Document:

Exhibit 10.1

      

       

      

      
        EXECUTION VERSION

         

        

      

      THIRD AMENDMENT AGREEMENT dated as of September 2, 2019 (this “Third Amendment”), to the Credit Agreement dated as of August 15, 2018, as
        amended and restated as of December 31, 2018 and as amended as of February 11, 2019 and March 13, 2019 (as further amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit
          Agreement”), among NEW FORTRESS INTERMEDIATE LLC, a Delaware limited liability company (“Holdings”), NFE ATLANTIC HOLDINGS LLC, a Delaware limited liability company (the “Borrower”), the SUBSIDIARY GUARANTORS (as defined in Section 1.1 of the Credit Agreement) from time to time party thereto, the LENDERS (as defined in the preamble to the Credit Agreement) from time to time party thereto and MORGAN
        STANLEY SENIOR FUNDING, INC., as administrative agent (in such capacity, the “Administrative Agent”).

       

      WHEREAS, NFE South Power Holdings Limited, a private company limited by shares duly incorporated under the laws of Jamaica (“South Power Holdings”), is a
        Subsidiary Guarantor and a party to the Credit Agreement.

       

      WHEREAS, South Power Holdings desires to incur Indebtedness (the “Jamaica Loans”) pursuant to a trust deed in the form delivered to the Administrative
        Agent’s counsel at 1:53 p.m. New York City time on August 29, 2019 (the “Jamaica Indenture”).

       

      WHEREAS, to permit South Power Holdings to enter into the Jamaica Indenture and incur the Jamaica Loans, the Borrower requests that the Lenders and the Administrative Agent agree to certain
        amendments and other modifications to the Credit Agreement and the other Loan Documents.

       

      WHEREAS, South Power Holdings has agreed to transfer certain of its assets as described on Annex A attached hereto (the “Transferred Assets”) to the
        Borrower or a Subsidiary Guarantor within 180 days of the Third Amendment Effective Date (as defined below).

       

      WHEREAS, upon the terms and subject to the satisfaction of the conditions set forth herein, the Lenders and the Administrative Agent agree to the amendments and other modifications to the Credit
        Agreement and the other Loan Documents set forth herein.

       

      NOW, THEREFORE, in consideration of the mutual agreements contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties
        hereto agree as follows:

       

      SECTION 1.  Defined Terms; References.  Capitalized terms used but not defined herein shall have the meanings assigned to them in the Credit Agreement.  The provisions of Section 1.2 of the
        Credit Agreement are hereby incorporated by reference herein, mutatis mutandis.

       

      SECTION 2.  Amendments and Other Modifications to the Credit Agreement and Other Loan Documents.  Subject to, and effective immediately upon, the satisfaction or waiver of the conditions
        precedent set forth in Section 4 hereto (the date all of such conditions are first satisfied or waived being referred to as the “Third Amendment Effective Date”), the Credit Agreement and the other Loan
        Documents are hereby amended or otherwise modified as follows:

       

      
        
          

        2

      

      
      (a)  (i) South Power Holdings shall cease to be a “Subsidiary” for all purposes under the Credit Agreement and the other Loan Documents, (ii) the Steam Supply Agreement shall
        cease to be a “Gas Contract” for all purposes under the Credit Agreement, (iii) all guarantees granted by South Power Holdings under the Guarantee Agreements shall be automatically released and discharged and (iv) any and all security interests and
        Liens granted in favor of the Lenders or the Administrative Agent pursuant to the Security Documents in any and all assets or Capital Stock of South Power Holdings, other than the Transferred Assets, shall be automatically released and discharged;

       

      (b)  immediately upon receipt of the Net Cash Proceeds from the issuance of the Tranche 1B Bonds (as defined in the Jamaica Indenture), and in any event no later than April 30,
        2020, South Power Holdings shall distribute an amount of such Net Cash Proceeds to any Loan Party such that the aggregate Net Cash Proceeds from the issuance of the Jamaica Loans distributed by South Power Holdings to Loan Parties is not less than
        $100,000,000;

       

      (c)  as soon as practicable following the closing of the Jamaica Loans, and in any event within 180 days thereafter (or such longer period as the Administrative Agent may agree),
        South Power Holdings shall transfer and assign the Transferred Assets to the Borrower or a Subsidiary Guarantor, such Transferred Assets to be free and clear of any liens or security interests granted in favor of the lenders under the Jamaica
        Loans;

       

      (d)  Section 6.1(r) of the Credit Agreement shall be amended and restated in its entirety to read as follows:

       

      “(r)  the Parent Guaranty, dated as of October 10, 2017, by Atlantic Power Holdings SRL, to and for the benefit of JAMALCO (the “JAMALCO Unsecured Guaranty”), but only for so long as
        Atlantic Power Holdings SRL has no material assets, liabilities or operations other than Capital Stock in South Power Holdings and the JAMALCO Unsecured Guaranty; and”;

       

      (e)  Section 6.2(bb) of the Credit Agreement shall be amended and restated in its entirety to read as follows:

       

      “(bb)  Liens granted by Atlantic Power Holdings SRL on the Capital Stock of South Power Holdings to secure the Jamaica Loans;” and

       

      (f)  Definitions of the following terms shall be deemed to be included in Section 1.1 of the Credit Agreement as defined in this Third Amendment: “Jamaica Indenture,” “Jamaica
        Loans,” “JAMALCO Unsecured Guaranty” and “South Power Holdings.”

       

      
        
          

        3

      

      SECTION 3.  Representations and Warranties.  To induce the other parties hereto to enter into this Third Amendment, each of Holdings, the Borrower and each other Loan Party hereby
        represents and warrants to each of the Lenders and the Administrative Agent that, as of the Third Amendment Effective Date: (i) this Third Amendment (A) has been duly authorized by all necessary corporate or other organizational and, if required,
        member or shareholder action of such Person, (B) has been duly executed and delivered by such Person and (C) constitutes a legal, valid and binding obligation of such Person enforceable against each of them in accordance with its terms, except as
        enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by equitable principles (whether enforcement is sought by proceedings in
        equity or at law); (ii)(A) the representations and warranties set forth in Section 3 of the Credit Agreement or in any other Loan Document are true and correct in all material respects on and as of the date hereof and the Third Amendment Effective
        Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties are true and correct in all material
        respects on and as of such earlier date; provided that, in each case, such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof and (B)
        on and as of the date hereof and the Third Amendment Effective Date, no Default or Event of Default has occurred and is continuing;  (iii) immediately prior to the Third Amendment Effective Date, South Power Holdings does not own, lease or hold any
        material assets other than (1) the Clarendon Combined Heat and Power Facility, (2) the Steam Supply Agreement, (3) the Power Purchase Agreement, dated as of August 23, 2017, between JPS and South Power Holdings, (4) permits, leases, easements and
        regulatory approvals related to items (1) through (3), and (5) the Transferred Assets; (iv) the Transferred Assets include all of the assets constituting the pipeline that delivers natural gas to the Clarendon Combined Heat and Power Facility; and
        (v) immediately prior to the Third Amendment Effective Date, Atlantic Power Holdings SRL has no material assets, liabilities or operations other than Capital Stock of South Power Holdings and the JAMALCO Unsecured Guaranty.

       

      SECTION 4.  Effectiveness.  The effectiveness of the amendments and other modifications to the Credit Agreement and the other Loan Documents set
        forth in Section 2 above is subject to the satisfaction or waiver of all of the following conditions precedent:

       

      (a)  the Administrative Agent (or its counsel) shall have received this Third Amendment, executed and delivered by a duly authorized officer or signatory of Holdings, the
        Borrower, each other Loan Party and the Required Lenders;

       

      (b)  South Power Holdings shall have received the Net Cash Proceeds from the Tranche 1A Bonds and the Tranche 2 Bonds (each as defined in the Jamaica Indenture), and South Power
        Holdings shall immediately distribute at least $50,000,000 of such Net Cash Proceeds to any Loan Party (for the avoidance of doubt, other than South Power Holdings);

       

      (c)  the Administrative Agent shall have received a certificate, executed and delivered by a duly authorized Responsible Officer of the Borrower, certifying as to the satisfaction
        of (x) the matters set forth in clauses (d) and (e) below and (y) the conditions precedent set forth in this Section 4, all in form and substance reasonably satisfactory to the Administrative Agent;

       

      (d)  as of the Third Amendment Effective Date, the representations and warranties contained in Section 3 herein shall be true and correct in all material respects;

       

      
        
          

        4

      

      (e)  no event shall have occurred and be continuing or would result from the transactions contemplated by this Third Amendment (after giving effect thereto) that would constitute
        a Default or an Event of Default; and

       

      (f)  the Borrower shall have paid to the Administrative Agent all fees and expenses due and payable as of the Third Amendment Effective Date pursuant to Section 6 hereof and
        Section 9.5 of the Credit Agreement for which reasonably detailed invoices have been presented to the Borrower at least two Business Days prior to the Third Amendment Effective Date.

       

      The Administrative Agent shall notify the Borrower and the Lenders of the Third Amendment Effective Date, and such notice shall be conclusive and binding.

       

      SECTION 5.  Reaffirmation of Guaranty and Security.  Other than, after the Third Amendment Effective Date, South Power Holdings:

       

      (a)  Each Loan Party, by its signature below, hereby agrees that, notwithstanding the effectiveness of this Third Amendment, the Security Documents and the Guarantee Agreements
        continue to be in full force and effect.

       

      (b)  Each Loan Party, by its signature below, affirms and confirms (i) its obligations under each of the Loan Documents to which it is a party, (ii) its guarantee of the
        Obligations and (iii) the pledge of and/or grant of a security interest in its assets as Collateral to secure the Obligations, all as provided in the Loan Documents as originally executed, and acknowledges and agrees that such guarantee, pledge
        and/or grant continue in full force and effect in respect of, and to secure, the Obligations under the Credit Agreement and the other Loan Documents.

       

      SECTION 6.  Fees and Expenses.  The Loan Parties agree to reimburse the Administrative Agent for its reasonable and documented out-of-pocket costs and expenses incurred in connection with
        this Third Amendment and the other Loan Documents, including the fees, charges and disbursements of Skadden, Arps, Slate, Meagher & Flom LLP, Patterson Mair Hamilton, Appleby (Bermuda) Limited, Chancery Chambers and Adsuar Muñiz Goyco Seda
        & Pérez-Ochoa, P.S.C.

       

      SECTION 7.  Non-Reliance on Administrative Agent.  Each Lender represents to the Administrative Agent that it has, independently and without reliance upon the Administrative Agent or any
        other Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and
        their Affiliates and made its own decisions to enter into this Third Amendment.  Each Lender also represents that it will, independently and without reliance upon the Administrative Agent or any other Lender, and based on such documents and
        information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Third Amendment, the Credit Agreement and the other Loan Documents, and to make such
        investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their Affiliates.

       

      
        
          

        5

      

      SECTION 8.  Counterparts.  This Third Amendment may be executed by one or more of the parties to this Third Amendment on any number of
        counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page to this Third Amendment by facsimile or other electronic transmission shall be effective as
        delivery of a manually executed counterpart hereof. A set of the copies of this Third Amendment signed by all the parties shall be lodged with the Borrower and the Administrative Agent.

       

      SECTION 9.  Governing Law.  THIS THIRD AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS THIRD AMENDMENT SHALL BE GOVERNED BY, AND
        CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

       

      SECTION 10.  Submission To Jurisdiction; Waivers.  Each party hereto hereby irrevocably and unconditionally:

       

      (a)  submits for itself and its Property in any legal action or proceeding relating to this Third Amendment and the other Loan Documents to which it is a party, or for recognition
        and enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any
        thereof;

       

      (b)  consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or
        proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

       

      (c)  agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form
        of mail), postage prepaid, to its address set forth in Section 9.2 of the Credit Agreement or at such other address of which the Administrative Agent shall have been notified pursuant thereto;

       

      (d)  agrees that the Administrative Agent and the Lenders retain the right to bring proceedings against any Loan Party in the courts of any other jurisdiction in connection with
        the exercise of any rights under any Security Document or the enforcement of any judgment;

       

      (e)  agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction;
        and

       

      (f)  waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section 7 any special,
        exemplary, punitive or consequential damages.

       

      SECTION 11.  Headings.  The headings of this Third Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning
        hereof.

       

      SECTION 12.  Effect of Third Amendment.  Except as expressly set forth herein, this Third Amendment shall not by implication or otherwise limit,
        impair, constitute a waiver of, or otherwise affect the rights and remedies of the Lenders, the Administrative Agent, or the Loan Parties under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect
        any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein
        shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in
        similar or different circumstances.  This Third Amendment shall apply and be effective only with respect to the provision of the Credit Agreement specifically referred to herein.  After the date hereof, any reference to the Credit Agreement shall
        mean the Credit Agreement, as modified hereby, and this Third Amendment shall constitute a “Loan Document” for all purposes under the Credit Agreement and the other Loan Documents.

       

      [Remainder of this page intentionally left blank]

      

      

      
        
          

        6

      

      IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be duly executed by their duly authorized officers, all as of the date and year first above written.

       

      	 	
              NEW FORTRESS INTERMEDIATE LLC

            
	 	 	 	 	 
	 	
              By:

            	
              

              

            	 	 
	 	 	
              Name:

            	
              Christopher Guinta

            
	 	 	
              Title:

            	
              Chief Financial Officer

            
	 	 
	 	
              NFE ATLANTIC HOLDINGS LLC

            
	 	 	 	 	 
	 	
              By:

            	
              

              

            	 	 
	 	 	
              Name:

            	
              Christopher Guinta

            
	 	 	
              Title:

            	
              Chief Financial Officer

            

       

      

      
        
          	
                  [NFE Third Amendment Agreement]

                

        

        
          

        7

      

      	 	
              AMERICAN LNG MARKETING LLC

              AMERICAN NATURAL GAS HOLDINGS LLC

              ATLANTIC ENERGY HOLDINGS LLC

              BRADFORD COUNTY DEVELOPMENT HOLDINGS LLC

              BRADFORD COUNTY GPF HOLDINGS LLC

              BRADFORD COUNTY GPF PARTNERS LLC

              BRADFORD COUNTY POWER HOLDINGS LLC

              BRADFORD COUNTY POWER PARTNERS LLC BRADFORD COUNTY REAL ESTATE HOLDINGS LLC

              BRADFORD COUNTY REAL ESTATE PARTNERS LLC

              BRADFORD COUNTY TRANSPORT HOLDINGS LLC

              BRADFORD COUNTY TRANSPORT PARTNERS LLC ENERGY TRANSPORT SOLUTIONS LLC

              ISLAND LNG LLC

              LNG HOLDINGS (FLORIDA) LLC

              LNG HOLDINGS LLC

              NEW FORTRESS ENERGY MARKETING LLC

              NFE BCS HOLDINGS (A) LLC

              NFE BCS HOLDINGS (B) LLC

              NFE EQUIPMENT HOLDINGS LLC

              NFE EQUIPMENT PARTNERS LLC

              NFE ISO HOLDINGS LLC

              NFE ISO PARTNERS LLC

              NFE LOGISTICS HOLDINGS LLC

              NFE MANAGEMENT LLC

              NFE MEXICO HOLDINGS LLC

              NFE PLANT DEVELOPMENT HOLDINGS LLC

              NFE SOUTH POWER HOLDINGS LLC

              NFE TRANSPORT HOLDINGS LLC

              NFE TRANSPORT PARTNERS LLC

              TICO DEVELOPMENT PARTNERS HOLDINGS LLC TICO DEVELOPMENT PARTNERS LLC

              NFE GHANA PARTNERS LLC

              NFE GHANA HOLDINGS LLC

              AMERICAN ENERGY LOGISTICS SOLUTIONS LLC

              LA DEVELOPMENT HOLDINGS LLC

              LA REAL ESTATE HOLDINGS LLC

              LA REAL ESTATE PARTNERS LLC

              PA DEVELOPMENT HOLDINGS LLC

              PA REAL ESTATE HOLDINGS LLC

              PA REAL ESTATE PARTNERS LLC

              NFE HONDURAS HOLDINGS LLC

            
	 	   
	 	
              By:

            	
              

              

            	 
	 	 	
              Name:

              

            	Christopher Guinta	 
	 	 	
              Title:

              

            	Chief Financial Officer	 

       

      

      
        
          	
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        8

      

      
        
          
            
              	 	
                      ATLANTIC DISTRIBUTION HOLDINGS SRL

                      ATLANTIC ENERGY HOLDINGS LIMITED

                      ATLANTIC POWER HOLDINGS SRL

                      ATLANTIC TERMINAL HOLDINGS LIMITED

                      ATLANTIC POWER HOLDINGS LIMITED

                      NFE NORTH HOLDINGS LIMITED [BERMUDA]

                      NFE NORTH INFRASTRUCTURE LIMITED

                      NFE NORTH TRADING LIMITED

                      NFE SOUTH HOLDINGS LIMITED [BERMUDA]

                      NFE SOUTH POWER TRADING LIMITED

                      NFE SOUTH TRADING LIMITED

                      NFE NORTH DISTRIBUTION LIMITED

                      NFE NORTH HOLDINGS LIMITED [JAMAICA]

                      NFE NORTH TRANSPORT LIMITED

                      NFE SOUTH HOLDINGS LIMITED [JAMAICA]

                      NFE SOUTH POWER HOLDINGS LIMITED

                    
	 	

                    	 	 	 
	 	
                      By:

                    	
                      

                      

                    	 	 
	 	 	
                      Name:

                    	
                      Christopher Guinta

                    
	 	 	
                      Title:

                    	
                      Director

                    

            

          

        

      

       

      

      
        
          	
                  [NFE Third Amendment Agreement]

                

        

        
          

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                          AMAUNET S. DE R.L. DE C.V.

                          NFENERGIA MEXICO S. DE R.L. DE C.V.

                          NFE PACIFICO LAP S. DE R.L. DE C.V.

                          NFENERGIA GN DE BCS, S. DE R.L. DE C.V.

                        

                      

                    

                  
	 	

                  	 	 	 
	 	
                    By:

                  	
                    

                    

                  	 	 
	 	 	
                    Name:

                  	
                    Christopher Guinta

                  
	 	 	
                    Title:

                  	
                    Legal Representative

                  

          

        

      

       

      

      
        
          	
                  [NFE Third Amendment Agreement]

                

        

        
          

        10

      

      
        
          	 	
                  
                    
                      NFE MEXICO HOLDINGS B.V.
                        NFE MEXICO HOLDINGS PARENT B.V.

                      

                    

                  

                
	 	

                	 	 	 
	 	
                  By:

                	
                  

                  

                	 	 
	 	 	
                  Name:

                	
                  Christopher Guinta

                
	 	 	
                  Title:

                	
                  Authorized Signatory

                

        

      

       

      

      
        
          	
                  [NFE Third Amendment Agreement]

                

        

        
          

        11

      

      
        	 	
                
                  
                    NFENERGIA LLC

                    SOLUCIONES DE ENERGIA LIMPIA PR LLC

                  

                

              
	 	

              	 	 	 
	 	
                By:

              	
                

                

              	 	 
	 	 	
                Name:

              	
                Christopher Guinta

              
	 	 	
                Title:

              	
                Authorized Signatory

              

      

       

      

      
        
          	
                  [NFE Third Amendment Agreement]

                

        

        
          

        12

      

      
        
          	 	
                  
                    NFENERGIA HONDURAS S. DE R.L.

                  

                
	 	

                	 	 	 
	 	
                  By:

                	
                  

                  

                	 	 
	 	 	
                  Name:

                	
                  Christopher Guinta

                
	 	 	
                  Title:

                	
                  Authorized Signatory

                

          

          

        

      

      
        
          	
                  [NFE Third Amendment Agreement]

                

        

        
          

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                    NFE IRELAND FINANCING DESIGNATED ACTIVITY COMPANY

                    NFE SHANNON HOLDINGS LIMITED

                    SHANNON LNG LIMITED

                    SHANNON LNG ENERGY LIMITED

                  

                

              
	 	

              	 	 	 
	 	
                By:

              	
                

                

              	 	 
	 	 	
                Name:

              	
                Christopher Guinta

              
	 	 	
                Title:

              	
                
                  Director

                

              

      

       

      

      
        
          	
                  [NFE Third Amendment Agreement]

                

        

        
          

        14

      

      
        
          	 	
                  
                    
                      MORGAN STANLEY SENIOR FUNDING, INC., as Administrative Agent and a Lender

                    

                  

                
	 	

                	 	 	 
	 	
                  By:

                	
                  

                  

                	 	 
	 	 	
                  Name:

                	
                  

                  

                
	 	 	
                  Title:

                	
                  

                  

                

        

      

      

      

      
        
          	
                  [NFE Third Amendment Agreement]

                

        

        
          

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              BARCLAYS BANK PLC, as a Lender

            
	 	

            
	 	
              By:

            	 	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

      

      

      
        
          	
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        16

      

      
        ANNEX A

         

        

      

      Transferred Assets

       

      All assets of South Power Holdings used in connection with, related to, appurtenant to, or affecting the pipeline to be used to supply natural gas to the Power Plant (as defined in the Jamaica
        Indenture) (but excluding the Power Plant itself) including all contracts related thereto, which assets include, in any event, all of the following:

      

      

      
        
          	

                	1.	
                  Natural gas pipeline from the Old Harbour floating storage and regasification terminal in Portland Bight to the Power Plant and the JAMALCO refinery, including all meters and related equipment (collectively,
                    the “Pipeline”);

                

        

      

      

      

      
        
          	

                	2.	
                  All land rights used in connection with, related to, appurtenant to, or affecting the Pipeline, including all licenses, easements, and rights of way;

                

        

      

      

      

      
        
          	

                	3.	
                  All permits and regulatory approvals used in connection with, related to, appurtenant to, or affecting the Pipeline;

                

        

      

      

      

      
        
          	

                	4.	
                  All contracts for engineering, procurement, installation and related services for the Pipeline;

                

        

      

      

      

      
        
          	

                	5.	
                  All contracts for the installation of an HDPE water pipeline for JAMALCO adjacent to the Pipeline; and

                

        

      

       

      
        	 	
                6.

              	
                All other assets used in connection with, related to, appurtenant to, or affecting the Pipeline (but excluding the Power Plant itself).EX-10.1

 Exhibit 10.1 

September 6, 2019 
 STRICTLY PRIVATE &
CONFIDENTIAL 
 Dear Jacky, 
 We have received your
resignation letter dated Sept 4, 2019. This notification outlines the terms governing your employment termination with Yum China Holdings, Inc. (the Company). 

Termination Date 
 As mutually agreed, your
effective termination date is Oct 16, 2019, with last day of service on Oct 15, 2019. 
 Discretionary Provisions 

Subject to your signing the Post-Termination Agreement (attached) and acknowledging acceptance of the terms of the letter by Sept 6, 2019 and the Compensation
Committee’s final approval, the Company will provide you: 
  

	(1)	 Pro-rated 2019 annual cash bonus for Jan 1 to Oct 15, 2019, payable in
Feb 2020 after the Team Factor and Individual Factors results are confirmed. Payment is subject to tax withholding. 

  

	(2)	 A one-time discretionary payment of HK$ 2,613,000 on Oct 31, 2019.

 ORSO Provident Fund 
 The
ORSO fund scheme is administered by Mercer Consulting. HR (ext.7811) will provide you the necessary assistance in your application for the transfer / withdrawal of the vested ORSO Plan benefit. 

Outstanding Annual Leave 
 Please seek the approval
of your manager in making proper arrangement to clear your outstanding leave, if any. Should you have any outstanding annual leave as of October 15, 2019, you will receive payment in lieu together with your last payment, in compliance with
legal requirement. 
 Repatriation 
 Repatriation
will be administered in accordance with the Company’s policies.  
 Pro-rated 2019 Home Leave
Passage Budget 
 You may utilize the unused home leave budget balance, if any, in accordance with the home leave policy until Oct 15, 2019. Any
unused portion of the budget after this date will be forfeited. 

 Company Housing 

HR Admin will co-ordinate with you regarding the termination of the Company house lease, on a mutually agreed date,
within one week from Oct 16, 2019. 
 Medical and Insurance Coverage 

Your medical and life insurance coverage will continue until Oct 15, 2019. 

Long Term Incentive Plan - Stock Appreciation Rights (SAR)/ Restricted Stock Units 

You have the right to exercise, with pre-clearance from Legal pursuant to the Company’s trading policies, the
vested YUMC SARS within 90 days from your last day of service, after which such vested SAR will be forfeited. All Restricted Stock Units held by you that are not vested as of your last service date will be forfeited. Gains, if any, from LTI awarded
after 2017 are subject to China IIT withholding, while gains realized from LTI granted in 2017 and before are subject to Hong Kong tax withholding under the grandfathered provision. 

On behalf of the management team, we would like to thank you for your past contributions. And we wish you the very best in your future endeavors. 

Yours sincerely, 
 For and on behalf of Yum China Holdings, Inc

  

	
	 /s/ Aiken Yuen

	Aiken Yuen
	Chief People Officer

	
	      

 Please acknowledge acceptance of the above terms by signing and returning the duplicate of this letter and the attached Post
Termination Agreement to the undersigned by Sept 6, 2019. 
 Acknowledged and accepted by: 

 

							
	 /s/ Jacky Lo
	 		  	 September 6, 2019
	  	
	Jacky Lo	 		  	Date	  	

			
	

	  	 **Private & Confidential**

 September 6, 2019 

Yum China Holdings, Inc. 

POST-TERMINATION AGREEMENT 
 Yum China
Holdings, Inc. (“the Company”), and Jacky Lo (“Employee”) agree that this Post-Termination Agreement (“Agreement”) sets out their complete agreement and understanding regarding the post-termination undertakings
of the Employee in favor of the Company 
  

	1.	 The Company and Employee agree that Employee’s employment with the Company will terminate on
October 16, 2019 (“Termination Date”) with last employment date on Oct 15, 2019. 

  

	2.	 In consideration of the discretionary prorated bonus (Jan 1 – Oct 15, 2019) and a one-time discretionary payment of HK$2,613,000 to the Employee, the Employee undertakes to the Company as follows: 

  

	 	(a)	 Non-Disclosure: Employee will keep secret and shall not, after
the Termination Date, use for his own or another’s advantage, or reveal to any person, firm, company or organization, and shall use his best endeavors to prevent the publication or disclosure of any of the trade secrets, business methods,
computer systems or any information, in written or electronic form, (including strategic plans and annual operating plans but excluding any such information or data which enters the public domain except through default) which he knew or ought
reasonably to have known to be confidential concerning the business or affairs of the Company or any of its affiliates, vendors, customers or other third parties, so far as they came to his knowledge during his employment with the Company.

 The restriction in this clause shall not apply to any disclosure or use authorized by the management of the Company or
required by law and it shall not apply so as to prevent the Employee from using his own personal skill in any business in which he may lawfully engage (subject to clause hereunder) after the Employee’s employment with the Company is terminated.
In addition, the foregoing shall not limit the Employee’s ability to report possible violations of law or regulation to, or file a charge or complaint with, the United States Securities and Exchange Commission. 

 

	 	(b)	 Non-Disparagement: Employee will not do or say anything which
criticizes or disparages the Company or its affiliates, its management, practices, or product which disrupts or impairs the Company’s normal, ongoing business operations; or which harms the Company’s reputation with its employees,
customers, suppliers, or the public. 

  

	 	(c)	 Non-Solicitation: For a period of two (2) years after the
Termination Date, the Employee will not endeavor (whether on his own account or for any other person, firm, company or organization) to entice away from the Company or any of its affiliates in the People’s Republic of China, Hong Kong and US
any employee employed as at the Termination Date or at any time within a period of 12 months prior to that date and with whom the Employee has worked or with whom he has had personal contact as part of his employment with the Company.

	 	(d)	 Non-Competition: In connection with the discretionary payment
under Section 2 which is acknowledged as inclusive of any legally mandated economic compensation for the enforcement of this non-compete covenant, the Employee, for a period of
one (1) year after the Termination Date, shall not be engaged or interested (whether as principal, servant, agent, consultant or otherwise) in any trade or business in the People’s Republic of China and Hong Kong he has been involved or
with which he has been concerned as part of his employment with the Company and its affiliates and which is similar to, and by virtue of its location, competes with, any trade or business being carried on as at the Termination Date by the Company or
any of its affiliates i.e. the restaurant industry including without limitation McDonalds’, Burger King, Starbucks, Wendy’s, Popeye, Domino’s Pizza, Papa John’s, Little Caesars Pizza, Dicos and Subway. 

Should the Employee violate and/or fail to comply with the above stated non-compete terms within one
year from the effective date of termination, the Employee is required to pay the Company liquidated damage of three (3) times the gross non-compete compensation (discretionary payment under
Section 2). If the total damage and/or cost to the Company (including but not limited to the loss of business, revenue and profit, and fees incurred in recouping the appropriate compensation from the Employee) is higher, the Company reserves
the right to seek further compensation from the Employee. 
  

	 	(e)	 Release: The Employee waives all rights and claims he may have for any personal or monetary relief
arising from the Employee’s employment with the Company, or the termination of employment with the Company. 

  

	 	(f)	 Reasonable Cooperation in Investigation and Litigation: In the event the Company becomes involved in
investigations, audits or inquiries, tax examinations or legal proceedings, by a judicial, governmental or regulatory authority, of any nature, related directly or indirectly to events that occurred during your employment and about which the
Employee has or may have personal knowledge, the Employee agrees that he will be reasonably available upon reasonable notice from the Company, to answer discovery requests, give depositions or testify, with respect to matters of which the Employee
has or may have knowledge as a result of or in connection with his employment relationship with the Company. In performing the obligations under this section, the Employee agrees that he will truthfully, forthrightly and completely provide the
information reasonably requested. The Company will reimburse the Employee for all reasonable out-of-pocket expenses incurred by the Employee in connection with such
cooperation. The parties understand and acknowledge that this provision is not intended to restrict the Employee’s ability to become employed by another employer or unreasonably interfere with such employment. 

 

	3.	 The Employee confirms and acknowledges that: 

 

	 	(i)	 each of the clauses in this Agreement constitutes an entirely separate and independent restriction on the
Employee; 

  

	 	(ii)	 that the duration, extent and application of each of the restrictions are no greater than is necessary for the
protection of the interests of the Company and its affiliates; 

  

	 	(iii)	 if any such restriction shall be adjudged by any court of competent jurisdiction to be void and unenforceable
as going beyond what is reasonable in the circumstances for the protection of the interests of the Company but would be valid if part of the wording thereof was deleted and/or the period thereof was reduced and/or the area dealt with thereby was
reduced, the said restriction shall apply within the jurisdiction of that court with modifications as may be necessary to make it valid and effective. 

	4.	 None of the restrictions in this Agreement shall prevent the Employee from having an interest in any securities
(such term to include stocks, shares and debentures) unless they are securities to which both of the following conditions apply: 

  

	 	(a)	 the company which issued securities carries on, or is the holding company of a company carrying on, a business
which is similar to or in competition with any business for the time being carried on by the Company or any of its affiliates; and 

  

	 	(b)	 the securities are not listed or quoted on a Stock Exchange or, if they are so listed and quoted, they
represent more than one per cent in nominal value or (in the case of securities not having a nominal value) in number of a class of securities which are so listed and quoted. 

 

	5.	 The undertakings given in clause 2 of this Agreement are given in favor of Company and its affiliates.

  

	6.	 Employee acknowledges that: 

 

	 	A.	 EMPLOYEE HAS READ THIS AGREEMENT AND UNDERSTANDS ITS TERMS AND CONDITIONS. 

 

	 	B.	 EMPLOYEE HAS HAD THE OPPORTUNITY TO OBTAIN ALL ADVICE AND INFORMATION EMPLOYEE DEEMS NECESSARY ABOUT MATTERS
RELATING TO THIS AGREEMENT. 

  

	 	C.	 EMPLOYEE HAS NOT BEEN COERCED INTO SIGNING THIS AGREEMENT AND VOLUNTARILY AGREES TO ABIDE BY ITS TERMS BECAUSE
THEY ARE SATISFACTORY. 

  

	 	D.	 NO PROMISE OR INDUCEMENT OF ANY KIND HAS BEEN MADE TO EMPLOYEE BY THE COMPANY OR ANYONE ELSE TO CAUSE EMPLOYEE
TO SIGN THIS AGREEMENT, EXCEPT AS SET FORTH ABOVE. 

  

	 	E.	 THE PAY AND OTHER BENEFITS THAT EMPLOYEE WILL RECEIVE AS A RESULT OF SIGNING THIS AGREEMENT ARE ADEQUATE AND
THE ONLY CONSIDERATION FOR THIS AGREEMENT. 

  

			
	 /s/ Jacky Lo
	 	 September 6, 2019

	Employee: Jacky Lo	 	Date
		
	 /s/ Aiken Yuen
	 	 September 6, 2019

	Aiken Yuen	 	Date
	For and on behalf of	 	
	Yum China Holdings, Inc.

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