1. Both parties agreed to proceed (by May 1st, 2016) with the further steps described in the process-model below. Within this process there will be some „exit-points“ for both parties to leave the project without any consequences; ECO has to apply at least two times for an approval from its major-shareholder Beijing Capital (to proceed …):
1.1. “Light” Due-Diligence (assets, technical-, financial-, HR-, legal-issues etc.)
1.2. Non-binding Initial Offer by ECO (NBIO) - Detailed Due-Diligence (evaluation-areas, involved parties, process)
1.3. Binding Offer by ECO (esp. with the general financial conditions)
1.4. Negotiation and Acceptance of the binding ECO-offer by the current RE-shareholders, signing of the SPA (Sales- & Purchase-Agreement) and legal transfer of the shares (optional with a remaining minority of x%) and financial transfers.
1.5. New work- / consulting-contracts with the current shareholders with specific KPI´s and an individual incentive-system; the regular RE-Staff would be transferred to ECO within the acquisition.
1.6. Integration-Management / Development of an overall new business-model (masterplan) within an internal project-team of ECO
1.7. Functional Realization of the masterplan (with new structures, processes, roles & responsibilities etc.)
2. The compliance of RE´s daily business with law and options to retain RE´s skills and expertise also in the future are two key-issues within this process
3. The closure of the venture / project should be approx. 6 month after its official launch announced by RE
4. RE would increase its working-capital up to 100 Mio. TBH to enable ECO to take the majority of its shares (as a foreign investor) according to the Foreign Business Act (FBA) in Thailand
5. In the meantime ECO will provide a checklist and a detailed timetable (with the exit-points) regarding the necessary documents / figures (e.g. testified annual balance sheets of the last x years, organization-charts, licences etc.) for the set-up of the NBIO