Document:

Exhibit 10.4

 

MASTER TRANSACTION AGREEMENT

 

Between

 

AMTD GROUP COMPANY LIMITED

 

and

 

AMTD INTERNATIONAL INC.

 

Dated as of June 20, 2019

 

 

TABLE OF CONTENTS

 

	
ARTICLE I   DEFINITIONS
    	
1
    
	
 
    	
 
    
	
Section 1.1
    	
Defined Terms
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II   DOCUMENTS AND ITEMS TO BE DELIVERED PRIOR TO F-1 FILING
    	
5
    
	
 
    	
 
    
	
Section 2.1
    	
Documents to be   delivered by AMTD Parent
    	
5
    
	
Section 2.2
    	
Documents to be   delivered by AMTD International
    	
6
    
	
 
    	
 
    	
 
    
	
ARTICLE III THE   IPO AND ACTIONS PENDING THE IPO
    	
6
    
	
 
    	
 
    
	
Section 3.1
    	
Transactions prior to   the IPO
    	
6
    
	
Section 3.2
    	
Cooperation
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE IV   COVENANTS AND OTHER MATTERS
    	
7
    
	
 
    	
 
    
	
Section 4.1
    	
Other Agreements and   Instruments
    	
7
    
	
Section 4.2
    	
Further Instruments
    	
7
    
	
Section 4.3
    	
Auditors and Audits;   Financial Statements; Accounting Matters
    	
8
    
	
Section 4.4
    	
Investment   Opportunities
    	
10
    
	
Section 4.5
    	
Confidentiality
    	
11
    
	
Section 4.6
    	
Privileged Matters
    	
13
    
	
Section 4.7
    	
Future Litigation and   Other Proceedings
    	
14
    
	
Section 4.8
    	
Mail and other   Communications
    	
15
    
	
Section 4.9
    	
Other Inter-Company   Services Agreements
    	
15
    
	
Section 4.10
    	
Payment of Expenses
    	
15
    
	
 
    	
 
    	
 
    
	
ARTICLE V MUTUAL   RELEASES; INDEMNIFICATION
    	
16
    
	
 
    	
 
    
	
Section 5.1
    	
Release of Claims
    	
16
    
	
Section 5.2
    	
Indemnification by AMTD   International
    	
16
    
	
Section 5.3
    	
Indemnification by AMTD   Parent
    	
17
    
	
Section 5.4
    	
Procedures for Defense,   Settlement, and Indemnification of the Third Party Claims
    	
18
    
	
Section 5.5
    	
Additional Matters
    	
19
    
	
Section 5.6
    	
Survival of Indemnities
    	
19
    
	
 
    	
 
    	
 
    
	
ARTICLE VI DISPUTE   RESOLUTION
    	
19
    
	
 
    	
 
    
	
Section 6.1
    	
Dispute Resolution
    	
19
    
	
 
    	
 
    	
 
    
	
ARTICLE VII   MISCELLANEOUS
    	
20
    
	
 
    	
 
    
	
Section 7.1
    	
Consent of AMTD Parent
    	
20
    
	
Section 7.2
    	
Limitation of Liability
    	
20
    
	
Section 7.3
    	
Entire Agreement
    	
21
    
	
Section 7.4
    	
Governing Law and   Jurisdiction
    	
21
    
	
Section 7.5
    	
Termination; Amendment
    	
21
    

 

i

 

	
Section 7.6
    	
Notices
    	
21
    
	
Section 7.7
    	
Counterparts
    	
22
    
	
Section 7.8
    	
Binding Effect;   Assignment
    	
22
    
	
Section 7.9
    	
Severability
    	
22
    
	
Section 7.10
    	
Failure or Indulgence   not Waiver; Remedies Cumulative
    	
22
    
	
Section 7.11
    	
Authority
    	
23
    
	
Section 7.12
    	
Interpretation
    	
23
    
	
Section 7.13
    	
Conflicting Agreements
    	
23
    
	
Section 7.14
    	
Third Party   Beneficiaries
    	
23
    

 

ii

 

MASTER TRANSACTION AGREEMENT

 

This Master Transaction Agreement is dated as of June 20, 2019, by and between AMTD Group Company Limited, an exempted company with limited liability incorporated under the laws of the British Virgin Islands (“AMTD Parent”), and AMTD International Inc., an exempted company with limited liability incorporated under the laws of the Cayman Islands (“AMTD International”) (each of AMTD Parent and AMTD International a “Party” and, together, the “Parties”).

 

R E C I T A L S

 

WHEREAS, as of the date hereof, AMTD Parent owns 200,000,001 issued and outstanding Class B Ordinary Shares of AMTD International, representing 95.28% of the total issued and outstanding Ordinary Shares of AMTD International;

 

WHEREAS, the Parties currently contemplate that AMTD International will seek an initial public offering (the “IPO”) pursuant to a registration statement on Form F-1 confidentially submitted for review and comment by the SEC under the Securities Act (as so submitted and as amended from time to time prior to the Public Filing Date, the “Draft IPO Registration Statement”), to be filed publicly with the SEC via its EDGAR system (the date of such public filing, the “Public Filing Date”) following the substantial completion of such review and comment and as financial market conditions permit (as so filed, and as amended thereafter from time to time, the “IPO Registration Statement”);

 

WHEREAS, AMTD Parent has been engaged in the AMTD International Business through AMTD International and AMTD International’s subsidiaries, as more fully described in the IPO Registration Statement;

 

WHEREAS, prior to the date hereof, all of the then existing assets and liabilities in connection with the AMTD International Business have already been transferred to or assumed by AMTD International and its subsidiaries;

 

WHEREAS, the Parties intend in this Agreement, including the exhibits and schedules hereto, to set forth and memorialize the principal arrangements between AMTD Parent and AMTD International regarding the relationship of the Parties from and after the filing of the IPO Registration Statement and the consummation of the IPO; and

 

NOW, THEREFORE, in consideration of the mutual agreements, covenants, and provisions contained in this Agreement, the Parties, intending to be legally bound, agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1                                    Defined Terms. The following capitalized terms have the meanings given to them in this Section 1.1:

 

“Action” means any demand, action, suit, countersuit, claim, counterclaim, arbitration, inquiry, proceeding or investigation by or before any Governmental Authority or any arbitration or mediation tribunal.

 

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“ADSs” has the meaning set forth in Section 3.1(c) of this Agreement.

 

“Agreement” means this Master Transaction Agreement, together with the schedules and exhibits hereto, as the same may be amended from time to time in accordance with the provisions hereof.

 

“AMTD Group” means AMTD Parent and its subsidiaries, other than AMTD International and its subsidiaries.

 

“AMTD International” has the meaning set forth in the preamble to this Agreement.

 

“AMTD International Balance Sheet” means AMTD International’s unaudited consolidated interim statement of financial position as of the end of the most recently completed fiscal quarter prior to the Public Filing Date.

 

“AMTD International Business” means the capital markets and advisory, asset management, and strategic investment businesses as of the date hereof by the AMTD International and its subsidiaries, as more completely described in the IPO Registration Statement.

 

“AMTD International Indemnitees” means AMTD International and its subsidiaries and each of their respective directors, officers, and employees.

 

“AMTD International Liabilities” means (without duplication) the following Liabilities:

 

(i)                                     all Liabilities reflected on the AMTD International Balance Sheet;

 

(ii)                                  all Liabilities of AMTD Parent or its subsidiaries that arise after the date of the AMTD International Balance Sheet that would be reflected on a consolidated statement of financial position of AMTD International as of the date of such Liabilities, if such consolidated statement of financial position was prepared using the same principles and accounting policies under which the AMTD International Balance Sheet was prepared;

 

(iii)                               all Liabilities that should have been reflected on the AMTD International Balance Sheet but are not reflected on the AMTD International Balance Sheet due to mistake or unintentional omission;

 

(iv)                              all Liabilities, whether arising before, on, or after the Public Filing Date, that relate to, arise or result from: (1) the operation of the AMTD International Business or (2) the operation of any business conducted by AMTD International and its subsidiaries at any time after the Public Filing Date; and

 

(v)                                 Liabilities of AMTD International and its subsidiaries under this Agreement or any of the Inter-Company Agreements.

 

“AMTD International’s Auditors” has the meaning set forth in Section 4.3(b)(i) of this Agreement.

 

“AMTD Parent” has the meaning set forth in the preamble to this Agreement.

 

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“AMTD Parent Business” means any business that is conducted by AMTD Parent and its subsidiaries, other than the AMTD International Business.

 

“AMTD Parent Indemnitees” means AMTD Parent and its subsidiaries (excluding AMTD International and its subsidiaries) and each of their respective directors, officers, and employees.

 

“AMTD Parent Liabilities” means (without duplication) the following Liabilities:

 

(i)                                     all Liabilities, whether arising before, on, or after the Public Filing Date, that relate to, arise, or result from the operation of the AMTD Parent Business, other than AMTD International Liabilities; and

 

(ii)                                  Liabilities of AMTD Parent and its subsidiaries under this Agreement or any of the Inter-Company Agreements.

 

“AMTD Parent’s Auditors” has the meaning set forth in Section 4.3(b)(i) of this Agreement.

 

“Class A Ordinary Shares” means the class A ordinary shares of AMTD International, par value US$0.0001 per share.

 

“Class B Ordinary Shares” means the class B ordinary shares of AMTD International, par value US$0.0001 per share.

 

“Confidential Business Information” has the meaning set forth in Section 4.6(a)(iii) of this Agreement.

 

“Confidential Information” has the meaning set forth in Section 4.6(a)(i) of this Agreement.

 

“Confidential Technical Information” has the meaning set forth in Section 4.6(a)(ii) of this Agreement.

 

“Contract” means any contract, agreement, lease, license, sales order, purchase order, instrument, or other commitment that is binding on any Person or any part of its property under applicable law.

 

“Control Ending Date” means the first date upon which members of the AMTD Group no longer collectively own at least twenty percent (20%) of the voting power of the then outstanding securities of AMTD International.

 

“Direct Costs” has the meaning set forth in Section 4.10 of this Agreement.

 

“Dispute” has the meaning set forth in Section 6.1(a) of this Agreement.

 

“Dispute Resolution Commencement Date” has the meaning set forth in Section 6.1(a) of this Agreement.

 

“Draft IPO Registration Statement” has the meaning set forth in the recitals to this Agreement.

 

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

 

“Governmental Authority” shall mean any national, state, or local, foreign or international court, government, department, commission, board, bureau, agency, official, or other regulatory, administrative, or governmental authority.

 

“Indemnifying Party” means any party which may be obligated to provide indemnification to an Indemnitee pursuant to Section 5.2 or Section 5.3 hereof or any other section of this Agreement or any Inter-Company Agreement.

 

“Indemnitee” means any party which may be entitled to indemnification from an Indemnifying Party pursuant to Article V hereof or any other section of this Agreement or any Inter-Company Agreement.

 

“Indirect Costs” has the meaning set forth in Section 4.10 of this Agreement.

 

“Information” means information, whether or not patentable or copyrightable, in written, oral, electronic, or other tangible or intangible forms, stored in any medium, including studies, reports, records, books, contracts, instruments, surveys, discoveries, ideas, concepts, know-how, techniques, designs, specifications, drawings, blueprints, diagrams, models, prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes, computer programs or other software, marketing plans, customer names, communications by or to attorneys (including attorney-client privileged communications), memos and other materials prepared by attorneys or under their direction (including attorney work product), and other technical, financial, employee, or business information or data.

 

“Inter-Company Agreements” means the Transitional Services Agreement and Non-Competition Agreement.

 

“Investment Opportunity Referral Procedures” has the meaning set forth in Section 4.4 of this Agreement.

 

“IPO” has the meaning set forth in the recitals to this Agreement.

 

“IPO Registration Statement” has the meaning set forth in the recitals to this Agreement.

 

“Liabilities” means all debts, liabilities, guarantees, assurances, commitments, and obligations, whether fixed, contingent, or absolute, asserted or unasserted, matured or unmatured, liquidated or unliquidated, accrued or not accrued, known or unknown, due or to become due, whenever or however arising (including, without limitation, whether arising out of any Contract or tort based on negligence or strict liability) and whether or not the same would be required by the International Financial Reporting Standards issued by the International Accounting Standard Board as in effect from time to time to be reflected in financial statements or disclosed in the notes thereto.

 

“Loss” and “Losses” mean any and all damages, losses, deficiencies, Liabilities, obligations, penalties, judgments, settlements, claims, payments, fines, interest, costs, and expenses (including, without limitation, the costs and expenses of any and all Actions and demands, assessments, judgments, settlements, and compromises relating thereto and the reasonable costs and expenses of attorneys’, accountants’, consultants’ and other  professionals’ fees and expenses incurred in the investigation or defense thereof or the enforcement of rights hereunder), but excluding punitive damages (other than punitive damages awarded to any third party against an indemnified party).

 

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“Non-Competition Agreement” has the meaning set forth in Section 2.1 of this Agreement.

 

“Ordinary Shares” means the Class A Ordinary Shares and the Class B Ordinary Shares.

 

“Party” or “Parties” has the meaning set forth in the preamble of this Agreement.

 

“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, or a governmental entity or any department, agency, or political subdivision thereof.

 

“Privileged Information” has the meaning set forth in Section 4.7(a) of this Agreement.

 

“Privileges” has the meaning set forth in Section 4.7(a) of this Agreement.

 

“Public Filing Date” has the meaning set forth in the recitals to this Agreement.

 

“Rule 10A-3(b)(2)” means Rule 10A-3(b)(2) (or any successor rule to similar effect) promulgated under the Exchange Act.

 

“SEC” means the U.S. Securities and Exchange Commission.

 

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

 

“Specified Period” has the meaning set forth in Section 4.4(a) of this Agreement.

 

“Third Party Claim” has the meaning set forth in Section 5.4(a) of this Agreement.

 

“Transitional Services Agreement” has the meaning set forth in Section 2.1 of this Agreement.

 

“Underwriters” has the meaning set forth in Section 3.1(a) of this Agreement.

 

“Underwriting Agreement” has the meaning set forth in Section 3.1(a) of this Agreement.

 

ARTICLE II

 

DOCUMENTS AND ITEMS TO BE DELIVERED PRIOR TO F-1 FILING

 

Section 2.1                                    Documents to be delivered by AMTD Parent. AMTD Parent has delivered and its subsidiaries have delivered, as appropriate, or AMTD Parent will deliver, or will cause its subsidiaries to deliver, as appropriate, prior to the Public Filing Date, to AMTD International and/or its subsidiaries, as appropriate: (a) a duly executed transitional services agreement, substantially in the form attached to the Draft IPO Registration Statement as an exhibit, with such changes, if any, to such form as may be agreed to by the Parties prior to such execution (the “Transitional Services Agreement”); (b) duly executed non-competition agreement, substantially in the form attached to the Draft IPO Registration Statement as an exhibit, with such changes, if any, to such form as may be agreed to by the Parties prior to such execution (the “Non-Competition Agreement”); and (c) such other agreements, documents, or instruments as the Parties may agree are necessary or desirable in order to achieve the purposes hereof. For purposes of this Agreement, AMTD International and its subsidiaries will not be considered subsidiaries of AMTD Parent.

 

5

 

Section 2.2                                    Documents to be delivered by AMTD International. AMTD International has delivered and its subsidiaries have delivered, as appropriate, or AMTD International will deliver, or will cause its subsidiaries to deliver, as appropriate, prior to the Public Filing Date, on the closing date of the IPO, to AMTD Parent or its subsidiaries, as appropriate: (a) in each case where AMTD International or any of its subsidiaries is a party to any agreement or instrument referred to in Section 2.1, a duly executed counterpart of such agreement or instrument; and (b) such other agreements, documents or instruments as the Parties may agree are necessary or desirable in order to achieve the purposes hereof.

 

ARTICLE III

 

THE IPO AND ACTIONS PENDING THE IPO

 

Section 3.1                                    Transactions prior to the IPO. Subject to the occurrence of the events described in this Article III, the Parties intend to consummate the IPO and to take, or cause to be taken, the actions specified in this Section 3.1.

 

(a)                                 Registration Statement. AMTD International has submitted or plans to submit on a confidential basis for review by the SEC the Draft IPO Registration Statement, and intends to submit such amendments or supplements thereto as may be requested by the SEC staff in connection with such review and agreed to by AMTD International, and subsequently to file with the SEC the IPO Registration Statement and make such amendments and supplements thereto as may be necessary or desirable in order to cause the same to comply with the Securities Act and other applicable law, to become and remain effective under the Securities Act, or as may be requested by the representatives of the underwriters for the IPO (the “Underwriters”), including, without limitation, filing such amendments or supplements to the IPO Registration Statement as may be required by the underwriting agreement to be entered into among AMTD International and the Underwriters (the “Underwriting Agreement”) following the effectiveness of the IPO Registration Statement under the Securities Act.

 

(b)                                 Underwriting Agreement. Following the effectiveness of the IPO Registration Statement, AMTD International will enter into the Underwriting Agreement, which shall in form and substance be satisfactory to AMTD International, as determined by its board of directors or authorized designees, as appropriate, and AMTD International shall comply with its obligations thereunder.

 

(c)                                  Nasdaq Global Market or NYSE Listing. AMTD International plans to prepare, file, and have approved an application for listing on the Nasdaq Global Market or the New York Stock Exchange of the American depositary shares (the “ADSs”), representing Class A Ordinary Shares, to be offered and sold in the IPO.

 

6

 

Section 3.2                                    Cooperation. AMTD Parent and AMTD International shall each consult with, and cooperate in all respects with, the other in connection with the marketing, including any roadshow presentations, and pricing of the ADSs and shall take any and all actions as may be reasonably necessary or desirable to consummate the IPO as contemplated by the IPO Registration Statement and the Underwriting Agreement.

 

ARTICLE IV

 

COVENANTS AND OTHER MATTERS

 

Section 4.1                                    Other Agreements and Instruments. Each of the Parties agrees to execute or cause to be executed by the appropriate parties and deliver, as appropriate, such other agreements, instruments, and other documents as may be necessary or desirable in order to effect the purposes of this Agreement and the Inter-Company Agreements.

 

Section 4.2                                    Further Instruments.

 

(a)                                 To the extent it has not been done prior to the date hereof, AMTD Parent will execute and deliver, and will cause its subsidiaries to execute and deliver, to AMTD International and any of its subsidiaries, as the case may be, such instruments of transfer, conveyance, assignment, substitution, and confirmation, and will take such action as may be reasonably necessary or desirable in order to transfer, convey, and assign to AMTD International and any of its subsidiaries and confirm AMTD International’s and any of its subsidiaries’ title to all assets, rights, interests, and other things of value used in or necessary for the conduct and operation of the AMTD International Business on or prior to the Public Filing Date or to be transferred or licensed to AMTD International and any of its subsidiaries pursuant to this Agreement or any document referred to herein, to put AMTD International and its subsidiaries in actual possession and operating control thereof and to permit AMTD International and its subsidiaries to exercise all rights with respect thereto (including, without limitation, rights under Contracts and other arrangements as to which the consent of any third party to the transfer thereof have not previously been obtained) relating to the AMTD International Business; provided, however, that in the absence of such execution and delivery by AMTD Parent and any of its subsidiaries, such execution and delivery shall be deemed for all purposes to have occurred subject only to AMTD International’s obligation to pay to AMTD Parent or its applicable subsidiary an amount equal to the book value thereof to the extent not previously so paid.

 

(b)                                 AMTD Parent will execute and deliver, and will cause its appropriate subsidiaries to execute and deliver, to AMTD International and any of its subsidiaries, as the case may be, all instruments, assumptions, novations, undertakings, substitutions, or other documents and take such other action as may be reasonably necessary or desirable in order to have AMTD Parent and any of its subsidiaries, as the case may be, fully and unconditionally assume and discharge the AMTD Parent Liabilities; provided, however, that in the absence of such execution and delivery by AMTD Parent and any of such appropriate subsidiaries, such execution and delivery shall be deemed for all purposes to have occurred.

 

(c)                                  AMTD International will, and will cause its appropriate subsidiaries to, execute and deliver to AMTD Parent and its subsidiaries all instruments, assumptions, novations, undertakings, substitutions or other documents and take such other action as may be reasonably necessary or desirable in order to have AMTD International and any of its subsidiaries, as the case may be, fully and unconditionally assume and discharge the AMTD International Liabilities; provided, however, that in the absence of such execution and delivery by AMTD International and any such appropriate subsidiaries, such execution and delivery shall be deemed for all purposes to have occurred.

 

7

 

(d)                                 Except as hereinabove provided, neither AMTD Parent, AMTD International, nor their respective subsidiaries shall be obligated, in connection with the foregoing matters set forth in this Section, to expend money other than reasonable out-of-pocket expenses, attorneys’ fees, and recording or similar fees, unless reimbursed by the other relevant Party. Furthermore, each Party, at the request of the other Party hereto, shall execute and deliver such other instruments and do and perform such other acts and things as may be necessary or desirable for effecting completely the consummation of the transactions contemplated hereby.

 

Section 4.3                                    Auditors and Audits; Financial Statements; Accounting Matters. Each Party agrees that:

 

(a)                                 Internal Accounting Controls; Financial Information. After the Public Filing Date, each Party shall maintain in effect at its own cost and expense adequate systems and controls for its business to the extent necessary to enable the other Party to satisfy its reporting, tax return, accounting, audit, and other obligations, and each Party shall provide, or cause to be provided, to the other Party and its subsidiaries in such form as such requesting Party shall request, at no charge to the requesting Party, all financial and other data and information as the requesting Party determines necessary or advisable in order to prepare its financial statements and reports or filings with any Governmental Authority.

 

(b)                                 Selection of Auditors.

 

(i)                                     Until the first AMTD Parent fiscal year end occurring after the Control Ending Date, AMTD International shall use its reasonable best efforts to select the independent registered public accounting firm used by AMTD Parent (“AMTD Parent’s Auditors” and, for the avoidance of doubt, should AMTD Parent at any time change the independent registered public accounting firm serving as its auditors, “AMTD Parent’s Auditors” shall thereafter mean the new firm serving as AMTD Parent’s auditors) to serve as its auditors (“AMTD International’s Auditors”) for purposes of providing an opinion on its consolidated financial statements; provided, however, that AMTD International’s Auditors may be different from AMTD Parent’s Auditors if necessary to comply with applicable laws regarding auditor independence and qualifications (provided, however, that AMTD International shall not take any actions, and shall use its reasonable best efforts to cause its directors, officers, and employees not to take any actions, that could reasonably be expected to require AMTD International to engage auditors other than AMTD Parent’s Auditors). After the Public Filing Date, the foregoing shall not be construed so as to unlawfully limit any responsibility of the audit committee of AMTD International’s board of directors, pursuant to SEC Rule 10A-3(b)(2) and rules of the Nasdaq Global Market or the New York Stock Exchange, as applicable, to appoint, compensate, retain and oversee the work of the registered public accounting firm AMTD International engages.

 

(ii)                                  Until the first AMTD Parent fiscal year end occurring after the Control Ending Date, AMTD International shall provide to AMTD Parent as much prior notice as reasonably practical of any change in AMTD International’s Auditors for purposes of providing an opinion on its consolidated financial statements.

 

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(c)                                  Annual and Quarterly Financial Statements. Until the Control Ending Date, AMTD Parent shall provide to AMTD International on a timely basis all financial Information that AMTD International reasonably requires to meet its schedule for the preparation, printing, filing, and public dissemination of AMTD International’s annual and quarterly financial statements. Without limiting the generality of the foregoing, AMTD Parent will provide all required financial Information with respect to AMTD Parent and its subsidiaries to AMTD Parent’s Auditors in a sufficient and reasonable time and in sufficient detail to permit AMTD Parent’s Auditors to take all steps and perform all procedures necessary to provide sufficient assistance to AMTD International’s Auditors with respect to Information to be included or contained in AMTD International ‘s annual and quarterly financial statements.

 

(d)                                 Certifications and Attestations. To the extent necessary for the timely filing by AMTD International of annual and quarterly reports under the Exchange Act or in connection with any investigations of prior periods, AMTD Parent shall cause its appropriate officers and employees to provide to AMTD International on a timely basis and as reasonably requested by such Party (A) any certificates requested as support for the certifications and attestations required by Sections 302, 906, and 404 of the Sarbanes-Oxley Act of 2002 to be filed with such annual and quarterly reports, (B) any certificates or other Information which such appropriate officers and employees received as support for the certificates provided to AMTD International and (C) a reasonable opportunity to discuss with such appropriate officers and employees any issues reasonably related to the foregoing.

 

(e)                                  Identity of Personnel Performing the Annual Audit and Quarterly Reviews. AMTD Parent shall authorize AMTD Parent’s Auditors to make available to AMTD International’s Auditors both the personnel who performed or will perform the annual audits and quarterly reviews of AMTD Parent and work papers related to the annual audits and quarterly reviews of AMTD Parent, in all cases within a reasonable time prior to AMTD Parent’s Auditors’ opinion date, so that AMTD International’s Auditors are able to perform the procedures they consider necessary to take responsibility for the work of AMTD Parent’s Auditors as it relates to AMTD International’s Auditors’ report on AMTD International’s financial statements, all within sufficient time to enable AMTD International to meet its timetable for the printing, filing, and public dissemination of AMTD International’s annual and quarterly financial statements.

 

(f)                                   Access to Books and Records. AMTD Parent shall provide AMTD International’s internal auditors, counsel, and other designated representatives of AMTD International access during normal business hours to (i) the premises of AMTD Parent and its subsidiaries and all Information (and duplicating rights with respect thereto) within the knowledge, possession or control of AMTD Parent and its subsidiaries and (ii) the officers and employees of AMTD Parent and its subsidiaries, so that AMTD International may conduct reasonable audits relating to the financial statements provided by AMTD Parent pursuant hereto as well as to the internal accounting controls and operations of AMTD Parent and its subsidiaries.

 

(g)                                  Notice of Change in Accounting Principles. Until the Control Ending Date, and thereafter if a change in accounting principles by a Party would affect the historical financial statements of the other Party, no such Party shall make or adopt any significant changes in its accounting estimates or accounting principles from those in effect on the Public Filing Date without first consulting with the other Party, and if requested by the other Party, such other Party’s independent registered public accounting firm with respect thereto. AMTD Parent shall give AMTD International as much prior notice as reasonably practical of any proposed determination of, or any significant changes in, its accounting estimates or accounting principles from those in effect on the Public Filing Date. AMTD Parent will consult with AMTD International and, if requested by AMTD International, AMTD International’s independent registered public accounting firm with respect thereto. AMTD International shall give AMTD Parent as much prior notice as reasonably practical of any proposed determination of, or any significant changes in, its accounting estimates or accounting principles from those in effect on the Public Filing Date. AMTD International will consult with AMTD Parent and, if requested by AMTD Parent, AMTD Parent’s independent registered public accounting firm with respect thereto.

 

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(h)                                 Conflict With Third-Party Agreements. Nothing in this Section 4.3 shall require a Party to violate any agreement with any third party regarding the confidentiality of confidential and proprietary Information relating to that third party or its business; provided, however, that in the event that a Party is required under this Section 4.3 to disclose any such Information, such Party shall use its reasonable best efforts to seek to obtain such third party’s consent to the disclosure of such Information.

 

Section 4.4                                    Investment Opportunities. With respect to investment opportunities, AMTD Parent will, and will cause members of the AMTD Group to, strictly follow the procedures set forth in this Section 4.4 (the “Investment Opportunity Referral Procedures”).

 

(a)                                 Where an investment opportunity is presented to the investment committee or other equivalent body of AMTD Parent for consideration, AMTD Parent will, and will cause appropriate members of the AMTD Group to, promptly notify AMTD International in writing of such investment opportunity and specify a period for consideration of no less than one week (the “Specified Period”) and refrain from pursuing this investment opportunity unless permitted in accordance with this Section 4.4.

 

(i)                                     If AMTD International notifies AMTD Parent in writing of its interests to pursue this investment opportunity within the Specified Period, AMTD Parent and other members of the AMTD Group will, upon receipt of such notice, continue to refrain from pursuing this investment opportunity until, where applicable, AMTD International later notifies AMTD Parent again in writing of its decision to forego pursuing this investment opportunity, after which AMTD Parent and other members of the AMTD Group may pursue this investment opportunity for itself without further obligations to inform AMTD International.

 

(ii)                                  If AMTD International notifies AMTD Parent in writing that it does not intend to pursue this investment opportunity or AMTD International fails to indicate its interests to pursue this investment opportunity within the Specified Period, AMTD Parent and other members of the AMTD Group may, upon receipt of the written notice of AMTD International or upon expiration of the Specified Period, as applicable, pursue this investment opportunity for itself without further obligation to inform AMTD International.

 

(b)                                 In determining whether or not to pursue an investment opportunity, members of the investment committee of AMTD International that have overlapping duties as directors or officers in AMTD Parent shall abstain from participating in the investment decision-making and approval process.

 

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(c)                                  The rights and obligations created by this Section 4.4 shall not apply to any subsequent investments made by AMTD Parent or other members of the AMTD Group in its existing investee companies as of the date hereof.

 

Section 4.5                                    License of Intellectual Property. Both Parties acknowledge that AMTD Parent (on behalf of itself and other members of AMTD Group) grants AMTD International and its subsidiaries a perpetual, world-wide license to use, for free,  any and all intellectual property as set out in Schedule I attached hereto.

 

Section 4.6                                    Confidentiality. Each of the Parties shall hold and shall cause each of their respective subsidiaries to hold, and shall each cause their respective officers, employees, agents, consultants, and advisors and those of their respective subsidiaries to hold, in strict confidence and not to disclose or release without the prior written consent of the other Party, any and all Confidential Information concerning such other Party and its respective subsidiaries; provided, that each of the Parties may disclose, or may permit disclosure of, Confidential Information (i) to their respective subsidiaries, auditors, attorneys, financial advisors, bankers, and other appropriate consultants and advisors who have a need to know such information and, in each case, are informed of their obligation to hold such information confidential to the same extent as is applicable to the Parties hereto and in respect of whose failure to comply with such obligations, AMTD International or AMTD Parent, as the case may be, will be responsible, (ii) if the Parties or any of their respective subsidiaries are compelled to disclose any such Confidential Information by judicial or administrative process or (iii) if the Parties reasonably determine in good faith that such disclosure is required by other requirements of law. Notwithstanding the foregoing, in the event that any demand or request for disclosure of Confidential Information is made in connection with any judicial or administrative process, or a Party determines in good faith that disclosure is otherwise required by law, such Party shall promptly notify the other Party of the existence of such request, demand, or conclusion, and shall provide such other Party a reasonable opportunity to seek an appropriate protective order or other remedy, which the notifying Party will cooperate in obtaining. In the event that an appropriate protective order or other remedy is not obtained, the Party whose Confidential Information is required to be disclosed shall or shall cause the notifying Party to furnish, or cause to be furnished, only that portion of the Confidential Information that is required to be disclosed and shall use its reasonable best efforts to obtain reasonable assurances that confidential treatment will be accorded to such Information.

 

(a)                                 As used in this Section 4.6:

 

(i)                                     “Confidential Information” shall mean Confidential Business Information and Confidential Technical Information concerning one Party which, prior to, on or following the Public Filing Date, has been disclosed by such Party or its subsidiaries, that (1) is in written, recorded, graphical or other tangible form and is marked “Proprietary,” “Confidential,” or “Trade Secret,” or where it is evident from the nature and content of such Information that the disclosing Party considers it to be confidential, (2) is in oral form and identified by the disclosing Party as “Proprietary,” “Confidential,” or “Trade Secret” at the time of oral disclosure, including pursuant to the access provisions of Section 4.3 hereof or any other provision of this Agreement or where it is evident from the nature and content of such Information that the disclosing Party considers it to be confidential, or (3) in the case of such Information disclosed on or prior to the date hereof, either such Information is identified by the owning Party to the other relevant Party as Confidential Business Information or Confidential Technical Information, orally or in writing on or prior to the Public Filing Date, or it is evident from the nature and content of such Information that the disclosing Party considers it to be confidential, and includes any modifications or derivatives prepared by the receiving Party that contain or are based upon any Confidential Information obtained from the disclosing Party, including any analysis, reports, or summaries of the Confidential Information. Confidential Information may also include Information disclosed to a disclosing Party by third parties. Confidential Information shall not, however, include any information which (A) was publicly known and made generally available in the public domain prior to the time of disclosure by the disclosing Party; (B) becomes publicly known and made generally available after disclosure by the disclosing Party to the receiving Party through no action or inaction of the receiving Party; (C) is obtained by the receiving Party from a third party without a breach of such third party’s obligations of confidentiality; or (D) is on or after the Public Filing Date independently developed by the receiving Party without use of or reference to the disclosing Party’s Confidential Information.

 

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(ii)                                  “Confidential Technical Information” shall mean all proprietary scientific, engineering, mathematical or design information, data and material of the disclosing Party including, without limitation, (1) specifications, ideas, concepts, models, and strategies for products or services, (2) quality assurance policies, procedures and specifications, (3) source code and object code, (4) training materials and information, and (5) all other know-how, methodology, processes, procedures, techniques, and trade secrets related to product or service design, development, manufacture, implementation, use, support, and maintenance.

 

(iii)                               “Confidential Business Information” shall mean all proprietary information, data or material of the disclosing Party other than Confidential Technical Information, including, but not limited to (1) proprietary earnings reports and forecasts, (2) proprietary macro-economic reports and forecasts, (3) proprietary business plans, (4) proprietary general market evaluations and surveys, (5) proprietary financing and credit-related information, and (6) customer information.

 

(b)                                 Nothing in this Agreement shall restrict (i) the disclosing Party from using, disclosing, or disseminating its own Confidential Information in any way, or (ii) reassignment of the receiving Party’s employees. Moreover, nothing in the Agreement supersedes any restriction imposed by third parties on their Confidential Information, and there is no obligation on the disclosing Party to conform third party agreements to the terms of this Agreement except as expressly set forth therein.

 

(c)                                  Notwithstanding anything to the contrary set forth herein, (i) a Party and its subsidiaries shall be deemed to have satisfied their obligations hereunder with respect to Confidential Information if they exercise the same degree of care (but no less than a reasonable degree of care) as they take to preserve confidentiality for their own similar Information and (ii) confidentiality obligations provided for in any agreement between a Party or any of its subsidiaries and any employee of such Party or any of its subsidiaries shall remain in full force and effect.

 

(d)                                 Confidential Information of a Party and its subsidiaries in the possession of and used by the other Party as of the Public Filing Date may continue to be used by such Party in possession of the Confidential Information in and only in the operation of the AMTD Parent Business, in the case of AMTD Parent and its subsidiaries, or the AMTD International Business, in the case of AMTD International and its subsidiaries, and may be used only so long as the Confidential Information is maintained in confidence and not disclosed in violation of Section 4.4(b). Such continued right to use Confidential Information may not be transferred, including by merger, consolidation, reorganization, operation of law, or otherwise, to any third party unless such third party (i) purchases all or substantially all of the business or business line and assets in one transaction or in a series of related transactions for which or in which the relevant Confidential Information is used or employed and (ii) expressly agrees in writing to be bound by the provisions of this Section 4.6. In the event that such right to use is transferred in accordance with the preceding sentence, the transferring Party shall not disclose the source of the relevant Confidential Information.

 

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Section 4.7                                    Privileged Matters. The Parties agree that their respective rights and obligations to maintain, preserve, assert, or waive any or all privileges belonging to each such Party or its subsidiaries including but not limited to the attorney-client and work product privileges (collectively, “Privileges”), shall be governed by the provisions of this Section 4.7. With respect to Privileged Information (as defined below) of AMTD Parent, AMTD Parent shall have sole authority in perpetuity to determine whether to assert or waive any or all Privileges, and AMTD International shall take no action (nor permit any of its subsidiaries to take action) without the prior written consent of AMTD Parent that could result in any waiver of any Privilege that could be asserted by AMTD Parent or any of its subsidiaries under applicable law and this Agreement. With respect to Privileged Information of AMTD International, AMTD International shall have sole authority in perpetuity to determine whether to assert or waive any or all Privileges, and AMTD Parent shall take no action (nor permit any of its subsidiaries to take action) without the prior written consent of AMTD International that could result in any waiver of any Privilege that could be asserted by AMTD International or any of its subsidiaries under applicable law and this Agreement.

 

(a)                                 The rights and obligations created by this Section 4.7 shall apply to all Information as to which the Parties or their respective subsidiaries would be entitled to assert or has asserted a Privilege (“Privileged Information”). Privileged Information of AMTD Parent includes but is not limited to (i) any and all Information regarding the business of AMTD Parent and its subsidiaries (other than Information regarding the AMTD International Business), whether or not it is in the possession of AMTD International or any of its subsidiaries; (ii) all communications subject to a Privilege between counsel for AMTD Parent (including in-house counsel) and any individual who, at the time of the communication, was an employee of AMTD Parent, regardless of whether such employee is or becomes an employee of AMTD International or any of its subsidiaries; and (iii) all Information generated, received or arising after the Public Filing Date that refers or relates to Privileged Information of AMTD Parent generated, received or arising prior to the Public Filing Date. Privileged Information of AMTD International includes but is not limited to (x) any and all Information regarding the AMTD International Business, whether or not it is in the possession of AMTD Parent or any of its subsidiaries; (y) all communications subject to a Privilege occurring after the Public Filing Date between counsel for AMTD International (including in-house counsel and former in-house counsel who are or were employees of AMTD Parent) and any person who, at the time of the communication, was an employee of AMTD International, regardless of whether such employee was, is or becomes an employee of AMTD Parent or any of its subsidiaries; and (z) all Information generated, received or arising after the Public Filing Date that refers or relates to Privileged Information of AMTD International generated, received or arising prior to the Public Filing Date.

 

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(b)                                 Upon receipt by a Party or its subsidiaries of any subpoena, discovery, or other request from any third party that actually or arguably calls for the production or disclosure of Privileged Information of the other Party or its subsidiaries, or if a Party or any of its subsidiaries obtains knowledge that any of its current or former employees has received any subpoena, discovery, or other request from any third party that actually or arguably calls for the production or disclosure of Privileged Information of the other Party or its subsidiaries, such Party shall promptly notify that other Party of the existence of the request and shall provide that other Party a reasonable opportunity to review the Information and to assert any rights such other Party may have under this Section 4.7 or otherwise to prevent the production or disclosure of Privileged Information. AMTD Parent or its subsidiaries, or AMTD International or its subsidiaries, as the case may be, will not produce or disclose to any third party any of the other Party’s Privileged Information under this Section 4.7 unless (i) such other Party has provided its express written consent to such production or disclosure or (ii) a court of competent jurisdiction has entered an order not subject to interlocutory appeal or review finding that the Information is not entitled to protection from disclosure under any applicable privilege, doctrine or rule.

 

(c)                                  AMTD Parent’s transfer of books and records pertaining to the AMTD International Business and other Information pertaining to AMTD International, if any, AMTD Parent’s agreement to permit AMTD International to obtain Information existing prior to the Public Filing Date, AMTD International’s transfer of books and records and other Information pertaining to AMTD Parent, if any, and AMTD International’s agreement to permit AMTD Parent to obtain Information existing prior to the Public Filing Date are made in reliance on AMTD Parent’s and AMTD International’s respective agreements, as set forth in Section 4.6 and this Section 4.7, to maintain the confidentiality of such Information and to take the steps provided herein for the preservation of all Privileges that may belong to or be asserted by AMTD Parent, or AMTD International, as the case may be. The access to Information and individuals being granted pursuant to Section 4.3 and the disclosure to one Party of Privileged Information relating to the other Party’s businesses pursuant to this Agreement shall not be asserted by AMTD Parent or AMTD International to constitute, or otherwise be deemed, a waiver of any Privilege that has been or may be asserted under this Section 4.7 or otherwise. Nothing in this Agreement shall operate to reduce, minimize or condition the rights granted to, or the obligations imposed upon, AMTD Parent and AMTD International by this Section 4.7.

 

Section 4.8                                    Future Litigation and Other Proceedings. In the event that AMTD International (or any of its subsidiaries or any of its or their respective officers or directors) or AMTD Parent (or any of its subsidiaries or any of its or their respective officers or directors) at any time after the date hereof initiates or becomes subject to any litigation or other proceedings before any Governmental Authority or arbitration panel with respect to which the Parties have no prior agreements (as to indemnification or otherwise), the Party (and its subsidiaries and its and their respective officers and directors) that has not initiated and is not subject to such litigation or other proceedings shall comply, at the litigant Party’s expense, with any reasonable requests by the litigant Party for assistance in connection with such litigation or other proceedings (including by way of provision of Information and making available of employees as witnesses). In the event that AMTD International (or any of its subsidiaries or any of its or their respective officers or directors) and AMTD Parent (or any of its subsidiaries or any of its or their respective officers or directors), or any combination thereof, at any time after the date hereof initiate or become subject to any litigation or other proceedings before any Governmental Authority or arbitration panel with respect to which the litigant Parties have no prior agreements (as to indemnification or otherwise), each litigant Party (and its officers and directors) shall, at their own expense, coordinate their strategies and actions with respect to such litigation or other proceedings to the extent such coordination would not be detrimental to their respective interests and shall comply, at the expense of the requesting Party, with any reasonable requests of such Party for assistance in connection therewith (including by way of provision of information and making available of employees as witnesses).

 

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Section 4.9                                    Mail and other Communications. Each of AMTD Parent and AMTD International may receive mail, facsimiles, packages, and other communications properly belonging to the other. Accordingly, each Party authorizes each of the other Party to receive and open all mail, telegrams, packages, and other communications received by it and not unambiguously intended for the other Party or any of the other Party’ officers or directors, and to retain the same to the extent that they relate to the business of the receiving Party or, to the extent that they do not relate to the business of the receiving Party, the receiving Party shall promptly deliver such mail, telegrams, packages, or other communications, including, without limitation, notices of any liens or encumbrances on any asset transferred to AMTD International or its subsidiaries in connection with the separation from AMTD Parent, if any, (or, in case the same relate to both businesses, copies thereof) to the other Party as provided for in Section 7.6 hereof. The provisions of this Section 4.9 are not intended to, and shall not, be deemed to constitute (a) an authorization by either AMTD Parent or AMTD International to permit the other to accept service of process on its behalf and no Party is or shall be deemed to be the agent of the other Party for service of process purposes or (b) a waiver of any Privilege with respect to Privileged Information contained in such mail, telegrams, packages or other communications.

 

Section 4.10                             Other Inter-Company Services Agreements. To the extent not covered under the Inter-Company Agreements, AMTD Parent and its subsidiaries, on the one hand, and AMTD International and its subsidiaries, on the other, may enter into interim services agreements from time to time covering the provision of various interim services, if any, including financial, accounting, legal, and other services by AMTD Parent (and its subsidiaries) to AMTD International (and its subsidiaries) or, in certain circumstances, vice versa. Such services will generally be provided for a fee equal to the actual Direct Costs and Indirect Costs of providing such services plus an additional amount as agreed to by the Parties, subject to other considerations being agreed to by the Parties. “Direct Costs” shall include labor-related compensation and travel expenses, materials and supplies consumed, and agency fees arising from performing the services. “Indirect Costs” shall include occupancy, information technology support, and other overhead costs of the department incurring the direct costs of providing the service. Payment for any such services will be due within thirty (30) days after AMTD Parent renders an invoice for such services.

 

Section 4.11                             Payment of Expenses. Except as otherwise provided in this Agreement, the Inter-Company Agreements, or any other agreement between the Parties relating to the IPO, (a) all costs and expenses of the Parties in connection with the IPO (including costs associated with drafting this Agreement, the Inter-Company Agreements, and the documents relating to the formation of AMTD International and its subsidiaries) shall be paid by AMTD International and (b) all costs and expenses of the Parties in connection with any matter not relating to the IPO shall be paid by the Party which incurs such cost or expense. Notwithstanding the foregoing, AMTD International and AMTD Parent shall each be responsible for their own internal fees, costs, and expenses (e.g., salaries of personnel) incurred in connection with the IPO.

 

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ARTICLE V

 

MUTUAL RELEASES; INDEMNIFICATION

 

Section 5.1                                    Release of Claims.

 

(a)                                 AMTD International Release. Except as provided in Section 5.1(c), AMTD International, for itself and as agent for each of its subsidiaries, does hereby assume, and does hereby remise, release, and forever discharge the AMTD Parent Indemnitees from, any and all Liabilities whatsoever, whether at law or in equity (including any right of contribution), whether arising under any contract or agreement, by operation of law or otherwise, existing or arising from any past acts or events occurring or failing to occur or alleged to have occurred or to have failed to occur or any conditions existing or alleged to have existed on or before the Public Filing Date, including in connection with the transactions and all other activities to implement the IPO.

 

(b)                                 AMTD Parent Release. Except as provided in Section 5.1(c), AMTD Parent, for itself and as agent for each of its subsidiaries, does hereby remise, release and forever discharge the AMTD International Indemnitees from any and all Liabilities whatsoever, whether at law or in equity (including any right of contribution), whether arising under any contract or agreement, by operation of law or otherwise, existing or arising from any past acts or events occurring or failing to occur or alleged to have occurred or to have failed to occur or any conditions existing or alleged to have existed on or before the Public Filing Date, including in connection with the transactions and all other activities to implement the IPO.

 

(c)                                  No Impairment. Nothing contained in Section 5.1(a) or Section 5.1(b) shall limit or otherwise affect any Party’s rights or obligations pursuant to or contemplated by this Agreement or any Inter-Company Agreement, in each case in accordance with its terms, including, without limitation, any obligations relating to indemnification, including indemnification pursuant to Section 5.2 and Section 5.3 of this Agreement.

 

Section 5.2                                    Indemnification by AMTD International. Except as otherwise provided in this Agreement, AMTD International shall, for itself and as agent for each of its subsidiaries, indemnify, defend (or, where applicable, pay the defense costs for), and hold harmless the AMTD Parent Indemnitees from and against, and shall reimburse the AMTD Parent Indemnitees with respect to, any and all Losses that any third party seeks to impose upon the AMTD Parent Indemnitees, or which are imposed upon the AMTD Parent Indemnitees, and that relate to, arise out of, or result from, whether prior to, on or following the Public Filing Date, any of the following items (without duplication):

 

(a)                                 any AMTD International Liability;

 

(b)                                 any breach by AMTD International or any of its subsidiaries of this Agreement or any of the Inter-Company Agreements; and

 

(c)                                  any Liabilities relating to, arising out of, or resulting from any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, with respect to all information (i) contained in the IPO Registration Statement, any issuer free writing prospectus, or any preliminary, final, or supplemental prospectus forming a part of the IPO Registration Statement (other than information provided in writing by AMTD Parent or any of its subsidiaries to AMTD International specifically for inclusion in the IPO Registration Statement, any issuer free writing prospectus, or any preliminary, final, or supplemental prospectus forming a part of the IPO Registration Statement) or (ii) contained in any public filings made by AMTD International with the SEC following the Public Filing Date.

 

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In the event that AMTD International or any of its subsidiaries makes a payment to the AMTD Parent Indemnitees hereunder, and any of the AMTD Parent Indemnitees subsequently diminishes the Liability on account of which such payment was made, either directly or through a third-party recovery (other than a recovery indirectly from AMTD Parent or its subsidiaries), AMTD Parent will promptly repay (or will procure an AMTD Parent Indemnitee to promptly repay) AMTD International (or its subsidiary that has made the payment) the amount by which the payment made by AMTD International (or its subsidiary that has made the payment) exceeds the actual cost of the associated indemnified Liability.

 

Section 5.3                                    Indemnification by AMTD Parent. Except as otherwise provided in this Agreement, AMTD Parent shall, for itself and as agent for each of its subsidiaries, indemnify, defend (or, where applicable, pay the defense costs for), and hold harmless the AMTD International Indemnitees from and against, and shall reimburse each such AMTD International Indemnitee with respect to, any and all Losses that any third party seeks to impose upon the AMTD International Indemnitees or which are imposed upon the AMTD International Indemnitees to the extent relating to, arising out of, or resulting from, whether prior to, on or following the Public Filing Date, any of the following items (without duplication):

 

(a)                                 any Liability of AMTD Parent or its subsidiaries and all Liabilities arising out of the operation or conduct of the AMTD Parent Business (in each case excluding the AMTD International Liabilities);

 

(b)                                 any breach by AMTD Parent or any member of the AMTD Group of this Agreement or any of the Inter-Company Agreements; and

 

(c)                                  any Liabilities relating to, arising out of, or resulting from any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, with respect to all information (i) contained in the IPO Registration Statement, any issuer free writing prospectus, or any preliminary, final, or supplemental prospectus forming a part of the IPO Registration Statement and provided in writing by AMTD Parent or any of its subsidiaries to AMTD International specifically for inclusion in the IPO Registration Statement, any issuer free writing prospectus, or any preliminary, final, or supplemental prospectus forming a part of the IPO Registration Statement) or (ii) provided in writing by AMTD Parent or its subsidiaries to AMTD International specifically for inclusion in AMTD International’s annual or quarterly reports following the Public Filing Date to the extent (1) such information pertains to (A) AMTD Parent or any of its subsidiaries or (B) the AMTD Parent Business or (2) AMTD International has provided prior written notice to AMTD Parent that such information will be included in one or more annual or quarterly reports, specifying how such information will be presented, and the information is included in such annual or quarterly reports; provided that this sub-clause (2) shall not apply to the extent that any such Liability arises out of or results from, or in connection with, any action or inaction of AMTD International or any of its subsidiaries, including as a result of any misstatement or omission of any information by AMTD International or any of its subsidiaries to AMTD Parent.

 

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In the event that AMTD Parent or any of its subsidiaries makes a payment to the AMTD International Indemnitees hereunder, and any of the AMTD International Indemnitees subsequently diminishes the Liability on account of which such payment was made, either directly or through a third-party recovery (other than a recovery indirectly from AMTD International or its subsidiaries), AMTD International will promptly repay (or will procure a AMTD International Indemnitee to promptly repay) AMTD Parent (or its subsidiary that has made the payment) the amount by which the payment made by AMTD Parent (or its subsidiary that has made the payment) exceeds the actual cost of the indemnified Liability.

 

Section 5.4                                    Procedures for Defense, Settlement, and Indemnification of the Third Party Claims.

 

(a)                                 Notice of Claims. If an Indemnitee shall receive notice or otherwise learn of the assertion by a Person (including any Governmental Authority) other than AMTD Parent, AMTD International and their subsidiaries of any claim or of the commencement by any such Person of any Action (collectively, a “Third Party Claim”) with respect to which an Indemnifying Party may be obligated to provide indemnification, AMTD Parent or AMTD International, as applicable, will ensure that such Indemnitee shall give such Indemnifying Party written notice thereof within thirty (30) days after becoming aware of such Third Party Claim. Any such notice shall describe the Third Party Claim in reasonable detail. Notwithstanding the foregoing, the delay or failure of any Indemnitee or other Person to give notice as provided in this Section 5.4 shall not relieve the related Indemnifying Party of its obligations under this Article V, except to the extent that such Indemnifying Party is actually and substantially prejudiced by such delay or failure to give notice.

 

(b)                                 Defense by Indemnifying Party. An Indemnifying Party shall be entitled to participate in the defense of any Third Party Claim and, to the extent that it wishes, at its cost, risk, and expense, to assume the defense thereof, with counsel reasonably satisfactory to the Indemnitee, unless the Indemnifying Party is also a party to such proceeding and the Indemnitee determines in good faith that joint representation would be materially prejudicial to the Indemnitee’s defense. After timely notice from the Indemnifying Party to the Indemnitee of such election to so assume the defense thereof, the Indemnifying Party shall not be liable to the Indemnitee for any legal expenses of other counsel or any other expenses subsequently incurred by the Indemnitee in connection with the defense thereof. The Indemnitee agrees to cooperate in all reasonable respects with the Indemnifying Party and its counsel in the defense against any Third Party Claim. The Indemnifying Party shall be entitled to compromise or settle any Third Party Claim as to which it is providing indemnification, provided that any compromise or settlement shall be made only with the written consent of the Indemnitee, such consent not to be unreasonably withheld.

 

(c)                                  Defense by Indemnitee. If an Indemnifying Party fails to assume the defense of a Third Party Claim within thirty (30) days after receipt of notice of such claim, the Indemnitee will, upon delivering notice to such effect to the Indemnifying Party, have the right to undertake the defense, compromise, or settlement of such Third Party Claim on behalf of and for the account of the Indemnifying Party subject to the limitations as set forth in this Section 5.4; provided, however, that such Third Party Claim shall not be compromised or settled without the written consent of the Indemnifying Party, which consent shall not be unreasonably withheld. If the Indemnitee assumes the defense of any Third Party Claim, it shall keep the Indemnifying Party reasonably informed of the progress of any such defense, compromise or settlement. The Indemnifying Party shall reimburse all such costs and expenses of the Indemnitee in the event it is ultimately determined that the Indemnifying Party is obligated to indemnify the Indemnitee with respect to such Third Party Claim. In no event shall an Indemnifying Party be liable for any settlement effected without its consent, which consent shall not be unreasonably withheld.

 

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Section 5.5                                    Additional Matters.

 

(a)                                 Cooperation in Defense and Settlement. With respect to any Third Party Claim that implicates both AMTD International and AMTD Parent in a material way due to the allocation of Liabilities, responsibilities for management of defense, and related indemnities set forth in this Agreement or any of the Inter-Company Agreements, the Parties agree to cooperate fully and maintain a joint defense (in a manner that will preserve the attorney-client privilege, joint defense, or other privilege with respect thereto) so as to minimize such Liabilities and defense costs associated therewith. Any Party that is not responsible for managing the defense of such Third Party Claims shall, upon reasonable request, be consulted with respect to significant matters relating thereto and may, if necessary or helpful, engage counsel to assist in the defense of such claims.

 

(b)                                 Subrogation. In the event of payment by or on behalf of any Indemnifying Party to or on behalf of any Indemnitee in connection with any Third Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee, in whole or in part based upon whether the Indemnifying Party has paid all or only part of the Indemnitee’s Liability, as to any events or circumstances in respect of which such Indemnitee may have any right, defense, or claim relating to such Third Party Claim against any claimant or plaintiff asserting such Third Party Claim or against any other person. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right, defense or claim.

 

Section 5.6                                    Survival of Indemnities. The rights and obligations of the Parties under this Article V shall survive the sale or other transfer by any Party of any of its assets or businesses or the assignment by it of any Liabilities or the acquisition of control of such Party (by sale of capital stock or other equity interests, merger, consolidation, or otherwise).

 

ARTICLE VI

 

DISPUTE RESOLUTION

 

Section 6.1                                    Dispute Resolution.

 

(a)                                 Any dispute, controversy, or claim arising out of or relating to this Agreement or any Inter-Company Agreement, or the breach, termination or validity thereof (“Dispute”) which arises between the Parties shall first be negotiated between appropriate senior executives of each Party who shall have the authority to resolve the matter. Such executives shall meet to attempt in good faith to negotiate a resolution of the Dispute prior to pursuing other available remedies, within ten (10) days of receipt by a Party of written notice of a Dispute, which date of receipt shall be referred to herein as the “Dispute Resolution Commencement Date.” Discussions and correspondence relating to trying to resolve such Dispute shall be treated as Confidential Information and Privileged Information of each of AMTD Parent and AMTD International developed for the purpose of settlement and shall be exempt from discovery or production and shall not be admissible in any subsequent proceeding between the Parties.

 

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(b)                                 If the senior executives are unable to resolve the Dispute within 60 days from the Dispute Resolution Commencement Date, then, the Dispute will be submitted to the boards of directors of AMTD Parent and AMTD International. Representatives of each board of directors shall meet as soon as practicable to attempt in good faith to negotiate a resolution of the Dispute.

 

(c)                                  If the representatives of the two boards of directors are unable to resolve the Dispute within 120 days from the Dispute Resolution Commencement Date, on the request of any Party, the Dispute will be mediated by a mediator appointed pursuant to the mediation rules of the American Arbitration Association. Both Parties will share the administrative costs of the mediation and the mediator’s fees and expenses equally, and each Party shall bear all of its other costs and expenses related to the mediation, including but not limited to attorney’s fees, witness fees, and travel expenses. The mediation shall take place in Hong Kong or in whatever alternative forum on which the Parties may agree.

 

(d)                                 If the Parties cannot resolve any Dispute through mediation within 45 days after the appointment of the mediator (or the earlier withdrawal thereof), each Party shall be entitled to seek relief in a court of competent jurisdiction.

 

Unless otherwise agreed in writing, the Parties will continue to provide service and honor all other commitments under this Agreement and each Inter-Company Agreement during the course of dispute resolution pursuant to the provisions of this Section 6.1 with respect to all matters not subject to such dispute, controversy or claim.

 

ARTICLE VII

 

MISCELLANEOUS

 

Section 7.1                                    Consent of AMTD Parent.

 

(a)                                 Any consent of AMTD Parent pursuant to this Agreement or any of the Inter-Company Agreements shall not be effective unless it is in writing and evidenced by the signature of the Chief Executive Officer or Chief Financial Officer of AMTD Parent (or such other person that the Chief Executive Officer, Chief Financial Officer, or board of directors of AMTD Parent has specifically authorized in writing to give such consent).

 

(b)                                 Any consent of AMTD International pursuant to this Agreement or any of the Inter-Company Agreements shall not be effective unless it is in writing and evidenced by the signature of the Chief Executive Officer or Chief Financial Officer of AMTD International (or such other person that the Chief Executive Officer, Chief Financial Officer, or board of directors of AMTD International has specifically authorized in writing to give such consent).

 

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Section 7.2                                    Limitation of Liability. IN NO EVENT SHALL AMTD PARENT OR ANY MEMBER OF THE AMTD GROUP OR AMTD INTERNATIONAL OR ANY OF ITS SUBSIDIARIES BE LIABLE TO THE OTHER PARTY, OR ITS AFFILIATED COMPANIES FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL, OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT THE FOREGOING LIMITATIONS SHALL NOT LIMIT EACH PARTY’S INDEMNIFICATION OBLIGATIONS FOR LIABILITIES AS SET FORTH IN THIS AGREEMENT OR IN ANY INTER-COMPANY AGREEMENT.

 

Section 7.3                                    Entire Agreement. This Agreement and the Inter-Company Agreements and the exhibits and schedules referenced or attached hereto and thereto constitute the entire agreement among the Parties with respect to the subject matter hereof and thereof and shall supersede all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof and thereof.

 

Section 7.4                                    Governing Law and Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of Hong Kong. Subject to Section 6.1, each of the Parties hereby submits unconditionally to the jurisdiction of, and agrees that venue shall lie exclusively in, the courts located in Hong Kong for purposes of the resolution of any disputes arising under this Agreement.

 

Section 7.5                                    Termination; Amendment. This Agreement may be terminated or amended by mutual consent of the Parties, evidenced by an instrument in writing signed on behalf of each of the Parties. In the event of termination pursuant to this Section 7.5, no Party shall have any liability of any kind to the other Party. This Agreement shall terminate on the date that is two (2) years after the first date upon which members of the AMTD Group no longer collectively own at least twenty percent (20%) of the voting power of the then outstanding securities of AMTD International; provided, however, that (i) the provisions of Section 4.8 shall survive for a period of seven (7) years after the termination of this Agreement, and (ii) the provisions of Section 4.6, Article V, Article VI and Article VII shall survive indefinitely after the termination of this Agreement. For avoidance of doubt, the termination of this Agreement shall not affect the validity and effectiveness of any of the Inter-Company Agreements.

 

Section 7.6                                    Notices. Notices, offers, requests or other communications required or permitted to be given by a Party pursuant to the terms of this Agreement shall be given in writing to the other Party to the following addresses:

 

if to AMTD Parent:

 

23/F-25/F Nexxus Building
 41 Connaught Road Central
 Hong Kong
 Attention: Issac See
 Facsimile: 3163 3289
 Email: issac.see@amtdgroup.com

 

21

 

if to AMTD International:

 

23/F Nexxus Building
 41 Connaught Road Central
 Hong Kong
 Attention: Philip Yau
 Facsimile: 3163 3389
 Email: p@amtdinc.com

 

or to such other address, facsimile number, or email address as the Party to whom notice is given may have previously furnished to the other in writing as provided herein. Any notice involving non-performance or termination shall be sent by hand delivery or recognized overnight courier. All other notices may also be sent by facsimile or email, confirmed by mail. All notices shall be deemed to have been given when received, if hand delivered; when transmitted, if transmitted by facsimile or email; upon confirmation of delivery, if sent by recognized overnight courier; and upon receipt if mailed.

 

Section 7.7                                    Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement.

 

Section 7.8                                    Binding Effect; Assignment. This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective legal representatives and successors, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Agreement. This Agreement may be enforced separately by each Party’s subsidiaries. No Party may assign this Agreement or any rights or obligations hereunder, without the prior written consent of the other Party, and any such assignment shall be void; provided, however, each Party may assign this Agreement to a successor entity in conjunction with such Party’s reincorporation in another jurisdiction or into another business form.

 

Section 7.9                                    Severability. If any term or other provision of this Agreement or the Exhibits or Schedules attached hereto is determined by a court, administrative agency, or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest extent possible.

 

Section 7.10                             Failure or Indulgence not Waiver; Remedies Cumulative. No failure or delay on the part of any Party hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall any single or partial exercise of any such right preclude other or further exercise thereof or of any other right. All rights and remedies existing under this Agreement or the exhibits or schedules attached hereto are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

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Section 7.11                             Authority. Each of the Parties hereto represents to the others that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate or other actions, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is a legal, valid, and binding obligation, enforceable against it in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting creditors’ rights generally and general equity principles.

 

Section 7.12                             Interpretation. The headings contained in this Agreement, in any exhibit or schedule hereto and in the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Any capitalized term used in any exhibit or schedule but not otherwise defined therein, has the meaning assigned to such term in this Agreement. For all purposes of this Agreement: (i) all references in this Agreement to designated “sections,” “schedules,” “exhibits,” and other subdivisions are to the designated sections, schedules, exhibits, and other subdivisions of the body of this Agreement unless otherwise indicated; (ii) the words “herein,” “hereof,” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular section or other subdivision; (iii) “or” is not exclusive; (iv) “including” and “includes” will be deemed to be followed by “but not limited to” and “but is not limited to,” respectively; (v) any definition of, or reference to, any law, agreement, instrument, or other document herein will be construed as referring to such law, agreement, instrument, or other document as from time to time amended, supplemented, or otherwise modified; and (vi) any definition of, or reference to, any statute will be construed as referring also to any rules and regulations promulgated thereunder.

 

Section 7.13                             Conflicting Agreements. None of the provisions of this Agreement is intended to supersede any provision in any Inter-Company Agreement or any other agreement with respect to the respective subject matters thereof. In the event of conflict between this Agreement and any Inter-Company Agreement or other agreement executed in connection herewith, the provisions of such other agreement shall prevail.

 

Section 7.14                             Third Party Beneficiaries. None of the provisions of this Agreement shall be for the benefit of or enforceable by any third party, including any creditor of any Person. No such third party shall obtain any right under any provision of this Agreement or shall by reasons of any such provision make any claim in respect of any Liability (or otherwise) against either Party hereto.

 

[Signature page follows]

 

23

 

WHEREFORE, the Parties have signed this Master Transaction Agreement effective as of the date first set forth above.

 

	
 
    	
AMTD Group Company Limited
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Marcellus Wong
    
	
 
    	
 
    	
Name: Marcellus Wong
    
	
 
    	
 
    	
Title:   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AMTD International Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Calvin Choi
    
	
 
    	
 
    	
Name: Calvin Choi
    
	
 
    	
 
    	
Title:   DirectorExhibit 10.5

 

TRANSITIONAL SERVICES AGREEMENT

 

Between

 

AMTD GROUP COMPANY LIMITED

 

and

 

AMTD INTERNATIONAL INC.

 

Dated as of June 20, 2019

 

 

TABLE OF CONTENTS

 

	
ARTICLE I   DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
Section 1.1
    	
Defined Terms
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II   SERVICES
    	
4
    
	
 
    	
 
    	
 
    
	
Section 2.1
    	
Initial Services
    	
4
    
	
Section 2.2
    	
Additional Services
    	
4
    
	
Section 2.3
    	
Scope of Services
    	
4
    
	
Section 2.4
    	
Limitation on Provision   of Services
    	
5
    
	
Section 2.5
    	
Standard of   Performance; Standard of Care
    	
5
    
	
Section 2.6
    	
Prices for Services
    	
7
    
	
Section 2.7
    	
Changes in Services
    	
7
    
	
Section 2.8
    	
Services Performed by   Third Parties
    	
8
    
	
Section 2.9
    	
Responsibility for   Provider Personnel
    	
8
    
	
Section 2.10
    	
Services Rendered as a Work-For-Hire;   Return of Equipment; Internal Use; No Sale, Transfer, Assignment; Copies
    	
8
    
	
Section 2.11
    	
Cooperation
    	
8
    
	
 
    	
 
    
	
ARTICLE III   CHARGES AND PAYMENT
    	
9
    
	
 
    	
 
    	
 
    
	
Section 3.1
    	
Procedure
    	
9
    
	
Section 3.2
    	
Late Payments
    	
9
    
	
 
    	
 
    
	
ARTICLE IV   TERM AND TERMINATION
    	
9
    
	
 
    	
 
    
	
Section 4.1
    	
Termination Dates
    	
9
    
	
Section 4.2
    	
Early Termination by   the Recipient
    	
9
    
	
Section 4.3
    	
Termination by the   Provider
    	
9
    
	
Section 4.4
    	
Effect of Termination   of Services
    	
10
    
	
Section 4.5
    	
Data Transmission
    	
10
    
	
 
    	
 
    
	
ARTICLE V   MISCELLANEOUS
    	
10
    
	
 
    	
 
    
	
Section 5.1
    	
DISCLAIMER OF   WARRANTIES
    	
10
    
	
Section 5.2
    	
Limitation of   Liability; Indemnification
    	
11
    
	
Section 5.3
    	
Compliance with Law and   Governmental Regulations
    	
12
    
	
Section 5.4
    	
No Partnership or Joint   Venture; Independent Contractor
    	
12
    
	
Section 5.5
    	
Non-Exclusivity
    	
13
    
	
Section 5.6
    	
Expenses
    	
13
    
	
Section 5.7
    	
Further Assurances
    	
13
    
	
Section 5.8
    	
Confidentiality
    	
13
    
	
Section 5.9
    	
Headings
    	
14
    
	
Section 5.10
    	
Interpretation
    	
14
    
	
Section 5.11
    	
Amendments
    	
14
    
	
Section 5.12
    	
Inconsistency
    	
14
    
	
Section 5.13
    	
Notices
    	
15
    
	
Section 5.14
    	
Assignment; No   Third-Party Beneficiaries
    	
15
    
	
Section 5.15
    	
Entire Agreement
    	
16
    

 

i

 

	
Section 5.16
    	
Counterparts
    	
16
    
	
Section 5.17
    	
Severability
    	
16
    
	
Section 5.18
    	
Incorporation by   Reference
    	
16
    
	
Section 5.19
    	
Governing Law and   Jurisdiction
    	
16
    

 

	
SCHEDULE   SERVICES
    	
SCHEDULE-1-1
    

 

ii

 

TRANSITIONAL SERVICES AGREEMENT

 

This Transitional Services Agreement is dated as of June 20, 2019, by and between AMTD Group Company Limited, an exempted company with limited liability incorporated under the laws of the British Virgin Islands (“AMTD Parent”), and AMTD International Inc., an exempted company with limited liability incorporated under the laws of the Cayman Islands (“AMTD International”).

 

R E C I T A L S

 

WHEREAS, as of the date hereof, AMTD Parent owns 200,000,001 issued and outstanding Class B Ordinary Shares of AMTD International, representing 95.28% of the total issued and outstanding Ordinary Shares of AMTD International;

 

WHEREAS, the parties currently contemplate that AMTD International will seek an initial public offering (the “IPO”) pursuant to a registration statement on Form F-1 confidentially submitted for review and comment by the SEC under the U.S. Securities Act of 1933, as amended, to be filed publicly with the SEC via its EDGAR system (the date of such public filing, the “Public Filing Date”) following the substantial completion of such review and comment and as financial market conditions permit (as so filed, and as amended thereafter from time to time, the “IPO Registration Statement”);

 

WHEREAS, AMTD Parent and AMTD International have entered into that certain master transaction agreement, dated as of June 20, 2019 (the “Master Transaction Agreement”), which sets forth and memorializes the principal arrangements between AMTD Parent and AMTD International regarding their relationship from and after the filing of the IPO Registration Statement and the consummation of the IPO, including the entering into of this Agreement; and

 

WHEREAS, the parties desire that members of AMTD Group will continue to provide certain services to members of AMTD International Group and that members of AMTD International Group will also provide certain services to members of AMTD Group.

 

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants, and undertakings contained herein and the transactions contemplated by the Master Transaction Agreement, the receipt and sufficiency of which are acknowledged, the parties hereby mutually agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1                                    Defined Terms. Capitalized terms used and not otherwise defined herein will have the meanings ascribed to such terms in the Master Transaction Agreement. Capitalized terms used in the Schedule but not otherwise defined therein, will have the meaning ascribed to such word in this Agreement. For purposes of this Agreement, the following words and phrases will have the following meanings:

 

“Additional Services” has the meaning set forth in Section 2.2 of this Agreement.

 

1

 

“Affiliate” of any Person means a Person that controls, is controlled by, or is under common control with such Person; provided that, under this Agreement, “Affiliate” of any member of AMTD Group excludes members of AMTD International Group, and “Affiliate” of any member of AMTD International Group excludes members of AMTD Group. As used herein, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such entity, whether through ownership of voting securities or other interests, by contract or otherwise.

 

“Agreement” means this Transitional Services Agreement, together with the Schedule hereto, as the same may be amended from time to time in accordance with the provisions hereof.

 

“Allocated Cost” has the meaning set forth in Section 2.6 of this Agreement.

 

“AMTD Group” means AMTD Parent and its subsidiaries, other than AMTD International and its subsidiaries.

 

“AMTD Parent” has the meaning set forth in the preamble of this Agreement.

 

“AMTD International” has the meaning set forth in the preamble of this Agreement.

 

“AMTD International Group” means AMTD International and its subsidiaries.

 

“Ancillary Agreement” means any agreement between AMTD Parent and AMTD International including the Master Transaction Agreement and Non-Competition Agreement.

 

“Claims” has the meaning set forth in Section 5.2(d) of this Agreement.

 

“Class A Ordinary Shares” means the class A ordinary shares of AMTD International, par value US$0.0001 per share.

 

“Class B Ordinary Shares” means the class B ordinary shares of AMTD International, par value US$0.0001 per share.

 

“Force Majeure Event” has the meaning set forth in Section 2.4(b) of this Agreement.

 

“Governmental Authority” means any federal, state, local, foreign, or international court, government, department, commission, board, bureau, agency, official, or other regulatory, administrative, or governmental authority.

 

“Historical Levels” has the meaning set forth in Section 2.4(a) of this Agreement.

 

“Indemnitee” has the meaning set forth in Section 5.2(d) of this Agreement.

 

“Indemnitor” has the meaning set forth in Section 5.2(d) of this Agreement.

 

“Information” means information in written, oral, electronic, or other tangible or intangible forms, stored in any medium, including studies, reports, records, books, contracts, instruments, surveys, discoveries, ideas, concepts, know-how, techniques, designs, specifications, drawings, blueprints, diagrams, models, prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes, computer programs or other software, marketing plans, customer names, communications by or to attorneys (including attorney-client privileged

 

2

 

communications), memoranda and other materials prepared by attorneys or under their direction (including attorney work product), and other technical, financial, employee, or business information or data.

 

“Initial Services” has the meaning set forth in Section 2.1 of this Agreement.

 

“IPO” has the meaning set forth in the recitals to this Agreement.

 

“IPO Registration Statement” has the meaning set forth in the recitals to this Agreement.

 

“Law” means any law, statute, rule, regulation or other requirement imposed by a Governmental Authority.

 

“Master Transaction Agreement” has the meaning set forth in the recitals to this Agreement.

 

“Non-Competition Agreement” has the meaning set forth in Section 2.1 of the Master Transaction Agreement.

 

“Ordinary Shares” means the Class A Ordinary Shares and the Class B Ordinary Shares.

 

“Person” means an individual, a general or limited partnership, a corporation, a trust, a joint venture, an unincorporated organization, a limited liability entity, any other entity, and any Governmental Authority.

 

“Provider” means, with respect to any particular Service, the entity or entities identified on the Schedule as the party to provide such Service.

 

“Provider Personnel” has the meaning set forth in Section 2.9 of this Agreement.

 

“Public Filing Date” has the meaning set forth in the recitals to this Agreement.

 

“Recipient” means, with respect to any particular Service, the entity or entities identified on the Schedule as the party to receive such Service.

 

“Review Meetings” has the meaning set forth in Section 2.11 of this Agreement.

 

“Schedule” has the meaning set forth in Section 2.1 of this Agreement.

 

“SEC” means the U.S. Securities and Exchange Commission.

 

“Service Period” means, with respect to any Service, the period commencing on the Public Filing Date and ending on the earlier of (i) the date the Recipient terminates the provision of such Service pursuant to Section 4.2, (ii) the date the Provider terminates the provision of such Service pursuant to Section 4.3, or (iii) the date that is 18 months after the Public Filing Date.

 

“Services” has the meaning set forth in Section 2.2 of this Agreement.

 

3

 

“System” means the software, hardware, data store or maintenance and support components or portions of such components of a set of information assets identified in a Schedule.

 

“Tax” means all forms of direct and indirect taxation or duties imposed, or required to be collected or withheld, including charges, together with any related interest, penalties, or other additional amounts.

 

“Termination Fees” has the meaning set forth in Section 4.2 of this Agreement.

 

“Termination Notice” has the meaning set forth in Section 4.2 of this Agreement.

 

“Work Product” has the meaning set forth in Section 2.10 of this Agreement.

 

ARTICLE II

 

SERVICES

 

Section 2.1                                    Initial Services. Except as otherwise provided herein, during the applicable Service Period, each Provider agrees to provide, or with respect to any service to be provided by an Affiliate of the Provider, to cause such Affiliate to provide, to the Recipient, or with respect to any service to be provided to an Affiliate of the Recipient, to such Affiliate, the services that have been provided by the Provider and any of its Affiliates to the Recipient or its Affiliate (the “Initial Services”), including but not limited to the services set forth on the Schedule (the “Schedule”) annexed hereto.

 

Section 2.2                                    Additional Services. From time to time during the applicable Service Period, the parties may identify additional services that the Provider will provide to the Recipient in accordance with the terms of this Agreement (the “Additional Services” and, together with the Initial Services, the “Services”). If the parties agree to add any Additional Services, the parties will mutually create a Schedule or amend the existing Schedule for each such Additional Service setting forth the identities of the Provider and the Recipient, a description of such Service, the term during which such Service will be provided, the cost, if any, for such Service and any other provisions applicable thereto. In order to become a part of this Agreement, such amendment to the Schedule must be executed by a duly authorized representative of each party, at which time such Additional Service will, together with the Initial Services, be deemed to constitute a “Service” for the purposes hereof and will be subject to the terms and conditions of this Agreement. The parties may, but will not be required to, agree on Additional Services during the applicable Service Period. Notwithstanding anything to the contrary in the foregoing or anywhere else in this Agreement, any service actually performed by the Provider upon written or oral request by the Recipient in connection with this Agreement will be deemed to constitute a “Service” for the purposes of Article III and Section 5.2, but such “Service” will only be incorporated into this Agreement by an amendment as set forth in this Section 2.2 and Section 5.11. Notwithstanding the foregoing, neither party will have any obligation to agree to provide Additional Services.

 

Section 2.3                                    Scope of Services. Notwithstanding anything to the contrary herein, (a) neither the Provider nor any of its Affiliates will be required to perform or to cause to be performed any of the Services for the benefit of any third party or any other person other than

 

4

 

the applicable Recipient or its Affiliates, and (b) the Provider makes no warranties, express or implied, with respect to the Services, except as provided in Section 2.5.

 

Section 2.4                                    Limitation on Provision of Services.

 

(a)                                 Except as expressly contemplated in the Schedule, neither the Provider nor any of its Affiliates will be obligated to perform or to cause to be performed any Service in a volume or quantity that exceeds on an annualized basis 150 percent of the historical volumes or quantities of Services performed by it or its Affiliates for the business of the Recipient during calendar year 2018, without reference to the transactions contemplated by the Master Transaction Agreement (“Historical Levels”); provided, however, that if the Recipient wishes to increase the volume or quantity of such Services provided under this Agreement by more than such amount, the Recipient will make a request to the appropriate Provider in writing in accordance with Section 5.13 at least fifteen (15) days prior to the next Review Meeting setting out in as much detail as reasonably possible the change requested and the reason for requesting the change, which request will be considered at the next Review Meeting. The Provider may, in its sole discretion, choose to accommodate or not to accommodate any such request in part or in full.

 

(b)                                 In case performance of any terms or provisions hereof will be delayed or prevented, in whole or in part, because of, or related to, compliance with any Law, decree, request, or order of any Governmental Authority, either local, state, federal, or foreign, or because of riots, war, public disturbance, strike, labor dispute, fire explosion, storm, flood, acts of God, major breakdown or failure of transportation, manufacturing, distribution, or storage facilities, or for any other reason which is not within the control of the party whose performance is interfered with and which by the exercise of reasonable diligence such party is unable to prevent (each, a “Force Majeure Event”), then upon prompt notice by the party so suffering to the other party, the party suffering will be excused from its obligations hereunder during the period such Force Majeure Event continues, and no liability will attach against either party on account thereof. No party will be excused from performance if such party fails to use reasonable diligence to remedy the situation and remove the cause and effect of the Force Majeure Event.

 

(c)                                  If the Provider is unable to provide a Service hereunder because it does not have the necessary assets because such asset was transferred from the Provider to the Recipient, the parties will determine a mutually acceptable arrangement to provide the necessary access to such asset and until such time as access is provided, the Provider’s failure to provide such Service will not be a breach of this Agreement.

 

(d)                                 Notwithstanding anything to the contrary contained herein, this Agreement will not constitute an agreement for the Provider to provide Services to the Recipient to the extent that the provision of any such Services would not be in compliance with applicable Laws.

 

Section 2.5                                    Standard of Performance; Standard of Care.

 

(a)                                 The Provider will use its commercially reasonable efforts to provide and cause its Affiliates to provide the Services in a manner which is substantially similar in nature, quality, and timeliness to the services provided by the applicable Provider to the applicable Recipient immediately prior to the date hereof; provided, however, that nothing in this Agreement will require the Provider to prioritize or otherwise favor the Recipient over any

 

5

 

third parties or any of the Provider’s or the Provider’s Affiliates’ business operations. The Recipient acknowledges that the Provider’s obligation to provide the Services is contingent upon the Recipient (i) providing in a timely manner all information, documentation, materials, resources and access requested by the Provider and (ii) making timely decisions, approvals and acceptances and taking in a timely manner such other actions requested by the Provider, in each case that the Provider (in its reasonable business judgment) believes is necessary or desirable to enable the Provider to provide the Services; provided, however, that the Provider requests such approvals, information, materials or services with reasonable prior notice to the extent practicable. Notwithstanding anything to the contrary herein, the Provider shall not be responsible for any failure to provide any Service in the event that the Recipient has not fully complied with the immediately preceding sentence. The parties acknowledge and agree that nothing contained in the Schedule will be deemed to (x) increase or decrease the standard of care imposed on the Provider, (y) expand the scope of the Services to be provided as set forth in Article II, except to the extent that the Schedule references a Service that was not provided immediately prior to the date hereof, or (z) limit Sections 5.1 and 5.2.

 

(b)                                 In providing the Services, except to the extent necessary to maintain the level of Service provided on the date hereof (or with respect to any Additional Service, the agreed-upon level), the Provider will not be obligated to: (i) hire any additional employees or (ii) purchase, lease, or license any additional equipment, software, or other assets; and in no event will the Provider be obligated to (x) maintain the employment of any specific employee or (y) pay any costs related to the transfer or conversion of the Recipient’s data to the Provider or any alternate supplier of Services. Further, the Provider will have the right to designate which personnel it will assign to perform the Services, and it will have the right to remove and replace any such personnel at any time or designate any of its Affiliates or a third party provider at any time to perform the Services. At the Recipient’s request, the Provider will consult in good faith with the Recipient regarding the specific personnel to provide any particular Services; provided, however, that the Provider’s decision will control and be final and binding.

 

(c)                                  The Provider’s sole responsibility to the Recipient for errors or omissions committed by the Provider in performing the Services will be to correct such errors or omissions in the Services at no additional cost to the Recipient; provided, however, that the Recipient must promptly advise the Provider of any such error or omission of which it becomes aware after having used commercially reasonable efforts to detect any such errors or omissions.

 

(d)                                 The parties and their respective Affiliates will use good faith efforts to cooperate with each other in connection with the performance of the Services hereunder, including producing on a timely basis all information that is reasonably requested with respect to the performance of Services; provided, however, that such cooperation not unreasonably disrupt the normal operations of the parties and their respective Affiliates; provided further, that the party requesting cooperation will pay all reasonable out-of-pocket costs and expenses incurred by the party furnishing cooperation, unless otherwise expressly provided in this Agreement or the Master Transaction Agreement. Such cooperation will include exchanging information, providing electronic access to systems used in connection with the Services and obtaining or granting all consents, licenses, sublicenses, or approvals necessary to permit each party to perform its obligations hereunder. Notwithstanding anything in this Agreement to the contrary, the Recipient will be solely responsible for paying for the costs of obtaining such consents, licenses, sublicenses, or approvals, including

 

6

 

reasonable legal fees and expenses. Either party providing electronic access to systems used in connection with Services may limit the scope of access to the applicable requirements of the relevant matter through any reasonable means available, and any such access will be subject to the terms of Section 5.8. The exchange of information or records (in any format, electronic or otherwise) related to the provision of Services under this Agreement will be made to the extent that (i) such information or records exist and are created in the ordinary course, (ii) do not involve the incurrence of any material expense, and (iii) are reasonably necessary for any such party to comply with its obligations hereunder or under applicable Law. Subject to the foregoing terms, the parties will cooperate with each other in making information available as needed in the event of a Tax audit or in connection with statutory or governmental compliance issues, whether in Hong Kong or any other country; provided, however, that the provision of such information will be without representation or warranty as to the accuracy or completeness of such information. For the avoidance of doubt, and without limiting any privilege or protection that now or hereafter may be shared by the Provider and the Recipient, neither party will be required to provide any document if the party who would provide such document reasonably believes that so doing would waive any privilege or protection (e.g., attorney-client privilege) applicable to such document.

 

(e)                                  If the Provider reasonably believes it is unable to provide any Service because of a failure to obtain necessary consents (e.g., third-party approvals or instructions or approvals from the Recipient required in the ordinary course of providing a Service), licenses, sublicenses, or approvals contemplated by Section 2.5(d), such failure shall not constitute a breach hereof by the Provider and the parties will cooperate to determine the best alternative approach; provided, however, that in no event will the Provider be required to provide such Service until an alternative approach reasonably satisfactory to the Provider is found or the consents, licenses, sublicenses, or approvals have been obtained.

 

Section 2.6                                    Prices for Services. Services provided to any Recipient pursuant to the terms of this Agreement will be charged at the prices set forth for such Services in the Schedule. At the end of each year during the Service Period, the Provider will determine and allocate the charges, costs and expenses incurred by the Provider to the Recipient on the basis set forth in the Schedule (collectively, “Allocated Cost”) during the previous year. In determining any cost based on actual usage, the Provider will deliver to the Recipient documentation for such cost at the reasonable request of the Recipient.

 

Section 2.7                                    Changes in Services. The parties agree and acknowledge that any Provider may make changes from time to time in the manner of performing the applicable Services if such Provider is making similar changes in performing similar services for itself, its Affiliates or other third parties, if any, and if such Provider furnishes to the Recipient substantially the same notice (in content and timing) as such Provider provides to its Affiliates or other third parties, if any, respecting such changes. In addition, and without limiting the immediately preceding sentence in any way, and notwithstanding any provision of this Agreement to the contrary, such Provider may make any of the following changes without obtaining the prior consent of the Recipient: (a) changes to the process of performing a particular Service that do not adversely affect the benefits to the Recipient of such Provider’s provision or quality of such Service in any material respect or materially increase the charge for such Service; (b) emergency changes on a temporary and short-term basis; and (c) changes to a particular Service in order to comply with applicable Law or regulatory requirements.

 

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Section 2.8                                    Services Performed by Third Parties. Nothing in this Agreement will prevent the Provider from using its Affiliates or third parties to perform all or any part of a Service hereunder. The Provider will remain fully responsible for the performance of its obligations under this Agreement in accordance with its terms, including any obligations it performs through its Affiliates or third parties, and the Provider will be solely responsible for payments due any such Affiliates or third parties.

 

Section 2.9                                    Responsibility for Provider Personnel. All personnel employed, engaged or otherwise furnished by the Provider in connection with its rendering of the Services will be the Provider’s employees, agents or subcontractors, as the case may be (collectively, “Provider Personnel”). The Provider will have the sole and exclusive responsibility for Provider Personnel, will supervise Provider Personnel and will cause Provider Personnel to cooperate with the Recipient in performing the Services in accordance with the terms and conditions of Section 2.5. The Provider will pay and be responsible for the payment of any and all premiums, contributions and taxes for workers’ compensation insurance, unemployment compensation, disability insurance, and all similar provisions now or hereafter imposed by any Governmental Authority with respect to, or measured by, wages, salaries, or other compensation paid, or to be paid, by the Provider to Provider Personnel.

 

Section 2.10                             Services Rendered as a Work-For-Hire; Return of Equipment; Internal Use; No Sale, Transfer, Assignment; Copies. All materials, software, tools, data, inventions, works of authorship, documentation, and other innovations of any kind, including any improvements or modifications to the Provider’s proprietary computer software programs and related materials, that the Provider, or personnel working for or through the Provider, may make, conceive, develop or reduce to practice, alone or jointly with others, in the course of performing Services or as a result of such Services, whether or not eligible for patent, copyright, trademark, trade secret, or other legal protection (collectively the “Work Product”), as between the Provider and the Recipient, will be solely owned by the Provider. Upon the termination of any of the Services, (a) the Recipient will return to the Provider, as soon as practicable, any equipment or other property of the Provider relating to such terminated Services which is owned or leased by the Provider and is, or was, in the Recipient’s possession or control; and (b) the Provider will transfer to the Recipient, as soon as practicable, any and all supporting, back-up, or organizational data or information of the Recipient used in supplying the Service to the Recipient. In addition, the parties will use good-faith efforts at the termination of this Agreement or any specific Service provided hereunder, to ensure that all user identifications and passwords related thereto, if any, are canceled, and that any other data (as well as any and all back-up of that data) pertaining solely to the other party and related to such Service will be returned to such other party and deleted or removed from the applicable computer systems. All systems, procedures and related materials provided to the Recipient are for the Recipient’s internal use only and only as related to the Services or any of the underlying Systems used to provide the Services, and unless the Provider gives its prior written consent in each and every instance (in its sole discretion), the Recipient may not sell, transfer, assign, or otherwise use the Services provided hereunder, in whole or in part, for the benefit of any person other than an Affiliate of the Recipient. The Recipient will not copy, modify, reverse engineer, decompile, or in any way alter Systems without the Provider’s express written consent (in its sole discretion).

 

Section 2.11                             Cooperation. Each party will designate in writing to the other party one (1) representative to act as a contact person with respect to all issues relating to the provision of the Services pursuant to this Agreement. Such representatives will hold review meetings

 

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by telephone or in person, as mutually agreed upon, approximately once every year to discuss issues relating to the provision of the Services under this Agreement (“Review Meetings”). In the Review Meetings such representatives will be responsible for (a) discussing any problems identified relating to the provision of Services and, to the extent changes are agreed upon, implementing such changes and (b) providing notice that any Service has since the prior Review Meeting for the first time exceeded, or is anticipated to exceed, the usual and customary volume for such Service as described in the Schedule.

 

ARTICLE III

 

CHARGES AND PAYMENT

 

Section 3.1                                    Procedure. Charges for the Services will be charged to and payable by the Recipient. Amounts payable pursuant to the terms of this Agreement will be paid to the Provider on an annual basis.

 

Section 3.2                                    Late Payments. Charges not paid within thirty (30) days after the date when payable will bear interest at the rate of 0.75% per month for the period commencing on the due date and ending on the date that is thirty (30) days after such due date, and thereafter at the rate of 1.5% per month until the date payment is received in full by the Provider.

 

ARTICLE IV

 

TERM AND TERMINATION

 

Section 4.1                                    Termination Dates. Unless otherwise terminated pursuant to this Article IV, this Agreement will terminate with respect to any Service at the close of business on the last day of the Service Period for such Service, unless the parties have agreed in writing to an extension of the Service Period.

 

Section 4.2                                    Early Termination by the Recipient. As provided in the Schedule (regarding the required number of days for written notice), the Recipient may terminate this Agreement with respect to either all or any one or more of the Services, at any time and from time to time (except in the event such termination will constitute a breach by Provider of a third-party agreement related to providing such Services), by giving the required written notice to the Provider of such termination (each, a “Termination Notice”). Early termination by the Recipient will obligate the Recipient to pay to the Provider a termination fee equal to the direct costs incurred by the Provider and any of its Affiliates in connection with their provision of Services at the time of the early termination (the “Termination Fees”). Unless provided otherwise in the Schedule, all Services of the same type must be terminated simultaneously. As soon as reasonably practicable after its receipt of a Termination Notice, the Provider will advise the Recipient as to whether early termination of such Services will require the termination or partial termination, or otherwise affect the provision of, certain other Services. If this will be the case, the Recipient may withdraw its Termination Notice within ten (10) days. If the Recipient does not withdraw the Termination Notice within such period, such termination will be final and the Recipient will be deemed to have agreed to the termination, partial termination, or affected provision of such other Services and to pay the Termination Fees.

 

Section 4.3                                    Termination by the Provider. The Provider may terminate this Agreement with respect to either all or any one or more of the Services, at any time and from

 

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time to time, by giving the required written notice to the Recipient of such termination, if (a) members of the AMTD Group no longer collectively own at least twenty percent (20%) of the voting power of the then outstanding securities of AMTD International, or (b) AMTD Parent, collectively with the other members of the AMTD Group, ceases to be the largest beneficial owner of the then outstanding voting securities of AMTD International (for purposes of this clause (b), without considering holdings of institutional investors that have acquired AMTD International securities in the ordinary course of their business and not with a purpose nor with the effect of changing or influencing the control of AMTD International). Additionally, the Provider may terminate this Agreement by giving written notice of such termination to the Recipient, if the Recipient breaches any material provision of this Agreement (including a failure to timely pay an invoiced amount); provided, however, that the Recipient will have thirty (30) days after receiving such written notice to cure any breach which is curable before the termination becomes effective.

 

Section 4.4                                    Effect of Termination of Services. In the event of any termination with respect to one or more, but less than all, of the Services, this Agreement will continue in full force and effect with respect to any Services not so terminated. Upon the termination of any or all of the Services, the Provider will cease, or cause its applicable Affiliates or third-party providers to cease, providing the terminated Services. Upon each such termination, the Recipient will promptly (a) pay to the Provider all fees accrued through the effective date of the Termination Notice, and (b) reimburse the Provider for the termination costs actually incurred by the Provider resulting from the Recipient’s early termination of such Services, if any, including those costs owed to third-party providers, but excluding costs related to the termination of any particular Provider employees in connection with such termination of Services (including wrongful termination claims) unless the Recipient was notified in writing that such particular employees were being engaged in order for the Provider to provide such Services.

 

Section 4.5                                    Data Transmission. In connection with the termination of a particular Service, on or prior to the last day of each relevant Service Period, the Provider will cooperate fully and will cause its Affiliates to cooperate fully to support any transfer of data concerning the relevant Services to the applicable Recipient. If requested by the Recipient in connection with the prior sentence, the Provider will deliver and will cause its Affiliates to deliver to the applicable Recipient, within such time periods as the parties may reasonably agree, all records, data, files, and other information received or computed for the benefit of such Recipient during the Service Period, in electronic and/or hard copy form; provided, however, that (a) the Provider will not have any obligation to provide or cause to provide data in any non-standard format and (b) if the Provider, in its sole discretion, upon request of the Recipient, chooses to provide data in any non-standard format, the Provider and its Affiliates will be reimbursed for their reasonable out-of-pocket costs for providing data electronically in any format other than its standard format, unless expressly provided otherwise in the Schedule.

 

ARTICLE V

 

MISCELLANEOUS

 

Section 5.1                                    DISCLAIMER OF WARRANTIES. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, THE PROVIDER MAKES NO AND DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR

 

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PURPOSE AND NONINFRINGEMENT, WITH RESPECT TO THE SERVICES, TO THE EXTENT PERMITTED BY APPLICABLE LAW. THE PROVIDER MAKES NO REPRESENTATIONS OR WARRANTIES AS TO THE QUALITY, SUITABILITY, OR ADEQUACY OF THE SERVICES FOR ANY PURPOSE OR USE.

 

Section 5.2                                    Limitation of Liability; Indemnification.

 

(a)                                 Each party acknowledges and agrees that the obligations of the other party hereunder are exclusively the obligations of such other party and are not guaranteed directly or indirectly by such other party’s shareholders, members, managers, officers, directors, agents, or any other person. Except as otherwise specifically set forth in the Master Transaction Agreement, and subject to the terms of this Agreement, each party will look only to the other party and not to any manager, director, officer, employee, or agent for satisfaction of any claims, demands, or causes of action for damages, injuries, or losses sustained by any party as a result of the other party’s action or inaction.

 

(b)                                 Notwithstanding (i) the Provider’s agreement to perform the Services in accordance with the provisions hereof, or (ii) any term or provision of the Schedule to the contrary, the Recipient acknowledges that performance by the Provider of the Services pursuant to this Agreement will not subject the Provider, any of its Affiliates or their respective members, shareholders, managers, directors, officers, employees, or agents to any liability whatsoever, except as directly caused by the gross negligence or willful misconduct on the part of the Provider or any of its members, shareholders, managers, directors, officers, employees, and agents; provided, however, that the Provider’s liability as a result of such gross negligence or willful misconduct will be limited to an amount not to exceed the lesser of (x) the price paid for the particular Service, (y) the Recipient’s or its Affiliate’s cost of performing the Service itself during the remainder of the applicable Service Period, or (z) the Recipient’s cost of obtaining the Service from a third party during the remainder of the applicable Service Period; provided further that the Recipient and its Affiliates will exercise their commercially reasonable efforts to minimize the cost of any such alternatives to the Services by selecting the most cost effective alternatives which provide the functional equivalent of the Services replaced.

 

(c)                                  NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT TO THE CONTRARY, IN NO EVENT WILL EITHER PARTY OR ITS RESPECTIVE AFFILIATES BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, COLLATERAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES OR LOST PROFITS SUFFERED BY THE OTHER PARTY OR ITS AFFILIATES, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, IN CONNECTION WITH ANY DAMAGES ARISING HEREUNDER; PROVIDED, HOWEVER, THAT TO THE EXTENT EITHER PARTY OR ITS RESPECTIVE AFFILIATES IS REQUIRED TO PAY (A) ANY AMOUNT ARISING OUT OF THE INDEMNITY SET FORTH IN Section 5.2(b) AND (B) ANY SPECIAL, INCIDENTAL, INDIRECT, COLLATERAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES OR LOST PROFITS TO A THIRD PARTY WHO IS NOT AN AFFILIATE OF EITHER PARTY, IN EACH CASE IN CONNECTION WITH A THIRD-PARTY CLAIM, SUCH DAMAGES WILL CONSTITUTE DIRECT DAMAGES OF THE INDEMNIFIED PARTY AND WILL NOT BE SUBJECT TO THE LIMITATION SET FORTH IN THIS Section 5.2(c).

 

(d)                                 The Recipient agrees to indemnify and hold harmless the Provider, the Provider or its Affiliates and their respective members, shareholders, managers, directors,

 

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officers, employees, and agents with respect to any claims or liabilities (including reasonable attorneys’ fees) (“Claims”), which may be asserted or imposed against the Provider or such persons by a third party who is not an affiliate of either party, as a result of (i) the provision of the Services pursuant to this Agreement, or (ii) the material breach by the Recipient of a third-party agreement that causes or constitutes a material breach of such agreement by the Provider, except (with respect to both of the foregoing) for any claims which are directly caused by the gross negligence or willful misconduct of the Provider or such persons. Each party as indemnitee (“Indemnitee”) will give the other party as indemnitor (“Indemnitor”) prompt written notice of any Claims. If Indemnitor does not notify Indemnitee within a reasonable period after Indemnitor’s receipt of notice of any Claim that Indemnitor is assuming the defense of Indemnitee, then until such defense is assumed by Indemnitor, Indemnitee shall have the right to defend, contest, settle, or compromise such Claim in the exercise of its reasonable judgment and all costs and expenses of such defense, contest, settlement, or compromise (including reasonable outside attorneys’ fees and expenses) will be reimbursed to Indemnitee by Indemnitor. Upon assumption of the defense of any such Claim, Indemnitor will, at its own cost and expense, select legal counsel, conduct and control the defense and settlement of any suit or action which is covered by Indemnitor’s indemnity. Indemnitee shall render all cooperation and assistance reasonably requested by the Indemnitor and Indemnitor will keep Indemnitee fully apprised of the status of any Claim. Notwithstanding the foregoing, Indemnitee may, at its election and sole expense, be represented in such action by separate counsel and Indemnitee may, at its election and sole expense, assume the defense of any such action, if Indemnitee hereby waives Indemnitor’s indemnity hereunder. Unless Indemnitee waives the indemnity hereunder, in no event shall Indemnitee, as part of the settlement of any claim or proceeding covered by this indemnity or otherwise, stipulate to, admit or acknowledge any liability or wrongdoing (whether in contract, tort or otherwise) of any issue which may be covered by this indemnity without the consent of the Indemnitor (such consent not to be unreasonably withheld or delayed).

 

Section 5.3                                    Compliance with Law and Governmental Regulations. The Recipient will be solely responsible for (a) compliance with all Laws affecting its business and (b) any use the Recipient may make of the Services to assist it in complying with such Laws. Without limiting any other provisions of this Agreement, AMTD International agrees and acknowledges that AMTD Parent has no responsibility or liability for advising AMTD International with respect to, or ensuring its compliance with, any public disclosure, its compliance or reporting obligations (including the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the Sarbanes-Oxley Act of 2002, and rules and regulations promulgated under such Acts or any successor provisions), regardless of whether any failure to comply results from information provided hereunder.

 

Section 5.4                                    No Partnership or Joint Venture; Independent Contractor. Nothing contained in this Agreement will constitute or be construed to be or create a partnership or joint venture between the parties or any of their respective Affiliates, successors, or assigns. The parties understand and agree that this Agreement does not make either of them an agent or legal representative of the other for any purpose whatsoever. No party is granted, by this Agreement or otherwise, any right or authority to assume or create any obligation or responsibilities, express or implied, on behalf of or in the name of any other party, or to bind any other party in any manner whatsoever. The parties expressly acknowledge that the Provider is an independent contractor with respect to the Recipient in all respects, including with respect to the provision of the Services.

 

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Section 5.5                                    Non-Exclusivity. The Provider and its Affiliates may provide services of a nature similar to the Services to any other Person. There is no obligation for the Provider to provide the Services to the Recipient on an exclusive basis.

 

Section 5.6                                    Expenses. Except as otherwise provided herein, each party will pay its own expenses incident to the negotiation, preparation, and performance of this Agreement, including the fees, expenses, and disbursements of their respective investment bankers, accountants, and counsel.

 

Section 5.7                                    Further Assurances. From time to time, each party will use its commercially reasonable efforts to take or cause to be taken, at the cost and expense of the requesting party, such further actions as may be reasonably necessary to consummate or implement the transactions contemplated hereby or to evidence such matters.

 

Section 5.8                                    Confidentiality.

 

(a)                                 Subject to Section 5.8(c), each party, on behalf of itself and its respective Affiliates, agrees to hold, and to cause its respective directors, officers, employees, agents, accountants, counsel, and other advisors and representatives to hold, in strict confidence, with at least the same degree of care that applies to such party’s confidential and proprietary information pursuant to policies in effect as of the date hereof, all Information concerning the other party and its Affiliates that is either in its possession (including Information in its possession prior to the date hereof) or furnished by the other party, its Affiliates or their respective directors, officers, managers, employees, agents, accountants, counsel, and other advisors and representatives at any time pursuant to this Agreement or otherwise, and will not use any such Information other than for such purposes as will be expressly permitted hereunder or thereunder, except, in each case, to the extent that such Information has been (i) in the public domain through no fault of such party or its Affiliates or any of their respective directors, officers, managers, employees, agents, accountants, counsel, and other advisors and representatives, (ii) later lawfully acquired from other sources by such party (or its Affiliates) which sources are not themselves bound by a confidentiality obligation, or (iii) independently generated without reference or prior access to any proprietary or confidential Information of the other party.

 

(b)                                 Each party agrees not to release or disclose, or permit to be released or disclosed, any Information of the other party or its Affiliates to any other Person, except its directors, officers, employees, agents, accountants, counsel, and other advisors and representatives who need to know such Information (who will be advised of their obligations hereunder with respect to such Information), except in compliance with Section 5.8(c); provided, however, that any Information may be disclosed to third parties (who will be advised of their obligation hereunder with respect to such Information) retained by the Provider as the Provider reasonably deems necessary to perform the Services.

 

(c)                                  In the event that any party or any of its Affiliates either determines on the advice of its counsel that it is required to disclose any Information pursuant to applicable Law (including pursuant to any rule or regulation of any Governmental Authority) or receives any demand under lawful process or from any Governmental Authority to disclose or provide Information of any other party (or of the other party’s Affiliates) that is subject to the confidentiality provisions hereof, such party will notify the other party prior to disclosing or providing such Information and will cooperate at the expense of such other party in seeking any reasonable protective arrangements (including by seeking confidential treatment of such

 

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Information) requested or required by such other party. Subject to the foregoing, the person that received such a request or determined that it is required to disclose Information may thereafter disclose or provide Information to the extent required by such Law (as so advised by counsel) or by lawful process or such Governmental Authority; provided, however, that such Person provides the other party upon request with a copy of the Information so disclosed.

 

Section 5.9                                    Headings. The Section and paragraph headings contained in this Agreement or in the Schedule hereto and in the table of contents to this Agreement are for reference purposes only and will not affect in any way the meaning or interpretation of this Agreement.

 

Section 5.10                             Interpretation. For all purposes of this Agreement and the Schedule delivered pursuant to this Agreement: (a) the terms defined in Section 1.1 have the meanings assigned to them in Section 1.1 and include the plural as well as the singular; (b) all accounting terms not otherwise defined herein have the meanings assigned under the International Financial Reporting Standards issued by the International Accounting Standard Board as in effect from time to time; (c) all references in this Agreement to designated “Sections,” “Schedule,” and other subdivisions are to the designated Sections, Schedule, and other subdivisions of the body of this Agreement; (d) pronouns of either gender or neuter will include, as appropriate, the other pronoun forms; (e) the words “herein,” “hereof,” “hereunder,” and other words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision; (f) “or” is not exclusive; (g) “including” and “includes” will be deemed to be followed by “but not limited to” and “but is not limited to,” respectively; (h) “party” or “parties” refer to a party or parties to this Agreement unless otherwise indicated; (i) any definition of, or reference to, any law, agreement, instrument, or other document herein will be construed as referring to such law, agreement, instrument, or other document as from time to time amended, supplemented, or otherwise modified; and (j) any definition of, or reference to, any statute will be construed as referring also to any rules and regulations promulgated thereunder.

 

Section 5.11                             Amendments. This Agreement (including the Schedule) may not be amended except by an instrument in writing executed by a duly authorized representative of each party. By an instrument in writing, the Provider, on the one hand, or the Recipient, on the other hand, may waive compliance by the other with any term or provision of this Agreement (including the Schedule) that such other party was or is obligated to comply with or perform. Any such waiver will only be effective in the specific instance and for the specific and limited purpose for which it was given and will not be deemed a waiver of any other provision of this Agreement (including the Schedule) or of the same breach or default upon any recurrence thereof. No failure on the part of any party to exercise and no delay in exercising any right hereunder will operate as a waiver thereof nor will any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.

 

Section 5.12                             Inconsistency. Neither the making nor the acceptance of this Agreement will enlarge, restrict or otherwise modify the terms of the Master Transaction Agreement or constitute a waiver or release by any party of any liabilities, obligations or commitments imposed upon them by the terms of the Master Transaction Agreement, including the representations, warranties, covenants, agreements, and other provisions of the Master Transaction Agreement. In the event of any conflict between the terms of this Agreement (including the Schedule), on the one hand, and the terms of the Master Transaction Agreement, on the other hand, with respect to the subject matters of this

 

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Agreement, the terms of this Agreement will control. In the event of any inconsistency between the terms of this Agreement, on the one hand, and any of the Schedule, on the other hand, the terms of this Agreement (other than charges for Services) will control.

 

Section 5.13                             Notices. Notices, offers, requests or other communications required or permitted to be given by a party pursuant to the terms of this Agreement shall be given in writing to the other party to the following addresses:

 

if to AMTD Parent:

 

23/F-25/F Nexxus Building

41 Connaught Road Central

Hong Kong

Attention: Issac See

Facsimile: 3163 3289

Email: issac.see@amtdgroup.com

 

if to AMTD International:

 

23/F Nexxus Building

41 Connaught Road Central

Hong Kong

Attention: Philip Yau

Facsimile: 3163 3389

Email: p@amtdinc.com

 

or to such other address, facsimile number, or email address as the party to whom notice is given may have previously furnished to the other in writing as provided herein. Any notice involving non-performance or termination shall be sent by hand delivery or recognized overnight courier. All other notices may also be sent by facsimile or email, confirmed by mail. All notices shall be deemed to have been given when received, if hand delivered; when transmitted, if transmitted by facsimile or email; upon confirmation of delivery, if sent by recognized overnight courier; and upon receipt if mailed.

 

Section 5.14                             Assignment; No Third-Party Beneficiaries. Neither this Agreement nor any of the rights and obligations of the parties may be assigned by any party without the prior written consent of the other party, except that (a) the Recipient may assign its rights under this Agreement to any Affiliate or Affiliates of the Recipient without the prior written consent of the Provider, (b) the Provider may assign any rights and obligations hereunder to (i) any Affiliate or Affiliates of the Provider capable of providing such Services hereunder or (ii) third parties to the extent such third parties are routinely used to provide the Services to Affiliates and businesses of the Provider, in either case without the prior written consent of the Recipient, and (c) an assignment by operation of Law in connection with a merger or consolidation will not require the consent of the other party. Notwithstanding the foregoing, each party will remain liable for all of its respective obligations under this Agreement. Subject to the first sentence of this Section 5.14, this Agreement will be binding upon and inure to the benefit of the parties and their respective successors and assigns and no other person will have any right, obligation or benefit hereunder. Any attempted assignment or transfer in violation of this Section 5.14 will be void.

 

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Section 5.15                             Entire Agreement. This Agreement, the Ancillary Agreements, the Schedule and appendices hereto and thereto contain the entire agreement between the parties with respect to the subject matter hereof, supersede all previous agreements, negotiations, discussions, writings, understandings, commitments, and conversations with respect to such subject matter and there are no agreements or understandings between the parties with respect to such subject matter other than those set forth or referred to herein or therein.

 

Section 5.16                             Counterparts. This Agreement may be executed in one or more counterparts, all of which will be considered one and the same agreement, and will become effective when one or more such counterparts have been signed by each of the parties and delivered to the other party. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic imaging means will be effective as delivery of a manually executed counterpart of this Agreement.

 

Section 5.17                             Severability. If any term or provision of this Agreement is invalid, illegal or incapable of being enforced by any applicable Law or public policy, all other conditions and provisions of this Agreement will nonetheless remain in full force and effect so long as the economic and legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the parties will negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement are consummated as originally contemplated to the fullest extent possible.

 

Section 5.18                             Incorporation by Reference. The Schedule to this Agreement is incorporated herein by reference and made a part of this Agreement as if set forth in full herein.

 

Section 5.19                             Governing Law and Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of Hong Kong. Subject to Section 6.1 of the Master Transaction Agreement, each of the parties hereby submits unconditionally to the jurisdiction of, and agrees that venue shall lie exclusively in, the courts located in Hong Kong for purposes of the resolution of any disputes arising under this Agreement.

 

[Signature page follows]

 

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IN WITNESS WHEREOF, each of the parties has caused this Agreement to be duly executed as of the date first written above.

 

	
 
    	
AMTD Group Company Limited
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Marcellus Wong
    
	
 
    	
Name:
    	
Marcellus Wong
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AMTD International Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Calvin Choi
    
	
 
    	
Name:
    	
Calvin Choi
    
	
 
    	
Title:
    	
Director
    

 

 

SCHEDULE
 SERVICES

 

Types of Services:

 

1.                                      Administrative Support Services, including but not limited to secretarial support, event management, conference management, and other day-to-day office support services.

 

2.                                      Marketing and Branding Support Services, including but not limited to advertising and promotional events, production of publications and/or brochures.

 

3.                                      Technology Support Services, including but not limited to network design, optimization and maintenance, system support and upgrade, technology and infrastructure support, management of information technology equipment, technical support and disaster recovery, and complementary product development.

 

4.                                      Provision of Office Space and Facilities.

 

Provider: AMTD Parent or an Affiliate of AMTD Parent

 

Recipient: AMTD International or an Affiliate of AMTD International

 

Scope and Annual Volume of Each Type of Services: Based on the Recipient’s reasonable request subject to the terms of this Agreement, provided that the Provider actually performs such Service for itself or its Affiliates.

 

Prices for Services:

 

1.                                      Administrative Support Services: Fixed rate of HK$24,000,000 per year.

 

2.                                      Marketing and Branding Support Services: To be determined based on actual usage.

 

3.                                      Technology Support Services: To be determined based on actual usage.

 

4.                                      Provision of Office Space and Facilities: To be determined based on actual space occupied.

 

Required Notice Period for Termination by Recipient Pursuant to Section 4.2 of this Agreement: 30 days

 

Required Notice Period for Termination by Recipient Pursuant to Section 4.3 of this Agreement: 30 days

 

Schedule-1-1

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