Document:

Exhibit 10.1

 

 

AMENDMENT NO. 1 (this “Amendment”), dated as of April 29, 2015, to the Credit Agreement dated as of June 24, 2014 (the “Credit Agreement”), among OLIN CORPORATION, a Virginia corporation (the “Company”), OLIN CANADA ULC, an unlimited company amalgamated under the laws of Nova Scotia (the “Canadian Borrower”), the Lenders and Issuing Banks party thereto from time to time, and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent.

RECITALS

A.             Pursuant to the Credit Agreement, the Lenders and the Issuing Banks have extended credit to the Company and the Canadian Borrower, in each case on the terms and subject to the conditions set forth therein.

B.            The Company and the Canadian Borrower have requested that the Credit Agreement be amended as set forth herein.

C.            The Lenders are willing to agree to such amendments on the terms and conditions set forth herein.

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

ARTICLE 1

DEFINITIONS

1.1            Definitions.  Except as otherwise expressly provided herein, capitalized terms used in this Amendment shall have the meanings given to them in Section 1.01 of the Credit Agreement.

1.2            Rules of Interpretation.  Except as otherwise expressly provided herein, the rules of interpretation set forth in Section 1.02 of the Credit Agreement shall apply mutatis mutandis to this Amendment.

ARTICLE 2

AMENDMENTS

2.1            Additional Definitions.  Section 1.01 of the Credit Agreement is hereby amended by adding the following definitions in appropriate alphabetical order:

“DCP Acquisition” means the acquisition by the Company, directly or indirectly, of The Dow Chemical Company’s chlorine products business and related assets.

“Guarantee Agreement” means the Guarantee Agreement substantially in the form attached hereto as Exhibit F, with such changes thereto as shall be agreed by the Administrative Agent, together with each supplement thereto, in each case that may be executed and delivered by one or more Guarantors and the Administrative Agent.

 

 

  

“Guarantor” means each Subsidiary that is or, at the election of the Company becomes, a party to the Guarantee Agreement, for so long as such Subsidiary is a party thereto.

2.2            Amended Definitions.  Section 1.01 of the Credit Agreement is hereby amended by amending and restating the following definitions:

“Consolidated Total Debt” means, at any date, the aggregate principal amount of all Indebtedness of the Company and its Subsidiaries at such date, determined on a consolidated basis in accordance with GAAP; provided that, at any time prior to the closing of the DCP Acquisition, the amount of any Indebtedness incurred to finance the DCP Acquisition in whole or in part shall be reduced by the cash proceeds thereof at the time held by the Company or any Domestic Subsidiary in a segregated account pending the consummation of the DCP Acquisition.

“Loan Documents” means this Agreement, the Guarantee Agreement (if and when executed) and the Notes.

2.3            Section 5.01(b) (Consolidated Leverage Ratio).  Section 5.01(b) of the Credit Agreement is hereby amended by adding at the end thereof the words “; provided that for each of the first six Reference Periods ending on the date of or after the consummation of the DCP Acquisition, such maximum permitted Consolidated Leverage Ratio shall be 4.50:1.0 and that for the next following Reference Period, such maximum permitted Consolidated Leverage Ratio shall be 4.25:1.0”.

2.4            Section 5.01(c) (Consolidated Interest Coverage Ratio).  Section 5.01(c) of the Credit Agreement is hereby amended by adding at the end thereof the words “; provided that for each Reference Period ending on the date of or after the consummation of the DCP Acquisition, such minimum Consolidated Interest Coverage Ratio shall be 3.50:1.00”.

2.5            Section 5.02(b) (Domestic Subsidiary Indebtedness).  Section 5.02(b) of the Credit Agreement is hereby amended by (i) deleting the word “and” at the end of clause (iv) thereof, (ii) deleting the “.” at the end of clause (v) thereof and substituting in lieu thereof “; and” and (iii) adding the following new clause (vi) at the end thereof:

“(vi) on and after the date of consummation of the DCP Acquisition, Indebtedness of any Domestic Subsidiary that is a Guarantor.”

2.6            Additional Exhibits.  Exhibit I hereto is hereby added to the Credit Agreement as Exhibit F.

ARTICLE 3

MISCELLANEOUS

3.1            Effectiveness.  This Amendment is effective as of the date hereof upon its execution and delivery by the Company, the Canadian Borrower and Lenders constituting the Majority Lenders.  The Administrative Agent shall promptly notify the Lenders of the occurrence of the effectiveness of this Amendment.

 

 

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3.2            Representations and Warranties.  The Company hereby represents and warrants to the Lenders and the Administrative Agent that (a) after giving effect to this Amendment, the representations and warranties set forth in Section 4.01 of the Credit Agreement are correct in all material respects on and as of the date hereof as though made on and as of the date hereof and (b) no event has occurred and is continuing which constitutes an Event of Default or which would constitute an Event of Default but for the requirement that notice be given or time elapse or both.

3.3            No Waiver.  Except as specifically amended or modified pursuant to the terms of this Amendment, the terms and conditions of the Credit Agreement and the other Loan Documents remain in full force and effect.  Nothing herein shall limit in any way the rights and remedies of the Lenders, the Administrative Agent or any Issuing Bank under the Credit Agreement (as amended and modified hereby) and the other Loan Documents.

3.4            Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original, and all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page to this Amendment by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Amendment.

3.5            Governing Law.  This Amendment and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon arising out of or relating to this Amendment and the transactions contemplated hereby shall be governed by, and construed in accordance with, the law of the State of New York.

[Signature page follows.]

 

 

 

 

 

 

 

 

 

 

 

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IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed by their officers or members, duly authorized as of the day and year first above written.

 

	 	
Borrowers

	
	 			
	 	
OLIN CORPORATION

	
	 	 	 	 
	
 

	
By: 

	/s/ Stephen C. Curley	 
	 	 	Name:  Stephen C. Curley	 
	 	 	Title:    Vice President & Treasurer	 

	 	
OLIN CANADA ULC

	
	 	 	 	 
	
 

	
By: 

	/s/ Stephen C. Curley	 
	 	 	Name:  Stephen C. Curley	 
	 	 	Title:    Vice President & Treasurer	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

	 	
Administrative Agent and Lender

	
	 			
	 	
WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent and Lender

	
	 	 	 	 
	
 

	
By: 

	/s/ Daniel R. Van Aken	 
	 	 	Name:  Daniel R. Van Aken	 
	 	 	Title:    Director	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

	 	
Lenders

	
	 			
	 	
BANK OF AMERICA, N.A., as a Lender 

	
	 	 	 	 
	
 

	
By: 

	/s/ Eric A. Escagne	 
	 	 	Name:  Eric A. Escagne	 
	 	 	Title:    Senior Vice President	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

	 	
Lenders

	
	 			
		
CITIBANK, N.A., as a Lender

	
	 	 	 	 
	
 

	
By: 

	/s/ Carolyn Kee	 
	 	 	Name:  Carolyn Kee	 
	 	 	Title:    Vice President	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

	 	
Lenders

	
	 			
		
PNC BANK, NATIONAL ASSOCIATION,

	
	 	
as a Lender

	
	 	 	 	 
	
 

	
By: 

	/s/ Thomas S. Sherman	 
	 	 	Name:  Thomas S. Sherman	 
	 	 	Title:    Senior Vice President	 
	 	 	 	 

 

 

 

 

 

EXHIBIT I TO AMENDMENT NO. 1

 

 

	
 

 

 

 

 

[FORM OF]

 

GUARANTEE AGREEMENT

 

dated as of

 

[                 ], 20[  ],

 

among

 

OLIN CORPORATION,

 

OLIN CANADA ULC,

 

THE SUBSIDIARIES OF THE COMPANY

IDENTIFIED HEREIN

 

and

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

 

as Administrative Agent

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

	
ARTICLE I

 Definitions

	 	 	 
	
SECTION 1.01.

	
Defined Terms

	
1

	
SECTION 1.02.

	
Other Defined Terms

	
1

	 
	
ARTICLE II

 Guarantee

	 
	
SECTION 2.01.

	
Guarantee

	
2

	
SECTION 2.02.

	
Guarantee of Payment; Continuing Guarantee

	
3

	
SECTION 2.03.

	
No Limitations

	
3

	
SECTION 2.04.

	
Reinstatement

	
4

	
SECTION 2.05.

	
Agreement to Pay; Subrogation

	
4

	
SECTION 2.06.

	
Information

	
5

	 
	
ARTICLE III

 Indemnity, Subrogation, Contribution and Subordination

	 
	
SECTION 3.01.

	
Indemnity and Subrogation

	
5

	
SECTION 3.02.

	
Contribution and Subrogation

	
5

	
SECTION 3.03.

	
Subordination

	
5

	 	 	 
	
ARTICLE IV

 Miscellaneous

	 
	
SECTION 4.01.

	
Notices

	
6

	
SECTION 4.02.

	
Waivers; Amendment

	
6

	
SECTION 4.03.

	
Administrative Agent’s Fees and Expenses; Indemnification

	
7

	
SECTION 4.04.

	
Survival

	
7

	
SECTION 4.05.

	
Counterparts; Effectiveness; Successors and Assigns

	
8

	
SECTION 4.06.

	
Representations and Warranties; Severability

	
8

	
SECTION 4.07.

	
Right of Set-Off

	
8

	
SECTION 4.08.

	
Governing Law; Jurisdiction; Consent to Service of Process

	
9

	
SECTION 4.09.

	
WAIVER OF JURY TRIAL

	
9

	
SECTION 4.10.

	
Headings

	
10

	
SECTION 4.11.

	
Termination or Release

	
10

	
SECTION 4.12.

	
Additional Subsidiaries

	
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GUARANTEE AGREEMENT dated as of [           ] (this “Agreement”), among OLIN CORPORATION, a Virginia corporation (the “Company”), OLIN CANADA ULC, an unlimited company amalgamated under the laws of Nova Scotia (the “Canadian Borrower” and, together with the Company, the “Borrowers”), the Subsidiaries from time to time party hereto as Guarantors and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (in such capacity, the “Administrative Agent”).

Reference is made to the Credit Agreement dated as of June 24, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrowers, the Lenders and the Issuing Banks from time to time party thereto and the Administrative Agent.  The Lenders and Issuing Banks have agreed to extend credit to the Borrowers on the terms and subject to the conditions set forth in the Credit Agreement.  The Guarantors are Affiliates of the Borrowers and will derive substantial benefits from the extension of credit to the Borrowers pursuant to the Credit Agreement and are willing to execute and deliver this Agreement in order to induce the Lenders and the Issuing Banks to extend such credit and as consideration for credit previously extended.  Accordingly, the parties hereto agree as follows:

ARTICLE I

Definitions

SECTION 1.01.  Defined Terms. (a)  Each capitalized term used but not defined herein and defined in the Credit Agreement shall have the meaning specified in the Credit Agreement.

(b)  The rules of construction specified in Section 1.02 of the Credit Agreement also apply to this Agreement, mutatis mutandis.

SECTION 1.02.  Other Defined Terms.  As used in this Agreement, the following terms have the meanings specified below:

“Agreement” has the meaning assigned to such term in the Preamble hereto.

“Borrowers” has the meaning assigned to such term in Preamble hereto.

“Claiming Party” has the meaning assigned to such term in Section 3.02.

“Company” has the meaning assigned to such term in the Recitals hereto.

“Contributing Party” has the meaning assigned to such term in Section 3.02.

 

 

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“Credit Agreement” has the meaning assigned to such term in the Recitals hereto.

“Guarantors” means, collectively, (a) the Subsidiaries initially party hereto as Guarantors and (b) each other Subsidiary that becomes a party to this Agreement pursuant to Section 4.12.

“Indemnified Amount” has the meaning assigned to such term in Section 3.02.

“Loan Parties” means the Borrowers and the Guarantors.

“Obligations” means, collectively, (a) the due and punctual payment by the Borrowers of (i) the principal of and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Advances, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, (ii) each payment required to be made by a Borrower under the Credit Agreement in respect of any Letter of Credit, when and as due, including payments in respect of reimbursement of disbursements, interest thereon and obligations to provide cash collateral, and (iii) all other monetary obligations of the Borrowers under the Credit Agreement and each of the other Loan Documents (including obligations to pay premiums, fees, costs, expenses and indemnification obligations and including obligations in respect of contract causes of action), whether primary, secondary, direct, absolute, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), (b) the due and punctual performance of all other obligations of the Borrowers under or pursuant to the Credit Agreement and each of the other Loan Documents and (c) the due and punctual payment and performance of all the obligations of each Guarantor under or pursuant to this Agreement (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding).

“Supplement” means an instrument substantially in the form of Exhibit I hereto, or any other form approved by the Administrative Agent, and in each case reasonably satisfactory to the Administrative Agent.

ARTICLE II

Guarantee

SECTION 2.01.  Guarantee.  Each Guarantor absolutely, irrevocably and unconditionally guarantees, jointly with the other Guarantors and severally, as a primary obligor and not merely as a surety, the due and punctual payment and performance of the Obligations.  Each Guarantor further agrees that the Obligations may be extended or renewed, in whole or in part, or amended or modified, without notice to or further assent from it, and that it will remain bound upon its guarantee hereunder notwithstanding any extension, renewal, amendment or modification of any Obligation.  Each Guarantor waives presentment to, demand of payment from and protest to the Company or any other Loan Party of any of the Obligations, and also waives notice of acceptance of its guarantee hereunder and notice of protest for nonpayment.

 

 

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SECTION 2.02.  Guarantee of Payment; Continuing Guarantee.  Each Guarantor further agrees that its guarantee hereunder constitutes a guarantee of payment when due (whether or not any bankruptcy, insolvency, receivership or other similar proceeding shall have stayed the accrual or collection of any of the Obligations or operated as a discharge thereof) and not merely of collection, and waives any right to require that any resort be had by the Administrative Agent or any Lender to any security held for the payment of the Obligations or to any balance of any deposit account or credit on the books of the Administrative Agent or any Lender in favor of the Company, any other Loan Party or any other Person.  Each Guarantor agrees that its guarantee hereunder is continuing in nature and applies to all Obligations, whether currently existing or hereafter incurred.

SECTION 2.03.  No Limitations.  (a)  Except for the termination or release of a Guarantor’s obligations hereunder as expressly provided in Section 4.11, the obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or set-off, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the Obligations (or any Loan Document or any instrument related thereto), any impossibility in the performance of the Obligations  (or any Loan Document or any instrument related thereto) or otherwise.  Without limiting the generality of the foregoing, the obligations of each Guarantor hereunder shall not be discharged or impaired or otherwise affected by (i) the failure of the Administrative Agent or any Lender to assert any claim or demand or to enforce any right or remedy under the provisions of any Loan Document or otherwise; (ii) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, any Loan Document or any other agreement (including any change in the time, manner or place of payment of, or any increase in, the Obligations), including with respect to any other Guarantor under this Agreement; (iii) any default, failure or delay, wilful or otherwise, in the performance of any of the Obligations; or (iv) any other act or omission that may or might in any manner or to any extent vary the risk of any Guarantor or otherwise operate as a discharge of any Guarantor as a matter of law or equity (in each case, other than the payment in full in cash of all the Obligations).

(b)  The obligations of each Guarantor under or in respect of this Agreement are independent of the Obligations of any other Loan Party and a separate action may be brought and prosecuted against a Guarantor to enforce its obligations hereunder, irrespective of whether any action is brought against any other Loan Party or whether any other Loan Party is joined in any such action or actions.

 

 

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(c)  To the fullest extent permitted by applicable law, each Guarantor waives any defense it may now have or hereafter acquire in any way relating to any or all of the following: (i) any taking, exchange, release or non-perfection of any collateral, or any taking, release or amendment or waiver of, or consent to departure from, any other guaranty, for all or any of the Obligations, (ii) any manner of application of any collateral, or proceeds thereof, to all or any of the Obligations, or any manner of sale or other disposition of any collateral for all or any of the Obligations or any other obligations of the Borrowers under the Credit Agreement and the Notes or any other assets of the Borrowers or any of their Subsidiaries, (iii) any change, restructuring or termination of the corporate structure or existence of any Loan Party or any Subsidiary thereof, (iv) any failure of the Administrative Agent or any Lender to disclose to any Borrower any information relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of such Borrower now or hereafter known to the Administrative Agent or such Lender (the Guarantors waiving any duty on the part of the Administrative Agent and the Lenders to disclose such information), (v) the failure of any other Person to execute or deliver this Agreement or any other guaranty or agreement or the release or reduction of liability of any Guarantor or other guarantor or surety with respect to the Obligations and (vi) any other circumstance (including, without limitation, any statute of limitations) or any existence of or reliance on any representation by the Administrative Agent or any Lender that might otherwise constitute a defense available to, or a discharge of, a Borrower or any other guarantor or surety.  The Administrative Agent and the Lenders may, at their election, compromise or adjust any part of the Obligations, make any other accommodation with the Company or any other Loan Party or exercise any other right or remedy available to them against the Company or any other Loan Party, without affecting or impairing in any way the liability of any Guarantor hereunder except to the extent the Obligations have been paid in full in cash.  Each Guarantor hereby unconditionally and irrevocably waives (x) any defense arising by reason of any claim or defense based upon an election of remedies by the Administrative Agent or any Lender that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of such Guarantor or other rights of such Guarantor to proceed against any Borrower, any other guarantor or any other Person or any collateral and (y) any defense based on any right of set-off or counterclaim against or in respect of the obligations of such Guarantor hereunder.

SECTION 2.04.  Reinstatement.  Each Guarantor agrees that this Agreement and its guarantee hereunder shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation is rescinded or must otherwise be restored by the Administrative Agent, any Lender or any other Person upon the bankruptcy, insolvency, dissolution, liquidation or reorganization of the Company, any other Loan Party or otherwise.

SECTION 2.05.  Agreement to Pay; Subrogation.  In furtherance of the foregoing and not in limitation of any other right that the Administrative Agent or any Lender has at law or in equity against any Guarantor by virtue hereof, upon the failure of a Borrower or any other Loan Party to pay any Obligation when and as the same shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the Administrative Agent for distribution to the Person entitled thereto in cash the amount of such unpaid Obligation.  Upon payment by any Guarantor of any sums to the Administrative Agent as provided above, all rights of such Guarantor against the Company or any other Loan Party arising as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be subject to Article III.

 

 

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SECTION 2.06.  Information.  Each Guarantor (a) assumes all responsibility for being and keeping itself informed of the Company’s and each other Guarantor’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and (b) agrees that none of the Administrative Agent or the Lenders will have any duty to advise such Guarantor of information known to it or any of them regarding such circumstances or risks.

ARTICLE III

Indemnity, Subrogation, Contribution and Subordination

SECTION 3.01.  Indemnity and Subrogation.  In addition to all such rights of indemnity and subrogation as the Guarantors may have under applicable law (but subject to Section 3.03), each Borrower agrees that in the event a payment in respect of any Obligation of such Borrower shall be made by any Guarantor under this Agreement, such Borrower shall indemnify such Guarantor for the full amount of such payment and such Guarantor shall be subrogated to the rights of the Person to whom such payment shall have been made to the extent of such payment.

SECTION 3.02.  Contribution and Subrogation.  Each Guarantor (each being called a “Contributing Party”) agrees (subject to Section 3.03) that, in the event a payment shall be made by any other Guarantor hereunder in respect of any Obligation and such other Guarantor (the “Claiming Party”) shall not have been fully indemnified by the applicable Borrower as provided in Section 3.01, such Contributing Party shall indemnify the Claiming Party in an amount equal to the amount of such payment (the “Indemnified Amount”), in each case multiplied by a fraction of which the numerator shall be the net worth of such Contributing Party on the date hereof and the denominator shall be the aggregate net worth of all the Contributing Parties on the date hereof (or, in the case of any Contributing Party becoming a party hereto pursuant to Section 4.12, the date of the supplement hereto executed and delivered by such Contributing Party).  Any Contributing Party making any payment to a Claiming Party pursuant to this Section 3.02 shall (subject to Section 3.03) be subrogated to the rights of such Claiming Party under Section 3.01 to the extent of such payment.

SECTION 3.03.  Subordination. (a)  Notwithstanding any provision of this Agreement to the contrary, all rights of the Guarantors under Sections 3.01 and 3.02 and all other rights of the Guarantors of indemnity, contribution or subrogation in respect of payments hereunder under applicable law or otherwise shall be fully subordinated to the payment in full in cash of the Obligations.  If any amount shall be paid to a Guarantor in violation of the immediately preceding sentence at any time prior to the later of (a) the payment in full in cash of the Obligations and (b) the applicable Termination Date, such amount shall be received and held in trust for the Administrative Agent and the Lenders, shall be segregated from other property and funds of such Guarantor and shall forthwith be paid or delivered to the Administrative Agent in the same for as so received (with any necessary endorsement or assignment) to be credited and applied to the Obligations, whether matured or unmatured, in accordance with the terms of this Agreement or to be held as collateral for any Obligations or other amounts payable under this Agreement thereafter arising. No failure on the part of a Borrower or any Guarantor to make the payments required by Sections 3.01 and 3.02 (or any other payments required under applicable law or otherwise) shall in any respect limit the obligations and liabilities of any Guarantor with respect to its obligations hereunder, and each Guarantor shall remain liable for the full amount of the obligations of such Guarantor hereunder.

 

 

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(b)  Each Guarantor and the Company hereby agrees that all Indebtedness and other monetary obligations owed by it to, or to it by, any other Guarantor or the Company shall be fully subordinated to payment in full in cash of the Obligations.

ARTICLE IV

Miscellaneous

SECTION 4.01.  Notices.  All communications and notices hereunder shall (except as otherwise expressly permitted herein) be in writing and given in the manner provided in Section 10.02 of the Credit Agreement.  All communications and notices hereunder to any Guarantor shall be given to it in care of the Company in the manner provided in Section 10.02 of the Credit Agreement.

SECTION 4.02.  Waivers; Amendment.  (a)  No failure or delay by the Administrative Agent, any Issuing Bank or any Lender in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent, the Issuing Banks and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement or consent to any departure by the Company or any other Loan Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section 4.02, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  No notice or demand on any Loan Party in any case shall entitle such Loan Party to any other or further notice or demand in similar or other circumstances.

(b)  Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Administrative Agent (with the written consent of the Majority Lenders) and the Company or Loan Parties with respect to which such waiver, amendment or modification is to apply, subject to any consent required in accordance with Section 10.01 of the Credit Agreement.

 

 

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(c)  This Agreement shall be construed as a separate agreement with respect to each Loan Party and may be amended, modified, supplemented, waived or released with respect to any Loan Party without the approval of any Loan Party and without affecting the obligations of any other Loan Party hereunder.

SECTION 4.03.  Administrative Agent’s Fees and Expenses; Indemnification.  (a)  The Guarantors jointly and severally agree to reimburse the Administrative Agent for its fees and expenses incurred hereunder as provided in Section 10.04(a) of the Credit Agreement as if each reference therein to the Company were a reference to the Guarantors.

(b)  The Guarantors jointly and severally agree to indemnify and hold harmless each Indemnified Party as provided in Section 10.06 of the Credit Agreement as if each reference to the Company therein were a reference to the Guarantors.

(c)  All amounts due under Section 4.03(a) or 4.03(b) shall be payable promptly after written demand therefor.

(d)  BY ACCEPTING THE BENEFITS OF THIS AGREEMENT AND THE GUARANTEES CREATED HEREBY, EACH LENDER ACKNOWLEDGES THE PROVISIONS OF ARTICLE VIII OF THE CREDIT AGREEMENT AND AGREES TO BE BOUND BY SUCH PROVISIONS AS FULLY AS IF THEY WERE SET FORTH HEREIN.

SECTION 4.04.  Representations and Warranties; Survival. 

(a)  Each Loan Party represents and warrants to the Administrative Agent and the Lenders that it is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization except where the failure to do so, individually or in the aggregate, could not reasonably be expected to materially and adversely affect the ability of such Loan Party to perform its obligations under any Loan Document.

(b)  Each Loan Party represents and warrants to the Administrative Agent and the Lenders that this Agreement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

(c)  All covenants, agreements, representations and warranties made by any Loan Party herein shall be considered to have been relied upon by the Administrative Agent, the Lenders and the Issuing Banks and shall survive the execution and delivery of the this Agreement and the making of any Advances and issuance of any Letters of Credit, regardless of any investigation made by or on behalf of the Administrative Agent, any Lender, any Issuing Bank or any other Person and notwithstanding that the Administrative Agent, any Lender, any Issuing Bank or any other Person may have had notice or knowledge of any default or incorrect representation or warranty at the time any Loan Document is executed and delivered or any credit is extended under the Credit Agreement, and shall continue in full force and effect as long as the principal of or any accrued interest on any Advance or any fee or any other amount payable under the Credit Agreement is outstanding and unpaid or any Letter of Credit or unreimbursed Revolving Advance by an Issuing Bank pursuant to Section 2.02(b)(iii) of the Credit Agreement is outstanding and so long as the Commitments have not expired or terminated.  The provisions of this Section 4.04 shall survive and remain in full force and effect regardless of the repayment of the Advances, the expiration or termination of the Letters of Credit (other than any Letter of Credit that has been Cash Collateralized) and the Commitments or the termination of this Agreement or any provision hereof.

 

 

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SECTION 4.05.  Counterparts; Effectiveness; Successors and Assigns.  This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original but all of which when taken together shall constitute a single contract.  This Agreement shall become effective as to any Loan Party when a counterpart hereof executed on behalf of such Loan Party shall have been delivered to the Administrative Agent and a counterpart hereof shall have been executed on behalf of the Administrative Agent, and thereafter shall be binding upon such Loan Party and the Administrative Agent and their respective successors and assigns, and shall inure to the benefit of such Loan Party, the Administrative Agent and the other Lenders and their respective successors and assigns, except that no Loan Party may assign or otherwise transfer any of its rights or obligations hereunder or any interest herein (and any attempted assignment or transfer by any Loan Party shall be null and void), except as expressly contemplated by this Agreement or the Credit Agreement.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic imaging shall be effective as delivery of a manually executed counterpart of this Agreement.

SECTION 4.06.  Severability.  Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

SECTION 4.07.  Right of Set-Off.  Upon (a) the occurrence and during the continuance of any Event of Default and (b) the making of the request or the granting of the consent specified by Section 6.01 of the Credit Agreement to authorize the Administrative Agent to declare the Notes due and payable pursuant to the provisions of Section 6.01 of the Credit Agreement, each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender to or for the credit or the account of any Guarantor against any and all of the obligations of such Guarantor now or hereafter existing under any Loan Documents whether or not such Lender shall have made any demand under the Credit Agreement or the Note held by such Lender and although such obligations may be unmatured.  Each Lender agrees promptly to notify the applicable Guarantor after any such set-off and application, provided that the failure to give such notice shall not affect the validity of such set-off and application.  The rights of each Lender under this Section are in addition to other rights and remedies (including, without limitation, other rights of set-off) that such Lender may have.

 

 

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SECTION 4.08.  Governing Law; Jurisdiction; Consent to Service of Process.  (a)  This Agreement shall be governed by, and construed in accordance with, the law of the State of New York.

(b)  Each party hereto irrevocably and unconditionally submits, for itself and its property, to the nonexclusive  jurisdiction of any New York State court or federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each Loan Party hereby irrevocably and unconditionally agrees that all claims arising out of or relating to this Agreement brought by it or any of its Affiliates may be brought, and may be heard and determined, in such New York State or, to the extent permitted by law, in such Federal court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Agreement or any of the other Loan Documents in the courts of any jurisdiction.

(c)  Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any New York State or federal court sitting in New York City.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

(d)  Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 4.01.  Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

SECTION 4.09.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 4.09.

 

 

10

  

SECTION 4.10.  Headings.  Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

SECTION 4.11.  Termination or Release.  (a)  This Agreement and the Guarantees made herein shall, subject to Section 2.04, terminate and be released when all the Obligations (other than contingent obligations for indemnification, expense reimbursement, tax gross up or yield protection as to which no claim has been made) have been paid in full in cash, the Lenders have no further commitment to lend under the Credit Agreement, the aggregate Available Amount of all Letters of Credit outstanding at such time that have not been Cash Collateralized plus the aggregate principal amount of all Revolving Advances made by an Issuing Bank pursuant to Section 2.02(b)(iii) of the Credit Agreement that have not been ratably funded by the Lenders, in each case has been reduced to zero and the Issuing Banks have no further obligations to issue, amend or extend Letters of Credit under the Credit Agreement.

(b)  At the request and sole expense of the Company, a Guarantor shall be released from its obligations under this Agreement in the event that (i) such Guarantor shall cease to be a Subsidiary in a transaction not prohibited by the Credit Agreement or (ii) such Guarantor (after giving effect to such release) would not be an obligor under any Indebtedness other than Indebtedness that would be permitted under Section 5.02(b) of the Credit Agreement.

(c)  In connection with any termination or release pursuant to this Section 4.11, the Administrative Agent shall execute and deliver to the Company or any Guarantor, at such Person’s expense, all documents that such Person shall reasonably request to evidence such termination or release.  Any execution and delivery of documents by the Administrative Agent pursuant to this Section 4.11 shall be without recourse to or warranty by the Administrative Agent.

SECTION 4.12.  Additional Subsidiaries.  Upon the execution and delivery by the Administrative Agent and any Subsidiary of a Supplement, such Subsidiary shall become a Guarantor hereunder, with the same force and effect as if originally named as such herein.  The execution and delivery of any Supplement shall not require the consent of any other Loan Party.  The rights and obligations of each Loan Party hereunder shall remain in full force and effect notwithstanding the addition of any new Guarantor as a party to this Agreement.

[Signature Pages Follow]

 

 

 

  

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.

 

	 	OLIN CORPORATION,	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

 

 

	 	OLIN CANADA ULC,	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

 

 

	 	[OTHER SUBSIDIARY PARTIES],	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

 

 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as

 Administrative Agent,	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

 

 

 

EXHIBIT I

TO THE GUARANTEE

AGREEMENT

 

SUPPLEMENT NO. __ dated as of [  ] (this “Supplement”), to the Guarantee Agreement dated as of [  ] (the “Guarantee Agreement”), among OLIN CORPORATION, a Virginia corporation (the “Company”), OLIN CANADA ULC, an unlimited company amalgamated under the laws of Nova Scotia (the “Canadian Borrower” and, together with the Company, the “Borrowers”), each subsidiary of the Company party thereto as a Guarantor (each such subsidiary individually a “Guarantor” and, collectively, the “Guarantors”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (in such capacity, the “Administrative Agent”).

A.  Reference is made to the Credit Agreement dated as of June 24, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrowers, the lenders from time to time party thereto and the Administrative Agent.

B.  Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Guarantee Agreement and the Credit Agreement, as applicable.

C.  The Guarantors have entered into the Guarantee Agreement in order to induce the Lenders and the Issuing Banks to make extensions of credit to the Borrowers under the Credit Agreement, and as consideration for such extensions of credit previously made.  Section 4.12 of the Guarantee Agreement provides that additional Subsidiaries may become Guarantors under the Guarantee Agreement by execution and delivery of an instrument in the form of this Supplement.  The undersigned Subsidiary (the “New Subsidiary”) is executing this Supplement to become a Guarantor under the Guarantee Agreement in order to induce the Lenders and the Issuing Banks to make additional extensions of credit under the Credit Agreement and as consideration for such extensions of credit previously made.

Accordingly, the Administrative Agent and the New Subsidiary agree as follows:

SECTION 1.  In accordance with Section 4.12 of the Guarantee Agreement, the New Subsidiary by its signature below becomes a Guarantor under the Guarantee Agreement with the same force and effect as if originally named therein as such, and the New Subsidiary hereby agrees to all the terms and provisions of the Guarantee Agreement applicable to it in such capacities. Each reference to a “Guarantor” in the Guarantee Agreement shall be deemed to include the New Subsidiary.  The Guarantee Agreement is hereby incorporated herein by reference.

SECTION 2.  The New Subsidiary represents and warrants to the Administrative Agent and the Lenders that (a) it is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization except where the failure to do so, individually or in the aggregate, could not reasonably be expected to materially and adversely affect the ability of the New Subsidiary to perform its obligations under any Loan Document and (b) this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

 

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SECTION 3.  This Supplement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Supplement shall become effective when a counterpart hereof executed on behalf of the New Subsidiary shall have been delivered to the Administrative Agent and a counterpart hereof shall have been executed on behalf of the Administrative Agent.  Delivery of an executed counterpart of a signature page of this Supplement by facsimile or other electronic imaging shall be effective as delivery of a manually executed counterpart of this Supplement.

SECTION 5.  Except as expressly supplemented hereby, the Guarantee Agreement shall remain in full force and effect.

SECTION 6.  THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

SECTION 7.  Any provision of this Supplement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction

SECTION 8.  All communications and notices hereunder shall be in writing and given as provided in Section 4.01 of the Guarantee Agreement.

SECTION 9.  The New Subsidiary agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses, including the reasonable fees, charges and disbursements of counsel, incurred by it in connection with this Supplement, including the preparation, execution and delivery thereof.

IN WITNESS WHEREOF, the New Subsidiary and the Administrative Agent have duly executed this Supplement to the Guarantee Agreement as of the day and year first above written.

[Remainder of page left intentionally blank]

 

 

	 	[NAME OF NEW SUBSIDIARY],	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

 as Administrative Agent	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title:Exhibit 4.13

 

Equity Pledge Agreement 

 

This Equity Pledge Agreement (the “Agreement”)
is entered into as of August 20, 2014 by and among the following Parties in Beijing, People’s Republic of China (the “PRC”):

 

		Party A:	TIANJIN VENUS TECHNOLOGY CO., LTD. (the “Pledgee”),
a wholly foreign-owned enterprise incorporated and existing under the laws of the PRC, with its registered address at 15 Jingbin
Avenue, Jingbin Industrial Park, Wuqing District, Tianjin;

 

		Party B:	LEO OU CHEN (the “Pledgor”),
a Chinese citizen with Chinese ID No. ***; and

 

		Party C:	TIANJIN YINGXUN TECHNOLOGY CO., LTD., a limited
liability company incorporated and existing under the laws of the PRC, with its registered address at 15 Jingbin Avenue, Jingbin
Industrial Park, Wuqing District, Tianjin.

 

In this Agreement, each of the Pledgee, the Pledgor and Party
C shall be referred to individually as a “Party” or collectively as the “Parties”.

 

Whereas: 

 

		1.	The Pledgor is a citizen of China who as of the date hereof holds RMB1.6 million in the registered capital of Party C. The
Pledgor owns 80.00% equity interest in the registered capital of Party C. Party C acknowledges the respective rights and obligations
of the Pledgor and the Pledgee under this Agreement, and intends to provide any necessary assistance in registering the Pledge;

 

		2.	The Pledgee is a wholly foreign-owned enterprise registered in China.

 

		3.	Parties, or two of the Parties to this Agreement have executed Transaction Agreements (as defined below).

 

		4.	As a guarantee for the performance of the Transaction Agreements entered into by and between the Pledgor and Party C, the Pledgor
pledges to the Pledgee all of the equity interest held by him in Party C.

 

NOW, THEREFORE, the Parties hereby agree as follows upon mutual
discussion:

 

		1.	Definitions 

 

Unless otherwise provided herein, the terms below shall
have the following meanings in this Agreement:

 

		1.1	Pledge: means the security interest granted by the Pledgor to the Pledgee pursuant to Section 2 of this Agreement,
i.e., the right of the Pledgee whereby any proceeds received from auction or sale of the Pledged Equity Interest shall be first
applied towards the repayment of Secured Indebtedness to the Pledgee.

 

		1.2	Pledged Equity Interest: means all of the existing and future equity interests in Party C legitimately owned by the
Pledgor and all of the existing and future rights and interests owned by the Pledgor in respect of such equity interests.

 

		1.3	Term of Pledge: means the term set forth in Section 3 of this Agreement.

 

		1.4	Transaction Agreements: means the Exclusive Consulting Services Agreement entered into by and between the Pledgee and
Party C on August 20, 2014, and the Exclusive Option Agreement and the Shareholders’ Voting Rights Agreement entered into
by and among the Parties and Yusen Dai on August 20, 2014, and the relevant documents executed and to be executed (if any), and
any amendments, revisions and/or restatements to the aforesaid documents.

 

		1.5	Contract Obligations: means all of the obligations and liabilities of the Pledgor under the Transaction Agreements and
this Agreement, and all of the obligations and liabilities of Party C under the Transaction Agreements and this Agreement.

 

    	 

    	 

    

 

		1.6	Secured Indebtedness: means all direct, indirect, consequential losses and loss of projectable benefits as may be suffered
by the Pledgee as a result of any Event of Default (as defined below) of the Pledgor and/or Party C, of which the basis for the
amount of such losses includes without limitation reasonable business plans and profit forecasts of the Pledgee, any and all the
principals, interest, service fees or other fees that the Pledgee is entitled to receive under the Transaction Agreements and this
Agreement, as well as any and all expenses as may be incurred by the Pledgee in connection with its enforcement for the performance
of Contractual Obligations against the Pledgor and/or Party C (including but not limited to the legal fees, arbitration costs,
valuation and auction costs of the Pledged Equity Interest, tax and other costs).

 

		1.7	Event of Default: means any of the circumstances set forth in Section 7 of this Agreement.

 

		1.8	Notice of Default: means the notice issued by the Pledgee in accordance with this Agreement declaring an Event of Default.

 

		2.	The Pledge 

 

		2.1	The Pledgor hereby agrees to pledge to the Pledgee the Pledged Equity Interest that the Pledgor legally owns and has right
to dispose of, as security for the repayment of the Secured Indebtedness and the full performance of the Contract Obligations.
Party C hereby agrees for the Pledgor to so pledge the Pledged Equity Interest to the Pledgee in accordance with the terms hereof.

 

		2.2	During the Term of Pledge, the Pledgee is entitled to receive any dividends or distributions in respect of the Pledged Equity
Interest. With the prior written consent of the Pledgee, the Pledgor may collect such dividends or distributions in respect of
the Pledged Equity Interest. Any dividends or distributions received by the Pledgee in respect of the Pledged Equity Interest shall,
upon the Pledgee’s request, (1) be deposited into a bank account designated by the Pledgee, be placed under the custody
of the Pledgee, and be first applied towards full satisfaction of the Secured Indebtedness; or (2) to the extent permitted
by PRC laws, be unconditionally transferred to the Pledgee or any person designated by the Pledgee without consideration.

 

		2.3	The Pledgor may not increase capital of Party C except with prior written consent of the Pledgee. Any increase in the capital
contributed by the Pledgor to the registered capital of Party C as a result of any capital increase shall equally become part of
the Pledged Equity Interest.

 

		2.4	In the event that Party C is to be dissolved or liquidated as required by any mandatory rules of the PRC laws, upon the completion
of such dissolution or liquidation procedure, any proceeds distributed by Party C to the Pledgor by laws shall, upon the Pledgee’s
request, (1) be deposited into a bank account designated by the Pledgee, be placed under custody of the Pledgee, and be first
applied towards full satisfaction of the Secured Indebtedness; or (2) to the extent permitted by PRC laws, be transferred
to the Pledgee or any person designated by the Pledgee without consideration.

 

		3.	Term of Pledge 

 

		3.1	The Pledge shall become effective on such date when the pledge of the Equity Interest contemplated herein is registered with
the relevant administration for industry and commerce (the “AIC”). The Pledge shall remain effective until all Contract
Obligations have been fully performed or all Secured Indebtedness has been fully paid. The Pledgor and Party C shall (1) register
the Pledge in the shareholders’ register of Party C within 3 business days following the execution of this Agreement, and
(2) submit an application to the AIC for the registration of the Pledge of the Equity Interest contemplated herein within
10 business days following the execution of this Agreement. The Pledgor and Party C shall submit all necessary documents and complete
all necessary procedures, as required by the relevant PRC laws and regulations and the competent AIC, to ensure that the Pledge
of the Equity Interest shall be registered with the AIC as soon as possible after submission for filing.

 

		3.2	During the Term of Pledge, in the event the Pledgor and/or Party C fail to fulfill the Contract Obligations, the Pledgee shall
be entitled to, but not be obliged to, dispose of the Pledge in accordance with the terms hereof.

 

		4.	Custody for Certificates of the Pledge 

 

		4.1	During the Term of Pledge, the Pledgor shall deliver to the Pledgee the certificate of capital contributions to the Pledged
Equity Interest and the register of shareholders which records the Pledge within one week from the execution of this Agreement.
The Pledgee will place such documents in custody during the Term of Pledge.

 

    	 

    	 

    

 

		5.	Representations and Warranties of the Pledgor and Party C 

 

The Pledgor and Party C hereby severally and jointly
represent and warrant to the Pledgee as of the date hereof as follows:

 

		5.1	The Pledgor is the sole legal owner of the Pledged Equity Interest.

 

		5.2	The Pledgor is entitled to dispose of and transfer the Pledged Equity Interest in accordance with the terms of this Agreement.

 

		5.3	Except for the Pledge, the Pledgor has not created any other pledges or other security interest on the Pledged Equity Interest.

 

		5.4	The Pledgor and Party C have obtained all necessary approvals and permits from relevant third parties and government authorities
(if any) in connection with the execution, delivery and performance of this Agreement.

 

		5.5	The execution, delivery and performance of this Agreement do not (i) result in any violation of any applicable PRC laws;
(ii) result in any conflict with the articles of association or other constituent documents of Party C; (iii) result
in any violation of any agreement to which it is a party or by which it is bound, or constitute any default under any agreement
to which it is a party or by which it is bound; (iv) result in any breach of any permit or license issued or granted to it
and/or any condition of the validity thereof; or (v) result in the revocation or suspension of, or imposition of conditions
on, any permit or license issued to it.

 

		6.	Undertakings by the Pledgor and Party C 

 

		6.1	During the Term of Pledge, the Pledgor and Party C severally and jointly undertake to the Pledgee that:

 

		6.1.1	Without the prior written consent of the Pledgee, the Pledgor shall not transfer the Pledged Equity Interest, create or permit
to be created any security interest or other encumbrances on the Pledged Equity Interest,

 

		6.1.2	The Pledgor and Party C shall comply with the provisions of all the laws and regulations relating to the pledge of rights,
and shall, within five (5) days upon receipt of any notice, order or recommendation issued or promulgated by relevant competent
authorities regarding the Pledge, present such notice, order or recommendation to the Pledgee, and concurrently comply with the
such notice, order or recommendation, or object thereto upon the reasonable request or consent of the Pledgee;

 

		6.1.3	The Pledgor and Party C shall promptly notify the Pledgee of any event or notice received by the Pledgor that may have an impact
on the Pledged Equity Interest or any portion thereof, and that may change any undertakings and obligations of the Pledgor hereunder
or may have an impact on the fulfillment of any obligations by the Pledgor hereunder.

 

		6.1.4	Without prior written consent of the Pledgee, the Pledgor and Party C shall not intentionally conduct any act or action which
will or will likely reduce the value of the Pledged Equity Interest or undermine the validity of the Pledge hereunder. The Pledgor
and Party C further undertake that, during the term of this Agreement, they shall ensure the operations of Party C are in compliance
with the PRC laws in all material aspects and maintain the validity of the operational licenses and permits of Party C.

 

		6.1.5	Party C shall complete its business term extension registration formalities three (3) months prior to the expiry of its
business term such that the validity of this Agreement shall be maintained.

 

		6.2	The Pledgor agrees that the rights granted to the Pledgee in respect of the Pledge hereunder shall not be terminated or harmed
by any legal procedure initiated by the Pledgor, any successors of the Pledgor or his entrusting party or any other persons.

 

		6.3	The Pledgor undertakes to the Pledgee that in order to protect or perfect the security for the Secured Indebtedness, the Pledgor
shall execute in good faith and cause other parties who have interests in the Pledge to execute all the certificates of rights,
instruments, agreements, and/or perform and procure other parties who have interests in the Pledge to perform acts as required
by the Pledgee, facilitate the exercise of the Pledgee’s rights granted hereunder and enter into all relevant documents regarding
ownership of the Pledged Equity Interest with the Pledgee or any person (individual or legal person) designated by the Pledgee,
as well as provide Pledgee with all notices, orders and decisions regarding the Pledge as required by the Pledgee within a reasonable
period of time.

 

    	 

    	 

    

 

		6.4	The Pledgor hereby undertakes to comply with and perform all the undertakings, representations and warranties and terms hereunder.
In the event that the Pledgor fails to perform or fails to fully perform such undertakings, representations and warranties and
terms hereunder, he shall indemnify the Pledgee against all the losses arising therefrom.

  

		7.	Event of Default 

 

		7.1	Each of the following circumstances shall constitute an Event of Default:

 

		7.1.1	The Pledgor breaches any of its obligations and liabilities under the Transaction Agreements and/or this Agreement;

 

		7.1.2	Party C breaches any of its obligations and liabilities under the Transaction Agreements and/or this Agreement;

 

		7.1.3	Any loans, guarantee, indemnification, commitment or other indebtedness incurred or assumed by the Pledgor, (1) that are
accelerated and required to be repaid or performed prior to the due date as a result of a default thereunder; or (2) that
have become due but have not been repaid or performed when due, which, in the opinion of the Pledgee, has an adverse impact on
the Pledgor’s ability to perform his obligations under this Agreement;

 

		7.1.4	This Agreement becomes illegal or the Pledgor is unable to continue to perform his obligations under this Agreement as a result
of any promulgation of laws and regulations;

 

		7.1.5	Any approval, permit, license or authorization from any competent government authority as required for the enforceability,
legality or effectiveness of this Agreement is revoked, suspended, invalidated or materially amended;

 

		7.1.6	Any property owned by the Pledgor is adversely altered or damaged which, in the opinion of the Pledgee, has an adverse impact
on the Pledgor’s ability to perform his obligations under this Agreement.

 

		7.2	Should there arise any event set forth in Section 7.1 or any circumstance that may result in the foregoing events, the
Pledgor and Party C shall immediately notify the Pledgee in writing.

 

		7.3	Unless an Event of Default set forth in this Section 7.1 has been remedied at the request of the Pledgee within twenty
(20) days upon receipt of the notice of the Pledgee requesting the rectification of such Event of Default, the Pledgee may
issue a Notice of Default to the Pledgor in writing at any time thereafter, requesting the exercise of the Pledge in accordance
with Section 8 hereof.

 

		8.	Exercise of the Pledge 

 

		8.1	The Pledgee may issue a Notice of Default to the Pledgor for the exercise of the Pledge.

 

		8.2	Subject to the provisions of Section 7.3, the Pledgee may exercise its right to dispose of the Pledge at any time after
the issuance of the Notice of Default in accordance with Section 8.1. Upon the Pledgee’s exercise of its right to dispose
of the Pledge, the Pledgor shall no longer own any right and interest in respect of the Pledged Equity Interest.

 

		8.3	Upon the issuance of the Notice of Default in accordance with Section 8.2, the Pledgee is entitled to exercise all of
the remedies, rights and powers available to it under the PRC laws, the Transaction Agreements and this Agreement, including without
limitation to auction or sell the Pledged Equity Interests for prior satisfaction of indebtedness. The Pledgee shall not be held
liable for any losses arising from its reasonable exercise of such rights and powers.

 

    	 

    	 

    

 

		8.4	The proceeds received by the Pledgee as a result of the exercise of the Pledge shall be first applied towards payment of the
costs and expenses payable in connection with the disposal of the Pledged Equity Interest and the repayment of the Secured Indebtedness
to the Pledgee. Any balance after the deduction of the foregoing payments, if any, shall be returned to the Pledgor or any other
person who is entitled to such balance under applicable laws and regulations, or be deposited with the notary public at the place
where the Pledgee is located (any costs incurred arising out of such deposit shall be borne by the Pledgee); and to the extent
permitted by the PRC laws, the Pledgor shall transfer such balance to the Pledgee or any person designated by the Pledgee without
consideration. If the proceeds received from the disposition of the Pledged Equity Interest are not sufficient to repay the Secured
Indebtedness pursuant to Section 8.3, the Pledgor is obliged to make up the difference.

 

		8.5	The Pledgee shall be entitled to elect to exercise, simultaneously or successively, any of its breach of contract remedies;
the Pledgee shall not be required to first exercise other breach of contract remedies prior to exercising its right to auction
or sell the Pledged Equity Interest hereunder.

 

		8.6	The Pledgee shall be entitled to designate in writing its legal counsel or other agents to exercise on its behalf the Pledge,
and neither the Pledgor nor Party C shall object thereto.

 

		8.7	When the Pledgee disposes of the Pledge in accordance with this Agreement, the Pledgor and Party C shall provide necessary
assistance to the Pledgee for its exercise of the Pledge.

 

		9.	Default Liabilities 

 

The Parties agree and confirm that, if any Party (the
“Defaulting Party”) breaches any of the provisions herein, or fails to perform or delays in the performance
of any obligation under this Agreement, such breach, failure or delay shall constitute a default under this Agreement (the “Default”),
and the non-defaulting Party (the “Non-defaulting Party”) is entitled to require the Defaulting Party to rectify
such Default or take remedial measures within a reasonable period of time. If the Defaulting Party fails to rectify such Default
or take any remedial measures within reasonable period of time or within ten (10) days upon receipt of the written notice
of the Non-defaulting Party, the Non-defaulting Party is entitled to decide, at its sole discretion as follows:

 

		9.1	If the Defaulting Party is the Pledgor or Party C, the Pledgee is entitled to terminate this Agreement and claim damages from
the Defaulting Party;

 

		9.2	If the Defaulting Party is the Pledgee, the Non-defaulting Party is entitled to claim damages from the Defaulting Party; however,
the Non-defaulting Party may not terminate this Agreement in any event unless otherwise provided under the laws; and

 

		9.3	The Non-defaulting Party is entitled to enforce the performance of the obligations herein against the Defaulting Party and
claim damages from the Defaulting Party.

 

The rights and remedies set forth herein shall be cumulative,
and shall not preclude any other rights or remedies entitled to such Party as provided under the laws.

 

The Pledgor agrees to assume the joint and several
liabilities with the other shareholders of Party C for the execution and performance of the equity pledge agreement(s) by such
shareholders. If any shareholder breaches any provision of the equity pledge agreement to which it is a party, the Pledgee is entitled
to claim default liabilities from either shareholder of Party C.

 

		10.	Assignment 

 

		10.1	The Pledgor shall not donate or transfer its rights and obligations herein to any third party without prior written consent
of the Pledgee.

 

		10.2	This Agreement shall be binding upon the Pledgor and its successors and any permitted assignees.

 

		10.3	The Pledgee may assign any or all of its rights and obligations under the Transaction Agreements to any person designated by
it at any time. In this case, the assignee shall enjoy and assume the rights and obligations herein of the Pledgee as if the assignee
were a party hereto. If the Pledgee assigns its rights and obligations under the Transaction Agreements, the Pledgor shall, at
the request of the Pledgee, execute the relevant agreements and/or documents with respect to such assignment.

 

    	 

    	 

    

  

		10.4	In the event of a change of Pledgee due to assignment, the Pledgor shall, at the request of the Pledgee, execute a new pledge
agreement with the new pledgee with the same terms and conditions as this Agreement, and register such new pledge with the relevant
administration for industry and commerce.

 

		10.5	The Pledgor shall strictly comply with the provisions of this Agreement and other agreements to which any Party is a party,
including the Transaction Agreements, and perform the obligations thereunder, and refrain from any action/omission that may affect
the effectiveness and enforceability thereof. Unless with the written instructions of the Pledgee, the Pledgor shall not exercise
his remaining rights in respect of the Pledged Equity Interest.

 

		11.	Termination 

 

		11.1	Upon the full and complete performance by the Pledgor and Party C of all of their Contract Obligations and full satisfaction
of the Secured Indebtedness, the Pledgee shall, upon the Pledgor’s request, release the Pledge hereunder and cooperate with
the Pledgor in relation to both the deregistration of the equity pledge in the shareholders’ register of Party C and the
deregistration of the equity pledge with the relevant industry and commerce administration.

 

		11.2	The provisions under Section 9, Section 13, Section 14 and this Section 11.2 shall survive the termination
of this Agreement.

 

		12.	Costs and Other Expenses 

 

All costs and expenses arising in connection with this
Agreement, including but not limited to the legal fees, processing fees, stamp duty any other taxes and expenses, shall be borne
by Party C.

 

		13.	Confidentiality 

 

The Parties acknowledge and confirm that the terms
of this Agreement and any oral or written information exchanged among the Parties in connection with the preparation and performance
of this Agreement are regarded as confidential information. Each Party shall keep all such confidential information confidential,
and shall not, without prior written consent of the other Party, disclose any confidential information to any third parties, except
for information: (1) that is or will be available to the public (other than through the unauthorized disclosure to the public
by the Party receiving confidential information); (2) that is required to be disclosed pursuant to the applicable laws or
regulations, rules of any stock exchange, or orders of the court or other government authorities; or (3) that is disclosed
by any Party to its shareholders, investors, legal counsels or financial advisors regarding the transaction contemplated hereunder,
provided that such shareholders, investors, legal counsels or financial advisors shall be bound by the confidentiality obligations
similar to the terms set forth in this section. Disclosure of any confidential information by the employees or entities engaged
by any Party shall be deemed as disclosure of such confidential information by such Party, which Party shall be held liable for
breach of contract. This section shall survive the termination of this Agreement upon whatsoever reason.

 

		14.	Governing Law and Disputes Resolution 

 

		14.1	The execution, effectiveness, interpretation, performance, amendment and termination of this Agreement and the resolution of
any disputes hereunder shall be governed by PRC laws.

 

		14.2	Any disputes arising in connection with the implementation and performance of this Agreement shall be settled through consultations
among the Parties, and where no agreement regarding such disputes can be reached by the Parties within thirty (30) days upon
issuance of the written notice by one Party to the other Parties for consultations, such disputes shall be submitted by either
Party to the China International Economic and Trade Arbitration Commission for arbitration in Beijing in accordance with the arbitration
rules thereof. The language to be used in arbitration is Chinese and the arbitration award shall be final and binding on all the
Parties.

 

		14.3	Upon the occurrence of any disputes arising from the interpretation and performance of this Agreement or during the pending
arbitration of any disputes, except for the matters under dispute, the Parties to this Agreement shall continue to exercise their
respective rights and perform their respective obligations hereunder.

 

    	 

    	 

    

 

		15.	Notices 

 

		15.1	All notices and other communications required or permitted to be given pursuant to this Agreement shall be delivered personally
or sent by registered mail, postage prepaid, by a commercial courier service or by facsimile transmission to the designated address
of such party. A confirmation copy of each notice may also be sent by E-mail. The dates on which notices shall be deemed to have
been effectively delivered shall be determined as follows:

 

		1)	Notices given by personal delivery, by courier service or by registered mail, postage prepaid, shall be deemed effectively
delivered on the date of receipt or refusal at the address specified for notices.

 

		2)	Notices given by facsimile transmission shall be deemed effectively delivered on the date of successful transmission (as evidenced
by an automatically generated confirmation of transmission).

 

		15.2	Each Party may at any time change its address for notices by delivering a notice to the other Parties in accordance with the
terms hereof.

 

		16.	Severability 

 

In the event that one or several of the provisions
of this Agreement are found to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the
validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected or compromised in any
respect. The Parties shall strive in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions
that accomplish to the greatest extent permitted by law and the intentions of the Parties, and the economic effect of such effective
provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions.

 

		17.	Miscellaneous Provisions 

 

		17.1	Any amendments, changes and supplements to this Agreement shall be in writing and shall become effective upon execution by
the Parties and completion of the governmental registration procedures (if applicable).

 

		17.2	This Agreement is written in Chinese in three (3) originals, with each of the Pledgor, the Pledgee and Party C holding
one original which shall have the same force.

 

[The following is intentionally left blank]

 

    	 

    	 

    

 

IN WITNESS HEREOF, the Parties have caused
this Equity Pledge Agreement to be executed by their respective authorized representative on the date first above written.

 

	Party A:	TIANJIN VENUS TECHNOLOGY CO., LTD.

 

	(Company seal)	 
	 	 	 	 
	By:	 	/s/ Yusen Dai	 
	Name:	 	Yusen Dai	 
	 	 	 	 
	Title:	 	Legal Representative	 

 

	Party B:	LEO OU CHEN 

 

	By:	 	/s/ Leo Ou Chen	 
	Name:	 	Leo Ou Chen	 

 

	Party C:	TIANJIN YINGXUN TECHNOLOGY CO., LTD.

 

	(Company seal)	 
	 	 	 	 
	By:	 	/s/ Yusen Dai	 
	Name:	 	Yusen Dai	 
	 	 	 	 
	Title:	 	Legal Representative

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