Document:

Exhibit 10.6

 

	

    	
CLIFFORD   CHANCE LLP

高伟绅律师事务所
    

 

EXECUTION VERSION

 

AMTD INTERNATIONAL INC. (THE “COMPANY”)

 

 

INSTRUMENT CONSTITUTING WARRANTS

TO SUBSCRIBE FOR SHARES IN THE COMPANY

 

 

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CONTENTS

	
Clause
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
Interpretation
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
Constitution And   Form Of Warrants
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
Register, Warrant   Certificates And Designation
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
Subscription Right And   Mechanics Of Exercise
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
IPO
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
Other Adjustments
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
Warranties
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
8.
    	
Undertakings
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
US Registration Rights
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
10.
    	
Termination
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
11.
    	
Redemption Upon Lapse   Date
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
12.
    	
Replacement Of Warrant   Certificates
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
13.
    	
Transfer Of Warrants   And Legends
    	
 
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
14.
    	
Tax Gross Up
    	
 
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
15.
    	
Notices
    	
 
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
16.
    	
Miscellaneous
    	
 
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
17.
    	
Governing Law And   Jurisdiction
    	
 
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
Schedule   1 Warrants
    	
 
    	
19
    
	
 
    	
 
    	
 
    
	
Schedule   2 Form Of Warrant Certificate
    	
 
    	
20
    
	
 
    	
 
    	
 
    
	
Schedule   3 Register, Transfers And Notices
    	
 
    	
25
    
	
 
    	
 
    	
 
    
	
Schedule   4 Surrender Notice
    	
 
    	
28
    
						

 

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THIS INSTRUMENT is entered into by way of a deed poll on 8 March 2019

 

BY:

 

AMTD INTERNATIONAL INC., a company incorporated under the laws of the Cayman Islands, whose registered office is at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand  Cayman, KY1-1111, Cayman Islands (the “Company”).

 

THIS INSTRUMENT WITNESSES as follows:

 

1.                                INTERPRETATION

 

1.1                         In this Instrument:

 

“Affiliate” means, in relation to a person, any other person which, directly or indirectly, Controls, is Controlled by or is under the common Control of the first mentioned person.

 

“Agent” means the Company, or an agent as may be appointed by the Company from time to time for the purposes of maintaining the Register whose identity shall be notified by the Company in writing to the Warrant Holder(s).

 

“Applicable Laws” means, as to any Person, any law, statute, rule, regulation, notice, order, policy, or determination of an arbitrator or a court or other Government Authority or stock exchange that is applicable or binding upon such Person or any of its properties.

 

“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general business in the PRC, Cayman Islands, New York and Hong Kong.

 

“Company Bank Account” means the bank account, the details of which are:

 

	
Name of Beneficiary:
    	
AMTD Group Company Limited
    
	
 
    	
 
    
	
Address of Beneficiary:
    	
23/F - 25/F Nexxus Building, 41 Connaught   Road Central, Hong Kong
    
	
 
    	
 
    
	
Name of Bank:
    	
Hongkong and Shanghai Bank Corporation
    
	
 
    	
 
    
	
Address of Bank:
    	
Central GPO Box 64 Hong Kong
    
	
 
    	
 
    
	
Location of Bank:
    	
Hong Kong
    
	
 
    	
 
    
	
Bank Account Number:
    	
 
    
	
 
    	
 
    
	
SWIFT code:
    	
HSBCHKHHHKH
    

 

or such bank account as shall be notified by the Company to the Warrant Holder(s) from time to time with at least 5 Business Days’ notice.

 

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“Control” means, in relation to any Person:

 

(a)                           the ownership of more than 50% of the shares in issue or other equity interests or registered capital of such Person; or

 

(b)                           the power to direct the management or policies of such Person, whether through the ownership of more than 50% of the voting rights of such Person, through the power to appoint a majority of the members of the board of directors or similar governing body of such Person, through contractual arrangements or otherwise,

 

and references to “Controlled” or “Controlling” shall be construed accordingly.

 

“Encumbrance” means any mortgage, assignment of receivables, debenture, lien, charge, pledge, title retention, right to acquire, security interest, options, rights of first refusal and any other encumbrance or condition whatsoever.

 

“Exercise Date” has the meaning given to it in Clause 4.3.1 (Procedure for exercise).

 

“Exercise Notice” means a notice in the form, or substantially in the form, set out in the first schedule to a Warrant Certificate.

 

“Exercise Price” means face value of the Warrants to be exercised, payable by the Warrant Holder to the Company in cash.

 

“Exercising Warrant Holder” has the meaning given to it in Clause 4.3.1 (Procedure for exercise).

 

“Fully Diluted Share Capital” means, as at the relevant time, the aggregate of all Shares in issue or issuable upon exercise of any outstanding option, warrant or convertible rights (whether or not conditional or contingent and assuming full performance of any performance-linked rights), and, for the avoidance of doubt, including the dilutive effect caused by any new issue of Shares pursuant to the IPO on the Listing Date.

 

“Government Authority” means any national, provincial, municipal, city or local government or other political subdivision thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, and any corporation or other entity owned or controlled, through share or capital ownership or otherwise, by any of the foregoing.

 

“Group” means the Company and its Subsidiaries from time to time.

 

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

 

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“IPO” means an initial public offering (being the first primary offer) of the Shares of the Company on the Stock Exchange or pursuant to an effective registration statement under the Securities Act of 1933, as amended, provided that:

 

(a)                           such initial public offering is sponsored by a US global investment bank;

 

(b)                           the cash proceeds from new issuance of Shares by the Company (net of underwriting discounts and commissions, fees and expenses) as part of such initial public offering;

 

(c)                            the minimum number of public shareholders purchasing shares of the Company in such initial public offering shall satisfy the requirements prescribed by the Stock Exchange; and

 

(d)                           the Stock Exchange has granted approval for the listing of, and permission to deal in, the Shares in connection with such initial public offering,

 

and any reference in this Instrument to the “occurrence of an IPO” or other terms having a similar effect shall mean the commencement of dealing of the Shares in the manner set forth above of the Company on the Stock Exchange;

 

“IPO Notice” has the meaning given to it in Clause 5.1 (Notices of IPO).

 

“Lapse Date” means the date falling eighteen (18) months after the date of this Instrument or such other date as shall be agreed between the Company and the relevant Warrant Holder.

 

“Listing Date” means the date of closing the IPO.

 

“Listing Rules” means the applicable rules, regulations and conditions of the NYSE and NASDAQ for the listing of securities or the equivalent in any other Stock Exchange.

 

“Majority Warrant Holders’ Consent” means the consent in writing of the Warrant Holders holding outstanding Warrants having an aggregate face value of over 50% of the aggregate face value of all outstanding Warrants.

 

“NASDAQ” means The Nasdaq Stock Market.

 

“NYSE” means The New York Stock Exchange.

 

“Person” means any individual, firm, corporation, partnership, trust, incorporated or unincorporated association, joint venture, joint stock company, limited liability company, Government Authority or other entity of any kind, and shall include any legal personal representatives, successor (by merger or otherwise) and permitted assigns of such entity.

 

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“Physical Settlement” has the meaning given to it in Clause 4.3.1(a).

 

“Physical Settlement Face Value” has the meaning given to it in Clause 4.3.1(a).

 

“PRC” means the People’s Republic of China (excluding for the purposes of this Instrument, Hong Kong, Macau and Taiwan).

 

“Proceedings” has the meaning given to it in Clause 17.3 (Service of proceedings).

 

“Register” means the register of Warrant Holders required to be maintained by the Agent pursuant to Schedule 3 (Register, Transfers and Notices).

 

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

 

“Shares” means all the ordinary shares in the share capital of the Company from time to time (including any American depository share(s) referring to any such ordinary shares from time to time).

 

“Specified Office” means Cricket Square, Hutchins Drive, P.O. Box 2681, Grand  Cayman, KY1-1111, Cayman Islands.

 

“Stock Exchange” means NYSE, NASDAQ or any other international stock exchange approved by the Warrant Holders through Majority Warrant Holders’ Consent.

 

“Subscription Right” means the right of the Warrant Holders to subscribe for Warrant Shares from the Company upon exercise of the Warrants, on the terms and subject to the conditions of this Instrument.

 

“Subscription Warrants” has the meaning given to it in Clause 2.1 (Issue of Warrants).

 

“Subsidiary” means in relation to any company, corporation or entity, a company, corporation or entity:

 

(a)                           which is Controlled, directly or indirectly, by the first mentioned company, corporation or entity;

 

(b)                           more than half the issued share capital, registered capital or equity interest of which is beneficially owned, directly or indirectly by the first mentioned company, corporation or entity; or

 

(c)                            which is a Subsidiary of another Subsidiary of the first mentioned company, corporation or entity.

 

Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Instrument shall refer to a Subsidiary or Subsidiaries of the Company.

 

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“Surrender Date” has the meaning given to it in Clause 11.3.

 

“Surrender Notice” has the meaning given to it in Clause 11.3.3.

 

“Surrender Shares” has the meaning given to it in Clause 11.2.

 

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

 

“Termination Date” means the earlier of:

 

(a)                                       the Listing Date; and

 

(b)                                       the Lapse Date.

 

“US$” means United States dollars, the lawful currency of the United States of America.

 

“Warrant Certificate” means a certificate in the form, or substantially in the form, set out in Schedule 2 (Form of Warrant Certificate).

 

“Warrant Exercise Period” has the meaning given to it in Clause 4.1.1.

 

“Warrant Holders” means the Persons in whose names the Warrants are registered from time to time as evidenced by the Register, and a “Warrant Holder” means any one of them. As at the date of this Instrument, the Warrant Holders are the Persons whose names are set out in Schedule 1.

 

“Warrant Shares” has the meaning given to it in Clause 4.4.1(a).

 

“Warrants” means the warrants with the Subscription Right to subscribe for Warrant Shares from the Company pursuant to this Instrument.

 

1.2                         The headings in this Instrument do not affect its interpretation.

 

1.3                         In this Instrument, a reference to:

 

1.3.1                          a Clause, paragraph or Schedule, unless specifically provided otherwise, is a reference to a clause or paragraph of, or schedule to, this Instrument;

 

1.3.2                          a statutory provision includes a reference to the statutory provision as modified or re-enacted or both from time to time after the date of this Instrument and any subordinate legislation made or other thing done under the statutory provision after the date of this Instrument;

 

1.3.3                          the singular includes the plural and vice versa (unless the context requires otherwise);

 

1.3.4                          words incorporating one gender shall include each gender;

 

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1.3.5                          “parties” means the Company and the Warrant Holders and a “party” shall be construed accordingly; and

 

1.3.6                          the Agent, any Warrant Holder or the Company shall be construed so as to include its successors in title, permitted assigns and permitted transferees.

 

1.4                         The Schedules to this Instrument form part of it and shall have the same force and effect as if expressly set out in the body of this Instrument.

 

1.5                         Unless a contrary indication appears, any reference in this Instrument to a time of day is a reference to New York time.

 

2.                                CONSTITUTION AND FORM OF WARRANTS

 

2.1                         Issue of Warrants

 

The Company hereby creates and issues with effect from the date of this Instrument to each Person whose name is set out in Part I of Schedule 1 (Warrants), Warrants with an aggregate face value of US$10,000,000 (“Subscription Warrants”), which confer the right (but not the obligation) to subscribe for up to an aggregate number of Warrant Shares on the terms and subject to the conditions set out in this Instrument and with such other rights as set out in this Instrument.

 

2.2                         Undertakings

 

The Company undertakes to comply with the terms and conditions of this Instrument and specifically, but without limitation, to use all commercial reasonable efforts do all such things and execute all such documents necessary in order to give effect to the Subscription Right and such other rights hereunder conferred on the Warrant Holders in accordance with the terms of this Instrument.

 

2.3                         Binding effect

 

The Warrants are issued on the terms and conditions of this Instrument, which are binding upon the Company and each Warrant Holder and all Persons claiming through or under any of them.

 

2.4                         Requirements concerning transfers

 

The requirements concerning the transfer of a Warrant contained in these Conditions may not be changed by the Company without the Majority Warrant Holders’ Consent.

 

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3.                                REGISTER, WARRANT CERTIFICATES AND DESIGNATION

 

3.1                         Register

 

The Company shall maintain, or appoint the Agent to maintain on behalf of the Company, the Register in accordance with the provisions of paragraph 1 of Schedule 3  (Register, Transfers and Notices) and shall ensure that the Agent shall comply with the provisions of Schedule 3 (Register, Transfers and Notices) and this Instrument.

 

3.2                         Warrant Certificates

 

The Company shall, on the date of this Agreement, issue to each Warrant Holder a Warrant Certificate representing its entitlement to the Subscription Warrants.

 

4.                                SUBSCRIPTION RIGHT AND MECHANICS OF EXERCISE

 

4.1                         Subscription Right

 

4.1.1                          Subject to the terms and conditions of this Instrument, the Subscription Right with respect to any portion of the face value of the Warrants may be exercised by the Warrant Holders at any time during the period from the date of this Agreement until and including the date falling 10 days before filing or submission of a public registration statement under the US Securities Act of 1933, as amended to the Stock Exchange for an IPO (such period being the “Warrant Exercise Period”), and pursuant to such exercise, the Warrants Holders will receive the Warrant Shares, provided that all unexercised portions of the Warrants will lapse on the Termination Date.

 

4.1.2                          A Warrant Holder may exercise its Subscription Right, in full or in part, in respect of any portion of the face value of the Warrants in accordance with the terms of this Instrument.

 

4.1.3                          A Warrant Holder may exercise its Subscription Right, in full or in part, in accordance with the terms of this Instrument.

 

4.1.4                          For the avoidance of doubt, each Warrant Holder shall have an independent right to exercise its Subscription Right under this Clause 4. The exercise or non-exercise of its Subscription Right by any Warrant Holder shall not affect the right of any other Warrant Holder to exercise or refrain from exercising its Subscription Right.

 

4.2                         Exercise price

 

4.2.1                          Upon exercise of the Subscription Right attaching to the Warrants and subject to the conditions provided in this Instrument, a Warrant Holder is

 

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obliged to subscribe from the Company at the Exercise Price, and the Company is obliged to issue and allot to such Warrant Holder free and clear of all Encumbrances, the number of Warrant Shares as determined in accordance with Clause 4.4.1(a).

 

4.3                         Exercise Notice

 

4.3.1                          As a condition to each exercise of its Subscription Right, on any date falling within the Warrant Exercise Period (such date being the “Exercise Date”), a Warrant Holder (an “Exercising Warrant Holder”) shall submit to the Company:

 

(a)                   a completed and signed Exercise Notice which shall set out such face value of the Warrants (in US$) in respect of which such Exercising Warrant Holder wishes to exercise its Subscription Right in accordance with the physical settlement mechanism as set out in Clause 4.4 (Settlement) (the “Physical Settlement Face Value”);

 

(b)                   make a wire transfer to the Company Bank Account of immediately available funds equal to the aggregate Exercise Price for such Warrant Shares; and

 

(c)                    lodge its Warrant Certificate(s) in respect of its Warrants to be exercised with the Specified Office.

 

4.3.2                          Unless otherwise provided in this Instrument, an Exercise Notice is irrevocable once issued.

 

4.4                         Settlement

 

4.4.1                          Subject always to Clause 6 (Other Adjustments), in the event any Exercising Warrant Holder exercises its Subscription Right pursuant to Clause 4.3.1, and provided that the Company shall not be required to take any action or do anything which violates or contravenes any Applicable Law, as soon as commercially reasonable and practicable the Company shall:

 

(a)                   issue and allot to such Exercising Warrant Holder such number of new Shares (such new Shares being the “Warrant Shares”) (disregarding any fraction of a Share resulting from such exercise and rounded up to the nearest whole number of Shares) as determined in accordance with the following formulae:

 

(A / B) x C, where:

 

A           = the Physical Settlement Face Value;

 

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B           = US$1,200,000,000; and

 

C           = the aggregate number of Shares in the Fully Diluted Share Capital as at the Exercise Date; and

 

(b)                   deliver to such Exercising Warrant Holder the following documents:

 

(i)                       original share certificate(s), which shall be in such denomination(s) of such Warrant Shares as may be reasonably requested by such Exercising Warrant Holder and shall be in the name(s) of such Exercising Warrant Holder;

 

(ii)                    a certified copy of the board minutes of the Company approving the issue and allotment of such Warrant Shares in favour of such Exercising Warrant Holder;

 

(iii)                 a certified copy of the register of members of the Company evidencing that such Exercising Warrant Holder as the registered owner of such Warrant Shares; and

 

(iv)                in respect of the Warrants that such Exercising Warrant Holder has not exercised under the Warrant Certificate surrendered by such Exercising Warrant Holder under Clause 4.3.1(c), a Warrant Certificate representing such Warrants.

 

4.4.2                          The Company shall take all necessary actions to issue and allot the relevant Warrant Shares to such Exercising Warrant Holder and will cause the Company’s register of members to reflect the issuance through book-entry or otherwise of the Warrant Shares in the name of the Exercising Warrant Holder as the registered owner of such Warrant Shares).

 

4.4.3                          In the case of a partial exercise by a Warrant Holder of its Subscription Rights as indicated in Clause 4.1.2 (such that certain portion of the face value of the Warrants is not subject to such partial exercise of its Subscription Rights), such Exercising Warrant Holder shall be entitled to exercise its right under Clause 4.1 in respect of the remaining face value of the Warrants held by such Exercising Warrant Holder after such exercise.

 

4.4.4                          For the avoidance of doubt, the Company shall not be obligated to make any cash or other payment to any Exercising Warrant Holder in the event of a Settlement.

 

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4.5                         General

 

The Company will bear all costs, expenses and Taxes, including all capital duty, stamp, issue, registration, securities transaction or other similar Taxes, duties, levies and fees (if any), arising in connection with or as a result of the exercise of the Subscription Rights, the allotment and/or issue (as applicable) of the Warrants Shares pursuant to settlement in accordance with this Clause 4, and the delivery of share certificate(s) therefor, in each case as applicable.

 

5.                                IPO

 

5.1                         Notices of IPO

 

The Company shall promptly notify each Warrant Holder in writing upon the filing or submission of a public registration statement under the US Securities Act of 1933, as amended (the “Securities Act”) to the Stock Exchange for an IPO (an “IPO Notice”).

 

5.2                         Stock Exchange’s objections

 

5.2.1                          In the event that the Stock Exchange raises objections to the Company’s application for a IPO in respect of the Warrants, the Company shall carry out such IPO and make the necessary modification to this Instrument (including adjusting or amending the provisions in this Instrument to the extent necessary to comply with the Listing Rules and requests of the Stock Exchange) which will result in the Stock Exchange removing its objections and execute such documentation and take such steps as may be reasonably necessary for the implementation of any such solution.

 

5.2.2                          In the event that the Company decides to apply for an IPO in a jurisdiction other than the state of New York, the Company shall carry out such IPO a view to making the necessary modifications to this Instrument, which will enable the rights under the Warrants to be exercised by the Warrant Holders and the Company to obtain approval for the listing of, and permission to deal in, the Warrant Shares.

 

6.                                OTHER ADJUSTMENTS

 

6.1                         Recapitalisation, reclassification or substitution

 

If at any time and from time to time after the date of this Instrument, the Shares issuable upon exercise of the Subscription Right are changed into the same or a different number of shares of any class or classes of shares of the Company, whether by recapitalisation, reclassification, substitution or otherwise, in any such event, the Company shall ensure that each Warrant Holder shall have the right to exercise its Subscription Rights to purchase the same (or as equivalent as practicable) kind and amount of shares or other securities and property receivable

 

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upon such recapitalisation, reclassification, substitution or other change which that Warrant Holder could have received had it exercised its Subscription Rights immediately prior to the effective date of such recapitalisation, reclassification, substitution or change, and its other rights under this Instrument shall be adjusted and construed accordingly.

 

6.2                         Merger, consolidation, reorganisation or sale of assets

 

If at any time and from time to time after the date of this Instrument, there is (i) any merger, consolidation or reorganisation of the Company with or into another corporation (other than a merger or consolidation in which the Company is the continuing corporation but including without limitation any reorganisation for the purposes of effecting an IPO in which the Shares of the Company are exchanged for shares in another corporation); or (ii) any sale or transfer of all or substantially all of the assets of the Company, then in each such case, as a part of such merger, consolidation, reorganisation or sale or transfer of assets, the Company shall to the extent permitted by Applicable Law procure that each Warrant Holder shall have the right to exercise its Subscription Rights to receive the same (or as equivalent as practicable) class and number of shares or other securities or property to which a holder of such number of Warrant Shares issuable upon exercise of the Subscription Rights would have been entitled to receive on such merger, consolidation or sale or transfer of assets had it exercised its Subscription Rights immediately prior to the effective date of such merger, consolidation, reorganisation or sale or transfer of assets, and its other rights under this Instrument shall be adjusted and construed accordingly.

 

7.                                WARRANTIES

 

7.1                         The Company represents and warrants to the Warrant Holders that:

 

7.1.1                          it is a company duly organised, validly existing and in good standing under the laws of its jurisdiction of incorporation;

 

7.1.2                          it has all requisite power, right and authority to execute, deliver, exercise its rights and perform its obligations under, this Instrument and to consummate the transactions contemplated hereby;

 

7.1.3                          its obligations under this Instrument constitute its valid, legal and binding obligations and are enforceable in accordance with its terms;

 

7.1.4                          the issue of the Warrant Shares to the Warrant Holders pursuant to the terms of this Instrument will vest in the Warrant Holders legal and valid title to the Warrant Shares free from any Encumbrances; and

 

7.1.5                          the Warrant Shares, when issued pursuant to the terms of this Instrument, will rank pari passu in all respects with the ordinary shares of the

 

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Company or, if there are two or more classes of shares, shares of such class without or with less preferential claim or preferential distribution right (or of such class as shall be designated by the Warrant Issuer based on these principles).

 

7.2                         Upon the exercise of the Subscription Right by a Warrant Holder and immediately before the issue and allotment of the Warrants Shares pursuant to such exercise, the Company is deemed to warrant to that Warrant Holder that each of the warranties in Clause 7.1 is in all material respects true, accurate and not misleading by reference to the facts and circumstances then subsisting.

 

7.3                         By accepting the Warrants, each Warrant Holder, in respect of itself, represents and warrants to the Company as follows:

 

7.3.1                          the Warrant Holder is either (i) a Person outside the United States purchasing the Warrants in an offshore transaction in accordance with Regulation S under the Securities Act; (ii) a qualified institutional buyer within the meaning of Rule 144A under Securities Act; or (iii) an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the Securities Act; and

 

7.3.2                          the Warrant Holder understands and acknowledges that the offer, issue and sale of the Warrants and Warrant Shares have not been registered under the Securities Act or under any other securities laws.

 

7.4                         Each Warrant Holder acknowledges, is aware of, and agrees to comply with, the restrictions on transferability of the Warrants and the Warrant Shares set out in this Instrument, including the restriction that the Warrants and the Warrant Shares may not be sold, transferred or otherwise disposed of until (i) a registration statement under the Securities Act with respect thereto shall have become effective or an exemption from such registration requirements is available; and/or (ii) all applicable securities laws of other jurisdictions shall have been complied with.

 

8.                                UNDERTAKINGS

 

8.1                         The Company undertakes to the Warrant Holders that (except with the prior sanction of the Majority Warrant Holders’ Consent):

 

8.1.1                          it shall at all times keep available for issue out of its authorised but unissued share capital a sufficient number of Shares free from any Encumbrance (other than those Encumbrances created pursuant to this

 

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Instrument) in order to satisfy the exercise in full of the Subscription Right of all outstanding Warrants by all Warrant Holders pursuant to the terms of this Instrument;

 

8.1.2                          it will not do anything or take any action which would result in Warrant Shares being issued to the Warrant Holder at a discount to their nominal value; and

 

8.1.3                          it will use all commercial reasonable and practicable efforts to do all such things and execute all such documents necessary in order to give effect to the Subscription Right and such other rights hereunder conferred on the Warrant Holders in accordance with the terms of this Instrument.

 

9.                                US REGISTRATION RIGHTS

 

The Company agrees and acknowledges that the Warrant Holder shall be entitled to customary United States ‘piggyback’ securities registration rights to be mutually agreed between the Company and the Warrant Holder from time to time.

 

10.                         TERMINATION

 

10.1                  Termination

 

Subject to and without prejudice to the rights of the Warrant Holder under Clause 11 (Redemption upon Lapse Date):

 

10.1.1                   if, upon the Termination Date, a Warrant Holder has not exercised any of its Subscription Right in full in accordance with Clause 4 (Subscription Right and Mechanics of Exercise), that Warrant Holder’s Subscription Right shall lapse and shall not be capable of being exercised after the Termination Date; and

 

10.1.2                   this Instrument shall terminate upon the earlier of: (a) when all the rights of the Warrant Holders under this Instrument have lapsed or have been exercised in accordance with its terms; and (b) when all Warrant Holders and the Company agree in writing that this Instrument shall terminate and cease to have any effect.

 

11.                         REDEMPTION UPON LAPSE DATE

 

11.1                  In the event that the closing of an IPO does not occur on or prior to the Lapse Date, the entire outstanding face value of the Warrants shall be redeemed by the

 

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Company, and in consideration the Company shall pay to each Warrant Holder a Redemption Amount, in accordance with this Clause 11.

 

11.2                  The Redemption Amount shall be (A / B) x C, where:

 

A = the aggregate outstanding face value of the Warrants (in US$) held by such Warrant Holder, if any, immediately prior to the Lapse Date;

 

B = US$10,000,000 (being the initial aggregate face value of all Warrants issued on the date of this Agreement); and

 

C = US$3,680,000.

 

11.3                  Each Warrant Holder shall deposit during normal business hours within three Business Days after the Lapse Date at the Specified Office:

 

11.3.1                   the relevant Warrant Certificate(s) in respect of all of its unexercised Warrants, if any;

 

11.3.2                   the share certificate(s) in respect of the Surrendered Shares;

 

11.3.3                   a copy of a notice of surrender in respect thereof (the “Surrender Notice”) in the form set out in Schedule 4 (Surrender Notice) duly completed and signed by or on behalf of the Warrant Holder; and

 

11.3.4                   a share transfer form in respect of the Surrendered Shares in the form satisfactory to the Company duly completed and signed by or on behalf of the Warrant Holder.

 

The day on which each of the items set out in Clauses 11.3.1 to 11.3.4 (inclusive and as applicable) are deposited by a Warrant Holder is referred to as the “Surrender Date” applicable to the relevant Warrant Holder.

 

11.4                  The Company shall, within ten (10) Business Days from the Surrender Date, pay the relevant Warrant Holder in US$ by transfer of funds for same day value an amount equal to such Warrant Holder’s Redemption Amount, to the bank account of the relevant Warrant Holder specified in the Surrender Notice of the relevant Warrant Holder.

 

12.                         REPLACEMENT OF WARRANT CERTIFICATES

 

If a Warrant Certificate is mutilated, defaced, lost, stolen or destroyed it will be replaced by the Company (or via the Agent), at the cost of the relevant Warrant Holder, on such terms as to evidence and indemnification as the Company may reasonably require.  Mutilated or defaced Warrant Certificates in respect of which replacements are being sought must be surrendered before replacements will be issued.

 

14

 

13.                         TRANSFER OF WARRANTS AND LEGENDS

 

13.1                  Transfer of Warrants

 

Subject to compliance with the Applicable Laws, without the consent of the Company, the Warrants and all rights thereunder are only transferable by a Warrant Holder to its Affiliate Controlled by it, provided that, if such Affiliate ceases to be Controlled by such Warrant Holder, the Warrants and the Warrant Shares (if any) issued and allotted pursuant to the exercise of such Warrants shall be transferred back to the relevant Warrant Holder, in each case, in accordance with the provisions of paragraph 2 of Schedule 3 (Register, Transfers and Notices) without charge to the relevant Warrant Holder (except for transfer taxes, if applicable).

 

13.2                  Legend

 

Each Warrant Certificate issued hereunder shall bear a legend in substantially the following form:

 

“THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE WARRANT SHARES ACQUIRABLE UPON EXERCISE OF THESE WARRANTS HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY OTHER APPLICABLE SECURITIES LAWS AND MAY NOT BE SOLD OR OFFERED FOR SALE UNLESS REGISTERED UNDER SUCH ACT AND ANY OTHER APPLICABLE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION AND SUCH OTHER SECURITIES LAWS IS AVAILABLE.”

 

When the Warrants (a) shall have been effectively registered under the Securities Act and applicable securities laws, or (b) are no longer subject to any restrictions upon transfer under the Securities Act, the Company shall, upon the written request of the relevant Warrant Holder, cause the removal of any restrictive legends on the Warrant Certificates, and instruct the Company’s transfer agent to remove any restrictive legends on those certificates or issue to such Warrant Holder in exchange for such Warrant Holder’s existing certificate a new certificate evidencing such Warrant without any legend, in each case at the Company’s cost.

 

13.3                  No assignment by Company

 

The Company shall not assign or transfer any or all of its rights or obligations under this Instrument.

 

15

 

14.                         TAX GROSS UP

 

14.1                  Deduction or withholding

 

If a deduction or withholding for or on account of Tax from a payment under this Instrument is required by law to be made by the Company or a Warrant Holder, the amount of the payment due from a Warrant Holder upon payment of Exercise Price shall be increased to an amount which (after making such Tax deduction or withholding) leaves an amount equal to the payment which would have been due if no Tax deduction or withholding had been required.

 

14.2                  Receipt

 

Within 15 Business Days of making a deduction or withholding as described in Clause 14.1 (Deduction or withholding), the Company or the relevant Warrant Holder (as the case may be) shall deliver to the other party an original receipt (or a certified copy thereof) that such deduction or withholding has been made or (as applicable) any appropriate payment has been paid to the relevant Tax authority.

 

14.3                  Taxes

 

Each Warrant Holder shall pay all stamp, issue, registration or other similar taxes and duties (if any) arising on the issue and allotment of the Warrant Shares upon the exercise by such Warrant Holder of the Subscription Right or the transfer of the Warrants.

 

15.                         NOTICES

 

Any notice to be given for the purposes of this Instrument shall be given in accordance with the provisions of paragraph 3 of Schedule 3 (Register, Transfers and Notices).

 

16.                         MISCELLANEOUS

 

16.1                  Modification by Majority Warrant Holders’ Consent

 

Subject to Clause 16.2 (Manifest error and modification for IPO), any of the terms, conditions, rights and obligations for the time being attached to the Warrants may only (whether or not the Company is being wound up) be altered or abrogated with the sanction of the Majority Warrant Holders’ Consent, and shall be effected by an instrument by way of deed poll executed by the Company and expressed to be supplemental to this Instrument.

 

16.2                  Manifest error and modification for IPO

 

Modifications to the Instrument which are of a formal, minor or technical nature (and in each case not affecting adversely the rights of the Warrant Holders), or made to correct a manifest error or made pursuant to Clause 5.2 (Stock

 

16

 

Exchange’s objections) , may be effected by an instrument by way of deed poll executed by the Company and expressed to be supplemental to this Instrument.

 

16.3                  Endorsement

 

A memorandum of every such supplemental deed as is referred to in Clause 16.1 (Modification by Majority Warrant Holders’ Consent) and Clause 16.2 (Manifest error and modification for IPO) shall be endorsed on the Warrant Certificates and notice of such alteration, abrogation or modification shall be given to the Warrant Holders within 5 Business Days of it occurring.

 

16.4                  Partial invalidity

 

The invalidity, illegality or unenforceability of a provision of this Instrument shall not affect or impair the validity of the remainder of this Instrument.

 

16.5                  No set-off

 

All payments to be made by a Warrant Holder under this Instrument shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

 

16.6                  Votes

 

A Warrant Holder needs not use all its votes or cast all of its votes in the same way.  If a Warrant Holder elects to exercise its votes or rights in different manners, it shall be treated for such purpose as if it were more than one Warrant Holder each holding a portion of its Warrant Shares as may be specified by such first-mentioned Warrant Holder at the time of the exercise of its votes or rights.

 

17.                         GOVERNING LAW AND JURISDICTION

 

17.1                  Governing law

 

This Instrument and the Warrants are governed by and shall be construed in accordance with the laws of Hong Kong.

 

17.2                  Jurisdiction

 

17.2.1                   Subject to Clause 17.2.2, the courts of Hong Kong shall have exclusive jurisdiction to settle any dispute arising from or connected with this Instrument or the Warrants including, without limitation, a dispute regarding the existence, validity or termination of this Instrument or the consequences of its nullity (a “Dispute”).

 

17.2.2                   The parties agree that the courts of Hong Kong are the most appropriate and convenient forum to settle any Dispute and, accordingly, that they

 

17

 

will not argue to the contrary. No Warrant Holder shall take proceedings relating to a Dispute in any other courts with jurisdiction.

 

17.3                  Service of proceedings

 

The Company agrees that the documents which start any proceedings relating to a Dispute (“Proceedings”) and any other documents required to be served in relation to those Proceedings on the Company may be served to the Company at 23/F — 25/F, Nexxus Building, 41 Connaught Road Central, Central, Hong Kong in accordance with Clause 15 (Notices) and the Company irrevocably appoints such Person as its agent to accept service of Proceedings.  These documents may, however, be served in any other manner allowed by law.  This Clause 17.3 (Service of proceedings) applies to all Proceedings wherever started.

 

18

 

SCHEDULE 1
 WARRANTS

 

	
Warrant Holder
    	
 
    	
Initial face value of Warrants (in
   US$) held by such Warrant
   Holder as of the date of this
   Agreement
    
	
 
    	
 
    	
 
    
	
Value Partners Group Limited
    43rd Floor, The Center,
    99 Queen’s Road Central, Hong Kong
    	
 
    	
US$10,000,000
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Total: US$10,000,000
    

 

19

 

SCHEDULE 2
 FORM OF WARRANT CERTIFICATE

 

THE HOLDER OF THIS CERTIFICATE, BY ACCEPTANCE OF THIS CERTIFICATE, AGREES TO BE BOUND BY THE PROVISIONS OF THE WARRANT INSTRUMENT DATED [·] (THE “WARRANT INSTRUMENT”) EXECUTED AS A DEED POLL BY, INTER ALIA, AMTD INTERNATIONAL INC., AS THE WARRANT INSTRUMENT MAY BE MODIFIED AND SUPPLEMENTED AND IN EFFECT FROM TIME TO TIME.  THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE WARRANT SHARES ACQUIRABLE UPON EXERCISE OF THESE WARRANTS HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY OTHER APPLICABLE SECURITIES LAWS AND MAY NOT BE SOLD OR OFFERED FOR SALE UNLESS REGISTERED UNDER SAID ACT OR ANY OTHER APPLICABLE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION OR SUCH OTHER SECURITIES LAWS IS AVAILABLE.

 

AMTD INTERNATIONAL INC.

(Incorporated in Cayman Islands)

 

WARRANT CERTIFICATE

 

	
Certificate   No: [    ]
    	
Date of Issue: [    ]
    

 

THIS IS TO CERTIFY that the Warrant Holder named below is the registered holder of the Warrants which entitle the holder to subscribe for such number of Warrant Shares representing the face value stated below on the terms set out in the Warrant Instrument.

 

This Certificate is issued pursuant to the Warrant Instrument.  Defined terms used herein, unless otherwise defined herein, shall have the same meaning as those in the Warrant Instrument.

 

	
Name of Warrant Holder:
    	
 
    	
[·]
    
	
 
    	
 
    	
 
    
	
Address of Warrant Holder:
    	
 
    	
[·]
    
	
 
    	
 
    	
 
    
	
Face value of Warrants (US$):
    	
 
    	
[·]
    

 

20

 

EXECUTED AS A DEED by

AMTD INTERNATIONAL INC.:

 

	
 
    	
 
    	
 
    
	
Director
    	
Director/Secretary
    

 

THE WARRANTS ARE TRANSFERABLE PRIOR TO EXERCISE IN ACCORDANCE WITH THE PROVISIONS OF THE WARRANT INSTRUMENT.  A COPY OF THE WARRANT INSTRUMENT MAY BE OBTAINED ON REQUEST FROM THE AGENT.  THE EXERCISE NOTICE AND FORM OF TRANSFER IN THE FIRST AND SECOND SCHEDULES TO THIS CERTIFICATE FORM PART OF THIS CERTIFICATE.

 

21

 

FIRST SCHEDULE TO WARRANT CERTIFICATE

 

EXERCISE NOTICE

 

To:                             The Directors
  AMTD INTERNATIONAL INC. (the “Company”)

[Address]

 

Date:

 

Defined terms used herein, unless otherwise defined herein, shall have the same meaning as those in the Warrant Instrument dated [·] executed, inter alia, by the Company.

 

We are a Warrant Holder holding an aggregate face value of Warrants of US$[·], represented by Warrant Certificate No. [·] and [·].

 

We hereby exercise the Subscription Right in respect of [all][part] of the face value of the Warrants represented by this Warrant Certificate.  This Exercise Notice is irrevocable once issued.

 

************************************

 

[Settlement (pursuant to Clause 4.4 of the Warrants Instrument)

 

We elect for Physical Settlement in respect of the Physical Settlement Face Value stated below and to the following proposed transferees:

 

	
Physical Settlement Face Value
    	
 
    	
Name of proposed 
   allottee of Warrant 
   Shares
    	
 
    	
Address of proposed 
   allottee of Warrant 
   Shares
    
	
US$
    	
[·]
    	
 
    	
[·]
    	
 
    	
[·]
    
	
US$
    	
[·]
    	
 
    	
[·]
    	
 
    	
[·]
    

 

Share certificate(s) for the aforesaid Warrant Shares should be sent by registered post to the address(es) set out above, marked for the attention of [insert name].]2

 

************************************

 

2  Subject to finalisation of the US registration rights provision.

 

22

 

	
Signed by
    	
)
    
	
for an on behalf of
    	
)
    
	
[Name of Warrant Holder]
    	
)
    

 

23

 

SECOND SCHEDULE TO WARRANT CERTIFICATE

 

FORM OF TRANSFER NOTICE

To:                             The Directors
 [AMTD INTERNATIONAL INC.] (the “Company”)

[Address]

 

Date:

 

Defined terms used herein, unless otherwise defined herein, shall have the same meaning as those in the warrant instrument dated [·] executed, inter alia, by the Company (the “Warrant Instrument”).

 

We hereby give notice that we are transferring Warrants with an aggregate face value of US$[·] issued pursuant to the Warrant Instrument and represented by Warrant Certificates No. [·] and [·] to [Name of transferee] of [address] (the “Transferee”).  A duly signed instrument of transfer is attached to this notice.

 

We enclose our Warrant Certificate for cancellation by you.  Please would you issue a new Warrant Certificate to the Transferee in respect of the Warrants so transferred [and a new Warrant Certificate to us in respect of the balance of the Warrants retained by us].

 

	
SIGNED   for and on behalf   of
    	
)
    
	
[Name   of Warrant Holder]
    	
)
    
	
by
    	
)
    

 

24

 

SCHEDULE 3
 REGISTER, TRANSFERS AND NOTICES

 

1.                                REGISTER

 

1.1                         The Company shall, or appoint the Agent to, keep the Register on behalf of the Company and shall ensure that the Agent comply with, and carry out its duties according to, the provisions set out in this Schedule 3 (Register, Transfers and Notices).

 

1.2                         The Agent shall promptly enter in the Register:

 

1.2.1                          the name and address of each Warrant Holder for the time being;

 

1.2.2                          the Warrants held by each Warrant Holder and the relevant face value of Warrants;

 

1.2.3                          the date on which the name of each Warrant Holder is entered in the Register in respect of the Warrants registered in its name;

 

1.2.4                          the date on which all or any part of the Subscription Right in respect of the Warrants held by each Warrant Holder are exercised, or all or any part of the Warrants are transferred or cancelled; and

 

1.2.5                          annotation in respect of any Encumbrance created over any of the Warrants and the Person in whose favour the Encumbrance is created as notified by the relevant Warrant Holder.

 

1.3                         Any change in the name or address of any Warrant Holder shall be notified to the Agent at the Specified Office by the Warrant Holder as soon as reasonably practicable following such change, following which the Agent shall update the Register accordingly.  Each Warrant Holder or any Person authorised by a Warrant Holder shall be entitled at all reasonable times during office hours upon 5 Business Days’ notice to inspect the Register and to take copies of or extracts from it.  A Warrant Holder shall be entitled to receive a certified true copy of the Register certified by an officer of the Company within 5 Business Days upon a written request of a Warrant Holder.

 

1.4                         The Company shall be entitled to treat the Person whose name is shown in the Register as a Warrant Holder as the absolute owner of a Warrant and, accordingly, shall not be bound (except as ordered by a court of competent jurisdiction or as required by law) to recognise any equitable or other claim to, or interest in, such Warrant (save for any interest or claim in respect of any Encumbrance of which the Register contains an annotation as described in paragraph 1.2.5 of this Schedule) on the part of any other Person whether or not it has express or other notice of such claim or interest.

 

25

 

1.5                         Every Warrant Holder shall be recognised by the Company as entitled to its Warrants free from any equity, set-off or cross-claim on the part of the Company against the original or any intermediate holder of such Warrants.

 

2.                                TRANSFERS

 

2.1                         All transfers of Warrants are subject to Clause 13 of the Warrant Instrument.

 

2.2                         Every transfer of Warrants shall be made by an instrument of transfer and by giving notice to the Company in the form set out in the second schedule to the Warrant Certificate or in any other form which may be approved from time to time by the Company.

 

2.3                         The instrument of transfer of a Warrant shall be signed by or on behalf of the transferor but need not be signed by or on behalf of the transferee.  The transferor shall be deemed to remain the holder of the Warrant until the name of the transferee is entered in the Register in respect of the Warrant.

 

2.4                         The Company may decline to recognise any transfer of a Warrant unless the relevant instrument of transfer is delivered to the Company accompanied by the Warrant Certificate to which it relates (or an indemnity in respect thereof) and such other evidence as the Company may reasonably require to show the right of the transferor to make the transfer.  The Company may waive production of any Warrant Certificate upon production of satisfactory evidence of the loss or destruction of such instrument together with such indemnity as it may reasonably require.  Subject to the foregoing provisions of this paragraph and paragraph 2.4 below, the Company may not decline to recognise any instrument of transfer and must register the transfer of the Warrant(s) in accordance with this Schedule 3 (Register, Transfers and Notices).

 

2.5                         The Company shall not register any transfer of a Warrant in respect of which an annotation has been entered in the Register showing that an Encumbrance has been created in respect of such Warrant, except where such transfer is in favour of the beneficiary of such Encumbrance as shown in such annotation or to such other Person as shall be directed or approved in writing by such beneficiary.

 

2.6                         Any transfer of a Warrant which complies with this paragraph 2 shall be recorded in the Register within 5 Business Days following receipt by the Company of the relevant instrument of transfer.

 

2.7                         The Company shall not be entitled to charge any fee for the registration of a transfer of a Warrant or for registering an annotation of Encumbrance in respect of any Warrant.

 

2.8                         The registration of a transfer shall be conclusive evidence of the approval by the board of the directors of the Company of the transfer.

 

26

 

3.                                NOTICES

 

3.1                         Each Warrant Holder shall register with the Agent an address (“Notice Address”) and facsimile number to which notices can be sent and if any Warrant Holder fails so to do, notice may be given to the Warrant Holder by sending the same by any of the methods referred to in paragraph 3.2 of this Schedule to its registered address.

 

3.2                         Notices and other communications to Warrant Holders, the Company and/or the Agent shall be in writing and shall be delivered either personally, sent by courier or by facsimile.

 

3.3                         A notice or other communication given pursuant to the provisions of paragraph 3.2 of this Schedule shall be deemed to have been served:

 

3.3.1                          at the time of delivery (or where such time is outside the normal business hours of the recipient, on the opening of the next following Business Day), if delivered personally;

 

3.3.2                          2 Business Days after posting it if sent by courier;

 

in each case:

 

(a)                   to the Warrant Holder, at its Notice Address (if there is none, its registered address); or

 

(b)                   to the Company and/or the Agent at the Specified Office; or

 

3.3.3                          when the sender’s facsimile machine receives a confirmation of transmission report (or where such time is outside the normal business hours of the recipient, on the opening of the next following Business Day) if delivered by facsimile.

 

3.4                         Any Person who, whether by operation of law, transfer or other means whatsoever, becomes entitled to any Warrant shall be bound by every notice properly given to the Person from whom it derives its title to such Warrant.

 

3.5                         When a given number of days notice is required to be given, the day of service shall be included but the day upon which such notice will expire shall not be included in calculating the number of days.

 

27

 

SCHEDULE 4
 SURRENDER NOTICE

 

To:                             The Directors

[AMTD International Inc.]

[Address]

 

Date:

 

Defined terms used therein, unless otherwise defined herein, shall have the same meaning as those in the Warrant Instrument dated [·].

 

Pursuant to and in accordance with Clause 11.3 of the Instrument, please find enclosed the Warrant Certificate(s) in respect of such Warrants as specified below, for deposit at the Specified Office on the date of this notice, subject to and in accordance with the Instrument.

 

Face value of Warrants and certificate numbers of Warrants and certificate numbers of Surrendered Shares to which this notice applies:

 

Face value of Warrants: US$[·]

 

Certificate number(s) of Warrants:

 

Certificate number(s) of Warrant Shares:

 

Redemption Amount:

 

Pursuant to and in accordance with Clause 11.4, we direct the Company to pay the Redemption Amount, the amount of which is stated below, within five Business Days from the date of this notice to our bank account details of which are set out below:

 

Amount of Redemption Amount: [US$]__________________________________

 

Account no: ____________________________________________________________

 

Account name: __________________________________________________________

 

Bank: _______________________________________________________________________________

 

Branch: ________________________________________________________________

 

28

 

Sort Code: _____________________________________________________________

 

	
Signed by
    	
)
    
	
For and on behalf   of
    	
)
    
	
[Name of Warrant Holder]
    	
)
    

 

29

 

IN WITNESS WHEREOF this Instrument has been executed by the Company as a deed poll and is intended to be and is hereby delivered on the date first above written.

 

	
EXECUTED AS A DEED by
    	
 
    	
)
    
	
AMTD INTERNATIONAL INC.
    	
 
    	
)
    
	
 
    	
 
    	
)
    
	
 
    	
 
    	
)
    
	
 
    	
 
    	
)
    
	
 
    	
 
    	
)
    
	
 
    	
 
    	
)
    

 

	
/s/ Marcellus Wong
    	
 
    	
/s/ Issac See
    

 

	
Director
    	
 
    	
Secretary
    

 

30

 

EXERCISE NOTICE

 

To:                             The Directors
  AMTD INTERNATIONAL INC. (the “Company”)

Cricket Square, Hutchins Drive

P.O. Box 2681, Grand Cayman

KY1-1111, Cayman Islands

 

10 April 2019

 

Defined terms used herein, unless otherwise defined herein, shall have the same meaning as those in the Warrant Instrument dated 8 March 2019 executed, inter alia, by the Company.

 

We are a Warrant Holder holding an aggregate face value of Warrants of US$10,000,000.

 

We hereby exercise the Subscription Right in respect of all of the face value of the Warrants represented by this Warrant Certificate.  This Exercise Notice is irrevocable once issued.

 

Settlement (pursuant to Clause 4.4 of the Warrants Instrument)

 

We elect for Physical Settlement in respect of the Physical Settlement Face Value stated below and to the following proposed transferees:

 

	
Physical Settlement Face Value
    	
 
    	
Name of proposed
   allottee of Warrant
   Shares
    	
 
    	
Address of proposed
   allottee of Warrant
   Shares
    
	
US$10,000,000
    	
 
    	
Value Partners Greater China High Yield Income Fund
    	
 
    	
43rd Floor, The   Center, 99 Queen’s Road Central, Hong Kong
    

 

Share certificate(s) for the aforesaid Warrant Shares should be sent by registered post to the address(es) set out above, marked for the attention of Mr. Gordon Ip.

 

	
Signed by
    	
)
    	
/s/ Gary Kang Wai Lam
    
	
 
    	
 
    	
 
    
	
for an on behalf of
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
Value Partners Greater China
    	
)
    	
/s/ Chit Sze (Jessica) Ng
    
	
 
    	
 
    	
 
    
	
High Yield Income Fund
    	
)Exhibit 10.7

 

DATED April 26, 2019

 

Indochina Fund Limited

 

and

 

AMTD International Inc.

 

 

SHARE PURCHASE AGREEMENT

 

 

 

SHARE PURCHASE AGREEMENT

 

This SHARE PURCHASE AGREEMENT (the “Agreement”) is made and entered into as of April 26, 2019, by and between:

 

1.                                      Indochina Fund Limited, an exempted company with limited liability duly established and validly existing under the laws of Cayman Islands (the “Investor”); and

 

2.                                      AMTD International Inc., an exempted company with limited liability duly established and validly existing under the laws of the Cayman Islands (the “Company”).

 

The Company and the Investor are sometimes each referred to herein as a “Party,” and collectively as the “Parties.”

 

RECITALS

 

The Company desires to issue and sell to the Investor, and the Investor desires to purchase from the Company certain number of Class A ordinary shares, par value US$0.0001 per share, of the Company (the “A Shares”) on the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

1.                                      ISSUANCE, SALE, AND PURCHASE OF PURCHASED SHARES.

 

1.1                               Issuance, Sale, and Purchase of Purchased Shares.  Subject to the terms and conditions hereof, at the Closing (as defined below) the Company shall issue and sell to the Investor, and the Investor shall purchase from the Company, 550,350 A Shares (the “Purchased Shares”), equivalent to an effective shareholding  of 0.2744% of all the issued share capital of the Company as of the date of this Agreement, for an aggregate purchase price of US$3,577,274.37 (the “Purchase Price”). The pre-money valuation for the financing round on or about April 30, 2019 shall be US$1.3 billion.

 

The Purchased Shares shall have the rights, privileges, and restrictions as set forth in the Third Amended and Restated Memorandum and Articles of Association of the Company (the “Restated Articles”).

 

1.2                               Transfer of Funds.  The Investor shall pay the Purchase Price by wire transfer of United States dollars in immediately available funds on April 29, 2019 to the bank account designated by the Company as follow:

 

	
Payee:
    	
 
    	
AMTD Investment Solutions Group Limited
    
	
Bank:
    	
 
    	
HSBC
    
	
Bank Address:
    	
 
    	
Central GPO Box 64 Hong   Kong
    
	
Account Number:
    	
 
    	
 
    
	
SWIFT Code:
    	
 
    	
HSBCHKHHHKH
    

 

1

 

2.                                      CLOSINGS; DELIVERY.

 

2.1                               Closing.  The allotment and sale of the Purchased Shares shall be held within ten (10) days after the fulfillment or waiver of the conditions to closing as set forth in Section 6 and Section 7 or at such other time as the Company and the Investor may mutually agree (the “Closing”).

 

2.2                               Delivery.  At the Closing, the Company will deliver to the Investor duly issued share certificate(s) issued in favor of such Investor representing the Purchased Shares purchased by such Investor, duly signed for and on behalf of the Company. Further, the Company shall cause its register of members to be updated to reflect the Purchased Shares purchased by the Investor, and shall deliver a copy of an extract of such updated register of members certified by the company secretary or director of the Company to the Investor within five (5) business days (“Business Day”, defined as any day other than a Saturday or Sunday or public holiday on which banks are ordinarily open for business in Hong Kong and the Cayman Islands) after the Closing.

 

3.                                      REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The Company hereby represents and warrants to the Investor as follows:

 

3.1                               Organization, Standing, and Qualification.  Each of the Company and its subsidiaries (the “Group Companies”) is duly established, validly existing, and in good standing (or equivalent status in the relevant jurisdiction) under the laws of the place of its establishment and has all requisite power and authority to own its properties and assets and to carry on its business as now conducted, where failure to be so qualified would have a Material Adverse Effect. “Material Adverse Effect” means a material adverse effect on the business (as presently conducted and presently contemplated to be conducted), condition (financial or otherwise), affairs, properties, liabilities, assets, or results of operation of the Group Companies taken as whole.

 

3.2                               Capitalization.

 

(a)                                 Ordinary Shares.  Immediately prior to the Closing, the Company is authorized to issue (i) 8,000,000,000 A Shares, of which zero A Share is issued and outstanding, and (ii) 2,000,000,000 Class B ordinary shares (the “B Shares”), par value US$0.0001 per share, of which 200,000,001 B Shares are issued and outstanding.

 

(b)                                 Options, Warrants, Reserved Shares.  Except for (i) the warrant issued to Value Partners Greater China High Yield Income Fund in March 2019, (ii) any A Shares (and options and warrants therefor) reserved for issuance to the employees, directors, and consultants of the Group Companies pursuant to any equity incentive plan that may be adopted from time to time by the Company, (iii) as provided in the Restated Articles, and (iv) any A Shares to be issued, at the pre-money valuation of no less than US$1.3 billion, to certain potential investors for the financing round on or around April 30, 2019, including the transactions contemplated herein, there are no other options, warrants, conversion privileges, agreements, or rights of any kind whatsoever  or any other securities of the Company. Apart from any exceptions noted in the Restated Articles, no outstanding shares (including the Purchased Shares), or shares issuable upon exercise or exchange of any outstanding options, warrants, or other shares issuable by the Company, are subject to any preemptive rights, rights of first refusal, or other rights of any kind to purchase such shares (whether in favor of the Company or any other person).

 

2

 

3.3                               Due Authorization; Valid Agreement.  All corporate actions on the part of the Company necessary for the authorization, execution, and delivery of, and the performance of the obligations of the Company under this Agreement have already been taken . This Agreement constitutes a valid and legally binding obligation of the Company, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by laws relating to general equitable principles.

 

3.4                               Organization, Good Standing, and Qualification.  The Company is duly established, validly existing, and in good standing under the laws of the jurisdiction of its formation.

 

3.5                               Valid Issuance of Purchased Shares.  The Purchased Shares, when issued, sold, delivered, and paid for by the Investor in accordance with the terms of this Agreement, will be duly and validly issued, fully paid, and non-assessable

 

3.6                               Compliance with Laws; Consents and Permits.  Neither the execution and the delivery of this Agreement nor the consummation of the transactions contemplated hereby, will (i) violate any provision of the organizational documents of the Company or violate any constitution, statute, regulation, or rule of any government authority to which the Company is subject, or (ii) conflict with, result in a breach of, constitute a default under, any agreement to which the Company is a party.  Each Group Company has all material permits, licenses, and any similar authority necessary for the conduct of its business as currently conducted and the ownership of its properties and assets.

 

3.7                               Exempt Offering.  The offer and sale of the Purchased Shares under this Agreement are or shall be exempt from the registration requirements and prospectus delivery requirements of the U.S. Securities Act of 1933, as amended (the “Act”), and from the registration or qualification requirements of any other applicable securities laws and regulations.  None of the Company, its affiliates, or any person acting on its behalf, has engaged in any directed selling efforts (within the meaning of Regulation S under the Act) in the United States in connection with the transactions contemplated in this Agreement.

 

3.8                               Insolvency and Winding Up.  No order or petition has been presented or resolution passed for the administration, winding-up, dissolution, or liquidation of any Group Company and no administrator, receiver, or manager has been appointed in respect thereof.  None of the Group Companies has commenced any other proceeding under any bankruptcy, reorganization, composition, arrangement, adjustment of debt, release of debtors, dissolution, insolvency, liquidation, or similar law of any jurisdiction and no such proceedings have been commenced or is anticipated to be commenced against any Group Company.

 

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4.                                      REPRESENTATIONS AND WARRANTIES OF THE INVESTOR.

 

The Investor represents and warrants to the Company as follows:

 

4.1                               Authorization.  The Investor has all requisite power, authority, and capacity to enter into this Agreement and to perform its obligations under this Agreement. This Agreement has been duly authorized, executed, and delivered by the Investor. This Agreement, when executed and delivered by the Investor, will constitute valid and legally binding obligations of such Investor enforceable in accordance with its terms, subject, as to enforcement of remedies, to applicable bankruptcy, insolvency, moratorium, reorganization, and similar laws affecting creditors’ rights generally and to general equitable principles.

 

4.2                               Purchase for Own Account.  The Purchased Shares will be acquired for the Investor’s own account, not as a nominee or agent, and not with a view to or in connection with the sale or distribution of any part thereof. By executing this Agreement, the Investor further represents that it does not have any contract with any person to sell, transfer, or grant participations to any person, with respect to any of the Purchased Shares.

 

4.3                               Organization, Good Standing, and Qualification.  The Investor is duly established, validly existing, and in good standing under the laws of the jurisdiction of its formation.

 

4.4                               Investment Experience.  The Investor acknowledges that it is able to fend for itself, can bear the economic risks of its investment, and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Purchased Shares.

 

4.5                               Status of Investor.  The Investor is (i) not a U.S. person within the meaning of Rule 902 of Regulation S under the Act, or (ii) purchasing the Purchased Shares outside the United States in compliance with Regulation S under the Act and in accordance with any applicable securities laws of any state of the United States or any other jurisdiction.

 

4.6                               Restricted Securities.  Investor understands that the Purchased Shares it is purchasing are characterized as “restricted securities” under U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the Act only in certain limited circumstances.

 

4.7                               Legends.  It is understood that the certificates evidencing the Purchased Shares shall bear the following legend:

 

“THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR A VALID EXEMPTION THEREFROM.”

 

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5.                                      COVENANTS.

 

5.1                               Transfer Restriction.  Subject to any legal or contractual restrictions, if at any time the Investor proposes to dispose of any of the Purchased Shares, then the Investor shall promptly give the Company written notice of its intention to make the disposal (the “Disposal Notice”).  The Disposal Notice shall include the number of Shares (“Offered Shares”) to be disposed. The Company (or any person designated by the Company) will have the first option to purchase all or part of the Offered Shares at the closing price of the Offered Shares on the date of the Disposal Notice, provided that the Company shall exercise its right to purchase within 5 Business Days from the date of receipt of the Disposal Notice.

 

5.2                               Lock-Up.  In connection with any initial public offering of the A Shares, the Investor hereby irrevocably agrees to enter into a lock-up agreement with the underwriters and other relevant parties and be subject to a lock-up period of at least 180 days.

 

5.3                               Non-Disclosure.  The Investor shall, and shall cause its affiliates to: (i) treat and hold as strictly confidential (and not disclose or provide access to any person or entity to, save and except to the legal and financial advisors as well as other professionals) all confidential or proprietary information relating to the transactions contemplated hereby, including without limitation the existence and content of this Agreement (collectively, “Confidential Information”), (ii) in the event that the Investor or any of its affiliates becomes legally compelled to disclose any such information, provide the Company with prompt written notice of such requirement so that the Company may seek a protective order or other remedy or waive compliance with this Section 5.3, and (iii) in the event that such protective order or other remedy is not obtained, or the Company chooses to waive compliance with this Section 5.3, furnish only that portion of such confidential information that is legally required to be provided and exercise its reasonable endeavors to obtain assurances that confidential treatment will be accorded such information.

 

6.                                      CONDITIONS TO THE INVESTOR’S  OBLIGATIONS AT THE CLOSING.

 

6.1                               The obligation of the Investor to purchase the Purchased Shares at the Closing is subject to the fulfillment, to the satisfaction of such Investor (or waiver thereof) on or prior to the date of the Closing (the “Closing Date”), of the following conditions:

 

(a)                                 Representations and Warranties True and Correct.  The representations and warranties made by the Company in Section 3 hereof shall be true and correct as of the Closing Date (except to the extent such representations and warranties expressly speak of a specified date, in which case such representations and warranties shall be true and correct as of such specified date).

 

(b)                                 Proceedings and Documents.  The resolutions of the board of directors of the Company in connection with the transactions contemplated hereby shall have been duly passed.

 

6.2                               The Investor may at any time waive in writing any of the conditions above, on such terms as it may decide.

 

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7.                                      CONDITIONS TO THE COMPANY’S  OBLIGATIONS AT THE CLOSING.

 

7.1                               Closing.  The obligations of the Company under this Agreement with respect to the Investor are subject to the fulfillment, on or prior to the Closing Date of the following conditions:

 

(a)                                 Representations and Warranties.  The representations and warranties of the Investor contained in Section 4 hereof shall be true and correct as of the Closing Date (except to the extent such representations and warranties expressly speak of a specified date, in which case such representations and warranties shall be true and correct as of such specified date).

 

(b)                                 Payment of the Purchase Price.  The Investor shall have delivered to the Company the Purchase Price in accordance with Section 1.2.

 

8.                                      MISCELLANEOUS.

 

8.1                               Governing Law.  This Agreement shall be governed by and construed in accordance with the law of Hong Kong, without regard to the  principles of conflicts of laws.  It is expressly provided that the Contracts (Rights of Third Parties) Ordinance (Cap.623) shall not apply to this Agreement and nothing herein will create rights under the said Ordinance.

 

8.2                               Survival.  The representations, warranties, covenants, and agreements made herein shall survive for two (2) years after the Closing.

 

8.3                               Successors and Assigns.  Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors, and administrators of the Parties. This Agreement and the rights and obligations therein may not be assigned by a Party without the written consent of the other Party.

 

8.4                               Entire Agreement.  This Agreement and the schedules and exhibits hereto constitute the entire understanding and agreement between the Parties with regard to the subjects hereof and thereof; provided, however, that nothing in this Agreement shall be deemed to terminate or supersede the provisions of any applicable confidentiality and non-disclosure agreements executed by the Parties prior to the date hereof, which agreements shall continue in full force and effect until terminated in accordance with their respective terms.

 

8.5                               Notices.  Except as may be otherwise provided herein, all notices, requests, waivers, and other communications made pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (i) when hand delivered to a Party, upon delivery; (ii) when sent by facsimile at the number set forth in Exhibit A hereto, upon receipt of confirmation of error-free transmission; (iii) seven (7) Business Days after deposit in the mail as air mail or certified mail, receipt requested, postage prepaid, and addressed to the relevant Party or Parties as set forth in Exhibit A; or (iv) three (3) Business Days after deposit with an overnight delivery service, postage prepaid, addressed to the relevant Parties as set forth in Exhibit A with next business day delivery guaranteed, provided that the sending Party receives a confirmation of delivery from the delivery service provider.

 

Each person making a communication hereunder by facsimile shall promptly confirm by telephone to the person to whom such communication was addressed each communication made by it by facsimile pursuant hereto, but the absence of such confirmation shall not affect the validity of any such communication. A Party may change or supplement the addresses given above, or designate additional addresses, for purposes of this Section 8.5, by giving the other parties at least five (5) Business Days prior written notice of the new address in the manner set forth above.

 

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8.6                               Amendments.  Any term of this Agreement may be amended only with the written consent of the Company and the Investor.

 

8.7                               Delays or Omissions.  No delay or omission to exercise any right, power, or remedy accruing to any Party, upon any breach or default of any other Party under this Agreement, shall impair any such right, power, or remedy of such Party, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach of default thereafter occurring; nor shall any waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent, or approval of any kind or character of any breach or default under this Agreement or any waiver thereof, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, or by law or otherwise afforded to the Parties shall be cumulative and not alternative.

 

8.8                               Finder’s Fees.  Each Party represents and warrants to the other Party that it has retained no finder or broker in connection with the transactions contemplated by this Agreement.

 

8.9                               Interpretation; Titles and Subtitles.  This Agreement shall be construed according to its fair language. The titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement. Unless otherwise expressly provided herein, all references to Sections and Exhibits herein are to Sections and Exhibits of this Agreement. As used in this Agreement, the words “include” and “including,” and variations thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation.”

 

8.10                        Counterparts.  This Agreement may be executed (including facsimile signature) in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.

 

8.11                        Severability.  If any provision of this Agreement is found to be invalid or unenforceable, then such provision shall be construed, to the extent feasible, so as to render the provision enforceable and to provide for the consummation of the transactions contemplated hereby on substantially the same terms as originally set forth herein, and if no feasible interpretation would save such provision, it shall be severed from the remainder of this Agreement, which shall remain in full force and effect unless the severed provision is essential to the rights or benefits intended by the parties. In such event, the parties shall use best efforts to negotiate, in good faith, a substitute, valid and enforceable provision or agreement which most nearly effects the parties’ intent in entering into this Agreement.

 

8.12                        Further Assurances.  Each Party shall from time to time and at all times hereafter make, do, execute, or cause or procure to be made, done, and executed such further acts, deeds, conveyances, consents, and assurances without further consideration, which may reasonably be required to effect the transactions contemplated by this Agreement.

 

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8.13                        Dispute Resolution.

 

(a)                                 Consultation Between Parties.  Any dispute, controversy or, claim or difference of any kind whatsoever arising out of, relating to, or in connection with this Agreement, or the breach, termination, or invalidity hereof (including the validity, scope, and enforceability of this arbitration provision) (the “Dispute”) shall first be attempted to be resolved through consultation between the Parties in good faith for a period of thirty (30) days after written notice has been sent by any Party to the other Party (the “Consultation Period”).

 

(b)                                 Arbitration.  If the Dispute remains unresolved upon expiration of the Consultation Period, any Party may in its sole discretion elect to submit the matter to arbitration with notice to any other Party or Parties. The arbitration shall be conducted in Hong Kong and shall be administered by the Hong Kong International Arbitration Centre (“HKIAC”) in accordance with the HKIAC Administered Arbitration Rules in force at the time of the commencement of the arbitration. The arbitration tribunal shall consist of three arbitrators. The language of the arbitration shall be English. The decision of the arbitrators (by rule of majority) shall be final and binding on the parties (including any decision on their fees) and their fees shall be borne and paid by the parties in such proportions as the arbitrators shall determine.

 

8.14                        Expenses.  The Investor and the Company shall bear their own cost and expense for consummation of the transaction contemplated hereunder.

 

[The Remainder of this page has been intentionally left blank]

 

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IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized representatives to execute this Agreement as of the date and year first above written.

 

	
 
    	
THE COMPANY:
    
	
 
    	
 
    
	
 
    	
AMTD INTERNATIONAL INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Philip Yau
    
	
 
    	
 
    	
Name: Philip Yau
    
	
 
    	
 
    	
Title: Director
    

 

 

IN WITNESS WHEREOF, the parties hereto have caused their respective duly authorized representatives to execute this Agreement as of the date and year first above written.

 

	
 
    	
THE INVESTOR:
    
	
 
    	
 
    
	
 
    	
INDOCHINA FUND LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kenneth Ying Tze   Man
    
	
 
    	
 
    	
Name: Kenneth Ying   Tze Man
    
	
 
    	
 
    	
Title: Director
    

 

 

EXHIBIT A

 

Notices

 

To the Company

 

	
Address:
    	
 
    	
23/F, Nexxus Building, 41 Connaught Road Central,   Hong Kong
    
	
 
    	
 
    	
 
    
	
Facsimile:
    	
 
    	
(852) 3163 3289
    
	
 
    	
 
    	
 
    
	
Attention:
    	
 
    	
YAU Wai Man Philip
    

 

To the Investor

 

	
Address:
    	
 
    	
Cayman Corporate Centre, 27 Hospital Road, George   Town, Grand Cayman KY1-9008, Cayman Islands
    
	
 
    	
 
    	
 
    
	
Attention:
    	
 
    	
Mr. Kenneth YING Tze Man

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