Document:

Exhibit 4.40

 

Execution Version

 

 

Dated 17 May  2019

 

Facility Agreement

relating to a HK$7,653,750,000 term loan facility

 

between

 

Hong Kong Cingleot Investment Management Limited

as Company

 

Alibaba Group Holding Limited

as Guarantor

 

Bank of China (Hong Kong) Limited 
 Citigroup Global Markets Asia Limited 
 DBS Bank Ltd. 
 The Hongkong and Shanghai Banking Corporation Limited 
 Mizuho Bank, Ltd.

as Mandated Lead Arrangers

 

The Financial Institutions Listed in Schedule 1

as Original Lenders

 

and

 

Citicorp International Limited

as Agent

 

White & Case 
 9th Floor Central Tower 
 28 Queen’s Road Central 
 Hong Kong

 

 

Table of Contents

 

	
 
    	
 
    	
Page
    
	
1.
    	
Definitions and   Interpretation
    	
1
    
	
2.
    	
The Facility
    	
20
    
	
3.
    	
Purpose
    	
21
    
	
4.
    	
Conditions of   Utilisation
    	
21
    
	
5.
    	
Utilisation
    	
22
    
	
6.
    	
Repayment
    	
24
    
	
7.
    	
Prepayment and   Cancellation
    	
24
    
	
8.
    	
Interest
    	
30
    
	
9.
    	
Interest Periods
    	
30
    
	
10.
    	
Changes to the   Calculation of Interest
    	
31
    
	
11.
    	
Fees
    	
32
    
	
12.
    	
Tax Gross Up and   Indemnities
    	
33
    
	
13.
    	
Increased Costs
    	
36
    
	
14.
    	
Mitigation by the   Lenders
    	
38
    
	
15.
    	
Other Indemnities
    	
39
    
	
16.
    	
Costs and Expenses
    	
40
    
	
17.
    	
Guarantee and Indemnity
    	
41
    
	
18.
    	
Representations
    	
43
    
	
19.
    	
Information   Undertakings
    	
47
    
	
20.
    	
General Undertakings
    	
51
    
	
21.
    	
Events of Default
    	
54
    
	
22.
    	
Changes to the Lenders
    	
56
    
	
23.
    	
Assignment or Transfer   by the Obligors
    	
60
    
	
24.
    	
Disclosure of   Information
    	
60
    
	
25.
    	
Role of the   Administrative Parties
    	
63
    
	
26.
    	
Sharing among the   Finance Parties
    	
73
    
	
27.
    	
Payment Mechanics
    	
74
    
	
28.
    	
Set-Off
    	
78
    
	
29.
    	
Notices
    	
78
    
	
30.
    	
Calculations and Certificates
    	
80
    
	
31.
    	
Partial invalidity
    	
80
    
	
32.
    	
Remedies and waivers
    	
80
    
	
33.
    	
Amendments and waivers
    	
80
    
	
34.
    	
Counterparts
    	
85
    

 

i

 

	
 
    	
 
    	
Page
    
	
35.
    	
Contractual Recognition   of Bail-in
    	
85
    
	
36.
    	
Governing Law
    	
86
    
	
37.
    	
Enforcement
    	
86
    
	
Schedule 1
    	
The Original Lenders
    	
88
    
	
Schedule 2
    	
Conditions Precedent
    	
89
    
	
Schedule 3
    	
Requests
    	
90
    
	
Part 1
    	
Utilisation Request
    	
90
    
	
Part 2
    	
Selection Notice
    	
90
    
	
Schedule 4
    	
Form of Transfer   Certificate
    	
91
    
	
Schedule 5
    	
Form of Confidentiality   Undertaking
    	
92
    
	
Schedule 6
    	
Account Details
    	
93
    
				

 

ii

 

THIS AGREEMENT is dated 17 May 2019 and made between:

 

(1)                                 HONG KONG CINGLEOT INVESTMENT MANAGEMENT LIMITED, a limited liability company incorporated under the laws of Hong Kong with company registration number 2714411 (the “Company”);

 

(2)                                 ALIBABA GROUP HOLDING LIMITED, a limited liability company incorporated under the laws of the Cayman Islands with company registration number 90722 (the “Guarantor”);

 

(3)                                 BANK OF CHINA (HONG KONG) LIMITED; CITIGROUP GLOBAL MARKETS ASIA LIMITED; DBS BANK LTD.; THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED and MIZUHO BANK, LTD. (whether acting individually or together, the “Mandated Lead Arrangers”);

 

(4)                                 THE FINANCIAL INSTITUTIONS listed in Schedule 1 (The Original Lenders) as lenders (the “Original Lenders”); and

 

(5)                                 CITICORP INTERNATIONAL LIMITED as agent of the Finance Parties (other than itself) (the “Agent”).

 

IT IS AGREED as follows:

 

1.                                      Definitions and Interpretation

 

1.1                               Definitions

 

In this Agreement:

 

“Acceptable Bank” means:

 

(a)                                 a bank or financial institution which has a rating for its long-term unsecured and non credit-enhanced debt obligations of BBB- or higher by Standard & Poor’s Rating Services or Fitch Ratings Ltd or Baa3 or higher by Moody’s Investor Services Limited or a comparable rating from an internationally recognised credit rating agency; or

 

(b)                                 any other bank or financial institution approved by the Agent (acting on the instructions of the Majority Lenders).

 

“Accounting Principles” means:

 

(a)                                 in relation to the Company, the generally accepted accounting principles in Hong Kong; and

 

(b)                                 in relation to the Guarantor, US GAAP or IFRS.

 

“Administrative Party” means each of the Agent and the Mandated Lead Arrangers.

 

“Affiliate” means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company.

 

“Agreement for Sub-Lease” means the agreement for sub-lease dated 4 July 2018 between the Airport Authority as sub-lessor and the Company as tenant to design, finance, construct, manage and operate the Development and which sets out (among other things) the specifications and requirements of the Airport Authority regarding the Development. For the purpose of this Agreement, if the Sub-Lease is granted by

 

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the Airport Authority to the Company as tenant, any reference to “Agreement for Sub-Lease” in this Agreement shall be deemed to be a reference to both the Agreement for Sub-Lease and the Sub-Lease.

 

“Airport Authority” means the Airport Authority of Hong Kong, a statutory body established and operating pursuant to the Airport Authority Ordinance (Cap. 483 of the laws of Hong Kong).

 

“APLMA” means the Asia Pacific Loan Market Association Limited. 

 

“Authorisation” means:

 

(a)                                 an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation, lodgement or registration; or

 

(b)                                 in relation to anything which will be fully or partly prohibited or restricted by law if a Governmental Agency intervenes or acts in any way within a specified period after lodgement, filing, registration or notification, the expiry of that period without intervention or action.

 

“Availability Period” means the period from and including the date of this Agreement to and including the date falling 59 months after the date of this Agreement.

 

“Available Commitment” means a Lender’s Commitment minus:

 

(a)                                 the aggregate amount of its participation in any outstanding Loans; and

 

(b)                                 in relation to any proposed Utilisation, the aggregate amount of its participation in any Loans that are due to be made on or before the proposed Utilisation Date.

 

“Available Facility” means the aggregate for the time being of each Lender’s Available Commitment.

 

“Bail-In Action” means the exercise of any Write-down and Conversion Powers.

 

“Bail-In Legislation” means:

 

(a)                                 in relation to an EEA Member Country which has implemented, or which at any time implements, Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms, the relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time; and

 

(b)                                 in relation to any other state, any analogous law or regulation from time to time which requires contractual recognition of any Write-down and Conversion Powers contained in that law or regulation.

 

“Break Costs” means the amount (if any) by which:

 

(a)                                 the interest (excluding the Margin) which a Lender should have received pursuant to the terms of this Agreement for the period from the date of receipt of all or any part of the principal amount of a Loan or Unpaid Sum to the last day of the current Interest Period in respect of that Loan or Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the last day of that Interest Period;

 

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exceeds:

 

(b)                                 the amount of interest which that Lender would be able to obtain by placing an amount equal to the principal amount or Unpaid Sum received by it on deposit with a leading bank in the Relevant Interbank Market for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period.

 

“Budget” means, on any date, an itemised budget relating to the Project which sets out:

 

(a)                                 the costs and expenses incurred in connection with the Project for the three-month period ending on such date (with copies of all invoices, receipts, fee notes, debit notes or similar invoicing documents);

 

(b)                                 the source of funds for payment of the costs and expenses incurred in connection with the Project for the three-month period ending on such date (including reconciliation of those costs to previous iterations in the previous Budget); and

 

(c)                                  a forecast or estimate of costs and expenses to be incurred in connection with the Project for the six-month period commencing from that date,

 

including, in each case, amendments or supplements that are notified to the Agent in accordance with paragraph (d) of Clause 19.5 (Information on the Project).

 

“Buildings Ordinance” means the Buildings Ordinance (Cap. 123 of the Laws of Hong Kong).

 

“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general business in Hong Kong.

 

“Cainiao” means Cainiao Smart Logistics Network Limited, a company incorporated in the Cayman Islands with limited liability with company number 300080.

 

“Capital Stock” of any person means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) equity of such person, including any Preferred Shares and limited liability or partnership interests (whether general or limited), but excluding any debt securities convertible or exchangeable into such equity.

 

“CNAC Facility” means the up to HK$4,121,250,000 term loan facility made or to be made available under a facility agreement entered or to be entered into between the Company as borrower, China National Aviation Corporation (Group) Limited as guarantor and the financial institutions named therein in the agreed form, save for amendments or supplements that are made in accordance with the Intercreditor Agreement.

 

“Commitment” means:

 

(a)                                 in relation to an Original Lender, the amount set opposite its name under the heading Commitment in Schedule 1 (The Original Lenders) and the amount of any other Commitment transferred to it under this Agreement; and

 

(b)                                 in relation to any other Lender, the amount of any Commitment transferred to it under this Agreement,

 

to the extent not cancelled, reduced or transferred by it under this Agreement.

 

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“Competitors” means Amazon (including Joyo.com), Apple, Baidu, eBay (including PayPal), Facebook, Alphabet (including Google), Yahoo!, Microsoft, Tencent (including Tenpay), JD.com (formerly, 360Buy), Wal-Mart Stores, Inc., Yihaodian, Xiaomi, 58.com, Yahoo! JAPAN (including SoftBank Group and Softbank Vision Fund), Qihoo 360, Vipshop, Rakuten, Paypal, Ping An (including Lufax but excluding Ping An Bank), SEA Group, UnionPay, Uber, Go-Jek, NetEase and each of their controlled Affiliates.

 

“Confidentiality Undertaking” means a confidentiality undertaking substantially in a recommended form of the APLMA as set out in Schedule 5 (Form of Confidentiality Undertaking) or in any other form agreed between the Company and the Agent and in any event the benefit of which accrues to the Company as a third party beneficiary.

 

“Consolidated Affiliated Entity” of any person means any corporation, association or other entity which is or is required to be consolidated with such person under Accounting Standards Codification subtopic 810-10, Consolidation: Overall (including any changes, amendments or supplements thereto) or, if such person prepares its financial statements in accordance with accounting principles other than U.S. GAAP, the equivalent of Accounting Standards Codification subtopic 810-10, Consolidation: Overall under such accounting principles.

 

“Construction Contract” means the main contract(s) entered or to be entered into between the Company and a Construction Contractor providing for piling work, superstructure, substructure and civil engineering works connected with the Project, and for the construction of the Development (and where the context so admits, any substitute building contract or contracts entered into by the Company).

 

“Construction Contractor” means the main contractor(s) (who is independent from the Company, the Guarantor, China National Aviation Corporation (Group) Limited and Cainiao) appointed or to be appointed by the Company for the Project or any substitute main contractor (who is independent from the Company, the Guarantor, China National Aviation Corporation (Group) Limited and Cainiao) to be appointed by the Company for the Project.

 

“Controlled Entity” of any person means a Subsidiary or a Consolidated Affiliated Entity of such person.

 

“Default” means an Event of Default or any event or circumstance specified in Clause 21 (Events of Default) which would (with the expiry of a grace period, the giving of notice or the making of any determination (other than as to materiality) referred to in Clause 21 (Events of Default)) be an Event of Default.

 

“Defaulting Lender” means any Lender:

 

(a)                                 which has failed to make its participation in a Loan available or has notified the Agent or the Company (which has notified the Agent) that it will not make its participation in a Loan available by the Utilisation Date of that Loan in accordance with Clause 5.4 (Lenders’ participation);

 

(b)                                 which has otherwise rescinded or repudiated a Finance Document; or

 

(c)                                  with respect to which an Insolvency Event has occurred and is continuing, 

 

unless, in the case of paragraph (a) above:

 

(i)                                     its failure to pay is caused by:

 

4

 

(A)                               administrative or technical error; or

 

(B)                               a Disruption Event; and,

 

payment is made within two Business Days of its due date; or

 

(ii)                                  the Lender is disputing in good faith whether it is contractually obliged to make the payment in question.

 

“Design Consultant” means the design consultancy firm (which is an Authorised Person (as defined in the Buildings Ordinance) and is independent from the Company, the Guarantor, China National Aviation Corporation (Group) Limited and Cainiao) appointed or to be appointed by the Company for the Project or any substitute design consultancy firm (which has an Authorised Person (as defined in the Buildings Ordinance) and is independent from the Company, the Guarantor, China National Aviation Corporation (Group) Limited and Cainiao) to be appointed by the Company for the Project.

 

“Design Contract” means the design consultancy contract entered or to be entered into between the Company and the Design Consultant for the design of the Development arising out of or in connection with the Project.

 

“Development” means the buildings, erections and works which are to be designed, constructed and completed by the Company in, on, at or under the Property in accordance with the Agreement for Sub-Lease (including without limitation the foundations thereof and all fixtures, as may be extended, varied or modified from time to time).

 

“Development Consent” means any Authorisation required under any law or regulation in connection with the Project, including any rights granted or to be granted by the Airport Authority to the Company (or, if applicable, any Group Member or any Principal Controlled Entity) for the implementation of the Project.

 

“Development Right Document” means:

 

(a)                                 the Agreement for Sub-Lease; or

 

(b)                                 any Development Consent. 

 

“Disruption Event” means either or both of:

 

(a)                                 a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with the Facility (or otherwise in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the Parties; and

 

(b)                                 the occurrence of any other event which results in a disruption (of a technical or systems-related nature) to the treasury or payments operations of a Party preventing that, or any other Party:

 

(i)                                     from performing its payment obligations under the Finance Documents; or

 

(ii)                                  from communicating with other Parties in accordance with the terms of the Finance Documents,

 

5

 

and which (in either such case) is not caused by, and is beyond the control of, the Party whose operations are disrupted.

 

“Distributable Reserves” means, in relation to a Major Material Subsidiary incorporated in the PRC which is a WFOE, the retained earnings of such WFOE that may in accordance with any applicable PRC law and regulation and PRC GAAP be distributed to its shareholders outside of the PRC after taking into account all Taxes payable under PRC law and all statutory reserve requirements in the PRC.

 

“Dormant Subsidiary” means a Group Member which does not trade (for itself or as agent for any person) and does not own, legally or beneficially, any material assets (including, without limitation, indebtedness owed to it).

 

“EBITDA” means the consolidated income before income tax and share of net losses or gains of equity investees of the Group (including the results from any discontinued operations):

 

(a)                                 before deducting any interest, commission, fees, discounts, prepayment fees, premiums or charges and other finance payments whether paid, payable or capitalised by any Group Member (calculated on a consolidated basis);

 

(b)                                 not including any accrued interest owing to any Group Member;

 

(c)                                  before taking into account any Exceptional Items;

 

(d)                                 before taking into account any unrealised gains or losses on any derivative instrument or similar financial instrument (but excluding any derivative instrument which is accounted for on a hedge accounting basis);

 

(e)                                  before taking into account any gain or loss arising from an upward or downward revaluation of any other asset at any time after the date to which the Original Financial Statements were made up;

 

(f)                                   before taking into account the charge to profit represented by expensing of stock based compensation;

 

(g)                                  after adding back any amount attributable to the amortisation, depreciation or impairment of assets of the Group Members; and

 

(h)                                 after excluding any Excluded Earnings,

 

in each case, to the extent added, deducted or taken into account, as the case may be, for the purposes of determining income before income tax and share of net losses or gains of equity investees of the Group.

 

“EEA Member Country” means any member state of the European Union, Iceland, Liechtenstein and Norway.

 

“EU Bail-In Legislation Schedule” means the document described as such and published by the Loan Market Association (or any successor person) from time to time.

 

“Event of Default” means any event or circumstance specified as such in Clause 21 (Events of Default).

 

“Exceptional Items” means any exceptional, one off, non-recurring or extraordinary items including those arising on:

 

6

 

(a)                                 the restructuring of the activities of an entity and reversals of any provisions for the cost of restructuring;

 

(b)                                 disposals, revaluations or impairment of non-current assets; and

 

(c)                                  disposals of assets associated with discontinued operations. 

 

“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

 

“Excluded Earnings” means any earnings (whether positive or negative) of the Finance Companies and the Project Companies.

 

“Extended Loan” means a Loan or part of a Loan in respect of which the Company and the relevant Lender(s) have agreed to amend certain terms pursuant to an Extension Agreement.

 

“Extension Agreement” has the meaning given to that term in Clause 33.3 (Extension of Commitments).

 

“Extension Amendment Agreement” has the meaning given to that term in Clause 33.3 (Extension of Commitments).

 

“Facility” means the term loan facility made available under this Agreement as described in Clause 2.1 (The Facility).

 

“Facility Office” means the office or offices notified by a Lender to the Agent in writing on or before the date it becomes a Lender (or, following that date, by not less than five Business Days’ written notice) as the office or offices through which it will perform its obligations under this Agreement.

 

“Fee Letter” means any letter or letters referring to this Agreement or the Facility between one or more Administrative Parties and the Company setting out any of the fees referred to in Clause 11 (Fees).

 

“Final Repayment Date” means the date falling sixty (60) months after the date of this Agreement.

 

“Finance Company” means:

 

(a)                                 深圳市一达通企业服务有限公司 (Shen Zhen One Touch Business Service Ltd.) [B69] and each of its Subsidiaries as at the date of this Agreement; and

 

(b)                                 any other Group Member whose primary function is the provision of merchant, consumer or other credit finance and/or related credit services (including provision of guarantees), which has obtained a small loans lending or other lending, credit, guarantee or comparable licence from the relevant regulator.

 

“Finance Document” means this Agreement, any Fee Letter, the Intercreditor Agreement, any Utilisation Request, any Extension Amendment Agreement and any other document designated as such by the Company and the Agent (or by the Company and the Lenders, provided that the Agent receives notification of such designation).

 

“Finance Party” means the Agent, a Mandated Lead Arranger or a Lender.

 

7

 

“Governmental Agency” means any government or any governmental agency, semi-governmental or judicial entity or authority (including, without limitation, any stock exchange or any self-regulatory organisation established under statute).

 

“Group” means the Guarantor and its Subsidiaries from time to time (and, for the avoidance of doubt, includes the Company).

 

“Group Member” means a member of the Group.

 

“Group Structure Chart” means the summary group structure chart in the agreed form.

 

“HIBOR” means, in relation to any Loan:

 

(a)                                 the applicable Screen Rate;

 

(b)                                 (if no Screen Rate is available for the Interest Period of that Loan) the Interpolated Screen Rate for that Loan; or

 

(c)                                  if:

 

(i)                                     no Screen Rate is available for HK Dollars; or

 

(ii)                                  no Screen Rate is available for the Interest Period of that Loan and it is not possible to calculate an Interpolated Screen Rate for that Loan,

 

the Reference Bank Rate,

 

as of, in the case of paragraphs (a) and (c) above, 11.00 a.m. on the Quotation Day for HK Dollars and for a period comparable to the Interest Period of that Loan and, in the case of paragraphs (a) to (c) above, if any such rate is below zero, HIBOR will be deemed to be zero.

 

“HK Dollar” or “HK$” denotes the lawful currency of Hong Kong.

 

“Holding Company” means, in relation to a person, any other person in respect of which it is a Subsidiary.

 

“Hong Kong” means the Hong Kong Special Administrative Region of the People’s Republic of China.

 

“IFRS” means International Financial Reporting Standards as issued by the International Accounting Standards Board.

 

“Impaired Agent” means the Agent at any time when:

 

(a)                                 it has failed to make (or has notified a Party that it will not make) a payment required to be made by it under the Finance Documents by the due date for payment;

 

(b)                                 the Agent otherwise rescinds or repudiates a Finance Document;

 

(c)                                  (if the Agent is also a Lender) it is a Defaulting Lender under paragraph (a) or (b) of the definition of “Defaulting Lender”; or

 

(d)                                 an Insolvency Event has occurred and is continuing with respect to the Agent;

 

unless, in the case of paragraph (a) above:

 

8

 

(i)                                     its failure to pay is caused by:

 

(A)                               administrative or technical error; or

 

(B)                               a Disruption Event; and

 

payment is made within two Business Days of its due date; or

 

(ii)                                  the Agent is disputing in good faith whether it is contractually obliged to make the payment in question.

 

“Indebtedness” means any and all obligations of a person for money borrowed which, in accordance with US GAAP, would be reflected on the balance sheet of such person as a liability on the date as of which Indebtedness is to be determined.

 

“Indenture” means the indenture dated as of 28 November 2014 in connection with the US$8,000,000,000 notes issued by the Guarantor.

 

“Indirect Tax” means any goods and services tax, consumption tax, value added tax or any tax of a similar nature.

 

“Industrial Competitor” means any person which is, or is an Affiliate of, a Competitor, or any person that is acting on behalf of or fronting for any such person, provided that a person will not be considered to be “fronting for” or “acting on behalf of” any such person if such person has confirmed in writing to the relevant Finance Party with a copy to the Company that it is not fronting for or acting on behalf of a Competitor or an Affiliate of a Competitor.

 

“Insolvency Event” in relation to a Finance Party means that the Finance Party:

 

(a)                                 is dissolved (other than pursuant to a consolidation, amalgamation or merger);

 

(b)                                 becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due;

 

(c)                                  makes a general assignment, arrangement or composition with or for the benefit of its creditors;

 

(d)                                 institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organisation or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official;

 

(e)                                  has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition is instituted or presented by a person or entity not described in paragraph (d) above and:

 

(i)                                     results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation; or

 

9

 

(ii)                                  is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof;

 

(f)                                   has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger);

 

(g)                                  seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets;

 

(h)                                 has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter;

 

(i)                                     causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in paragraphs (a) to (h) above; or

 

(j)                                    takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts.

 

“Intellectual Property” means:

 

(a)                                 any patents, trade marks, service marks, designs, business names, copyrights, database rights, design rights, domain names, moral rights, inventions, confidential information, knowhow and other intellectual property rights and interests (which may now or in the future subsist), whether registered or unregistered; and

 

(b)                                 the benefit of all applications and rights to use such assets of each Group Member (which may now or in the future subsist).

 

“Intercreditor Agreement” means the intercreditor agreement to be entered into on or prior to the initial Utilisation Date between, among others, the Agent, the Lenders, the agent under the CNAC Facility and the lenders under the CNAC Facility in the agreed form.

 

“Interest Period” means, in relation to a Loan, the period determined in accordance with Clause 9 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with Clause 8.3 (Default interest).

 

“Interpolated Screen Rate” means, in relation to HIBOR for any Loan, the rate (rounded to the same number of decimal places as the two relevant Screen Rates) which results from interpolating on a linear basis between:

 

(a)                                 the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Interest Period of that Loan; and

 

(b)                                 the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Interest Period of that Loan,

 

each as of 11.00 a.m. on the Quotation Day for the currency of that Loan. 

 

“Lender” means:

 

(a)                                 any Original Lender; and

 

10

 

(b)                                 any bank or financial institution (or, with the prior written consent of the Company, other person) which has become a Party in accordance with Clause 22 (Changes to the Lenders),

 

which in each case has not ceased to be a Party in accordance with the terms of this Agreement.

 

“Loan” means a loan made or to be made under the Facility or the principal amount outstanding for the time being of that loan.

 

“Main Development Area” has the meaning ascribed to the term “Main Development Area” in the Agreement for Sub-Lease in the agreed form.

 

“Majority Lenders” means a Lender or Lenders whose Commitments aggregate more than 50% of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than 50% of the Total Commitments immediately prior to the reduction).

 

“Major Material Subsidiary” means, at any time, a Group Member which has earnings before interest, tax, depreciation and amortisation calculated on the same basis as EBITDA representing five per cent. (5%) or more of EBITDA, calculated on a consolidated basis, but excluding any Project Company, any Finance Company and any Dormant Subsidiary.

 

“Management” means the chief executive officer, the chief financial officer and the group general counsel of the Guarantor.

 

“Margin” means 0.92 per cent. per annum.

 

“Material Adverse Effect” means a material adverse effect on:

 

(a)                                 the business, operations, property, condition (financial or otherwise) or results of operations of the Group taken as a whole;

 

(b)                                 the ability of any of the Obligors to perform its payment obligations under the Finance Documents taking into account any support that it may reasonably expect from any other Group Member; or

 

(c)                                  the validity or enforceability of, or the rights or remedies of any Finance Party under, any of the Finance Documents other than to the extent not materially adverse to the interests of the Finance Parties under the Finance Documents.

 

“Money Laundering” means:

 

(a)                                 the conversion or transfer of property, knowing it is derived from a criminal offence, for the purpose of concealing or disguising its illegal origin or of assisting any Person who is involved in the commission of the crime to evade the legal consequences of its actions;

 

(b)                                 the concealment or disguise of the true nature, source, location, disposition, movement, right with respect to, or ownership of, property knowing that it is derived from a criminal offence; or

 

(c)                                  the acquisition, possession or use of property knowing at the time of its receipt that it is derived from a criminal offence.

 

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“Month” means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that:

 

(a)                                 (subject to paragraph (c) below) if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day;

 

(b)                                 if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month; and

 

(c)                                  if an Interest Period begins on the last Business Day of a calendar month, that Interest Period shall end on the last Business Day in the calendar month in which that Interest Period is to end.

 

The above rules will apply only to the last Month of any period.

 

“New Lender” has the meaning given to that term in Clause 22 (Changes to the Lenders).

 

“Non-recourse Obligation” means Indebtedness or other obligations substantially related to:

 

(a)                                 the acquisition of assets not previously owned by an Obligor or any of its Controlled Entities; or

 

(b)                                 the financing of a project involving the purchase, development, improvement or expansion of properties of an Obligor or any of its Controlled Entities,

 

as to which the obligee with respect to such Indebtedness or obligation has no recourse to any Obligor or any of its Controlled Entities or to any Obligor’s or any such Obligor’s assets other than the assets which were acquired with the proceeds of such transaction or the project financed with the proceeds of such transaction (and the proceeds thereof).

 

“Obligors” means the Company and the Guarantor and “Obligor” means each one of them.

 

“OFAC” means the Office of Foreign Assets Control of the U.S. Department of the Treasury.

 

“Officer” means:

 

(a)                                 in relation to the Company, any director of the Company; and

 

(b)                                 in relation to the Guarantor, the Executive Chairman of the Board, the Executive Vice Chairman, the Chief Executive Officer, the Chief Financial Officer or the Corporate Secretary of the Guarantor or, in the event that the Guarantor is a partnership or a limited liability company that has no such officers, a person duly authorised under applicable law by the general partner, managers, members or a similar body to act on behalf of the Guarantor.

 

“Officer’s Certificate” means a certificate signed by an Officer of the relevant Obligor.

 

“Original Financial Statements” means the audited consolidated financial statements of the Group for the financial year ended 31 March 2018.

 

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“Participant” means each person to whom a Lender has transferred all or any of its obligations, economic interest or other interest under the Finance Documents by way of a Participation Agreement.

 

“Participation Agreement” means each agreement or letter (including, without limitation, a fee letter) between a Lender and a Participant under which the Lender has transferred all or any of its obligations, economic interest or other interest under the Finance Documents, directly or indirectly, whether by sub-participation, credit derivative (including a credit default swap or credit linked note), total return swap or in any other way but excluding any transfer or novation of any of a Lender’s Commitments and/or rights and/or obligations in accordance with Clause 22.1 (Transfers by the Lenders).

 

“Party” means a party to this Agreement.

 

“PRC” means the People’s Republic of China, excluding for these purposes Hong Kong, the Macau Special Administrative Region and Taiwan.

 

“PRC GAAP” means generally accepted accounting principles of the PRC.

 

“Practical Completion” means the state of completion of the Main Development Area of the Development in accordance with the specifications and requirements of the Agreement for Sub-Lease, as evidenced by the issue of an occupation permit by the Building Authority pursuant to the Buildings Ordinance and the issue of the certificate of completion by the Airport Authority in respect of the Main Development Area.

 

“Preferred Shares” applied to the Capital Stock of any corporation, means Capital Stock of any class or classes (however designated) that is preferred as to the payment of dividends upon liquidation, dissolution or winding up.

 

“Principal Controlled Entities” means:

 

(a)                                 Cainiao; and

 

(b)                                 any one of the Guarantor’s Controlled Entities:

 

(i)            as to which one or more of the following conditions is/are satisfied:

 

(A)                               its total revenue or (in the case of one of the Guarantor’s Controlled Entities which has one or more Controlled Entities) consolidated total revenue attributable to the Group is at least 5% of the consolidated total revenue of the Group;

 

(B)                               its net profit or (in the case of one of the Guarantor’s Controlled Entities which has one or more Controlled Entities) consolidated net profit attributable to the Group (in each case before taxation and exceptional items) is at least 5% of the consolidated net profit (before taxation and exceptional items) of the Group; or

 

(C)                               its net assets or (in the case of one of the Guarantor’s Controlled Entities which has one or more Controlled Entities) consolidated net assets attributable to the Group (in each case after deducting minority interests in Subsidiaries) are at least 10% of its consolidated net assets of the Group

 

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(after deducting minority interests in Subsidiaries of the Guarantor),

 

all as calculated by reference to the then latest audited financial statements (consolidated or, as the case may be, unconsolidated) of the Controlled Entity of the Guarantor and the then latest audited consolidated financial statements of the Guarantor;

 

provided that, in relation to paragraphs (A), (B) and (C) above:

 

(1)                                      for the purpose of this definition only, “Group” means the Guarantor and its Controlled Entities; and

 

(2)

 

(I)                                   in the case of a corporation or other business entity becoming a Controlled Entity after the end of the financial period to which the Guarantor’s latest consolidated audited accounts relate, the reference to the then latest consolidated audited accounts of the Guarantor and the Controlled Entities for the purposes of the calculation above shall, until the Guarantor consolidated audited accounts for the financial period in which the relevant corporation or other business entity becomes a Controlled Entity are issued, be deemed to be a reference to the then latest consolidated audited accounts of the Guarantor and the Controlled Entities adjusted to consolidate the latest audited accounts (consolidated in the case of a Controlled Entity which itself has Controlled Entities) of such Controlled Entity in such accounts;

 

(II)                              if at any relevant time in relation to the Guarantor or any Controlled Entity which itself has Controlled Entities, no consolidated accounts are prepared and audited, total revenue, net profit or net assets of the Guarantor and/or any such Controlled Entity shall be determined on the basis of pro forma consolidated accounts prepared for this purpose by or on behalf of the Guarantor;

 

(III)                         if at any relevant time in relation to any Controlled Entity, no accounts are audited, its net assets (consolidated, if appropriate) shall be determined on the basis of pro forma accounts (consolidated, if appropriate) of the relevant Controlled Entity prepared for this purpose by or on behalf of the Guarantor; and

 

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(IV)                          if the accounts of any Controlled Entity (not being a Controlled Entity referred to in proviso (I) above) are not consolidated with the Guarantor’s accounts, then the determination of whether or not such Controlled Entity is a Principal Controlled Entity shall be based on a pro forma consolidation of its accounts (consolidated, if appropriate) with the Guarantor’s consolidated accounts (determined on the basis of the foregoing); or

 

(ii)                                  that Principal Controlled Entity merges with or into, or to which is transferred all or substantially all of the assets of a Controlled Entity which immediately prior to the transfer was a Principal Controlled Entity; provided that, with effect from such transfer, the Controlled Entity which so transfers its assets and undertakings shall cease to be a Principal Controlled Entity (but without prejudice to paragraph (i) above) and the Controlled Entity to which the assets are so transferred shall become a Principal Controlled Entity.

 

“Prohibited Transferee” means, in respect of any transfer or sub-participation:

 

(a)                                 an Industrial Competitor; or

 

(b)                                 any person which is not a bank or financial institution and which has not been specifically approved in writing by the Company.

 

“Project” means the design, construction, management, operation and maintenance of the Development.

 

“Project Company” means:

 

(a)                                 Alibaba Group Properties Limited [A08] and each of its Subsidiaries as at the date of this Agreement; and

 

(b)                                 any other Group Member which is (i) established or acquired after the date of this Agreement; (ii) capitalised with equity funded by equity or shareholder loans from, or on behalf of, the Guarantor or one of its Subsidiaries; and (iii) established or acquired to develop a specific asset or project.

 

“Project Costs” means any cost or expenses in respect of the Project as specified in the Budget(s).

 

“Project Development Document” means any contract or agreement entered or to be entered into between the Company or a member of the Group and a Project Development Party in relation to the Project (including, for the avoidance of doubt, any Construction Contract and Design Contract).

 

“Project Development Party” means:

 

(a)                                 any Construction Contractor;

 

(b)                                 the Design Consultant;

 

(c)                                  any architect, engineer, surveyor or consultant appointed by the Company in respect of the Project if the fees payable under the relevant Project

 

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Development Document is reasonably expected to exceed HK$5,000,000 per year; or

 

(d)                                 any other person designated as such by the Agent and the Company.

 

“Project Development Plan” means the strategy, plan and blueprint for the Project including any key milestone dates under the Project Development Documents and the estimated date of Practical Completion.

 

“Property” means L933, Kwo Lo Wan in Chek Lap Kok Lot No.1 RP & Extension of the Hong Kong International Airport, as more particularly described in the definition of “Site” in the Agreement for Sub-Lease.

 

“Property Insurances” means any contract of insurance required under Clause 20.9 (Property Insurances).

 

“Quotation Day” means:

 

(a)                                 in relation to any period for which an interest rate is to be determined the first day of that period, unless market practice differs in the Relevant Interbank Market in which case the Quotation Day will be determined by the Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Quotation Day will be the last of those days); and

 

(b)                                 in relation to any Interest Period the duration of which is selected by the Agent pursuant to Clause 8.3 (Default interest), such date as may be determined by the Agent (acting reasonably).

 

“Reference Bank Rate” means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at its request by the Reference Banks as the rate at which the relevant Reference Bank could borrow funds in the Relevant Interbank Market, in HK Dollars and for the relevant period, were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in HK Dollars and for that period.

 

“Reference Banks” means, subject to Clause 25.19 (Reference Banks), the principal Hong Kong offices of any banks as may be appointed by the Agent with the consent of the Company (such consent not to be unreasonably withheld).

 

“Relevant Indebtedness” means any Indebtedness which is in the form of, or represented or evidenced by, bonds, notes, debentures, or other securities which for the time being are, or are intended to be or are commonly, quoted, listed or dealt in or traded on any stock exchange or over-the-counter or other securities market, but shall exclude any bank debt, bank loans or securitisations.

 

“Relevant Interbank Market” means the Hong Kong interbank market.

 

“Relevant Jurisdiction” means, in relation to an Obligor:

 

(a)                                 its jurisdiction of incorporation; and

 

(b)                                 any jurisdiction where it conducts a material part of its business.

 

“Resolution Authority” means any body which has authority to exercise any Write-down and Conversion Powers.

 

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“Repeating Representations” means each of the representations set out in Clauses 18.1 (Status) to 18.6 (Governing law and enforcement), Clause 18.9 (No default), Clause 18.10 (No misleading information), paragraphs (a) and (b) of Clause 18.11 (Financial statements), Clause 18.19 (Good title to assets), paragraph (b) of Clause 18.20 (Bribery, Anti-corruption) and paragraph (b) of Clause 18.22 (Money Laundering).

 

“Representative” means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian.

 

“Sanctions” means any sanctions, restrictions or embargoes imposed or enforced by the United Nations, the European Union, the State Secretariat for Economic Affairs of Switzerland, OFAC, the State Department of the United States, HM Treasury of the United Kingdom, the Hong Kong Monetary Authority, the Monetary Authority of Singapore and the Department of Foreign Affairs and Trade of Australia and any other sanctions administered by any governmental entity which is notified to a Group Member by the Agent in accordance with Clause 20.4 (Sanctions).

 

“Screen Rate” means the Hong Kong interbank offered rate for HK Dollars for the relevant period displayed on page HKABHIBOR of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate) or on the appropriate page of such other information service which publishes that rate from time to time in place of Thomson Reuters. If such page or service ceases to be available, the Agent may specify another page or service displaying the relevant rate after consultation with the Company.

 

“SEC” means the United States Securities and Exchange Commission, as constituted from time to time.

 

“Security” means a mortgage, charge, pledge, lien or other security interest securing any obligation of any person.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Selection Notice” means a notice substantially in the form set out in Part 2 of Schedule 3 (Requests) given in accordance with Clause 9 (Interest Periods).

 

“Separate Loans” has the meaning given to such term in Clause 6.2 (Repayment).

 

“Sub-Lease” means the sub-lease of the Property and the Development to be granted by the Airport Authority as sub-lessor to the Company as tenant under the terms of the Agreement for Sub-Lease.

 

“Subsidiary” of any person means:

 

(a)                                 any corporation, association or other business entity (other than a partnership, joint venture, limited liability company or similar entity) of which more than 50% of the total ordinary voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof (or persons performing similar functions); or

 

(b)                                 any partnership, joint venture, limited liability company or similar entity of which more than 50% of the capital accounts, distribution rights, total equity and voting interests or general or limited partnership interests, as applicable,

 

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is, in the case of (a) and (b), voting at the time owned or controlled, directly or indirectly, by (1) such person; (2) such person and one or more Subsidiaries of such person; or (3) one or more Subsidiaries of such person. For the avoidance of doubt, references to a Subsidiary or Subsidiaries exclude any Finance Company or Project Company whose financial results are not consolidated with those of the Guarantor in accordance with the Accounting Principles.

 

“Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure by an Obligor to pay or any delay by an Obligor in paying any of the same).

 

“Tax Deduction” has the meaning given to such term in Clause 12.1 (Tax definitions).

 

“Total Commitments” means the aggregate of the Commitments (being HK$7,653,750,000 at the date of this Agreement).

 

“Transfer Certificate” means a certificate substantially in the form set out in Schedule 4 (Form of Transfer Certificate) or any other form agreed between the Agent and the Company.

 

“Transfer Date” means, in relation to a transfer, the later of:

 

(a)                                 the proposed Transfer Date specified in the relevant Transfer Certificate; and

 

(b)                                 the date on which the Agent executes the relevant Transfer Certificate.

 

“Unpaid Sum” means any sum due and payable but unpaid by an Obligor under the Finance Documents.

 

“US Dollar” or “US$” denotes the lawful currency of the United States of America.

 

“US GAAP” means generally accepted accounting principles in the United States of America.

 

“Utilisation” means a utilisation of the Facility.

 

“Utilisation Date” means the date of a Utilisation, being the date on which the relevant Loan is to be made.

 

“Utilisation Request” means a notice substantially in the form set out in Part 1 of Schedule 3 (Requests).

 

“WFOE” means a wholly foreign owned enterprise incorporated in the PRC.

 

“Write-down and Conversion Powers” means:

 

(a)                                 in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule from time to time, the powers described as such in relation to that Bail-In Legislation in the EU Bail-In Legislation Schedule; and

 

(b)                                 in relation to any other applicable Bail-In Legislation:

 

(i)                                     any powers under that Bail-In Legislation to cancel, transfer or dilute shares issued by a person that is a bank or investment firm or other financial institution or affiliate of a bank, investment firm or other financial institution, to cancel, reduce, modify or change the form of a liability of such a person or any contract or instrument under which

 

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that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers; and

 

(ii)                                  any similar or analogous powers under that Bail-In Legislation.

 

1.2                               Construction

 

(a)                                 Unless a contrary indication appears, any reference in this Agreement to:

 

(i)                                     any “Administrative Party”, the “Agent”, any “Mandated Lead Arranger”, any “Finance Party”, any “Lender”, any “Obligor”, any “Project Development Party” or any “Party” shall be construed so as to include its successors in title, permitted assigns and permitted transferees;

 

(ii)                                  a document in “agreed form” is a document which is in the form previously agreed in writing by or on behalf of the Company and the Mandated Lead Arrangers prior to the date hereof or, on behalf of the Company and the Agent (acting on the instructions of the Majority Lenders);

 

(iii)                               “assets” includes present and future properties, revenues and rights of every description;

 

(iv)                              a “Finance Document” or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended, novated, supplemented, extended or restated;

 

(v)                                 “including” shall be construed as “including without limitation” (and cognate expressions shall be construed similarly);

 

(vi)                              “indebtedness” includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent;

 

(vii)                           a Lender’s “participation” in a Loan or Unpaid Sum includes an amount representing the fraction or portion (attributable to such Lender by virtue of the provisions of this Agreement) of the total amount of such Loan or Unpaid Sum and the Lender’s rights under this Agreement in respect thereof;

 

(viii)                        a “person” includes any individual, firm, company, corporation, government, state or agency of a state or any association, trust, joint venture, consortium or partnership (whether or not having separate legal personality);

 

(ix)                              a “regulation” includes any regulation, rule, official directive, request or guideline (whether or not having the force of law, but if not having the force of law, which is generally complied with by those to whom it is addressed) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation;

 

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(x)                                 any notation after the name of a Group Member refers to the number for that Group Member as specified in the Group Structure Chart;

 

(xi)                              a provision of law is a reference to that provision as amended or re-enacted;

 

(xii)                           a time of day is a reference to Hong Kong time; and

 

(xiii)                        “calculated on a consolidated basis” is a reference to any calculation or determination with reference to the then relevant latest consolidated financial statements of the Group.

 

(b)                                 Section, Clause and Schedule headings are for ease of reference only.

 

(c)                                  Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement.

 

(d)                                 A Default or an Event of Default is “continuing” if it has not been remedied or waived.

 

(e)                                  No person shall incur any personal liability whatsoever in connection with the issuance of a certificate, on behalf of an Obligor, pursuant to the terms of a Finance Document.

 

1.3                               Third party rights

 

(a)                                 Unless expressly provided to the contrary in a Finance Document a person who is not a Party has no right under the Contracts (Rights of Third Parties) Ordinance (Cap. 623 of the laws of Hong Kong) (the “Third Parties Ordinance”) to enforce or to enjoy the benefit of any term of this Agreement.

 

(b)                                 Notwithstanding any term of any Finance Document, the consent of any third person who is not a Party is not required to rescind or vary this Agreement at any time.

 

(c)                                  Any person described in paragraph (b) of Clause 25.10 (Exclusion of liability) may, subject to this Clause 1.3 and the Third Parties Ordinance, rely on any Clause of this Agreement which expressly confers rights on it.

 

1.4                               Intercreditor Agreement

 

This Agreement is subject to the terms of the Intercreditor Agreement.

 

2.                                      The Facility

 

2.1                               The Facility

 

Subject to the terms of this Agreement, the Lenders make available to the Company a HK Dollar term loan facility in an aggregate amount equal to the Total Commitments.

 

2.2                               Finance Parties’ rights and obligations

 

(a)                                 The obligations of the Finance Parties under the Finance Documents are several. Failure by a Finance Party to perform its obligations under the

 

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Finance Documents does not affect the obligations of any other Party under the Finance Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents.

 

(b)                            The rights of the Finance Parties under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance Party from an Obligor is a separate and independent debt in respect of which a Finance Party shall be entitled to enforce its rights in accordance with paragraph (c) below. The rights of each Finance Party include any debt owing to that Finance Party under the Finance Documents and, for the avoidance of doubt, any part of a Loan or any other amount owed by an Obligor which relates to a Finance Party’s participation in the Facility or its role under a Finance Document (including any such amount payable to the Agent on its behalf) is a debt owing to that Finance Party by that Obligor.

 

(c)                             A Finance Party may, except as specifically provided in the Finance Documents, separately enforce its rights under or in connection with the Finance Documents.

 

3.                                      Purpose

 

3.1                               Purpose

 

The Company shall apply all amounts borrowed by it under the Facility towards:

 

(a)                                 financing the Project Costs in respect of the Project; and

 

(b)                                 payment of any fees, costs and expenses in connection with the Facility or the Finance Documents.

 

3.2                               Monitoring

 

No Finance Party is bound to monitor or verify the application of any amount borrowed pursuant to this Agreement.

 

4.                                      Conditions of Utilisation

 

4.1                               Initial conditions precedent

 

The Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation) in relation to any Utilisation if on or before the date of the initial Utilisation Request the Agent has received all of the documents and other evidence listed in Schedule 2 (Conditions Precedent) in form and substance satisfactory to the Agent (acting reasonably), and the Agent shall notify the Company and the Lenders promptly upon being so satisfied.

 

4.2                               Further conditions precedent

 

The Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation) if on the date of the Utilisation Request and on the proposed Utilisation Date:

 

(a)                                 no Default is continuing or would result from the proposed Loan and none of the circumstances described in Clause 7.4 (Mandatory Prepayment — Change

 

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of Control) and Clause 7.5 (Mandatory Prepayment — Development Right Early Termination Event) has occurred; and

 

(b)                                 the Repeating Representations to be made by each Obligor are true in all material respects.

 

4.3                            Maximum number of Loans

 

(a)                                 The Company may not deliver a Utilisation Request if as a result of the proposed Utilisation more than 13 Loans would be outstanding (or such greater number of Loans as may be agreed by the Agent in its sole discretion).

 

(b)                                 The Company may not request that a Loan be divided.

 

(c)                                  No Separate Loan or Extended Loan shall be taken into account in this Clause 4.3.

 

5.                                   Utilisation

 

5.1                            Delivery of a Utilisation Request

 

The Company may utilise the Facility by delivery to the Agent of a duly completed Utilisation Request not later than 11.00 a.m. three (3) Business Days prior to the proposed Utilisation Date or by such date as the Agent (acting on the instructions of all the Lenders) may agree with the Company.

 

5.2                            Completion of a Utilisation Request

 

(a)                                 Each Utilisation Request is irrevocable and will not be regarded as having been duly completed unless:

 

(i)                                     the proposed Utilisation Date is a Business Day within the Availability Period;

 

(ii)                                  the proposed Interest Period complies with Clause 9 (Interest Periods); and

 

(iii)                               it is accompanied by evidence of the purpose of the Loan.

 

(b)                                 In relation to each Utilisation Request, evidence of the purpose of the Loan will comprise:

 

(i)                                     a copy of the then current Budget; and

 

(ii)                                  an Officer’s Certificate from the Company (in form and substance satisfactory to the Agent) confirming that:

 

(A)                               such Budget is correct, complete and in full force and effect as at the date of that Utilisation Request; and

 

(B)                               the cost or expenses to be financed or refinanced by the proposed Loan is included in that Budget and has not been funded through a prior Utilisation.

 

(c)                                  Only one Loan may be requested in each Utilisation Request.

 

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5.3                               Currency and amount

 

(a)                                 The currency specified in a Utilisation Request must be HK Dollars.

 

(b)                                 The amount of the proposed Loan must be a minimum of HK$100,000,000, or, if less, the Available Facility.

 

5.4                               Lenders’ participation

 

(a)                                 If the conditions set out in Clause 4 (Conditions of Utilisation) and Clauses 5.1 (Delivery of a Utilisation Request) to 5.3 (Currency and amount) above have been met, each Lender shall make its participation in each Loan available by the Utilisation Date through its Facility Office.

 

(b)                                 The amount of each Lender’s participation in each Loan will be equal to the proportion borne by its Available Commitment to the Available Facility immediately prior to making the Loan.

 

(c)                                  The Agent shall notify each Lender of the amount of each Loan and the amount of its participation in that Loan and if different, the amount of that participation to be made available in accordance with Clause 27.1 (Payments to the Agent), in each case by no later than 11.00 a.m. two (2) Business Days prior to the proposed Utilisation Date.

 

5.5                               Cancellation of Available Facility

 

The Available Commitments which, at that time, are unutilised shall be immediately cancelled at 5.00 p.m. on the last day of the Availability Period.

 

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6.                                      Repayment

 

6.1                               Subject to Clause 6.2 below, the Company shall repay each Loan on the Final Repayment Date.

 

6.2                               At any time when a Lender becomes a Defaulting Lender, the maturity date of each of the participations of that Defaulting Lender in the Loans then outstanding will be automatically extended to the Final Repayment Date and will be treated as separate Loans (the “Separate Loans”).

 

6.3                               The Company may prepay a Separate Loan in accordance with paragraph (h) of Clause 7.7 (Right of prepayment and cancellation in relation to a single Lender). The Agent will forward a copy of a prepayment notice received in accordance with paragraph (h) of Clause 7.7 (Right of prepayment and cancellation in relation to a single Lender) to the Defaulting Lender concerned as soon as practicable on receipt.

 

6.4                               Interest in respect of a Separate Loan will accrue for successive Interest Periods selected by the Company by the time and date specified by the Agent (acting reasonably) and will be payable by the Company to the Agent (for the account of that Defaulting Lender) on the last day of each Interest Period of that Loan.

 

6.5                               The terms of this Agreement relating to Loans generally shall continue to apply to Separate Loans other than to the extent inconsistent with Clauses 6.2 to 6.4 above, in which case those paragraphs shall prevail in respect of any Separate Loan.

 

7.                                      Prepayment and Cancellation

 

7.1                               Illegality

 

If, at any time, it is or will become unlawful in any applicable jurisdiction for a Lender to perform any of its obligations as contemplated by this Agreement or to fund or maintain its participation in any Loan:

 

(a)                                 that Lender shall promptly notify the Agent upon becoming aware of that event;

 

(b)                                 upon the Agent notifying the Company, the Commitment of that Lender will be immediately cancelled; and

 

(c)                                  the Company shall repay that Lender’s participation in the Loans made to the Company on the last day of the Interest Period for each Loan occurring after the Agent has notified the Company or, if earlier, the date specified by the Lender in the notice delivered to the Agent (being no earlier than the last day of any applicable grace period permitted by law).

 

7.2                               Voluntary cancellation

 

The Company may, if it gives the Agent not less than five (5) Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, reduce the Available Facility to zero or by such amount (being a minimum amount of HK$50,000,000) as the Company may specify in such notice. Any such reduction under this Clause 7.2 shall reduce the Commitments of the Lenders rateably.

 

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7.3          Voluntary Prepayment

 

The Company may, if it gives the Agent not less than five (5) Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part of a Loan (but if in part, being an amount that reduces the Loan by a minimum amount of HK$50,000,000) together with any applicable Break Costs.

 

7.4          Mandatory Prepayment — Change of Control

 

(a)           In this Clause 7.4, a “Change of Control” occurs if:

 

(i)            Cainiao ceases to legally and beneficially own (directly or indirectly) at least 50.1 per cent. of the entire issued capital of the Company; or

 

(ii)           Cainiao ceases to control (directly or indirectly) the Company; and

 

“control” an entity means the power to direct or cause the direction of the board of directors and policies of the Company, whether by contract or otherwise.

 

(b)           If a Change of Control occurs:

 

(i)            the Company shall promptly notify the Agent upon becoming aware of that event;

 

(ii)           a Lender shall not be obliged to fund a Utilisation; and

 

(iii)          if a Lender so requires and notifies the Agent within 30 days’ notice to the Company, cancel the Commitment of that Lender and declare the participation of that Lender in all outstanding Loans, together with accrued interest, applicable Break Costs and all other amounts accrued under the Finance Documents immediately due and payable, whereupon the Commitment of that Lender will be cancelled and all such outstanding Loans and amounts will become immediately due and payable.

 

7.5          Mandatory Prepayment — Development Right Early Termination Event

 

(a)           In this Clause 7.5, a “Development Right Early Termination Event” occurs if:

 

(i)            the Agreement for Sub-Lease is terminated or the obligations expressed to be assumed by any party to the Agreement for Sub-Lease are not or cease to be legal, valid, binding or enforceable;

 

(ii)           a Development Right Document (other than the Agreement for Sub-Lease) is terminated prior to its original scheduled termination date (howsoever described); or

 

(iii)          the obligations expressed to be assumed by any party to a Development Right Document (other than the Agreement for Sub-Lease) are not or cease to be legal, valid, binding or enforceable,

 

provided that in respect of paragraphs (a)(ii) or (a)(iii) above, a Development Right Early Termination Event occurs only if such termination or cessation has, or could reasonably be expected to have, a material and adverse effect on the ability of the Company to (1) carry out the Project in accordance with the

 

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terms of the Agreement for Sub-Lease or (2) meet its obligations and liabilities under this Agreement.

 

(b)           If a Development Right Early Termination Event occurs:

 

(i)            the Company shall promptly notify the Agent upon becoming aware of that event;

 

(ii)           a Lender shall not be obliged to fund a Utilisation;

 

(iii)          in respect of a Development Right Early Termination Event contemplated under paragraph (a)(i) above, if the Majority Lenders so require, the Agent may, by notice to the Company, cancel the Total Commitments, whereupon the Total Commitments will be immediately cancelled and the Company shall prepay all outstanding Loans, together with accrued interest, applicable Break Costs and all other amounts accrued under the Finance Documents within 60 days from the date of the Agent’s notice; and

 

(iv)          in respect of a Development Right Early Termination Event contemplated under paragraph (a)(ii) or (a)(iii) above, if in the opinion of the Lenders, such termination or cessation is either incapable of remedy or, if capable of remedy, is not remedied within 60 days of the date of termination or cessation (or such later date as the Agent (acting on the instructions of the Majority Lenders) may agree with the Company) then, if the Majority Lenders so require, the Agent may, by notice to the Company, cancel the Total Commitments, whereupon the Total Commitments will be immediately cancelled and the Company shall prepay all outstanding Loans, together with accrued interest, applicable Break Costs and all other amounts accrued under the Finance Documents within 60 days from the date of the Agent’s notice.

 

7.6          Mandatory Prepayment — Insurance Prepayment Proceeds and Warranty Claim Proceeds

 

(a)           In this Clause 7.6:

 

(i)            “Excluded Insurance Proceeds” means any proceeds of Property Insurances received or recovered by or paid to the order of any Group Member and/or Principal Controlled Entity, to the extent that:

 

(A)          such proceeds are applied or required under the Agreement for Sub-Lease or any Project Development Document to be applied towards:

 

(1)           replacing, restoring or reinstating the Property; or

 

(2)           satisfying liabilities of any Group Member or Principal Controlled Entity towards any third party (which is not an Obligor, a Group Member, a Principal Controlled Entity or any of its Affiliates) in respect of which such insurance claim was made (including liabilities under any public liability insurance);

 

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and in each case are actually so applied as soon as practicable; or

 

(B)          the amount of such proceeds, when aggregated with the aggregate amount of other proceeds of any and all Property Insurances (excluding any such proceeds failing within paragraph (A) above) does not exceed US$1,000,000 (or its equivalent in another currency or currencies);

 

(ii)           “Insurance Prepayment Proceeds” means the proceeds of any Property Insurances received or recovered by or paid to the order of any Group Member and/or Principal Controlled Entity except for Excluded Insurance Proceeds and after deducting any reasonable expenses in relation to that claim which are incurred by any Group Member or Principal Controlled Entity to persons who are not Group Members or Principal Controlled Entities; and

 

(iii)          “Warranty Claim Proceeds” means the proceeds of any amount received or recovered by or paid to the order of any Group Member or Principal Controlled Entity from a Project Development Party in respect of a warranty or indemnity claim settled with that Project Development Party in accordance with the terms of the relevant Project Development Document(s) after deducting any reasonable expenses in relation to that claim which are incurred by any Group Member or Principal Controlled Entity to any third party (which is not an Obligor, a Group Member, a Principal Controlled Entity or any of its Affiliates), to the extent such proceeds are not applied or required under the Agreement for Sub-Lease or any Project Development Document to be applied towards replacing, restoring or reinstating the Property or re-investment into the Project within 60 days after the receipt or recovery of such proceeds by (or paid of such proceeds to the order of) the relevant Group Member or Principal Controlled Entity (as the case may be).

 

(b)             The Company shall prepay the Loan in an amount equal to the Insurance Prepayment Proceeds or Warranty Claim Proceeds (as the case may be) promptly, and in any event within five (5) Business Days, upon receipt of such relevant proceeds by the relevant Group Member or Principal Controlled Entity (as the case may be).

 

7.7          Right of prepayment and cancellation in relation to a single Lender

 

(a)           If:

 

(i)           any sum payable to any Lender by an Obligor is required to be increased under paragraph (a) of Clause 12.2 (Tax gross-up); or

 

(ii)          any Lender claims indemnification from the Company under Clause 12.3 (Tax indemnity) or Clause 13.1 (Increased costs); or

 

(iii)         the rate notified by a Lender in relation to a particular Interest Period under sub-paragraph (a)(ii) of Clause 10.2 (Market disruption) is higher than the lowest rate notified by a Lender under that sub-paragraph,

 

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the Company may, whilst the circumstance giving rise to the requirement for that increase or indemnification continues, give the Agent notice of cancellation of the Commitment of that Lender and/or its intention to procure the prepayment of that Lender’s participation in the Loans or give the Agent notice of its intention to replace that Lender in accordance with paragraph (d) below.

 

(b)           On receipt of a notice of cancellation referred to in paragraph (a) above, the Commitment of that Lender shall immediately be reduced to zero.

 

(c)           On the last day of each Interest Period which ends after the Company has given notice of cancellation under paragraph (a) above (or, if earlier, the date specified by the Company in that notice), the Company shall prepay that Lender’s participation in the relevant Loan.

 

(d)           The Company may, in the circumstances set out in paragraph (a) above, on five Business Days’ prior notice to the Agent and that Lender, replace that Lender by requiring that Lender to (and, to the extent permitted by law, that Lender shall) transfer pursuant to Clause 22 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement to a Lender or other bank, financial institution, trust, fund or other entity selected by the Company which confirms its willingness to assume and does assume all the obligations of the transferring Lender in accordance with Clause 22 (Changes to the Lenders) for a purchase price in cash or other cash payment payable at the time of the transfer equal to the outstanding principal amount of such Lender’s participation in the outstanding Loans and all accrued interest, Break Costs and other amounts payable in relation thereto under the Finance Documents.

 

(e)           The replacement of a Lender pursuant to paragraph (d) above shall be subject to the following conditions:

 

(i)            the Company shall have no right to replace the Agent;

 

(ii)           neither the Agent nor any Lender shall have any obligation to find a replacement Lender;

 

(iii)          in no event shall the Lender replaced under paragraph (d) above be required to pay or surrender any of the fees received by such Lender pursuant to the Finance Documents; and

 

(iv)          no Lender shall be obliged to execute a Transfer Certificate unless it is satisfied that it has completed all “know your customer” and other similar procedures that it is required (or deems desirable) to conduct in relation to the transfer to such replacement Lender.

 

(f)            A Lender shall perform the procedures described in paragraph (e)(iv) above as soon as reasonably practicable following delivery of a notice referred to in paragraph (d) above and shall notify the Agent and the Company when it is satisfied that it has completed those checks.

 

(g)           (i)                                     If any Lender becomes a Defaulting Lender, the Company may, at any time whilst the Lender continues to be a Defaulting Lender, give the Agent two Business Days’ notice of cancellation of each Available Commitment of that Lender.

 

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(ii)           On the notice referred to in paragraph (g)(i) above becoming effective, each Available Commitment of the Defaulting Lender shall immediately be reduced to zero.

 

(iii)          The Agent shall as soon as practicable after receipt of a notice referred to in paragraph (g)(i) above, notify all the Lenders.

 

(h)           (i)           The Company may, at any time, give the Agent two Business Days’ notice of prepayment of any Separate Loan and cancellation of the Commitment of a Defaulting Lender in respect of that Separate Loan.

 

(ii)           On the notice referred to in paragraph (h)(i) above becoming effective, the Commitment of the Defaulting Lender in respect of that Separate Loan shall immediately be reduced to zero and the Company shall prepay that Defaulting Lender’s participation in such Separate Loan (together with any applicable Break Costs).

 

(iii)          The Agent shall as soon as practicable after receipt of a notice referred to in paragraph (h)(i) above, notify all the Lenders.

 

7.8          Restrictions

 

(a)           Any notice of cancellation or prepayment given by any Party under this Clause 7 shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment.

 

(b)           Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs, without premium or penalty.

 

(c)           Unless a contrary indication appears in this Agreement, any part of the Facility which is repaid or prepaid may not be reborrowed.

 

(d)           The Company shall not repay or prepay all or any part of the Loans or reduce all or any part of the Commitments except at the times and in the manner expressly provided for in this Agreement.

 

(e)           No amount of any Commitment that is reduced in accordance with this Agreement may be subsequently reinstated.

 

(f)            If the Agent receives a notice under this Clause 7 it shall promptly forward a copy of that notice to either the Company or the affected Lender, as appropriate.

 

(g)           If all or part of a Loan is repaid or prepaid and is not available for redrawing, an amount of the Commitments (equal to the amount of the Loan which is repaid or prepaid) will be deemed to be cancelled on the date of repayment or prepayment. Any cancellation under this paragraph (g) (save in connection with any repayment or, as the case may be, prepayment under paragraph (c) of Clause 7.1 (Illegality) or paragraph (c), (g) or (h) of Clause 7.7 (Right of prepayment and cancellation in relation to a single Lender)) shall reduce the Commitments of the Lenders rateably.

 

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8.             Interest

 

8.1          Calculation of interest

 

The rate of interest on each Loan for each Interest Period is the percentage rate per annum which is the aggregate of the:

 

(a)             Margin; and

 

(b)             applicable HIBOR.

 

8.2          Payment of interest

 

The Company shall pay accrued interest on each Loan on the last day of each Interest Period relating to that Loan (and, if the Interest Period is longer than six Months, on the dates falling at six monthly intervals after the first day of the Interest Period).

 

8.3          Default interest

 

(a)           If an Obligor fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the Unpaid Sum from the due date to the date of actual payment (both before and after judgment) at a rate which is, subject to paragraph (b) below, two per cent. (2%) higher than the rate which would have been payable if the Unpaid Sum had, during the period of non-payment, constituted a Loan in the currency of the Unpaid Sum for successive Interest Periods, each of a duration selected by the Agent (acting reasonably). Any interest accruing under this Clause 8.3 shall be immediately payable by the Obligor on demand by the Agent.

 

(b)           If any Unpaid Sum consists of all or part of a Loan which became due on a day which was not the last day of an Interest Period relating to that Loan:

 

(i)            the first Interest Period for that Unpaid Sum shall have a duration equal to the unexpired portion of the current Interest Period relating to that Loan; and

 

(ii)           the rate of interest applying to the Unpaid Sum during that first Interest Period shall be two per cent. (2%) higher than the rate which would have applied if the Unpaid Sum had not become due.

 

(c)           Default interest (if unpaid) arising on an Unpaid Sum will be compounded with the Unpaid Sum at the end of each Interest Period applicable to that Unpaid Sum but will remain immediately due and payable.

 

8.4          Notification of rates of interest

 

The Agent shall promptly notify the relevant Lenders and the Company of the determination of a rate of interest under this Agreement.

 

9.             Interest Periods

 

9.1          Selection of Interest Periods

 

(a)                                 The Company shall select the Interest Period for a Loan in the Utilisation Request for that Loan or (if the Loan has already been borrowed) in a Selection Notice.

 

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(b)                                 Each Selection Notice for a Loan is irrevocable and must be delivered to the Agent by the Company no later than 11:00 a.m. three (3) Business Days prior to the first day of the relevant Interest Period.

 

(c)                                  If the Company fails to deliver a Selection Notice to the Agent in accordance with paragraph (b) above, the relevant Interest Period will be one Month.

 

(d)                                 Subject to this Clause 9, the Company may select the Interest Period for a Loan of 1, 2, 3 or 6 Months or any other period agreed between the Company and the Agent (acting on the instructions of all the Lenders in relation to the relevant Loan).

 

(e)                                  An Interest Period for a Loan shall not, subject to Clause 33.3 (Extension of Commitments), extend beyond the Final Repayment Date.

 

(f)                                   The Interest Period for a Loan shall start on the Utilisation Date of that Loan or (if already made) on the last day of its preceding Interest Period.

 

9.2          Non-Business Days

 

If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).

 

10.          Changes to the Calculation of Interest 

 

10.1        Absence of quotations

 

Subject to Clause 10.2 (Market disruption), if HIBOR is to be determined by reference to the Reference Banks but a Reference Bank does not supply a quotation by noon (local time) on the Quotation Day, the applicable HIBOR shall be determined on the basis of the quotations of the remaining Reference Banks.

 

10.2        Market disruption

 

(a)           Subject to any alternative basis agreed and consented to as contemplated by paragraphs (a) and (b) of Clause 10.3 (Alternative basis of interest or funding), if a Market Disruption Event occurs in relation to a Loan for any Interest Period, then the rate of interest on each Lender’s participation in that Loan for that Interest Period shall be the percentage rate per annum which is the sum of:

 

(i)            the Margin; and

 

(ii)           the percentage rate per annum notified to the Agent by that Lender, as soon as practicable and in any event not later than five Business Days before interest is due to be paid in respect of that Interest Period, as the cost to that Lender of funding its participation in that Loan from whatever source(s) it may reasonably select.

 

(b)           In relation to a Market Disruption Event under paragraph (c)(ii) below, if the percentage rate per annum notified by a Lender pursuant to paragraph (a)(ii) above shall be less than HIBOR or if a Lender shall fail to notify the Agent of any such percentage rate per annum, the cost to that Lender of funding its participation in the relevant Loan for the relevant Interest Period shall be deemed, for the purposes of paragraph (a) above, to be HIBOR.

 

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(c)           In this Agreement “Market Disruption Event” means:

 

(i)            at or about noon on the Quotation Day for the relevant Interest Period the Screen Rate is not available, it is not possible to calculate the Interpolated Screen Rate and none or only one of the Reference Banks supplies a rate to the Agent to determine HIBOR for HK Dollars for the relevant Interest Period; or

 

(ii)           at 5.00 p.m. on the Business Day immediately following the Quotation Day for the relevant Interest Period, the Agent receives notifications from a Lender or Lenders (whose participations in the relevant Loan exceed 50 per cent. of that Loan) that the cost to it of obtaining matching deposits in the Relevant Interbank Market would be in excess of HIBOR.

 

(d)           If a Market Disruption Event shall occur, the Agent shall promptly notify the Lenders and the Company thereof.

 

10.3        Alternative basis of interest or funding

 

(a)           If a Market Disruption Event occurs and the Agent or the Company so requires, the Agent and the Company shall enter into negotiations (for a period of not more than thirty days) with a view to agreeing a substitute basis for determining the rate of interest.

 

(b)           Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of all the Lenders and the Company, be binding on all Parties.

 

(c)           For the avoidance of doubt, in the event that no substitute basis is agreed at the end of the thirty day period, the rate of interest shall continue to be determined in accordance with the terms of this Agreement.

 

10.4        Break Costs

 

(a)           The Company shall, within five (5) Business Days of demand by a Finance Party, pay to that Finance Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being paid by an Obligor on a day other than the last day of an Interest Period for that Loan or Unpaid Sum.

 

(b)           Each Lender shall, together with its demand, provide a certificate confirming the amount and the basis of calculation of its Break Costs for any Interest Period in which they accrue.

 

11.          Fees

 

11.1        Commitment fee

 

(a)           The Company shall pay to the Agent (for the account of each Lender) a fee in HK Dollars computed and accruing on a daily basis with effect from (but excluding) the date falling 45 days after the date of this Agreement (the “Commitment Fee Commencement Date”) at 0.20 per cent. per annum on that Lender’s Available Commitment for the Availability Period at close of business on each day of the Availability Period falling after the Commitment Fee Commencement Date (or, if any such day shall not be a Business Day, at such close of business on the immediately preceding Business Day).

 

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(b)                                 The accrued commitment fee is payable (but without double counting):

 

(i)                                     on the last day of each successive period of three Months which ends during the Availability Period commencing with the period of three Months starting on the Commitment Fee Commencement Date;

 

(ii)                                  on the last day of the Availability Period; and

 

(iii)                               if a Lender’s Commitment is reduced to zero before the last day of the Availability Period, on the day on which such reduction to zero becomes effective.

 

(c)                                  No commitment fee is payable to the Agent (for the account of a Lender) on any Available Commitment of that Lender for any day on which that Lender is a Defaulting Lender.

 

11.2                        Upfront fee

 

The Company shall pay to each Mandated Lead Arranger an upfront fee in the amount and at the times agreed in a Fee Letter.

 

11.3                        Agency fee

 

The Company shall pay to the Agent (for its own account) an agency fee in the amount and at the times agreed in a Fee Letter.

 

12.                               Tax Gross Up and Indemnities 

 

12.1                        Tax definitions

 

(a)                                 In this Clause 12: 

 

“FATCA” means:

 

(i)                                     sections 1471 to 1474 of the Code or any associated regulations or other official guidance;

 

(ii)                                  any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of paragraph (i) above; or

 

(iii)                               any agreement pursuant to the implementation of any treaty, law or regulation referred to in paragraphs (i) or (ii) above with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction.

 

“FATCA Deduction” means a deduction or withholding from a payment under a Finance Document required by FATCA.

 

“Tax Credit” means a credit against, relief or remission for, or repayment of any Tax.

 

“Tax Deduction” means a deduction or withholding for or on account of Tax from a payment under a Finance Document, other than a FATCA Deduction.

 

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“Tax Payment” means an increased payment made by an Obligor to a Finance Party under Clause 12.2 (Tax gross-up) or a payment under Clause 12.3 (Tax indemnity).

 

(b)                                 Unless a contrary indication appears, in this Clause 12 a reference to “determines” or “determined” means a determination made in the absolute discretion of the person making the determination acting in good faith.

 

12.2                        Tax gross-up

 

(a)                                 All payments to be made by an Obligor to any Finance Party under the Finance Documents shall be made free and clear of and without any Tax Deduction unless such Obligor is required to make a Tax Deduction, in which case the sum payable by such Obligor (in respect of which such Tax Deduction is required to be made) shall be increased to the extent necessary to ensure that such Finance Party receives a sum net of any deduction or withholding equal to the sum which it would have received had no such Tax Deduction been made or required to be made.

 

(b)                                 The Company shall promptly upon becoming aware that an Obligor must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Agent accordingly. Similarly, a Lender shall notify the Agent on becoming so aware in respect of a payment payable to that Lender. If the Agent receives such notification from a Lender it shall notify the Company and that Obligor.

 

(c)                                  If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law.

 

(d)                                 Within thirty days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Agent for the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.

 

12.3                        Tax indemnity

 

(a)                                 Without prejudice to Clause 12.2 (Tax gross-up), if any Finance Party is required to make any payment of or on account of Tax on or in relation to any sum received or receivable under the Finance Documents (including any sum deemed for purposes of Tax to be received or receivable by such Finance Party whether or not actually received or receivable) or if any liability in respect of any such payment is asserted, imposed, levied or assessed against any Finance Party, the Company shall, within five (5) Business Days of demand of the Agent, promptly indemnify the Finance Party which suffers a loss or liability as a result against such payment or liability, together with any interest, penalties, costs and expenses payable or incurred in connection therewith, provided that this Clause 12.3 shall not apply:

 

(i)                                     to the extent a loss, liability or cost relates to a FATCA Deduction required to be made by a Party;

 

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(ii)                                  to any Tax imposed on and calculated by reference to the net income actually received or receivable by such Finance Party (but, for the avoidance of doubt, not including any sum deemed for purposes of Tax to be received or receivable by such Finance Party but not actually receivable) by the jurisdiction in which such Finance Party is incorporated; or

 

(iii)                               to any Tax imposed on and calculated by reference to the net income of the Facility Office of such Finance Party actually received or receivable by such Finance Party (but, for the avoidance of doubt, not including any sum deemed for purposes of Tax to be received or receivable by such Finance Party but not actually receivable) by the jurisdiction in which its Facility Office is located.

 

(b)                                 A Finance Party intending to make a claim under paragraph (a) shall notify the Agent of the event giving rise to the claim, whereupon the Agent shall notify the Company thereof.

 

(c)                                  A Finance Party shall, on receiving a payment from an Obligor under this Clause 12.3, notify the Agent.

 

(d)                                 Paragraph (a) shall not apply to the extent any Tax is not notified to the Agent by the relevant Finance Party within three (3) Months of the relevant Finance Party becoming aware of the relevant Tax.

 

12.4                        Tax credit

 

If an Obligor makes a Tax Payment and the relevant Finance Party determines that:

 

(a)                                 a Tax Credit is attributable to an increased payment of which that Tax Payment forms part, to that Tax Payment or to a Tax Deduction in consequence of which that Tax Payment was required; and

 

(b)                                 that Finance Party has obtained and utilised that Tax Credit,

 

the Finance Party shall pay an amount to the Obligor which that Finance Party determines will leave it (after that payment) in no better and no worse position in respect of its worldwide tax liabilities than it would have been in had the Obligor not been required to make the Tax Payment.

 

12.5                        Stamp taxes

 

The Company shall:

 

(a)                                 pay all stamp duty, registration and other similar Taxes payable in respect of any Finance Document, and

 

(b)                                 within five (5) Business Days of demand, indemnify each Finance Party against any cost, loss or liability that Finance Party incurs in relation to any stamp duty, registration or other similar Tax paid or payable in respect of any Finance Document.

 

12.6                        Indirect tax

 

(a)                                 All amounts set out or expressed in a Finance Document to be payable by any Party to a Finance Party shall be deemed to be exclusive of any Indirect Tax. If any Indirect Tax is chargeable on any supply made by any Finance Party to any Party in connection with a Finance Document, that Party shall pay to the

 

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Finance Party (in addition to and at the same time as paying the consideration) an amount equal to the amount of the Indirect Tax.

 

(b)                            Where a Finance Document requires any Party to reimburse a Finance Party for any costs or expenses, that Party shall also at the same time pay and indemnify the Finance Party against all Indirect Tax incurred by that Finance Party in respect of the costs or expenses to the extent that the Finance Party reasonably determines that it is not entitled to credit or repayment in respect of the Indirect Tax.

 

12.7                             FATCA Deduction

 

(a)                            Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.

 

(b)                            Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction) notify the Party to whom it is making the payment and, in addition, shall notify the Company, the Agent and the other Finance Parties.

 

13.                                    Increased Costs 

 

13.1                             Increased costs

 

(a)                            Subject to Clause 13.3 (Exceptions) the Company shall, within five (5) Business Days of a demand by the Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation by any governmental or regulatory authority or (ii) compliance with any law or regulation made after the date of this Agreement. The terms “law” and “regulation” in this paragraph (a) shall include any law or regulation concerning capital adequacy, prudential limits, liquidity, reserve assets or Tax.

 

(b)                            In this Agreement:

 

(i)                                     “Basel III” means:

 

(A)                          the agreements on capital requirements, a leverage ratio and liquidity standards contained in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III: International framework for liquidity risk measurement, standards and monitoring” and “Guidance for national authorities operating the countercyclical capital buffer” published by the Basel Committee on Banking Supervision in December 2010, each as amended supplemented or restated; and

 

(B)                          any further guidance or standards published by the Basel Committee on Banking Supervision relating to “Basel III”; and

 

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(ii)                                  “Increased Costs” means:

 

(A)                               a reduction in the rate of return from the Facility or on a Finance Party’s (or its Affiliate’s) overall capital (including as a result of any reduction in the rate of return on capital brought about by more capital being required to be allocated by such Finance Party);

 

(B)                               an additional or increased cost; or

 

(C)                               a reduction of any amount due and payable under any Finance Document,

 

which is incurred or suffered by a Finance Party or any of its Affiliates to the extent that it is attributable to the undertaking, funding or performance by such Finance Party of any of its obligations under any Finance Document or any participation of such Finance Party in any Loan or Unpaid Sum.

 

13.2                             Increased cost claims

 

(a)                            A Finance Party intending to make a claim pursuant to Clause 13.1 (Increased costs) shall notify the Agent of the event giving rise to the claim, following which the Agent shall promptly notify the Company.

 

(b)                            Each Finance Party shall together with its demand provide a certificate confirming the amount and basis of calculation of its Increased Costs.

 

13.3                             Exceptions

 

(a)                            Clause 13.1 (Increased costs) does not apply to the extent any Increased Cost is:

 

(i)                                     attributable to a Tax Deduction required by law to be made by an Obligor;

 

(ii)                                  compensated for by Clause 12.3 (Tax indemnity) (or would have been compensated for under Clause 12.3 (Tax indemnity) but was not so compensated solely because the exclusion in paragraph (a) of Clause 12.3 (Tax indemnity) applied);

 

(iii)                               attributable to the breach by the relevant Finance Party or its Affiliates of any law or regulation or the negligence of any of them;

 

(iv)                              attributable to the implementation or application of or compliance with the “International Convergence of Capital Measurement and Capital Standards, a Revised Framework” published by the Basel Committee on Banking Supervision in June 2004 in the form existing on the date of this Agreement (“Basel II”) or any other law or regulation which implements Basel II (whether such implementation, application or compliance is by a government, regulator, Finance Party or any of its Affiliates);

 

(v)                                 attributable to the implementation or application of or compliance with Basel III or any other law or regulation which implements Basel III (whether such implementation, application or compliance is by a government, regulator, Finance Party or any of its Affiliates) but only

 

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to the extent the relevant Finance Party is required to implement, apply or comply with Basel III on the date on which it becomes a Party;

 

(vi)                              attributable to a FATCA Deduction required to be made by a Party; or

 

(vii)                           not notified to the Agent by the relevant Finance Party within three (3) Months of such Finance Party becoming aware of the Increased Cost in accordance with Clause 13.2(a) (Increased cost claims).

 

(b)                                 In this Clause 13.3 references to a “FATCA Deduction” or a “Tax Deduction” have the same meaning given to such terms in Clause 12.1 (Tax definitions).

 

14.                               Mitigation by the Lenders 

 

14.1                        Mitigation

 

(a)                                 Each Finance Party shall, in consultation with the Company, take all reasonable steps to mitigate any circumstances which arise and which would result in any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 7.1 (Illegality), Clause 12 (Tax Gross Up and Indemnities) or Clause 13.1 (Increased costs), including (but not limited to):

 

(i)                                     providing such information as the Company may reasonably request in order to permit the Company to determine its entitlement to claim any exemption or other relief (whether pursuant to a double taxation treaty or otherwise) from any obligation to make a Tax Deduction; and

 

(ii)                                  in relation to any circumstances which arise following the date of this Agreement, transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office.

 

(b)                                 Paragraph (a) above does not in any way limit the obligations of any Obligor under the Finance Documents.

 

14.2                        Limitation of liability

 

(a)                                 The Company shall promptly indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause 14.1 (Mitigation).

 

(b)                                 A Finance Party is not obliged to take any steps under Clause 14.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might reasonably be expected to be prejudicial to it.

 

14.3                        Conduct of business by the Finance Parties

 

No provision of this Agreement will:

 

(a)                                 interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;

 

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(b)                            oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim;

 

(c)                             oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax; or

 

(d)                            oblige any Finance Party to do or omit to do anything if it would, or might in its reasonable opinion, constitute a breach of any applicable anti-money laundering, counter-terrorism financing, economic or trade Sanctions law or regulation.

 

15.                                    Other Indemnities 

 

15.1                             Currency indemnity

 

(a)                            If any sum due from an Obligor under the Finance Documents (a “Sum”), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the “First Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the purpose of:

 

(i)                                     making or filing a claim or proof against that Obligor; or

 

(ii)                                  obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings,

 

that Obligor shall as an independent obligation, within five (5) Business Days of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum.

 

(b)                            Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to be payable.

 

15.2                           Other indemnities

 

The Company shall, within five (5) Business Days of demand, indemnify each Finance Party against any cost, loss or liability incurred by that Finance Party as a result of:

 

(a)                            the occurrence of any Event of Default;

 

(b)                            any written information produced or approved by any Obligor in connection with the Finance Documents being or being alleged to be misleading and/or deceptive in any respect;

 

(c)                             any enquiry, investigation, subpoena (or similar order) or litigation with respect to any Obligor or with respect to the transactions contemplated or financed under this Agreement;

 

(d)                            a failure by an Obligor to pay any amount due under a Finance Document on its due date or in the relevant currency, including without limitation, any cost,

 

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loss or liability arising as a result of Clause 26 (Sharing among the Finance Parties);

 

(e)                                  funding, or making arrangements to fund, its participation in a Loan requested by the Company in a Utilisation Request but not made by reason of the operation of any one or more of the provisions of this Agreement (other than by reason of default or negligence by that Finance Party alone); or

 

(f)                                   a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by the Company.

 

15.3                        Indemnity to the Agent

 

(a)                                 The Company shall promptly indemnify the Agent against any cost, loss or liability incurred by the Agent (acting reasonably) as a result of:

 

(i)                                     investigating any event which it reasonably believes is a Default; or

 

(ii)                                  acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised.

 

(b)                                 The indemnity to the Agent shall survive the termination or expiry of this Agreement and the resignation or replacement of the Agent.

 

16.                               Costs and Expenses 

 

16.1                        Transaction expenses

 

The Company shall, within five Business Days of demand, pay the Administrative Parties the amount of all reasonable costs and expenses (including legal fees of law firms approved by the Company and subject to any agreed caps) reasonably incurred by any of them in connection with the negotiation, preparation, printing and execution of:

 

(a)                                 this Agreement and any other Finance Documents referred to in it; and

 

(b)                                 any other Finance Documents executed after the date of this Agreement. 

 

16.2                        Amendment costs

 

If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is required pursuant to Clause 27.10 (Change of currency), the Company shall, within five Business Days of demand, reimburse the Agent for the amount of all reasonable costs and expenses (including legal fees of law firms approved by the Company and subject to any agreed caps) reasonably incurred by the Agent in responding to, evaluating, negotiating or complying with that request or requirement.

 

16.3                        Enforcement costs

 

The Company shall, within five Business Days of demand, pay to each Finance Party the amount of all costs and expenses (including legal fees) incurred by that Finance Party in connection with the enforcement of, or the preservation of any rights under, any Finance Document.

 

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17.                               Guarantee and Indemnity

 

17.1                        Guarantee and indemnity

 

The Guarantor irrevocably and unconditionally:

 

(a)                                 guarantees to each Finance Party punctual performance by the Company of all the Company’s obligations under the Finance Documents;

 

(b)                                 undertakes with each Finance Party that whenever the Company does not pay any amount when due under or in connection with any Finance Document, it shall immediately on demand pay that amount as if it was the principal obligor; and

 

(c)                                  agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify that Finance Party immediately on demand against any cost, loss or liability it incurs as a result of the Company not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Finance Document on the date when it would have been due. The amount payable by the Guarantor under this indemnity will not exceed the amount it would have had to pay under this Clause 17 if the amount claimed had been recoverable on the basis of a guarantee.

 

17.2                        Continuing guarantee

 

This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by the Company under the Finance Documents, regardless of any intermediate payment or discharge in whole or in part.

 

17.3                        Reinstatement

 

If any discharge, release or arrangement (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) is made by a Finance Party in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation, then the liability of the Guarantor under this Clause 17 will continue or be reinstated as if the discharge, release or arrangement had not occurred.

 

17.4                        Waiver of defences

 

The obligations of the Guarantor under this Clause 17 will not be affected by an act, omission, matter or thing which, but for this Clause 17, would reduce, release or prejudice any of its obligations under this Clause 17 (without limitation and whether or not known to it or any Finance Party) including:

 

(a)                                 any time, waiver or consent granted to, or composition with, any Obligor or other person;

 

(b)                                 the release of the Company or any other person under the terms of any composition or arrangement with any creditor of any member of the Group;

 

(c)                                  the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, execute, take up or enforce, any rights against, or security over assets of, the Company or other person or any non-presentation

 

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or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;

 

(d)                            any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of the Company;

 

(e)                             any amendment, novation, supplement, extension, restatement (however fundamental and whether or not more onerous) or replacement of any Finance Document including any change in the purpose of, any extension of or any increase in any facility or the addition of any new facility under any Finance Document;

 

(f)                              any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document;

 

(g)                             any insolvency or similar proceedings; or

 

(h)                            this Agreement or any other Finance Document not being executed by or binding upon any other party.

 

17.5                             Immediate recourse

 

The Guarantor waives any right it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from the Guarantor under this Clause 17. This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.

 

17.6                             Appropriations

 

Until all amounts which may be or become payable by the Company under or in connection with the Finance Documents have been irrevocably paid in full, each Finance Party (or any trustee or agent on its behalf) may:

 

(a)                            refrain from applying or enforcing any other moneys, security or rights held or received by that Finance Party (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and the Guarantor shall not be entitled to the benefit of the same; and

 

(b)                            hold in an interest-bearing suspense account any moneys received from the Guarantor or on account of the Guarantor’s liability under this Clause 17.

 

17.7                             Deferral of Guarantor’s rights

 

Until all amounts which may be or become payable by the Company under or in connection with the Finance Documents have been irrevocably paid in full and unless the Agent otherwise directs, the Guarantor will not exercise or otherwise enjoy the benefit of any right which it may have by reason of performance by it of its obligations under the Finance Documents or by reason of any amount being payable, or liability arising, under this Clause 17:

 

(a)                            to be indemnified by the Company;

 

(b)                            to claim any contribution from any other guarantor of or provider of security for the Company’s obligations under the Finance Documents;

 

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(c)                             to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under the Finance Documents or of any other guarantee or security taken pursuant to, or in connection with, the Finance Documents by any Finance Party;

 

(d)                            to bring legal or other proceedings for an order requiring the Company to make any payment, or perform any obligation, in respect of which the Guarantor has given a guarantee, undertaking or indemnity under Clause 17.1 (Guarantee and indemnity);

 

(e)                             to exercise any right of set-off against the Company; and/or

 

(f)                              to claim or prove as a creditor of the Company in competition with any Finance Party.

 

If the Guarantor shall receive any benefit, payment or distribution in relation to any such right it shall hold that benefit, payment or distribution (or so much of it as may be necessary to enable all amounts which may be or become payable to the Finance Parties by the Obligors under or in connection with the Finance Documents to be paid in full) on trust for the Finance Parties, and shall promptly pay or transfer the same to the Agent or as the Agent may direct for application in accordance with Clause 27 (Payment Mechanics).

 

17.8                             Additional security

 

This guarantee is in addition to and is not in any way prejudiced by any other guarantee or security now or subsequently held by any Finance Party.

 

18.                                    Representations

 

Each Obligor makes the representations and warranties with respect to itself set out in this Clause 18 to each Finance Party.

 

18.1                             Status

 

(a)                            The Company is a limited liability company, duly incorporated and validly existing under the laws of Hong Kong.

 

(b)                            The Guarantor is an exempted company, duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.

 

(c)                             It has the power to own its assets and carry on its business in all material respects as it is being conducted.

 

(d)                            It is acting as principal for its own account and not as agent or trustee in any capacity on behalf of any person in relation to the Finance Documents.

 

18.2                             Binding obligations

 

The obligations expressed to be assumed by it in each Finance Document are, subject to any general principles of law limiting its obligations which are generally applicable, legal, valid, binding and enforceable obligations.

 

18.3                             Non-conflict with other obligations

 

The entry into and performance by it of, and the transactions contemplated by, the Finance Documents do not and will not conflict with:

 

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(a)                            any material law or regulation applicable to it;

 

(b)                            its constitutional documents; or

 

(c)                             any agreement or instrument binding upon it or any of its assets in a manner that might reasonably be expected to give rise to a Material Adverse Effect.

 

18.4                             Power and authority

 

It has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Finance Documents to which it is a party and the transactions contemplated by those Finance Documents.

 

18.5                             Validity and admissibility in evidence 

 

All Authorisations required:

 

(a)                            to enable it lawfully to enter into, exercise its rights and comply with its obligations in the Finance Documents to which it is a party;

 

(b)                            to make the Finance Documents to which it is a party admissible in evidence in its jurisdiction of incorporation; and

 

(c)                             for it to carry on its business, and which are material,

 

have been obtained or effected and are in full force and effect (or, in each case, will be when required).

 

18.6                             Governing law and enforcement

 

(a)                            The choice of Hong Kong law as the governing law of the Finance Documents will be recognised and enforced in its Relevant Jurisdiction.

 

(b)                            Any judgment obtained in Hong Kong in relation to a Finance Document will be recognised and enforced in its jurisdiction of incorporation.

 

18.7                             Deduction of Tax

 

It is not required under the law applicable where it is incorporated or resident or at the address specified in this Agreement to make any deduction for or on account of Tax from any payment it may make under any Finance Document.

 

18.8                             No filing or stamp taxes

 

Under the law of its jurisdiction of incorporation it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration or similar tax be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents, except that Cayman Islands stamp duty may be payable if the original Finance Documents are brought into or executed in the Cayman Islands.

 

18.9                             No default

 

(a)                            No Event of Default is continuing or could reasonably be expected to result from the making of any Utilisation.

 

(b)                            No other event or circumstance is outstanding which constitutes a default under any other agreement or instrument which is binding on it or to which

 

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its assets are subject which has or could reasonably be expected to have a Material Adverse Effect.

 

18.10                      No misleading information

 

Save as disclosed in writing to the Agent on or prior to the date on which such information is provided, all written information provided by it to the Agent after the date of this Agreement was true and accurate in all material respects as at the date it was provided and was not misleading in any material respect as at such date.

 

18.11                      Financial statements

 

(a)                            The financial statements most recently supplied to the Agent or otherwise made available to the public (which, at the date of this Agreement, are the Original Financial Statements) were prepared in accordance with the Accounting Principles consistently applied save to the extent expressly disclosed in such financial statements.

 

(b)                            The financial statements most recently supplied to the Agent or otherwise made available to the public (which, at the date of this Agreement, are the Original Financial Statements) give a true and fair view of (if audited) or fairly represent (if unaudited) its financial condition and operations (consolidated in the case of the Guarantor) as at the end of and for the relevant financial year save to the extent expressly disclosed in such financial statements.

 

(c)                             There has been no material adverse change in its business or financial condition (or the business or consolidated financial condition of the Group) since 31 March 2018.

 

18.12                      Pari passu ranking

 

Its payment obligations under the Finance Documents rank at least pari passu with the claims of all of its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.

 

18.13                      No proceedings pending or threatened

 

No litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency which might reasonably be expected to be adversely determined and, if adversely determined, might reasonably be expected to have a Material Adverse Effect have (to the best of its knowledge and belief) been started or threatened against it.

 

18.14                      Taxation

 

(a)                            It is not overdue (taking into account any extension or grace period) in the payment of any material amount in respect of Tax, in each case save to the extent that (i) such payment is being contested in good faith; and (ii) it has maintained adequate reserves for those Taxes.

 

(b)                            No claim or investigations are being, or to its actual knowledge, are reasonably likely to be, made or conducted against it with respect to Taxes which would have or are reasonably likely to have a Material Adverse Effect.

 

(c)                             It is resident for tax purposes only in the jurisdiction of its incorporation.

 

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18.15                      No insolvency

 

No event as described in Clause 21.5 (Involuntary proceedings) or Clause 21.6 (Voluntary proceedings) is continuing in relation to it or any Major Material Subsidiary.

 

18.16                      Intellectual Property

 

(a)                                 It, or another Group Member, is the legal and beneficial owner of or has licensed to it all the material Intellectual Property which is required in order to carry on the business of the Group as it is currently being conducted.

 

(b)                                 It does not, in carrying on its businesses, infringe any Intellectual Property of any third party in any respect which has or is reasonably likely to have a Material Adverse Effect.

 

(c)                                  All formal or procedural actions (including payment of fees) required to maintain any Intellectual Property owned by it have been taken, except to the extent failure to take such actions does not or is not reasonably likely to have a Material Adverse Effect.

 

18.17                      Immunity

 

(a)                                 The entry into by it of each Finance Document constitutes, and the exercise by it of its rights and performance of its obligations under each Finance Document will constitute, private and commercial acts performed for private and commercial purposes.

 

(b)                                 It will not be entitled to claim immunity from suit, execution, attachment or other legal process in any proceedings taken in its Relevant Jurisdiction in relation to any Finance Documents.

 

18.18                      Authorised Signatories

 

Any person specified as its authorised signatory under Schedule 2 (Conditions Precedent) is authorised to sign Utilisation Requests, Selection Notices and other notices on its behalf.

 

18.19                      Good title to assets

 

It has a good, valid and marketable title to, or valid leases or licences of, and all appropriate Authorisations to use, the assets necessary to carry on its business as from time to time conducted the absence of which, in relation to any asset other than the Property, would have a Material Adverse Effect.

 

18.20                      Bribery, Anti-corruption

 

(a)                                 To the actual knowledge of Management, its business is carried on in all material respects in compliance with all, and none of its directors, officers, agents (solely in their capacity as agents under, and in compliance with, a written contract with that Obligor), affiliates or employees acts in breach of any, applicable laws relating to bribery and anti-corruption, including without limitation the UK Bribery Act 2010 and the United States Foreign Corrupt Practices Act of 1977 or any similar laws, rules or regulations issued, administered or enforced by any government or governmental authority having jurisdiction over it.

 

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(b)                                 There are in place appropriate policies and procedures designed to promote and achieve compliance with all such applicable laws by each Obligor and by its directors, officers and employees.

 

18.21                      Sanctions

 

(a)                                 To the actual knowledge of Management, after due and reasonable enquiry, its business is as at the date of this Agreement carried on in compliance with all applicable Sanctions.

 

(b)                                 None of the Obligors or any of their respective directors, officers, agents (solely in their capacity as agents under, and in compliance with, a written contract with that Obligor), affiliates or employees is a person currently the subject of any Sanctions, and neither Obligor is located, organised or resident in a country or territory that is the subject of any Sanctions.

 

18.22                      Money Laundering

 

(a)                                 To the actual knowledge of Management, after due and reasonable enquiry, no Obligor engages in Money Laundering or acts in breach of any applicable laws or regulations relating to Money Laundering issued, administered or enforced by any governmental agency having jurisdiction over it.

 

(b)                                 There are in place appropriate policies and procedures designed to promote and achieve compliance by each Obligor with all applicable laws or regulations relating to Money Laundering.

 

18.23                      Dividends repatriation

 

There is no contractual restriction for any Major Material Subsidiary incorporated in the PRC which is a WFOE to pay dividends out of its Distributable Reserves, or to make any distribution to any of its shareholders or holders of any equity interest in it (in each case, subject to any generally applicable administrative and legal restrictions).

 

18.24                      Times when representations made

 

(a)                            All the representations and warranties in this Clause 18 are made by each Obligor on the date of this Agreement.

 

(b)                            The Repeating Representations are deemed to be made by each Obligor on the date of each Utilisation Request and the first day of each Interest Period.

 

(c)                             Each representation or warranty deemed to be made after the date of this Agreement shall, except where the contrary is indicated, be deemed to be made by reference to the facts and circumstances existing at the date the representation or warranty is deemed to be made.

 

19.                                    Information Undertakings

 

The undertakings in this Clause 19 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

 

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19.1                             Financial statements

 

The Company shall supply to the Agent:

 

(a)                                 as soon as they become available but in any event within 120 days after the end of each of its financial years:

 

(i)                                its audited consolidated financial statements for that financial year; and

 

(ii)                             (in the event that the Guarantor’s financial statements cease to be publicly available), the audited consolidated financial statements of the Guarantor for that financial year; and

 

(b)                                 as soon as they become available but in any event within 60 days after the end of the first half of each of its financial years:

 

(i)                                its unaudited consolidated financial statements for that financial half year; and

 

(ii)                             (in the event the Guarantor’s financial statements cease to be publicly available) the unaudited consolidated financial statements of the Guarantor for that financial half year.

 

19.2                             Compliance Certificate

 

The relevant Obligor shall supply to the Agent:

 

(a)                                 annually, within 120 days after the end of each of its fiscal year; and

 

(b)                                 upon written request by the Agent, within 14 days of such request,

 

a brief certificate from (in relation to the Company) its chief financial officer and (in relation to the Guarantor) its principal execution officer, principal financial officer, principal account officer or treasurer as to his or her knowledge of that Obligor’s compliance with all conditions and covenants under the Finance Documents (which compliance shall be determined without regarding to any period of grace or requirement of notice provided under the Finance Documents), specifying if any Default has occurred and, in the event that any Default has occurred, specifying each such Default and the nature and status thereof of which such person may have knowledge.

 

19.3                             Notification of default

 

The Company shall deliver to the Agent promptly and in any event within 30 calendar days after any Obligor becomes aware of the occurrence of any Event of Default or any event which, with the giving of notice of the lapse of time or both, would constitute an Event of Default, an Officer’s Certificate of the Company setting out the details of such Event of Default or Default and the action which the Company proposes to take with respect thereto.

 

19.4                             “Know your customer” checks

 

(a)                                 Each Obligor shall promptly upon the request of the Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender (including for any Lender on behalf of any prospective new Lender)) in order for the Agent,

 

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such Lender or any prospective new Lender to conduct any “know your customer” or other similar procedures under applicable laws and regulations.

 

(b)                                 Each Lender shall promptly upon the request of the Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself) in order for the Agent to conduct any “know your customer” or other similar procedures under applicable laws and regulations.

 

19.5                        Information on the Project

 

(a)                                 The Company shall supply to the Agent, on a semi-annual basis, on the last day of each fiscal half-year commencing from the date of this Agreement, a report on progress of the Project.

 

(b)                                 The Company shall supply to the Agent, on a quarterly basis, on the last day of each fiscal quarter commencing from the date of this Agreement, a Budget.

 

(c)                                  To the extent any of the following documents are not delivered as a condition precedent under Clause 4.1 (Initial conditions precedent), the Company shall supply to the Agent a certified copy of the same as soon as reasonably practicable after the relevant document(s) become available:

 

(i)                                     each Project Development Document;

 

(ii)                                  the Project Development Plan.

 

(d)                                 The Company shall notify the Agent in writing of:

 

(i)                                     any material amendment, supplement, waiver or release in respect of any of the Project Development Documents, the Budgets or the Project Development Plan; and

 

(ii)                                  any amendment, supplement, waiver or release in respect of a Development Right Document where such amendment, supplement, waiver or release would have a Material Adverse Effect,

 

in each case, as soon as reasonably practicable and in any event within 30 days of any such amendment, supplement, waiver or release and provide the Agent with a copy of the relevant updated document.

 

(e)                                  To the extent not delivered as a condition precedent under Clause 4.1 (Initial conditions precedent), a certified copy of each contract of Property Insurances as soon as reasonably practicable and in any event within two weeks after the initial Utilisation Date.

 

(f)                                   The Company shall deliver to the Agent promptly, and in any event within two weeks after such document becomes available, certified copies of any renewal policy of any of the Property Insurances (including, for the avoidance of doubt, the renewal of any insurances described in paragraph 4(d) of Schedule 2 (Conditions Precedent)).

 

(g)                                  The Company shall deliver to the Agent promptly upon becoming aware of them, the details of any proposed extension of time to the “Long Stop Date” (as defined in the Agreement for Sub-Lease) including the new Long Stop

 

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Date after the proposed extension and details of the circumstances leading or giving rise to the right to extend such Long Stop Date.

 

19.6                        Use of websites

 

(a)                                      The Company may satisfy its obligation under this Agreement to deliver any information in relation to those Lenders (the “Website Lenders”) who accept this method of communication by posting this information onto an electronic website designated by the Company and the Agent (the “Designated Website”) if:

 

(i)                                the Agent expressly agrees (after consultation with each of the Lenders) that it will accept communication of the information by this method;

 

(ii)                             both the Company and the Agent are aware of the address of and any relevant password specifications for the Designated Website; and

 

(iii)                          the information is in a format previously agreed between the Company and the Agent.

 

If any Lender (a “Paper Form Lender”) does not agree to the delivery of information electronically then the Agent shall notify the Company accordingly and the Company shall supply the information to the Agent (in sufficient copies for each Paper Form Lender) in paper form.

 

(b)                                      The Agent shall supply each Website Lender with the address of and any relevant password specifications for the Designated Website following designation of that website by the Company and the Agent.

 

(c)                                       The Company shall promptly upon becoming aware of its occurrence notify the Agent if:

 

(i)                                the Designated Website cannot be accessed due to technical failure;

 

(ii)                             the password specifications for the Designated Website change;

 

(iii)                          any new information which is required to be provided under this Agreement is posted onto the Designated Website;

 

(iv)                         any existing information which has been provided under this Agreement and posted onto the Designated Website is amended; or

 

(v)                            the Company becomes aware that the Designated Website or any information posted onto the Designated Website is or has been infected by any electronic virus or similar software.

 

If the Company notifies the Agent under paragraph (c)(i) or paragraph (c)(v) above, all information to be provided by the Company under this Agreement after the date of that notice shall be supplied in paper form unless and until the Agent and each Website Lender is satisfied that the circumstances giving rise to the notification are no longer continuing.

 

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20.                               General Undertakings

 

The undertakings in this Clause 20 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

 

20.1                        Pari passu ranking

 

Each Obligor shall ensure that its payment obligations under the Finance Documents rank and continue to rank at least pari passu with the claims of all of its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.

 

20.2                        Negative pledge

 

(a)                                      No Obligor shall create or have outstanding, and shall ensure that none of the Principal Controlled Entities will create or have outstanding, any Security upon the whole or any part of their respective present or future assets securing any Relevant Indebtedness, or create or have outstanding any guarantee or indemnity in respect of any Relevant Indebtedness either of an Obligor or of any of the Principal Controlled Entities, without:

 

(i)                                at the same time or prior thereto securing or guaranteeing the liabilities of the Obligors under the Finance Documents equally and ratably therewith; or

 

(ii)                             providing such other Security or guarantee for the Facility as shall be approved by the Majority Lenders.

 

(b)                                      Paragraph (a) above does not apply to:

 

(i)                                any Security arising or already arisen automatically by operation of law which is timely discharged or disputed in good faith by appropriate proceedings;

 

(ii)                             any Security in respect of the obligations of any person which becomes a Principal Controlled Entity or which merges with or into an Obligor or a Principal Controlled Entity after the date of the Indenture which is in existence at the date on which it becomes a Principal Controlled Entity or merges with or into that Obligor or a Principal Controlled Entity;

 

(iii)                          any Security created or outstanding in favour of an Obligor or any Security created by any of the Controlled Entities of the Obligors in favour of any other Controlled Entities of the Obligors;

 

(iv)                         any Security in respect of Relevant Indebtedness of an Obligor or any Principal Controlled Entity with respect to which such Obligor or such Principal Controlled Entity has paid money or deposited money or securities with a paying agent, trustee or depository to pay or discharge in full the obligations of such Obligor or such Principal Controlled Entity in respect thereof (other than the obligation that such money or securities so paid or deposited, and the proceeds therefrom, be sufficient to pay or discharge such obligations in full);

 

(v)                            any Security created in connection with a project financed with, or created to secure, Non-recourse Obligations; or

 

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(vi)                                   any Security arising out of the refinancing, extension, renewal or refunding of any Relevant Indebtedness secured by any Security permitted by paragraphs (ii), (v) or this paragraph (vi); provided that such Relevant Indebtedness is not increased beyond the principal amount thereof (together with the costs of such refinancing, extension, renewal or refunding, including any accrued interest and prepayment premiums or consent fees) and is not secured by any additional property or assets.

 

20.3                        Merger, consolidation and sale of assets

 

No Obligor shall consolidate with or merge into any other person in a transaction or convey, transfer or lease its properties and assets substantially as an entirety to any person unless:

 

(a)

 

(i)                                     the relevant Obligor party to that merger or consolidation is the surviving entity; or

 

(ii)                                  any person formed by such consolidation or into or with which that Obligor is merged or to whom that Obligor has conveyed, transferred or leased its properties and assets substantially as an entirety (such entity, the “New Merged Entity”) is a corporation, partnership, trust or other entity validly existing under the laws of the British Virgin Islands, the Cayman Islands, the PRC or Hong Kong and such person expressly assumes, by an accession deed in form and substance reasonably satisfactory to the Lenders, all of that Obligor’s obligations under the Finance Documents, including any of its obligations under Clause 12 (Tax Gross Up and Indemnities);

 

(b)                                      immediately after given effect to such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing; and

 

(c)                                       the relevant Obligor or the New Merged Entity (as the case may be) delivers to the Agent an Officer’s Certificate and an opinion of independent legal firm of internationally recognised standing that is reasonably acceptable to the Agent, each stating that such consolidation, merger, conveyance, transfer or lease and the accession deed referred in paragraph (a)(ii) above is in compliance with the Finance Documents and that all conditions precedent therein provided for relating to such transaction have been complied with.

 

20.4                        Sanctions

 

(a)                                      No Obligor shall use any of the funds advanced under this Agreement directly or indirectly for the purpose of, or with the effect of, funding or facilitating any activities or business activities in, with or relating to (a) Crimea, Cuba, Sudan, Iran, Syria or North Korea, unless such countries are no longer the subject of Sanctions; and (b) any other countries that are, or become, the subject of Sanctions (as notified in writing by the Agent (acting on behalf of any Lenders) to such Obligor from time to time) where such utilisation would be prohibited under Sanctions.

 

(b)                                      No Obligor shall use any of the funds advanced under this Agreement directly or indirectly for the purpose of, or with the effect of, funding or

 

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facilitating, any activities or business activities or dealings of or with any person that is/are the subject of Sanctions and/or subject to economic or trade sanctions, restrictions or embargoes by any other governmental or supranational body notified in writing by the Agent (acting on behalf of any Lenders) to such Obligor from time to time. This includes in particular (but without limitation) business activities involving persons named on any sanctions lists issued by any of the aforementioned bodies.

 

20.5                             Anti-corruption

 

No Obligor will directly or indirectly use the proceeds of the Facility in a manner, or lend, contribute or otherwise make available such proceeds to any subsidiary, affiliate, joint venture partner or other person or entity for the purpose of financing or facilitating any activity, that would violate applicable anti-corruption laws and regulations including without limitation to the extent applicable the UK Bribery Act 2010 and the United States Foreign Corrupt Practices Act of 1977.

 

20.6                             Anti-money laundering

 

Each Obligor will at all times have in place appropriate procedures and policies designed to promote and achieve compliance by it with all applicable laws and regulations relating to Money Laundering.

 

20.7                             No other business

 

(a)                                 The Company shall not trade or carry on any business except for the development and management of the Project.

 

(b)                                 The Company shall not enter into any material agreement other than the relevant Finance Documents, the Project Development Documents, the Development Right Documents, the Property Insurances, contracts facilitating the issuance of a security in favour of the Airport Authority in connection with the Project, and, in each case, any other commitment reasonably ancillary thereto.

 

(c)                                  The Company shall not assign, transfer, novate or otherwise dispose of any or all of its rights and/or obligations under any of the Project Development Documents, Development Right Documents and Property Insurances.

 

20.8                             Practical Completion

 

Each Obligor shall ensure that Practical Completion occurs by no later than the Long Stop Date (as defined in the Agreement for Sub-Lease), as may be extended pursuant to the terms of the Agreement for Sub-Lease in its agreed form.

 

20.9                             Property Insurances

 

(a)                                 The Company shall maintain or procure to be maintained insurances on and in relation to the Property against those risks and to the extent as is usual for companies carrying on the same or substantially similar business.

 

(b)                                 Without limiting the foregoing in paragraph (a), such insurances shall:

 

(i)                                     insure the Company (or, if applicable, a relevant Group Member or a Principal Controlled Entity) in respect of its interests in the Property and the plant and machinery on the Property (including fixtures and improvements) for their full replacement value (being the total cost

 

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of entirely rebuilding, reinstating or replacing the relevant asset if it is completely destroyed, together with all related fees and demolition costs);

 

(ii)           provide cover for site clearance, shoring or propping up, professional fees (including any applicable Indirect Tax) together with adequate allowance for inflation;

 

(iii)          include public liability and third party liability insurance;

 

(iv)          insure such other risks as a prudent company or other person in the same business as the Company would insure; and

 

(v)           any other insurance as may be required under the Agreement for Sub-Lease or by the Airport Authority,

 

in each case with a reputable independent insurance company or underwriters acceptable to the Majority Lenders.

 

20.10                      CNAC Facility

 

The Company shall ensure that the total commitment amount under the CNAC Facility, when aggregated with the Total Commitments, will not exceed HK$11,775,000,000 (or its equivalent in another currency or currencies).

 

21.                                    Events of Default

 

Each of the events or circumstances set out in the following sub-clauses of this Clause 21 (other than Clause 21.8 (Acceleration)) is an Event of Default.

 

21.1                             Non-payment

 

(a)                                 The Company fails to pay the principal amount in respect of the Facility when due and payable (whether at the Final Repayment Date or upon acceleration or otherwise).

 

(b)                                 The Company fails to pay interest in respect of any Loan within 30 days after such interest becomes due and payable.

 

(c)                                  The Guarantor does not pay any amount payable in respect of the principal amount of the Facility when such amount becomes due and payable.

 

(d)                                 The Guarantor does not pay any amount payable in respect of any interest on any Loan within 30 days after such amount becomes due and payable.

 

21.2                             Specified Defaults

 

An Obligor defaults in the performance of or breaches its obligations under Clause 20.3 (Merger, consolidation and sale of assets).

 

21.3                             Other obligations

 

An Obligor defaults in the performance of or breaches any provision of the Finance Documents (other than a default specified in Clauses 21.1 (Non-payment) or 21.2 (Specified Defaults) above) and such default or breach continues for a period of 30 consecutive days after written notice by the Agent.

 

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21.4                        Cross Default

 

An event of default (howsoever defined) occurs under the facility documentation for the CNAC Facility.

 

21.5                        Involuntary proceedings

 

In relation to any Obligor or any Principal Controlled Entity, a court having jurisdiction enters in the premises of:

 

(a)                                 a decree or order for relief in respect of it or any of the Principal Controlled Entities in an involuntary case or proceeding under any applicable bankruptcy, insolvency or other similar law; or

 

(b)                                 a decree or order adjudging it or any of the Principal Controlled Entities bankrupt or insolvent, or approving as final and nonappealable a petition seeking reorganisation, arrangement, adjustment, or composition of or in respect of it or any of the Principal Controlled Entities under any applicable bankruptcy, insolvency or other similar law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator, or other similar official of it or any of the Principal Controlled Entities or of any substantial part of its or their respective property, or ordering the winding up or liquidation of their respective affairs (or any similar relief granted under any foreign laws),

 

(c)                                  and in any such case the continuance of any such decree or order for relief or any such other decree or order unstayed and in effect for a period of 90 consecutive calendar days.

 

21.6                        Voluntary proceedings

 

An Obligor or any of the Principal Controlled Entities:

 

(a)                                 commence a voluntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency or other similar law or of any other case or proceeding to be adjudicated bankrupt or insolvent; or

 

(b)                                 consent to the entry of a decree or order for relief in respect of it or any of the Principal Controlled Entities in an involuntary case or proceeding under any applicable bankruptcy, insolvency or other similar law or the commencement of any bankruptcy or insolvency case or proceeding against it or any Principal Controlled Entity; or

 

(c)                                  file a petition or answer or consent seeking reorganisation or relief with respect to it or any of the Principal Controlled Entities under any applicable bankruptcy, insolvency or other similar law, or consent to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator, or other similar official of it or any of the Principal Controlled Entities or of any substantial part of its or their respective property pursuant to any such law; or

 

(d)                                 make a general assignment for the benefit of creditors in respect of any indebtedness as a result of an inability to pay such indebtedness as it becomes due, or admit in writing of its inability to pay debts generally as they become due, or take corporate action that resolves to commence any such action.

 

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21.7                             Illegality

 

Any obligation of the Obligors under the Finance Documents or any Finance Document is or becomes or is claimed by any Obligor to be unenforceable, invalid or ceases to be in full force and effect otherwise than is permitted by the terms of this Agreement.

 

21.8                             Acceleration

 

At any time while an Event of Default is continuing the Agent may, and shall if so directed by a Lender or Lenders whose Commitments aggregate more than 662/3% of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than 662/3% of the Total Commitments immediately prior to the reduction), by notice to the Company:

 

(a)                            without prejudice to the participations of any Lenders in any Loans then outstanding:

 

(i)                                     cancel the Commitments (and reduce them to zero), whereupon they shall immediately be cancelled (and reduced to zero); or

 

(ii)                                  cancel any part of any Commitment (and reduce such Commitment accordingly), whereupon the relevant part shall immediately be cancelled (and the relevant Commitment shall be immediately reduced accordingly); and/or

 

(b)                            declare that all or part of the Loans, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable, whereupon they shall become immediately due and payable; and/or

 

(c)                             declare that all or part of the Loans be payable on demand, whereupon they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders.

 

22.                                    Changes to the Lenders 

 

22.1                             Transfers by the Lenders

 

(a)                            Subject to this Clause 22, a Lender (the “Existing Lender”) may:

 

(i)                                     transfer by novation any of its rights and obligations, under the Finance Documents to another bank or financial institution (the “New Lender”); and

 

(ii)                                  sub-participate any of its rights and/or obligations under this Agreement.

 

(b)                            Subject to Clause 22.9 (Security over Lenders’ rights), an Existing Lender shall not be permitted to assign any of its rights under the Finance Documents.

 

22.2                             Conditions of transfer or sub-participation

 

(a)                            Subject to paragraph (b) below, the prior written consent of the Obligors is required for any transfer or sub-participation by an Existing Lender.

 

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(b)                            The prior written consent of the Obligors is not required for a transfer by an Existing Lender if the relevant transfer is:

 

(i)                                     to another Lender or an Affiliate of a Lender; or

 

(ii)                                  made at a time when an Event of Default is continuing,

 

unless such transfer is to a Prohibited Transferee, in which case consent of the Obligors will be required in accordance with paragraph (a) above.

 

(c)                             Any transfer of a Lender’s rights or obligations under the Finance Documents must be in a minimum amount of HK$250,000,000 (and following any such transfer by a Lender, unless that Lender has transferred all of its rights and obligations under the Finance Documents, that Lender must retain rights and obligations in a minimum amount of HK$250,000,000 or, in each case, such lower amount with the consent of the Obligors.

 

(d)                            A transfer will be effective only if the procedure set out in Clause 22.5 (Procedure for transfer) is complied with.

 

(e)                             If:

 

(i)                                     a Lender transfers any of its rights and obligations under the Finance Documents or changes its Facility Office; and

 

(ii)                                  as a result of circumstances existing at the date the transfer occurs, the Company would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 12 (Tax Gross Up and Indemnities) or Clause 13 (Increased Costs),

 

then the New Lender or Lender acting through its new Facility Office is only entitled to receive payment under those clauses to the same extent as the Existing Lender or Lender acting through its previous Facility Office would have been if the transfer had not occurred.

 

(f)                              Each New Lender, by executing the relevant Transfer Certificate, confirms, for the avoidance of doubt, that the Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the transfer becomes effective in accordance with this Agreement and that it is bound by that decision to the same extent as the Existing Lender would have been had it remained a Lender.

 

(g)                             The right of any Lender to make transfers and enter into sub-participations as provided by this Clause 22 is in any event subject to that Lender procuring that Confidentiality Undertakings are entered into and delivered to the Company as provided by Clause 24 (Disclosure of Information).

 

22.3                             Transfer fee

 

Unless the Agent otherwise agrees and excluding any transfer to an Affiliate of a Lender, the New Lender shall, on the date upon which a transfer takes effect, pay to the Agent (for its own account) a fee of US$2,500.

 

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22.4                             Limitation of responsibility of Existing Lenders

 

(a)                            Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for:

 

(i)                                     the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents;

 

(ii)                                  the financial condition of any Obligor;

 

(iii)                               the performance and observance by any Obligor of its obligations under the Finance Documents or any other documents; or

 

(iv)                              the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document,

 

and any representations or warranties implied by law are excluded.

 

(b)                            Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

 

(i)                                     has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender in connection with any Finance Document; and

 

(ii)                                  will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities whilst any amount is or may be outstanding under the Finance Documents or any Commitment is in force.

 

(c)                             Nothing in any Finance Document obliges an Existing Lender to:

 

(i)                                     accept a re-transfer from a New Lender of any of the rights and obligations transferred under this Clause 22; or

 

(ii)                                  support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Obligor of its obligations under the Finance Documents or otherwise.

 

22.5                             Procedure for transfer

 

(a)                            Subject to the conditions set out in Clause 22.2 (Conditions of transfer or sub-participation) a transfer is effected in accordance with paragraph (c) below when:

 

(i)                                     the Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender. The Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate; and

 

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(ii)                                  when the Intercreditor Agreement has been entered into, the New Lender enters into documentation required for it to accede as a party to the Intercreditor Agreement in accordance with the terms of the Intercreditor Agreement.

 

(b)                            The Agent shall not be obliged to execute a Transfer Certificate delivered to it by the Existing Lender and the New Lender unless it is satisfied that it has completed all “know your customer” and other similar procedures that it is required (or deems desirable) to conduct in relation to the transfer to such New Lender.

 

(c)                             On the Transfer Date:

 

(i)                                     to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents, each of the Obligors and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their respective rights against one another under the Finance Documents shall be cancelled (being the “Discharged Rights and Obligations”);

 

(ii)                                  each of the Obligors and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as that Obligor and the New Lender have assumed and/or acquired the same in place of that Obligor and the Existing Lender;

 

(iii)                               the Agent, the Mandated Lead Arrangers, the New Lender and other Lenders shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Agent, the Mandated Lead Arrangers and the Existing Lender shall each be released from further obligations to each other under this Agreement; and

 

(iv)                              the New Lender shall become a Party as a “Lender”.

 

(d)                            The procedure set out in this Clause 22.5 shall not apply to any right or obligation under any Finance Document (other than this Agreement) if and to the extent its terms, or any laws or regulations applicable thereto, provide for or require a different means of transfer of such right or obligation or prohibit or restrict any transfer of such right or obligation, unless such prohibition or restriction shall not be applicable to the relevant transfer or each condition of any applicable restriction shall have been satisfied.

 

22.6                             Copy of Transfer Certificate to Company

 

The Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate, send to the Company a copy of that Transfer Certificate.

 

22.7                             Existing consents and waivers

 

A New Lender shall be bound by any consent, waiver, election or decision given or made by the relevant Existing Lender under or pursuant to any Finance Document prior to the coming into effect of the relevant transfer to such New Lender.

 

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22.8                             Exclusion of Agent’s liability

 

In relation to any transfer pursuant to this Clause 22, each Party acknowledges and agrees that the Agent shall not be obliged to enquire as to the accuracy of any representation or warranty made by a New Lender in respect of its eligibility as a Lender.

 

22.9                             Security over Lenders’ rights

 

In addition to the other rights provided to Lenders under this Clause 22, each Lender may without consulting with or obtaining consent from any Obligor at any time charge, assign or otherwise create Security in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including, without limitation, any charge, assignment or other Security to secure obligations to a federal reserve or central bank, except that no such charge, assignment or Security shall:

 

(a)                            release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security for the Lender as a party to any of the Finance Documents; or

 

(b)                            require any payments to be made by an Obligor other than or in excess of, or grant to any person any more extensive rights than, those required to be made or granted to the relevant Lender under the Finance Documents.

 

23.                                    Assignment or Transfer by the Obligors

 

No Obligor may assign or transfer any of its rights or obligations under any Finance Document, except with the prior written consent of all the Lenders.

 

24.                                    Disclosure of Information

 

24.1                             Obligation to keep information confidential

 

(a)                            Each Finance Party must keep confidential all information relating to any Obligor, the Group, the Finance Documents or the Facility of which a Finance Party becomes aware in its capacity as, or for the purpose of becoming, a Finance Party or which is received by a Finance Party in relation to, or for the purpose of becoming a Finance Party under, the Finance Documents or the Facility from either (i) any Group Member or any of its advisers; or (ii) another Finance Party, if the information was obtained by that Finance Party directly or indirectly from any Group Member or any of its advisers (regardless of the form such information takes, and including information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information) and shall not use any such information except in connection with the Finance Documents and the Facility.

 

(b)                            However, a Finance Party is entitled to disclose information referred to in paragraph (a) above:

 

(i)                                     if such information is publicly available, other than as a direct or indirect result of a breach by that Finance Party of, or action by its Affiliates that is contrary to the provisions of, this Clause;

 

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(ii)                                  if required to do so in connection with any legal, arbitration or regulatory proceedings or procedure;

 

(iii)                               if required to do so under any applicable law or regulation;

 

(iv)                              if required or requested to do so by any governmental, banking, taxation or other regulatory authority;

 

(v)                                 to its professional advisers and any other person providing services to it (including, without limitation, any provider of administrative or settlement services, external auditors, insurers and insurance brokers) provided that such person is under a duty of confidentiality, contractual or otherwise, to that Finance Party;

 

(vi)                              to its officers, employees, directors and agents on a need-to-know basis provided that such person is under a duty of confidentiality, contractual or otherwise, to that Finance Party;

 

(vii)                           to the head office, branches, representative offices, Subsidiaries, related corporations or Affiliate of any Finance Party (each a “Finance Party Related Party”) and each Finance Related Party shall be permitted to disclose information as if it were a Finance Party;

 

(viii)                        to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 22.9 (Security over Lenders’ rights);

 

(ix)                              to any other Finance Party;

 

(x)                                 to any person permitted in writing by the Company;

 

(xi)                              to an Obligor; or

 

(xii)                           to the International Swaps and Derivatives Association, Inc. (“ISDA”) or any Credit Derivatives Determination Committee or sub-committee of ISDA where such disclosure is required by them in order to determine whether the obligations under the Finance Documents will be, or in order for the obligations under the Finance Documents to become, deliverable under a credit derivative transaction or other credit linked transaction which incorporates the 2009 ISDA Credit Derivatives Determinations Committees and Auction Settlement Supplement or other provisions substantially equivalent thereto; or

 

(xiii)                        if required to do so under the Intercreditor Agreement.

 

(c)                             A Finance Party may disclose to an Affiliate or any potential transferee or Participant to which a transfer or sub-participation is not expressly prohibited under Clause 22 (Changes to the Lenders) but for the avoidance of doubt not to an Industrial Competitor:

 

(i)                                     a copy of any Finance Document; and

 

(ii)                                  any information which that Finance Party has acquired under or in connection with any Finance Document.

 

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However, before a potential transferee or Participant may receive any confidential information, it must execute in favour of the relevant Finance Party a Confidentiality Undertaking and deliver a copy of the same to the Company. A potential transferee or Participant may itself disclose the documents and information referred to in sub-paragraphs (i) and (ii) to an Affiliate or any person with whom it may enter, or has entered into, any kind of transfer of an economic or other interest in, or related to, this Agreement so long as the relevant Affiliate or transferee executes in favour of the relevant potential transferee or Participant a Confidentiality Undertaking and delivers a copy of the same to the Company.

 

This Clause supersedes any previous agreement relating to the confidentiality of such information.

 

24.2                             Relevant information

 

Without affecting the responsibility of the relevant Obligor for information supplied by it or on its behalf in connection with any Finance Document, each of the Lenders accepts and acknowledges that:

 

(a)                            some or all of the information (including, without limitations, financial projections and/or other financial data) that has or may be provided to the Lenders (through the Agent or otherwise) is or may constitute relevant information in relation to an Obligor (the “Price Sensitive Information”) and that the use of such information may be regulated or prohibited by applicable laws and regulations relating to, among other things, insider dealing and/or market abuse;

 

(b)                            upon possession of the Price Sensitive Information, a Lender may be prohibited or restricted under the applicable laws and regulations from, among other things, dealing in or counselling or procuring another person to deal in the listed securities of the Guarantor or its derivatives, or the listed securities of a related corporation of the Guarantor or its derivatives, or otherwise from using or disclosing the Price Sensitive Information;

 

(c)                             none of the Agent nor the Mandated Lead Arrangers will be liable for any action taken by it under or in connection with distributing the information provided that where it is required to act on the instructions of any Lender or Lenders, the Agent may ask for a confirmation or certificate (in form and substance satisfactory to the Agent) confirming that the instructing Lender or Lenders is or are not in possession of any Price Sensitive Information and that it is or they are not instructing the Agent, to act as a consequence of being in possession of any Price Sensitive Information; and

 

(d)                            any information received under or in connection with the Finance Documents shall not be used for any unlawful purpose, and each Lender shall make an independent evaluation of, and ensure its compliance with, any legal and regulatory restrictions on the use and/or disclosure of such information.

 

24.3                             Individual Data

 

In respect of any data or information (including, without limitation, data covered by banking secrecy and/or personal data laws) regarding an individual (including, without limitation, any employees of an Obligor or its Affiliates) (“Individual Data”) provided to any Finance Party, each Obligor represents and warrants that it has obtained each relevant individual’s prior consent to the collection, use, disclosure and

 

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processing of his/her Individual Data by the Finance Parties, and that such Individual Data is true, accurate and complete in all material respects.

 

25.                               Role of the Administrative Parties

 

25.1                        Appointment of the Agent

 

(a)                                 Each of the other Finance Parties appoints the Agent to act as its agent under and in connection with the Finance Documents.

 

(b)                                 Each of the other Finance Parties authorises the Agent to exercise the rights, powers, authorities and discretions specifically given to the Agent under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

 

25.2                        Duties of the Agent

 

(a)                                 Subject to paragraph (b) below, the Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Agent for that Party by any other Party.

 

(b)                                 Without prejudice to Clause 22.6 (Copy of Transfer Certificate to Company), paragraph (a) above shall not apply to any Transfer Certificate.

 

(c)                                  Except where a Finance Document specifically provides otherwise, the Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

 

(d)                                 If the Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the Finance Parties.

 

(e)                                  If the Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than to any Administrative Party) under this Agreement it shall promptly notify the other Finance Parties.

 

(f)                                   The Agent shall provide to each Obligor within ten (10) Business Days of the last Business Day of each calendar month, a list (which may be in electronic form) setting out the names of the Lenders as at that Business Day, their respective Commitments, the address and fax number (and the department or office, if any, for whose attention any communication is to be marked) of each Lender for any communications to be made or document to be delivered under or in connection with the Finance Documents, the electronic mail address and/or any other information required to enable the sending and receipt by electronic mail or other electronic means to and by each Lender to whom any communication under or in connection with the Finance Documents may be made by that means and the account details of each Lender for any payment to be distributed by the Agent to that Lender under the Finance Documents.

 

(g)                                  The Agent shall not be liable to account for interest on money paid to it by or recovered from any Obligor. Monies held by the Agent need not be segregated except as required by law.

 

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(h)                                 The Agent’s duties under the Finance Documents are solely mechanical and administrative in nature.

 

25.3                        Role of the Mandated Lead Arrangers

 

Except as specifically provided in the Finance Documents, the Mandated Lead Arrangers have no obligations of any kind to any other Party under or in connection with any Finance Document.

 

25.4                        No fiduciary duties

 

(a)                                 The Administrative Parties shall not otherwise have, nor be deemed to have, assumed any obligations to, or trust or fiduciary relationship with, any other party to this Agreement.

 

(b)                                 None of the Agent or the Mandated Lead Arrangers shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account.

 

25.5                        Business with the Group

 

(a)                                 Any Administrative Party may accept deposits from, lend money to and generally engage in any kind of banking or other business with any Group Member.

 

(b)                                 Each of the Lenders hereby irrevocably waives, in favour of the Agent, any conflict of interest which may arise by virtue of the Agent acting in various capacities under the Finance Documents or for other customers of the Agent. Each of the Lenders acknowledges that the Agent and its affiliates (together, the “Agent Parties”) may have interests in, or may be providing or may in the future provide financial or other services to other parties with interests which a Lender may regard as conflicting with its interests and may possess information (whether or not material to the Lenders) other than as a result of the Agent acting as Agent under the Finance Documents, that the Agent may not be entitled to share with any Lender.

 

(c)                                  Consistent with its long-standing policy to hold in confidence the affairs of its customers, the Agent will not disclose confidential information obtained from any Lender (without its consent) to any of the Agent’s other customers nor will it use on the Lender’s behalf any confidential information obtained from any other customer. Without prejudice to the foregoing, each of the Lenders agrees that each of the Agent Parties may deal (whether for its own or its customers’ account) in, or advise on, securities of any party and that such dealing or giving of advice, will not constitute a conflict of interest for the purposes of the Finance Documents.

 

25.6                        Rights and discretions of the Agent

 

(a)                                 The Agent may rely on:

 

(i)                                     any representation, notice or document believed by it to be genuine, correct and appropriately authorised; and

 

(ii)                                  any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify.

 

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(b)                                 The Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Lenders) that:

 

(i)                                     no Default has occurred (unless it has actual knowledge of a Default arising under Clause 21.1 (Non-payment)); and

 

(ii)                                  any right, power, authority or discretion vested in any Party or the Majority Lenders has not been exercised.

 

(c)                                  The Agent may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts.

 

(d)                                 The Agent may act in relation to the Finance Documents through its personnel and agents.

 

(e)                                  The Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement.

 

(f)                                   Without prejudice to the generality of paragraph (e) above, the Agent may disclose the identity of a Defaulting Lender to the other Finance Parties and the Company and shall disclose the same upon the written request of the Company or the Majority Lenders.

 

(g)                                  Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent nor any Mandated Lead Arranger is obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

 

25.7                        No Duty to Monitor

 

The Agent shall not be bound to enquire:

 

(a)                                      whether or not any Default has occurred;

 

(b)                                      as to the performance, default or any breach by any Party of its obligations under any Finance Document; or

 

(c)                                       whether any other event specified in any Finance Document has occurred.

 

25.8                        Majority Lenders’ instructions

 

(a)                                      Unless a contrary indication appears in a Finance Document, the Agent shall (i) exercise any right, power, authority or discretion vested in it as Agent in accordance with any instructions given to it by the Majority Lenders (or, if so instructed by the Majority Lenders, refrain from exercising any right, power, authority or discretion vested in it as Agent) and (ii) not be liable for any act (or omission) if it acts (or refrains from taking any action) in accordance with an instruction of the Majority Lenders.

 

(b)                                      Unless a contrary indication appears in a Finance Document, any instructions given by the Majority Lenders will be binding on all the Finance Parties.

 

(c)                                       The Agent may refrain from acting in accordance with the instructions of the Majority Lenders (or, if appropriate, the Lenders) or under paragraph (d) below until it has received such security as it may require for any cost, loss or liability (together with any associated Indirect Tax) which it may incur in complying with the instructions.

 

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(d)                                 In the absence of instructions from the Majority Lenders, (or, if appropriate, the Lenders) the Agent may act (or refrain from taking action) as it considers to be in the best interest of the Lenders.

 

(e)                                  The Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender’s consent) in any legal or arbitration proceedings relating to any Finance Document.

 

25.9                        Responsibility for documentation

 

No Administrative Party:

 

(a)                                 is responsible for the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by any Administrative Party, an Obligor or any other person given in or in connection with any Finance Document; or

 

(b)                                 is responsible for the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Finance Document;

 

(c)                                  is responsible for any determination as to whether any information provided or to be provided to any Finance Party is non-public information the use of which may be regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise.

 

25.10                 Exclusion of liability

 

(a)                                 Without limiting paragraph (b) below, the Agent shall not be liable for any cost, loss or liability incurred by any Party as a consequence of:

 

(i)                                     the Agent having taken or having omitted to take any action under or in connection with any Finance Document, unless directly caused by the Agent’s gross negligence or wilful misconduct; or

 

(ii)                                  any delay in the crediting to any account of an amount required under the Finance Documents to be paid by the Agent if the Agent shall have taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Agent for the purpose of such payment.

 

(b)                                 No Party (other than the Agent) may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document and any officer, employee or agent of the Agent may rely on this Clause subject to Clause 1.3 (Third party rights) and the provisions of the Third Parties Ordinance.

 

(c)                                  Nothing in this Agreement shall oblige any Administrative Party to conduct any “know your customer” or other procedures in relation to any person on behalf of any Lender and each Lender confirms to each Administrative Party that it is solely responsible for any such procedures it is required to conduct and that it shall not rely on any statement in relation to such procedures made by any Administrative Party.

 

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(d)                                 Notwithstanding anything to the contrary in this Agreement or in any other Finance Document, the Agent shall not in any event be liable for any loss or damage, or any failure or delay in the performance of its obligations hereunder if it is prevented from so performing its obligations by any reason which is beyond the control of the Agent, including, but not limited to, any existing or future law or regulation, any existing or future act of governmental authority, Act of God, flood, war whether declared or undeclared, terrorism, riot, rebellion, civil commotion, strike, lockout, other industrial action, general failure of electricity or other supply, aircraft collision, technical failure, accidental or mechanical or electrical breakdown, computer failure or failure of any money transmission system or any event where, in the reasonable opinion of the Agent, performance of any duty or obligation under or pursuant to this Agreement would or may be illegal or would result in the Agent being in breach of any law, rule, regulation, or any decree, order or judgment of any court, or practice, request, direction, notice, announcement or similar action (whether or not having the force of law) of any relevant government, government agency, regulatory authority, stock exchange or self-regulatory organisation to which the Agent is subject.

 

(e)                                  Notwithstanding any other term or provision of this Agreement to the contrary, the Agent shall not be liable under any circumstances for special, punitive, indirect or consequential loss or damage of any kind whatsoever, whether or not foreseeable, or for any loss of business, goodwill, opportunity or profit, whether arising directly or indirectly and whether or not forseeable, even if the Agent is actually aware of or has been advised of the likelihood of such loss or damage and regardless of whether the claim for such loss or damage is made in negligence, for breach of contract, breach of trust, breach of fiduciary obligation or otherwise. The provisions of this Clause shall survive the termination or expiry of this Agreement or the resignation or removal of the Agent.

 

25.11                 Refrain from Illegality

 

The Agent may refrain from doing anything which in its opinion will or may be contrary to any relevant law, directive or regulation of any jurisdiction which would or might otherwise render it liable to any person.

 

25.12                 Lenders’ indemnity to the Agent

 

(a)                                 Each Lender shall, in accordance with paragraph (b) below, indemnify the Agent within three Business Days of demand, against any cost, loss or liability incurred by any of them (otherwise than by reason of the relevant Agent’s gross negligence or wilful misconduct) in acting as Agent under the Finance Documents (unless the Agent has been reimbursed by an Obligor pursuant to a Finance Document).

 

(b)                                 The proportion of such cost, loss or liability to be borne by each Lender shall be in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero.

 

(c)                                  The Lenders’ indemnity to the Agent shall survive the termination or expiry of this Agreement and the resignation or replacement of the Agent.

 

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25.13                 Resignation of the Agent

 

(a)                                 The Agent may resign and appoint one of its Affiliates as successor by giving notice to the other Finance Parties and the Company.

 

(b)                                 Alternatively the Agent may resign by giving thirty (30) days’ notice to the other Finance Parties and the Company, in which case the Majority Lenders (with the consent of the Company, such consent not to be unreasonably withheld) may appoint a successor Agent.

 

(c)                                  If the Majority Lenders have not appointed a successor Agent in accordance with paragraph (b) above within thirty (30) days after notice of resignation was given, the retiring Agent (with the consent of the Company, such consent not to be unreasonably withheld) may appoint a successor Agent.

 

(d)                                 The retiring Agent shall make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents.

 

(e)                                  The Agent’s resignation notice shall take effect only upon the appointment of a successor, provided that notwithstanding any of the foregoing, the resignation of the Agent otherwise in accordance with the provisions of this Clause 25 shall be effective immediately in the event that the Agent’s continuing appointment would conflict with (and such resignation would be required by) applicable law or the Agent’s internal policies (including without limitation with respect to “know-your-client” and/or any conflict of interest) that in each case, cannot be resolved to the reasonable satisfaction of the Agent.

 

(f)                                   Upon the appointment of a successor, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 25.13. Any successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

 

(g)                                  After consultation with the Company, the Majority Lenders may, by notice to the Agent, require it to resign in accordance with paragraph (b) above. In this event, the Agent shall resign in accordance with paragraph (b) above.

 

(h)                                 The Agent shall resign in accordance with paragraph (b) above (and, to the extent applicable, shall use reasonable endeavours to appoint a successor Agent pursuant to paragraph (c) above) if on or after the date which is three months before the earliest FATCA Application Date relating to any payment to the Agent under the Finance Documents, either:

 

(i)                                     the Agent fails to respond to a request under Clause 25.15 (FATCA Information) and the Company or a Lender reasonably believes that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or

 

(ii)                                  any information supplied by the Agent pursuant to Clause 25.15 (FATCA Information) indicates that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or

 

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(iii)                               the Agent notifies the Company and the Lenders that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date,

 

and (in each case) the Company or a Lender reasonably believes that a Party will be required to make a FATCA Deduction that would not be required if the Agent were a FATCA Exempt Party, and the Company or that Lender, by notice to the Agent, requires it to resign.

 

(iv)                              For the purposes of this paragraph (h):

 

“Code” means the US Internal Revenue Code of 1986.

 

“FATCA” has the meaning given to that term in Clause 12.1 (Tax definitions).

 

“FATCA Application Date” means:

 

(A)                               in relation to a “withholdable payment” described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments from sources within the US), 1 July 2014; or

 

(B)                               in relation to a “passthru payment” described in section 1471(d)(7) of the Code not falling within paragraph (a) above, the first date from which such payment may become subject to a deduction or withholding required by FATCA.

 

“FATCA Deduction” has the meaning given to that term in Clause 12.1 (Tax definitions).

 

“FATCA Exempt Party” means a Party that is entitled to receive payments free from any FATCA Deduction.

 

25.14                 Replacement of the Agent

 

(a)                                 After consultation with the Company, the Majority Lenders may, by giving thirty (30) days’ notice to the Agent (or, at any time the Agent is an Impaired Agent, by giving any shorter notice determined by the Majority Lenders) replace the Agent or by appointing a successor Agent (acting through an office in Hong Kong).

 

(b)                                 The retiring Agent shall (at its own cost if it is an Impaired Agent and otherwise at the expense of the Lenders) make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents.

 

(c)                                  The appointment of the successor Agent shall take effect on the date specified in the notice from the Majority Lenders to the retiring Agent. As from this date, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 25.14 (and any agency fees for the account of the retiring Agent shall cease to accrue from (and shall be payable on) that date).

 

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(d)                                 Any successor Agent and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

 

25.15                 FATCA Information

 

(a)                                 Subject to paragraph (c) below, the Agent shall, within ten Business Days of a reasonable request by another Party:

 

(i)                                     confirm to that other Party whether it is:

 

(A)                               a FATCA Exempt Party; or

 

(B)                               not a FATCA Exempt Party; and

 

(ii)                                  supply to that other Party such forms, documentation and other information relating to its status under FATCA (including its applicable “passthru payment percentage” or other information required under the US Treasury Regulations or other official guidance including intergovernmental agreements) as that other Party reasonably requests for the purposes of that other Party’s compliance with FATCA.

 

(b)                                 If the Agent confirms to another Party pursuant to paragraph (a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt Party, the Agent shall notify that other Party reasonably promptly.

 

(c)                                  Paragraph (a) above shall not oblige the Agent to do anything which would or might in its reasonable opinion constitute a breach of:

 

(i)                                     any law or regulation;

 

(ii)                                  any fiduciary duty; or

 

(iii)                               any duty of confidentiality.

 

(d)                                 If the Agent fails to confirm its status or to supply forms, documentation or other information requested in accordance with paragraph (a) above (including, for the avoidance of doubt, where paragraph (c) above applies), then:

 

(i)                                     if the Agent failed to confirm whether it is (and/or remains) a FATCA Exempt Party then the Agent shall be treated for the purposes of the Finance Documents as if it is not a FATCA Exempt Party; and

 

(ii)                                  if the Agent failed to confirm its applicable “passthru payment percentage” then the Agent shall be treated for the purposes of the Finance Documents (and payments made thereunder) as if its applicable “passthru payment percentage” is 100%,

 

until (in each case) such time as the Agent provides the requested confirmation, forms, documentation or other information.

 

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25.16                 Confidentiality

 

(a)                                 In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its agency or, as the case may be, trustee division which shall be treated as a separate legal person from any other of its branches, divisions or departments.

 

(b)                                 If information is received by another branch, division or department of the legal person which is the Agent, it may be treated as confidential to that branch, division or department and the Agent shall not be deemed to have notice of it.

 

(c)                                  Notwithstanding any other provision of any Finance Document to the contrary, the Agent shall not be obliged to disclose to any Finance Party any information supplied to it by an Obligor or any Affiliates of an Obligor on a confidential basis and for the purpose of evaluating whether any waiver or amendment is or may be required or desirable in relation to any Finance Document.

 

25.17                 Relationship with the Lenders

 

(a)                                 Subject to Clause 27.2 (Distributions by the Agent), the Agent may treat each Lender as a Lender, entitled to payments under this Agreement and acting through its Facility Office unless it has received not less than five (5) Business Days prior notice from that Lender to the contrary in accordance with the terms of this Agreement.

 

(b)                                 Each Lender shall supply the Agent with any information that the Agent may reasonably specify as being necessary or desirable to enable the Agent to perform its functions as Agent.

 

(c)                                  Any Lender may by notice to the Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or despatched to that Lender under the Finance Documents. Such notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted under Clause 29.5 (Electronic communication)) electronic mail address and/or any other information required to enable the sending and receipt of information by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a substitute address, fax number, electronic mail address, department and officer by that Lender for the purposes of Clause 29.2 (Addresses) and paragraph (a) of Clause 29.5 (Electronic communication) and the Agent shall be entitled to treat such person as the person entitled to receive all such notices, communications, information and documents as though that person were that Lender.

 

25.18                 Credit appraisal by the Lenders

 

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms to each Administrative Party that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to:

 

(a)                                 the financial condition, status and nature of each Group Member;

 

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(b)                            the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document;

 

(c)                             whether that Finance Party has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and

 

(d)                            the adequacy, accuracy and/or completeness of any information provided by the Agent, any Party or by any other person under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document.

 

25.19                 Reference Banks

 

If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an Affiliate) ceases to be a Lender, the Agent shall (with the consent of the Company, such consent not to be unreasonably withheld) appoint another Lender or an Affiliate of a Lender or any bank approved by the Majority Lenders to replace that Reference Bank.

 

25.20                 Agent’s management time

 

Any amount payable to the Agent under Clause 15.3 (Indemnity to the Agent), Clause 16 (Costs and Expenses) and Clause 25.12 (Lenders’ indemnity to the Agent) shall include the reasonable cost of utilising the Agent’s management time or other resources in respect of any duties which are outside the scope of the normal duties of the Agent under the Finance Documents and will be calculated on the basis of such reasonable daily or hourly rates as the Agent may notify to the Company and the Lenders, and is in addition to any fee paid or payable to the Agent under Clause 11 (Fees). For the avoidance of doubt, any action required to be undertaken by the Agent in respect of or in relation to any Default, change in structure of the Facility, including acts contemplated in Clauses 16.2 (Amendment costs) and 16.3 (Enforcement costs) shall not be regarded as tasks falling within the scope of the normal duties of the Agent under the Finance Documents. In the event of any dispute in respect of such cost of utilising the Agent’s management time or other resources, the costs to be paid shall be as reasonably determined by the Agent.

 

25.21                 Deduction from amounts payable by the Agent

 

If any Party owes an amount to the Agent under the Finance Documents the Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed. For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.

 

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26.                               Sharing among the Finance Parties 

 

26.1                        Payments to Finance Parties

 

If a Finance Party (a “Recovering Finance Party”) receives or recovers (whether by set off or otherwise) any amount from an Obligor other than in accordance with Clause 27 (Payment Mechanics) (a “Recovered Amount”) and applies that amount to a payment due under the Finance Documents then:

 

(a)                                 the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery, to the Agent;

 

(b)                                 the Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Agent and distributed in accordance with Clause 27 (Payment Mechanics), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or distribution; and

 

(c)                                  the Recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the “Sharing Payment”) equal to such receipt or recovery less any amount which the Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 27.6 (Partial payments).

 

26.2                        Redistribution of payments

 

The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other than the Recovering Finance Party) (the “Sharing Finance Parties”) in accordance with Clause 27.6 (Partial payments) towards the obligations of that Obligor to the Sharing Finance Parties.

 

26.3                        Recovering Finance Party’s rights

 

(a)                                 On a distribution by the Agent under Clause 26.2 (Redistribution of payments) of a payment received by a Recovering Finance Party from an Obligor, as between the relevant Obligor and the Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by that Obligor.

 

(b)                                 If and to the extent that the Recovering Finance Party is not able to rely on its rights under paragraph (a) above, the relevant Obligor shall be liable to the Recovering Finance Party for a debt equal to the Sharing Payment which is immediately due and payable.

 

26.4                        Reversal of redistribution

 

If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:

 

(a)                                 each Sharing Finance Party shall, upon request of the Agent, pay to the Agent for the account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay) (the “Redistributed Amount”); and

 

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(b)                                 as between the relevant Obligor and each relevant Sharing Finance Party, an amount equal to the relevant Redistributed Amount will be treated as not having been paid by that Obligor.

 

26.5                        Exceptions

 

(a)                                 This Clause 26 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and enforceable claim against the relevant Obligor.

 

(b)                                 A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:

 

(i)                                     it notified that other Finance Party of the legal or arbitration proceedings; and

 

(ii)                                  that other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings.

 

27.                               Payment Mechanics 

 

27.1                        Payments to the Agent

 

(a)                                 On each date on which an Obligor or a Lender is required to make a payment under a Finance Document, that Obligor or Lender shall make the same available to the Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

 

(b)                                 Payment shall be made to such account in the principal financial centre of the country of that currency with such bank as the Agent specifies.

 

27.2                        Distributions by the Agent

 

(a)                                 Each payment received by the Agent under the Finance Documents for another Party shall, subject to Clause 27.3 (Distributions to an Obligor), Clause 27.4 (Clawback), Clause 27.6 (Partial payments) and Clause 25.21 (Deduction from amounts payable by the Agent) be made available by the Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office):

 

(i)                                     with respect to the Original Lenders, to such account as specified in Schedule 6 (Account Details) (or such other account as that Party may notify to the Agent by not less than five Business Days’ notice with a bank in the principal financial centre of the country of that currency); or

 

(ii)                                  with respect to any other Party, to such account as that Party may notify to the Agent by not less than five Business Days’ notice with a bank in the principal financial centre of the country of that currency.

 

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(b)                                 The Agent shall distribute payments received by it in relation to all or any part of a Loan to the Lender indicated in the records of the Agent as being so entitled on that date PROVIDED THAT the Agent is authorised to distribute payments to be made on the date on which any transfer becomes effective pursuant to Clause 22 (Changes to the Lenders) to the Lender so entitled immediately before such transfer took place regardless of the period to which such sums relate.

 

27.3                        Distributions to an Obligor

 

The Agent may (with the consent of the relevant Obligor or in accordance with Clause 28 (Set-Off)) apply any amount received by it for that Obligor in or towards payment (in the currency and funds of receipt) of any amount due from that Obligor under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.

 

27.4                        Clawback

 

(a)                                 Where a sum is to be paid to the Agent under the Finance Documents for another Party, the Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.

 

(b)                                 If the Agent pays an amount to another Party and it proves to be the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Agent shall on demand refund the same to the Agent together with interest on that amount from the date of payment to the date of receipt by the Agent, calculated by the Agent to reflect its cost of funds.

 

27.5                        Impaired Agent

 

(a)                                 If, at any time, the Agent becomes an Impaired Agent, the relevant Obligor or a Lender which is required to make a payment under the Finance Documents to the Agent in accordance with Clause 27.1 (Payments to the Agent) may instead either:

 

(i)                                     pay that amount direct to the required recipient(s); or

 

(ii)                                  if in its absolute discretion it considers that it is not reasonably practicable to pay that amount direct to the required recipient(s), pay that amount or the relevant part of that amount to an interest-bearing account held with an Acceptable Bank and in relation to which no Insolvency Event has occurred and is continuing, in the name of that Obligor or the Lender making the payment (the “Paying Party”) and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents (the “Recipient Party” or “Recipient Parties”).

 

In each case such payments must be made on the due for payment under the Finance Documents.

 

(b)                                 All interest accrued on the amount standing to the credit of the trust account shall be for the benefit of the Recipient Party or the Recipient Parties pro rata to their respective entitlements.

 

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(c)                                  A Party which has made a payment in accordance with this Clause 27.5 shall be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to the amounts standing to the credit of the trust account.

 

(d)                                 Promptly upon the appointment of a successor Agent in accordance with Clause 25.14 (Replacement of the Agent ), each Paying Party shall (other than to the extent that that Party has given an instruction pursuant to paragraph (e) below) give all requisite instructions to the bank with whom the trust account is held to transfer the amount (together with any accrued interest) to the successor Agent for distribution to the relevant Recipient Party or Recipient Parties in accordance with Clause 27.2 (Distributions by the Agent).

 

(e)                                  A Paying Party shall, promptly upon request by a Recipient Party and to the extent:

 

(i)                                     that it has not given an instruction pursuant to paragraph (d) above; and

 

(ii)                                  that it has been provided with the necessary information by that Recipient Party,

 

give all requisite instructions to the bank with whom the trust account is held to transfer the relevant amount (together with any accrued interest) to that Recipient Party.

 

27.6                        Partial payments

 

(a)                                 If any Finance Party receives or recovers an amount from or in respect of an Obligor under or in connection with any Finance Document which amount is insufficient to, or is not applied to, discharge all the amounts then due and payable by an Obligor under the Finance Documents, then the Agent shall apply that payment towards the obligations of that Obligor under the Finance Documents in the following order:

 

(i)                                     first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Agent under the Finance Documents;

 

(ii)                                  secondly, in or towards payment pro rata of any accrued interest, fee (other than as provided in (i) above) or commission due but unpaid under the Finance Documents;

 

(iii)                               thirdly, in or towards payment pro rata of any principal due but unpaid under this Agreement; and

 

(iv)                              fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents.

 

(b)                                 The  Agent  shall,  if  so  directed  by  the  Majority  Lenders,  vary  the  order  set  out  in  paragraphs  (a)(ii) to  (iv) above.

 

(c)                                  Paragraphs (a) and (b) above will override any appropriation made by an Obligor.

 

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27.7                        No set-off by Obligors

 

All payments to be made by an Obligor under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

 

27.8                        Business Days

 

(a)                                 Any payment which is due to be made on a day (other than a Final Repayment Date) that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not). If a Final Repayment Date is not a Business Day, any payment which is due to be made on that Final Repayment Date shall be made on the preceding Business Day.

 

(b)                                 During any extension of the due date for payment of any principal or Unpaid Sum under paragraph (a) above, interest is payable on the principal or Unpaid Sum at the rate payable on the original due date.

 

27.9                        Currency of account

 

(a)                                 Subject to paragraphs (b) to (e) below, HK Dollar is the currency of account and payment for any sum due from an Obligor under any Finance Document.

 

(b)                                 A repayment of a Loan or Unpaid Sum or a part of a Loan or Unpaid Sum shall be made in the currency in which that Loan or Unpaid Sum is denominated on its due date.

 

(c)                                  Each payment of interest shall be made in the currency in which the sum in respect of which the interest is payable was denominated when that interest accrued.

 

(d)                                 Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.

 

(e)                                  Any amount expressed to be payable in a currency other than HK Dollar shall be paid in that other currency.

 

27.10                 Change of currency

 

(a)                                 Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that country, then:

 

(i)                                     any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Agent (acting reasonably and after consultation with the Company); and

 

(ii)                                  any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Agent (acting reasonably and after consultation with the Company).

 

(b)                                 If a change in any currency of a country occurs, this Agreement will, to the extent the Agent (acting reasonably and after consultation with the Company)

 

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specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Interbank Market and otherwise to reflect the change in currency.

 

28.                               Set-Off

 

While an Event of Default is continuing, a Finance Party may set off any matured obligation due from an Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Obligor, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. That Finance Party shall promptly notify the relevant Obligor of any such set-off or conversion.

 

29.                               Notices

 

29.1                        Communications in writing

 

Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax or letter.

 

29.2                        Addresses

 

The address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is:

 

(a)                                 in the case of the Company and the Guarantor, that identified with its name below;

 

(b)                                 in the case of each Lender, that notified in writing to the Agent on or prior to the date on which it becomes a Party; and

 

(c)                                  in the case of the Agent, that identified with its name below,

 

or any substitute address, fax number or department or officer as the Party may notify to the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent) by not less than five Business Days’ notice.

 

29.3                        Delivery

 

(a)                                 Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will be effective:

 

(i)                                     if by way of fax, only when received in legible form; or

 

(ii)                                  if by way of letter, only when it has been left at the relevant address or five Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address;

 

and, if a particular department or officer is specified as part of its address details provided under Clause 29.2 (Addresses), if addressed to that department or officer.

 

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(b)                                 Any communication or document to be made or delivered to the Agent will be effective only when actually received by the Agent and then only if it is expressly marked for the attention of the department or officer identified with the Agent’s signature below (or any substitute department or officer as the Agent shall specify for this purpose).

 

(c)                                  All notices from or to an Obligor shall be sent through the Agent.

 

(d)                                 Any communication or document which becomes effective, in accordance with paragraphs (a) to (c) above, after 5.00 p.m. in the place of receipt shall be deemed only to become effective on the following day.

 

29.4                        Communication when Agent is Impaired Agent

 

If the Agent is an Impaired Agent the Parties may, instead of communicating with each other through the Agent, communicate with each other directly and (while the Agent is an Impaired Agent) all the provisions of the Finance Documents which require communications to be made or notices to be given to or by the Agent shall be varied so that communications may be made and notices given to or by the relevant Parties directly. This provision shall not operate after a replacement Agent has been appointed.

 

29.5                        Electronic communication

 

(a)                                 Any communication to be made between any two Parties under or in connection with the Finance Documents may be made by electronic mail or other electronic means to the extent that those two Parties agree that, unless and until notified to the contrary, this is to be an accepted form of communication and if those two Parties:

 

(i)                                     notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and

 

(ii)                                  notify each other of any change to their address or any other such information supplied by them by not less than five Business Days’ notice.

 

(b)                                 Any electronic communication made between those two Parties will be effective only when actually received in readable form and in the case of any electronic communication made by a Party to the Agent only if it is addressed in such a manner as the Agent shall specify for this purpose.

 

(c)                                  Any electronic communication which becomes effective, in accordance with paragraph (b) above, after 5.00 p.m. in the place of receipt shall be deemed only to become effective on the following day.

 

29.6                        English language

 

(a)                                 Any notice given under or in connection with any Finance Document must be in English.

 

(b)                                 All other documents provided under or in connection with any Finance Document must be:

 

(i)                                     in English; or

 

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(ii)                                  if not in English, and if so required by the Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document.

 

30.                               Calculations and Certificates 

 

30.1                        Accounts

 

In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate.

 

30.2                        Certificates and determinations

 

Any certification or determination by a Finance Party of a rate or amount under any Finance Document shall set out the basis of calculation in reasonable detail and is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

 

30.3                        Day count convention

 

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 365 days or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice.

 

31.                               Partial invalidity

 

If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.

 

32.                               Remedies and waivers

 

No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right or remedy under the Finance Documents shall operate as a waiver of any such right or remedy or constitute an election to affirm any of the Finance Documents. No election to affirm any of the Finance Documents on the part of any Finance Party shall be effective unless it is in writing. No single or partial exercise of any right or remedy shall prevent any further or other exercise or the exercise of any other right or remedy. The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law.

 

33.                               Amendments and waivers 

 

33.1                        Required consents

 

(a)                                 Subject to Clause 33.2 (Exceptions) and Clause 33.3 (Extension of Commitments), any term of the Finance Documents may be amended or

 

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waived only with the consent of the Majority Lenders and each of the Obligors and any such amendment or waiver will be binding on all Parties.

 

(b)                                 The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause 33.

 

33.2                        Exceptions

 

(a)                                 Subject to Clause 33.3 (Extension of Commitments), an amendment or waiver that has the effect of changing or which relates to:

 

(i)                                the definition of “Majority Lenders” in Clause 1.1 (Definitions);

 

(ii)                             an extension to the date of payment of any amount under the Finance Documents;

 

(iii)                          a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable;

 

(iv)                         an increase in the amount of any Commitment or an extension of the period of availability for utilisation of any Commitment or any requirement that a cancellation of Commitments reduces the Commitments of the Lenders rateably;

 

(v)                            the nature or scope or release of the guarantee and indemnity granted under Clause 17 (Guarantee and Indemnity);

 

(vi)                         any provision which expressly requires the consent of all the Lenders;

 

(vii)                      Clause 2.2 (Finance Parties’ rights and obligations); or

 

(viii)                   Clause 22 (Changes to the Lenders) or this Clause 33.2, 

 

shall not be made without the prior consent of all the Lenders.

 

(b)                                 An amendment or waiver which relates to the rights or obligations of any Administrative Party may not be effected without the consent of such Administrative Party.

 

33.3                        Extension of Commitments

 

(a)                                 Subject to Clause 33.4 (Requirement to offer extension of Commitments to all Lenders), the Company and any Lender may agree that:

 

(i)                                the Availability Period and Final Repayment Date applicable to such participation be extended; and

 

(ii)                             if any extension as referred to in paragraph (a) applies, the Margin applicable to the relevant participation should be adjusted.

 

(b)                                 Following any agreement as referred to in paragraph (a) above, the Company and the relevant Lender(s) may notify the Agent, giving details of the applicable agreement (the “Extension Agreement”).

 

(c)                                  Promptly following notification in accordance with paragraph (b) above, the Agent shall, at the cost of the Company, agree with the Company on behalf of the Finance Parties such amendments to the Finance Documents as may be necessary or appropriate to give effect to the Extension Agreement (which

 

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may for the avoidance of doubt include designating the affected participations as loans under a new facility).

 

(d)                                 The Agent shall promptly provide to each of the Finance Parties and the Guarantor copies of any amendment agreement entered into pursuant to paragraph (c) above (any such amendment agreement or any Finance Document amended to give effect to the Extension Agreement, an “Extension Amendment Agreement”).

 

(e)                                  Upon the effectiveness of any Extension Amendment Agreement, the Guarantor:

 

(i)                                     agrees and acknowledges that, save as amended by that Extension Amendment Agreement, each Finance Document to which it is a party shall continue in full force and effect; and

 

(ii)                                  agrees that the guarantee and indemnity contained in Clause 17 (Guarantee and Indemnity) shall continue in full force and effect and extend to the liabilities and obligations of each Obligor under such Extension Amendment Agreement (each as amended, restated, supplemented, varied or extended from time to time).

 

33.4                        Requirement to offer extension of Commitments to all Lenders

 

(a)                                 The Agent will only be authorised to enter into an Extension Amendment Agreement under paragraph (c) of Clause 33.3 (Extension of Commitments) if prior to entering into such amendment agreement it is satisfied (acting reasonably) that:

 

(i)                                     each Lender shall have been offered the opportunity to participate in such extension in an amount up to that Lender’s Pro Rata Share; and

 

(ii)                                  each Lender shall have been given a period of at least 10 Business Days following receipt of the proposed terms of the extension referred to in paragraph (a) of Clause 33.3 (Extension of Commitments), to determine (A) whether or not to participate; and (B) if it wishes to participate, the amount of its Commitment (up to its Pro Rata Share) that it is willing to extend on the proposed terms.

 

(b)                                 For the purposes of paragraph (a) above, “Pro Rata Share” means in relation to a Lender whose Commitments are being extended, the percentage of the aggregate amount of the relevant Extended Loans that that Lender’s Commitment bears to the Total Commitments.

 

(c)                                  For the avoidance of doubt, prior to the date on which the Company and the relevant Lender(s) execute an Extension Amendment Agreement, the Company shall have no obligation to proceed with any proposed extension.

 

33.5                        Disenfranchisement of Defaulting Lenders

 

(a)                                 For so long as a Defaulting Lender has any Available Commitment, in ascertaining:

 

(i)                                     the Majority Lenders; or

 

(ii)                                  whether:

 

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(A)                               any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments; or

 

(B)                               the agreement of any specified group of Lenders,

 

has been obtained to approve any request for a consent, waiver, amendment or other vote under the Finance Documents,

 

that Defaulting Lender’s Commitments will be reduced by the amount of its Available Commitments and, to the extent that that reduction results in that Defaulting Lender’s Total Commitments being zero, that Defaulting Lender shall be deemed not to be a Lender for the purposes of paragraphs (i) and (ii) above.

 

(b)                                 For the purposes of this Clause 33.5, the Agent may assume that the following Lenders are Defaulting Lenders:

 

(i)                                     any Lender which has notified the Agent that it has become a Defaulting Lender;

 

(ii)                                  any Lender in relation to which it is aware that any of the events or circumstances referred to in paragraphs (a), (b) or (c) of the definition of “Defaulting Lender” has occurred,

 

unless it has received notice to the contrary from the Lender concerned (together with any supporting evidence reasonably requested by the Agent) or the Agent is otherwise aware that the Lender has ceased to be a Defaulting Lender.

 

33.6                        Excluded Commitments 

 

If:

 

(a)                                 any Defaulting Lender fails to respond to a request for a consent, waiver, amendment of or in relation to any term of any Finance Document or any other vote of Lenders under the terms of this Agreement within fifteen Business Days of that request being notified to the Lenders (or, if later, within 15 Business Days of the date on which the Lenders have received such information as the Agent determines is reasonably required to allow the Lenders to respond to the relevant request in an informed manner); or

 

(b)                                 any Lender which is not a Defaulting Lender fails to respond to such a request for such a vote within fifteen Business Days of that request being made,

 

(unless, in either case, the Company and the Agent agree to a longer time period in relation to any request):

 

(i)                                     its Commitment(s) shall not be included for the purpose of calculating the Total Commitments when ascertaining whether any relevant percentage (including, for the avoidance of doubt, unanimity) of Total Commitments has been obtained to approve that request; and

 

(ii)                                  its status as a Lender shall be disregarded for the purpose of ascertaining whether the agreement of any specified group of Lenders has been obtained to approve that request.

 

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33.7                        Replacement of Lender

 

(a)                                 If:

 

(i)                                     any Lender becomes a Non-Consenting Lender (as defined in paragraph (d) below); or

 

(ii)                                  an Obligor becomes obliged to repay any amount in accordance with Clause 7.1 (Illegality) or to pay additional amounts pursuant to Clause 13 (Increased Costs), Clause 12.2 (Tax gross-up) or Clause 12.3 (Tax indemnity) to any Lender; or

 

(iii)                               any Lender becomes a Defaulting Lender or ceases to have a rating for its long-term unsecured and non credit-enhanced debt obligations of A- or higher by Standard & Poor’s Rating Services or Fitch Ratings Ltd or A3 or higher by Moody’s Investor Services Limited or a comparable rating from an internationally recognised credit rating agency,

 

then the Company may, on fifteen (15) Business Days’ prior written notice to the Agent and such Lender, replace such Lender by requiring such Lender to (and, to the extent permitted by law, such Lender shall) transfer pursuant to Clause 22 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement to a Lender or other bank, financial institution or other entity (a “Replacement Lender”) selected by the Company, which confirms its willingness to assume and does assume all the obligations of the transferring Lender in accordance with Clause 22 (Changes to the Lenders) for a purchase price in cash payable at the time of transfer in an amount equal to the outstanding principal amount of such Lender’s participation in the outstanding Utilisations and all accrued interest, Break Costs and other amounts payable in relation thereto under the Finance Documents.

 

(b)                                 The replacement of a Lender pursuant to this Clause 33.7 shall be subject to the following conditions:

 

(i)                                     the Company shall have no right to replace the Agent;

 

(ii)                                  neither the Agent nor the Lender shall have any obligation to the Company to find a Replacement Lender;

 

(iii)                               in the event of a replacement of a Non-Consenting Lender such replacement must take place no later than 30 Business Days after the date on which that Lender is deemed a Non-Consenting Lender;

 

(iv)                              in no event shall a Lender replaced under this Clause 33.7 be required to pay or surrender to such Replacement Lender any of the fees received by such Lender pursuant to the Finance Documents; and

 

(v)                                 the Lender shall only be obliged to transfer its rights and obligations pursuant to paragraph (a) above once it is satisfied that it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to that transfer.

 

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(c)                                  A Lender shall perform the checks described in paragraph (b)(v) above as soon as reasonably practicable following delivery of a notice referred to in paragraph (a) above and shall notify the Agent and the Company when it is satisfied that it has complied with those checks.

 

(d)                                 In the event that:

 

(i)                                     the Company or the Agent (at the request of the Company) has requested the Lenders to give a consent in relation to, or to agree to a waiver or amendment of, any provisions of the Finance Documents;

 

(ii)                                  the consent, waiver or amendment in question requires the approval of all the Lenders; and

 

(iii)                               Lenders whose Commitments aggregate more than eighty per cent. (80%) of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than eighty per cent. (80%) of the Total Commitments prior to that reduction) have consented or agreed to such waiver or amendment,

 

then any Lender who does not and continues not to consent or agree to such waiver or amendment shall be deemed a “Non-Consenting Lender”.

 

34.                               Counterparts

 

Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document.

 

35.                               Contractual Recognition of Bail-in

 

Notwithstanding any other term of any Finance Document or any other agreement, arrangement or understanding between the Parties, each Party acknowledges and accepts that any liability of any Party to any other Party under or in connection with the Finance Documents may be subject to Bail-In Action by the relevant Resolution Authority and acknowledges and accepts to be bound by the effect of:

 

(a)                                 any Bail-In Action in relation to any such liability, including:

 

(i)                                     a reduction, in full or in part, in the principal amount, or outstanding amount due (including any accrued but unpaid interest) in respect of any such liability;

 

(ii)                                  a conversion of all, or part of, any such liability into shares or other instruments of ownership that may be issued to, or conferred on, it; and

 

(iii)                               a cancellation of any such liability; and

 

(b)                                 a variation of any term of any Finance Document to the extent necessary to give effect to any Bail-In Action in relation to any such liability.

 

85

 

36.                               Governing Law

 

This Agreement is governed by the laws of Hong Kong.

 

37.                               Enforcement

 

37.1                        Jurisdiction of Hong Kong courts

 

(a)                            The courts of Hong Kong have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including any dispute regarding the existence, validity or termination of this Agreement) (a “Dispute”).

 

(b)                            The Parties agree that the courts of Hong Kong are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary.

 

(c)                             This Clause 37.1 is for the benefit of the Finance Parties only. As a result, no Finance Party shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions.

 

37.2                        Service of process

 

(a)                            Without prejudice to any other mode of service allowed under any relevant law, each Obligor (other than an Obligor incorporated in Hong Kong):

 

(i)                                     irrevocably appoints the Company as its agent for service of process in relation to any proceedings before the Hong Kong courts in connection with any Finance Document; and

 

(ii)                                  agrees that failure by a process agent to notify the relevant Obligor of the process will not invalidate the proceedings concerned.

 

(b)                            Each Obligor expressly agrees and consent to the provision of this Clause 37.2.

 

37.3                        Waiver of immunities

 

Each Obligor irrevocably waives, to the extent permitted by applicable law, with respect to itself and its revenues and assets (irrespective of their use or intended use), all immunity on the grounds of sovereignty or other similar grounds from:

 

(a)                            suit;

 

(b)                            jurisdiction of any court;

 

(c)                             relief by way of injunction or order for specific performance or recovery of property;

 

(d)                            attachment of its assets (whether before or after judgment); and

 

(e)                             execution or enforcement of any judgment to which it or its revenues or assets might otherwise be entitled in any proceedings in the courts of any jurisdiction (and irrevocably agrees, to the extent permitted by applicable law, that it will not claim any immunity in any such proceedings).

 

86

 

This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

87

 

Schedule 1

The Original Lenders

 

88

 

Schedule 2

Conditions Precedent

 

89

 

Schedule 3 
 Requests

 

90

 

Schedule 4

Form of Transfer Certificate

 

91

 

Schedule 5

Form of Confidentiality Undertaking

 

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Schedule 6

Account Details

 

93

 

 

SIGNATORIES

 

	
The   Company
    
	
 
    
	
HONG KONG CINGLEOT INVESTMENT   MANAGEMENT LIMITED
    
	
 
    
	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Linjiang Lin
    	
 
    	
/s/   Zheng Lin
    
	
Name:
    	
Linjiang   Lin
    	
Zheng   Lin
    
				

 

	
Address:
    	
 
    	
26/F, Tower One, Times Square
    
	
 
    	
 
    	
1 Matheson Street
    
	
 
    	
 
    	
Causeway Bay
    
	
 
    	
 
    	
Hong Kong
    
	
Fax:
    	
 
    	
 
    
	
Telephone:
    	
 
    	
 
    
	
Email:
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    

 

[Signature Page to Project KLW — AGH Facility Agreement]

 

 

	
The   Guarantor
    	
 
    
	
 
    	
 
    
	
ALIBABA   GROUP HOLDING LIMITED
    	
 
    
	
 
    	
 
    
	
/s/   Timothy Alexander Steinert
    	
 
    
	
By:
    	
Timothy   Alexander Steinert
    	
 
    
	
Title:
    	
Authorized   Signatory
    	
 
    

 

	
Address:
    	
 
    	
c/o Alibaba Group Services Limited
    
	
 
    	
 
    	
26/F, Tower One, Times Square
    
	
 
    	
 
    	
1 Matheson Street
    
	
 
    	
 
    	
Causeway Bay
    
	
 
    	
 
    	
Hong Kong
    
	
Fax:
    	
 
    	
 
    
	
Telephone:
    	
 
    	
 
    
	
Email:
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    

 

[Signature Page to Project KLW — AGH Facility Agreement]

 

 

	
Mandated   Lead Arranger
    
	
 
    
	
BANK   OF CHINA (HONG KONG) LIMITED
    
	
 
    
	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Fung Yuen Pik, Fiona
    	
 
    	
/s/   Chin Lal Noen
    
	
Name:
    	
Fung   Yuen Pik, Fiona
    	
Chin   Lal Noen
    
				

 

	
Address:
    	
 
    	
34/F, Bank of China Tower, 1 Garden Road Central, Hong Kong
    
	
Fax:
    	
 
    	
 
    
	
Telephone:
    	
 
    	
 
    
	
Email:
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    
	
c.c.:
    	
 
    	
 
    

 

[Signature Page to Project KLW — AGH Facility Agreement]

 

 

	
Mandated   Lead Arranger
    
	
 
    
	
CITIGROUP   GLOBAL MARKETS ASIA LIMITED
    
	
 
    
	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Asghar Ali
    	
 
    	
 
    
	
Name:
    	
Asghar   Ali
    	
 
    
	
 
    	
Managing   Director
    	
 
    
				

 

	
Address:
    	
 
    	
47/F, Champion Tower, Three Garden Road, Central,   Hong Kong
    
	
Fax:
    	
 
    	
 
    
	
Telephone:
    	
 
    	
 
    
	
Email:
    	
 
    	
 
    

 

[Signature Page to Project KLW — AGH Facility Agreement]

 

 

	
Mandated   Lead Arranger
    
	
 
    
	
DBS   BANK LTD.
    
	
 
    
	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Stockor Ng
    	
 
    	
 
    
	
Name:
    	
STOCKOR   NG
    	
 
    
	
 
    	
EXECUTIVE   DIRECTOR, TEAM HEAD
    	
 
    
	
 
    	
NORTH   ASIA REGION
    	
 
    
				

 

	
Address:
    	
 
    	
18th Floor, The   Center, 99 Queen’s Road Central, Central, Hong Kong
    
	
Fax:
    	
 
    	
 
    
	
Telephone:
    	
 
    	
 
    
	
Email:
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    

 

[Signature Page to Project KLW — AGH Facility  Agreement]

 

 

Mandated Lead Arranger

 

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

 

	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Matthew Hung
    	
 
    	
 
    
	
Name:
    	
Matthew Hung
    	
 
    
	
 
    	
Managing Director, Global Banking, China
    	
 
    
				

 

	
Address:
    	
 
    	
Level 16, 1 Queen’s Road Central, Hong Kong
    
	
Fax:
    	
 
    	
 
    
	
Telephone:
    	
 
    	
 
    
	
Email:
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    

 

[Signature Page to Project KLW — AGH Facility Agreement]

 

 

Mandated Lead Arranger 

 

MIZUHO BANK, LTD.

 

	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Monita Chang
    	
 
    	
 
    
	
Name:
    	
Monita   Chang
    	
 
    
	
 
    	
Senior Director
    	
 
    
				

 

	
Address:
    	
 
    	
12/F, K11 Atelier, 18 Salisbury Road, Tsim Sha Tsui,   Kowloon, Hong Kong
    
	
Fax:
    	
 
    	
 
    
	
Telephone:
    	
 
    	
 
    
	
Email:
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    

 

[Signature Page to Project KLW — AGH Facility Agreement]

 

 

Original Lender

 

MIZUHO BANK, LTD., HONG KONG BRANCH

 

	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Davis Chai
    	
 
    	
 
    
	
Name:
    	
Davis   Chai
    	
 
    
	
 
    	
Managing   Director
    	
 
    
				

 

	
For Credit   Matters:
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
12th Floor, K11 Atelier, 18 Salisbury Road, Tsim Sha   Tsui, Kowloon, Hong Kong
    
	
Fax:
    	
 
    	
 
    
	
Telephone:
    	
 
    	
 
    
	
Email:
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
For Operational   Matters:
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
12th Floor, K11 Atelier, 18 Salisbury Road, Tsim Sha   Tsui, Kowloon, Hong Kong
    
	
Fax:
    	
 
    	
 
    
	
Telephone:
    	
 
    	
 
    
	
Email:
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    

 

[Signature Page to Project KLW — AGH Facility Agreement]

 

 

Original Lender

 

BANK OF CHINA (HONG KONG) LIMITED

 

	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Fung Yuen Pik, Fiona
    	
 
    	
/s/Chin   Lal Noan
    
	
Name:
    	
Fung   Yuen Pik, Fiona
    	
Chin   Lal Noan
    
				

 

	
Address:
    	
 
    	
17/F, Bank of China Centre, Olympian City, 11 Hoi   Fai Road, West Kowloon, Hong Kong
    
	
Fax:
    	
 
    	
 
    
	
Telephone:
    	
 
    	
 
    
	
Email:
    	
 
    	
 
    
	
Attention:
    	
 
    	
 
    
	
c.c.:
    	
 
    	
 
    

 

[Signature Page to Project KLW — AGH Facility Agreement]

 

 

	
Original   Lender
    
	
 
    
	
DBS   BANK LTD., HONG KONG BRANCH
    
	
 
    
	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ XU Mengmeng   Greta
    	
 
    	
 
    
	
Name:
    	
XU Mengmeng Greta
    	
 
    
	
 
    	
(AX003)
    	
 
    
				

 

	
Address:
    	
18th Floor, The Center, 99 Queen’s Road   Central, Central, Hong Kong
    
	
Fax:
    	
 
    
	
Telephone:
    	
 
    
	
Email:
    	
 
    
	
Attention:
    	
 
    

 

[Signature Page to Project KLW — AGH Facility Agreement]

 

 

Original Lender

 

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

 

	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Matthew   Hung
    	
 
    	
 
    
	
Name:
    	
Matthew Hung
    	
 
    
	
 
    	
Managing Director, Global Banking,   China
    	
 
    
				

 

For Credit Matters:

 

	
Address:
    	
Level   16, 1 Queen’s Road Central, Hong Kong
    
	
Fax:
    	
 
    
	
Telephone:
    	
 
    
	
Email:
    	
 
    
	
Attention:
    	
 
    
	
 
    	
 
    
	
For   Operational Matters:
    
	
 
    	
 
    
	
Address:
    	
8/F   Tower 1 HSBC Centre, 1 Sham Mong Road, Tai Kok Tsui, Kowloon, Hong Kong
    
	
Fax:
    	
 
    
	
Telephone:
    	
 
    
	
Email:
    	
 
    
	
Attention:
    	
 
    

 

[Signature Page to Project KLW — AGH Facility Agreement]

 

 

Original Lender

 

CITIBANK N.A., HONG KONG BRANCH

 

	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Angela Fuh
    	
 
    	
 
    
	
Name:
    	
Angela   Fuh
    	
 
    
	
 
    	
Director
    	
 
    
				

 

	
Address:
    	
50/F,   Champion Tower, Three Garden Road, Central, Hong Kong
    
	
Fax:
    	
 
    
	
Telephone:
    	
 
    
	
Email:
    	
 
    
	
Attention:
    	
 
    

 

[Signature Page to Project KLW — AGH Facility Agreement]

 

 

The Agent

 

CITICORP INTERNATIONAL LIMITED

 

	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Terence Yeung
    	
 
    	
 
    
	
Name:
    	
Terence   Yeung
    	
 
    
	
 
    	
Vice   President
    	
 
    
				

 

	
Address:
    	
9th   Floor, Citi Tower, One Bay East, 83 Hoi Bun Road, Kwun Tong, Kowloon, Hong   Kong
    
	
Fax:
    	
 
    
	
Telephone:
    	
 
    
	
Email:
    	
 
    
	
Attention:
    	
 
    
	
 
    	
 
    
	
With   copy to:
    	
 
    
	
Address:
    	
Citicorp   International Limited
    
	
 
    	
39/F   Champion Tower, 3 Garden Road, Central, Hong Kong
    
	
Fax:
    	
 
    
	
Email:
    	
 
    
	
Attention:
    	
 
    

 

[Signature Page to Project KLW — AGH Facility Agreement]Exhibit 4.41

 

EXECUTION VERSION

 

DECEMBER 3, 2018

 

LOCAL SERVICES HOLDING LIMITED

 

KOUBEI HOLDING LIMITED

 

RAJAX HOLDING

 

THE INVESTORS

 

 

SHARE SUBSCRIPTION AGREEMENT

relating to the subscription of Series A Preferred

Shares of Local Services Holding Limited

 

 

 

 

CONTENTS

 

	
CLAUSE
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
DEFINITIONS
    	
 
    	
1
    
	
2.
    	
AGREEMENT TO SUBSCRIBE   FOR AND ISSUE THE NON-TRANCHING INVESTOR SUBSCRIPTION SHARES
    	
 
    	
15
    
	
3.
    	
AGREEMENT TO SUBSCRIBE   FOR AND ISSUE THE TRANCHING INVESTOR SUBSCRIPTION SHARES
    	
 
    	
18
    
	
4.
    	
REPRESENTATIONS AND   WARRANTIES OF THE COMPANY
    	
 
    	
21
    
	
5.
    	
REPRESENTATIONS AND   WARRANTIES OF EACH INVESTOR
    	
 
    	
33
    
	
6.
    	
COVENANTS AND   AGREEMENTS
    	
 
    	
37
    
	
7.
    	
CONDITIONS
    	
 
    	
38
    
	
8.
    	
INDEMNIFICATION
    	
 
    	
40
    
	
9.
    	
NO USE OF NAME
    	
 
    	
44
    
	
10.
    	
CONFIDENTIALITY AND   NON-DISCLOSURE
    	
 
    	
46
    
	
11.
    	
MISCELLANEOUS
    	
 
    	
48
    
	
SCHEDULE   1 INVESTORS AND SUBSCRIPTION SHARES
    	
 
    	
65
    
	
SCHEDULE   2 COMPANY BANK ACCOUNT
    	
 
    	
66
    
	
SCHEDULE   3 DISCLOSURE SCHEDULE
    	
 
    	
67
    
	
SCHEDULE   4 CAPITALIZATION IMMEDIATELY PRIOR TO FIRST CLOSING WITH RESPECT TO THE   INVESTORS
    	
 
    	
68
    
	
SCHEDULE   5 OTHER COVENANTS
    	
 
    	
69
    
	
SCHEDULE   6 ADDRESS FOR NOTICES
    	
 
    	
70
    
	
SCHEDULE   7 INVESTOR AFFILIATES
    	
 
    	
71
    
	
EXHIBIT 1   FORM OF SHAREHOLDERS AGREEMENT
    	
 
    	
72
    
	
EXHIBIT 2   FORM OF ARTICLES
    	
 
    	
73
    
	
EXHIBIT 3   FORM OF CAYMAN LEGAL OPINION
    	
 
    	
74
    
	
EXHIBIT 4   FORM OF PRC LEGAL OPINION
    	
 
    	
75
    
	
EXHIBIT 5   FORM OF INVESTOR DISCLOSURE LETTER
    	
 
    	
76
    
	
EXHIBIT 6   FORM OF REORGANIZATION AGREEMENT
    	
 
    	
77
    

 

i

 

THIS SHARE SUBSCRIPTION AGREEMENT (this “Agreement”) is made and entered into as of December 3, 2018, by and between:

 

(1)dLocal Services Holding Limited, an exempted company incorporated with limited liability under the laws of the Cayman Islands (the “Company”);

 

(2)                                 Koubei Holding Limited, an exempted company incorporated with limited liability under the laws of the Cayman Islands (“Koubei”) (only for the purpose of Clause 6.3 (Conduct of Business Prior to the Closing), Clause 6.5 (Reorganization), Clause 6.6 (Other Covenants), Clause 10 (Confidentiality and Non-Disclosure) and Clause 11 (Miscellaneous) (collectively, the “Relevant Provisions”));

 

(3)                                 Rajax Holding, an exempted company incorporated with limited liability under the laws of the Cayman Islands (“Rajax”) (only for the purpose of the Relevant Provisions); and

 

(4)                                 each of the Persons listed under the heading “Investor Name” in column 1 of Part A and Part B of Schedule 1 (Investors and Subscription Shares) (the “Investors”, and each an “Investor”),

 

(each a “Party” and together the “Parties”; provided that, each of Koubei and Rajax shall be a Party only for the purpose of the Relevant Provisions).

 

RECITALS

 

(A)                               The Company intends to issue and allot to each Investor, and each Investor intends to subscribe for certain Series A preferred shares with a par value of US$0.00001 per share in the share capital of the Company (the “Series A Preferred Shares”) on the terms, and subject to the conditions, of this Agreement.

 

(B)                               The Company, on the one hand, and each Investor, on the other hand, intend to make certain representations, warranties, covenants and agreements with each other in connection with the transactions contemplated in this Agreement.

 

(C)                               Concurrently with the execution and delivery of this Agreement, each Investor may elect to deliver an investor disclosure letter, in substantially the form attached as Exhibit 5 (Form of Investor Disclosure Letter) and dated as of the date of this Agreement (the “Investor Disclosure Letter”), to the Company.

 

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises set out in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and each Investor agree as follows.

 

Words and expressions used in this Agreement shall be interpreted in accordance with Clause 1 (Definitions).

 

1.                                      DEFINITIONS

 

1.1                               Definitions

 

For the purposes of this Agreement, the following terms shall have the meanings specified in this Clause 1.1:

 

1

 

“Affiliate” means, with respect to any specified Person, any other Person who directly or indirectly Controls, is Controlled by, or is under common Control with such specified Person. For the avoidance of doubt and notwithstanding the foregoing, for the purposes of this Agreement:

 

(a)                                 none of AGH, ANT or any of their respective Subsidiaries shall be deemed an Affiliate of SoftBank Group Corp., Yahoo! Inc. or any of their respective Subsidiaries, or vice versa;

 

(b)                                 none of ANT or its Subsidiaries shall be deemed an Affiliate of AGH or any of its Subsidiaries, or vice versa;

 

(c)                                  none of the Company or its Subsidiaries shall be deemed an Affiliate of AGH, ANT or any of their respective Subsidiaries, or vice versa; and

 

(d)                                 with respect to any Investor (other than Ali KB), Affiliate shall have the meaning applicable to such Investor as set out in Schedule 7 (Investor Affiliates);

 

“AGH” means Alibaba Group Holding Limited, an exempted company incorporated with limited liability under the Laws of the Cayman Islands;

 

“Agreement” has the meaning set forth in the Preamble;

 

“Ali KB” means Ali KB Investment Holding Limited, an exempted company incorporated with limited liability under the Laws of the Cayman Islands;

 

“Ali KB Convertible Loan” means the convertible shareholder loan made available to the Company by Ali KB pursuant to the Reorganization Agreement;

 

“ANT” means 浙江蚂蚁小微金融服务集团股份有限公司 (Ant Small And Micro Financial Services Group Co., Ltd.), a joint stock company incorporated under the Laws of the PRC;

 

“Approvals” has the meaning set forth in Clause 4.5(d) (No Conflicts);

 

“Articles” means the First Amended and Restated Memorandum and Articles of Association of the Company, in substantially the form as set out in Exhibit 2 (Form of Articles), to be adopted by the Company as part of the Reorganization;

 

“Beijing Choice Century” means Beijing Choice Century Science Technology Limited by Shares (北京辰森世纪科技股份有限公司);

 

“Beijing Choice Century ESOP” means the 2017 Restrictive Partnership Equity Incentive Plan (2017 限制性合伙权益激励计划) which was adopted on June 28, 2017 by Beijing Choice Century, whereby certain employees are granted interests in Beijing Choice Century through two limited partnerships, Beijing Choice Century Information Technology Partnership (Limited Partnership) (北京辰森世纪信息技术合伙企业 ( 有限合伙 )) and Beijing Choice Century Network Science and Technology Partnership (Limited Partnership) (北京辰森世纪网络科技合伙企业( 有限合伙 )), as may be amended from time to time;

 

2

 

“Beneficial Owner” and “Beneficially Own” shall each have the meaning set forth in the Shareholders Agreement and the term “Beneficially Owned” shall have a correlative meaning;

 

“Benefit Plan” means, with respect to any Person, any ESOP, employee loan and employee profit-sharing plan, agreement, policy, commitment or other similar program or arrangement;

 

“Board” means the board of directors of the Company;

 

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banking institutions in Hong Kong, New York, Singapore, the Cayman Islands or the PRC are authorized or required by Law or executive order to remain closed, or on which a tropical cyclone warning no. 8 or above or a black rainstorm warning signal is hoisted in Hong Kong at any time between 9:00 a.m. and 5:00 p.m. Hong Kong time;

 

“Charter Documents” means, with respect to a Person, the articles of incorporation, certificate of incorporation, formation or registration (including, if applicable, certificates of change of name), memorandum of association, articles of association, bylaws, articles of organization, limited liability company agreement, trust deed, trust instrument, operating agreement, joint venture agreement, business license, or similar or other constitutive, governing, or charter documents, or equivalent documents, of such Person as may be amended from time to time;

 

“Claim Notice” has the meaning set forth in Clause 8.5(a) (Procedure);

 

“Closing” means:

 

(a)                                 with respect to each of the Non-Tranching Investors, the issuance and subscription of the Non-Tranching Investor Subscription Shares of such Non-Tranching Investor in accordance with Clause 2.2(a) (Closing); and

 

(b)                                 with respect to each of the Tranching Investors, the issuance and subscription of the Tranching Investor Subscription Shares of such Tranching Investor in accordance with Clause 3.2(a) (Closing);

 

“Closing Date” means the date on which the Closing with respect to an Investor occurs;

 

“Company” has the meaning set forth in the Preamble;

 

“Company Fundamental Warranties” means, collectively, the representations and warranties of the Company as set forth in Clause 4.2 (Organization, Standing and Qualification), Clause 4.3 (Capitalization), Clause 4.4 (Due Authorization and Enforceability) and Clause 4.6 (Valid Issuance of Shares) and given by the Company pursuant to Clause 4.1;

 

“Company Warranties” means, collectively, the representations and warranties of the Company set forth in Clause 4.2 (Organization, Standing and Qualification) to Clause 4.23 (Related Party Transactions) and given by the Company pursuant to Clause 4.1;

 

“Competing Investment” has the meaning set forth in the Shareholders Agreement;

 

3

 

“Confidential Information” has the meaning set forth in Clause 10.1(a) (Disclosure of Terms);

 

“Control” means as used with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise; the terms “Controlled by” and “under common Control with” shall have correlative meanings;

 

“Disclosing Party” has the meaning set forth in Clause 10.3(a) (Permitted Disclosures);

 

“Disclosure Schedule” means the disclosure schedule set out in Schedule 3 (Disclosure Schedule);

 

“Enhanced Repeated Warranties” means, collectively, the Company Fundamental Warranties and the representations and warranties set out in Clause 4.5 (No Conflicts), Clause 4.7 (Subsidiaries), Clause 4.8 (Financial Statements) and Clause 4.10 (Solvency) and given by the Company pursuant to Clause 4.1(a)(ii);

 

“Equity Security” or “Equity Securities” means ordinary shares, preferred shares and any other equity securities of any Group Company, including any right of conversion into, or exchange for, any of the foregoing;

 

“ESOP” means any equity-based compensation or incentive, purchase or participation plans;

 

“Fairly Disclosed” means disclosed in sufficient detail to enable an Investor (with the advice of its professional advisors) to identify and reasonably assess the nature and scope of the matter disclosed;

 

“Financial Statements” means, collectively, the Rajax Financial Statements and the Koubei Financial Statements;

 

“First Tranche Subscription Price” means:

 

(a)                                 in relation to SoftBank, the aggregate amount of ***†; and

 

(b)                                 in relation to ***†, the aggregate amount of ***†;

 

“Fourth Tranche Funding” has the meaning set forth in Clause 3.6(a)(iii) (Tranching Investor Funding);

 

“Fourth Tranche Funding Date” means, in relation to a Tranching Investor:

 

(a)                                 the 360th day following, but excluding, the Closing Date with respect to such Tranching Investor (or, if such day is not a Business Day, the next following Business Day); or

 

(b)                                 any earlier closing date requested by the Company and consented to in writing by such Tranching Investor (such consent not to be unreasonably withheld or delayed), provided that not less than 45 days’ prior written notice of such earlier closing date shall have been given by the Company to such Tranching Investor unless such Tranching Investor waives the aforementioned notice requirement in writing;

 

†                           Confidential treatment requested.

 

4

 

“Fourth Tranche Subscription Price” means:

 

(a)                                 in relation to SoftBank, the aggregate amount of ***†; and

 

(b)                                 in relation to ***†, the aggregate amount of ***†;

 

“Fourth Tranche Subscription Shares” means:

 

(a)                                 in relation to SoftBank, ***† Series A Preferred Shares; and

 

(b)                                 in relation to ***†, ***† Series A Preferred Shares;

 

“Fully Paid Tranching Investor Subscription Shares” means in relation to a Tranching Investor, the number of fully paid Series A Preferred Shares set out opposite the name of such Tranching Investor under the heading “Number of Fully Paid Tranching Investor Subscription Shares” in column 3 of Part B of Schedule 1 (Investors and Subscription Shares);

 

“Governmental Authority” means any nation or government or any province or state or any other political subdivision of such bodies, or any entity, authority or body exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including any government authority, agency, department, board, commission or instrumentality or any political subdivision of such bodies, any court, tribunal or arbitrator, and any self-regulatory organization or national or international stock exchange on which the securities of the applicable Party or its Affiliates are listed;

 

“Group Companies” means:

 

(a)                                 prior to completion of the Reorganization, the Company, Koubei, Rajax and all their respective Subsidiaries; and

 

(b)                                 following completion of the Reorganization, the Company and all of its Subsidiaries,

 

and each is in this Agreement referred to individually as a “Group Company”;

 

“Hangzhou Kou Kou” means 杭州口口相传网络技术有限公司 (Hangzhou Kou Kou Xiang Chuan Network Technology Co., Ltd.) a limited liability company established under the Laws of the PRC;

 

“HKIAC” has the meaning set forth in Clause 11.2 (Dispute Resolution);

 

“Hong Kong” means the Hong Kong Special Administrative Region of the People’s Republic of China;

 

“IFRS” means International Financial Reporting Standards promulgated by the International Accounting Standards Board;

 

“Indemnifiable Loss” means, with respect to any Person, any direct cost, damage, disbursement, expense, liability, loss or penalty (and in any event excluding any punitive, speculative or special loss or any indirect or consequential loss), together with all interest, penalties, legal, accounting and other professional fees and expenses reasonably incurred in the investigation, collection, prosecution and defense of any

 

†                           Confidential treatment requested.

 

5

 

related claims and amounts paid in settlement of such claims, that are actually imposed on or otherwise actually incurred or suffered by such Person;

 

“Indemnified Party” has the meaning set forth in Clause 8.1 (Indemnification by the Company) and “Indemnified Parties” shall be construed accordingly;

 

“Injunction” has the meaning set forth in Clause 7.1(a)(ii) (Conditions to Closing);

 

“Investor” and “Investors” have the meaning set forth in the Preamble;

 

“Investor Disclosure Letter” has the meaning set forth in Recital (C) of the Recitals;

 

“Investor Subscription Shares” means:

 

(a)                                 with respect to each of the Non-Tranching Investors, the Non-Tranching Investor Subscription Shares of such Non-Tranching Investor to be subscribed for by such Non-Tranching Investor in accordance with Clause 2.1(a) (Agreement to subscribe for and issue the Non-Tranching Investor Subscription Shares); and

 

(b)                                 with respect to each of the Tranching Investors, the Tranching Investor Subscription Shares of such Tranching Investor to be subscribed for by such Tranching Investor in accordance with Clause 3.1(a) (Agreement to subscribe and issue the Tranching Investor Subscription Shares);

 

“Investor Warranties” means, collectively, in respect of each Investor, the representations and warranties of such Investor as set forth in Clauses 5.3 (Organization, Standing and Qualification) to 5.15 (Financial Advisor Fees) (other than in relation to Ali KB, in which case Clause 5.13 (Absence of Interest in Competing Investment) and Clause 5.15 (Financial Advisor Fees) shall be excluded) and given by such Investor pursuant to Clause 5.1 and Clause 5.2 (as applicable);

 

“IT Assets” means computer systems, software firmware, middleware, servers, workstations, routers, hubs, switches, circuits, networks, data communications lines, and all other information technology equipment, and all associated documentation;

 

“Knowledge of the Company” means the actual knowledge that any of the Chief Executive Officer, Chief Financial Officer, Chief Operating Officer (if any) and the Head of Legal of each of Koubei and Rajax either has or would have obtained after making due inquiries, in each case of the relevant matter;

 

“Koubei” has the meaning set forth in the Preamble;

 

“Koubei Audited Financial Statements” has the meaning set forth in Clause 4.8(b) (Financial Statements);

 

“Koubei ESOP” means the Koubei Holding Limited 2016 Equity Incentive Plan adopted on June 28, 2016, as may be amended from time to time;

 

“Koubei Financial Statements” has the meaning set forth in Clause 4.8(b) (Financial Statements);

 

“Koubei Unaudited Financial Statements” has the meaning set forth in Clause 4.8(b) (Financial Statements);

 

6

 

“Koubei VIE Subsidiaries” means, collectively, Hangzhou You Kou Jie Bei Information Technology Co., Ltd. (杭州有口皆碑信息技术有限公司) and Hangzhou Kou Kou and their respective Subsidiaries (if any);

 

“Law” means any federal, state, territorial, foreign or local law, common law, statute, ordinance, rule, regulation, code, measure, notice, circular, opinion or order of any Governmental Authority, including any rules promulgated by a stock exchange or regulatory body;

 

“Lien” means any encumbrance, right, interest or restriction, including any mortgage, judgment lien, materialman’s lien, mechanic’s lien, other lien (statutory or otherwise), charge, security interest, pledge, hypothecation, encroachment, easement, title defect, title retention agreement, voting trust agreement, right of pre-emption, right of first refusal, claim, option, limitation, forfeiture, penalty, equity, adverse interest or other third party right or security interest of any kind or an agreement, arrangement or obligation to create any of the foregoing;

 

“Long Stop Date” means, with respect to any Investor, the date that is one hundred and eighty (180) days following the date of this Agreement or such other date as the Company or such Investor may mutually agree in writing;

 

“Majority Investors” means any one or more Investors who individually or collectively are subscribing for a majority of the Series A Preferred Shares being subscribed for by all Investors under this Agreement (excluding, for the purposes of calculating such majority, Ali KB);

 

“Material Adverse Effect” means any change, effect, event, or occurrence that has or would reasonably be expected to have, individually or in the aggregate, a material adverse effect on (i) the business, financial condition or results of operations of the Group Companies, taken as a whole or (ii) the ability of each of the Company, Rajax and Koubei to perform its obligations that are required to be completed by it prior to the Closing with respect to the relevant Investor under any of the Transaction Documents; provided, however, that in no event shall any of the following exceptions, alone or in combination with the other enumerated exceptions below, be deemed to constitute, nor shall be taken into account in determining whether there has been or will be, such a material adverse effect:

 

(a)                                 any action required to be taken under the Transaction Documents or any change or effect resulting from any announcement of the transactions required or expressly permitted by, this Agreement or any other Transaction Document;

 

(b)                                 any actions taken (or omitted to be taken) at the written request of or with the written consent of the applicable Investor pursuant to this Agreement or under any other Transaction Document;

 

(c)                                  any change or effect arising out of changes or developments generally affecting any of the industries in which the Group Companies operate or generally affecting the economic, financial market or political conditions in one or more jurisdictions in which the Group Companies operate or generate revenues (other than to the extent such changes adversely affect the Group Companies, taken as a whole, in a materially disproportionate manner relative

 

7

 

to other similarly situated participants in the industries or markets in which they operate);

 

(d)                                 any changes or proposed changes in applicable Laws of general application or the interpretation or enforcement of such Laws or in applicable accounting principles or the interpretation of such accounting principles;

 

(e)                                  any pandemic, earthquake, typhoon, other natural disasters, any outbreak or escalation of hostilities of war or any act of terrorism;

 

(f)                                   any changes in the general financial, credit, debt, capital or securities market conditions;

 

(g)                                  any telecommunication failures, power losses, computer attacks, security breaches, viruses or similar events; or

 

(h)                                 any failure to meet any internal projections or forecasts;

 

“Material Contract” means any written agreement, arrangement or contract that is material to, and has been entered into by, any Group Company, including any VIE Document; for the avoidance of doubt, other than the VIE Documents, “material” for the purposes of the foregoing shall mean any agreement, arrangement or contract that involves payment obligations by or to a Group Company in excess of US$10,000,000 per year, but, in any event, excluding any agreement, arrangement or contract that has been performed and satisfied or that has been terminated;

 

“Material Permit” has the meaning set forth in Clause 4.12(b) (Compliance with Laws; Consents and Permits);

 

“Material Proprietary Assets” has the meaning set forth in Clause 4.17(a) (Intellectual Property);

 

“Non-Disclosing Parties” has the meaning set forth in Clause 10.3(a) (Permitted Disclosures);

 

“Non-Tranching Investor” means each of the Persons listed under the heading “Investor Name” in column 1 of Part A of Schedule 1 (Investors and Subscription Shares);

 

“Non-Tranching Investor Deliverables” has the meaning set forth in Clause 2.3 (Non-Tranching Investor Closing Deliverables);

 

“Non-Tranching Investor Subscription Price” has the meaning set forth in Clause 2.1(a) (Agreement to subscribe for and issue the Non-Tranching Investor Subscription Shares);

 

“Non-Tranching Investor Subscription Shares” has the meaning set forth in Clause 2.1(a) (Agreement to subscribe for and issue the Non-Tranching Investor Subscription Shares);

 

“Non-Voting/Dividend Ordinary Shares” means ordinary shares with a par value of US$0.00001 per share in the share capital of the Company which are designated as non-voting and non-dividend receiving shares in the capital of the Company by the directors of the Company prior to the issue of such shares;

 

8

 

“Ordinary Shares” means the ordinary shares with a par value of US$0.00001 per share in the share capital of the Company (excluding, for avoidance of doubt, the Non-Voting/Dividend Ordinary Shares);

 

“Party” or “Parties” has the meaning set forth in the Preamble;

 

“Person” means any individual or any partnership, firm, corporation, limited liability company, association, trust, unincorporated organization or other entity;

 

“Planned Closing Date” means:

 

(a)                                 the twelfth (12th) Business Day following, but excluding, the Reorganization Completion Date; or

 

(b)                                 any such later date prior to the Long Stop Date as reasonably determined by the Company to let the Closings with respect to as many Investors as possible occur simultaneously, provided that the Company shall deliver a written notice to each Investor with respect to such later closing date no less than three (3) Business Days prior to the twelfth (12th) Business Day following, but excluding, the Reorganization Completion Date;

 

“PRC” means the People’s Republic of China, excluding, for the purposes of this Agreement, Hong Kong, the Macau Special Administrative Region of the People’s Republic of China and the Taiwan region;

 

“***†” means ***†, a company incorporated under the laws of the British Virgin Islands with registered address c/o Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands;

 

“Proceeding” means any action, suit, claim, hearing, proceeding, arbitration, mediation, audit, inquiry or investigation (whether civil, criminal, administrative or otherwise) by or before any Governmental Authority;

 

“Proprietary Assets” means all patents, patent applications, trademarks, service marks, trade names, domain names, copyrights, copyright registrations and applications, inventions, databases and all rights therein, all computer software including all source code, object code, firmware, development tools, files, records and data, including all media on which any of the foregoing is stored, formulas, designs, trade secrets, confidential and proprietary information, proprietary rights, know-how and processes of a company, and all documentation related to any of the foregoing;

 

“Rajax” has the meaning set forth in the Preamble;

 

“Rajax Audited Financial Statements” has the meaning set forth in Clause 4.8(a) (Financial Statements);

 

“Rajax Financial Statements” has the meaning set forth in Clause 4.8(a) (Financial Statements);

 

“Rajax Unaudited Financial Statements” has the meaning set forth in Clause 4.8(a) (Financial Statements);

 

“Rajax VIE Subsidiaries” means, collectively, Shanghai Rajax and its Subsidiaries;

 

†                           Confidential treatment requested.

 

9

 

“Registered Owned MPA” has the meaning set forth in Clause 4.17(b) (Intellectual Property);

 

“Relevant Provisions” has the meaning set forth in the Preamble;

 

“Reorganization” means the reorganization of, amongst others, the Company, Koubei and Rajax and certain of their respective direct and indirect shareholders undertaken in accordance with Clause 2 (Reorganization Steps) of the Reorganization Agreement;

 

“Reorganization Agreement” means the Reorganization Agreement relating to the Company dated on or around the date of this Agreement between, amongst others, the Company, Rajax and Koubei, in substantially the form as set out in Exhibit 6 (Form of Reorganization Agreement);

 

“Reorganization Completion Condition” has the meaning set forth in Clause 7.1 (Conditions to Closing);

 

“Reorganization Completion Date” has the meaning set forth in Clause 7.1 (Conditions to Closing);

 

“Reorganization Documents” has the meaning set forth in Clause 6.5 (Reorganization);

 

“Reorganization Steps” has the meaning set forth in the Reorganization Agreement;

 

“Repeated Company Fundamental Warranties” means, collectively, the representations and warranties of the Company as set forth in Clause 4.2 (Organization, Standing and Qualification) and Clause 4.4 (Due Authorization and Enforceability) and given by the Company pursuant to Clause 4.1(b);

 

“Repeated Investor Warranties” means, collectively, in respect of each Tranching Investor, the Investor Warranties excluding the representations and warranties of such Investor as set forth in Clause 5.13 (Absence of Interest in Competing Investment) and given by each Tranching Investor pursuant to Clause 5.2;

 

“Representatives” has the meaning set forth in Clause 8.7(a)(ii) (Other Limitations);

 

“SAIC” means the State Administration for Industry and Commerce of the PRC or, with respect to the issuance of any business license or filing or registration to be effected by or with the State Administration for Industry and Commerce of the PRC, any Governmental Authority which is similarly competent to issue such business license or accept such filing or registration under the Laws of the PRC;

 

“Second Tranche Funding” has the meaning set forth in Clause 3.6(a)(i) (Tranching Investor Funding);

 

“Second Tranche Funding Date” means, in relation to a Tranching Investor:

 

(a)                                 the 120th day following, but excluding, the Closing Date with respect to such Tranching Investor (or, if such day is not a Business Day, the next following Business Day); or

 

(b)                                 any earlier closing date requested by the Company and consented to in writing by such Tranching Investor (such consent not to be unreasonably withheld or delayed), provided that not less than 45 days’ prior written notice of such

 

10

 

earlier closing date shall have been given by the Company to such Tranching Investor unless such Tranching Investor waives the aforementioned notice requirement in writing;

 

“Second Tranche Subscription Price” means:

 

(a)                                 in relation to SoftBank, the aggregate amount of ***†; and

 

(b)                                 in relation to ***†, the aggregate amount of ***†;

 

“Second Tranche Subscription Shares” means:

 

(a)                                 in relation to SoftBank, ***† Series A Preferred Shares; and

 

(b)                                 in relation to ***†, ***† Series A Preferred Shares;

 

“Securities Act” means the United States Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations under such statutes;

 

“Series A Preferred Shares” has the meaning set forth in Recital (A) of the Recitals;

 

“Shanghai Rajax” means Shanghai Rajax Information Technology Co., Ltd. (上海拉扎斯信息科技有限公司), a limited liability company established under the Laws of the PRC;

 

“Shareholders Agreement” means the Shareholders Agreement in substantially the form as set out in Exhibit 1 (Form of Shareholders Agreement) and to be entered into by, amongst others, the Company, Ali KB and SoftBank;

 

“Shares” means any and all issued share capital of the Company, including Ordinary Shares, Non-Voting/Dividend Ordinary Shares and Series A Preferred Shares;

 

“Social Insurance” means any form of social insurance required under applicable Laws including without limitation, the PRC national and local contributions for pensions, medical insurance, unemployment insurance, work-related injury insurance, pregnancy benefits and housing accumulation funds;

 

“SoftBank” means SVF Ruby (Singapore) Pte. Ltd., a company incorporated under the Laws of Singapore with its registered address at 80 Robinson Road #02-00, Singapore (068898);

 

“Statement Date” has the meaning set forth in Clause 4.8(a) (Financial Statements);

 

“Subsidiary” means, with respect to any Person, each other Person in which the first Person:

 

(a)                                 holds, directly or indirectly, share capital or other equity interests representing more than fifty percent (50%) of the outstanding voting shares or other equity interests;

 

(b)                                 holds the rights to more than fifty percent (50%) of the economic interest of such other Person, including interests held through a VIE Structure or other contractual arrangements; or

 

†                           Confidential treatment requested.

 

11

 

(c)                                  has a relationship such that the financial statements of such other Person may be consolidated into the financial statements of the first Person under applicable accounting conventions.

 

Notwithstanding the foregoing and for the avoidance of doubt, for the purposes of this Agreement:

 

(x)                                 none of AGH, ANT or any of their respective Subsidiaries shall be deemed a Subsidiary of SoftBank Group Corp., Yahoo! Inc. or any of their respective Subsidiaries;

 

(y)                                 none of ANT or its Subsidiaries shall be deemed a Subsidiary of AGH or any of its Subsidiaries; and

 

(z)                                  none of the Company or its Subsidiaries shall be deemed a Subsidiary of AGH, ANT or any of their respective Subsidiaries;

 

“Survival Periods” has the meaning set forth in Clause 8.3(b) (Survival of representations and warranties);

 

“Tax” or “Taxes” means any national, provincial, municipal, or local taxes, charges, fees, levies, withholdings or other assessments, including, without limitation, all net income (including enterprise income tax and individual income withholding tax), turnover (including value-added tax, business tax, and consumption tax), resource (including urban and township land use tax), special purpose (including land value-added tax, urban maintenance and construction tax, and additional education tax), property (including urban real estate tax and land use taxes), documentation (including stamp duty and deed tax), filing, recording, social insurance (including pension, medical, unemployment, housing, and other social insurance withholding), tariffs (including import duty and import value-added tax), and estimated and provisional taxes of any kind whatsoever imposed by any Governmental Authority, and all interest, penalties (administrative, civil or criminal), or additional amounts imposed in connection with any of the foregoing tax items;

 

“Tax Matters” has the meaning set forth in Clause 8.7(d) (Other Limitations);

 

“Tax Returns” means any report, return, election, statement or other document or similar filing (including the attached schedules) required to be filed with respect to Taxes, including any information return, submission of electronic data including electronic VAT invoices, claim for refund, amended return, or declaration of estimated Taxes;

 

“Tax Warranties” means, collectively, the representations and warranties of the Company set forth in Clause 4.13 (Tax Matters);

 

“Third Party Claim” has the meaning set forth in Clause 8.5(c) (Procedure);

 

“Third Tranche Funding” has the meaning set forth in Clause 3.6(a)(ii) (Tranching Investor Funding);

 

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“Third Tranche Funding Date” means, in relation to a Tranching Investor:

 

(a)                                 the 240th day following, but excluding, the Closing Date with respect to such Tranching Investor (or, if such day is not a Business Day, the next following Business Day); or

 

(b)                                 any earlier closing date requested by the Company and consented to in writing by such Tranching Investor (such consent not to be unreasonably withheld or delayed), provided that not less than 45 days’ prior written notice of such earlier closing date shall have been given by the Company to such Tranching Investor unless such Tranching Investor waives the aforementioned notice requirement in writing;

 

“Third Tranche Subscription Price” means:

 

(a)                                 in relation to SoftBank, the aggregate amount of ***†; and

 

(b)                                 in relation to ***†, the aggregate amount of ***†;

 

“Third Tranche Subscription Shares” means:

 

(a)                                 in relation to SoftBank, ***† Series A Preferred Shares; and

 

(b)                                 in relation to ***†, ***† Series A Preferred Shares;

 

“Tranche Subscription Price” means the Second Tranche Subscription Price, the Third Tranche Subscription Price or the Fourth Tranche Subscription Price, as the case may be;

 

“Tranche Subscription Shares” means the Second Tranche Subscription Shares, the Third Tranche Subscription Shares or the Fourth Tranche Subscription Shares, as the case may be;

 

“Tranching Investor” means each of the Persons listed under the heading “Investor Name” in column 1 of Part B of Schedule 1 (Investors and Subscription Shares);

 

“Tranching Investor Deliverables” has the meaning set forth in Clause 3.3 (Investor Closing Deliverables);

 

“Tranching Investor Funding” means the Second Tranche Funding, the Third Tranche Funding or the Fourth Tranche Funding, as the case may be;

 

“Tranching Investor Funding Date” means the Second Tranche Funding Date, the Third Tranche Funding Date or the Fourth Tranche Funding Date, as the case may be;

 

“Tranching Investor Subscription Price” has the meaning set forth in Clause 3.1(a) (Agreement to subscribe for and issue the Tranching Investor Subscription Shares);

 

“Tranching Investor Subscription Shares” has the meaning set forth in Clause 3.1(a) (Agreement to subscribe for and issue the Tranching Investor Subscription Shares);

 

“Transaction Documents” means this Agreement, the Shareholders Agreement, the Articles, the Reorganization Agreement and any other agreement, document or instrument to be executed and delivered, in connection with the transactions contemplated by this Agreement and the other documents described above;

 

†                           Confidential treatment requested.

 

13

 

“Unpaid Tranching Investor Subscription Shares” means in relation to a Tranching Investor, the number of unpaid Series A Preferred Shares set out opposite such Tranching Investor’s name under the heading “Number of Unpaid Tranching Investor Subscription Shares” in column 4 of Part B of Schedule 1 (Investors and Subscription Shares);

 

“U.S. Dollar” or “US$” means the lawful currency of the United States;

 

“US GAAP” means United States generally accepted accounting principles applied on a consistent basis;

 

“VIE Document” means any written agreement, arrangement or contract implementing any VIE Structure of the Group Companies, including (but not limited to) the documents set forth in Part A of Clause 4.18(a) of the Disclosure Schedule;

 

“VIE Structure” means the investment structure in which a PRC-domiciled operating entity and its PRC shareholder(s) enter into a number of contracts with a non-PRC investor (or a foreign-invested enterprise incorporated in the PRC invested by the non-PRC investor) pursuant to which the non-PRC investor (or a foreign-invested enterprise incorporated in the PRC invested by the non-PRC investor) achieves Control of the PRC-domiciled operating entity and consolidates the financials of the PRC-domiciled entity with those of the non-PRC investor;

 

***†;

 

***†; and

 

***†.

 

1.2                               Interpretation and Rules of Construction

 

(a)                                 Unless otherwise expressly provided, for the purposes of this Agreement, the following rules of interpretation shall apply:

 

(i)                                     the provision of a table of contents, the division of this Agreement into Clauses and other subdivisions and the insertion of headings and titles for each Clause of this Agreement are for convenience of reference only and shall not affect or be utilized in construing or interpreting this Agreement;

 

(ii)                                  any reference in this Agreement to a Clause, Paragraph, Exhibit or Schedule, such reference is to a Clause or Paragraph of, or a Schedule or Exhibit to, this Agreement, unless otherwise indicated. All Exhibits and Schedules to this Agreement or referred to in this Agreement are hereby incorporated in and made a part of this Agreement as if set forth in full in this Agreement;

 

†                           Confidential treatment requested.

 

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(iii)                               any reference in this Agreement to gender shall include all genders, and words importing the singular number only shall include the plural and vice versa;

 

(iv)                              the word “including” or any variation of such word means (unless the context of its usage otherwise requires) “including, without limitation” and shall not be construed to limit any general statement that it follows to the specific or similar items or matters immediately following it;

 

(v)                                 when calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded, and all references to dates and times shall, except as expressly provided otherwise, mean dates and times in the China Standard Time zone;

 

(vi)                              references to “in the ordinary course of business” and comparable expressions mean the ordinary and usual course of business of the relevant Person, consistent in all material respects (including nature and scope) with the prior practice of such Person;

 

(vii)                           references to “writing”, “written” and comparable expressions include any mode of reproducing words in a legible and non-transitory form including emails and faxes, provided the sender complies with the applicable provisions of Clause 11.7 (Notices);

 

(viii)                        if any payment under this Agreement would have been, but for this Clause 1.2(a)(viii), due and payable on a date that is not a Business Day, then such payment shall instead be due and payable on the first Business Day after such date;

 

(ix)                              the term “non-assessable”, when used with respect to any shares, means that no further sums are required to be paid by the holders of such shares in connection with the issue of such shares for such issuance to be valid under the Laws of the Cayman Islands; and

 

(x)                                 references to “Indemnification” or terms of similar construct includes indemnification with respect to a direct claim or a Third Party Claim.

 

(b)                                 In the event an ambiguity or question of intent or interpretation arises, no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provision of this Agreement.

 

2.                                      AGREEMENT TO SUBSCRIBE FOR AND ISSUE THE NON-TRANCHING INVESTOR SUBSCRIPTION SHARES

 

2.1                               Agreement to subscribe for and issue the Non-Tranching Investor Subscription Shares

 

(a)                                 Subject to the terms and conditions of this Agreement, the Company shall issue and allot to each Non-Tranching Investor, and each Non-Tranching Investor, severally and not jointly, shall subscribe for, on the Closing Date with respect to such Non-Tranching Investor, the number of Series A Preferred Shares set out opposite its name under the heading “Number of

 

15

 

Investor Subscription Shares” in column 2 of Part A of Schedule 1 (Investors and Subscription Shares) (the “Non-Tranching Investor Subscription Shares” of such Non-Tranching Investor), for the aggregate subscription price set out opposite its name under the heading “Investor Subscription Price (US$)” in column 3 of Part A of Schedule 1 (Investors and Subscription Shares) (the “Non-Tranching Investor Subscription Price” of such Non-Tranching Investor).

 

(b)                                 The Non-Tranching Investor Subscription Price of each Non-Tranching Investor reflects a per share subscription price of ***†.

 

2.2                               Closing

 

(a)                                 Subject to the terms of this Agreement and the satisfaction or waiver (by the applicable Party) of the conditions set forth in Clause 7.1 (Conditions to Closing), the issuance and subscription of the Non-Tranching Investor Subscription Shares of each Non-Tranching Investor shall take place via the remote exchange of electronic documents and signatures on the Planned Closing Date.

 

(b)                                 Notwithstanding anything in this Agreement to the contrary:

 

(i)                                     the Company’s agreement with each Non-Tranching Investor under this Agreement is a separate agreement, and the sale and issuance of the Non-Tranching Investor Subscription Shares to each Non-Tranching Investor under this Agreement is a separate sale and issuance; and

 

(ii)                                  in the event that any Non-Tranching Investor is unable to consummate its Closing simultaneously with the Closings with respect to the other Investors, the Company may, at its sole discretion, elect to effect separate Closings with respect to the Non-Tranching Investors at different times without affecting the rights and obligations as between the Company and any Investor under this Agreement.

 

2.3                               Non-Tranching Investor Closing Deliverables

 

At the Closing with respect to each Non-Tranching Investor, such Non-Tranching Investor shall deliver or cause to be delivered to the Company:

 

(a)                                 the Non-Tranching Investor Subscription Price of such Non-Tranching Investor, by wire transfer of immediately available funds in U.S. Dollars to the bank account set forth in Schedule 2 (Company Bank Account);

 

(b)                                 a copy of the duly adopted resolutions of the board of directors of such Non-Tranching Investor approving entry into and the transactions contemplated by this Agreement; and

 

(c)                                  if such Non-Tranching Investor is not a party to the Shareholders Agreement prior to the Closing of such Non-Tranching Investor, the Joinder Agreement (as defined in the Shareholders Agreement) in the form attached to the Shareholders Agreement, duly executed by such Non-Tranching Investor,

 

together the “Non-Tranching Investor Deliverables”.

 

†                           Confidential treatment requested.

 

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2.4                               Company Closing Deliverables

 

At the Closing with respect to each Non-Tranching Investor, the Company shall upon its receipt of all of the Non-Tranching Investor Deliverables with respect to such Non-Tranching Investor:

 

(a)                                 issue and allot to such Non-Tranching Investor the Non-Tranching Investor Subscription Shares of such Non-Tranching Investor, as fully paid and free and clear of any and all Liens (except for any Liens set forth in the Transaction Documents, created by such Non-Tranching Investor, or pursuant to applicable securities laws and regulations);

 

(b)                                 deliver to such Non-Tranching Investor a copy of the register of members of the Company, dated as of the Closing Date and duly certified by a director of the Company or the registered office provider of the Company as a true and correct copy, evidencing that the Non-Tranching Investor Subscription Shares of such Non-Tranching Investor have been issued and registered under the name of such Non-Tranching Investor (excluding the names and details of any individual holders, whether they hold such interests directly or indirectly through nominee vehicles, of the Company’s Equity Securities either: (i) acquired upon exercise and/or vesting of awards granted pursuant to any ESOP adopted by the Company; or (ii) issued to replace the Equity Securities of Koubei which have been issued pursuant to the Koubei ESOP);

 

(c)                                  deliver to such Non-Tranching Investor a copy of the duly executed share certificate in the name of such Non-Tranching Investor, reflecting such Non-Tranching Investor as the sole holder of the Non-Tranching Investor Subscription Shares of such Non-Tranching Investor;

 

(d)                                 deliver or cause to be delivered to such Non-Tranching Investor a copy of the Shareholders Agreement in the form as set out in Exhibit 1 (Form of Shareholders Agreement), duly executed by the Company and the other parties to the Shareholders Agreement;

 

(e)                                  deliver or cause to be delivered to such Non-Tranching Investor copies of the duly adopted resolutions of (i) the Board approving entry by the Company into the Transaction Documents and performance of its obligations under such Transaction Documents, and (ii) the shareholders of the Company adopting the Articles; and

 

(f)                                   deliver or cause to be delivered to such Non-Tranching Investor a copy of legal opinion of Maples and Calder (Hong Kong) LLP, Cayman Islands counsel to the Company, in substantially the form as set out in Exhibit 3 (Form of Cayman Legal Opinion), and a copy of legal opinion of Fangda Partners, PRC counsel to the Company, in substantially the form as set out in Exhibit 4 (Form of PRC Legal Opinion), in each case addressed to such Investor and dated as of the Closing Date of such Non-Tranching Investor.

 

2.5                               Post-Closing deliverables

 

If any Non-Tranching Investor requests in writing no later than its Closing, the Company shall, within five (5) Business Days, following the Closing with respect to

 

17

 

such Non-Tranching Investor, deliver or cause to be delivered to such Non-Tranching Investor:

 

(a)                                 the original of the share certificate referred to in Clause 2.4(c) (Company Closing Deliverables); and

 

(b)                                 the original of each of the legal opinions referred to in Clause 2.4(f) (Company Closing Deliverables).

 

3.                                      AGREEMENT TO SUBSCRIBE FOR AND ISSUE THE TRANCHING INVESTOR SUBSCRIPTION SHARES

 

3.1                               Agreement to subscribe and issue the Tranching Investor Subscription Shares

 

(a)                                 Subject to the terms and conditions of this Agreement, the Company shall issue and allot to each Tranching Investor, and each Tranching Investor, severally and not jointly, shall subscribe for the number of Series A Preferred Shares set out opposite its name under the heading “Number of Investor Subscription Shares” in column 2 of Part B of Schedule 1 (Investors and Subscription Shares) (the “Tranching Investor Subscription Shares” of such Tranching Investor), for the aggregate subscription price set out opposite its name under the heading “Investor Subscription Price (US$)” in column 5 of Part B of Schedule 1 (Investors and Subscription Shares) (the “Tranching Investor Subscription Price” of such Tranching Investor).

 

(b)                                 The Tranching Investor Subscription Price of each Tranching Investor reflects a per share subscription price of ***†.

 

3.2                               Closing

 

(a)                                 Subject to the terms of this Agreement and the satisfaction or waiver (by the applicable Party) of the conditions set forth in Clause 7.1 (Conditions to Closing), the issuance and subscription of the Tranching Investor Subscription Shares of each Tranching Investor shall take place via the remote exchange of electronic documents and signatures on the Planned Closing Date.

 

(b)                                 Notwithstanding anything in this Agreement to the contrary:

 

(i)                                     the Company’s agreement with each Tranching Investor under this Agreement is a separate agreement, and the sale and issuance of the Tranching Investor Subscription Shares to each Tranching Investor under this Agreement is a separate sale and issuance; and

 

(ii)                                  in the event that any Tranching Investor is unable to consummate its Closing simultaneously with the Closings with respect to the other Investors, the Company may, at its sole discretion, elect to effect separate Closings with respect to the Tranching Investors at different times without affecting the rights and obligations as between the Company and any Investor under this Agreement.

 

3.3                               Investor Closing Deliverables

 

At the Closing with respect to each Tranching Investor, such Tranching Investor shall deliver or cause to be delivered to the Company:

 

†                           Confidential treatment requested.

 

18

 

(a)                                 the First Tranche Subscription Price of such Tranching Investor, by wire transfer of immediately available funds in U.S. Dollars to the bank account set forth in Schedule 2 (Company Bank Account);

 

(b)                                 a copy of the duly adopted resolutions of the board of directors of such Tranching Investor approving entry into and the transactions contemplated by this Agreement (or in the case of SoftBank, a copy of the extract of the minutes of the investment committee of SoftBank Vision Fund L.P. approving entry into and the transactions contemplated by this Agreement); and

 

(c)                                  if such Tranching Investor is not a party to the Shareholders Agreement prior to the Closing of such Tranching Investor, the Joinder Agreement (as defined in the Shareholders Agreement) in the form attached to the Shareholders Agreement, duly executed by such Tranching Investor,

 

together the “Tranching Investor Deliverables”.

 

3.4                               Company Closing Deliverables

 

At the Closing with respect to each Tranching Investor, the Company shall upon its receipt of all of the Tranching Investor Deliverables with respect to such Tranching Investor:

 

(a)                                 issue and allot to such Tranching Investor:

 

(i)                                     the Fully Paid Tranching Investor Subscription Shares of such Tranching Investor on a fully paid basis; and

 

(ii)                                  the Unpaid Tranching Investor Subscription Shares of such Tranching Investor on an unpaid basis,

 

in each case, free and clear of any and all Liens (except for any Liens set forth in the Transaction Documents, created by such Tranching Investor, or pursuant to applicable securities laws and regulations);

 

(b)                                 deliver to such Tranching Investor a copy of the register of members of the Company, dated as of the Closing Date and duly certified by a director of the Company or the registered office provider of the Company as a true and correct copy, evidencing that the Fully Paid Tranching Investor Subscription Shares and the Unpaid Tranching Investor Subscription Shares of such Tranching Investor have been issued and registered under the name of such Tranching Investor, and recorded in the register of members of the Company as fully paid shares (in the case of the Fully Paid Tranching Investor Subscription Shares) or as unpaid shares (in the case of the Unpaid Tranching Investor Subscription Shares) (excluding the names and details of any individual holders, whether they hold such interests directly or indirectly through nominee vehicles, of the Company’s Equity Securities either: (i) acquired upon exercise and/or vesting of awards granted pursuant to any ESOP adopted by the Company; or (ii) issued to replace the Equity Securities of Koubei which have been issued pursuant to the Koubei ESOP);

 

(c)                                  deliver to such Tranching Investor a copy of the duly executed share certificate in the name of such Tranching Investor, reflecting such Tranching

 

19

 

Investor as the sole holder of the Tranching Investor Subscription Shares of such Tranching Investor;

 

(d)                                 deliver or cause to be delivered to such Tranching Investor a copy of the Shareholders Agreement in the form as set out in Exhibit 1 (Form of Shareholders Agreement), duly executed by the Company and the other parties to the Shareholders Agreement;

 

(e)                                  deliver or cause to be delivered to such Tranching Investor copies of the duly adopted resolutions of (i) the Board approving entry by the Company into the Transaction Documents and performance of its obligations under such Transaction Documents, and (ii) the shareholders of the Company adopting the Articles; and

 

(f)                                   deliver or cause to be delivered to such Tranching Investor a copy of legal opinion of Maples and Calder (Hong Kong) LLP, Cayman Islands counsel to the Company, in substantially the form as set out in Exhibit 3 (Form of Cayman Legal Opinion), and a copy of legal opinion of Fangda Partners, PRC counsel to the Company, in substantially the form as set out in Exhibit 4 (Form of PRC Legal Opinion), in each case addressed to such Tranching Investor and dated as of the Closing Date of such Tranching Investor.

 

3.5                               Post-Closing deliverables

 

If any Tranching Investor requests in writing no later than its Closing, the Company shall, within five (5) Business Days, following the Closing with respect to such Tranching Investor, deliver or cause to be delivered to such Tranching Investor:

 

(a)                                 the original of the share certificate referred to in Clause 3.4(c) (Company Closing Deliverables); and

 

(b)                                 the original of each of the legal opinions referred to in Clause 3.4(f) (Company Closing Deliverables).

 

3.6                               Tranching Investor Funding

 

(a)                                 Each Tranching Investor shall deliver or cause to be delivered to the Company:

 

(i)                                     its Second Tranche Subscription Price for its Second Tranche Subscription Shares (the “Second Tranche Funding”) on its Second Tranche Funding Date;

 

(ii)                                  its Third Tranche Subscription Price for its Third Tranche Subscription Shares (the “Third Tranche Funding”) on its Third Tranche Funding Date; and

 

(iii)                               its Fourth Tranche Subscription Price for its Fourth Tranche Subscription Shares (the “Fourth Tranche Funding”) on its Fourth Tranche Funding Date,

 

in each case, by wire transfer of immediately available funds in U.S. Dollars to the bank account set forth in Schedule 2 (Company Bank Account).

 

20

 

(b)                                 Upon receipt by the Company of the relevant Tranche Subscription Price paid by a Tranching Investor in accordance with Clause 3.6(a) (Tranching Investor Funding), the Company shall:

 

(i)                                     update the Company’s register of members to evidence the relevant Tranche Subscription Shares of such Tranching Investor as being fully paid as of the relevant Tranching Investor Funding Date; and

 

(ii)                                  deliver or cause to be delivered to such Tranching Investor a copy of the Company’s register of members (excluding the names and details of any individual holders, whether they hold such interests directly or indirectly through nominee vehicles, of the Company’s Equity Securities acquired upon exercise and/or vesting of awards granted pursuant to any ESOP adopted by the Company) dated as of the relevant Tranching Investor Funding Date and duly certified by a director of the Company or the registered office provider of the Company as a true and correct copy, and evidencing the relevant Tranche Subscription Shares of such Tranching Investor as being fully paid.

 

3.7                               Failure by a Tranching Investor to comply with its Tranching Investor Funding obligations

 

If a Tranching Investor fails to comply with its obligations set out in Clause 3.6(a) (Tranching Investor Funding) within thirty (30) days after any of its Tranching Investor Funding Dates, the Company shall be entitled (in addition to and without prejudice to all other rights or remedies available to it, including the right to claim damages) by written notice to such Tranching Investor at any time prior to the completion of the relevant Tranching Investor Funding, to terminate this Agreement with immediate effect as between the Company on the one hand and such Tranching Investor on the other hand. Notwithstanding anything to the contrary in this Agreement, in the event of termination by the Company under this Clause 3.7, all unpaid Series A Preferred Shares of such Tranching Investor shall immediately be forfeited in accordance with the terms of the Articles, provided, however, that such termination will not affect the Tranching Investor Subscription Shares of such Tranching Investor that have been fully paid prior to such termination. Clause 11.14(c) (Termination of this Agreement) shall apply in respect of such termination by the Company under this Clause 3.7.

 

4.                                      REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

4.1                               Except as: (A) Fairly Disclosed, as of November 29, 2018, in the virtual data room hosted by Merrill DatasiteOne under the name “Ruby VDR 2018” set up by or on behalf of AGH (a copy of the index of which is made available to each Investor on or prior to the date of this Agreement); or (B) disclosed in the Disclosure Schedule, the Company hereby represents and warrants:

 

(a)                                 to each Investor:

 

(i)                                     as at the date of this Agreement (except for such representations and warranties that speak as of a specified date, in which case, such

 

21

 

representations and warranties shall be given as of such specified date) in the terms of the Company Warranties; and

 

(ii)                                  as at immediately prior to the Closing with respect to such Investor (by reference to the facts and circumstances then existing; except for such representations and warranties that speak as of a specified date, in which case, such representations and warranties shall be given as of such specified date) in the terms of the Enhanced Repeated Warranties; and

 

(b)                                 to each Tranching Investor, as at immediately prior to each Tranching Investor Funding (by reference to the facts and circumstances then existing; except for such representations and warranties that speak as of a specified date, in which case, such representations and warranties shall be given as of such specified date) in the terms of the Repeated Company Fundamental Warranties.

 

4.2                               Organization, Standing and Qualification

 

Each Group Company is duly incorporated, validly existing and in good standing (or equivalent status in the relevant jurisdiction) under the Laws of the jurisdiction of its incorporation or establishment, and has all requisite corporate power and authority to own its properties and assets and to carry on its business as now conducted in all material respects. Each Group Company is in compliance with its Charter Documents in all material respects.

 

4.3                               Capitalization

 

(a)                                 As of the date immediately prior to the first Closing with respect to the Investors, and disregarding the effect of any issuance or conversion of Series A Preferred Shares under this Agreement, the authorized share capital of the Company will be divided into shares consisting of the following:

 

(i)                                     Ordinary Shares

 

A total of ***† authorized Ordinary Shares, of which ***† Ordinary Shares have been issued.

 

(ii)                                  Non-Voting/Dividend Ordinary Shares

 

A total of authorized Non-Voting/Dividend Ordinary Shares, of which any issued Non-Voting/Dividend Ordinary Shares will have been issued either pursuant to any ESOP adopted by the Company or to replace the Equity Securities of Koubei which have been issued pursuant to the Koubei ESOP.

 

(iii)                               Preferred Shares

 

A total of authorized Series A Preferred Shares, of which ***† Series A Preferred Shares have been issued.

 

†                                         Confidential treatment requested.

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(iv)                              Options, Warrants, Reserved Shares of the Company

 

Except for:

 

(A)                               the rights of certain Persons to acquire any Shares pursuant to the Reorganization Agreement;

 

(B)                               the rights of certain Persons to acquire any Equity Securities pursuant to any ESOP of the Company (or any Equity Securities issued by the Company to replace the Equity Securities of Koubei which have been issued pursuant to the Koubei ESOP);

 

(C)                               the rights of Ali KB to acquire Series A Preferred Shares pursuant to the conversion of the Ali KB Convertible Loan;

 

(D)                               the rights of the Investors to subscribe for and be issued their respective Investor Subscription Shares; and

 

(E)                                the rights provided in the Shareholders Agreement and the Articles,

 

there are no options, warrants, conversion privileges or other rights or agreements presently outstanding to purchase, convert into, exercise for or exchange any of the Shares.

 

(v)                                 Option, Warrants, Reserved Shares of the other Group Companies

 

Except for:

 

(A)                               the rights provided in the Transaction Documents;

 

(B)                               the rights provided for in other Charter Documents of the Group Companies;

 

(C)                               the rights set out in the VIE Documents; and

 

(D)                               the rights set out in any documents related to the Koubei ESOP and the Beijing Choice Century ESOP,

 

no Equity Securities of any Group Company (excluding the Company), are subject to (A) any pre-emptive rights, rights of first refusal or other rights to purchase such Equity Securities (whether in favor of such Group Company or any other Person), or (B) any agreement that affects the voting or relates to the giving of written consents with respect to, or the right to cause the redemption or repurchase of, any Equity Securities of such Group Company (in each case, excluding any such rights or agreements relating to the non-wholly-owned Subsidiaries of Koubei set forth in Clause 4.3(a) of the Disclosure Schedule that are not significant or material in the context of the financial investment by the relevant Investor).

 

(b)                                 Schedule 4 (Capitalization) sets forth a complete and accurate list of all holders of Shares or other Equity Securities of the Company, together with the number of Shares or Equity Securities held by them immediately prior to the

 

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first Closing with respect to the Investors, provided that if the Company adopts an ESOP prior to the first Closing with respect to the Investors, then as at immediately prior to such Closing, the number of Non-Voting/Dividend Ordinary Shares issued pursuant to such ESOP shall not exceed ***† Non-Voting/Dividend Ordinary Shares in aggregate and Schedule 4 (Capitalization) shall exclude any other Equity Securities issued to replace the Equity Securities of Koubei which have been issued pursuant to the Koubei ESOP.

 

4.4                               Due Authorization and Enforceability

 

(a)                                 The Company, Koubei and Rajax has all requisite power and authority to execute and deliver the Transaction Documents to which it is a party and to carry out and perform its obligations under the Transaction Documents to which it is a party.

 

(b)                                 All corporate action on the part of each of the Company, Koubei and Rajax necessary to authorize:

 

(i)                                     the execution and delivery of the Transaction Documents to which it is a party; and

 

(ii)                                  the performance of all its respective obligations under the Transaction Documents (including the issuance and sale of the Investor Subscription Shares of such Investor by the Company),

 

has been taken or will be taken prior to the Closing of such Investor.

 

(c)                                  This Agreement has been duly executed and delivered by the Company.

 

(d)                                 Each Transaction Document to which each of the Company, Rajax and Koubei is a party, when executed and delivered by such Person shall be (assuming due execution and delivery by each of the other parties to each of the Transaction Documents) valid and legally binding obligations of such Person, enforceable against such Person in accordance with its terms, except:

 

(i)                                     as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other Laws of general application affecting enforcement of creditors’ rights generally; and

 

(ii)                                  as limited by Laws relating to the availability of specific performance, injunctive relief or other equitable remedies and to general equity principles.

 

4.5                               No Conflicts

 

Neither the execution, delivery or performance of and compliance with each Transaction Document, nor the consummation of the transactions contemplated under each Transaction Document by each of the Company, Rajax and Koubei will:

 

(a)                                 result in any violation or breach of such Person’s Charter Documents;

 

(b)                                 result in any material violation, breach or default under any Material Contract;

 

(c)                                  result in any material violation of any applicable Law; or

 

†                           Confidential treatment requested.

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(d)                                 require any consents, waivers, permits, approvals, orders, licenses, authorizations, registrations, qualifications, designations, declarations or filings by or with any Governmental Authority or any third party (collectively, “Approvals”) including waivers of pre-emptive rights, rights of first refusal or other similar rights to be obtained or made by the Company in respect of the Investor Subscription Shares of such Investor (other than Approvals which will have been obtained or granted on or prior to the date of Closing of such Investor).

 

4.6                               Valid Issuance of Shares

 

The Investor Subscription Shares of such Investor, when issued and allotted in accordance with the terms of this Agreement, will be duly authorized, validly issued, fully paid, non-assessable and free and clear of any Liens (except for any Liens set forth in the Transaction Documents, created by such Investor, or pursuant to applicable securities laws and regulations), save and except that the Unpaid Tranching Investor Subscription Shares issued to any Tranching Investor shall not be fully paid or non-assessable unless and until the Tranche Subscription Price for the relevant Tranche Subscription Shares has been paid in full by such Tranching Investor in accordance with Clause 3.6(a) (Tranching Investor Funding). The Ordinary Shares issuable upon the conversion of the Investor Subscription Shares of such Investor will be duly authorized, validly issued, fully paid, non-assessable and free and clear of any Liens (except for any Liens set forth in the Transaction Documents, created by such Investor or pursuant to applicable securities laws and regulations).

 

4.7                               Subsidiaries

 

(a)                                 Clause 4.7(a) of the Disclosure Schedule contains a correct and complete list of each Subsidiary of Rajax and Koubei (for the avoidance of doubt, excluding Rajax and Koubei) including, its name, its jurisdiction of incorporation or organization, the names of its direct shareholders and the shareholding percentage of each such shareholder (subject to any changes in the shareholding percentage of such shareholders that may result from the exercise and/or vesting of awards granted pursuant to the Beijing Choice Century ESOP), and in any event excluding the names and details of any individual holders, whether they hold such interests directly or indirectly through nominee vehicles, of Equity Securities acquired upon exercise and/or vesting of awards granted pursuant to the Beijing Choice Century ESOP. As at immediately prior to the first Closing with respect to the Investors, the Company does not own any Subsidiary (other than Rajax and Koubei and their respective Subsidiaries).

 

(b)                                 Other than as set out in Clauses 4.7(a) and 4.7(b) of the Disclosure Schedule, as at the date of the Agreement, no Group Company owns or Controls any Equity Security in any other Person. Other than as set out in Clause 4.7(b) of the Disclosure Schedule, as at the date of the Agreement, no Group Company is obligated to make any investment or capital contribution in or on behalf of any other Person.

 

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4.8                               Financial Statements

 

(a)                                 (i) The consolidated statement of financial position of Rajax as of December 31, 2017 (the “Statement Date”) and the related consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, including all notes to such financial statements, in each case as audited by PricewaterhouseCoopers (the “Rajax Audited Financial Statements”), and (ii) the unaudited and consolidated management accounts of Rajax for the six (6) months ended June 30, 2018 (the “Rajax Unaudited Financial Statements”, together with the Rajax Audited Financial Statements, the “Rajax Financial Statements”), present fairly, in all material respects, the financial position and financial performance of Rajax and its Subsidiaries, taken as a whole, as of the respective dates or for the respective periods set forth in the relevant Rajax Financial Statements, in each case in accordance with US GAAP during the periods covered by the relevant Rajax Financial Statements (except in the case of the Rajax Unaudited Financial Statements, for the omission of notes thereto and subject to normal year-end adjustments).

 

(b)                                 (i) The consolidated statement of financial position of Koubei as of December 31, 2017 and the related consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, including all notes to such financial statements, in each case as audited by Ernst & Young (the “Koubei Audited Financial Statements”), and (ii) the consolidated statement of financial position of Koubei as of June 30, 2018 and the related consolidated statement of profit or loss and other comprehensive income for the six month period then ended (the “Koubei Unaudited Financial Statements”, together with the Koubei Audited Financial Statements, the “Koubei Financial Statements”), present fairly, in all material respects, the financial position and financial performance of Koubei and its Subsidiaries, taken as a whole, as of the respective dates or for the respective periods set forth in the relevant Koubei Financial Statements, in each case in accordance with IFRS during the periods covered by the relevant Koubei Financial Statements (except, (A) in the case of the Koubei Unaudited Financial Statements, for the omission of notes thereto and subject to normal year-end adjustments, and (B) in the case of the consolidated statement of profit or loss of Koubei for the six month period ending June 30, 2018, for the note contained therein).

 

(c)                                  To the Knowledge of the Company, all the accounts, books, registers, ledgers and financial and other material records of whatsoever kind of each Group Company have been properly kept and completed in all material respects and fairly reflect, in all material respects, the transactions of such Group Company and its disposition of assets.

 

4.9                               Absence of Certain Changes; Liabilities

 

(a)                                 Since the Statement Date, each Group Company has (i) operated its principal business in the ordinary course consistent with its past practice, (ii) used its reasonable best efforts to preserve its business and (iii) collected receivables

 

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and paid payables and similar obligations in the ordinary course of business consistent with past practice, in all material respects. Since the Statement Date, there has not been a Material Adverse Effect.

 

(b)                                 Except as disclosed in Clause 4.9(b) of the Disclosure Schedule or in the Financial Statements, no Group Company has any liabilities of the type required to be disclosed on a balance sheet except for (i) liabilities set forth in the balance sheet that have not been satisfied since the Statement Date, and (ii) current liabilities incurred since the Statement Date in the ordinary course of the business consistent with its past practices and which do not exceed US$30,000,000 in the aggregate. Except as disclosed in Clause 4.9(b) of the Disclosure Schedule or in the Financial Statements or is incurred in the ordinary course of business, none of the Group Companies has any indebtedness, which individually exceeds US$10,000,000, that it has created, incurred, assumed or guaranteed.

 

4.10                        Solvency

 

None of the Group Companies is insolvent under the Laws of its jurisdiction of incorporation or unable to pay its debts as they fall due in the ordinary course of business. There are no ongoing Proceedings involving any Group Company in relation to any compromise or arrangement with creditors and no order has been made or petition presented or resolution passed by or on behalf of any Group Company for the winding-up, liquidation or bankruptcy of any Group Company. There has not been any petition or order for administration, winding-up, liquidation or bankruptcy filed against a Group Company or any appointment of a receiver or liquidator in respect of the assets of a Group Company.

 

4.11                        Litigation

 

Except for those disclosed in Clause 4.11 of the Disclosure Schedule, there is no material Proceeding pending or, to the Knowledge of the Company, threatened against or adversely affecting any Group Company or any of its properties or assets. Neither any Group Company nor any of its properties and assets is subject to any material order, injunction, judgment or decree of a Governmental Authority. For the purposes of this Clause 4.11 “material” means any Proceeding, order, injunction, judgment or decree which could have a cost or value to a Group Company, of US$10,000,000 or more.

 

4.12                        Compliance with Laws; Consents and Permits

 

(a)                                 None of the Group Companies is in violation of any applicable Law in any material respect. The business of each Group Company as currently conducted is in compliance in all material respects with all applicable Laws and no Group Company has received any notice from any Governmental Authority or, to the Knowledge of the Company, is under investigation, in each case with respect to a material violation of any applicable Laws. Each Group Company has fulfilled any and all material filings and registration requirements with the applicable Governmental Authorities necessary with respect to its operations as currently conducted.

 

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(b)                                 The Group Companies have obtained all material franchises, approvals, permits, licenses, certificates and any similar authorizations of or from any applicable Governmental Authority necessary for the business as currently conducted (each, a “Material Permit”), and:

 

(i)                                     each Material Permit is valid and in full force and effect;

 

(ii)                                  no Group Company is in material default or violation of any Material Permit; and

 

(iii)                               there is no Proceeding by any Governmental Authority pending against any Group Company that would likely result in the revocation, withdrawal, suspension, cancellation or termination of any Material Permit.

 

4.13                        Tax Matters

 

(a)                                 Each Group Company has filed all Tax Returns that are required to have been filed by such entity in a timely manner, with such filed Tax Returns being correct and complete in all material respects.

 

(b)                                 Each Group Company has paid all Taxes required to be paid by such entity in a timely manner.

 

(c)                                  Each Group Company has complied in all material respects with all applicable Laws relating to the withholding and payment of Taxes and has, within the time and manner prescribed by applicable Laws, withheld from and paid over to the appropriate Governmental Authority all amounts required to be so withheld and paid over.

 

(d)                                 There are no pending Proceedings for the assessment or collection of Taxes against any Group Company, and there are no deficiencies for any Taxes assessed or proposed against any Group Company that have not been fully paid.

 

(e)                                  Each Group Company is in compliance, in all material respects, with all applicable Laws with respect to transfer pricing (including record-keeping and documentation requirements).

 

(f)                                   Each Group Company is in compliance, in all material respects, with all terms and conditions of any Tax exemption or Tax holiday, and the consummation of the transactions contemplated by this Agreement will not have any adverse effect on any such Tax exemption or Tax holiday.

 

(g)                                  No Group Company is a tax resident of a jurisdiction other than its jurisdiction of incorporation.

 

(h)                                 No Group Company has taken any action or been a party to a transaction the primary purpose of which is the evasion of Taxes in violation of applicable Laws.

 

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4.14                        Certain Compliance Matters

 

To the Knowledge of the Company, each of the Group Companies and their respective directors, officers and employees are and have been in compliance with all applicable Laws relating to anti-bribery and anti-corruption.

 

4.15                        Financial Advisor Fees

 

Except as disclosed in Clause 4.15 of the Disclosure Schedule, there exists no agreement or understanding between any Group Company or any of their respective Affiliates and any investment bank or other financial advisor, broker or finder under which any Group Company may owe any brokerage, placement, finder or other fees relating to the offer or sale of the Investor Subscription Shares of any Investor.

 

4.16                        Labour and Employment Matters

 

(a)                                 Each Group Company has complied in all material respects with all applicable employment and labor Laws. The Group Companies, taken as a whole, have satisfied their payment obligations with respect to all wages, severance, allowances, commissions and other compensation required to be paid under any labor contract or applicable Law to the current and former employees and third party contractors of the Group Companies in all material respects.

 

(b)                                 No Group Companies is bound by or subject to any written contract, commitment or arrangement with any labor union or any collective bargaining agreements that would have a material impact on the operation of the business of the Group Companies taken as a whole. There is no pending or, to the Knowledge of the Company, threatened, strike or union organization activity or any unfair labor practice charge against any Group Company that would have a material impact on the operation of the business of the Group Companies taken as a whole.

 

(c)                                  Clause 4.16(c) of the Disclosure Schedule lists all Benefit Plans maintained by the Group Companies. All such Benefit Plans are and have at all times been maintained in compliance in all material respects with all applicable Laws. Each Group Company is in compliance in all material respects with all applicable employment and labor Laws and labor contracts relating to its provision of Social Insurance, and has satisfied its payment obligations with respect to, or made provision for the payment of, all Social Insurance contributions required under applicable employment and labor Laws and labor contracts in all material respects.

 

(d)                                 The consummation of the transactions contemplated by this Agreement will not give rise to any liability for severance pay, unemployment compensation or termination pay becoming due, or accelerate the time of payment or vesting or increase the amount of compensation or benefits due to any employee, officer, director or stockholder of the Group Companies.

 

4.17                        Intellectual Property

 

(a)                                 The Group Companies own or have a valid right or license to use all Proprietary Assets material to the Group Companies, taken as a whole, that are used in their businesses as now conducted (the “Material Proprietary Assets”)

 

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and no use of such Material Proprietary Assets infringes upon or otherwise violates any Proprietary Assets of any third person and to the Knowledge of the Company, all Material Proprietary Assets are valid and enforceable.

 

(b)                                 Each Material Proprietary Asset owned by a Group Company that is subject to registration with a Governmental Authority, including but not limited to patents, trademarks and copyrights (the “Registered Owned MPA”) is valid and subsisting. All registration, maintenance, renewal or other fees related to the Registered Owned MPA have been paid in a timely manner. To the Knowledge of the Company, no Registered Owned MPA is subject to ongoing or threatened challenges, objections, proceedings or actions before any court or Governmental Authority.

 

(c)                                  There are no outstanding options, licenses, agreements or rights of any kind granted by any Group Company to any third party relating to any Material Proprietary Assets of a Group Company which is not entered into on an arm’s length basis. No Group Company is bound by a party to any options, licenses or agreements with respect to the Proprietary Assets of any third party which is not entered into in the ordinary course of business and which termination (or any default or violation as a result of the execution, delivery or performance of and compliance with this Agreement, or the consummation of the transactions contemplated under this Agreement by the Company) would materially adversely affect the business, assets or prospects of the Group Companies, taken as a whole.

 

(d)                                 As of the date of this Agreement, no conduct of any Group Company infringes upon, misappropriates, or otherwise violates the Proprietary Assets of any other person or entity in any material respect, and none of the Group Companies has received any written notice:

 

(i)                                     alleging that such Group Company has violated any Proprietary Assets of any other person or entity; or

 

(ii)                                  seeking any damages or other remedies that would be material to such Group Company.

 

(e)                                  To the Knowledge of the Company, there is no infringement, unauthorized use or other violation of any Material Proprietary Asset (whether registered or not) by a third party that is materially adverse to the business of the Group Companies taken as a whole.

 

(f)                                   All Material Proprietary Assets created by employees of each Group Company are works for hire, and all rights, title and interest therein vest in, have been transferred and assigned to, or are under contractual obligations to and will (upon the request of the employing Group Company) be transferred and assigned to, such employing Group Company. No Group Company has obtained or utilized, in the course of its business operation, any employee’s Material Proprietary Assets developed prior to such employee’s employment with such Group Company, except for any Material Proprietary Assets that have been validly and properly assigned or licensed to such Group Company prior to the date of this Agreement.

 

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4.18                        Material Contracts

 

(a)                                 Clause 4.18(a) of the Disclosure Schedule lists all Material Contracts. All of the Material Contracts are valid, subsisting, in full force and effect and binding upon the relevant Group Companies that are parties to such Material Contracts, except:

 

(i)                                     as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting enforcement of creditors’ rights generally; and

 

(ii)           as limited by Laws relating to the availability of specific performance, injunctive relief or other equitable remedies and to general equity principles.

 

(b)                                 Each Group Company has complied in all material respects with the terms of each Material Contract.

 

(c)                                  Each Group Company is not in default in any material respect under any Material Contract. As of the date of this Agreement, no Group Company has received from any person any written notice regarding a material violation or material breach of, or material default under, any Material Contract. To the Knowledge of the Company, no counterparty to each such Material Contract is in breach of or default in any material respect thereunder, and no written notice has been received by any Group Company from such counterparty stating its intention to cancel, terminate or modify any Material Contract.

 

4.19                        Property

 

(a)                                 Except as disclosed in Clause 4.19 of the Disclosure Schedule, the Group Companies taken as a whole, have good and valid title to, or a legal and valid right to use, all material assets they currently use in the conduct of their respective businesses, free and clear of any Liens or third party claims (other than of lessors of any such leased assets), and except for leased items, no person other than a Group Company owns any interest in any such assets in any material respect.

 

(b)                                 No Group Company owns or has legal or equitable title or other right or interest (other than leasehold interests) in any real property. Except as disclosed in Clause 4.19 of the Disclosure Schedule, each lease pursuant to which a Group Company holds a leasehold interest is in compliance with applicable Laws in all material respects, including with respect to the operation of property and conduct of business as now conducted by the applicable Group Company which is a party to such lease.

 

(c)                                  All IT Assets owned or used by the Group Companies that are material to the operation of the business of the Group Companies as currently conducted taken as a whole operate and perform in all material respects in accordance with their documentation and functional specifications. The Group Companies have, taken as a whole, implemented reasonable security measures and backup and disaster recovery technology consistent with industry practices with respect to its material IT Assets and data stored thereon.

 

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4.20                        Insurance

 

(a)                                 All material insurance policies purchased or maintained by the Group Companies are in full force and effect (and all premiums due and payable in relation to such insurance policies have been paid in full on a timely basis).

 

(b)                                 None of the Group Companies is in default in any material respect with respect to any of its obligations under any material insurance policies. There is no threatened cancellation or termination of, or threatened premium increase with respect to, any of such insurance policies, other than increases in connection with renewals of such insurance policies in the ordinary course of business.

 

4.21                        Exempt Offering

 

Subject to the accuracy of the representations and warranties of each Investor, the sale provided for in this Agreement is either exempt from the registration requirements under the Securities Act or the registration or listing requirements of any other applicable securities laws and regulations, or such requirements do not apply.

 

4.22                        VIE Documents

 

The VIE Documents are adequate to establish and maintain the intended VIE Structure of the Group Companies, under which (a) each of Rajax and Koubei Control the Rajax VIE Subsidiaries and the Koubei VIE Subsidiaries, respectively, and (b) the financial statements of the Rajax VIE Subsidiaries can be consolidated with those of Rajax and the other Subsidiaries of Rajax in accordance with US GAAP and the financial statements of the Koubei VIE Subsidiaries can be consolidated with those of Koubei and the other Subsidiaries of Koubei in accordance with IFRS. No Group Company has received any written inquiries, notifications or any other form of official correspondence from any Governmental Authority challenging or questioning the legality or enforceability of any of the VIE Documents.

 

4.23                        Related Party Transactions

 

Each transaction that is material to the Group Companies, taken as a whole, and is between the Company or any Group Company, on the one hand, and AGH or any of its Subsidiaries, on the other hand, is entered into on an arm’s length basis.

 

4.24                        No Other Representations or Warranties

 

(a)                                 The Company hereby acknowledges and agrees that the Investor Warranties and the Repeated Investor Warranties, given by each Investor in accordance with Clause 5.1 and Clause 5.2 (if applicable), are the only representations and warranties given by each of the Investors in connection with the transactions contemplated by this Agreement.

 

(b)                                 The Company hereby expressly disclaims any and all reliance of any other statements, promises, advice, data or information made, communicated or furnished (orally or in writing, including electronically) by or on behalf of each Investor (or any of their respective direct or indirect shareholders, and their and such shareholders’ respective officers, directors, employees, advisors and other representatives, and advisors to the foregoing).

 

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5.                                      REPRESENTATIONS AND WARRANTIES OF EACH INVESTOR

 

5.1                               Each Investor hereby, severally but not jointly, represents and warrants to the Company in the terms of the Investor Warranties as at the date of this Agreement and as at immediately prior to the Closing of such Investor (except for such representations and warranties that speak as of a specified date, in which case, such representations and warranties shall be given as of such specified date).

 

5.2                               Each Tranching Investor hereby represents and warrants to the Company as at immediately prior to each Tranching Investor Funding (by reference to the facts and circumstances then existing) in the terms of the Repeated Investor Warranties.

 

5.3                               Organization, Standing and Qualification

 

Such Investor is duly organized, validly existing and in good standing (or equivalent status in the relevant jurisdiction) under, and by virtue of, the Laws of the place of its incorporation or establishment, and has all requisite corporate (or other) power and authority, in all material respects, to own its properties and assets and to carry on its business as now conducted.

 

5.4                               Due Authorization and Enforceability

 

(a)                                 Such Investor has all requisite corporate (or other) power and authority to execute and deliver the Transaction Documents to which such Investor is a party and to carry out and perform its obligations under the Transaction Documents.

 

(b)                                 All action on the part of such Investor (and, as applicable, its directors and/or shareholders) necessary to authorize the execution and delivery of the Transaction Documents to which it is a party and the performance of all obligations of such Investor under the Transaction Documents, has been taken or will be taken prior to the Closing with respect to such Investor.

 

(c)                                  This Agreement has been, and each of the other Transaction Documents to which such Investor is a party has been or will be, duly executed and delivered by such Investor.

 

(d)                                 This Agreement and each of the other Transaction Documents to which such Investor is a party are, or when executed and delivered by such Investor, will be (assuming due execution and delivery by each of the other parties to the Transaction Documents) valid and legally binding obligations of such Investor and enforceable against such Investor in accordance with its terms, except:

 

(i)                                     as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting creditors’ rights generally; and

 

(ii)           as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and to general equitable principles.

 

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5.5                               Accredited Investors

 

Such Investor is:

 

(a)                                 either (i) not a “US Person” as defined in Rule 902 of Regulation S of the Securities Act, or (ii) an “accredited investor” within the meaning of Rule 501(a) under Regulation D of the Securities Act; and

 

(b)                                 a “professional investor” (as defined in Part 1 of Schedule 1 to the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong)) or the Securities and Futures (Professional Investor) Rules (Cap. 571D of the Laws of Hong Kong).

 

5.6                               Purchase for Own Account

 

The Investor Subscription Shares of such Investor will be acquired for such Investor’s own account, not as a nominee or agent, and not with a view to or in connection with the sale or distribution of any part of the Investor Subscription Shares of such Investor, and such Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. The entire legal and beneficial interest of the Investor Subscription Shares of such Investor is being purchased, and will be held, for such Investor’s account only, and neither in whole or in part for any other Person. By executing this Agreement, such Investor further represents that it does not have any contract with any person to, directly or indirectly, sell, transfer or grant participations, with respect to any of its Investor Subscription Shares and has not solicited any person for such purpose.

 

5.7                               Exempt from Registration; Restricted Securities

 

Such Investor understands that its Investor Subscription Shares have not been registered under the Securities Act or registered or listed publicly pursuant to any other applicable securities laws and regulations, on the ground that the sale provided for in this Agreement is exempt from registration under the Securities Act or the registration or listing requirements of any other applicable securities laws and regulations, and that the reliance of the Company on such exemption is predicated in part on such Investor’s representations set forth in this Agreement. Such Investor understands that its Investor Subscription Shares are restricted securities within the meaning of Rule 144 under the Securities Act and the Company has no obligation to register or qualify such Investor Subscription Shares for resale (other than any obligation of the Company related to registration rights under the Shareholders Agreement); that such Investor Subscription Shares are not registered or listed publicly and must be held indefinitely unless they are subsequently registered or listed publicly or sold pursuant to an exemption from such registration or listing. Such Investor further acknowledges that if such exemption from registration or qualification is available, it may be conditioned on various requirements including the time and manner of sale, the holding period for its Investor Subscription Shares and on requirements relating to the Company which are outside of such Investor’s control, and which the Company is under no obligation, and may not be able to, satisfy.

 

5.8                               No Conflicts

 

Neither the execution, delivery nor performance by such Investor of, nor compliance by such Investor with, this Agreement and the other Transaction Documents to which

 

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such Investor is a party, nor the consummation of the transactions contemplated in this Agreement and the other Transaction Documents, will:

 

(a)                                 result in any violation or breach by such Investor of any of its Charter Documents;

 

(b)                                 result in any material violation, breach of default under any material contract to which such Investor is party;

 

(c)                                  result in any material violation of any applicable Law on the part of such Investor; or

 

(d)                                 require any Approvals or any notification to any Governmental Authority or any third party.

 

5.9                               Solvency

 

Such Investor is not insolvent under the Laws of its jurisdiction of incorporation or unable to pay its debts as they fall due. There are no ongoing Proceedings involving such Investor in relation to any compromise or arrangement with creditors and no order has been made or petition presented or resolution passed by or on behalf of such Investor for the winding-up, liquidation or bankruptcy of such Investor, and there has not been any petition or order for administration, winding-up, liquidation or bankruptcy filed against such Investor or any appointment of a receiver or liquidator in respect of the assets of such Investor.

 

5.10                        Disclosure of Information

 

Such Investor and its advisors have been afforded the opportunity to ask questions of and receive answers from representatives of the Company regarding the terms and conditions of the offering of the Investor Subscription Shares of such Investor and relating to the business, management, finances and operations of the members of the Group Companies.

 

5.11                        Knowledge and Experience of the Investor

 

Such Investor is experienced in evaluating and investing in private placement transactions of securities of companies in a similar stage of development and acknowledges that it can bear the economic risk of its investment and has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of an investment of a nature similar to that contemplated hereby. Such Investor is relying solely on: (a) its own counsel and other advisors for legal, financial and other advice with respect to the transactions contemplated by this Agreement and the other Transaction Documents; and (b) the Company Warranties.

 

5.12                        Financing

 

Such Investor has and will at the Closing and the Tranching Investor Funding (if applicable) of such Investor have cash (or commitment that payment shall be made on behalf of such Investor) available (or binding commitments to ensure cash is available prior to the Closing and the Tranching Investor Funding (if applicable) of such Investor) which is sufficient to purchase its Investor Subscription Shares and to pay all related fees and expenses for which such Investor will be responsible, and affirms

 

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that it is not a condition to the Closing of such Investor or any of its other obligations under this Agreement that such Investor obtains financing for or related to any of the transactions contemplated hereby. The funds used by such Investor to purchase its Investor Subscription Shares will be obtained and paid in compliance with all applicable Law.

 

5.13                        Absence of Interest in Competing Investment

 

Other than as set out in the Investor Disclosure Letter of such Investor (if applicable), neither such Investor nor its Affiliates, holds or otherwise Beneficially Owns, any equity interests in any Competing Investment as of the date of this Agreement.

 

5.14                        Legends

 

Such Investor understands that the certificates evidencing its Investor Subscription Shares issued pursuant to this Agreement may bear the following legend:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY OTHER APPLICABLE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER THE SECURITIES ACT OR PURSUANT TO AN EXEMPTION UNDER THE SECURITIES ACT.

 

THE SALE, PLEDGE, HYPOTHECATION, ASSIGNMENT OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF ANY SHAREHOLDERS AGREEMENT TO WHICH THE COMPANY AND THE HOLDERS OF SUCH SECURITIES IS A PARTY (IF ANY) AND OF THE MEMORANDUM AND ARTICLES OF ASSOCIATION OF THE COMPANY.”

 

5.15                        Financial Advisor Fees

 

There exists no agreement or understanding between such Investor or any of its Affiliates and any investment bank or other financial advisor, broker or finder under which any Group Company may owe any brokerage, placement, finder or other fees relating to the offer or sale of the Investor Subscription Shares of such Investor.

 

5.16                        No Other Representations or Warranties

 

(a)                                 Each Investor hereby acknowledges and agrees that the Company Warranties, Enhanced Repeated Warranties and the Repeated Company Fundamental Warranties given by the Company in accordance with Clause 4.1 are the only representations and warranties given by the Company in connection with the transactions contemplated by this Agreement.

 

(b)                                 Each Investor hereby expressly disclaims any and all reliance of any other statements, promises, advice, data or information made, communicated or furnished (orally or in writing, including electronically) by or on behalf of the Company (or any of its respective direct or indirect shareholders, and its and such shareholders’ respective officers, directors, employees, accounting,

 

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financial and legal advisors and other representatives, and advisors to the foregoing).

 

6.                                      COVENANTS AND AGREEMENTS

 

6.1                               Use of Proceeds

 

The Company agrees and covenants with each Investor that the proceeds from the issue of the Investor Subscription Shares of such Investor under this Agreement shall be used for business operations, strategic investments and other general corporate purposes of the Group Companies from time to time.

 

6.2                               Reasonable Best Efforts, Further Assurances

 

Each Party shall from time to time and at all times from the date of this Agreement, use all reasonable best efforts, to make, do or execute, or cause or procure to be made, done or executed, such further acts, deeds, conveyances, consents and assurances without further consideration, which may reasonably be required to effect the transactions contemplated by this Agreement. In furtherance and without limitation of the foregoing, in connection with any Approvals by any Governmental Authority necessary for any Party to consummate the transactions contemplated by the Transaction Agreements, such Party shall:

 

(a)                                 cooperate with other Parties and use its reasonable best efforts to make all filings and notifications with or to, and provide as promptly as reasonably practicable any additional information and documents that may be requested by, any such Governmental Authority;

 

(b)                                 to the extent legally permissible and reasonably practicable, keep the other Parties reasonably informed of any communication received by any such Governmental Authority; and

 

(c)                                  use its reasonable best efforts to resolve any objections and obtain such Approval as promptly as practicable; provided that, no such action shall be required if it would reasonably be expected to materially adversely affect the business, assets or prospects of such Party or the Group Companies.

 

6.3                               Conduct of Business Prior to the Closing

 

Except as required or expressly permitted by the Transaction Documents, between the date of this Agreement and the occurrence of first Closing with respect to the Investors, each of the Company, Koubei and Rajax shall, and shall procure the Group Companies to:

 

(a)                                 conduct its business, taken as a whole, in the ordinary course of business consistent with past practice and in compliance with all applicable Laws, in all material respects; and

 

(b)                                 use reasonable efforts to preserve their relationships with key customers and suppliers.

 

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6.4                               No Distribution; Prohibited Actions

 

Except as contemplated by the Transaction Documents, the Company shall not (without the prior written consent of the Majority Investors), from and after the date of this Agreement and until the first Closing with respect to the Investors:

 

(a)                                 declare any dividend or otherwise make any distribution to its shareholders; and

 

(b)                                 take any of the actions which, if taken after the first Closing with respect to the Investors, would require the prior written consent of the holders of a majority of the Series A Preferred Shares.

 

6.5                               Reorganization

 

As soon as practicable after the date of this Agreement and in any event prior to the first Closing with respect to the Investors, the Company, Koubei and Rajax shall enter into the Reorganization Agreement and use reasonable efforts to procure the completion of the Reorganization Steps in accordance with Clause 2 (Reorganization Steps) of the Reorganization Agreement. The Company shall deliver to each Investor:

 

(a)                                 a copy of the duly executed Reorganization Agreement;

 

(b)                                 a copy of the register of members of each of Koubei and Rajax, dated as of the date on which the Reorganization Steps are completed, reflecting the shareholding of Koubei and Rajax respectively (as indicated in Part A and Part B of Schedule 4 of the Reorganization Agreement); provided that the register of members of Koubei will not include the details of any individual holders, whether they hold such interests directly or indirectly through nominee vehicles, of Koubei’s Equity Securities acquired upon exercise and/or vesting of awards granted pursuant to the Koubei ESOP; and

 

(c)                                  a copy of the amended memorandum and articles of association of each of Koubei and Rajax, adopted by Koubei and Rajax respectively pursuant to the Reorganization Steps on or prior to the date on which the Reorganization Steps are completed,

 

(collectively, the “Reorganization Documents”).

 

6.6                               Other Covenants

 

The Company, Rajax and Koubei shall procure each relevant Group Company to use its reasonable efforts to complete the actions set forth in Schedule 5 (Other Covenants) as soon as practicable following the first Closing with respect to the Investors, and shall deliver reasonable evidence to the Majority Investors (including SoftBank) indicating that each such action has been completed.

 

7.                                      CONDITIONS

 

7.1                               Conditions to Closing

 

(a)                                 Mutual Conditions. The obligations of the Company, on the one hand, and each Investor, on the other hand, to proceed to the Closing with respect to such

 

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Investor is subject to the satisfaction or waiver (where legally permissible) of the following conditions:

 

(i)            the completion of the Reorganization Steps (as defined in the Reorganization Agreement), undertaken in accordance with Clause 2 (Reorganization Steps) of the Reorganization Agreement;

 

(ii)           no applicable Laws shall have been adopted, promulgated or enforced by any Governmental Authority, and no temporary restraining order, preliminary or permanent injunction or other order issued by any Governmental Authority of competent jurisdiction (an “Injunction”) shall be in effect, having the effect of making the transactions contemplated in this Agreement illegal or otherwise prohibiting the completion of the transactions contemplated in this Agreement; and

 

(iii)          no Proceeding initiated by any Governmental Authority, seeking an Injunction having the effect of making the transactions contemplated in this Agreement illegal or otherwise prohibiting the completion of the transactions contemplated in this Agreement shall be pending.

 

(b)           Conditions to an Investor’s Obligations. The obligations of each Investor to proceed to the Closing of such Investor is subject to the satisfaction or waiver by such Investor of the following conditions:

 

(i)            the Company shall have delivered to such Investor the Reorganization Documents;

 

(ii)           (A) the Company Warranties (including the representations and warranties set forth in Clause 4.3 (Capitalization) but excluding other Company Fundamental Warranties) given by the Company in accordance with Clause 4.1(a)(i) shall be true and accurate in all material respects as of the date of this Agreement, (B) the Enhanced Repeated Warranties (including the representations and warranties set forth in Clause 4.3 (Capitalization) but excluding other Company Fundamental Warranties) given by the Company in accordance with Clause 4.1(a)(ii) shall be true and accurate in all material respects as at immediately prior to the Closing with respect to such Investor and (C) the Company Fundamental Warranties (excluding the representations and warranties set forth in Clause 4.3 (Capitalization)) given by the Company in accordance with Clause 4.1(a) shall be true and accurate as of the date of this Agreement and as at immediately prior to the Closing with respect to such Investor;

 

(iii)          each of the Company, Rajax and Koubei shall have performed in all material respects each of its obligations under the Transaction Documents that are required to be performed by it prior to the Closing with respect to such Investor; and

 

(iv)          there has not been a Material Adverse Effect,

 

and of the above conditions, the condition listed in Clause 7.1(a)(i) is referred to as the “Reorganization Completion Condition”. The Company shall notify the Investors as soon as practicable (and in any event, within forty-eight (48) hours) upon becoming

 

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aware that the Reorganization Completion Condition has been satisfied. The first Business Day on or by which the Reorganization Completion Condition is satisfied is the “Reorganization Completion Date”.

 

7.2          No other conditions

 

The Company, on the one hand, and each Investor, on the other hand, agree that, except as may be otherwise agreed in writing between the Company and such Investor, the Closing with respect to such Investor is not subject to any conditions (including any condition as to availability of financing to such Investor) other than the conditions expressly set forth in Clause 7.1 (Conditions to Closing).

 

8.             INDEMNIFICATION

 

8.1          Indemnification by the Company

 

The Company hereby agrees to, from and after the Closing of each Investor and subject to the limitations set forth in this Clause 8, indemnify and hold harmless such Investor, its Affiliates and their respective directors, officers and employees (each an “Indemnified Party”) from and against any and all Indemnifiable Losses (whether or not such Indemnifiable Losses relate to a direct claim or a Third Party Claim) actually suffered or incurred by such Indemnified Party as a result of, or arising from any breach of or inaccuracy in any representation or warranty given by the Company in this Agreement.

 

8.2          Limitations

 

(a)           The Company shall have no liability to any Indemnified Party under Clause 8.1 (Indemnification by the Company):

 

(i)            in respect of any claim or series of related claims arising from the same or substantially similar facts or circumstances if the Indemnifiable Losses suffered or incurred by such Indemnified Party in respect of such claim or series of related claims are less than US$2,000,000; and

 

(ii)           unless and until the aggregate amount of the Indemnifiable Losses suffered or incurred by such Indemnified Party (not taking into account any Indemnifiable Losses excluded pursuant to Clause 8.2(a)(i) (Limitations)) exceeds, in the case of a Non-Tranching Investor, five (5) per cent of the Non-Tranching Investor Subscription Price of such Non-Tranching Investor, or in the case of a Tranching Investor, five (5) per cent of the Tranching Investor Subscription Price of such Tranching Investor, in which case the Company shall be liable to such Indemnified Party for the whole amount of such Indemnifiable Losses and not merely the excess, provided that the limitations on the Company’s indemnification obligations under this Clause 8.2(a) shall not apply to any breach of the Company Fundamental Warranties.

 

(b)           The maximum aggregate liability of the Company to any Indemnified Party under Clause 8.1 (Indemnification by the Company), other than Indemnifiable Losses in respect of any breaches of any Company Fundamental Warranties by the Company or of any fraud by the Company, shall not exceed twenty five (25) per cent of:

 

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(i)            in the case of any Non-Tranching Investor, the Non-Tranching Investor Subscription Price actually paid by such Non-Tranching Investor at the Closing with respect to such Non-Tranching Investor; or

 

(ii)           in the case of any Tranching Investor, the First Tranche Subscription Price actually paid by such Tranching Investor at its Closing plus any Tranche Subscription Price actually paid by such Tranching Investor at any Tranching Investor Funding.

 

(c)           The maximum aggregate liability of the Company to any Indemnified Party under Clause 8.1 (Indemnification by the Company) (including any Indemnifiable Losses in respect of any breach of any Company Fundamental Warranties by the Company but excluding any Indemnifiable Losses in respect of any fraud by the Company), shall not exceed:

 

(i)            in the case of any Non-Tranching Investor, the Non-Tranching Investor Subscription Price actually paid by such Non-Tranching Investor at the Closing with respect to such Non-Tranching Investor; or

 

(ii)           in the case of any Tranching Investor, the First Tranche Subscription Price actually paid by such Tranching Investor at its Closing plus any Tranche Subscription Price actually paid by such Tranching Investor at any Tranching Investor Funding.

 

8.3          Survival of representations and warranties

 

(a)           With respect to each Investor, each of:

 

(i)            the Company Warranties (other than the Tax Warranties and the Company Fundamental Warranties), shall survive the Closing with respect to such Investor, until the date which shall fall eighteen (18) months after such Closing;

 

(ii)           the Tax Warranties shall survive the Closing with respect to such Investor, until March 31, 2020; and

 

(iii)          the Company Fundamental Warranties shall survive the Closing with respect to such Investor, until the date which shall fall on the third (3rd) anniversary of such Closing.

 

(b)           Without prejudice to Clause 8.3(a) (Survival of representations and warranties), with respect to each of the Tranching Investors, each of the Repeated Company Fundamental Warranties shall survive each Tranching Investor Funding, until the date which shall fall on the third (3rd) anniversary of the date of such Tranching Investor Funding (the applicable survival periods set forth in Clause 8.3(a) (Survival of representations and warranties) and this Clause 8.3(b) (Survival of representations and warranties), the “Survival Periods”).

 

(c)           It is the express intent of the Parties that:

 

(i)            if the applicable Survival Periods for the survival of representations and warranties and for the making of claims for indemnification based on any breaches of such representations and warranties is shorter than

 

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the statute of limitations that would otherwise have been applicable to such breach, then, by contract, the statute of limitations applicable to such breach shall be reduced to the applicable Survival Periods; and

 

(ii)           in respect of the relevant breach, the Company shall not have any obligation to indemnify and hold harmless any Indemnified Parties after the last date that is within the applicable Survival Period (other than any unresolved claim set out in a Claim Notice that was duly delivered prior to such date), and all rights and remedies that may be exercised by an Indemnified Party with respect to such representations and warranties and any claim for indemnification based on any breaches of such representations and warranties (other than any unresolved claim set out in a Claim Notice that was delivered prior to such date) will expire and terminate simultaneously with the ending of such applicable Survival Period.

 

(d)           The Parties further acknowledge that the Survival Periods are the results of arms’ length negotiations and are intended to be enforced as agreed among the Parties. For the avoidance of doubt, if a Claim Notice has been duly given in good faith prior to the expiration of the applicable Survival Period, then the relevant claim as set out in such Claim Notice shall survive until it has been finally resolved in accordance with the terms of this Agreement.

 

8.4          Exclusive remedy

 

From and after the Closing of any Investor and notwithstanding anything to the contrary in this Agreement or any other Transaction Documents (but without prejudice to Clause 11.3 (Specific Performance)), the indemnification provisions set forth in this Clause 8 shall be the sole and exclusive remedy of an Investor for any claims by such Investor against the Company in respect of the matters set forth in Clause 8.1 (Indemnification by the Company).

 

8.5          Procedure

 

(a)           Any Indemnified Party seeking indemnification under this Clause 8 shall give written notice (a “Claim Notice”) to the Company.

 

(b)           The Claim Notice shall be delivered to the Company within sixty (60) days of the Indemnified Party becoming aware of the facts giving rise to the Indemnifiable Losses and shall include a description in reasonable detail of (to the extent that the Indemnified Party has actual knowledge):

 

(i)            the basis for, and nature of, such claim, including the facts constituting the basis for such claim; and

 

(ii)           the estimated amount of Indemnifiable Losses that have been or reasonably will be sustained by the Indemnified Party in connection with such claim.

 

(c)           In the event of any Proceeding against any Indemnified Party by a third party with respect to which such Indemnified Party may claim indemnification under Clause 8.1 (Indemnification by the Company) (a “Third Party Claim”), the Indemnified Party shall give the Company written notice within twenty

 

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(20) Business Days of receiving written notice of such Third Party Claim. If the Indemnified Party fails to provide each such notice within such time period, the Company will not be obligated to indemnify the Company with respect to such Third Party Claim to the extent that the Company is prejudiced by such failure of the Indemnified Party.

 

(d)           The Company shall notify the Indemnified Party within thirty (30) Business Days after receipt of such notice as to whether the Company will assume the defense of such Third Party Claim. If the Company assumes the defense:

 

(i)            the Indemnified Party shall have the right to participate in such defense and to engage separate counsel of its own choosing at its own cost and expense; and

 

(ii)           the Company shall not agree to any compromise, settlement or discharge to which the Indemnified Party has not consented to in writing (which consent shall not be unreasonably withheld, conditioned or delayed) unless such settlement, compromise or discharge includes only the payment of monetary damages which shall be paid by the Company and includes a release of the Indemnified Party from all liability in respect of such Third Party Claim.

 

(e)           If requested by the Company, the Indemnified Party will provide reasonable cooperation to the Company in defending such Third Party Claim. If the Company elects not to assume the defense of such Third Party Claim, the Indemnified Party may assume the defense at the expense of the Company, provided that the Indemnified Party shall not agree to any compromise, settlement or discharge to which the Company has not consented in writing (which consent shall not be unreasonably withheld, conditioned or delayed).

 

8.6          Right to Cure

 

The Company shall not be liable for any claim made by an Indemnified Party pursuant to this Clause 8 (Indemnification) to the extent any breach or circumstances underlying such claim is capable of being remedied or otherwise cured and the Company shall have remedied or otherwise cured the same within sixty (60) days after being given notice of such breach by such Indemnified Party without such Indemnified Party having actually suffered or incurred any Indemnifiable Losses in connection with or attributable to the matters giving rise to such claim.

 

8.7          Other Limitations

 

(a)           Notwithstanding anything in this Agreement to the contrary, the Company shall not be liable under this Agreement to any Indemnified Party for any matter:

 

(i)            to the extent such Indemnified Party actually recovers an amount in respect of such matter, or from the circumstances out of which such matter arises, from any third party (including under any insurance policy) and only to the extent of such recovered amount;

 

(ii)           to the extent has arisen as a result of an act, omission, transaction or arrangement carried out at the written request or with the written

 

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approval of such Indemnified Party or its directors, officers, employees, agents and other persons acting on its behalf (collectively, the “Representatives”);

 

(iii)          that is a contingent liability, unless and until such liability is actually due and payable, provided that in respect of such contingent liability, if such Indemnified Party has become aware of such claim and has duly provided a Claim Notice in accordance with Clause 8.5 (Procedure) prior to the expiration of any applicable Survival Periods, then such Indemnified Party shall be deemed to have preserved its right and entitlement to be indemnified for such claim by the Company if and when the contingent liability becomes actually due and payable;

 

(iv)          the liabilities arising out of which have been specifically provided for or reserved against in the Financial Statements and only to the extent of the amount so provided for or reserved against; or

 

(v)           that arises out of an action required to be taken under this Agreement.

 

(b)           No Indemnified Party shall be entitled to recover for any Indemnifiable Loss based on substantially the same set of facts more than once.

 

(c)           To the extent required by the Laws of the State of New York and available to an Indemnified Party, such Indemnified Party shall procure that all reasonable steps are taken to avoid or mitigate any Indemnifiable Losses which it may suffer in consequence of any breach of or inaccuracy in, any representation or warranty given by the Company in this Agreement; provided that, such Indemnified Party shall not be required to mitigate any Indemnifiable Losses in connection with or attributable to any breach of, or inaccuracy in, any Tax Warranty.

 

(d)           Each of the Investors acknowledges and agrees that the only representations and warranties given by the Company under Clause 4.1 in relation to Tax or any related claims, liabilities or other matters (“Tax Matters”) are set out in Clause 4.13 (Tax Matters) and no other representations and warranties are given in relation to Tax Matters by the Company.

 

(e)           The Indemnified Party shall not be entitled to claim for, from the Company under this Clause 8 (Indemnification), any punitive, speculative or special loss or for any indirect or consequential loss.

 

(f)            For the avoidance of doubt, the limitations set forth in this Clause 8.7 shall only apply to claims made by any Indemnified Party against the Company in respect of the matters set forth in Clause 8.1 (Indemnification by the Company).

 

9.             NO USE OF NAME

 

Except as otherwise permitted under Clause 10.2 (Press Releases, etc) (and only to the extent so permitted), without the prior written consent of the Company, AGH, ANT or their respective Affiliates, as applicable, each of the Investors (other than Ali KB) shall not, and shall cause its Affiliates to not:

 

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(a)           use in advertising, publicity, announcements or otherwise the name of the Company, AGH, ANT or any of their respective Affiliates, either alone or in combination of, including:

 

(i)            “阿里巴巴” (Chinese equivalent for “Alibaba”), “淘宝” (Chinese equivalent for “Taobao”), “阿里” (Chinese equivalent for “Ali”), “全球速卖通” (Chinese brand for “AliExpress”), “淘” (Chinese equivalent for “Tao”), “天猫” (Chinese equivalent for “Tmall”), “聚划算” (Chinese equivalent for “Juhuasuan”), “飞猪” (Chinese equivalent for “Fliggy”), “阿里妈妈” (Chinese equivalent for “Alimama”), “阿里云” (Chinese equivalent for “Alibaba Cloud”), “口碑” (Chinese equivalent for “Koubei’), “虾米” (Chinese equivalent for “Xiami”), “蚂蚁金服” (Chinese brand for “Ant Financial”), “蚂蚁” (Chinese equivalent for “Ant”), “蚂蚁财富” (Chinese equivalent for “Ant Fortune”), “支付宝” (Chinese brand for “Alipay”), “1688”, “一达通” (Chinese brand for “OneTouch”), “友盟” (Chinese equivalent for “Umeng”), “盒马” (Chinese equivalent for “HeMa”), “闲鱼” (Chinese equivalent for “XianYu”), “优视” (Chinese equivalent for “UC/UCWeb”), “高德地图” (Chinese brand for “AMAP”), “钉钉” (Chinese brand for “DingTalk”), “余额宝” (Chinese equivalent for “Yu’e Bao”), “招财宝” (Chinese equivalent for “Zhaocaibao”), “芝麻信用” (Chinese equivalent for “Zhima Credit”), “网商银行” (Chinese brand for “MYbank”), “阿里通信” (Chinese equivalent for “AliTelecom”), “优酷” (Chinese equivalent for “YOUKU”), “花呗” (Chinese equivalent for “HUABEI”), “借呗” (Chinese equivalent for “JIEBEI”), “Alibaba”, “Taobao”, “Ali”, “AliExpress”, “Tao”, “Tmall”, “Juhuasuan”, “Fliggy”, “Alimama”, “Alibaba Cloud”, “AliOS”, “Koubei”, “Xiami”, “Ant Financial”, “Ant”, “Ant Fortune”, “Alipay”, “OneTouch”, “Umeng”, “UCWeb”, “UC”, “AMAP”, “DingTalk”, “Yu’e Bao”, “Zhaocaibao”, “Zhima Credit”, “MYbank”, “AliTelecom”, “YOUKU”, “HUABEI”, “JIEBEI”;

 

(ii)           the associated devices and logos of the above brands (including but not limited to the smiling face device of Alibaba Group, the cow device of Alibaba.com, the Tao doll device of Taobao, the cat device of Tmall, the Ju doll device of Juhuasuan, the bracket device of Alibaba Cloud, the hippo device of HeMa, the fish device of XianYu, the pig device of Fliggy, the wing device of Dingtalk, the ant device of Ant Financial, the Zhi device of Alipay, the ingot device of Zhaocaibao, the sesame device of Zhima Credit together with the Gaoxiaode device and the paper aeroplane device of AutoNavi); and/or

 

(iii)          any company name, trade name, trademark, service mark, domain name, device, design, symbol or any abbreviation, contraction or related simulation owned or used by the Company, AGH, ANT or any of their respective Affiliates; or

 

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(b)                                 represent, directly or indirectly, that any product or services provided by such Party or its Affiliates has been approved or endorsed by the Company, AGH, ANT or any of their respective Affiliates.

 

10.                               CONFIDENTIALITY AND NON-DISCLOSURE

 

10.1                        Disclosure of Terms

 

(a)                                 The existence of the investment under this Agreement and the existence, terms and conditions of the Transaction Documents and any information or documents received by any Investor from AGH or the Company in relation to the transactions contemplated under this Agreement (collectively, the “Confidential Information”) shall be considered confidential information and shall not be disclosed by any Party to any third party except in accordance with the provisions set forth below; provided that such Confidential Information shall not include, with respect to any Party, any information that is:

 

(i)                                     in the public domain other than by reason of the breach of the confidentiality obligations under this Agreement by such Party;

 

(ii)                                  already in the possession of such Party at the time the information was disclosed to such Party by other Parties;

 

(iii)                               acquired by such Party from a source other than the other Parties, which source, to the knowledge of the receiving Party, is not in breach of any obligation owed to any Party in respect of such disclosure;

 

(iv)                              independently developed by such Party without using or making reference to any Confidential Information; or

 

(v)                                 agreed in writing by the Company and the other Parties not to be confidential.

 

10.2                        Press Releases, etc

 

(a)                                 The Company and Ali KB may publicly announce, or cause their respective Affiliates or other representatives to publicly announce, the existence of the transactions contemplated under this Agreement, the total proceeds raised or proposed to be raised under this Agreement, the valuation of the Company as implied under this Agreement, and such other related information as it deems appropriate or desirable; provided that any press release or public announcement containing the name of any Investor or any of its Affiliates, shall require the prior written consent of such Investor.

 

(b)                                 Except as provided for in Clause 10.2(a) (Press Releases, etc), no Investor (other than Ali KB) may publicly announce, or permit its Affiliates or other representatives to publicly announce, the existence of the transactions contemplated under this Agreement or any Confidential Information, except:

 

(i)                                     by way of a press release in form and substance jointly approved by the Company and the Majority Investors (including the written consent of SoftBank); and/or

 

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(ii)                                  if a public announcement is made in accordance with Clause 10.2(a) (Press Releases, etc), a public announcement, in form and substance to be reasonably agreed between the Company and such Investor who has given its prior written consent pursuant to Clause 10.2(a) (Press Releases, etc), of:

 

(A)                               the matters disclosed in the public announcement made in accordance with Clause 10.2(a) (Press Releases, etc); and

 

(B)                               the fact that such Investor or its Affiliates have participated in the transactions contemplated under this Agreement.

 

10.3                        Permitted Disclosures

 

(a)                                 In the event that any Party is requested by any Governmental Authority or becomes legally compelled (including pursuant to securities or Tax Laws and regulations and in connection with any legal, judicial, arbitration or administrative Proceedings) to disclose the existence of this Agreement, any other Transaction Documents, any of the exhibits and schedules attached to such agreements, or any Confidential Information in contravention of the provisions of this Clause 10, such Party (the “Disclosing Party”) shall to the extent practicable and permitted by Laws, provide the other Parties (the “Non-Disclosing Parties”) with prompt written notice of that fact and use all commercially reasonable efforts to seek (with the cooperation and reasonable efforts of the other Parties) a protective order, confidential treatment or other appropriate remedy with respect to the information which is requested or legally required to be disclosed. In such event, the Disclosing Party shall furnish only that portion of the information which is requested or legally required to be disclosed and shall exercise reasonable efforts to keep confidential such information to the extent reasonably requested by any Non-Disclosing Party.

 

(b)                                 Each of the Company and Ali KB may disclose the existence of the transactions contemplated under this Agreement by the Investors and the terms and conditions of such transactions and the Confidential Information solely to its current or bona fide prospective investors, directors, officers, employees, shareholders, investment bankers, lenders, accountants, auditors, insurers, business or financial advisors, and legal advisors, provided that each such recipient shall either be subject to professional obligations to keep such information confidential or confidentiality obligations that are as restrictive as this Clause 10 and that each of the Company and Ali KB shall be liable for any breach of confidentiality obligations by any of its recipient.

 

(c)                                  Each Investor may disclose the existence of such Investor’s investment in the Company including the terms and conditions of such investment and the Confidential Information to its Representatives (as such term is defined in the nondisclosure agreement between AGH and such Investor (or the applicable Affiliate of such Investor) in connection with such investment), its Affiliates, or the directors, officers, employees, current or bona fide prospective investors, lenders, shareholders or partners of such Investor or its Affiliates (in the case of SoftBank, including any general partner, fund manager or advisor,

 

47

 

investment committee member or observer or existing or bona fide prospective limited partner of SoftBank Vision Fund L.P. or any of its affiliated funds) on a need to know basis, provided that each such recipient shall either be subject to professional obligations to keep such information confidential or confidentiality obligations that are as restrictive as this Clause 10 and that each Investor shall be liable for any breach of confidentiality obligations by any of its recipient.

 

(d)                                 Notwithstanding anything in this Clause 10 to the contrary, nothing in this Clause 10 shall prevent or restrict Ali KB from disclosing to AGH and its Affiliates, directors and officers, and disclosing in the AGH’s filings with the applicable Governmental Authorities, any information that is required to be disclosed by AGH under applicable securities Laws (including the Securities Act and/or the U.S. Securities Exchange Act of 1934 (as amended, and including the rules and regulations promulgated under such Laws)) and according to AGH’s written internal requirements.

 

(e)                                  Notwithstanding anything in this Clause 10 to the contrary, nothing in this Clause 10 shall prevent or restrict SoftBank from disclosing to SoftBank Group Corp. and its Affiliates, directors and officers, and disclosing in the filings of SoftBank Group Corp. with the applicable Governmental Authorities, any information that is required to be disclosed by SoftBank Group Corp. under applicable securities Laws and according to the written internal requirements of SoftBank Group Corp.

 

10.4                        Other Information

 

The provisions of this Clause 10 shall be in addition to, and not in substitution for, the provisions of any separate non-disclosure agreement executed by any of the Parties or their respective Affiliates with respect to the transactions contemplated under this Agreement.

 

11.                               MISCELLANEOUS

 

11.1                        Governing Law

 

This Agreement shall be governed by and construed exclusively in accordance with the Laws of the State of New York.

 

11.2                        Dispute Resolution

 

(a)                                 The Parties agree to use reasonable efforts to resolve any disputes arising out of or relating to this Agreement through consultation. Any Party may commence consultation by sending the other Parties a written notice, which shall include a description of the dispute in reasonable details and a request for consultation. In the event that the Parties are unable to resolve the dispute arising under this Agreement within thirty (30) days of the date of such notice, such dispute (including any dispute relating to the existence, validity, interpretation, performance, breach or termination of this Agreement or any dispute regarding non-contractual obligations arising out of or relating to this Agreement) shall be referred to and finally resolved by arbitration administered by the Hong Kong International Arbitration Centre (“HKIAC”)

 

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under the HKIAC Administered Arbitration Rules in force when the notice of arbitration is submitted, as may be modified by this Clause 11.2.

 

(b)                                 The arbitration shall be conducted by an arbitral tribunal of three (3) arbitrators.

 

(c)                                  The arbitral award shall be final and binding upon all Parties.

 

(d)                                 The seat of arbitration shall be in Hong Kong.

 

(e)                                  The language of arbitration shall be English.

 

(f)                                   The governing law of this arbitration clause shall be the Laws of Hong Kong.

 

(g)                                  The Parties agree that any award rendered by the arbitral tribunal may be enforced by any court having jurisdiction over the Parties or over the Parties’ assets wherever the same may be located.

 

(h)                                 All fees, costs and expenses (including attorney’s fees and expenses) incurred by any party in connection with the arbitration shall be borne by the losing party.

 

(i)                                     To the extent that any Party has or hereafter may acquire any immunity (sovereign or otherwise) from any Proceeding, from any jurisdiction or any court or from set-off or any legal process (whether service or notice, attachment prior to judgement, execution of judgement or otherwise) with respect to itself or any of its assets, whether or not held for its own account, such Party hereby irrevocably and unconditionally waives and agrees not to plead or claim such immunity in any disputes arising out of or relating to this Agreement.

 

(j)                                    Nothing in this Clause 11.2 shall be construed as preventing any Party from seeking an injunction, temporary restraining order or other equitable relief in any court of competent jurisdiction pursuant to Clause 11.3 (Specific Performance) pending final determination of the dispute by the arbitral tribunal.

 

11.3                        Specific Performance

 

Each Party acknowledges that money damages are not an adequate remedy in the event that any of the covenants or agreements in this Agreement is not performed in accordance with its terms. It is therefore agreed that in addition to and without limitation to any other remedy or right it may have, the non-breaching Party will have the right to seek (without the requirement to post bond) an interim injunction, temporary restraining order or other equitable relief in any court of competent jurisdiction enjoining any such breach and enforcing specifically the terms and provisions of this Agreement pending final determination of the dispute by the arbitral tribunal.

 

11.4                        Entire Agreement

 

This Agreement, the other Transaction Documents and the schedules and exhibits to such documents, which are hereby expressly incorporated in this Agreement by this reference, constitute the entire understanding and agreement between all the Parties

 

49

 

with respect to the subject matter of such documents and supersede all prior agreements, understandings, representatives and warranties, whether written or oral, among all the Parties with respect to the subject matter of this Agreement; provided, that nothing in this Agreement shall be deemed to terminate or supersede the provisions of any confidentiality and nondisclosure agreements (relating to the Transaction Documents) executed by any Investor or any of its Affiliates prior to the date of this Agreement.

 

11.5                        Successors and Assigns

 

(a)                                 Except as otherwise expressly provided in this Agreement, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the Parties whose rights or obligations under this Agreement are affected by such amendments.

 

(b)                                 SoftBank may assign its rights and obligations under this Agreement at any time, without the consent of any other Party, to any Person in which either SoftBank Vision Fund L.P. or SoftBank Group Corp. directly or indirectly holds 100% of the voting shares; provided that written notice containing reasonable details of such assignment (including the identity of the assignee), is given by SoftBank to the Company prior to such assignment.

 

(c)                                  ***† may assign its rights and obligations under this Agreement at any time, without the consent of any other Party, to any investment fund or limited partnership entity which is established, managed or advised by ***† or any Person directly or indirectly wholly-owned by any such investment fund or limited partnership entity; provided that written notice containing reasonable details of such assignment (including the identity of the assignee) is given by ***† to the Company prior to such assignment.

 

(d)                                 This Agreement and the rights and obligations under this Agreement, as between the Company and each Investor (other than SoftBank and ***†), may not be assigned by any Party without the prior written consent of the Company (in the case of an assignment by such Investor) or the prior written consent of such Investor (in the case of an assignment by the Company), provided that an Investor may assign its rights and obligations under this Agreement to any transferee of such Investor’s Investor Subscription Shares in connection with a transfer permitted under, and conducted in accordance with, the terms of the Shareholders Agreement.

 

(e)                                  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the Parties or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

11.6                        No Third Party Beneficiaries; No Partnership

 

(a)                                 A Person who is not a Party to this Agreement shall not have any right under, nor shall any such Person be entitled to enforce any provision of, this Agreement, provided, however, that:

 

†                           Confidential treatment requested.

 

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(i)                                     accounting, financial and legal advisors and other representatives acting on behalf of each Investor, and advisors to the foregoing, are expressly made third party beneficiaries to this Agreement for the purposes of Clause 4.24 (No Other Representations or Warranties);

 

(ii)                                  accounting, financial and legal advisors and other representatives acting on behalf of the Company, and advisors to the foregoing, are expressly made third party beneficiaries to this Agreement for the purposes of Clause 5.16 (No Other Representations or Warranties); and

 

(iii)                               the Affiliates and the directors, officers and employees of each Investor and its Affiliates, are expressly made third party beneficiaries to this Agreement for the purpose of Clause 8 (Indemnification).

 

(b)                                 Nothing in this Agreement shall be deemed to constitute a partnership among any of the Parties.

 

11.7                        Notices

 

(a)                                 Except as may be otherwise provided in this Agreement, all notices, requests, waivers and other communications made pursuant to this Agreement shall be in writing to the number or address set forth in Schedule 6 (Address for Notices) and shall be conclusively deemed to have been duly given:

 

(i)                                     when hand-delivered to the other Parties, upon delivery;

 

(ii)                                  when sent by facsimile or electronic mail at the number or address upon receipt of confirmation of error-free transmission or, in the case of electronic mail, upon such mail being sent unless the sending Party subsequently learns that such electronic mail was not successfully delivered;

 

(iii)                               seven (7) Business Days after deposit in the mail as air mail or certified mail, receipt requested, postage prepaid; or

 

(iv)                              three (3) Business Days after deposit with an overnight delivery service, postage prepaid with next-business-day delivery guaranteed, provided that the sending Party receives a confirmation of delivery from the delivery service provider.

 

(b)                                 A Party may change or supplement the addresses given above, or designate additional addresses, for the purposes of this Clause 11.7, by giving the other Parties written notice of the new address in the manner set forth above.

 

11.8                        Amendments; Waivers

 

Any term of this Agreement may be amended only with the written consent of each Party. Any term of this Agreement may be waived only with the written consent of the Party against whom such waiver is effective.

 

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11.9                        Delays or Omissions

 

(a)                                 No delay or omission to exercise any right, power or remedy accruing to any Party, upon any breach or default of any other Party under this Agreement, shall impair any such right, power or remedy of such Party, nor shall it be construed to be a waiver of any such breach or default, or of an acquiescence of such breach or default, or of any similar breach or default subsequently occurring; nor shall it be construed to be any waiver of any other breach or default whenever occurring.

 

(b)                                 Any waiver, permit, consent or approval of any kind or character on the part of any Party of any breach or default under this Agreement or any waiver on the part of any Party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing.

 

(c)                                  All remedies, either under this Agreement or by Law or otherwise afforded to any Party to this Agreement, shall be cumulative and not alternative.

 

11.10                 Counterparts

 

This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. Facsimile and e-mailed copies of signatures in portable document format (PDF) shall be deemed to be originals for the purposes of the effectiveness of this Agreement.

 

11.11                 Severability

 

If any provision of this Agreement is found to be invalid or unenforceable, then such provision shall be construed, to the extent feasible, so as to render the provision enforceable and to provide for the consummation of the transactions contemplated hereby on substantially the same terms as originally set forth in this Agreement, and if no feasible interpretation would save such provision, it shall be severed from the remainder of this Agreement, which shall remain in full force and effect unless the severed provision is essential to the rights or benefits intended by the Parties. In such event, the Parties shall use their best efforts to negotiate, in good faith, a substitute, valid and enforceable provision or agreement which most nearly reflects the Parties’ intent in entering into this Agreement.

 

11.12                 Expenses

 

Each Party will bear its own Tax, legal, accounting and other costs and expenses incurred by such Party in connection with the negotiation, execution and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated by such documents.

 

11.13                 Disclosure Schedule

 

The mere inclusion of an item in the Disclosure Schedule or the Investor Disclosure Letter as an exception to a representation, warranty or covenant shall not be deemed an acknowledgement that such matter or item is required to be disclosed in such Disclosure Schedule or Investor Disclosure Letter or is material to a representation or warranty set forth in this Agreement, and shall not be an admission by any Party that

 

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such item represents a material exception or material fact, event or circumstance or that such item, along or together with any other item, has had or would reasonably be expected to have a Material Adverse Effect.

 

11.14                 Termination of this Agreement

 

(a)                                 Right to Terminate Prior to the Closing. This Agreement may be terminated as between the Company on the one hand and any Investor on the other hand, at any time prior to the Closing of such Investor:

 

(i)                                     by the mutual written consent of the Company and such Investor; or

 

(ii)                                  by either the Company or such Investor if the Closing shall not have occurred by 5:00 p.m. on the Long Stop Date; provided, however, that neither the Company nor such Investor will be entitled to terminate this Agreement pursuant to this Clause 11.14(a)(ii) if the Company’s (in case of termination by the Company) or such Investor’s (in case of termination by the Investor) action or inaction has prevented the consummation of the Closing at or before such time.

 

(b)                                 Right to terminate prior to each Tranching Investor Funding. The provisions of this Agreement with respect to each Tranching Investor Funding may be terminated as between the Company on the one hand, and any Tranching Investor on the other hand, at any time prior to the completion of such Tranching Investor Funding:

 

(i)                                     by the mutual written consent of the Company and such Tranching Investor; or

 

(ii)                                  by the Company in accordance with Clause 3.7 (Failure by a Tranching Investor to comply with its Tranching Investor Funding obligations).

 

(c)                                  Any termination of this Agreement as between the Company on the one hand and any Investor on the other hand shall not impact the continuing validity of this Agreement being in full force and effect as between the Company on the one hand and any other Investor on the other hand. Upon any termination of this Agreement under Clauses 11.14(a) and 11.14(b) above, this Agreement shall immediately from the date of such termination become wholly void and of no effect with respect to the applicable Parties and the applicable Parties shall be released from all future obligations under this Agreement, provided that:

 

(i)                                     if this Agreement is terminated in accordance with Clause 11.14(b) above:

 

(A)                               only the provisions relating to the relevant Tranching Investor Funding and each subsequent Tranching Investor Funding shall become wholly void and of no effect with respect to the Company and such Tranching Investor, and the remaining provisions of this Agreement shall remain effective and enforceable; and

 

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(B)                               all unpaid Series A Preferred Shares of such Tranching Investor shall immediately be forfeited in accordance with the terms of the Articles;

 

(ii)                                  nothing in this Agreement shall relieve any such Party from liability for any breach of this Agreement occurring prior to such termination or prevent any such Party from exercising any accrued rights or entitlements under this Agreement; and

 

(iii)                               the provisions of Clause 9 (No Use of Name), Clause 10 (Confidentiality and Non-Disclosure) and this Clause 11 shall survive such termination of this Agreement.

 

** REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK **

 

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IN WITNESS WHEREOF, the Parties have caused their respective duly authorized representatives to execute this Agreement as of the date first above written.

 

[Signature pages to follow]

 

[Project Ruby — Signature Page to Share Subscription Agreement]

 

 

For and on behalf of

Local Services Holding Limited

 

	
By:
    	
/s/ Guangjie Hopton   Yang
    	
 
    
	
Name:
    	
Guangjie Hopton Yang
    	
 
    
	
Title:
    	
Authorized Signatory
    	
 
    

 

[Project Ruby — Signature Page to Share Subscription Agreement]

 

 

For and on behalf of

Rajax Holding

 

	
By:
    	
/s/ Guangjie Hopton   Yang
    	
 
    
	
Name:
    	
Guangjie Hopton Yang
    	
 
    
	
Title:
    	
Authorized Signatory
    	
 
    

 

[Project Ruby — Signature Page to Share Subscription Agreement]

 

 

For and on behalf of

Koubei Holding Limited

 

	
By:
    	
/s/ Joseph Chung Tsai
    	
 
    
	
Name:
    	
Joseph Chung Tsai
    	
 
    
	
Title:
    	
Director
    	
 
    

 

[Project Ruby — Signature Page to Share Subscription Agreement]

 

 

For and on behalf of

Ali KB Investment Holding Limited

 

	
By:
    	
/s/ Guangjie Hopton   Yang
    	
 
    
	
Name:
    	
Guangjie Hopton Yang
    	
 
    
	
Title:
    	
Authorized Signatory
    	
 
    

 

[Project Ruby — Signature Page to Share Subscription Agreement]

 

 

For and on behalf of

SVF Ruby (Singapore) Pte. Ltd.

 

	
By:
    	
/s/ Mariko Tran
    	
 
    
	
Name:
    	
Mariko Tran
    	
 
    
	
Title:
    	
Alternate Director to   Ayako Adachi
    	
 
    

 

[Project Ruby — Signature Page to Share Subscription Agreement]

 

 

***† 

 

[Project Ruby — Signature Page to Share Subscription Agreement]

 

†         Confidential treatment requested.

 

 

***†

 

[Project Ruby — Signature Page to Share Subscription Agreement]

 

†         Confidential treatment requested.

 

 

***†

 

[Project Ruby — Signature Page to Share Subscription Agreement]

 

†         Confidential treatment requested.

 

 

***†

 

[Project Ruby — Signature Page to Share Subscription Agreement]

 

†         Confidential treatment requested.

 

 

Schedule 1

Investors and Subscription Shares

 

65

 

Schedule 2

Company Bank Account

 

66

 

Schedule 3

Disclosure Schedule

 

67

 

Schedule 4

Capitalization immediately prior to first Closing with respect to the Investors

 

68

 

Schedule 5

Other Covenants

 

69

 

Schedule 6

Address for Notices

 

70

 

Schedule 7

Investor Affiliates

 

71

 

Exhibit 1

Form of Shareholders Agreement

 

72

 

Exhibit 2

Form of Articles

 

73

 

Exhibit 3

Form of Cayman Legal Opinion

 

74

 

Exhibit 4

Form of PRC Legal Opinion

 

75

 

Exhibit 5

Form of Investor Disclosure Letter

 

76

 

Exhibit 6

Form of Reorganization Agreement

 

77

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