LETTER OF INTENT
This LETTER OF INTENT (“LOI”) is entered into and effective as of the 30th of September 2015 (“Effective Date”) by and between:
THAI SPECIAL GAS COMPANY LIMITED (“TSG”)
100/38 Moo. 1 T. Samkhok,
Samkhok, Pathumthani 12160, Thailand
And:
BANGKOK INDUSTRIAL GAS COMPANY LIMITED (“BIG”)
3 Rajanakarn Building, 11th Floor,
South Sathorn Road, Yannawa, Sathorn,
Bangkok 10120, Thailand
BIG and TSG are hereinafter collectively referred to as the "Parties" and individually referred to as the "Party".
WHEREAS, BIG is developing a company with its partner (“NewCo”) with the primary focus for operating the industrial gas business in Yangon and the vicinity within 500 kilometers in Myanmar, and
WHEREAS, TSG is exploring industrial gas business opportunities in Yangon, Myanmar, and
WHEREAS, the Parties desire to engage in a cooperation for the study (“Project”) of (a) joint development of the feasibility for industrial gas business in Yangon and the vicinity within 500 kilometers in Myanmar (b) opportunities for TSG to participate in the NewCo as one of the shareholders and (c) opportunities for BIG to participate in Thai Special Gas Company Limited as one of the shareholders.
NOW, THEREFORE, the Parties hereby wish to set forth the basis upon which the Parties propose to proceed and agree to undertake the related activities as follows;
1. General Terms and Conditions
It is the intention of the Parties hereto to enter into this LOI, upon execution of this LOI, TSG agrees to exclusively develop and complete the Project with BIG for:
(a) The industrial gas business opportunities and operations in Yangon and the vicinity within 500 kilometers in Myanmar.
(b) Opportunities for TSG to participate in the NewCo as one of the shareholders with shareholding up to 20%
(c) Opportunities for BIG to participate in Thai Special Gas Company Limited as one of the shareholders with shareholding up to 20%
Upon the completion of the Project, each Party shall review the result thereof and make a decision on whether to proceed with further discussions on the long-term business partnership agreement development on exclusive basis as the next step.
Each Party shall bear the costs of its own personnel regarding travelling and accommodation expenses.
2. Term of LOI
This LOI shall be valid for the period of six (6) months after the execution of this LOI (the “Effective Date”). The Parties may extend the term of LOI based upon mutual agreement by the Parties.
3. Confidentiality and non-use
Unless, agreed otherwise, the Parties agree that this LOI and other information related to thereto shall be treated as strictly confidential by both Parties and shall not be disclosed to any other persons without the prior written consent of the other Party. Dislcosure by either Party to its respective shareholders and affiliates, directors, managements, and staffs in connection with this LOI, subjected to obligations of this confidenitality and on a ‘need to know’ basis, shall not be deemed disclosure hereto. Notwithstanding the foregoing, the obligation of confidence shall not apply to the extent that it can be proven that the information: (a) was known to the receiving Party without the fault of the receiving Party, before it was received under this LOI; (b) is or becomes, without the fault of the receiving Party, generally known to the public; (c) is received by the receiving Party, without an obligation of confidentiality, from a third party that has the right to disclose the same, (d) is released specifically by the disclosing Party in writing for disclosure; or (e) is disclosed in response to a lawful subpoena or other legal process, or to the extent required by applicable law.
In protecting the confidentiality of the disclosing Party’s information in good faith, the receiving Party shall use the same degree of care it employs with respect to its own comparable confidential information, but in no event less than a reasonable standard duty of care.
The receiving Party shall strictly limit its use of the disclosing Party’s information to the purpose hereunder. It is agreed between the Parties that the result might be used as a benefit in business purposes approaching while the information and the analysis thereof shall be protected under this LOI.
The receiving Party hereby agrees that it may be liable to disclosing Party and subsidiaries for any direct damage, and reasonable cost (including reasonable legal fees and the cost of enforcing this obligation) arising out of or resulting from any unauthorized use or disclosure by receiving Party or its representatives of the information.
The receiving Party also acknowledge that money damages may be both incalculable and an insufficient remedy for any breach of this LOI by receiving Party or its representatives and that any such breach may cause disclosing Party irreparable harm. Accordingly, receiving Party agrees that in the event of any breach of threatened breach of this LOI, in addition to any other remedies at law or in equity it may have, may be entitled, to equitable relief, including injunctive relief and specific performance.
The confidentiality and non- use obligations will survive expiration or termination of this LOI for a period of five (5) years from the Effective Date of this LOI.
4. Non-Binding Obligations
Except for the provisions expressly specified herein, this LOI shall not by implication or otherwise create a contract, offer, commitment, undertaking, estoppels or obligation of any nature whatsoever for either Party to enter into any joint venture agreement (“Agreement”). The Agreement shall remain negotiable and shall only take effect once it is mutually agreed and signed by both Parties.
Neither TSG nor BIG shall be considered to be bound by any terms set forth to be reflected in the Agreement or any similar transaction shall be implied in the absence of the formal execution of the Agreement which has received both legal review and approval from appropriate authority of TSG and BIG.
5. Termination
This LOI may be terminated in the following case:
5.1 Upon the expiration of the Term as specified in Section 2.
5.2 Either Party is in breach of any of its obligations hereunder or delayed and has not cured such breach within 10 days after written notice of breach from the other.
5.3 Upon mutual agreement of the Parties in writing.
6. Waiver
No failure or delay in exercising any right, power or privilege under this LOI will operate as a waiver of it, nor will any single or partial exercise of it preclude any further exercise.
7. Severability
The provisions of this LOI shall be severable in the event any of the provisions are held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable and the remaining provisions shall remain enforceable to the fullest extent permitted by law.
8. Entire agreement
This LOI constitutes the entire agreement between the Parties with respect to the subject matter hereof and may be modified or amended only by written documentation between the Parties. No Party is relying upon any statement or conduct by the others in entering into this LOI.
9. Assignment
Neither this LOI nor any duties or obligations under this LOI may be assigned by either Party to a third party, without the prior written consent of the other Party. This LOI shall inure to the benefit of and is binding on the Parties hereto, their successors and assignees.
10. Language
Both Parties agree that this LOI is made in English language. Any notice and/or correspondence required or permitted to be given under this LOI shall be made in English language.
11. Governing Law
This LOI shall be governed by and construed in accordance with the laws of Thailand.
This LOI, together with all Attachment/Exhibits (if any) incorporated herein by reference, shall supersedes all previous documents and understandings, whether oral or written, relating to the subject matter hereof.