) and with the same effect as if made at and as of the Closing Time (except as such representations and warranties may be affected by the occurrence of events or transactions expressly contemplated and permitted by this Agreement) and LAC shall have received a certificate from a senior officer of GFL confirming the foregoing on behalf of GFL. |
There shall not be in effect on the Closing Date any Order or Law restraining, enjoining or otherwise prohibiting or making illegal, and there shall be no pending or threatened Claim of a Governmental Authority which if successful would reasonably be expected to restrain, enjoin or otherwise prohibit, the consummation of the Transactions.
All necessary governmental or regulatory approvals and consents in respect of the Transactions shall have been obtained by the Vendor and GFL on terms satisfactory to LAC, acting reasonably, and any applicable governmental or regulatory waiting period shall have expired or been terminated.
Article 9
Conditions in Favour of the VENDOR
The obligations of the Vendor to complete the Transactions is subject to the satisfaction of or compliance with, at or before the Closing Time, each of the following conditions precedent (each of which is acknowledged to be inserted for the exclusive benefit of the Vendor and may be waived by it in whole or in part).
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|
or transactions expressly contemplated and permitted by this Agreement) and the Vendor shall have received a certificate from a senior officer of GFL confirming the foregoing on behalf of GFL. |
There shall not be in effect on the Closing Date any Order or Law restraining, enjoining or otherwise prohibiting or making illegal, and there shall be no pending or threatened Claim of a Governmental Authority which if successful would reasonably be expected to restrain, enjoin or otherwise prohibit, the consummation of the Transactions.
All necessary governmental or regulatory approvals and consents in respect of the Transactions required to be obtained by LAC and GFL shall have been obtained on terms satisfactory to the Vendor, acting reasonably, and any applicable governmental or regulatory waiting period shall have expired or been terminated.
This Agreement may be terminated on or prior to the Closing Date:
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- 27 -
|
(b) |
by GFL, if either the Vendor or LAC breaches any of their respective representations, warranties or covenants contained in this Agreement such that the conditions set forth in Section 7.1 or Section 7.2 are incapable of being satisfied on or before the Outside Date, provided that GFL is not then in breach of this Agreement; |
|
(c) |
by the Vendor, if either GFL or LAC breaches any of their respective representations, warranties or covenants contained in this Agreement such that the conditions set forth in Section 9.1 and Section 9.2 are incapable of being satisfied on or before the Outside Date, provided that the Vendor is not then in breach of this Agreement; |
|
(f) |
by GFL, LAC or the Vendor if, after the date of this Agreement, there shall be enacted or made applicable any Law or Order that prohibits or makes illegal the consummation of the Transactions, and in the case of an Order, such Order shall have become final and non-appealable, |
in each case, with immediate effect upon delivery of written notice of termination or upon entering into a mutual agreement, as the case may be.
If this Agreement is terminated under Section 10.1,
|
(a) |
all further rights and obligations of the Parties under this Agreement shall terminate immediately (except in respect of any breach arising prior to such termination), except that the provisions of Article 1 [Interpretation], this Article 10 [Termination], Section 11.4 [Confidentiality] and Article 13 [General] shall survive such termination and continue in full force and effect; |
|
(b) |
any Party required to indemnify another Party pursuant to Section 13.4(b) shall promptly make such indemnification payment; |
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|
(c) |
[redacted – commercially sensitive information relating to capital adjustments following a termination]; |
|
(d) |
[redacted – commercially sensitive information relating to capital adjustments following a termination]. |
The termination of this Agreement by any Party prior to the Closing Date for any reason shall not affect, impact, impair, or otherwise prejudice the rights and obligations of the parties to the Shareholders Agreement and Ancillary Shareholder Agreements, which shall remain in full force and effect and binding on all parties thereto, unless and until such agreements are terminated in accordance with their respective terms.
|
(a) |
During the period from the date of this Agreement to the Closing Time or such other date specified on Schedule 11.1(a)(ii): |
|
(i) |
LAC and the Vendor shall, other than as expressly contemplated by this Agreement, cause the Company to conduct its business in the Ordinary Course; |
|
(iii) |
LAC and the Vendor each hereby agrees and consents that the Company is authorized to and may perform each of the matters set forth on Schedule 11.1(a)(ii) notwithstanding any provisions of the Shareholders Agreement that would otherwise require that different or additional consents or authorizations be obtained or given by LAC, the Vendor or the Company, and, if required, each of LAC and the Vendor shall direct their respective nominees on the board of directors of the Company to vote in favour of such matters at any board meetings called to consider such matters and shall vote in favour of such matters at any shareholder meetings called to consider such matters. |
|
(b) |
[redacted –commercially sensitive information relating to interim period funding and expenditures]. |
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|
(d) |
In performing its obligations in respect of the matters set forth on Schedule 11.1(a)(ii), the Vendor shall (i) provide the same level of service and use the same degree of diligence and care as it provided and used in performing activities of the same kind or nature as such activities for the Company prior to the date of this Agreement with respect to such matters. |
|
(f) |
LAC and the Vendor agree to use commercially reasonable efforts to cause the following to occur: |
|
(i) |
Immediately following the date of this Agreement, the Company shall offer to the Support Staff to enter into temporary employment agreements for the period until December 31, 2018 on terms and conditions substantially the same as those applicable to the employment of such persons by SQM Parent (including, for purposes of this section, any of its Affiliates). Simultaneously with the Support Staff’s acceptance of the Company’s temporary employment offer, SQM Parent will suspend the employment of the Support Staff (“Support Staff Temporary Employment”); |
|
(ii) |
During the Support Staff Temporary Employment at the Company: |
|
(A) |
SQM Parent shall pay all social security contributions in Chile; |
|
(B) |
The Company shall: (1) pay to the Support Staff an amount that reflects the same “take-home” pay (“sueldo líquido”) they would have received in Chile had they continued to be SQM Parent´s employees (including all the bonuses that they would have received had they continued to be SQM Parent´s employees), in all cases in Chilean pesos (“Support Staff Compensation”); (2) transfer the Support Staff Compensation to the Support Staff´s Chilean bank accounts in Chilean pesos not later than the last relevant payment day according to applicable law; (3) assume the cost of the taxes applicable on the Support Staff Compensation both in Argentine and in Chile by grossing up over such Support Staff Compensation; (4) pay and assume the cost of all social security contributions in Argentina; (5) take care of all administrative procedures and paperwork needed so that Support Staff is temporarily employed by the Company; (6) assume all transportation and lodging costs of the Support Staff. |
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|
(iii) |
The Company will have the right to offer to the Support Staff a long term employment contract. In case that the employees accept the Company’s employment offer, SQM Parent shall accept their resignations of employment. In the event that the employees reject the employment offer, SQM Parent shall relocate them to the operations of SQM Parent or its Affiliates effective no earlier than the Closing Date. |
|
(a) |
LAC and the Vendor hereby consent to the execution of this Agreement by the Company and the performance of its obligations under this Agreement and all transactions contemplated by this Agreement and this approval shall be sufficient for purposes of the Shareholders Agreement. |
|
(b) |
LAC, the Vendor and the Company acknowledge that Vendor consent shall not be necessary during the term of the Agreement for any Company approval matrix, and Vendor related individuals shall not be delegated Company Powers of Attorney, representation capacity or otherwise be required to authorize Company actions during the term of the Agreement. |
Prior to the Closing, each Party shall promptly notify the other Parties of:
|
(a) |
any notice or other communication from (i) any Governmental Authority in connection with this Agreement or the Transactions, or (ii) any Person (x) alleging that the consent of such Person is or may be required in connection with the Transactions, or (y) threatening (in writing), requesting (in writing) or delivering an Order restraining or enjoining the consummation of the Transactions; and |
|
(b) |
the occurrence of any event that would reasonably be expected to result in the failure of one or more of the conditions to Closing set out in Article 8 or Article 9 to be met by the Closing Date and/or the Outside Date. |
|
(a) |
LAC and the Vendor acknowledge that the Shareholders Agreement, including the provisions thereof relating to the treatment of “Confidential Information” and “Trade Secrets” (as defined therein) as it relates to the Company and the Cauchari-Olaroz Project, remains in full force and effect pursuant to the terms thereof and that, notwithstanding the termination of the Shareholders Agreement pursuant to the terms of the Termination Agreement, Sections 4.05 and 4.06 of the Shareholders Agreement shall survive such termination. |
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|
(b) |
From and after the Closing, GFL shall, and shall cause each of its Affiliates and each of its and their respective Representatives to, keep confidential all information relating to the Vendor, LAC or the Company (including all information constituting “Confidential Information” and “Trade Secrets” as such terms are defined in the Shareholders Agreement), other than information which: |
|
(i) |
is part of the public domain; |
|
(ii) |
becomes part of the public domain other than as a result of a breach of these provisions by GFL; |
|
(iii) |
was received in good faith after Closing from an Independent Person who was lawfully in possession of such information free of any obligation of confidentiality; or |
|
(iv) |
GFL or any of its Affiliates is required to disclose pursuant to applicable Laws or stock exchange rules. |
During the period from the date hereof until the earlier of the Closing Time and the time that this Agreement is terminated in accordance with its terms, and subject to the terms and conditions of this Agreement:
|
(a) |
each of the Parties shall use commercially reasonable efforts to take or cause to be taken all actions and to do or cause to be done all things necessary under the terms of this Agreement or under applicable Laws to cause the satisfaction of the conditions set forth in Article 7, Article 8 and Article 9 and to consummate the Transactions and the Parties shall reasonably cooperate with each other with respect to each of the foregoing; and |
|
(b) |
each of the Parties shall not take any action, shall refrain from taking any action, and shall not permit any action to be taken or not taken, which is inconsistent with this Agreement or which would reasonably be expected to, individually or in the aggregate, materially impede or materially delay the consummation of the Transactions. |
The Vendor, LAC and GFL shall mutually agree on the disclosure with respect to the consensual termination of the joint ownership of the Company to appear in the initial press release to be issued by each of them as soon as practicable after execution and delivery of this Agreement. After the issuance of such initial press release, each of the Parties shall be permitted to issue any further press releases or otherwise make any public statements with respect to this Agreement or the Transactions without the consent of the other Parties. For the avoidance of doubt, the Parties shall not be precluded from making internal communications and announcements to employees and having discussions with shareholders and financial analysts and other stakeholders concerning the subject matter of this Agreement.
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During the period from the date hereof until the earlier of the Closing Time and the time that this Agreement is terminated in accordance with its terms, and subject to the terms and conditions of this Agreement:
|
(a) |
The Parties shall not, and shall not authorize or permit any of their Affiliates or any of their Representatives to, directly or indirectly, (i) encourage, solicit, initiate, facilitate or continue inquiries regarding a transaction involving the disposition of the Purchased Shares other than as contemplated by this Agreement; (ii) enter into discussions or negotiations with, or provide any information to, any third party concerning the subject matter of this Agreement other than as contemplated by this Agreement; or (iii) enter into any agreements or other instruments (whether or not binding) regarding the subject matter of this Agreement. |
|
(b) |
The Vendor shall immediately cease and cause to be terminated, and shall cause its Affiliates and all of its and their Representatives to immediately cease and cause to be terminated, all existing discussions or negotiations with any Persons conducted heretofore with respect to the subject matter of this Agreement other than LAC, the Company and GFL; provided, however that the foregoing shall not prohibit the Vendor or any of its Affiliates or Representatives from informing third parties of the existence of the provisions contained in this Section 11.7 on a no-names basis. |
|
(c) |
The Vendor shall not grant an option on, sell, transfer, pledge, hypothecate, grant any security interest in or Encumbrance on or otherwise convey or enter into any forward sale, repurchase agreement or other monetization transaction with respect to any of the Purchased Shares, or any right or interest therein (legal or equitable), to any person or group or agree to do any of the foregoing, except pursuant to the Transactions and this Agreement. |
|
(d) |
The Vendor shall not take any other action of any kind, directly or indirectly, which might reasonably be regarded, individually or in the aggregate, as likely to materially reduce the success of, or delay or interfere with, the completion of any of the Transactions. |
|
(e) |
In addition to the other obligations under this Section 11.7 the Vendor shall promptly (and in any event within one Business Day after receipt thereof) advise LAC and GFL in writing of any proposal received by the Vendor, the Company, any of their respective Affiliates, or any of their or their Affiliates’ respective Representatives relating to the subject matter of this Agreement. |
|
(f) |
The Vendor shall not do indirectly that which it may not do directly in respect of the restrictions set forth in this Section 11.7. |
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The Vendor’s obligations under this Section 11.8 in respect of LAC’s securities shall terminate immediately upon: (i) the public announcement by LAC of board approval and the execution of a definitive agreement that would result in the acquisition of a majority of the voting securities of LAC or all or substantially all of the assets of LAC, by one or more persons, or that would result in a transaction in which existing shareholders of LAC would hold less than 50% of the outstanding shares of the combined entity, with a person, in each case other than the Vendor; or (ii) the commencement of a formal take-over bid by a third party for all or a majority of the outstanding voting securities of LAC (any such event, a “Spring Event”). Upon the earlier of: (a) the occurrence of a Spring Event; or (b) the expiry of the Standstill Period, the restrictions set forth in this Section 11.8 in respect of the Vendor’s obligations shall terminate forthwith.
LEGAL_1:50904367.3
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|
the “Vendor Personnel”) for consultations once every two months (for an aggregate amount of time equal to eight hours for each alternating month (per Vendor Personnel)) with the Company and its shareholders , at the request and invitation of the Company, for the purpose of having technical discussions about the Cauchari-Olaroz Project relating to topics including geology, hydrogeology, and engineering, construction and other aspects of project execution (“Technical Discussions”): |
|
(i) |
[redacted – personal information] (provided he is then employed by SQM or its Affiliate) and two other representatives from the Vendor’s hydrogeology team, and |
|
(ii) |
[redacted – personal information] (provided he is then employed by SQM or its Affiliate) and two other representatives from the Vendor’s projects team. |
In connection with Technical Discussions, the Company shall prepare the meeting agenda and specific questions to be discussed.
|
(b) |
For a period of six months following the Closing Date, the Vendor shall cause each of the Vendor Personnel to be available to the Company, upon reasonable notice and without requiring payment of any consideration in exchange therefor, by phone during regular business hours, or for in-person consultations in Santiago, for an aggregate amount of time equal to eight hours per month (per Vendor Personnel), to participate in Technical Discussions. |
|
(c) |
The Company shall pay or reimburse the Vendor for any reasonable and documented out-of-pocket costs incurred by the Vendor or the Vendor Personnel in connection with the participation by the Vendor Personnel in Technical Discussions as contemplated by this Section 11.9, provided that, for certainty, the Vendor shall not receive payment or any other form of compensation for the time of its staff in connection with such Technical Discussions. |
|
(d) |
Neither the Company, LAC, GFL nor any of their respective Affiliates shall directly or indirectly hire any Vendor Personnel during the two year period following the Closing Date. |
|
(e) |
None of the Vendor, its Affiliates or its Representatives nor the Vendor Personnel shall in any event be liable to LAC, GFL, the Company or their respective Affiliates or Representatives for any statement, omission, action or inaction of the Vendor or its Representatives or the Vendor Personnel in connection with the assistance contemplated in this Section 11.9 regardless of the type of damages, form of action or theory of liability, and LAC and GFL hereby release and hold harmless the Vendor, its Affiliates, Representatives and Vendor Personnel for any statements, omissions, actions or inactions, other than those arising from fraud or wilful misconduct. |
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Effective as of the Closing, the Vendor, SQM Parent, LAC, 226 and the Company agree that the matters contemplated by Schedule 11.10 shall automatically become effective without any further action on the part of any such Parties. For certainty, prior to the Closing, the matters contemplated by Schedule 11.10 shall be of no force or effect.
Effective as of the Closing, LAC, 226 and the Company agree that the release contemplated by Schedule 11.11 shall automatically become effective without any further action on the part of LAC, 226 or the Company. For certainty, prior to the Closing, the release contemplated by Schedule 11.10 shall be of no force or effect.
Effective as of the Closing, the Vendor and SQM Parent agree that the release contemplated by Schedule 11.12 shall automatically become effective without any further action on the part of either the Vendor or SQM Parent. For certainty, prior to the Closing, the matters contemplated by Schedule 11.12 shall be of no force or effect.
All representations and warranties, and the covenants that by their terms are applicable following the Closing, contained in or made pursuant to this Agreement on the part of each of the Parties shall survive and shall not merge following any or all of the following:
|
(a) |
the Closing; |
|
(c) |
the completion of any or all of the Transactions. |
The Vendor shall indemnify and save harmless LAC and GFL from and against all Losses, whether or not arising due to third party Claims, which LAC or GFL may suffer or incur, directly or indirectly, as a result of or in connection with or arising from:
|
(a) |
any non-fulfilment or breach of any covenant or agreement on the part of the Vendor or SQM Parent contained in or made pursuant to this Agreement; and |
LEGAL_1:50904367.3
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|
(b) |
any misrepresentation or any incorrectness in or breach of any representation or warranty of the Vendor or SQM Parent contained in or made pursuant to this Agreement. |
LAC shall indemnify and save harmless the Vendor and GFL from and against all Losses, whether or not arising due to third party Claims, which the Vendor or GFL may suffer or incur, directly or indirectly, as a result of or in connection with or arising from:
|
(a) |
any non-fulfilment or breach of any covenant or agreement on the part of LAC contained in or made pursuant to this Agreement; and |
|
(b) |
any misrepresentation or any incorrectness in or breach of any representation or warranty of LAC contained in or made pursuant to this Agreement. |
GFL shall indemnify and save harmless the Vendor and LAC from and against all Losses, whether or not arising due to third party Claims, which the Vendor or LAC may suffer or incur, directly or indirectly, as a result of or in connection with or arising from:
|
(a) |
any non-fulfilment or breach of any covenant or agreement on the part of GFL contained in or made pursuant to this Agreement; and |
|
(b) |
any misrepresentation or any incorrectness in or breach of any representation or warranty of GFL contained in or made pursuant to this Agreement. |
From and after Closing, and subject to Section 11.1(e), and Section 11.9(c), and Section 13.2, the rights of indemnity set forth in this Article 12 are the sole and exclusive remedy of each Party in respect of any misrepresentation, incorrectness in or breach of any representation or warranty, or breach of covenant, by the other Party under this Agreement. Accordingly, the Parties waive, from and after the Closing, any and all rights, remedies and claims that one Party may have against the other or their respective Affiliates or Representatives, whether at law, under any statute or in equity, or otherwise, directly or indirectly, relating to the provisions of this Agreement or the Transactions other than as expressly provided for in this Article 12, other than those arising with respect to any fraud or wilful misconduct and other than those provided for in other agreements or certificates delivered pursuant to this Agreement. The Parties agree that if any Claim for indemnification is made by one Party in accordance with Section 12.2 or Section 12.3 as the case may be, and there has been a refusal by the other Party to make payment or otherwise provide satisfaction in respect of such Losses, then a legal proceeding is the appropriate means to seek a remedy for such refusal. This Article 12 shall remain in full force and effect in all circumstances and shall not be terminated by any breach (fundamental, negligent or otherwise) by any Party of its representations, warranties or covenants under this Agreement or under any Closing document or by any termination or rescission of this Agreement by any Party.
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No waiver of any condition or other provisions, in whole or in part, shall constitute a waiver of any other condition or provision (whether or not similar) nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.
Notwithstanding Section 12.5, the Parties agree that irreparable damage for which monetary damages, even if available, would not be an adequate remedy, would occur in the event that the Parties do not perform their obligations under the provisions of this Agreement (including failing
to take such actions as are required of them hereunder to consummate this Agreement) in accordance with its specified terms or otherwise breach such provisions. The Parties acknowledge and agree (and further agree not to take any contrary position in any litigation concerning this Agreement) that (a) the Parties shall be entitled to an injunction or injunctions, specific performance, or other equitable relief, to prevent breaches or threatened breaches of this Agreement and to enforce specifically the terms and provisions hereof in the courts of the Province of Ontario without proof of damages or otherwise, and that such relief may be sought in addition to and shall not limit, diminish, or otherwise impair, any other remedy to which they are entitled under this Agreement, at law, in equity or otherwise, (b) the provisions set forth in Article 12 are not intended to and do not adequately compensate for the harm that would result from a breach of this Agreement and shall not be construed to limit, diminish or otherwise impair in any respect any Party’s right to specific enforcement, and (c) the right of specific enforcement is an integral part of the Transactions and without that right, the Parties would not have entered into this Agreement. Each of the Parties agrees that it will not oppose the granting of an injunction, specific performance and other equitable relief on the basis that (A) the other Parties have an adequate remedy at law or (B) an award of specific performance is not an appropriate remedy for any reason at law or equity. The Parties acknowledge and agree that any Party seeking an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement shall not be required to provide any bond or other security in connection with any such order or injunction.
|
(a) |
Except as otherwise provided in this Agreement, each Party shall pay all costs and expenses (including the fees and disbursements of legal counsel and other advisers) it incurs in connection with the negotiation, preparation and execution of this Agreement and the Transactions. For the avoidance of doubt, none of such expenses will be for the account of the Company. |
|
(b) |
Except as otherwise provided in this Agreement, each Party shall be responsible for its own Taxes incurred in connection with the Transactions contemplated hereunder. Any applicable withholding for the account of Taxes in accordance to any Laws, which the Parties estimate are only the following: (i) payment of interest that has been accrued in connection with Company-Vendor Indebtedness, |
LEGAL_1:50904367.3
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|
which will be subject to 15% income tax withholding according to the provisions of Section 11, Subsection 2(c) of the Double Tax Treaty executed between Argentina and Chile, and (ii) the payment of the Vendor Services Amount that will be subject to income tax withholding according to Argentine income tax Laws, shall be performed by the withholder in accordance to such Laws (and for certainty, reduce the payments to the Vendor for the Company-Vendor Indebtedness and Vendor Service Amount specified in this Agreement to the extent required by such Laws) and within 15 Business Days of the withholding, the withholding Party shall provide to the Vendor the withholding certificate for any withholding made. |
|
(a) |
The stamp Tax applicable to the transfer of Common Shares pursuant to this Transaction Agreement (applicable on the Closing Payment and Deferred Payment Amount), shall be borne by the Vendor and GFL in equal shares. At the Company’s request after the Execution Date, each of the Vendor and GFL will transfer, within five Business Days of such request, the funds according with their share so that the Company is able to make the payment of the stamp tax to the relevant tax authorities when due. The Company shall pay the stamp tax within five Business Days of the receipt of the funds from the Vendor and GFL, and shall provide the Vendor and GFL a copy of evidence of the payment made. If either the Vendor or GFL transfer the funds for the payment when requested and the other Party does not, so that the Company is unable to pay the stamp tax on the due date, any economic consequence for the lack of payment of the stamp tax when due (including but not limited to interest, charges and fines) shall be borne by the non-compliant Party. |
LAC hereby consents under the Shareholders Agreement to the transfer of the Purchased Shares on the terms and conditions set forth in this Agreement.
Upon request, during the term of this Agreement and for a period of three (3) years following the expiration or termination of this Agreement, the Vendor shall have the right to audit and examine the books and financial records of the Company to test compliance with anticorruption obligations of the Company and Company’s shareholders for the period from March 28, 2016 through the Closing Date (the “Anticorruption Obligations”). The Company will use commercially reasonable efforts to provide such information and assistance reasonably required by the Vendor in connection with such an audit, including, during business hours and subject to reasonable advance notice, access to the Company’s principals, directors and key personnel working for or on behalf of the Company. Such audit may be conducted by employees of the
LEGAL_1:50904367.3
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Vendor, or by an independent audit or other professional firm. Costs of each review or audit shall be borne exclusively by the Vendor. The Company shall cooperate with the Vendor regarding any inquiry of the Vendor with respect to Anticorruption Obligations, which shall include disclosure of relevant documents and financial information, and interviews of the Company’s principals, directors, and key personnel. Such obligation shall continue after the expiration or termination of this Agreement until the third anniversary following the expiration or termination of this Agreement. Except with respect to information the Vendor may need to report or provide under any Anticorruption Obligations, the obligations of confidentiality under the Shareholders Agreement shall apply to the information obtained pursuant to this Section 13.6. The Vendor will use commercially reasonable efforts to ensure any information shared under the Anticorruption Obligations is afforded confidential treatment.
Any notice, consent or approval required or permitted to be given in connection with this Agreement (in this Section referred to as a “Notice”) shall be in writing and shall be sufficiently given if delivered (whether in person, by courier service or other personal method of delivery), or if transmitted by e-mail:
|
(a) |
in the case of a Notice to the Vendor and/or SQM Parent at: |
Sociedad Química y Minera de Chile S.A.
El Trovador 4285
6th Floor
Santiago, Chile
Attention: |
Pablo Altimiras |
E-mail: |
[redacted – personal information] |
SQM Potasio S.A.
El Trovador 4285
6th Floor
Santiago, Chile
Attention: |
Pablo Altimiras |
E-mail: |
[redacted – personal information] |
with a copy (which shall not constitute notice) to:
Winston & Strawn LLP
200 Park Avenue
New York, NY 10166
USA
Attention: |
J. Allen Miller |
E-mail: |
amiller@winston.com |
LEGAL_1:50904367.3
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|
(b) |
in the case of a Notice to LAC at: |
Lithium Americas Corp.
1150-355 Burrard Street
Vancouver, BC V6C 2G8
Canada
Attention: |
Tom Hodgson |
E-mail: |
[redacted – personal information] |
with a copy (which shall not constitute notice) to:
Osler, Hoskin & Harcourt LLP
Suite 6200, 1 First Canadian Place
Toronto, ON M5X 1B8
Canada
Attention: |
Emmanuel Pressman |
E-mail: |
epressman@osler.com |
|
(c) |
in the case of a Notice to GFL at: |
GFL International Co., Ltd.
Room 2103, Tung Chiu Commercial Centre
193 Lockhart Road
Wan Chai, Hong Kong
Attention: |
Haibing Shen |
Email: |
[redacted – personal information] |
with copies (which shall not constitute notice)
Gowling WLG (Canada) LLP
550 Burrard Street, Suite 2300, Bentall 5
Vancouver, BC V6C 2B5 Canada
Attention: |
Linda J. Hogg |
E-mail: |
linda.hogg@gowlingwlg.com |
|
(d) |
in the case of a Notice to the Company at: |
Minera Exar S.A.
Dr. Sabin 1082
San Salvador de Jujuy
Jujuy, Argentina ZC 4600
Attention: |
Franco Mignacco, President |
E-mail: |
[redacted – personal information] |
LEGAL_1:50904367.3
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Any Notice delivered or transmitted to a Party as provided above shall be deemed to have been given and received on the day it is delivered or transmitted, provided that it is delivered or transmitted on a Business Day prior to 5:00 p.m. local time in the place of delivery or receipt. However, if the Notice is delivered or transmitted after 5:00 p.m. local time or if such day is not a Business Day then the Notice shall be deemed to have been given and received on the next Business Day.
Any Party may, from time to time, change its address by giving Notice to the other Parties in accordance with the provisions of this Section.
GFL shall be entitled, upon giving notice to the Vendor and LAC at any time not less than five Business Days prior to the Closing Date, to assign all of its rights and obligations under this Agreement to any controlled Affiliate of GFL. In such case, such assignee shall have and may exercise all the rights, and shall assume all of the obligations, of GFL under this Agreement, except that such assignment shall not release GFL from liability for its obligations under this Agreement. Except for such permitted assignment, no Party may assign this Agreement or any rights or obligations under this Agreement without the prior written consent of the other Party.
This Agreement enures to the benefit of and is binding upon the Parties and their respective successors (including any successor by reason of amalgamation of any Party) and permitted assigns.
No amendment, supplement, modification or waiver or termination of this Agreement and, unless otherwise specified, no consent or approval by any Party, is binding unless executed in writing by the Party to be bound thereby.
The Parties shall, with reasonable diligence, do all such things and provide all such reasonable assurances as may be required to consummate the Transactions, and each Party shall provide such further documents or instruments required by any other Party as may be reasonably necessary or desirable to effect the purpose of this Agreement and carry out its provisions, whether before or after the Closing.
This Agreement may be executed by the Parties in counterparts in Canada, Chile, China or Hong Kong, as the case may be, and may be executed and delivered by facsimile or other electronic means and all such counterparts and facsimiles or electronic deliveries together constitute one and the same agreement.
LEGAL_1:50904367.3
- 42 -
|
(a) |
Any dispute, controversy or claim arising out of or in relation to or in connection with this Agreement, including without limitation any dispute as to the construction, validity, interpretation, enforceability or breach of this Agreement, and any dispute relating to any non-contractual obligations arising out of or in connection with it, shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by three (3) arbitrators appointed in accordance with the said Rules. |
|
(b) |
The seat of any arbitration commenced pursuant to this Section 13.13 shall be New York, New York. This Section 13.13 shall be governed by the United States Federal Arbitration Act (9 U.S.C. §§ 1-307). |
|
(c) |
The law applicable to the merits of an arbitration commenced pursuant to this Section 13.13 shall be the governing law specified in Section 1.2(c). |
|
(d) |
Unless the Parties agree differently, all proceedings conducted by the arbitral tribunal designated pursuant to this Section 13.13 will be held in New York, New York and conducted in the English language. |
|
(e) |
A decision of the arbitrators is final and binding without the right of appeal, except under the grounds for modification or non-enforcement provided by the United States Federal Arbitration Act (9 U.S.C. §§ 1-307). |
|
(f) |
The decision of the arbitrators shall be made in US dollars, converted to, and promptly paid free of any deduction or offset. Payment of this amount shall be made by wire transfer into a bank account designated in writing by the Party awarded judgment by the arbitration within five (5) Business Days after the award. |
|
(g) |
Judgment upon the award may be entered in any court having jurisdiction over the person or the assets of the Party owing the judgment in accordance with the terms of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“New York Convention”) or application may be made to such court for a judicial acceptance of the award and an order of enforcement, as the case may be, pursuant to the New York Convention. |
|
(h) |
The arbitrators shall take into account principles of legal privilege, such as those involving the confidentiality of communications between a lawyer and a client. |
|
(i) |
The Parties agree that any arbitral tribunal appointed hereunder may exercise jurisdiction with respect to this Agreement. |
(Signature pages follow)
LEGAL_1:50904367.3
IN WITNESS OF WHICH the Parties have executed this Agreement.
SQM POTASIO S.A. |
|
|
|
By: |
“Patricio De Solminihac” |
|
Name: Patricio De Solminihac |
|
Title: Chief Executive Officer |
|
|
By: |
“Pablo Altimiras” |
|
Name: Pablo Altimiras |
|
Title: Vice President Development and Planning |
SOCIEDAD QUÍMICA Y MINERA DE CHILE S.A. |
|
|
|
By: |
“Patricio De Solminihac” |
|
Name: Patricio De Solminihac |
|
Title: Chief Executive Officer |
|
|
By: |
“Pablo Altimiras” |
|
Name: Pablo Altimiras |
|
Title: Vice President Development and Planning |
LEGAL_1:50904367.3
LITHIUM AMERICAS CORP. |
|
|
|
By: |
“W. Thomas Hodgson” |
|
Name: W. Thomas Hodgson |
|
Title: Chief Executive Officer |
2265866 ONTARIO INC. |
|
|
|
By: |
“W. Thomas Hodgson” |
|
Name: W. Thomas Hodgson |
|
Title: Chief Executive Officer |
LEGAL_1:50904367.3
MINERA EXAR S.A. |
|
|
|
By: |
“Pablo Altimiras” |
|
Name: Pablo Altimiras |
|
Title: Vice President |
AUTORIZO LA FIRMA: de don Pablo Andrés Altimiras Ceardi, chileno, casado, ingeniero, cedula de identidad trece millones seiscientos cincuenta y siete mil ochocientos sesenta y dos guión seis, en la representación que inviste, con esta fecha.
Santiago 13 de Agosto de 2018. [INITIALS]
[NOTARIAL SEAL]
LEGAL_1:50904367.3
GFL INTERNATIONAL CO LTD. |
|
|
|
By: |
“Wang Xiaoshen” |
|
Name: Wang Xiaoshen |
|
Title: Executive Director |
LEGAL_1:50904367.3
Schedule 3.3(a)(i)
Notice pursuant Section 215 of ACL
Notificación Art. 215 Ley N° 19.550
Ciudad de Buenos Aires, [●] de [__] de 2018
Señores
MINERA EXAR S.A.
Palma Carrillo 54, Planta Baja, Of. 7
San Salvador de Jujuy
Argentina
De nuestra mayor consideración:
Por medio de la presente notificamos a Uds., en cumplimiento de lo dispuesto por el artículo 215 de la Ley 19.550, que transferimos la totalidad de nuestra tenencia accionaria, es decir, la cantidad de [211.525.416] acciones clase “C”, ordinarias, nominativas no endosables, de valor nominal AR$ 1 cada una, con derecho a un voto por acción, 100% integradas, emitidas por MINERA EXAR S.A. (la “Sociedad”), de la siguiente manera: [________] acciones clase “C”, ordinarias, nominativas no endosables, de valor nominal AR$ 1 cada una, con derecho a un voto por acción y 100% integradas, a favor de [________].
Del mismo modo, dejamos asentado que las acciones transferidas incluyen todos los derechos políticos y patrimoniales y los derechos de cobro de acreedor a los que teníamos derecho como accionista, y cualquier otro derecho de cualquier naturaleza que se origine en las referidas acciones.
En virtud de lo dispuesto por el artículo 215 de la Ley General de Sociedades Nº 19.550, les solicitamos se sirvan tomar razón de la presente transferencia y asentarla en el Libro de Registro de Acciones de la Sociedad.
SQM POTASIO S.A.
|
||
Nombre: |
|
[●] |
Cargo |
[●] |
|
LEGAL_1:50904367.3
Schedule 3.3(a)(ii)
Resignation Letter
Ciudad de San Salvador de Jujuy, [_] de [__] de 2018
Señores
Minera Exar S.A.
Palma Carrillo 54, Planta Baja, Of. 7
San Salvador de Jujuy
República Argentina
De mi mayor consideración:
En mi carácter de Director [Titular/Suplente] de Minera Exar S.A. (la “Sociedad”) me dirijo a Uds. a fin de comunicarles que, por motivos personales y con efecto a la fecha de celebración de la asamblea de accionistas que considere mi renuncia, renuncio en forma indeclinable a mi cargo de Director [Titular/Suplente] de la Sociedad, dejando constancia que renuncio a percibir todo y cualquier honorario, pago o compensación que por cualquier concepto pudiera corresponderme desde la fecha de mi designación en el cargo arriba mencionado hasta la fecha de mi renuncia y que no hubiera ya percibido al día de la fecha.
Asimismo, dejo expresa constancia que: (i) nada tengo que reclamar contra la Sociedad y/o sus accionistas por concepto alguno; y (ii) a todo evento, renuncio irrevocablemente al ejercicio contra la Sociedad de cualquier acción o derecho que me pudiera corresponder con causa en cualquier hecho, acto o cualquier otro concepto incurrido o producido con anterioridad a mi renuncia, así como a todos los créditos, reclamos, actuales o futuros, que tenga o pudiera tener contra la Sociedad por el desempeño de mi cargo como Director [Titular/Suplente] de la Sociedad.
Consecuentemente, en los términos del Artículo 259 de la Ley General de Sociedades Nº 19.550, solicito se tome nota de mi renuncia, dejándose constancia de que la misma no es intempestiva ni dolosa, y se comunique la misma a los accionistas de la Sociedad a fin de ser considerada en la próxima asamblea que se celebre.
Sin otro particular, saludo a Uds. muy atentamente.
[Nombre]
Cargo: Director [Titular/Suplente]
[ESTE DOCUMENTO DEBE CONTENER FIRMA CERTIFICADA POR ESCRIBANO PÚBLICO Y ESTAR LEGALIZADO POR EL COLEGIO PÚBLICO DE ESCRIBANOS DE LA CIUDAD DE SAN SALVADOR DE JUJUY.]
- 2 -
Ciudad de [__], [_] de [julio] de 2018
Señores
Minera Exar S.A.
Palma Carrillo 54, Planta Baja, Of. 7
San Salvador de Jujuy
República Argentina
De mi mayor consideración:
En mi carácter de Síndico [Titular/Suplente] de Minera Exar S.A. (la “Sociedad”) me dirijo a Uds. a fin de comunicarles que, por motivos personales y con efecto a la fecha de celebración de la asamblea de accionistas que considere mi renuncia, renuncio en forma indeclinable a mi cargo de Síndico [Titular/Suplente] de la Sociedad, dejando constancia que renuncio a percibir todo y cualquier honorario, pago o compensación que por cualquier concepto pudiera corresponderme desde la fecha de mi designación en el cargo arriba mencionado hasta la fecha de mi renuncia y que no hubiera ya percibido al día de la fecha.
Asimismo, dejo expresa constancia que: (i) nada tengo que reclamar contra la Sociedad y/o sus accionistas por concepto alguno; y (ii) a todo evento, renuncio irrevocablemente al ejercicio contra la Sociedad de cualquier acción o derecho que me pudiera corresponder con causa en cualquier hecho, acto o cualquier otro concepto incurrido o producido con anterioridad a mi renuncia, así como a todos los créditos, reclamos, actuales o futuros, que tenga o pudiera tener contra la Sociedad por el desempeño de mi cargo como Síndico [Titular/Suplente] de la Sociedad.
Sin otro particular, saludo a Uds. muy atentamente.
[Nombre]
Cargo: Síndico [Titular/Suplente]
[ESTE DOCUMENTO DEBE CONTENER FIRMA CERTIFICADA POR ESCRIBANO PÚBLICO Y ESTAR LEGALIZADO]
LEGAL_1:50904367.3
Schedule 3.3(B)
Notice OF ASSIGNMENT OF IRREVOCABLE CAPITAL CONTRIBUTIONS
[Santiago de Chile], [●] de [●] de 2018
Sres.
MINERA EXAR S.A.
Palma Carrillo 54, Planta Baja, Of. 7
San Salvador de Jujuy (4600)
Argentina
De nuestra mayor consideración:
Ref.: Cesión de Aportes Irrevocables de SQM Potasio S.A. a favor de [●]
De mi mayor consideración:
[●], en mi carácter de [●], con poder suficiente y en representación de SQM Potasio S.A. (en adelante, “SQM”), por la presente, hacemos saber a Minera Exar S.A. (en adelante, la “Sociedad”) que en el día de la fecha SQM ha cedido a favor de [●] los derechos correspondientes a los aportes irrevocables a cuenta de futuros aumentos de capital realizados a la Sociedad por un monto total de US$23.300.000 (Dólares Estadounidenses veintitrés millones trescientos mil) (los “Aportes Irrevocables”), según el siguiente detalle: (i) aporte de U$S 13.300.000 realizado el 6 de octubre de 2017, según oferta de aporte irrevocable de fecha 5 de octubre de 2017; (ii) aporte de U$S 3.000.000 realizado el 31 de enero de 2018, según oferta de aporte irrevocable de fecha 25 de enero de 2018; (iii) aporte de U$S 3.500.000 realizado el 23 de febrero de 2018, según oferta de aporte irrevocable de fecha 14 de febrero de 2018; y (iv) aporte de U$S 3.500.000 realizado el 13 de abril de 2018, según oferta de aporte irrevocable de fecha 12 de abril de 2018.
En consecuencia, solicitamos la Sociedad tomar debida nota de la cesión de los Aportes Irrevocables a favor de [●].
Sin otro particular, los saludamos muy atentamente.
SQM POTASIO S.A.
Por: |
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Schedule 3.6(A)
Minutes of the Board of Directors - Resignations
ACTA DE DIRECTORIO del [__/__/18]
Convocatoria a Asamblea
En la Provincia de Jujuy, República Argentina a los [__] días del mes de [__] de 2018, siendo las 9:00 horas, se reúnen en el local de la sede social sito en Palma Carrillo 54, Planta Baja, Oficina 7, San Salvador de Jujuy, los Directores Titulares de Minera Exar S.A. (la “Sociedad”), que firman la presente. Preside la reunión el Sr. [redacted – personal information], quien habiendo constatado la existencia de quórum suficiente, declara abierto el acto, a fin de resolver las cuestiones del siguiente Orden del Día:
1) Consideración de las renuncias presentadas por los Sres. [redacted – personal information], a su cargo de Director Titular y Vicepresidente, [redacted – personal information], a su cargo de Director Titular, [redacted – personal information] y [redacted – personal information], a su cargos de Directores Suplentes, [redacted – personal information] a su cargo de Síndico Titular y [redacted – personal information] a su cargo de Síndico Suplente; y
2) Convocatoria a Asamblea General Ordinaria de Accionistas.
Puesto a consideración el primer punto del Orden del Día: 1) “Consideración de las renuncias presentadas por los Sres. [redacted – personal information], a su cargo de Director Titular y Vicepresidente, [redacted – personal information], a su cargo de Director Titular, y [redacted – personal information] y [redacted – personal information], a sus cargos de Directores Suplentes, [redacted – personal information] a su cargo de Síndico Titular y [redacted – personal information] a su cargo de Síndico Suplente”. El Sr. Presidente informa a los presentes que en el día de la fecha, la Sociedad ha recibido en la sede social las siguientes notificaciones: (A) carta de fecha [__] enviada por el Sr. [redacted – personal information] manifestando (i) su renuncia indeclinable a su cargo de Director Titular y Vicepresidente de la Sociedad; (ii) que nada tiene que reclamar contra la Sociedad y/o sus accionistas por concepto alguno y; (iii) que, a todo evento, renuncia irrevocablemente al ejercicio contra la Sociedad de cualquier acción o derecho que le pudiera corresponder con causa en cualquier hecho, acto o cualquier otro concepto incurrido o producido con anterioridad a su renuncia, así como a todos los créditos, reclamos, actuales o futuros, que tenga o pudiera tener contra la Sociedad por el desempeño de su cargo como Director Titular y Vicepresidente de la Sociedad; (B) carta de fecha [__] enviada por el Sr. [redacted – personal information] manifestando (i) su renuncia indeclinable a su cargo de Director Titular de la Sociedad; (ii) que nada tiene que reclamar contra la Sociedad y/o sus accionistas por concepto alguno; y (iii) que, a todo evento, renuncia irrevocablemente al ejercicio contra la Sociedad de cualquier acción o derecho que le pudiera corresponder con causa en cualquier hecho, acto o cualquier otro concepto incurrido o producido con anterioridad a su renuncia, así como a todos los créditos, reclamos, actuales o futuros, que tenga o pudiera tener contra la Sociedad por el desempeño de su cargo como Director Titular; (C) carta de fecha [__] enviada por el Sr. [redacted – personal information manifestando (i) su renuncia indeclinable a su cargo de Director Suplente de la Sociedad; (ii) que nada tiene que reclamar contra la Sociedad y/o sus accionistas por concepto alguno y (iii) que, a todo evento, renuncia irrevocablemente al ejercicio contra la Sociedad de cualquier acción o derecho que le pudiera corresponder con causa en cualquier hecho, acto o cualquier otro concepto incurrido o producido con anterioridad a su renuncia, así como a todos los créditos, reclamos, actuales o futuros, que tenga o pudiera tener contra la Sociedad por el desempeño de su cargo como Director Suplente de la Sociedad; (D) carta de fecha [__] enviada por el Sr. [redacted – personal information manifestando (i) su renuncia indeclinable a su cargo de Director Suplente de la Sociedad; (ii) que nada tiene que reclamar contra la Sociedad y/o sus accionistas por concepto alguno y (iii) que, a todo evento, renuncia irrevocablemente al ejercicio contra la Sociedad de cualquier acción o derecho que le pudiera corresponder con causa en cualquier hecho, acto o cualquier otro concepto incurrido o producido con anterioridad a su renuncia, así como a todos los créditos, reclamos, actuales o futuros, que tenga o pudiera tener contra la Sociedad por
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el desempeño de su cargo como Director Suplente de la Sociedad; (E) carta de fecha [__] enviada por el Sr. [redacted – personal information] manifestando (i) su renuncia indeclinable a su cargo de Síndico Titular de la Sociedad; (ii) que nada tiene que reclamar contra la Sociedad y/o sus accionistas por concepto alguno y (iii) que, a todo evento, renuncia irrevocablemente al ejercicio contra la Sociedad de cualquier acción o derecho que le pudiera corresponder con causa en cualquier hecho, acto o cualquier otro concepto incurrido o producido con anterioridad a su renuncia, así como a todos los créditos, reclamos, actuales o futuros, que tenga o pudiera tener contra la Sociedad por el desempeño de su cargo como Síndico Titular de la Sociedad; (F) carta de fecha [__] enviada por el Sr. [redacted – personal information] manifestando (i) su renuncia indeclinable a su cargo de Síndico Suplente de la Sociedad; (ii) que nada tiene que reclamar contra la Sociedad y/o sus accionistas por concepto alguno y (iii) que, a todo evento, renuncia irrevocablemente al ejercicio contra la Sociedad de cualquier acción o derecho que le pudiera corresponder con causa en cualquier hecho, acto o cualquier otro concepto incurrido o producido con anterioridad a su renuncia, así como a todos los créditos, reclamos, actuales o futuros, que tenga o pudiera tener contra la Sociedad por el desempeño de su cargo como Síndico Suplente de la Sociedad. Luego de una breve deliberación, los señores directores aprueban por unanimidad [con abstención del interesado Sr. [redacted – personal information] en cuanto a su renuncia], aceptar las renuncias de los señores [redacted – personal information] a su cargo de Director Titular y Vicepresidente de la Sociedad; [redacted – personal information]a su cargo de Director Titular; [redacted – personal information] y [redacted – personal information] a sus cargos de Directores Suplentes; [redacted – personal information] a su cargo de Síndico Titular y [redacted – personal information] a su cargo de Síndico Suplente.
Acto seguido, el Sr. Presidente pone a consideración de los presentes el segundo y último punto del Orden del Día: 2) “Convocatoria a Asamblea General Ordinaria de Accionistas”. Manifiesta el Sr. Presidente que, en virtud de lo resuelto en el punto precedente, corresponde convocar a una Asamblea General Ordinaria de Accionistas, y los presentes resuelven por unanimidad convocar a una Asamblea General Ordinaria a celebrarse el día [de la fecha] a las 10:00 horas en primera convocatoria y a las [__:__] horas del mismo día en segunda convocatoria, en [__] [San Salvador de Jujuy], a fin de considerar el siguiente Orden del Día: “1) Designación de dos accionistas para que firmen el acta respectiva; 2) Consideración de la renuncia de los Sres. miembros del Directorio y Síndicos; Consideración de la gestión y honorarios de los Directores y Síndicos salientes; 3) Fijación del número de miembros titulares y suplentes del Directorio, y su elección; 4) Elección de miembros titulares y suplentes de la Comisión Fiscalizadora; y 5) Otorgamiento de las autorizaciones necesarias con relación a lo resuelto en los puntos precedentes.” Agrega el Sr. Presidente que todos los accionistas de la Sociedad han comprometido su asistencia a la Asamblea por lo cual la misma podrá celebrarse válidamente sin efectuar las publicaciones de los avisos de la convocatoria por así permitirlo el último párrafo del artículo 237 de la Ley General de Sociedades, siempre que se reúnan los requisitos de dicha norma legal. Por lo cual, se resuelve por unanimidad no efectuar las publicaciones de la convocatoria a Asamblea.
No habiendo más asuntos que tratar se levanta la sesión siendo las [__:__] horas.
[redacted – personal information]
Presidente
[redacted – personal information]
Vicepresidente
LEGAL_1:50904367.3
Schedule 3.6(B)
Minutes of the shareholders’ meeting of the Company
ACTA de ASAMBLEA GENERAL ORDINARIA UNÁNIME del [__/__/2018]
En la Provincia de Jujuy, República Argentina, a los [__] días del mes de [__] de 2018, siendo las [__:__] horas, se reúnen en el local de la sede social sito en Palma Carrillo 54, Planta Baja, Oficina 7 San Salvador de Jujuy, la totalidad de los accionistas de MINERA EXAR S.A. (en adelante la “Sociedad”), 2265866 ONTARIO INC. (en adelante "ONTARIO") representada en este acto por [__________]; LITHIUM AMERICAS CORP. (en adelante "LITHIUM") representada en este acto por [______________]; y SQM POTASIO S.A. (en adelante “SQM”), representada en este acto por [_____________], quienes suscriben la Planilla de Asistencia a fs. [______] del Libro de Registro de Asistencia a Asambleas Generales N° [2], rubricado con fecha [29 de junio de 2015].
Se deja constancia que también se encuentran presentes el Sr. Presidente [redacted – personal information] y el Síndico Titular [redacted – personal information] quienes proceden a constatar la asistencia de los accionistas que conforman el 100% (cien por ciento) del capital social y de los votos mediante la compulsa de la documentación relacionada; otorgándosele al acto el carácter de unánime. Teniendo en cuenta que la asistencia verificada se ajusta a lo prescrito por el Estatuto Social, el Presidente declara legalmente constituida la Asamblea en primera convocatoria y se pasa a tratar el Orden del Día el cual luego de su lectura, se transcribe a continuación:
1) Designación de dos accionistas para que firmen el acta respectiva;
2) Consideración de la renuncia de los Sres. miembros del Directorio y Síndicos; consideración de la gestión y honorarios de los Directores y Síndicos salientes;
3) Fijación del número de miembros titulares y suplentes del Directorio, y su elección;
4) Elección de miembros titulares y suplentes de la Comisión Fiscalizadora; y
5) Otorgamiento de las autorizaciones necesarias con relación a lo resuelto en los puntos precedentes.
Sigue en uso de la palabra el Sr. Presidente, quien pone a consideración de todos los presentes el primer punto del Orden del Día:
1) “Designación de dos accionistas para que firmen el acta respectiva”. El Sr. Presidente propone se designe para aprobar y firmar el acta de la presente asamblea a todos los Sres. accionistas presentes. Sometida a votación, se resuelve por unanimidad designar a la totalidad de los accionistas presentes para firmar el acta de la presente Asamblea.
A continuación, se somete a consideración de los presentes el segundo punto del Orden del Día:
2) “Consideración de la renuncia de los Sres. miembros del Directorio y síndicos; Consideración de la gestión y honorarios de los directores y síndicos salientes”. Toma la palabra el Sr. Presidente, quien informa a los presentes que los Sres. [redacted – personal information] en su condición de Director Titular y Vicepresidente; [redacted – personal information], en su condición de Director Titular, [redacted – personal information], en su condición de Director Suplente, [redacted – personal information], en su condición de Director Suplente, [redacted – personal information] en su condición de Síndico Titular y [redacted – personal information] en su condición de Síndico Suplente, respectivamente, han renunciado a sus cargos a partir del día de la fecha, dejando constancia que han renunciado a los honorarios que pudieran corresponderles, y haciendo extensiva su renuncia respecto de todos los créditos, reclamos, actuales o futuros, que tengan o pudieran tener contra la Sociedad por el desempeño de sus cargos. En tal sentido, el Sr. Presidente propone aceptar todas las renuncias recibidas
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de parte de las personas mencionadas y aprobar la gestión por cada uno de ellos realizada. Luego de ocurrido el correspondiente debate e intercambio de ideas entre todos los asistentes se resuelve por unanimidad aceptar la renuncia presentada por los Sres. [redacted – personal information] en su condición de Director Titular y Vicepresidente; [redacted – personal information], en su condición de Director Titular, [redacted – personal information], en su condición de Director Suplente, [redacted – personal information], en su condición de Director Suplente, [redacted – personal information] en su condición de Síndico Titular y [redacted – personal information] en su condición de Síndico Suplente, respectivamente y aprobar la gestión por cada uno de ellos realizada en el desempeño de sus funciones hasta el día de la fecha, agradeciéndoles por los servicios prestados y las renuncias efectuadas respecto de sus honorarios.
Seguidamente, el Sr. Presidente somete a consideración de los presentes el tercer punto del Orden del Día:
3) “Fijación del número de miembros titulares y suplentes del Directorio, y su elección”. El Sr. Presidente informa que, como consecuencia de las renuncias aprobadas en el punto anterior, resulta necesario determinar el número de Directores Titulares y Suplentes y proceder a su elección. Luego de un breve intercambio de opiniones sobre el particular, se resuelve por unanimidad aprobar lo manifestado por el Sr. Presidente y fijar en [4 (cuatro)] el número de Directores Titulares y en [4 (cuatro)] el número de Directores Suplentes de la Sociedad y designar a los Sres. [redacted – personal information] y [redacted – personal information] como Directores Titulares y a los Sres. [redacted – personal information] y [redacted – personal information] como Directores Suplentes por la clase A y a los Sres. [_________] y [___________] como Directores Titulares y a los Sres. [________] y [_____________] como Directores Suplentes por la clase C. Seguidamente, el Presidente informa que resulta necesario distribuir los cargos antes designados. Seguidamente, se resuelve por unanimidad distribuir los cargos de la siguiente manera:
Presidente y Director Titular Clase A: [redacted – personal information]
Vicepresidente y Director Titular Clase C: [___________]
Director Titular Clase A: [redacted – personal information]
Director Titular Clase C: [_____________]
Director Suplente Clase A: [redacted – personal information]
Director Suplente Clase A: [redacted – personal information]
Director Suplente Clase C: [______________]
Director Suplente Clase C: [_____________]
Acto seguido, el Sr. Presidente somete a consideración de los presentes el cuarto punto del Orden del Día:
4) “Elección de miembros titulares y suplentes de la Comisión Fiscalizadora”. Sigue con la palabra el Sr. Presidente quien informa que dadas las renuncias aprobadas en el punto dos anterior, resulta necesario proceder a la elección de los miembros Titulares y Suplentes de la Comisión Fiscalizadora. Luego de un breve intercambio de opiniones sobre el particular, se resuelve por unanimidad aprobar lo manifestado por el Sr. Presidente y designar al Sr. [redacted – personal information] como miembro titular de la comisión fiscalizadora y al Sr. [redacted – personal information] como miembro suplente de la comisión fiscalizadora por la clase A y, al Sr. [____________] como miembro titular de la comisión fiscalizadora y al Sr. [___________] como miembro suplente de la comisión fiscalizadora por la Clase C.
Seguidamente, el Sr. Presidente somete a consideración de los presentes el quinto y último punto del Orden del Día:
5) “Otorgamiento de las autorizaciones necesarias con relación a lo resuelto en los puntos precedentes”, Se resuelve por unanimidad:
LEGAL_1:50904367.3
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|
(i) |
Facultar y Autorizar a los Sres. [______________________] para que en forma indistinta realicen todos los trámites administrativos y judiciales que sean necesarios para obtener la conformidad administrativa e inscripción en el Registro Público de Comercio; otorgando en este acto a los autorizados mandato a este efecto, con facultades suficientes para suscribir las notas de elevación, notificarse, ratificar o rectificar vistas y proveídos y salvar observaciones relacionadas con la presentación de la documentación aludida, pudiendo para ello suscribir todo tipo de instrumentos y escrituras públicas, inclusive solicitar la rúbrica de libros, en el Registro Público de Comercio, dependiente del Poder Judicial de la Provincia de Jujuy. |
|
(ii) |
Asimismo, se faculta a [______________________] a retirar el Expte. de la Dirección de Personas Jurídicas a los fines de facilitar las tramitaciones, a retirar libros rubricados y a notificarse y solicitar copias certificadas de las resoluciones recaídas en el mismo. |
|
(iii) |
En todos los casos, las autorizaciones deben entenderse e interpretarse con el alcance más amplio que permita facilitar la conformación administrativa y la posterior inscripción de las resoluciones aquí dispuestas como asimismo las tramitaciones actuales y también futuras, y que se otorgan con vigencia y validez aún con posterioridad a la inscripción del presente trámite en el Registro Público de Comercio. |
Finalmente, se resuelve por unanimidad dejar constancia en actas que la presente Asamblea reviste el carácter de unánime, en los términos del artículo 237 in fine de la Ley 19.550, en tanto ha sido celebrada con la presencia de accionistas titulares de la totalidad del capital social y las resoluciones han sido adoptadas por unanimidad. No habiendo otros temas que tratar, siendo las 13:00 horas se declara concluida la presente Asamblea.
[___________]
En representación de 2265866 ONTARIO INC
[__________]
En representación de LITHIUM AMERICAS CORP.
[_________]
En representación de SQM POTASIO S.A.
[redacted – personal information]
Presidente
[redacted – personal information]
Sindico
LEGAL_1:50904367.3
Schedule 3.6(D)
Minutes of the Board of Directors – Acknowledge receipt of Notice pursuant to Section 215 of the ACL
ACTA DE DIRECTORIO del [__/__/__]
En la provincia de Jujuy a los [___] días del mes de [__] de 2018, siendo las [__:__] horas, se reúnen en el local de la sede social sito en [__], Palma Carrillo 54, Planta Baja, Oficina 7, San Salvador de Jujuy los Directores Titulares de Minera Exar S.A. (la “Sociedad”), señores directores que firman al pie de la presente, con la presencia del Síndico Titular Sr. [__]. Preside la reunión el Sr. [redacted – personal information], quien habiendo constatado la existencia de quórum suficiente, declara abierto el acto, a fin de resolver las cuestiones del siguiente Orden del Día:
1) Consideración de la notificación recibida de parte de SQM POTASIO S.A. en los términos del artículo 215 de la Ley General de Sociedades N° 19.550.
Puesto a consideración el primer punto del Orden del Día: 1) “Consideración de la notificación recibida de parte de SQM POTASIO S.A. en los términos del artículo 215 de la Ley General de Sociedades N° 19.550 (la “Ley General de Sociedades”)”. El Sr. Presidente manifiesta que en el día de la fecha, la Sociedad ha recibido una carta de parte de su accionista SQM POTASIO S.A. mediante la cual notifica a la Sociedad, en los términos del Artículo 215 de la Ley General de Sociedades, que ha transferido la totalidad de sus acciones de la Sociedad, es decir, [211.525.416] acciones clase “C”, ordinarias, nominativas no endosables, de valor nominal AR$ 1 cada una, con derecho a un voto por acción y 100% integradas, incluyendo todos los derechos políticos y económicos inherentes a las mismas de la siguiente manera: [_______] acciones clase “C”, ordinarias, nominativas no endosables, de valor nominal AR$ 1 cada una, con derecho a un voto por acción y 100% integradas a favor de [_______]. Como consecuencia de lo expuesto por el Sr. Presidente, y luego de una breve deliberación sobre el particular, se resuelve por unanimidad de votos: (i) tomar nota de la notificación realizada por SQM POTASIO S.A. a la Sociedad; (ii) registrar la[s] transferencia[s] accionaria[s] en el correspondiente libro de Registro de Accionistas de la Sociedad; y (iii) proceder a la cancelación del título accionario N° [__] y emitir en su reemplazo los títulos N° [__] a nombre de [_______] y N° [__] a nombre de [_______].
2) Revocación de Poder Especial.
Luego, el Sr. Presidente pone a consideración de los presentes el segundo punto del Orden del Día: 2) “Revocación de Poder Especial” y, al respecto, manifiesta que en virtud de ciertas modificaciones en la estructura de la Sociedad, corresponde proceder a la revocación del Poder Especial otorgado por la Sociedad a favor de SQM Potasio S.A., elevado a escritura pública número setenta y tres de fecha 29 de marzo de 2016, por ante la escribana Dra. [redacted – personal information], titular del Registro Notarial N° 69 de San Salvador de Jujuy, que consta en los folios 613 a 614 del Protocolo “A”. Luego de una breve deliberación, se resuelve: (i) revocar el Poder Especial otorgado por la Sociedad a favor de SQM Potasio S.A., elevado a escritura pública número setenta y tres de fecha 29 de marzo de 2016, por ante la escribana Dra. [redacted – personal information], titular del Registro Notarial N° 69 de San Salvador de Jujuy, que consta en los folios 613 a 614 del Protocolo “A”; y (ii) autorizar a los Sres. [________] para que, cualquiera de ellas, de forma individual o conjunta, proceda a elevar lo resuelto por este Directorio a escritura pública, y a firmar, celebrar y/u otorgar cualquier otro acto y/o documento necesario o conveniente para la consumación de lo resuelto por este Directorio en el presente punto.
No habiendo otros temas para tratar, se cierra el acto siendo las [__:__] horas.
SCHEDULE 11.1(a)(ii)
INTERIM PERIOD ACTIVITIES
[redacted – commercially sensitive information relating to interim period funding and activities]
SCHEDULE 11.1(III)(B)
APPROVED BUDGET
(see attached)
[redacted - commercially sensitive information relating to interim period funding and activities]
Effective as of the Closing
1. |
Reference is made to: |
|
(a) |
the Shareholders Agreement; |
|
(b) |
the subscription agreement between SQM Parent and the Company dated as of March 28, 2016 (the “Subscription Agreement”); |
|
(c) |
the indemnification agreement between SQM Parent and LAC dated March 28, 2016 (the “Indemnification Agreement”); |
|
(d) |
all other agreements and letter agreements between the Vendor and/or SQM Parent, on the one hand, and LAC, 226 and/or the Company, on the other hand (collectively, if any, the “Other Agreements”); and |
|
(e) |
Sections 11.11 and 11.12 of the Agreement and Schedules 11.11 and 11.12 to the Agreement, each effective as of the Closing. |
2. |
The Vendor, LAC, 226 and the Company agree that the Shareholders Agreement is terminated and ceases to have effect as of the Closing under the terms and conditions set forth in Section 7.22 of the Shareholders Agreement, provided that, notwithstanding the foregoing, sections 4.05 and 4.06 of the Shareholders Agreement shall survive such termination. |
3. |
SQM Parent and the Company agree that the Subscription Agreement is terminated and ceases to have effect as of the Closing Date. |
4. |
SQM Parent and LAC agree that the Indemnification Agreement is terminated and ceases to have effect as of the Closing Date. |
5. |
The Vendor hereby irrevocably and unconditionally waives all of its rights pursuant to an under the “contrato de opcion de compra” (purchase option agreement) by and between Grupo Minero Los Boros S.A. and the Company dated March 28, 2016, entered by public deed No. 71 perfected by notary Mariana Antoraz of the Province of Jujuy, Argentina. |
6. |
The Parties to this Schedule 11.10 agree that all Other Agreements is terminated and ceases to have effect as of the Closing, except that this provision shall not apply in respect of the Agreement or any other agreements or instruments contemplated by the Transaction Agreement, including but not limited to the LAC Release and the SQM Release. |
7. |
The parties hereto shall with reasonable diligence do all such things and provide all such reasonable assurances as may be required to consummate the transactions contemplated by this agreement, and each party shall provide such further documents or instruments required by any other party as may be reasonably necessary or desirable to effect the purpose of this agreement and carry out its provisions. |
Schedule 11.11
LAC, 226 and COMPANY Release
Effective as of the Closing
TO: |
the Vendor |
AND TO: |
SQM Parent |
1.LAC, 226 and the Company, each on behalf of itself and on behalf of its Affiliates (collectively, the “Releasors”), hereby forever irrevocably and unconditionally remises, releases and forever discharges the Vendor, SQM Parent and their respective Affiliates and their predecessors, successors and assigns, and their present and former directors, officers, employees, partners, shareholders and agents and each of their heirs, executors, legal personal representatives, administrators, trustees, successors and assigns directors, officers (collectively, the “Releasees”), from any and all actions, manners of actions, causes of action, suits, proceedings, executions, judgments, debts, accounts, liabilities, bonds, claims, losses, obligations, covenants, contracts, expenses, costs, damages, demands and all other claims whatsoever, whether express or implied, contingent or otherwise, at law or in equity (collectively, “Claims”), which any of the Releasors ever had, now has or hereafter can, shall or may have against the Releasees for any reason, including by reason of or in respect of any act, cause, matter or thing whatsoever existing, or done or omitted to be done by the Releasees, existing up to and including, or arising in respect of the period prior to, the date of this Release, that relate to, arise from, or are in any way connected (directly or indirectly) with the business and affairs of the Company and the Releasors, including for greater certainty and without limiting the generality of the foregoing, the Cauchari-Olaroz Project, and the Shareholders Agreement and each of the Ancillary Shareholder Agreements, provided that nothing in this Release shall release or be deemed to release any claims or other rights, or any basis therefor, whether existing prior to or after the date of this Release, against or in respect of any of the Releasees (x) under the Transaction Agreement or any other agreement, certificate or other instrument delivered under, pursuant to or in accordance with the Transaction Agreement (other than the Company-Vendor Affiliate Services, which shall be released in accordance with this Schedule 11.11 conditional upon payment of the Vendor Services Amount), or (y) due to such Releasee’s (A) violation of a criminal law or (B) fraud or wilful misconduct.
2.The Releasors covenant and agree that they will not, directly or indirectly, commence, maintain or enforce or cause to be commenced, maintained or enforced or join, assist, aid or act in concert in any manner whatsoever with any other person in any proceedings of any kind or nature whatsoever (including without limitation any cross claim, counterclaim, third party action or application) against any person as a result of any injury, loss or damage that the Releasors may have suffered in respect of any or all matters released by the Releasors in this Release, including, without limitation, proceedings against any person who has or might be entitled to claim contribution, indemnity, damages or other relief from the other, as applicable, whether pursuant to statute or otherwise. The Releasor represents and warrants that it has not assigned any Claim released by it hereunder to any person.
3.The Releasors further agree and undertake that neither they nor any of their subsidiaries will, and they will direct and use commercially reasonable efforts to cause their directors, officers or employees not to, directly or indirectly, take, authorize or encourage, on their own
- 2 -
behalf or on behalf of any other person any action or pattern of conduct that defames or which criticizes, ridicules, disparages or involves the making of any derogatory or negative comments, statements or images, whether oral or written, including statements and images made or posted via social media or on the internet (including, without limitation, the repetition or distribution of derogatory rumours, allegations, negative reports or comments) about such party or parties that would reasonably be expected to be deleterious or otherwise damaging to the integrity, reputation or goodwill of the Releasees or their properties and assets; provided, however, that the covenants of the Releasors in this regard shall not apply to any such communication that is truthful and required by applicable law or legal process.
4.The Releasors hereby expressly waive and relinquish to the fullest extent permitted by law, the provisions, rights and benefits of any statute, law, rule or regulation which might otherwise render a release unenforceable with respect to any matters released hereunder.
5.The Releasors covenant and agree that if they hereafter make or participate in the making of any claim or commence or threaten to commence or participate in any claim against any Releasees for or by reason of any cause, matter, claim or action that, pursuant to this instrument, has been released by the undersigned, this release may be raised as an estoppel and complete bar to any such claim.
LEGAL_1:50904367.3
Schedule 11.12
VENDOR and SQM PARENT Release
Effective as of the Closing
TO: |
LAC |
AND TO: |
Company |
1.The Vendor and SQM Parent, each on behalf of itself and on behalf of its Affiliates (collectively, the “Releasors”), hereby forever irrevocably and unconditionally remises, releases and forever discharges LAC, 226, the Company and their respective Affiliates and their predecessors, successors and assigns, and their present and former directors, officers, employees, partners, shareholders and agents and each of their heirs, executors, legal personal representatives, administrators, trustees, successors and assigns directors, officers (collectively, the “Releasees”), from any and all actions, manners of actions, causes of action, suits, proceedings, executions, judgments, debts, accounts, liabilities, bonds, claims, losses, obligations, covenants, contracts, expenses, costs, damages, demands and all other claims whatsoever, whether express or implied, contingent or otherwise, at law or in equity (collectively, “Claims”), which any of the Releasors ever had, now has or hereafter can, shall or may have against the Releasees for any reason, including by reason of or in respect of any act, cause, matter or thing whatsoever existing, or done or omitted to be done by the Releasees, existing up to and including, or arising in respect of the period prior to, the date of this Release, that relate to, arise from, or are in any way connected (directly or indirectly) with the business and affairs of the Company and the Releasors, including for greater certainty and without limiting the generality of the foregoing, the Cauchari-Olaroz Project, and the Shareholders Agreement and each of the Ancillary Shareholder Agreements, provided that nothing in this Release shall release or be deemed to release any claims or other rights, or any basis therefor, whether existing prior to or after the date of this Release, against or in respect of any of the Releasees (x) under the Transaction Agreement or any other agreement, certificate or other instrument delivered under, pursuant to or in accordance with the Transaction Agreement (other than the Company-Vendor Affiliate Services, which shall be released in accordance with this Schedule 11.12 conditional upon payment of the Vendor Services Amount), or (y) due to such Releasee’s (A) violation of a criminal law or (B) fraud or wilful misconduct.
2.The Releasors covenant and agree that they will not, directly or indirectly, commence, maintain or enforce or cause to be commenced, maintained or enforced or join, assist, aid or act in concert in any manner whatsoever with any other person in any proceedings of any kind or nature whatsoever (including without limitation any cross claim, counterclaim, third party action or application) against any person as a result of any injury, loss or damage that the Releasors may have suffered in respect of any or all matters released by the Releasors in this Release, including, without limitation, proceedings against any person who has or might be entitled to claim contribution, indemnity, damages or other relief from the other, as applicable, whether pursuant to statute or otherwise. The Releasor represents and warrants that it has not assigned any Claim released by it hereunder to any person.
3.The Releasors further agree and undertake that neither they nor any of their subsidiaries will, and they will direct and use commercially reasonable efforts to cause their directors, officers or employees not to, directly or indirectly, take, authorize or encourage, on their own
- 2 -
behalf or on behalf of any other person any action or pattern of conduct that defames or which criticizes, ridicules, disparages or involves the making of any derogatory or negative comments, statements or images, whether oral or written, including statements and images made or posted via social media or on the internet (including, without limitation, the repetition or distribution of derogatory rumours, allegations, negative reports or comments) about such party or parties that would reasonably be expected to be deleterious or otherwise damaging to the integrity, reputation or goodwill of the Releasees or their properties and assets, including the Cauchari-Olaroz Project; provided, however, that the covenants of the Releasors in this regard shall not apply to any such communication that is truthful and required by applicable law or legal process.
4.The Releasors hereby expressly waive and relinquish to the fullest extent permitted by law, the provisions, rights and benefits of any statute, law, rule or regulation which might otherwise render a release unenforceable with respect to any matters released hereunder.
5.The Releasors covenant and agree that if they hereafter make or participate in the making of any claim or commence or threaten to commence or participate in any claim against any Releasees for or by reason of any cause, matter, claim or action that, pursuant to this instrument, has been released by the undersigned, this release may be raised as an estoppel and complete bar to any such claim.
LEGAL_1:50904367.3
Exhibit A
Form of Deferred Payment Agreement
(see attached)
FORM OF AGREEMENT
SQM POTASIO S.A.
- and -
GFL INTERNATIONAL CO., LTD. (“GFL International”) or its Wholly-Owned Subsidiary [●] (“GFL Wholly Owned Subsidiary”) (either GFL International or GFL Wholly-Owned Subsidiary being referred to herein as “GFL”)
- and, if GFL is not GFL International and solely for purposes of Section 6.4 -
GFL INTERNATIONAL
- and, solely for purposes of Section 2.2 -
MINERA EXAR S.A.
FORM OF DEFERRED PAYMENT AGREEMENT
●, 2018
LEGAL_1:50904366.3
Table of Contents
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Page |
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ARTICLE 1 INTERPRETATION |
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2 |
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1.1 |
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Definitions |
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2 |
1.2 |
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Certain Rules of Interpretation |
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4 |
1.3 |
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Knowledge |
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5 |
1.4 |
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Entire Agreement |
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6 |
1.5 |
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Schedule |
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6 |
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ARTICLE 2 DEFERRED PAYMENT |
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6 |
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2.1 |
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Deferred Payment |
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6 |
2.2 |
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Detailed Statements and Record Keeping |
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6 |
2.3 |
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No Joint Venture or Partnership |
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8 |
2.4 |
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Sole Discretion and Decision-Making Authority; No Fiduciary Duty |
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8 |
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ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF GFL |
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8 |
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3.1 |
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Status of GFL |
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8 |
3.2 |
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Due Authorization and Enforceability of Obligations |
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8 |
3.3 |
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Absence of Conflicts |
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9 |
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ARTICLE 4 TERMINATION |
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9 |
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4.1 |
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Termination |
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9 |
4.2 |
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Effect of Termination |
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9 |
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ARTICLE 5 SUCCESSORS |
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9 |
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5.1 |
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Successors |
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9 |
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ARTICLE 6 GENERAL |
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10 |
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6.1 |
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Confidentiality |
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10 |
6.2 |
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Non-Waiver |
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10 |
6.3 |
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Specific Performance |
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10 |
6.4 |
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GFL International Guarantee |
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11 |
6.5 |
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Expenses |
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12 |
6.6 |
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Notices |
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12 |
6.7 |
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Assignment |
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13 |
6.8 |
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Enurement |
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14 |
6.9 |
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Amendment |
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14 |
6.10 |
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Further Assurances |
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14 |
6.11 |
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Execution and Delivery |
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14 |
6.12 |
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Dispute Resolution |
|
14 |
Schedule A Cauchari-Olaroz Project
Schedule B FORM OF CERTIFICATE
LEGAL_1:50904366.3
|
-i- |
|
THIS DEFERRED PAYMENT AGREEMENT is dated this ● day of ●, 2018
BETWEEN:
SQM POTASIO S.A., a corporation organized under the laws of Chile,
(the “Vendor”)
- and -
GFL INTERNATIONAL CO., LTD., corporation organized under the laws of Hong Kong (“GFL International”), or its Wholly-Owned Subsidiary (“GFL Wholly Owned Subsidiary”) (either GFL International or GFL Wholly Owned Subsidiary being referred to herein as “GFL”)
- and, if GFL is not GFL International, and solely for purposes of Section 6.4 -
GFL INTERNATIONAL,
- and, solely for purposes of Section 2.2 -
MINERA EXAR S.A., a corporation organized under the laws of Argentina,
(the “Company”)
RECITALS:
A. |
On August ●, 2018, the Vendor entered into an agreement (the “Transaction Agreement”) with Lithium Americas Corp. (“LAC”), 2265866 Ontario Inc., the Company, GFL International and Sociedad Química y Minera De Chile S.A., pursuant to which the Vendor agreed to sell to GFL International Co., Ltd. or its Affiliate, all of the 211,525,416 common shares in the capital of the Company held by the Vendor, in consideration for a cash payment and, subject to certain conditions precedent being satisfied, a deferred payment of $50,000,000.00 (the “Deferred Payment Amount”). |
B. |
The Company owns the Project (as defined in this Agreement). |
C. |
The Vendor and GFL wish to enter this agreement to provide for the terms and conditions upon which the Deferred Payment Amount will be payable by GFL to the Vendor. |
D. |
This Deferred Payment Agreement is executed to further regulate and clarify the obligations assumed by the Parties under the Transaction Agreement. |
NOW THEREFORE, the Parties agree as follows:
LEGAL_1:50904367.3
- 2 -
The following terms shall have the following meanings when used in this Agreement:
|
(a) |
“Affiliate” of any Person means, at the time such determination is being made, any other Person controlling, controlled by or under common control with such first Person, in each case, whether directly or indirectly. |
|
(b) |
“Agreement” means this Deferred Payment Agreement, including all schedules, and all amendments or restatements, as permitted, and references to “Article” or “Section” mean the specified Article or Section of this Agreement. |
|
(c) |
“Annual Statement” has the meaning given in Section 2.2(a). |
|
(d) |
“Bankruptcy and Equity Exception” means any bankruptcy, insolvency, fraudulent transfer or conveyance, reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and any implied covenant of good faith and fair dealing. |
|
(e) |
“Business Day” means any day, other than a Saturday or Sunday, on which commercial banks located in New York (U.S.A.), Santiago (Chile), Toronto (Canada), Hong Kong and Buenos Aires (Argentina) are open for banking business during normal banking hours. |
|
(f) |
“Certificate” means a certificate of the Company, signed by the Chief Financial Officer of the Company (or, if no Chief Financial Officer has been appointed, the person performing functions similar to those of the Chief Financial Officer of the Company) on behalf of the Company, and not in his or her personal capacity, and without personal liability, substantially in the form attached as Schedule B. |
|
(g) |
“control” (including the terms “controlled by”, “controlling”, and “under common control with”) means the possession, directly or indirectly, of the power to direct, or cause the direction of, the management policies of a Person, whether through the ownership of voting securities, by contract or credit arrangement, as trustee or executor, or otherwise. |
|
(h) |
“Date of Declaration of Commercial Production” shall mean the date upon which the Company has sold and received payment for at least 10 metric tonnes of lithium carbonate equivalent produced from the Project. |
|
(i) |
“Deferred Payment Amount” has the meaning given to such term in the preamble. |
LEGAL_1:50904366.3
- 3 -
|
(j) |
“Encumbrances” means pledges, liens, charges, security interests, leases, title retention agreements, mortgages, options or adverse claims or encumbrances of any kind or character whatsoever. |
|
(k) |
“Governmental Authorities” means governments, regulatory authorities, governmental departments, agencies, commissions, bureaus, officials, ministers, Crown corporations, courts, bodies, boards, tribunals or dispute settlement panels or other law, rule or regulation-making organizations or entities: |
|
(i) |
having or purporting to have jurisdiction on behalf of any nation, province, territory or state or any other geographic or political subdivision of any of them; or |
|
(ii) |
exercising, or entitled or purporting to exercise any administrative, executive, judicial, legislative, policy, regulatory or taxing authority or power. |
|
(l) |
“LAC” has the meaning given to such term in the preamble. |
|
(m) |
“Laws” means applicable laws (including common law or civil law), statutes, by-laws, rules, regulations, Orders, ordinances, protocols, codes, guidelines, treaties, policies, notices, directions, decrees, judgments, awards or requirements, in each case of any Governmental Authority. |
|
(n) |
“Market Price” means the prevailing price for Product (expressed in US dollars per metric tonne) determined independently by a “big four” accounting firm that is not then an auditor of any of the Vendor, GFL or the Company (the “Accountant”) appointed by Company or its Shareholders and determined as the global average price during a Quarter of lithium products of comparable chemistry and quality invoiced by the Company during that Quarter under long term arm’s length contracts by major lithium producers (excluding sales from the Project), or under terms similar to those applicable to products invoiced by the Company in that Quarter, in either case based on relevant public and any private information available to the Accountant, determined at or before the end of each Quarter and communicated in writing to the Company, which writing shall include (i) the Market Price for the current Quarter; and (ii) if more than one lithium Product is invoiced by the Company during a Quarter, the Market Price for each such Product: and (iii) if applicable, the revised Market Price or Market Prices for each of the Quarters that are the immediate prior Quarter and the second immediate prior Quarter to the current Quarter. |
|
(o) |
“Orders” means orders, injunctions, judgments, administrative complaints, decrees, rulings, awards, assessments, directions, instructions, penalties or sanctions issued, filed or imposed by any Governmental Authority or arbitrator. |
|
(p) |
“Parties” means the Vendor and GFL collectively, and “Party” means any one of them. |
LEGAL_1:50904366.3
- 4 -
|
(q) |
“Payment Trigger” means, at any time following the Date of Declaration of Commercial Production, the first date upon which: |
|
(i) |
the Company has produced at least 25,000 metric tonnes of Product; and |
|
(ii) |
the Company has invoiced at least 25,000 metric tonnes of Qualifying Tonnage. |
|
(r) |
“Person” means any individual, sole proprietorship, partnership, firm, entity, unincorporated association, unincorporated syndicate, unincorporated organization, trust, body corporate, Governmental Authority, and where the context requires any of the foregoing when they are acting as trustee, executor, administrator or other legal representative. |
|
(s) |
“Product” means any lithium products, adjusted on a lithium carbonate-equivalent basis in accordance with industry standard methodology, extracted and produced from the Project. |
|
(t) |
“Project” means the Cauchari-Olaroz Project as described on Schedule A. |
|
(u) |
“Qualifying Tonnage” means each metric tonne of Product invoiced during a Quarter for which the Market Price was at least US$10,000. |
|
(v) |
“Quarter” means a fiscal quarter of the Company. |
|
(w) |
“Quarterly Statement” has the meaning given in Section 2.2(b). |
|
(x) |
“Subsidiary” means with respect to any Person, any other Person who, directly or indirectly, is controlled by such first Person. |
|
(y) |
“Vendor” has the meaning given to such term in the preamble. |
|
(z) |
“Wholly-Owned Subsidiary” means a Subsidiary of GFL International, |
In this Agreement:
|
(a) |
Currency – Unless otherwise specified, all references to money amounts are to lawful currency of the United States. |
|
(b) |
Definitions – Capitalized words or phrases that are defined anywhere in this Agreement, or defined by cross-reference in this Agreement to another agreement or other document, shall have the meanings so assigned to them wherever they are used in this Agreement. |
LEGAL_1:50904366.3
- 5 -
|
any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the Province of Ontario. The Parties hereby irrevocably and unconditionally agree that service of any process, summons, notice or document by registered mail to the addresses of the Parties set forth in this Agreement shall be effective service of process for any action, suit or proceeding brought against any Party in such court. |
|
(d) |
Headings – Headings of Articles and Sections are inserted for convenience of reference only and do not affect the construction or interpretation of this Agreement. |
|
(e) |
Including – Where the word “including” or “includes” is used in this Agreement, it means “including (or includes) without limitation”. |
|
(f) |
No Strict Construction – The language used in this Agreement is the language chosen by the Parties to express their mutual intent, and no rule of strict construction shall be applied against any Party. |
|
(g) |
Number and Gender – Unless the context otherwise requires, words importing the singular include the plural and vice versa and words importing gender include all genders. |
|
(h) |
Severability – If, in any jurisdiction, any provision of this Agreement or its application to any Party or circumstance is restricted, prohibited or unenforceable, such provision shall, as to such jurisdiction, be ineffective only to the extent of such restriction, prohibition or unenforceability without invalidating the remaining provisions of this Agreement and without affecting the validity or enforceability of such provision in any other jurisdiction or without affecting its application to other Parties or circumstances. |
|
(i) |
Statutory references – A reference to a statute includes all regulations and rules made pursuant to such statute and, unless otherwise specified, the provisions of any statute, regulation or rule which amends, supplements or supersedes any such statute, regulation or rule. |
|
(j) |
Time – Time is of the essence in the performance of the Parties’ respective obligations. |
|
(k) |
Time Periods – Unless otherwise specified, time periods within or following which any payment is to be made or act is to be done shall be calculated by excluding the day on which the period commences and including the day on which the period ends and by extending the period to the next Business Day following if the last day of the period is not a Business Day. |
Any reference to the knowledge of any Party means to the best of the knowledge, information and belief of such Party after reviewing all relevant records and making due inquiries regarding the relevant matter of all relevant directors, officers and employees of such Party.
LEGAL_1:50904366.3
- 6 -
This Agreement and the agreements and other documents required to be delivered pursuant to this Agreement, constitute the entire agreement between the Parties and set out all the covenants, promises, warranties, representations, conditions and agreements between the Parties in connection with the subject matter of this Agreement and supersede all prior agreements, understandings, negotiations and discussions, whether oral or written, pre-contractual or otherwise. There are no covenants, promises, warranties, representations, conditions, understandings or other agreements, whether oral or written, pre-contractual or otherwise, express, implied or collateral between the Parties in connection with the subject matter of this Agreement except as specifically set forth in this Agreement and any document required to be delivered pursuant to this Agreement.
The following schedules are integral parts of this Agreement:
Schedule |
Description |
Schedule A |
Cauchari-Olaroz Project |
Schedule B |
Form of Certificate |
|
(a) |
If, at any time following the execution of this Agreement, an Annual Statement or Quarterly Statement confirms that the Payment Trigger has been satisfied, GFL shall pay the Deferred Payment Amount to the Vendor within 30 days following the delivery by the Company of such Annual Statement or Quarterly Statement. |
|
(b) |
The Deferred Payment Amount shall be paid by GFL to the Vendor by wire transfer of immediately available funds of U.S. dollars to an account designated in writing by the Vendor or its assignee. |
LEGAL_1:50904366.3
- 7 -
|
(c) |
The Company shall maintain up-to-date and complete records of the production and sale of all Products. |
LEGAL_1:50904366.3
- 8 -
|
(the “Arbitrating Accountant”) for resolving the Dispute. If GFL, the Company and the Vendors are unable to agree on the appointment of an alternate Arbitrating Accountant within 10 Business Days of the end of such 30-day period, then the Vendor, the Company or GFL may apply to the Superior Court of Justice of Ontario pursuant to the Arbitration Act (Ontario) to have a globally recognized firm of independent chartered accountants with an Argentine Affiliate appointed as the Arbitrating Accountant for the purposes of this Section. The Arbitrating Accountant will not be the accountant or auditor for any of GFL, the Company or the Vendor, or any of their respective Affiliates in Argentina. |
This Agreement shall not be construed to create, expressly or by implication, a joint venture or partnership between GFL and the Vendor.
Subject to any shareholders agreement governing the Company, the Company shall have sole discretion and decision making authority (a) over any continued operation of, development of or investment in the Project, and (b) over when (if ever) and whether to pursue, or enter into, an agreement to dispose of and/or to commercialize or monetize in any particular manner the Project Business, and upon what terms and conditions and the Company shall not be required to take into account the obligations of GFL under this Agreement in making such determination.
Article 3
REPRESENTATIONS AND WARRANTIES OF GFL
GFL represents and warrants to the Vendor the matters set out below:
GFL is a corporation duly organized and validly existing under the laws of l.
GFL has all necessary corporate power, authority and capacity to enter into this Agreement and to carry out its obligations under this Agreement. The execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement has been duly
LEGAL_1:50904366.3
- 9 -
authorized by all necessary corporate action on the part of GFL. This Agreement has been duly executed and delivered by GFL and constitutes, assuming the due authorization, execution and delivery by the Vendor, a valid and binding obligation of GFL enforceable against it in accordance with its terms, subject to the Bankruptcy and Equity Exception.
GFL is not a party to, bound or affected by or subject to any:
|
(a) |
Contract; |
|
(b) |
charter or by-law; or |
|
(c) |
Laws or Governmental Authorizations; |
that (with or without notice or the passage of time or both) would be violated, breached by, or under which default would occur or an Encumbrance would be created, or in respect of which the obligations of GFL will increase or the rights or entitlements of GFL will decrease or any obligation on the part of GFL to give notice to any Governmental Authority will arise, as a result of the execution and delivery of, or the performance of obligations under, this Agreement, except as would not, individually or in the aggregate, adversely affect or reasonably be expected to prevent or significantly impede or materially delay the ability of GFL to consummate the payment of the Deferred Payment Amount.
|
(a) |
This Agreement may be terminated at any time by the written agreement of GFL and the Vendor. |
|
(b) |
The Agreement shall automatically terminate upon the payment by GFL to the Vendor of the Deferred Payment Amount. |
If this Agreement is terminated under Section 4.1, all further rights and obligations of the Parties under this Agreement shall terminate immediately except that the provisions of Article 1 [Interpretation], this Article 4 [Termination] and Article 6 [General] shall survive such termination and continue in full force and effect.
|
(a) |
If GFL enters into a transaction whereby all or substantially all of its undertaking, property and assets would become the property of any other Person or all of its |
LEGAL_1:50904366.3
- 10 -
|
shares are acquired by another Person in exchange for, in whole or in part, securities of such other Person, it shall ensure that such other Person or continuing entity (the “GFL Successor”) executes, prior to or contemporaneously with the consummation of such transaction, an agreement supplemental hereto and such other instruments (if any) as are reasonably necessary or advisable to evidence (i) the substantial preservation and non-impairment in any material respect of the rights of the Vendor hereunder with respect to GFL Successor, as if GFL Successor was GFL hereunder, and (ii) the assumption by GFL Successor of liability for all amounts payable and property deliverable hereunder and the covenant of such GFL Successor to pay and deliver or cause to be delivered the same and its agreement to observe and perform all the covenants and obligations of GFL under this Agreement. |
|
(b) |
If prior to the Deferred Payment Amount having been paid, GFL sells or otherwise disposes of all or a material portion of its direct or indirect interest in the Company (other than to an Affiliate of GFL), or the Company sells or ceases to own all or substantially all of its direct or indirect interest in the Project (other than a disposition to an Affiliate of the Company) and the buyer thereof does not agree to assume and fulfill GFL’s obligations with respect to this Agreement, then the full amount, in aggregate, of the entire Deferred Payment Amount shall be paid by GFL to the Vendor promptly following completion of the sale or disposition. |
The Vendor shall not, without the express written consent of GFL, which consent shall not be unreasonably withheld, disclose to any third party any information obtained pursuant to this Agreement which is not generally available to the public; provided, however, the Vendor may disclose data or information obtained under this Agreement without the consent of GFL: (i) if required for compliance with applicable laws, rules, regulations or orders of a governmental agency or stock exchange having jurisdiction over the Vendor or its parent or an Affiliate; (ii) to such of the Vendor’s consultants as have a need to know such information; or (iii) to a prospective lender to the Vendor or its Affiliate; provided that the Vendor shall first have been provided with a confidentiality agreement executed by such consultant, third party or lender, which agreement shall include the confidentiality provisions of this Section 6.1.
No waiver of any condition or other provisions, in whole or in part, shall constitute a waiver of any other condition or provision (whether or not similar) nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.
The Parties agree that irreparable damage for which monetary damages, even if available, may not be an adequate remedy, may occur in the event that the Parties do not perform their
LEGAL_1:50904366.3
- 11 -
obligations under the provisions of this Agreement (including failing to take such actions as are required of them hereunder to consummate this Agreement) in accordance with its specified terms or otherwise breach such provisions. The Parties acknowledge and agree (and further agree not to take any contrary position in any litigation concerning this Agreement) that (a) the Parties shall be entitled to an injunction or injunctions, specific performance, or other equitable relief, to prevent breaches or threatened breaches of this Agreement and to enforce specifically the terms and provisions hereof in the courts of the Province of Ontario without proof of damages or otherwise, and that such relief may be sought in addition to and shall not limit, diminish, or otherwise impair, any other remedy to which they are entitled under this Agreement, at law, in equity or otherwise, and (b) the right of specific enforcement is an integral part of the transactions contemplated by this Agreement and without that right, the Parties would not have entered into this Agreement. Each of the Parties agrees that it will not oppose the granting of an injunction, specific performance and other equitable relief on the basis that (A) the other Parties have an adequate remedy at law or (B) an award of specific performance is not an appropriate remedy for any reason at law or equity. The Parties acknowledge and agree that any Party seeking an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement shall not be required to provide any bond or other security in connection with any such order or injunction.
|
(a) |
If GFL International is not GFL it shall cause GFL to duly and punctually perform in full all of its obligations under this Agreement in accordance with the terms hereof, and GFL International hereby unconditionally and irrevocably guarantees the due and punctual performance by GFL of such obligations. The liability of GFL International contemplated by this Section 6.4 is absolute and unconditional, irrespective of the validity or enforceability of any of the obligations hereunder, the absence of any action to enforce the same or the recovery of any judgment against GFL, any action to enforce the same and shall be binding upon GFL International and its successors and assigns, and shall remain in full force and effect without regard to, and shall not be released, discharged or in any way affected by, any circumstance or condition whatsoever. |
|
(b) |
GFL International represents and warrants to the Vendor the matters set out below: |
|
(i) |
GFL International is a corporation existing under the laws of Hong Kong. |
|
(ii) |
GFL International has all necessary corporate power, authority and capacity to enter into this Agreement and to carry out its obligations under this Agreement. |
|
(iii) |
The execution and delivery of this Agreement and the consummation of this Agreement have been duly authorized by all necessary corporate action on the part of GFL International. |
|
(iv) |
This Agreement has been duly executed and delivered by GFL International and constitutes, assuming the due authorization, execution |
LEGAL_1:50904366.3
- 12 -
|
and delivery by each of the other Parties, a valid and binding obligation of GFL International enforceable against each of them in accordance with its terms, subject to the Bankruptcy and Equity Exception. |
Except as otherwise provided in this Agreement each Party shall pay all costs and expenses (including the fees and disbursements of legal counsel and other advisers) it incurs in connection with the negotiation, preparation and execution of this Agreement and the transactions contemplated by this Agreement. For the avoidance of doubt, none of such expenses will be for the account of the Company.
Any notice, consent or approval required or permitted to be given in connection with this Agreement (in this Section referred to as a “Notice”) shall be in writing and shall be sufficiently given if delivered (whether in person, by courier service or other personal method of delivery), or if transmitted by e-mail:
|
(a) |
in the case of a Notice to the Vendor at: |
SQM Potasio S.A.
El Trovador 4285
6th Floor
Santiago, Chile
Attention: |
Pablo Altimiras |
E-mail: |
[redacted – personal information] |
with a copy (which shall not constitute notice) to:
Winston & Strawn LLP
200 Park Avenue
New York, NY 10166
USA
Attention: |
J. Allen Miller |
E-mail: |
amiller@winston.com |
|
(b) |
in the case of a Notice to GFL or GFL International at: |
c/o GFL International Co., Ltd.
Room 2103, Tung Chiu Commercial Centre
193 Lockhart Road
Wan Chai, Hong Kong
Attention: |
Haibing Shen |
Email: |
[redacted – personal information] |
LEGAL_1:50904366.3
- 13 -
with copies (which shall not constitute notice)
Gowling WLG (Canada) LLP
550 Burrard Street, Suite 2300, Bentall 5
Vancouver, BC V6C 2B5 Canada
Attention: |
Linda J. Hogg |
E-mail: |
linda.hogg@gowlingwlg.com |
and to:
Lithium Americas Corp.
1150-355 Burrard Street
Vancouver, BC V6C 2G8
Canada
Attention: |
Tom Hodgson |
E-mail: |
[redacted – personal information] |
and to:
Osler, Hoskin & Harcourt LLP
Suite 6200, 1 First Canadian Place
Toronto, ON M5X 1B8
Canada
Attention: |
Emmanuel Pressman |
E-mail: |
epressman@osler.com |
Any Notice delivered or transmitted to a Party as provided above shall be deemed to have been given and received on the day it is delivered or transmitted, provided that it is delivered or transmitted on a Business Day prior to 5:00 p.m. local time in the place of delivery or receipt. However, if the Notice is delivered or transmitted after 5:00 p.m. local time or if such day is not a Business Day then the Notice shall be deemed to have been given and received on the next Business Day.
Any Party may, from time to time, change its address by giving Notice to the other Parties in accordance with the provisions of this Section.
|
(a) |
The Vendor shall be entitled, at any time and from time to time upon written Notice given prior to any such assignment, to assign its rights and obligations under this Agreement, in whole or in part, to any other Person. In such case, such assignee shall have and may exercise all the rights, and shall assume all of the obligations, of the Vendor under this Agreement. |
LEGAL_1:50904366.3
- 14 -
|
(b) |
GFL shall be entitled, at any time and from time to time upon written Notice given prior to any such assignment, to assign its rights and obligations under this Agreement, in whole or in part, to any Affiliate of GFL. In such case, such assignee shall have and may exercise all the rights, and shall assume all of the obligations, of GFL under this Agreement, provided that such assignment shall not relieve GFL of its obligations under this Agreement. |
|
(c) |
Except for such permitted assignments, no Party may assign this Agreement or any rights or obligations under this Agreement without the prior written consent of the other Parties. |
This Agreement enures to the benefit of and is binding upon the Parties and their respective successors (including any successor by reason of amalgamation of any Party) and permitted assigns.
No amendment, supplement, modification or waiver or termination of this Agreement and, unless otherwise specified, no consent or approval by any Party, is binding unless executed in writing by the Party to be bound thereby.
The Parties shall, with reasonable diligence, do all such things and provide all such reasonable assurances as may be required to consummate the transactions contemplated by this Agreement, and each Party shall provide such further documents or instruments required by any other Party as may be reasonably necessary or desirable to effect the purpose of this Agreement and carry out its provisions, whether before or after the Closing.
This Agreement may be executed by the Parties in counterparts and may be executed in Canada, Chile, China or Hong Kong, and delivered by facsimile or other electronic means and all such counterparts and facsimiles or electronic deliveries together constitute one and the same agreement.
|
(a) |
Any dispute, controversy or claim arising out of or in relation to or in connection with this Agreement, including without limitation any dispute as to the construction, validity, interpretation, enforceability or breach of this Agreement, and any dispute relating to any non-contractual obligations arising out of or in connection with it, shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by three (3) arbitrators appointed in accordance with the said Rules. |
LEGAL_1:50904366.3
- 15 -
|
(b) |
The seat of any arbitration commenced pursuant to this Section 6.12 shall be New York, New York. This Section 6.12 shall be governed by the United States Federal Arbitration Act (9 U.S.C. §§ 1-307). |
|
(c) |
The law applicable to the merits of an arbitration commenced pursuant to this Section 6.12 shall be the governing law specified in Section 1.2(c). |
|
(d) |
Unless the Parties agree differently, all proceedings conducted by the arbitral tribunal designated pursuant to this Section 6.12 will be held in New York, New York and conducted in the English language. |
|
(e) |
A decision of the arbitrators is final and binding without the right of appeal, except under the grounds for modification or non-enforcement provided by the United States Federal Arbitration Act (9 U.S.C. §§ 1-307). |
|
(f) |
The decision of the arbitrators shall be made in US dollars, converted to, and promptly paid free of any deduction or offset. Payment of this amount shall be made by wire transfer into a bank account designated in writing by the Party awarded judgment by the arbitration within five (5) Business Days after the award. |
|
(g) |
Judgment upon the award may be entered in any court having jurisdiction over the person or the assets of the Party owing the judgment in accordance with the terms of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“New York Convention”) or application may be made to such court for a judicial acceptance of the award and an order of enforcement, as the case may be, pursuant to the New York Convention. |
|
(h) |
The arbitrators shall take into account principles of legal privilege, such as those involving the confidentiality of communications between a lawyer and a client. |
|
(i) |
The Parties agree that any arbitral tribunal appointed hereunder may exercise jurisdiction with respect to this Agreement. |
(Signature pages follow)
LEGAL_1:50904366.3
- 16 -
IN WITNESS OF WHICH the Parties have executed this Agreement.
SQM POTASIO S.A. |
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By: |
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Name: |
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Title: |
By: |
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Name: |
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Title: |
GFL:
[GFL Wholly-Owned Subsidiary] |
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By: |
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Name: |
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Title: |
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or
GFL INTERNATIONAL CO., LTD. |
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By: |
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Name: |
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Title: |
MINERA EXAR S.A. |
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By: |
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Name: |
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Title: |
By: |
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Name: |
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Title: |
LEGAL_1:50904366.3
Schedule A
Cauchari-Olaroz Project
Nombre Derecho |
Expte. |
LA YAVEÑA |
27-R-00 |
LUISA |
61-I-98 |
ARTURO |
60-I-98 |
ANGELINA |
059-I-98 |
CAUCHARI ESTE |
1149-L-09 |
IRENE |
140-N-92 |
MINERVA |
37-V-02 |
CHIN CHIN CHULI II |
201-C-04 |
Hekaton |
150-M-92 |
Victoria I |
65-E-02 |
SAENZ PEÑA (GM Boroquimica) |
354-C-44 |
DEMASIA SAENZ PEÑA (GM Boroquimica) |
354-C-44 |
LINDA (GM Boroquimica) |
160-T-44 |
MARIA TERESA (GM Boroquimica) |
378-C-44 |
ARCHIBALD(GM Boroquimica) |
377-C-44 |
San Nicolas (GM Boroquimica) |
191—R-44 |
CLOTILDE |
121-D-44 // 1642-M-10 |
EDUARDO DANIEL |
120-M-44 |
CAUCHARI NORTE |
349-R-05 |
DELIA (GM Boroquimica) |
42-E-44 |
GRAZIELLA (GM Boroquimica) |
438-G-44 |
MONTES DE OCA (GM Boroquimica) |
340-C-44 |
JUANCITO (GM Boroquimica) |
339-C-44 |
UNION (GM Boroquimica) |
336-C-44 |
JULIA (GM Boroquimica) |
347-C-44 |
MASCOTA (GM Boroquimica) |
394-B-44 |
UNO (GM Boroquimica) |
345-C-44 |
TRES (GM Boroquimica) |
343-C-44 |
DOS (GM Boroquimica) |
344-C-44 |
CUATRO (GM Boroquimica) |
352-C-44 |
CINCO (GM Boroquimica) |
351-C-44 |
ZOILA (GM Boroquimica) |
341-C-44 |
SARMIENTO (GM Boroquimica) |
190-R-44 |
EL PORVENIR (GM Boroquimica) |
116-D-44 |
ALICIA (GM Boroquimica) |
389-B-44 |
CLARISA (GM Boroquimica) |
402-B-44 |
DEMASIA CLARISA (GM Boroquimica) |
402-B-44 |
LEGAL_1:50904367.3
- 2 -
INES (GM Boroquimica) |
220-S-44 |
MARIA CENTRAL (GM Boroquimica) |
43-E-44 |
MARIA ESTHER (GM Boroquimica) |
259-M-44 |
SAHARA (GM Boroquimica) |
117-D-44 |
PAULINA (GM Boroquimica) |
195-S-44 |
SIBERIA (GM Boroquimica) |
306-B-44 |
SAN ANTONIO |
72-M-99 |
TITO |
48-P-98 |
MIGUEL |
381-M-05 |
VERANO I |
299-M-04 |
CHICO |
1231-M-09 |
CHICO 3 |
1251-M-09 |
CHICO 4 |
1252-M-09 |
SULFA 6 |
70-R-98 |
SULFA 7 |
71-R-98 |
SULFA 8 |
72-R-98 |
SULFA 9 |
67-R-98 |
BECERRO DE ORO (Grupo Minero Osiris) |
264-M-44 |
OSIRIS (Grupo Minero Osiris) |
263-M-44 |
ALSINA (Grupo Minero Osiris) |
48-H-44 |
JORGE |
62-L-98 |
LA INUNDADA (GRUPO LA INUNDADA) |
669-G-56 |
Inundada Este (Grupo Minero La Inundada) |
721-G-57 |
Jujuy (Grupo Minero La Inundada) |
725-G-57 |
Inundada SuR (Grupo Minero La Inundada) |
789-G-57 |
Susques (Grupo Minero La Inundada) |
726-G-57 |
ALEGRIA I |
1337-M-09 |
ALEGRIA 2 |
1338-M-09 |
ALEGRIA 3 |
1339-M-09 |
ALEGRIA 4 |
1340-M-09 |
ALEGRIA 5 |
1341-M-09 |
ALEGRIA 7 |
1343-M-09 |
ALEGRIA 6 |
1342-M-09 |
CAUCHARI SUR |
1072-L-08 |
CAUCHAR OESTE |
1440-M-10 |
JULIO A. ROCA (Grupo Minero Boroquimica) |
444-P-44 |
ELENA (Grupo Minero Boroquimica) |
353-C-44 |
EMMA (Grupo Minero Boroquimica) |
350-C-44 |
URUGUAY (Grupo Minero Boroquimica) |
89-N-44 |
AVELLANEDA (Grupo Minero Boroquimica) |
365-V-44 |
BUENOS AIRES (Grupo Minero Boroquimica) |
122-D-44 |
MORENO (Grupo Minero Boroquimica) |
221-S-44 |
LEGAL_1:50904366.3
- 3 -
Payo III |
1517-M-10 |
Payo IV |
1518-M-10 |
Payo V |
1519-M-10 |
Payo VI |
1520-M-10 |
Payo VII |
1521-M-10 |
Payo VIII |
1522-M-10 |
Nelida |
56-C-95 |
Eduardo |
183-D-90 |
Maria Angela |
177-Z-03 |
LEGAL_1:50904366.3
[Date]
SQM Potasio S.A. Attention: Pablo Altimiras |
Winston & Strawn LLP 200 Park Avenue New York, NY 10166 USA Attention: J. Allen Miller |
[GFL Purchaser] Room 2103, Tung Chiu Commercial Centre Attention: Haibing Shen |
Gowling WLG (Canada) LLP 550 Burrard Street, Suite 2300, Bentall 5 Vancouver, BC V6C 2B5 Canada Attention: Linda J. Hogg
|
Lithium Americas Corp. Attention: Tom Hodgson |
Osler, Hoskin & Harcourt LLP Attention: Emmanuel Pressman |
Reference is made to the Deferred Payment Agreement dated ●, 2018 between SQM Potasio S.A., [GFL Purchaser], GFL International Co., Ltd. and Minera Exar S.A. (the “Deferred Payment Agreement”). Capitalized terms used in this Certificate but not otherwise defined herein have the meaning given in the Deferred Payment Agreement.
The undersigned in [his/her] capacity as [Chief Financial Officer][the person performing functions more similar to those of the Chief Financial Officer] of the Company, and not in his or her personal capacity, and without personal liability that, in respect of the [fiscal year ended December 31, 20●][Quarter ended ● ●, 20●] (the “Period”):
8.the Company invoiced ● metric tonnes of Product during the Period;
9.[For a Quarter] [the Market Price determined by the Accountant for the Quarter was $● [and the revised Market Prices for the Quarters ended ●, 20● and ●, 20●, were $● and $●] and attached is a copy of the Accountant’s calculation and any supporting materials received from the Accountant
LEGAL_1:50904367.3
- 2 -
10.[For an annual Certificate] [the Market Prices determined by the Accountant for the Quarters during the Period were:
Quarter |
Market Price |
Quarter ended March 31 |
$● |
Quarter ended June 30 |
$● |
Quarter ended September 30 |
$● |
Quarter ended December 31 |
$● |
[and the revised Market Prices for the Quarters ended ●, 20● and ●, 20●, were $● and $●], and attached is a copy of the Accountant’s calculation and any supporting materials received from the Accountant.
11.The Qualifying Tonnage for the Period was ● metric tonnes.
MINERA EXAR S.A. |
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By: |
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Name: |
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Title: |
LEGAL_1:50904366.3
Exhibit B
COMPANY-VENDOR AFFILIATE Services
[redacted – commercially sensitive information relating to interim period funding and activities]
LEGAL_1:50904367.3
Exhibit C
Form of Joint Release INSTRUCTION
JOINT ESCROW RELEASE NOTICE
To: |
BMO Trust Company |
Re: |
Escrow Agreement among Lithium Americas Corp., SQM Potasio S.A. (together, the “Parties”) and BMO Trust Company (the “Escrow Agent”) (the “Agreement”) |
The Parties hereby authorize and direct you forthwith upon receipt of this notice, to release the remaining balance of the Escrow Amount, including any accrued Interest thereon, in accordance with the following instructions:
[Wire instructions of LAC to be inserted.]
The foregoing direction is irrevocable and shall constitute your good and sufficient authority for making such payments as directed above.
All capitalized terms undefined herein have the meanings given to them in the Agreement.
DATED this ____day of ____________, 2018.
LITHIUM AMERICAS CORP. |
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Per: |
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Name: |
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Title: |
SQM POTASIO S.A. |
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Per: |
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Name: |
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Title: |
LEGAL_1:50904367.3
EXECUTION COPY
LITHIUM AMERICAS CORP.
- and -
GFL INTERNATIONAL CO., LTD.
SUPPLEMENTAL TRANSACTION AGREEMENT
AUGUST 13, 2018
LEGAL_1:50904364.3
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Page |
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4 |
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1.1 |
Definitions |
4 |
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1.2 |
Certain Rules of Interpretation |
8 |
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1.3 |
Knowledge |
9 |
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1.4 |
Entire Agreement |
9 |
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1.5 |
Schedules and Exhibits |
10 |
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ARTICLE 2 CLOSING TRANSACTIONS |
10 |
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2.1 |
Action by Parties |
10 |
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2.2 |
Irrevocable Capital Commitments |
11 |
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ARTICLE 3 CLOSING DELIVERIES |
11 |
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3.1 |
Closing Date Payments |
11 |
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3.2 |
GFL Closing Deliveries |
11 |
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3.3 |
LAC Closing Deliveries |
12 |
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ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF GFL |
12 |
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4.1 |
Status of GFL |
12 |
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4.2 |
Due Authorization and Enforceability of Obligations |
12 |
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4.3 |
Absence of Conflicts |
13 |
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4.4 |
Regulatory Approvals |
13 |
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4.5 |
Litigation |
13 |
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4.6 |
No Broker |
14 |
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ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF LAC |
14 |
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5.1 |
Status of LAC |
14 |
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5.2 |
Due Authorization and Enforceability of Obligations |
14 |
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5.3 |
Absence of Conflicts |
14 |
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5.4 |
Regulatory Approvals |
14 |
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5.5 |
Litigation |
15 |
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5.6 |
No Broker |
15 |
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ARTICLE 6 CONDITIONS IN FAVOUR OF LAC |
15 |
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6.1 |
Truth and Accuracy of Representations of GFL at the Closing Time |
15 |
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6.2 |
Performance of Obligations |
15 |
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6.3 |
No Proceedings |
16 |
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6.4 |
Transaction Agreement |
16 |
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ARTICLE 7 CONDITIONS IN FAVOUR OF GFL |
16 |
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7.1 |
Truth and Accuracy of Representations of LAC at the Closing Time |
16 |
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7.2 |
Performance of Obligations |
16 |
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7.3 |
No Proceedings |
16 |
LEGAL_1:50904364.3
Table of Contents
(continued)
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Page |
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7.4 |
Transaction Agreement |
16 |
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7.5 |
GFL-LAC Subordinated Loan Facility Shareholder Approval |
17 |
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ARTICLE 8 TERMINATION |
17 |
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8.1 |
Termination |
17 |
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8.2 |
Effect of Termination |
17 |
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ARTICLE 9 COVENANTS |
17 |
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9.1 |
Notice by the Parties of Certain Matters |
17 |
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9.2 |
Confidentiality |
17 |
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9.3 |
Actions to Satisfy Closing Conditions |
18 |
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9.4 |
Public Notices |
18 |
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9.5 |
GFL Regulatory Approval |
18 |
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9.6 |
GFL Shareholder Approval |
19 |
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ARTICLE 10 INDEMNIFICATION |
19 |
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10.1 |
Survival |
19 |
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10.2 |
Indemnification by GFL |
19 |
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10.3 |
Indemnification by LAC |
20 |
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10.4 |
Exclusive Remedy |
20 |
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ARTICLE 11 GENERAL, |
20 |
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11.1 |
Non-Waiver |
20 |
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11.2 |
Specific Performance |
20 |
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11.3 |
Expenses |
21 |
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11.4 |
Notices |
21 |
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11.5 |
Assignment |
22 |
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11.6 |
Enurement |
22 |
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11.7 |
Amendment |
22 |
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11.8 |
Further Assurances |
23 |
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11.9 |
Execution and Delivery |
23 |
EXHIBIT A FORM OF GFL-LAC SUBORDINATED LOAN FACILITY |
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EXHIBIT B SHAREHOLDERS AGREEMENT TERM SHEET |
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-ii- |
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LEGAL_1:50904364.3
THIS SUPPLEMENTAL TRANSACTION AGREEMENT is dated this 13th day of August, 2018
BETWEEN:
LITHIUM AMERICAS CORP., a corporation organized under the laws of British Columbia, Canada,
(“LAC”)
- and -
GFL INTERNATIONAL CO., LTD., a corporation organized under the laws of Hong Kong,
(“GFL”).
RECITALS:
B. |
SQM S.A. has performed certain services in connection with the Cauchari-Olaroz Project (as defined below) as described in Exhibit B (the “Company-Vendor Affiliate Services”), for an estimated aggregate amount of US$5,800,000.00, as of the date of this Agreement (the “Vendor Services Amount”). |
- 2 -
D. |
LAC, SQM, GFL, the Company, Sociedad Química y Minera de Chile S.A. and Jiangxi Ganfeng Lithium Co., Ltd. have entered into a transaction agreement (the “Transaction Agreement”) providing for the replacement of SQM with GFL as LAC’s joint venture partner in the Company through a series of transactions that will result in SQM receiving an aggregate of $87,500,000.00 in cash and the payment of the Deferred Payment Amount. |
D. |
Specifically, subject to any adjustments agreed by the parties, the Transaction Agreement provides for: |
|
(a) |
the purchase from SQM by GFL or its Affiliate of all of the Common Shares owned by SQM (the “Purchased Shares”) for consideration consisting of a basic payment of $36,000,000.00 in cash, a payment of a differential amount in accordance with the Transaction Agreement and the payment of the Deferred Payment Amount; |
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(b) |
the payment by GFL, directly or indirectly, of an aggregate amount of $87,500,000.00, of which: |
|
(i) |
an amount (currently estimated at approximately $36,000,000.00, subject to adjustment on the basis of a differential amount in accordance with the Transaction Agreement, which collectively are estimated to be approximately $37,000,000.00) will be used by GFL to purchase, directly or indirectly, from SQM, all of the Purchased Shares; |
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(ii) |
$23,300,000.00 will be used by GFL or its Affiliate to purchase, directly or indirectly, from SQM, all of the Company-SQM ICCs; and |
|
(iii) |
an amount (currently estimated at approximately $27,200,000.00) will be used by GFL to fund, directly or indirectly, the Company, to permit the Company to repay or pay, as the case may be, all of the Company-SQM Indebtedness and the Vendor Services Amount; |
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(c) |
the subsequent repayment and payment by the Company to SQM of all of the Company-SQM Indebtedness and Vendor Services Amount (currently estimated at approximately $27,200,000.00); and |
E. |
In connection with the transactions contemplated by the Transaction Agreement, subject to any adjustments agreed by the Parties, the Parties wish to effect the following transactions: |
|
(a) |
the formation by LAC of a Netherlands holding company (“NHC”); |
LEGAL_1:50904364.3
- 3 -
|
(b) |
the formation by GFL of a Netherlands holding company (“GHC”); |
|
(c) |
the investment (i) by LAC for shares and debt of NHC (the “LAC-NHC Investment”), in consideration for an amount currently estimated at $6,100,000.00 and (ii) by GFL for shares and debt of NHC (the “GFL-NHC Investment”) in consideration for an amount currently estimated to be $27,200,000.00, such that upon completion of such subscriptions, LAC will own 62.5% of the shares of NHC and GFL will own 37.5% of the shares of NHC; |
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(d) |
the investment by GFL for shares and debt of GHC in consideration for $25,000,000.00, plus the amounts required to permit GHC to complete the transactions contemplated by the Transaction Agreement (the “GFL-GHC Investment”), which is currently estimated to be approximately $85,300,000.00; |
|
(e) |
the entering into by NHC and the Company of a loan agreement in a form acceptable to LAC and GFL, each acting reasonably, providing for the advance at the Closing by NHC to the Company of a loan in the aggregate principal amount of $33,300,000.00 (the “NHC Loan Agreement”); |
|
(f) |
the entering into by GHC and the Company of a loan agreement in a form acceptable to LAC and GFL, each acting reasonably, providing for the advance at the Closing by GHC to the Company of a loan in the aggregate principal amount of $25,000,000.00 (the “GHC Loan Agreement”); |
|
(g) |
the repayment by the Company to LAC of the Company-LAC Indebtedness and LAC Capital Contribution Loans, plus accrued but unpaid interest thereon (currently anticipated to be an aggregate of $31,100,000); |
|
(h) |
the entering into by GFL and LAC of a subordinated loan facility in substantially the form attached as Exhibit A (the “GFL-LAC Subordinated Loan Facility”); and |
|
(i) |
the conversion of the Company-LAC ICCs, a portion of which (having a face value of $7,600,000.00 and an Argentine value of approximately $4,700,000.00 based on current exchange rates) will be converted into equity of the Company and a portion of which (currently having a face value of $15,700,000.00 and an Argentine value of approximately $9,700,000.00 based on current exchange rates) will be converted into loans owing by the Company. |
F. |
In connection with the closing of the transactions contemplated by the Transaction Agreement and the completion of the transactions contemplated by this Agreement (collectively, the “Transactions”), LAC, GFL and 226 intend to enter into a shareholders agreement with respect to the Company (the “Shareholders Agreement”). |
THEREFORE, the Parties agree as follows:
LEGAL_1:50904364.3
- 4 -
In addition to the other terms defined throughout this Agreement, which are listed above, the following terms shall have the following meanings when used in this Agreement:
|
(b) |
“Affiliate” of any Person means, at the time such determination is being made, any other Person controlling, controlled by or under common control with such first Person, in each case, whether directly or indirectly, and “control” and any derivation thereof means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities or otherwise. |
|
(e) |
“Business Day” means any day, other than a Saturday or Sunday, on which commercial banks located in New York, U.S.A., Santiago, Chile, Toronto, Canada, Hong Kong and Buenos Aires, Argentina are open for banking business during normal banking hours. |
|
(g) |
“Closing” has the meaning given to such term in the Transaction Agreement. |
LEGAL_1:50904364.3
- 5 -
|
(i) |
“Closing Time” has the meaning given to such term in the Transaction Agreement. |
|
(j) |
“Common Shares” has the meaning given to such term in the recitals. |
|
(k) |
“Company” has the meaning given to such term in the recitals. |
|
(l) |
“Company-LAC ICCs” has the meaning given to such term in the recitals. |
|
(m) |
“Company-LAC Indebtedness” has the meaning given to such term in the recitals. |
|
(n) |
“Vendor Services Amount” has the meaning given to such term in the recitals. |
|
(o) |
“Company-SQM ICCs” has the meaning given to such term in the recitals. |
|
(p) |
“Company-SQM Indebtedness” has the meaning given to such term in the recitals. |
|
(q) |
“Contracts” means contracts, licences, leases, agreements, obligations, promises, undertakings, understandings, arrangements, documents, commitments, entitlements or engagements to which the Company is a party or by which any of them are bound or under which the Company has, or will have, any liability or contingent liability (in each case, whether written or oral, express or implied), and includes any quotations, orders, proposals or tenders which remain open for acceptance and warranties and guarantees. |
|
(s) |
“Deferred Payment Amount” has the meaning given to such term in the Transaction Agreement. |
|
(t) |
“Encumbrances” means pledges, liens, charges, security interests, leases, title retention agreements, mortgages, options or adverse claims or encumbrances of any kind or character whatsoever. |
|
(u) |
“Existing Shareholders Agreement” means the shareholders agreement of the Corporation, by and among SQM, LAC, 226 and the Company, dated as of March 28, 2016. |
|
(v) |
“GFL” has the meaning given to such term in the preamble. |
|
(w) |
“GFL-GHC Investment” has the meaning given to such term in the recitals. |
LEGAL_1:50904364.3
- 6 -
|
(x) |
“GFL-GHC Investment Agreement” means a subscription agreement with respect to the GFL-GHC Investment, in form and substance satisfactory to the Parties, acting reasonably. |
|
(y) |
“GFL-LAC Subordinated Loan Facility” has the meaning given to such term in the recitals. |
|
(z) |
“GFL-NHC Investment” has the meaning given to such term in the recitals. |
|
(aa) |
“GFL-NHC Investment Agreement” means a subscription agreement with respect to the GFL-NHC Investment, in form and substance satisfactory to the Parties, acting reasonably. |
|
(bb) |
“GFL Shareholder Approval” means the approval of the shareholders of Jiangxi Ganfeng Lithium Co., Ltd. to the execution, delivery and performance under the GFL-LAC Subordinated Loan Facility, the loans contemplated by this Agreement and the Transaction Agreement and all future loans made to NHC or Minera Exar in accordance with the new Shareholders Agreement. |
|
(cc) |
“GHC” has the meaning given to such term in the recitals. |
|
(dd) |
“GHC Loan Agreement” has the meaning given to such term in the recitals. |
|
(ee) |
“Governmental Authorities” means governments, regulatory authorities, governmental departments, agencies, commissions, bureaus, officials, ministers, Crown corporations, courts, bodies, boards, tribunals or dispute settlement panels or other law, rule or regulation-making organizations or entities: |
|
(i) |
having or purporting to have jurisdiction on behalf of any nation, province, territory or state or any other geographic or political subdivision of any of them; or |
|
(ii) |
exercising, or entitled or purporting to exercise any administrative, executive, judicial, legislative, policy, regulatory or taxing authority or power. |
|
(ff) |
“Independent Person” means a Person other a Party or an Affiliate or Representative of a Party. |
|
(gg) |
“LAC” has the meaning given to such term in the preamble. |
|
(hh) |
“LAC Capital Contribution Loans” has the meaning given to such term in the recitals. |
|
(ii) |
“LAC-NHC Investment” has the meaning given to such term in the recitals. |
|
(jj) |
“LAC-NHC Investment Agreement” means a subscription agreement with respect to the LAC-NHC Investment, in form and substance satisfactory to the Parties, acting reasonably. |
LEGAL_1:50904364.3
- 7 -
|
(kk) |
“Laws” means applicable laws (including common law or civil law), statutes, by-laws, rules, regulations, Orders, ordinances, protocols, codes, guidelines, treaties, policies, notices, directions, decrees, judgments, awards or requirements, in each case of any Governmental Authority. |
|
(ll) |
“Loss” or “Losses” means all actually suffered or incurred and paid judgments, debts, liabilities, penalties, fines, expenses, costs, damages or losses, contingent or otherwise, whether liquidated or unliquidated, matured or unmatured, disputed or undisputed, contractual, legal or equitable, including loss of value, professional fees, including fees and disbursements of legal counsel on a full indemnity basis, and all costs incurred in investigating or pursuing any of the foregoing or any proceeding relating to any of the foregoing, excluding exemplary, aggravated or punitive damages, unless pursuant to third party Claims. |
|
(mm) |
“NHC” has the meaning given to such term in the recitals. |
|
(nn) |
“NHC Loan Agreement” has the meaning given to such term in the recitals. |
|
(oo) |
“Notice” has the meaning given to such term in Section 11.4. |
|
(pp) |
“Orders” means orders, injunctions, judgments, administrative complaints, decrees, rulings, awards, assessments, directions, instructions, penalties or sanctions issued, filed or imposed by any Governmental Authority or arbitrator. |
|
(ss) |
“Proceedings” means any investigations (including any audit or examination), actions, claims, suits or proceedings (public or private) by or before a Governmental Authority or any arbitrator. |
|
(tt) |
“Purchased Shares” has the meaning given to such term in the recitals. |
|
(uu) |
“Representative” means, with respect to any Person, any director, officer or employee of such Person and any agent, consultant, legal, accounting, financial or other advisor or other representative authorized by such Person to represent or act on behalf of such Person. |
|
(vv) |
“Shareholders Agreement” has the meaning given to such term in the recitals. |
|
(ww) |
“SQM” has the meaning given to such term in the preamble. |
|
(xx) |
“Transaction Agreement” has the meaning given to such term in the recitals. |
LEGAL_1:50904364.3
- 8 -
|
(yy) |
“Transactions” has the meaning given to such term in the recitals. |
In this Agreement:
|
(a) |
Currency – Unless otherwise specified, all references to money amounts are to lawful currency of the United States. |
|
(b) |
Definitions – Capitalized words or phrases that are defined anywhere in this Agreement, or defined by cross-reference in this Agreement to another agreement or other document, shall have the meanings so assigned to them wherever they are used in this Agreement. |
|
(c) |
Governing Law – This Agreement, and any dispute arising out of, relating to, or in connection with this Agreement shall be governed by and construed in accordance with the Laws of the Province of Ontario without giving effect to any choice or conflict of law provision or rule (whether of the Province of Ontario of any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the Province of Ontario. The Parties hereby irrevocably and unconditionally consent to and submit to the courts of the Province of Ontario for any actions, suits or proceedings arising out of or relating to this Agreement or the matters contemplated herein (and agree not to commence any action, suit or proceeding relating thereto except in such courts) and further agree that service of any process, summons, notice or document by registered mail to the addresses of the Parties set forth in this Agreement shall be effective service of process for any action, suit or proceeding brought against any Party in such court. The Parties hereby irrevocably and unconditionally waive any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the matters contemplated herein in the courts of the Province of Ontario and hereby further irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such action, suit or proceeding so brought has been brought in an inconvenient forum. |
|
(d) |
Headings – Headings of Articles and Sections are inserted for convenience of reference only and do not affect the construction or interpretation of this Agreement. |
|
(e) |
Including – Where the word “including” or “includes” is used in this Agreement, it means “including (or includes) without limitation”. |
|
(f) |
No Strict Construction – The language used in this Agreement is the language chosen by the Parties to express their mutual intent, and no rule of strict construction shall be applied against any Party. |
|
(g) |
Number and Gender – Unless the context otherwise requires, words importing the singular include the plural and vice versa and words importing gender include all genders. |
LEGAL_1:50904364.3
- 9 -
|
(h) |
Severability – If, in any jurisdiction, any provision of this Agreement or its application to any Party or circumstance is restricted, prohibited or unenforceable, such provision shall, as to such jurisdiction, be ineffective only to the extent of such restriction, prohibition or unenforceability without invalidating the remaining provisions of this Agreement and without affecting the validity or enforceability of such provision in any other jurisdiction or without affecting its application to other Parties or circumstances. |
|
(i) |
Statutory references – A reference to a statute includes all regulations and rules made pursuant to such statute and, unless otherwise specified, the provisions of any statute, regulation or rule which amends, supplements or supersedes any such statute, regulation or rule. |
|
(j) |
Time – Time is of the essence in the performance of the Parties’ respective obligations. |
|
(k) |
Time Periods – Unless otherwise specified, time periods within or following which any payment is to be made or act is to be done shall be calculated by excluding the day on which the period commences and including the day on which the period ends and by extending the period to the next Business Day following if the last day of the period is not a Business Day. |
Any reference to the knowledge of any Party means to the best of the knowledge, information and belief of such Party after reviewing all relevant records and making due inquiries regarding the relevant matter of all relevant directors, officers and employees of such Party.
This Agreement and the agreements and other documents required to be delivered pursuant to this Agreement, together with the Transaction Agreement, constitute the entire agreement between the Parties and set out all the covenants, promises, warranties, representations, conditions and agreements between the Parties in connection with the subject matter of this Agreement and supersede all prior agreements, understandings, negotiations and discussions, whether oral or written, pre-contractual or otherwise. There are no covenants, promises, warranties, representations, conditions, understandings or other agreements, whether oral or written, pre-contractual or otherwise, express, implied or collateral between the Parties in connection with the subject matter of this Agreement except as specifically set forth in this Agreement, any document required to be delivered pursuant to this Agreement, or the Transaction Agreement.
LEGAL_1:50904364.3
- 10 -
|
(a) |
The schedules and exhibits to this Agreement, listed below, are an integral part of this Agreement: |
Schedule/Exhibit |
Description |
Exhibit A |
Form of GFL-LAC Subordinated Loan Facility |
Exhibit B |
Shareholders Agreement Term Sheet |
|
|
On the terms and subject to the conditions of this Agreement:
|
(a) |
as promptly as practicable following the execution and delivery of this Agreement: |
|
(i) |
LAC shall cause NHC to be formed on terms reasonably acceptable to GFL and shall cause NHC to comply with the terms of this Agreement applicable to NHC. |
|
(ii) |
GFL shall cause GHC to be formed on terms reasonably acceptable to LAC and shall cause GHC to comply with the terms of this Agreement applicable to GHC. |
|
(b) |
at the Closing: |
|
(ii) |
GFL and NHC shall complete the GFL-NHC Investment; |
|
(iii) |
GFL and GHC shall complete the GFL-GHC Investment; |
|
(iv) |
NHC shall enter into the NHC Loan Agreement with the Company; |
|
(v) |
GHC shall enter into the GHC Loan Agreement with the Company; |
|
(vi) |
GFL and LAC shall enter into the GFL-LAC Subordinated Loan Facility; |
|
(vii) |
LAC and GFL shall enter into, and LAC shall cause 226 to enter into, the Shareholders Agreement; and |
|
(viii) |
LAC and GFL shall, and LAC shall cause 226 to, cause the Company to repay to LAC the LAC Capital Contribution Loans and the Company-LAC Indebtedness. |
LEGAL_1:50904364.3
- 11 -
Following the Closing and the closing of the transactions contemplated by the Transaction Agreement, the Irrevocable Capital Commitments purchased by GFL from SQM shall be converted into equity on a basis that does not alter the proportion of economic or voting interests in the Company as between the LAC and its Affiliates (62.5%) and GFL and its Affiliates (37.5%).
At or prior to the Closing, subject to any adjustments agreed by the Parties and the parties to the Transaction Agreement:
|
(a) |
LAC shall pay to NHC by wire transfer of immediately available funds to an account designated by NHC the amount contemplated by the LAC-NHC Investment. |
|
(b) |
GFL shall pay to NHC by wire transfer of immediately available funds to an account designated by NHC the amount contemplated by the GFL-NHC Investment. |
|
(c) |
GFL shall pay to GHC by wire transfer of immediately available funds to an account designated by GHC the amount contemplated by the GFL-GHC Investment. |
|
(d) |
LAC and GFL shall, and LAC shall cause 226 to, cause the Company to repay to LAC, by wire transfer of immediately available funds to an account designated by LAC, all outstanding amounts owing under the LAC Capital Contribution Loans and the Company-LAC Indebtedness (including any accrued and payable interest thereon). |
The Parties acknowledge and agree that the foregoing payments may be satisfied by way of direction, if determined to be advisable pursuant to one or more agreed direction agreements.
At the Closing, GFL shall deliver or cause to be delivered to LAC and, if applicable, NHC or GHC:
|
(b) |
the GFL-GHC Investment Agreement executed by GFL; |
|
(c) |
the GFL-LAC Subordinated Loan Facility executed by GFL; |
|
(d) |
the NHC Loan Agreement executed by NHC; |
LEGAL_1:50904364.3
- 12 -
|
(e) |
the GHC Loan Agreement executed by GHC; |
|
(f) |
the Shareholders Agreement executed by GFL; |
|
(g) |
a certificate from a senior officer of GFL confirming the satisfaction of the conditions set forth in Sections 6.1 and 6.2; and |
|
(h) |
all such other documentation or evidence as is necessary to establish the consummation of the Transactions and the taking of all required corporate proceedings by GFL (whether on its own behalf or in its capacity as a direct or indirect shareholder of NHC, GHC or the Company) in connection with the Transactions. |
At the Closing, LAC shall deliver or cause to be delivered to GFL and, if applicable, NHC or GHC:
|
(a) |
the LAC-NHC Investment Agreement executed by LAC; |
|
(b) |
the GFL-LAC Subordinated Loan Facility executed by LAC; |
|
(c) |
the NHC Loan Agreement executed by NHC; |
|
(d) |
the Shareholders Agreement executed by LAC and 226; |
|
(e) |
a certificate from a senior officer of LAC confirming the satisfaction of the conditions set forth in Sections 7.1 and 7.2; and |
|
(f) |
all such other documentation or evidence as is necessary to establish the consummation of the Transactions and the taking of all required corporate proceedings by LAC (whether on its own behalf or in its capacity as a direct or indirect shareholder of NHC or the Company) in connection with the Transactions. |
Article 4
REPRESENTATIONS AND WARRANTIES OF GFL
GFL represents and warrants to LAC the matters set out below.
GFL is a corporation existing under the laws of Hong Kong.
GFL has all necessary corporate power, authority and capacity to enter into this Agreement and to carry out its obligations under this Agreement. The execution and delivery of this Agreement and the consummation of the Transactions have been duly authorized by all necessary corporate action on the part of GFL, except that the execution, delivery and performance by GFL of the
LEGAL_1:50904364.3
- 13 -
GFL-LAC Subordinated Loan Facility and certain investments contemplated by this Agreement are subject to the receipt of GFL Shareholder Approval. This Agreement has been duly executed and delivered by each of GFL and constitutes, assuming the due authorization, execution and delivery by each of the other Parties, a valid and binding obligation of GFL enforceable against it in accordance with its terms, subject to the Bankruptcy and Equity Exception.
GFL is not a party to, bound or affected by or subject to any:
|
(a) |
Contract; |
|
(b) |
charter or by-law; or |
|
(c) |
Laws or Governmental Authorizations; |
that (with or without notice or the passage of time or both) would be violated, breached by, or under which default would occur or an Encumbrance would be created, or in respect of which the obligations of GFL will increase or the rights or entitlements of GFL will decrease or any obligation on the part of GFL to give notice to any Governmental Authority will arise, as a result of the execution and delivery of, or the performance of obligations under, this Agreement, except as would not, individually or in the aggregate, adversely affect or reasonably be expected to prevent or significantly impede or materially delay the ability of GFL to enter into this Agreement or the completion of any of the Transactions.
Except for overseas investment project filings with the National Development and Reform Commission of the People’s Republic of China and with the Ministry of Commerce of the People’s Republic of China, no approval, Order, consent of, or filing with, any Governmental Authority is required on the part of GFL in connection with the execution, delivery and performance of this Agreement or the performance of GFL’s obligations under this Agreement.
There are no Claims or Proceedings, including appeals and applications for review, in progress or pending, or, to the knowledge of GFL, threatened against or affecting GFL before any Governmental Authority, which, if determined adversely to GFL, would,
|
(a) |
enjoin, restrict or prohibit the transfer of all or any part of the Purchased Shares as contemplated by this Agreement, or |
|
(b) |
delay, restrict or prevent GFL from fulfilling any of its obligations set out in this Agreement or arising therefrom, and GFL has no knowledge of any existing ground on which any such action, suit, litigation or proceeding might be commenced with any reasonable likelihood of success. |
LEGAL_1:50904364.3
- 14 -
No broker, investment banker, financial advisor or other Person is entitled to any broker’s, finder’s or financial advisor’s fee or commission in connection with any of the Transactions based upon arrangements made by or on behalf of GFL, other than any fees and expenses which are payable exclusively by GFL (and, for certainty, not LAC or the Company).
Article 5
REPRESENTATIONS AND WARRANTIES OF LAC
LAC represents and warrants to GFL the matters set out below:
LAC is a corporation existing under the laws of British Columbia, Canada.
LAC has all necessary corporate power, authority and capacity to enter into this Agreement and to carry out its obligations under this Agreement. The execution and delivery of this Agreement and the consummation of the Transactions have been duly authorized by all necessary corporate action on the part of LAC. This Agreement has been duly executed and delivered by LAC and constitutes, assuming the due authorization, execution and delivery by each of the other Parties, a valid and binding obligation of LAC enforceable against it in accordance with its terms, subject to the Bankruptcy and Equity Exception.
LAC is not a party to, bound or affected by or subject to any:
|
(a) |
Contract; |
|
(b) |
charter or by-law; or |
|
(c) |
Laws or Governmental Authorizations; |
that (with or without notice or the passage of time or both) would be violated, breached by, or under which default would occur or an Encumbrance would be created, or in respect of which the obligations of LAC will increase or the rights or entitlements of LAC will decrease or any obligation on the part of LAC to give notice to any Governmental Authority will arise, as a result of the execution and delivery of, or the performance of obligations under, this Agreement, except as would not, individually or in the aggregate, adversely affect or reasonably be expected to prevent or significantly impede or materially delay the ability of LAC to enter into this Agreement or the completion of any of the Transactions.
No approval, Order, consent of, or filing with, any Governmental Authority is required on the part of LAC in connection with the execution, delivery and performance of this Agreement or the performance of LAC’s obligations under this Agreement.
LEGAL_1:50904364.3
- 15 -
There are no Claims or Proceedings, including appeals and applications for review, in progress or pending, or, to the knowledge of LAC, threatened against or affecting LAC before any Governmental Authority, which, if determined adversely to LAC, would,
|
(a) |
enjoin, restrict or prohibit the transfer of all or any part of the Purchased Shares as contemplated by this Agreement, or |
|
(b) |
delay, restrict or prevent LAC from fulfilling any of its obligations set out in this Agreement or arising therefrom, and LAC has no knowledge of any existing ground on which any such action, suit, litigation or proceeding might be commenced with any reasonable likelihood of success. |
No broker, investment banker, financial advisor or other Person is entitled to any broker’s, finder’s or financial advisor’s fee or commission in connection with any of the Transactions based upon arrangements made by or on behalf of LAC, other than any fees and expenses which are payable exclusively by LAC (and, for certainty, not GFL or the Company).
Article 6
CONDITIONS IN FAVOUR OF LAC
The obligation of LAC to complete the Transactions is subject to the satisfaction of, or compliance with, at or before the Closing Time, each of the following conditions precedent (each of which is acknowledged to be inserted for the exclusive benefit of LAC and may be waived by LAC in whole or in part).
All of the representations and warranties of GFL made in or pursuant to this Agreement shall be true and correct in all material respects as at the Closing Time (other than representations and warranties that are made as of a specific date, which representations and warranties shall have been true and correct as of such date) and with the same effect as if made at and as of the Closing Time (except as such representations and warranties may be affected by the occurrence of events or transactions expressly contemplated and permitted by this Agreement) and LAC shall have received a certificate from a senior officer of GFL confirming the foregoing on behalf of GFL.
GFL shall have performed or complied in all material respects with all of its obligations and covenants under this Agreement and LAC shall have received a certificate from a senior officer of GFL confirming on behalf of GFL such performance or compliance.
LEGAL_1:50904364.3
- 16 -
There shall not be in effect on the Closing Date any Order or Law restraining, enjoining or otherwise prohibiting or making illegal, and there shall be no pending or threatened Claim of a Governmental Authority which if successful would reasonably be expected to restrain, enjoin or otherwise prohibit, the consummation of the Transactions.
The transactions contemplated by the Transaction Agreement shall have been consummated or be consummated concurrently, in accordance with their respective terms.
Article 7
Conditions in Favour of GFL
The obligations of GFL to complete the Transactions is subject to the satisfaction of or compliance with, at or before the Closing Time, each of the following conditions precedent (each of which is acknowledged to be inserted for the exclusive benefit of GFL and may be waived by them in whole or in part).
All of the representations and warranties of LAC made in or pursuant to this Agreement shall be true and correct in all material respects as at the Closing Time (other than representations and warranties that are made as of a specific date, which representations and warranties shall have been true and correct as of such date) and with the same effect as if made at and as of the Closing Time (except as such representations and warranties may be affected by the occurrence of events or transactions expressly contemplated and permitted by this Agreement) and GFL shall have received a certificate from a senior officer of LAC confirming the foregoing on behalf of LAC.
LAC shall have performed or complied with in all material respects all of its obligations and covenants under this Agreement and GFL shall have received a certificate from a senior officer of LAC confirming on behalf of LAC such performance or compliance.
There shall not be in effect on the Closing Date any Order or Law restraining, enjoining or otherwise prohibiting or making illegal, and there shall be no pending or threatened Claim of a Governmental Authority which if successful would reasonably be expected to restrain, enjoin or otherwise prohibit, the consummation of the Transactions.
The transactions contemplated by the Transaction Agreement shall have been consummated or be consummated concurrently, in accordance with their respective terms.
LEGAL_1:50904364.3
- 17 -
In addition to the other conditions set forth in this Article 7, the provision of the loan under the GFL-LAC Subordinated Loan Facility (but, for certainty, no other Transactions contemplated by this Agreement) is subject to the receipt of GFL Shareholder Approval, provided that, if GFL Shareholder Approval has not been obtained on the Closing Date, GFL shall consummate the Transactions contemplated by this Agreement and the Transaction Agreement (other than the execution and delivery of the GFL-LAC Subordinated Loan Facility) and shall use best efforts to continue to seek until obtained GFL Shareholder Approval.
This Agreement shall terminate automatically upon termination of the Transaction Agreement and may be terminated on or prior to the Closing Date by the written agreement of LAC and GFL.
If this Agreement is terminated under Section 8.1, all further rights and obligations of the Parties under this Agreement shall terminate immediately (except in respect of any breach arising prior to such termination), except that the provisions of Article 1 [Interpretation], this Article 8 [Termination], Section 9.2 [Confidentiality] and Article 11 [General] shall survive such termination and continue in full force and effect.
Prior to the Closing, LAC shall promptly provide to GFL a copy of any notice received or delivered by LAC from or to another party to the Transaction Agreement pursuant to the terms of the Transaction Agreement.
From and after the Closing, GFL shall, and shall cause each of its Affiliates and each of its and their respective Representatives to, keep confidential all information relating to LAC or the Company (including all information constituting “Confidential Information” as such term is defined in the Existing Shareholders Agreement), other than information which:
|
(a) |
is part of the public domain; |
|
(b) |
becomes part of the public domain other than as a result of a breach of these provisions by GFL; |
LEGAL_1:50904364.3
- 18 -
|
(c) |
was received in good faith after Closing from an Independent Person who was lawfully in possession of such information free of any obligation of confidentiality; or |
|
(d) |
GFL or any of its Affiliates is required to disclose pursuant to applicable Laws or stock exchange rules. |
During the period from the date hereof until the earlier of the Closing Time and the time that this Agreement is terminated in accordance with its terms, and subject to the terms and conditions of this Agreement:
|
(a) |
each of the Parties shall use commercially reasonable efforts to take or cause to be taken all actions and to do or cause to be done all things necessary under the terms of this Agreement or under applicable Laws to cause the satisfaction of the conditions set forth in Article 6 and Article 7 and to consummate the Transactions, and the Parties shall reasonably cooperate with each other with respect to each of the foregoing; and |
|
(b) |
each of the Parties shall not take any action, shall refrain from taking any action, and shall not permit any action to be taken or not taken, which is inconsistent with this Agreement or which would reasonably be expected to, individually or in the aggregate, materially impede or materially delay the consummation of the Transactions. |
|
(c) |
The Parties shall proceed forthwith and in good faith, and will use commercially reasonable efforts in respect thereof, to negotiate and finalize a mutually acceptable Shareholders Agreement prior to Closing, and agree to execute the Shareholders Agreement if, as and when Closing occurs. The Shareholders Agreement will incorporate the terms and conditions set forth in Exhibit B and such other terms and conditions as may be agreed by the Parties. |
The Parties shall jointly plan and co-ordinate any public notices, press releases, and any other publicity concerning the Transactions, and no Party shall disseminate any such public notices, public releases or other publicity without the prior written approval of the other Party, such approval not to be unreasonably withheld, conditioned or delayed, unless such disclosure is required to meet timely disclosure obligations of any Party under applicable Laws or stock exchange rules in circumstances where prior consultation with the other Party is not practicable and a copy of such disclosure is provided to the other Party as soon as is reasonably practicable.
GFL and Jiangxi Ganfeng Lithium Co., Ltd. shall, as promptly as practicable after the date of this Agreement make the overseas investment project filings with the National Development and Reform Commission of the People’s Republic of China and with the Ministry of Commerce of the People’s Republic of China.
LEGAL_1:50904364.3
- 19 -
|
(a) |
GFL and Jiangxi Ganfeng Lithium Co., Ltd. shall, as promptly as practicable after the date of this Agreement, seek, and continue to use best efforts to seek until obtained, the GFL Shareholder Approval. |
|
(b) |
If GFL Shareholder Approval is not obtained: |
|
(i) |
in lieu of the GFL-LAC Subordinated Loan Facility, GFL shall sell, transfer, convey and assign to LAC an aggregate 10% off-take interest from the Company (of its total 37.5%) for no consideration; |
|
(ii) |
in lieu of the funding for the GHC Loan Agreement being advanced by way of indebtedness, GHC shall contribute the $25,000,000 to be provided under the GHC Loan Agreement to the Company as an equity investment, such investment to be made in a manner that does not alter the proportion of economic or voting interests in the Company as between the LAC Group and the GFL Group; and |
|
(iii) |
any other funding proposed to be made by the GFL Group to the Company or NHC shall be made in a manner that does not alter the proportion of economic or voting interests in the Company as between the LAC Group and the GFL Group. |
All representations, warranties and covenants contained in or made pursuant to this Agreement on the part of each of the Parties shall survive and shall not merge following any or all of the following:
|
(a) |
the Closing; and |
|
(b) |
the completion of any or all of the Transactions. |
GFL shall indemnify and save harmless LAC from and against all Losses, whether or not arising due to third party Claims, which LAC may suffer or incur, directly or indirectly, as a result of or in connection with or arising from:
|
(a) |
any non-fulfilment or breach of any covenant or agreement on the part of GFL contained in or made pursuant to this Agreement; and |
|
(b) |
any misrepresentation or any incorrectness in or breach of any representation or warranty of GFL contained in or made pursuant to this Agreement. |
LEGAL_1:50904364.3
- 20 -
LAC shall indemnify and save harmless GFL from and against all Losses, whether or not arising due to third party Claims, which GFL may suffer or incur, directly or indirectly, as a result of or in connection with or arising from:
|
(a) |
any non-fulfilment or breach of any covenant or agreement on the part of LAC contained in or made pursuant to this Agreement; and |
|
(b) |
any misrepresentation or any incorrectness in or breach of any representation or warranty of LAC contained in or made pursuant to this Agreement. |
From and after Closing and subject to Section 11.2, the rights of indemnity set forth in this Article 10 are the sole and exclusive remedy of each Party in respect of any misrepresentation, incorrectness in or breach of any representation or warranty, or breach of covenant, by the other Party under this Agreement. Accordingly, the Parties waive, from and after the Closing, any and all rights, remedies and claims that one Party may have against the other, whether at law, under any statute or in equity, or otherwise, directly or indirectly, relating to the provisions of this Agreement or the Transactions other than as expressly provided for in this Article 10, other than those arising with respect to any fraud or wilful misconduct and other than those provided for in other agreements or certificates delivered pursuant to this Agreement. The Parties agree that if any Claim for indemnification is made by one Party in accordance with Section 10.2 or Section 10.3 as the case may be, and there has been a refusal by the other Party to make payment or otherwise provide satisfaction in respect of such Losses, then a legal proceeding is the appropriate means to seek a remedy for such refusal. This Article 10 shall remain in full force and effect in all circumstances and shall not be terminated by any breach (fundamental, negligent or otherwise) by any Party of its representations, warranties or covenants under this Agreement or under any Closing document or by any termination or rescission of this Agreement by any Party.
No waiver of any condition or other provisions, in whole or in part, shall constitute a waiver of any other condition or provision (whether or not similar) nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.
Notwithstanding Section 10.4, the Parties agree that irreparable damage for which monetary damages, even if available, would not be an adequate remedy, would occur in the event that the Parties do not perform their obligations under the provisions of this Agreement (including failing to take such actions as are required of them hereunder to consummate this Agreement) in accordance with its specified terms or otherwise breach such provisions. The Parties
LEGAL_1:50904364.3
- 21 -
acknowledge and agree (and further agree not to take any contrary position in any litigation concerning this Agreement) that (a) the Parties shall be entitled to an injunction or injunctions, specific performance, or other equitable relief, to prevent breaches or threatened breaches of this Agreement and to enforce specifically the terms and provisions hereof in the courts of the Province of Ontario without proof of damages or otherwise, and that such relief may be sought in addition to and shall not limit, diminish, or otherwise impair, any other remedy to which they are entitled under this Agreement, at law, in equity or otherwise, (b) the provisions set forth in Article 8 are not intended to and do not adequately compensate for the harm that would result from a breach of this Agreement and shall not be construed to limit, diminish or otherwise impair in any respect any Party’s right to specific enforcement, and (c) the right of specific enforcement is an integral part of the transactions contemplated by this Agreement and without that right, the Parties would not have entered into this Agreement. Each of the Parties agrees that it will not oppose the granting of an injunction, specific performance and other equitable relief on the basis that (A) the other Parties have an adequate remedy at law or (B) an award of specific performance is not an appropriate remedy for any reason at law or equity. The Parties acknowledge and agree that any Party seeking an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement shall not be required to provide any bond or other security in connection with any such order or injunction.
Except as otherwise provided in this Agreement each Party shall pay all costs and expenses (including the fees and disbursements of legal counsel and other advisers) it incurs in connection with the negotiation, preparation and execution of this Agreement and the Transactions. For the avoidance of doubt, none of such expenses will be for the account of the Company.
Any notice, consent or approval required or permitted to be given in connection with this Agreement (in this Section referred to as a “Notice”) shall be in writing and shall be sufficiently given if delivered (whether in person, by courier service or other personal method of delivery), or if transmitted by e-mail:
|
(a) |
in the case of a Notice to GFL at: |
GFL International Co., Ltd.
Room 2103, Tung Chiu Commercial Centre
193 Lockhart Road
Wan Chai, Hong Kong
Attention:Haibing Shen
Email: [redacted – personal information]
with copies (which shall not constitute notice)
Gowling WLG (Canada) LLP
550 Burrard Street, Suite 2300, Bentall 5
Vancouver, BC V6C 2B5 Canada
LEGAL_1:50904364.3
- 22 -
Attention:Linda J. Hogg
E-mail:linda.hogg@gowlingwlg.com
|
(b) |
in the case of a Notice to LAC at: |
Lithium Americas Corp.
1150-355 Burrard Street
Vancouver, BC V6C 2G8
Canada
Attention:Tom Hodgson
E-mail:[redacted – personal information]
with a copy (which shall not constitute notice) to:
Osler, Hoskin & Harcourt LLP
Suite 6200, 1 First Canadian Place
Toronto, ON M5X 1B8
Canada
Attention:Emmanuel Pressman
E-mail:epressman@osler.com
Any Notice delivered or transmitted to a Party as provided above shall be deemed to have been given and received on the day it is delivered or transmitted, provided that it is delivered or transmitted on a Business Day prior to 5:00 p.m. local time in the place of delivery or receipt. However, if the Notice is delivered or transmitted after 5:00 p.m. local time or if such day is not a Business Day then the Notice shall be deemed to have been given and received on the next Business Day.
Any Party may, from time to time, change its address by giving Notice to the other Parties in accordance with the provisions of this Section.
No Party may assign this Agreement or any rights or obligations under this Agreement without the prior written consent of the other Party.
This Agreement enures to the benefit of and is binding upon the Parties and their respective successors (including any successor by reason of amalgamation of any Party) and permitted assigns.
No amendment, supplement, modification or waiver or termination of this Agreement and, unless otherwise specified, no consent or approval by any Party, is binding unless executed in writing by the Party to be bound thereby.
LEGAL_1:50904364.3
- 23 -
The Parties shall, with reasonable diligence, do all such things and provide all such reasonable assurances as may be required to consummate the Transactions, and each Party shall provide such further documents or instruments required by any other Party as may be reasonably necessary or desirable to effect the purpose of this Agreement and carry out its provisions, whether before or after the Closing.
This Agreement may be executed by the Parties in counterparts and may be executed and delivered by facsimile or other electronic means and all such counterparts and facsimiles or other electronic deliveries together constitute one and the same agreement.
(Signature page follows)
LEGAL_1:50904364.3
IN WITNESS OF WHICH the Parties have executed this Agreement.
|
|
GFL INTERNATIONAL CO., LTD. |
|
By: |
“Wang Xiaoshen” |
||
|
Name: Wang Xiaoshen |
||
|
Title: Executive Director |
Signature Page to Supplemental Transaction Agreement
LEGAL_1:50904364.3
|
|
LITHIUM AMERICAS CORP. |
|
By: |
“W. Thomas Hodgson” |
||
|
Name: W. Thomas Hodgson |
||
|
Title: Chief Executive Officer |
LEGAL_1:50593695.17
Exhibit A
Form of GFL-LAC SUBORDINATED LOAN FACILITY
(see attached)
LEGAL_1:50593695.2
LIMITED RECOURSE SUBORDINATED LOAN AGREEMENT
THIS AGREEMENT dated ____________, 2018
BETWEEN:
GFL INTERNATIONAL CO., LTD., having an address at GFL International Co., Ltd., Room 2103, Tung Chiu Commercial Centre, 193 Lockhart Road, Wan Chai, Hong Kong (hereinafter the “Lender”)
AND:
LITHIUM AMERICAS CORP., having an address a 1150-355 Burrard Street, Vancouver, BC, V6C 2G8, Canada
(hereinafter the “Borrower”)
WHEREAS:
A. |
The Borrower wishes to borrow from the Lender the sum of up to ONE HUNDRED MILLION dollars (US$100,000,000) and the Lender has agreed to lend to the Borrower the sum of up to ONE HUNDRED MILLION dollars (US$100,000,000) (the “Principal Amount”) on the terms and conditions outlined in this Agreement; |
B. |
The Borrower, as borrower, is also party to an Amended and Restated Credit Agreement and Guarantee Agreement dated as of July 14, 2017 (as amended, the “Senior Credit Agreement”) with the Lender and BCP Innovation Pte Ltd. in their capacity as lenders (together, in such capacity, the “Senior Lenders”) and 2265866 Ontario Inc., Lithium Nevada Corporation and JK Project LLC, as guarantors, and BNY Trust Company of Canada as administrative agent for the Senior Lenders and The Bank of New York Mellon as collateral agent for the Senior Lenders; |
C. |
The Borrower and the Lender have agreed that the Lender’s right to repayment of the Loan will be subordinate to the rights of the Senior Lenders under the Senior Credit Agreement; |
D. |
The Borrower, directly or indirectly, owns shares and loans in Minera Exar S.A. (“Minera Exar”), a company domiciled in Argentina, which intends to develop, construct, own and operate the Cauchari-Olaroz Project; and |
E. |
Subject to Recital C., the Borrower and the Lender have agreed that the Lender’s recourse to repayment of the Loan shall be limited to fifty percent (50%) of any, or after an Event of Default, to all (100%), the Minera Exar Distributions (as defined below), |
NOW THEREFORE the parties agree as follows:
1. |
Defined Terms |
|
1.1 |
The following terms have the following meanings in this Agreement: |
|
(a) |
“Advance” has the meaning ascribed in Section 2.2 hereof; |
LEGAL_1:50593695.2
|
(b) |
“Agreed Currency” has the meaning ascribed thereto in Section 14.1(a) hereof; |
|
(c) |
“Agreement” means this Agreement as amended or modified and in effect; |
|
(d) |
“Conditions Precedent” shall mean the conditions precedent as described in detail in Section 6 hereof; |
|
(e) |
“Event of Default” has the meaning ascribed thereto in Section 8.2 hereof; |
|
(f) |
“Interest Payment Date” has the meaning given in the Senior Credit Agreement; |
|
(g) |
“Interest Period” means each six-month period beginning on an Interest Payment Date and ending on the immediately succeeding Interest Payment Date; |
|
(h) |
“LAC Party” means any of the Borrower, 2265866 Ontario Inc. or [Netherlands Newco]1 and any other company that from time to time has the Borrower as a direct or indirect parent and Minera Exar as a direct or indirect subsidiary; |
|
(i) |
“Legal Fees” has the meaning ascribed thereto in Section 10 hereof; |
|
(j) |
“LIBOR” means, on any day in any Interest Period, the rate per annum determined by the Lender to be the offered rate which appears on the page of the Reuters Screen which displays the London interbank offered rate administered by ICE Benchmark Administration Limited, for deposits in United States Dollars, such page currently being the LIBOR01 page (or on any successor or substitute page of such service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided on such page, as determined by the Lender from time to time for purposes of providing quotations of interest rates applicable to United States dollar deposits in the London interbank market), for delivery on the first day of such Interest Period, with a term equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London, England time), two business days prior to the commencement of such Interest Period, provided that, if at any time the Lender determines (which determination shall be conclusive absent manifest error) that LIBOR is no longer available for determining interest rates for loans, then the Lender and the Borrower shall endeavor to establish an alternate rate of interest to LIBOR that gives due consideration to the then prevailing market convention for determining a rate of interest for syndicated loans in the |
|
1 |
To be completed prior to execution once entity has been incorporated. |
LEGAL_1:50593695.17
|
United States at such time, and shall enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be applicable; |
|
(k) |
“Loan” means the Principal Amount, together with all accrued and unpaid interest, plus any Legal Fees; |
|
(l) |
“Loan Payment” has the meaning ascribed thereto in Section 4.1 hereof; |
|
(m) |
“Minera Exar” has the meaning ascribed thereto in Recital D hereof; |
|
(n) |
“Minera Exar Distributions” means: (i) any payments (including any principal, interest, indemnification or reimbursement payments) made by Minera Exar to any LAC Party in connection with any loans (the “Minera Loans”); (ii) any dividends, return of capital, distributions or other similar payments made by Minera Exar to any LAC Party; and (iii) all contractual rights associated with (i) and (ii) above. |
|
(o) |
“Minera Exar JV Documents” means all agreements and documents governing Minera Exar, the Cauchari-Olaroz Project and the property related thereto, including, without limitation, the shareholders agreement governing Minera Exar; |
|
(p) |
“Payment Currency” has the meaning ascribed thereto in Section 14.1(a) hereof; |
|
(q) |
“Principal Amount” has the meaning ascribed thereto in Recital A hereof; |
|
(r) |
“Senior Credit Agreement” has the meaning ascribed thereto in Recital B hereof; and |
|
(s) |
“Senior Lenders” has the meaning ascribed thereto in Recital B hereof and includes any successor and assign. |
|
1.2 |
All statements of or references to dollar amounts in this Agreement mean U.S. dollars. |
|
1.3 |
In this Agreement “business day” means any day, other than a Saturday or Sunday, on which commercial banks located in New York (U.S.A.), Toronto (Canada), Hong Kong and Buenos Aires (Argentina) are open for banking business during normal banking hours. |
2. |
Advances |
|
2.1 |
The Lender agrees, on the terms and conditions of this Agreement, to advance the Principal Amount in favour of the Borrower in the aggregate principal amount of up to ONE HUNDRED MILLION DOLLARS (US$100,000,000). |
LEGAL_1:50593695.17
|
2.2 |
Upon satisfaction of the Conditions Precedent, the Principal Amount shall be available to the Borrower in multiple advances (each an “Advance”) on the following terms and conditions: |
|
(a) |
the Borrower gives the Lender written notice of a request for an Advance at least 20 business days prior to the date of such Advance; and |
(b)the Advance requested must be in a minimum amount of $10,000,000.
|
2.3 |
Advances hereunder are available until December 31, 2025, after which time the Lender is under no obligation to make further advances. |
Interest on the Principal Amount of all Advances outstanding from time to time shall accrue at the rate equal to LIBOR plus 550 basis points per annum (subject to an aggregate maximum per annum rate of 10%) until repayment of all Advances, plus all accrued interest due thereon, in full. Interest shall be calculated from the date of the first Advance and initially compounded on the date of the first interest payment made pursuant to Section 4.2. Thereafter, interest shall be compounded semi-annually, not in advance. Interest shall be calculated on a daily basis on the basis of a 360 day year.
(a)first, in respect of any indemnified amounts due hereunder;
(b)second, to accrued and unpaid interest owing hereunder; and
(c)third, to any principal amounts outstanding hereunder.
|
(a) |
there are excess Minera Exar Distributions after making all payments to the Senior Lenders required as at such time under the Senior Credit Agreement to keep the Senior Credit Agreement in good standing; and |
LEGAL_1:50593695.17
|
(b) |
such payment is a permitted Restricted Payment (as defined in the Senior Credit Agreement) pursuant to Section 8.2(5) of the Senior Credit Agreement. |
For greater certainty, if the Borrower has made any Loan Payment, such interest payments shall only be due and payable to the extent interest remains due and payable after any applicable Loan Payments.
|
4.3 |
The Loan shall remain outstanding until sufficient Loan Payments have been made or realized to satisfy all amount under the Loan. |
|
4.4 |
Amounts repaid pursuant to this Section 4 may not be re-borrowed. |
|
4.5 |
Subject to Section 5 hereof, the Borrower may prepay all or any portion of the Loan (first, in respect of any indemnified amounts due hereunder; second, to accrued and unpaid interest owing hereunder; and third, to any principal amounts outstanding hereunder), at any time and from time to time without bonus or penalty on not less than 10 days’ prior written notice or payment of an amount equal to 10 days’ interest. |
The Borrower’s obligation to make Loan Payments or interest payments hereunder is subject to the Borrower’s obligations to the Senior Lenders under the Senior Credit Agreement, and the Lender’s right to accept Loan Payments or interest payments is subordinate to the Senior Lenders’ right to repayment under the Senior Credit Agreement. At no time shall the Borrower be required to make any Loan Payment or interest payment in contravention of the terms and conditions of the Senior Credit Agreement. For greater certainty, it is understood between the Borrower and the Lender that provided there has been no breach or default under the terms of the Senior Credit Agreement, the Borrower is permitted by the terms of the Senior Credit Agreement to make the interest payments required by Section 4.2 hereof.
|
6.1 |
As a condition precedent to each Advance hereunder, the Lender must be satisfied that no Event of Default has occurred and no event has occurred which, with the passage of time, could reasonably be expected to give rise to an Event of Default. |
|
6.2 |
The conditions precedent are for the sole benefit of the Lender and may be waived by the Lender in whole or in part at any time. |
7. |
Covenants |
|
(a) |
subject to Section 5 hereof, within 3 business days of receipt of a Minera Exar Distribution, duly and punctually pay a Loan Payment to the Lender; |
LEGAL_1:50593695.17
|
(b) |
make all interest payments when due as required Section 4.2; |
|
(c) |
provide, and cause each LAC Party to provide, the Lender with all such information and documents as the Lender may reasonably require in order to carry out the intention of this Agreement; |
|
(d) |
do all acts required to maintain the corporate existence of the Borrower and each LAC Party; |
|
(e) |
observe and perform, and cause each LAC Party to observe and perform, its obligations under the Senior Credit Agreement, and provide to the Lender written notice of any Event of Default (as defined in the Senior Credit Agreement); |
|
(f) |
give the Lender written notice of any Event of Default promptly on the occurrence of such an event; and |
|
(g) |
cause each of the LAC Parties to distribute to the Borrower all Minera Exar Distributions received by them. |
|
(a) |
and shall not allow any LAC Party to, alter any of its constating documents or its corporate organization or any of the Minera Exar JV Documents in any way that would adversely affect the rights of the Lender or impair the Loan; |
|
(b) |
create, assume or have outstanding, or allow any LAC Party to create, assume or have outstanding, any mortgage, charge, pledge, assignment or other encumbrance on the Minera Exar Distributions other than as required by the Senior Credit Agreement; |
|
(c) |
create, assume or have outstanding, or allow any LAC Party to create, assume or have outstanding, any pledge, assignment or other encumbrance on the shares of Minera Exar owned by the LAC Parties or debt obligations of Minera Exar owing to the LAC Parties, other than: (i) as exist or may exist from time to time pursuant to the Senior Credit Agreement; or (ii) in connection with any financing intended to refinance or replace the Senior Credit Agreement and subject to the consent of the Senior Lenders under the Senior Credit Agreement; |
|
(d) |
incur any debt without the prior written consent of the Lender, acting reasonably; |
|
(e) |
dispose, or cause any LAC Party to dispose, of any of its assets, except in the ordinary course of business; |
LEGAL_1:50593695.17
|
(f) |
sell, dispose, transfer or assign the Minera Loans or any shares it holds in Minera Exar; reduce or forgive the principal amount or the rate of interest under the Minera Loans; vote the shares it holds in Minera Exar in any manner which may negatively impact the Lender or the Loan, or permit any LAC Party to do any of the foregoing; and |
|
(g) |
do any act which could adversely affect the Borrower or any LAC Party’s right to receive Minera Exar Distributions. |
|
7.3 |
The covenants set forth in sections 7.1 and 7.2 shall remain in effect and apply so long as there are any amounts outstanding under the Loan. |
8. |
Default |
|
8.1 |
Upon the occurrence of an Event of Default the Lender may, in its discretion and in addition to any other rights and powers held by the Lender, and subject always to Section 9 hereof: |
|
(a) |
declare the whole or any part of the Loan to be in default and immediately due and payable and thereupon the Loan and all other amounts owing hereunder will immediately become due and payable without presentment, demand, protest or notice of any kind, all of which are expressly waived by the Borrower; |
|
(b) |
demand payment of the Loan, and all other amounts owing hereunder, from the Borrower; and |
|
(c) |
subject to Section 5, without notice to the Borrower, provide written demand to Minera Exar that 100% Minera Exar Distributions going forward be made directly to the Lender. |
|
(a) |
the Borrower or any LAC Party fails to pay a Minera Exar Distribution when due and such non-payment continues for 3 business days; |
|
(b) |
any default or breach by the Borrower of the covenants, representations or warranties under this Agreement that has not been cured within 10 business days of the Borrower being notified by the Lender of the default or breach; |
|
(c) |
any default or event of default under the Senior Credit Agreement; |
|
(d) |
if the Borrower or any other LAC Party makes an assignment for the benefit of its creditors, or if the Borrower or any other LAC Party makes a proposal to its creditors or if any receivership, bankruptcy, reorganization, arrangement, debtor’s relief or other insolvency proceedings involving the |
LEGAL_1:50593695.17
|
Borrower or any other LAC Party as a debtor is commenced, whether by the Borrower, any other LAC Party or any third party; |
|
(e) |
if Minera Exar makes an assignment for the benefit of its creditors, or if Minera Exar makes a proposal to its creditors or if any receivership, bankruptcy, reorganization, arrangement, debtor’s relief or other insolvency proceedings involving Minera Exar as a debtor is commenced, whether by Minera Exar or any third party; |
|
(f) |
any Change of Control (as defined in the Senior Credit Agreement) at the Borrower or Minera Exar level; |
|
(g) |
any judgment or order for the payment of money in excess of US$5,000,000 is rendered against the Borrower or any other LAC Party and its remains unstayed for at least 30 days; |
|
(h) |
an event or circumstance occurs which would have a Material Adverse Effect (as defined in the Senior Credit Agreement) with respect to the Borrower or any other LAC Party; |
|
(i) |
an Event of Abandonment (as defined in the Senior Credit Agreement) occurs and is continuing; and |
|
(j) |
the Borrower or any other LAC Party is in default of its obligations under the applicable “Investor Rights Agreement” that has not been cured within 30 days of the Borrower being notified by the Lender of the default or breach. |
Notwithstanding anything contained herein to the contrary but subject to Section 5 hereof, the recourse of the Lender under this Agreement is limited to the exercise and enforcement of the Lender’s realization rights against all (100%) of the Minera Exar Distributions. Subject to Section 5 hereof, the sole recourse of the Lender against the Borrower or any other LAC Party is with respect to the Lender’s right to sue, seize, collect or otherwise realize upon all (100%), the Minera Exar Distributions. Subject to Section 5 hereof, the Lender shall have no right to enforce against any of the Borrower’s property or assets other than all (100%) of the Minera Exar Distributions.
The Borrower shall pay all expenses and fees and any other charges or amounts incurred by the Lender in connection with the negotiation and implementation of this Agreement and any realization or enforcement actions taken under this Agreement, including but not limited to legal, accounting and advisory fees (collectively, “Legal Fees”).
LEGAL_1:50593695.17
11. |
Representations and Warranties |
|
11.1 |
The Borrower represents and covenants to the Lender that: |
|
(a) |
it has full power, capacity, authority and legal right to borrow in the manner and on the terms and conditions set out in this Agreement; |
|
(b) |
it is not in default under any agreement or instrument to which it is a party and which default would materially adversely affect its ability to observe and perform its obligations hereunder; |
|
(c) |
there are no pending or threatened actions or proceedings against it or any LAC Party before any court or administrative agency which may materially adversely affect its financial condition or, in the case of the Borrower, its obligations to fulfill the terms of this Agreement; |
|
(d) |
it, and each LAC Party, is a corporation duly incorporated and validly existing under the laws of its jurisdiction of incorporation and has all requisite power and authority to own its assets and to carry on its business as such business is presently carried on; |
|
(e) |
it has full power, capacity, authority and legal right to execute and deliver this Agreement and to do all such acts and things as are required to be done, observed and performed in accordance with the terms of this Agreement; |
|
(f) |
all corporate acts and proceedings necessary to authorize the execution, delivery and performance of this Agreement have been duly taken by it and this Agreement has been duly executed and delivered by it and constitutes valid and legally binding agreement of it, enforceable against it in accordance with the terms hereof; and |
|
(g) |
the execution and delivery of this Agreement and the performance of or compliance with the terms of this Agreement will not result in a breach or constitute a default under, or require any consent under the terms or conditions of any agreement or instrument to which it is a party or by which it is bound. |
12. |
Indemnification |
Section 12.4 of the Senior Credit Agreement, as it applies to the Borrower and each other LAC Party, is incorporated by reference and the Lender shall be entitled to all of the indemnification rights and benefits afforded to the Senior Lenders thereunder.
13. |
Non-Assignment |
The Borrower may not assign any of its rights under this Agreement without the consent of the Lender, which consent may be unreasonably withheld. The Lender may assign its rights and
LEGAL_1:50593695.17
obligations under this Agreement upon written notice thereof to the Borrower and without the consent of the Borrower.
14. |
Currency |
|
14.1 |
If: |
|
(b) |
the amount so produced by converting the Payment Currency so received into the Agreed Currency is less than the relevant amount of the Agreed Currency; |
then
|
(c) |
the amount so received shall constitute a discharge of the liability of the Borrower under this Agreement only to the extent of the amount produced pursuant to the conversion described in clause (ii) above; and; |
|
(d) |
the Borrower shall indemnify and save the Lender harmless from and against such deficiency and any loss or damage arising as a result thereof. |
|
14.2 |
Any conversion pursuant to this Agreement shall be made at the prevailing rate of exchange on the date the Payment Currency is received and in such market as is determined by the Lender, in its sole discretion, as being the most appropriate for such conversion. The Borrower shall in addition pay the costs of such conversion. |
15. |
Amendment |
No amendment, waiver or modification of this Agreement in whole or in part will be enforceable against the Lender unless it is in writing expressed to be a modification of this Agreement.
16. |
Binding Effect |
This Agreement shall be binding on the Borrower, and its successors and assigns and shall enure to the benefit of the Lender and its successors and assigns.
17. |
Time is of the Essence |
Time is of the essence of this Agreement.
LEGAL_1:50593695.17
18. |
Further Assurances |
The Borrower hereby covenants and agrees to execute such further and other documents and instruments and to do such further acts and other things as may be required by the Lender to implement and carry out the intent of this Agreement.
19. |
Governing Law |
This Agreement shall be exclusively governed by and construed in accordance with the laws of Ontario, Canada which shall be deemed to be the proper law hereof. The parties hereto hereby attorn to the non-exclusive jurisdiction of the courts of Ontario, Canada.
20. |
Headings |
The headings appearing in this Agreement have been inserted for reference and as a matter of convenience and in no way define, limit or enlarge the scope or meaning of this Agreement or any provision hereof.
21. |
Notice |
All notices, demands and payments required or permitted to be given hereunder shall be in writing and may be delivered personally, sent by email or may be forwarded by first class prepaid registered mail to the addresses or email addresses set forth on the first page of this Agreement or at such other address or addresses or email addresses as may from time to time be notified in writing by the parties hereto. Any notice delivered or sent by email shall be deemed to have been given and received at the time of delivery, unless delivered or sent after 4:00 p.m. Eastern time on any business day, or delivered or sent on a day other than a business day, in which case such email shall be deemed to have been given and received at 9 a.m. Eastern time on the following business day. Any notice mailed as aforesaid shall be deemed to have been given and received on the expiration of 48 hours after it is posted, provided that if there shall be between the time of mailing and the actual receipt of the notice a mail strike, slowdown or other labour dispute which might affect the delivery of such notice by mail, then such notice shall only be effective if actually delivered.
22. |
Severability |
Should any part of this Agreement be declared or held invalid for any reason, such invalidity shall not affect the validity of the remainder which shall continue in force and effect and be construed as if this Agreement had been executed without the invalid portion and it is hereby declared the intention of the parties hereto that this Agreement would have been executed without reference to any portion which may, for any reason, be hereafter declared or held invalid.
23. |
Counterparts |
This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. The exchange of copies of this Agreement and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Agreement as to the parties hereto and may be used in lieu of the original Agreement for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.
[Signature Pages Follow]
LEGAL_1:50593695.17
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
LITHIUM AMERICAS CORP.
_____________________________________ Name: Title:
|
|
GFL INTERNATIONAL CO., LTD.
_____________________________________ Name: Title: |
|
LEGAL_1:50593695.17
Exhibit B
SHAREHOLDERS AGREEMENT TERM SHEET
(see attached)
SHAREHOLDERS AGREEMENT TERM SHEET
This Shareholder Agreement Term Sheet set forth the principal binding and indicative terms that will be incorporated into the Shareholder Agreement, upon the execution and delivery of such documents.
1. Parties |
● LAC and 226 (“LAC Group” or “Majority Participant”) ● GFL and GHC (“GFL Group” or “Minority Participant”) ● NHC ● Minera Exar (“Exar”) |
2. Structure |
● Shareholder agreement (the “Shareholder Agreement”) between LAC Group and GFL Group (each, a “Participant”) will govern the entities jointly owned by the LAC Group and the GFL Group, being NHC and Exar. ● The Shareholder Agreement will reflect governance of the jointly-owned entities by their respective boards of directors and by a management committee (the “Management Committee”). ● The Exar by-laws will be amended to reflect the terms of the Shareholder Agreement. |
3. Participant Interests |
● 62.5% LAC Group/37.5% GFL Group in respect of each of NHC and Exar ● Constituent parts of the Participant Interests will consist of: (i) shares of Exar; (ii) shares of NHC; and (iii) loans by Participants to NHC. Each Participant will hold a proportionate interest in each component part of the Participant Interest. ● Additional funding or contributions by either Participant (e.g. GHC loan to Exar at Closing; or the GFL-LAC Credit Agreement) to be addressed separately and in the relevant agreements governing such matters and the Shareholder Agreement. ● Changes to Participant Interest will require adjustments to each constituent part to ensure all parts of the Participant Interest remain equal (e.g. where there is a failure to fund a loan to NHC under a cash call that results in dilution of a Participant Interest, the shares of Exar and NHC held by that Participant will also be adjusted). ● [redacted – commercially sensitive information relating to interest adjustment mechanism]. |
B-1
LEGAL_1:50904362.3
4. Management Committee |
● Management Committee will consist of 3 representatives of Majority Participant and 2 representatives of Minority Participant. ● Notwithstanding the number of representatives of a Participant at a meeting, voting power on the Management Committee will correspond to the Participant Interest of each Participant. Quorum for Management Committee meetings to be at least one representative of each Participant ● Decisions to be decided by a majority vote, except Material Matters as set out below. ● Meetings to be held quarterly, transitioning to monthly meetings during the “development period”, being the period commencing immediately following execution of the Shareholder Agreement until the declaration of commercial production. ● Majority Participant to appoint the Management Committee Chair, and to be tasked with directing the Management Committee administration, including setting meeting dates, agenda, etc. |
5. Board Representation |
● The Participants will have representation on the Board of Directors of each of NHC and Exar, with Majority Participant appointing 3 representative and Minority Participant appointing 2 representatives. ● The Participants shall direct and cause their representatives to implement the decisions approved by the Management Committee. |
6. Management and Operations |
● Exar will maintain stand-alone management team, including corporate officers. Senior appointments to be approved through Management Committee. ● The President of Exar will be Franco Mignacco. ● The Chief Executive Officer of Exar will be Gabriel Rubacha. ● The parties will jointly form a technical committee of representatives of both parties responsible for undertaking technical discussions with respect to the Cauchari-Olaroz Project. The technical committee shall meet from time to time as required. It is currently anticipated that the technical committee will meet on a regular basis to facilitate joint discussions. |
7. Operational Support |
● Each Participant will provide resources and infrastructure to support the development and operation of the Cauchari-Olaroz Project from time to time as requested by management of Exar, on a cost-recovery basis. ● No support in this regard will result in the transfer of intellectual property or other rights to Exar or to the other Participant. The Shareholder Agreement will contain customary provisions regarding ownership and licensing of background intellectual property and developed intellectual property, including protection of proprietary IP, and definition of Shared IP. |
8. Material Matters |
[redacted – commercially sensitive information relating to approval requirements] |
9. |
[redacted – commercially sensitive information relating to decision making and approval requirements] |
B-2
LEGAL_1:50904362.3
10. Subsequent Programs and Budgets |
● Upon commencement of commercial production, the Management Committee will be required to review and approve an annual program and budget prepared by Exar. ● The Management Committee will have the right to request and review additional programs and budgets, including: o one or more supplementary program and budget to be considered and prepared for a near-term expansion of the Cauchari-Olaroz Project (a “Capital Expansion”), such as the Stage 2 development at the Project; and o any supplementary program and budget to be prepared for closure proximate to closure timing. ● In the event of a Dispute regarding a budget, Exar will prepare, and the Participants will fund, a minimum operating budget to maintain Exar and the Cauchari-Olaroz Project in good standing. |
11. Cash Calls and Funding |
● Cash Calls on Participants will occur in connection with timing and amounts established by approved programs and budgets, as amended, based on cash call notices issued from Exar management. ● Cash calls will be funded by the Participants either as loans to NHC or by equity funding, as determined by the Management Committee. ● Amounts contributed or loaned to NHC will be loaned by NHC to Exar ● Loans to Exar by NHC, LAC and GHC will be provided on substantially similar terms and conditions. Loans owing by Exar to GHC, LAC and NHC will be repaid pro rata in proportion to the aggregate principal amount outstanding. |
12. Failure to fund a cash call |
● Upon a failure to fund a cash call, non-funding Participant will have a 30-day opportunity to cure the default. ● If funding is still not provided, the funding Participant may: o [redacted – commercially sensitive information relating to impact of funding failure]. ● A failure by GFL to provide an advance to LAC under the GFL-LAC Credit Agreement, the 2017 Credit Agreement or any other loan arrangement then in effect, required by LAC in order to permit it to fund its share of a cash call will not constitute a failure to fund by LAC, but will be treated by the parties as a failure to fund by GFL. |
B-3
LEGAL_1:50904362.3
13. Distributions |
● The Shareholder Agreement will contain a Distribution Policy that will be effective following completion of the relevant capital expenditures for Stage 1. ● “Distributions” will include payments of dividends or other distributions and repayments of principal and interest by Exar and NHC on account of outstanding intercompany indebtedness. ● The Distribution Policy will require distributions of net cash flow to the Participants. Net cash flow will expressly exclude: amounts required to ensure uninterrupted conduct of operations (3 month operating reserve), planned capital expenditures budgeted for funding through operating cash flow, amounts otherwise determined to be funded by Exar pursuant to an agreed work program and budget. ● The Distribution Policy will allow the Management Committee to determine whether Distributions will be paid by way of debt repayment or as a dividend. |
14. Dispute Resolution |
● [redacted – commercially sensitive information relating to dispute resolution mechanism]. ● If the Dispute has not been resolved between the parties within 90 days (the °Dispute Resolution Period’) of a party giving to the other party written notice setting out the details of the Dispute, then either party may request that the matter be referred to non-binding mediation. ● Thereafter: o LAC may make an offer to purchase all of the GFL Group’s Participant Interests; o The GFL Group will have the right to elect either: ■ to accept LAC’s offer; or ■ make a counteroffer to purchase the LAC Groups’ Participant Interest at a minimum 10% premium to the LAC offered price; o If GFL delivers a counteroffer, LAC will have the right to accept the GFL Group counteroffer and sell to the GFL Group at the proposed price, or to acquire the GFL Group’s Participant Interest at the GFL counteroffer price plus a 10% premium. |
15. Information Rights |
● Each of LAC and GFL shall have access to any information, key management personnel and site access as reasonably requested, including monthly operating reports, audited financial statements of Exar and quarterly unaudited financial statements of Exar. ● Each Participant will have the right (at its own expense) to have a third-party auditor conduct an audit of Exar and/or NHC. |
B-4
LEGAL_1:50904362.3
16. Transfer Restrictions |
● Prior to commercial production, no Participant will be able to transfer all or any portion of a Participant Interest without the prior written consent of the other Participant ● Following commencement of commercial production, each Participant will have a 90 day right of first refusal if the other party proposes to sell all or any portion of its Participant Interest. ● Following the commencement of commercial production, Participant(s) selling more than 70% of the Participant Interests in the aggregate may drag along the remaining 30% or less Participant(s). If the selling Participant elects not to exercise the drag requirement, the 30% or less Participant(s) will have the right to tag-along. ● LAC may transfer up to a 10% Participant Interest to a third party without triggering the restrictions above, in its discretion, to a third party acceptable to GFL, acting reasonably. If LAC transfers such a stake, the proceeds of such transfer will first be used by LAC to repay, reduce or eliminate the $100mm subordinated debt facility provided by GFL to LAC |
17. Confidentiality |
● Confidentiality regarding Exar, NHC and the Cauchari-Olaroz Project matters, except as required in the course of bona fide business operations or by applicable laws. Includes right of LAC to prepare and file NI 43-101 technical reports and the right to allow third party review in connection with potential M&A/financing in respect of a Participant. |
18. Right to acquire product |
● Participants shall be entitled to acquire their pro-rata share (based upon Participant Interest) of production at market rates (subject to LAC obligations under July 2017 Off-take Agreements). |
B-5
LEGAL_1:50904362.3
Exhibit 99.4
EXECUTION COPY
Strategic COLLABORATION Agreement
BETWEEN
Lithium Americas Corp.
AND
Jiangxi Gangfeng Lithium Co. Ltd.
August 13, 2018
LEGAL_1:50904360.3
strategic Collaboration AGREEMENT
THIS AGREEMENT is made this 13th day of August, 2018
BETWEEN:
LITHIUM AMERICAS CORP., a corporation incorporated under the laws of British Columbia
(“LAC”)
- and -
JIANGXI GANFENG LITHIUM CO., LTD., a corporation existing under the laws of the People’s Republic of China
(“GHG”)
PREFACE
LAC and GHG are independent companies, but have established a strong, mutually beneficial relationship based on strategic collaboration. The relationship commenced in 2016 with the achievement of a successful financing and off-take transaction related to the Cauchari Olaroz Project. Concurrently with the execution of this Agreement, the parties have executed a transaction agreement pursuant to which, among other things, GHG will become LAC’s partner in the development of the Cauchari Olaroz Project.
Since establishing their relationship, both companies have engaged extensively to understand each other’s respective values, strategic priorities and operating capabilities. Senior management and technical teams from each company have participated in multiple site visits to view the other’s operations in Argentina, the United States and, in the case of GHG, China. This engagement and interaction has confirmed that GHG and LAC share common values and objectives, and have complementary strengths and resources.
GHG and LAC believe that, working together in collaboration, they can more efficiently and successfully achieve their common goal of acquiring and developing additional world-class lithium resources throughout North and South America. Therefore, by this Strategic Collaboration Agreement, LAC and GHG have agreed to establish mechanisms to encourage increased communication and knowledge-sharing between their respective management and technical teams, with the objective of identifying, evaluating and considering joint collaboration with respect to future acquisition and development opportunities in North and South America, for the benefit of each of their respective owners and stakeholders.
LEGAL_1:50904360.3 |
2 |
For the purpose of this Agreement, the following terms shall have the respective meanings set out below and grammatical variations of such terms shall have corresponding meanings:
(a) |
“Cauchari Olaroz Project” means the Cauchari-Olaroz Lithium Project located in Jujuy Province, Argentina and owned by Exar; |
(b) |
“Exar” means Minera Exar SA; |
(c) |
“GHG” means Jiangxi Ganfeng Lithium Co., Ltd.; |
(d) |
“LAC” means Lithium Americas Corp.; |
(e) |
“Mariana Project” means the Mariana lithium brine project located in Salta, Argentina and operated as a joint venture between GHG and International Lithium Corp. |
(f) |
“Parties” means GHG and LAC, and “Party” means any one of them; |
(g) |
“Potential Deposits” has the meaning set forth in Section 2.1(a) of this Agreement; |
(h) |
“Potential Projects” has the meaning set forth in Section 2.1(b) of this Agreement; |
(i) |
“Strategic Management Committee” has the meaning set forth in Section 2.2(a) of this Agreement; and |
(j) |
“Thacker Pass Project” means the Thacker Pass Project located in Humboldt County, Nevada, USA and owned by LAC. |
2. |
AGREEMENTS |
2.1 |
OBJECTIVES |
The Parties agree that it would be mutually beneficial to establish a formal relationship of strategic collaboration, having the following objectives and for the following purposes:
(a) |
To provide a means for LAC and GHG to efficiently and securely share knowledge, contacts and information regarding lithium deposits located in North and South America (“Potential Deposits”); |
(b) |
To work together to evaluate Potential Deposits, with a view to identifying world class lithium projects worthy of undertaking further exploratory and due diligence efforts (“Potential Projects”); |
LEGAL_1:50904360.3 |
3 |
(c) |
To jointly undertake technical, economic, social, legal and other appropriate due diligence in respect of Potential Projects (“Due Diligence Review”), leveraging one-another’s strengths and resources to conduct such Due Diligence Review in an efficient and prudent manner; and |
(d) |
To bring to bear each Party’s technical, financial and management knowledge and experience to jointly assess whether to invest in a Potential Project, having regard to whether it would be in the best interests of each Party to do so. |
2.2 |
STRATEGIC COLLABORATION |
Having regard to the objectives set forth in Section 2.1, the Parties hereby agree that:
(a) |
They shall establish a strategic management committee (“Strategic Management Committee”) having the following features: |
|
(i) |
it shall host an equal number representatives of LAC and GHG; and |
|
(ii) |
it shall meet, in person or by telephone, at least once per calendar quarter; |
(b) |
The Strategic Management Committee shall be responsible for: |
|
(i) |
establishing and overseeing a framework to identify Potential Deposits; |
|
(ii) |
establishing and overseeing a secure and efficient protocol by which the Parties may share knowledge, contacts and information regarding Potential Deposits; |
|
(iii) |
upon identification of Potential Deposits, establishing and overseeing a framework for assessing such Potential Deposits and to determine whether they are worthy of undertaking a Due Diligence Review; |
|
(iv) |
upon identification of a Potential Project, establishing and overseeing a framework for the conduct of a Due Diligence Review; |
|
(v) |
establishing and overseeing a framework for decision-making regarding (A) whether to make an investment in a Potential Project (“Potential Investment”), (B) determining the form and structure of any such Potential Investment, (C) entering into one or more definitive agreements among the Parties in respect of the Potential Investment, and (D) negotiating the Potential Investment with the relevant counterparty; and |
|
(vi) |
managing the Parties’ relationship with advisors and consultants retained by the Parties pursuant to this Agreement, and establishing and overseeing a framework with respect to apportioning the payment of any such advisor and consultant fees among the Parties, |
in each case having regard to the efficiencies that can be realized by leveraging the strengths and resources of each Party.
LEGAL_1:50904360.3 |
4 |
2.3 |
Express Exceptions |
(a) |
The Parties agree that the principles and agreements contained in this Agreement do not apply to the Thacker Pass Project, the Cauchari Olaroz Project or the Mariana Project. |
(b) |
The Parties agree that nothing contained in this Agreement shall obligate either Party to make any Potential Investment, and that any decision to proceed with a Potential Investment shall be in the sole and unfettered discretion of each Party, having regard to its own best interests. |
(c) |
The Parties agree that this agreement is not exclusive and the Parties may, in their sole discretion, engage in similar collaborations with any other party. |
Any notice to be given hereunder may be delivered in person or transmitted by electronic communication, addressed as follows:
(a) |
if to LAC: |
Lithium Americas Corp.
Suite 1100, 355 Burrard Street
Vancouver, BC V6C 2G8
|
Attention: |
Chief Executive Officer |
|
|
Email: |
[redacted – personal information] |
|
(b) |
if to GHG: |
Jiangxi Ganfeng Lithium Co., Ltd.
Suite 1802A, Tower B
Jinying Mansion, 1518 Minsheng Road
Pudong, Shanghai
|
Attention: |
Haibing Shen |
|
|
Email: |
[redacted – personal information] |
|
with copies (which shall not constitute notice)
Gowling WLG (Canada) LLP
550 Burrard Street, Suite 2300, Bentall 5
Vancouver, BC V6C 2B5 Canada
|
Attention: |
Linda J. Hogg |
|
|
E-mail: |
linda.hogg@gowlingwlg.com |
|
LEGAL_1:50904360.3 |
5 |
Any such notice or other communication shall be deemed to have been given and received on the day on which it was delivered or transmitted (or, if such day is not a Business Day, on the next following Business Day). Any Party may at any time change its address for service from time to time by giving notice to the other Parties in accordance with this Section 3.
4. |
CONFIDENTIALITY |
|
(a) |
The parties acknowledge and agree that the activities contemplated by this Agreement are confidential. |
|
(b) |
Neither party shall, at any time or under any circumstances, without the prior consent of the other party, directly or indirectly communicate or disclose to any person (other than its employees, agents, advisors and representatives as reasonably necessary in connection with the collaboration contemplated by this Agreement) or make use of any confidential knowledge or information acquired by such party resulting from discussions, collaboration or otherwise under this Agreement (“Confidential Information”). However, the foregoing obligation of confidentiality shall not apply to: |
|
(i) |
information that is or becomes generally available to the public (other than by disclosure by such party or its employees, agents, advisors or representatives contrary to this section); |
|
(ii) |
information that is reasonably required to be disclosed by a party to protect its interests in connection with any valuation or legal proceeding under this Agreement; or |
|
(iii) |
information that is required to be disclosed by law or by the applicable regulations or policies of any regulatory agency of competent jurisdiction or any stock exchange. |
|
(c) |
Each of the Parties acknowledges that disclosure of any Confidential Information in contravention of this Section may cause significant harm to the other party and that remedies at law may be inadequate to protect against a breach of this Section. Accordingly, the non-disclosing party shall be entitled, in addition to any other relief available to it, to the granting of injunctive relief without proof of actual damages or the requirement to establish the inadequacy of any of the other remedies available to it. Neither of the parties shall assert any defence in proceedings regarding the granting of an injunction or specific performance based on the availability to the other party of any other remedy. |
|
(d) |
The Parties agree that the provisions of this Section shall continue in force during the term of this Agreement and for a period of 24 months following the termination of this Agreement. |
LEGAL_1:50904360.3 |
6 |
5. |
TERMINATION |
This Agreement may be terminated at any time by either party. Any such termination shall be effective on the 60th day following the date on which a party has delivered to the other party written notice confirming the termination.
6. |
EFFECT AND GOVERNING LAW |
(a) |
The Parties agree that, with the exception solely of Section 4 (Confidentiality Agreement) hereof (the “Binding Provision”), this Agreement is intended to express the desire of the Parties to collaborate with respect to opportunities but is non-binding in all respects, that no enforceable obligations or commitments are created hereby, and that, should a decision be made to pursue a Potential Investment pursuant to this Agreement, the Parties will enter into a separate, binding agreement in respect thereof. |
(b) |
The Parties agree that the Binding Provision shall be governed by the laws of the Province of Ontario, and the federal laws of Canada applicable therein. The Parties attorn to the exclusive jurisdiction of the Courts in the Province of Ontario with respect to the Binding Provision. |
7. |
NO PARTNERSHIP |
Nothing in this Agreement is to constitute or be deemed to constitute a legal partnership for any purpose between the Parties or an agency of one Party to another Party, or in any way create a fiduciary duty of one Party to another Party.
[Remainder of page intentionally left blank]
LEGAL_1:50904360.3 |
7 |
IN WITNESS WHEREOF this Agreement has been executed by the Parties on the date first above written.
JIANGXI GANFENG LITHIUM CO., LTD. |
||
|
|
|
|
|
|
By: |
|
“Wang Xiaoshen” |
|
|
Name: Wang Xiaoshen |
|
|
Title: Executive Vice President |
LITHIUM AMERICAS CORP. |
||
|
|
|
|
|
|
By: |
|
W. Thomas Hodgson |
|
|
Name: W. Thomas Hodgson |
|
|
Title: Chief Executive Officer |
LEGAL_1:50904360.3 |
Signature Page to Strategic Collaboration Agreement |
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