Document:

Exhibit

Exhibit 10.1

SEPARATION AGREEMENT

THIS SEPARATION AGREEMENT (this “Agreement”) is made and entered into this 25th day of September, 2015, by and between CATHERINE LEE (“Executive”) and PRGX GLOBAL, INC., a Georgia corporation (“Company”).  Executive and Company are sometimes hereinafter referred to together as the “Parties” and individually as a “Party.”

BACKGROUND:

A.    Executive is employed as the Senior Vice President – Human Resources of Company pursuant to an employment agreement between Executive and Company effective as of January 19, 2015 (“Employment Agreement”).

B.    Executive and Company now mutually desire to (i) provide for the end of Executive’s employment and (ii) terminate the Employment Agreement effective as of the date hereof.  

C.     Company and Executive wish to avoid any disputes which could arise under the Employment Agreement and have therefore compromised any claims or rights they have or may have under the Employment Agreement by agreeing to the terms of this Agreement.

NOW, THEREFORE, FOR AND IN CONSIDERATION of the premises, the mutual promises, covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.Termination of Employment.  The Parties agree that (a) the Employment Agreement is hereby terminated as of the date hereof, (b) the initial presentation of this Agreement to Executive on August 25, 2015 constituted written notice of termination of Executive’s employment as set forth in Section 7(d) of her Employment Agreement, (c) Executive’s employment with Company shall terminate effective September 30, 2015 (the “Termination Date”) (although Company reserves the right to elect to pay Executive her base salary and Company’s contribution to the cost of Executive’s welfare benefits through the Termination Date, in accordance with the established payroll practices of Company, but no less frequently than monthly, and remove her from active service), and (c) all benefits, privileges and authorities related to Executive’s employment with Company shall hereby cease, except as otherwise specifically set forth in this Agreement.  
2.    No Admission.  The Parties agree that their entry into this Agreement is not and shall not be construed to be an admission of liability or wrongdoing on the part of either Party.
3.    Future Cooperation.  Executive agrees that, notwithstanding the termination of Executive’s employment, Executive upon reasonable notice will make herself available to Company or its designated representatives for the purposes of: (a) providing information regarding the projects and files on which Executive worked for the purpose of transitioning such projects; and (b) providing 

information regarding any other matter, file, project and/or client with whom Executive was involved while employed by Company.
4.    Consideration.  
(a)    In consideration for Executive’s agreement to terminate the Employment Agreement, to fully release Company from any and all Claims as described below, and to perform the other duties and obligations of Executive contained herein, Company will, subject to ordinary and lawful deductions and Sections 4(b) and (c) below:

(i)    Pay severance to Executive in the form of salary continuation for the twelve (12) months immediately following the Termination Date (“Severance Period”).  Such payments shall be made in accordance with Company’s standard pay practices in an amount equal to nine thousand two hundred thirty and 77/100 dollars ($9,230.77) per bi-weekly pay period during the Severance Period.  

(ii)    Continue after the Termination Date any health care (medical, dental and vision) plan coverage, other than under a flexible spending account, provided to Executive and Executive’s spouse and dependents at the Termination Date for the Severance Period, on a monthly or more frequent basis, on the same basis and at the same cost to Executive as available to similarly-situated active employees during such Severance Period, provided that such continued coverage shall terminate in the event Executive becomes eligible for any such coverage under another employer’s plans.  

(iii)    Pay an amount equal to three-fourths (3/4) of Executive’s actual earned full-year bonus for 2015, payable at the time Executive’s annual bonus for such year otherwise would have been paid had Executive continued employment. Payment of such pro-rated 2015 bonus hereunder, if any, will be dependent upon Company’s achievement of certain revenue and adjusted EBITDA performance goals established by the Compensation Committee for 2015 in the same manner as are applicable to similarly-situated executives of Company who participate in the annual bonus plan for 2015.  

(iv)    Vest, effective as of the date upon which the revocation period for the Release described in Section 4(b) below expires without Executive having elected to revoke the Release, (A) 5,555 of Executive’s outstanding unvested options, with an exercise price of $5.30 per share, that were granted as of January 19, 2015, (B) 1,111 shares of Executive’s outstanding unvested restricted stock that were granted as of January 19, 2015, and (C) a prorated number of Executive’s outstanding unvested restricted stock units that were granted as of March 30, 2105 equal to the number of such restricted stock units multiplied by a fraction, the numerator of which is 273, and the denominator of which is (x) the number of days in the two-year period beginning with calendar year 2015 and ending with calendar year 2016 (the “Cumulative Performance Period”) if no Change in Control (as defined in the restricted stock units award agreement) occurs prior to the end of the Cumulative Performance Period or (y) the number of days in the Cumulative Performance Period until the Change in Control occurs if a Change in Control occurs prior to the end of 

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the Cumulative Performance Period.  Such prorated number of Executive’s restricted stock units shall remain outstanding and be eligible to become payable in accordance with the terms of such restricted stock units, except Executive shall not be entitled to receive any dividend equivalents with respect to such prorated number of Executive’s restricted stock units after the date Executive’s employment with the Company terminates.  Additionally, all of Executive’s outstanding vested stock options shall remain outstanding until the earlier of (i) one year after the Termination Date or (ii) the original expiration date of the options (disregarding any earlier expiration date provided for in any other agreement, including without limitation any related grant agreement, based solely on the termination of Executive’s employment).  All of Executive’s outstanding stock options, restricted stock and restricted stock units that are not otherwise vested as set forth herein shall expire and be forfeited as of the Termination Date without any payment therefor.  

(v)    Payment of one year of outplacement services from Executrak or an outplacement service provider of Executive’s choice, limited to $20,000 in total.  This outplacement services benefit will be forfeited if Executive does not begin using such services within 60 days after the Termination Date.  

(b)    Notwithstanding anything else contained herein to the contrary, no payments shall be made or benefits delivered under this Agreement (other than the payments required to be made by Company pursuant to Section 5 below) unless, within thirty (30) days after the Termination Date:  (i) Executive has signed and delivered to Company a Release in the form attached hereto as Exhibit A (the “Release”); and (ii) the applicable revocation period under the Release has expired without Executive having elected to revoke the Release.  Executive agrees and acknowledges that Executive would not be entitled to such consideration absent execution of the Release and expiration of the applicable revocation period without Executive having revoked the Release.  Any payments to be made, or benefits to be delivered, under this Agreement (other than the payments required to be made by Company pursuant to Section 5 below and the vesting of outstanding unvested options, restricted stock and restricted stock units as set forth in Section 4(a)(iv) above) within the thirty (30) days after the Termination Date shall be accumulated and paid in a lump sum, or as to benefits continued at Executive’s expense subject to reimbursement, with such reimbursement to be made, on the first bi-weekly pay period occurring more than thirty (30) days after the Termination Date, provided Executive delivers the signed Release to Company and the revocation period thereunder expires without Executive having elected to revoke the Release.  

(c)    As a further condition to receipt of the payments and benefits in Section 4(a) above, Executive also waives any and all rights to any other amounts payable to her upon the termination of her employment relationship with Company, other than those specifically set forth in this Agreement, including without limitation any severance, notice rights, payments, benefits and other amounts to which Executive may be entitled under the laws of any jurisdiction and/or her Employment Agreement, and Executive agrees not to pursue or claim any of such payments, benefits or rights. 

(d)    The payments and benefits set forth in Section 4(a)(i) – (iv) above shall continue as set forth above notwithstanding Executive’s death.

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5.    Other Benefits.  Nothing in this Agreement or the Release shall:
(a)    alter or reduce any vested, accrued benefits (if any) Executive may be entitled to receive under any 401(k) plan established by Company; 

(b)    affect Executive’s right (if any) to elect and (subject to Section 4(a)(ii) above) pay for continuation of Executive’s health insurance coverage under Company’s health plans pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (C.O.B.R.A.), as amended; 

(c)    affect Executive’s right (if any) to receive (i) any base salary that has accrued through the Termination Date and is unpaid, (ii) any reimbursable expenses that Executive has incurred before the Termination Date but are unpaid (subject to Company’s expense reimbursement policy) and (iii) any unused paid time off days to which Executive will be entitled to payment, all of which shall be paid as soon as administratively practicable (and in any event within thirty (30) days) after the Termination Date; or 

(d)    affect Executive’s right to continue to receive her base salary and benefits through the Termination Date, as in effect as of the date hereof, which base salary and benefits will continue through the Termination Date, except with respect to any changes in benefits that are applicable generally to the other executives of Company.  

6.    Confidentiality of Agreement Terms.  Except as otherwise expressly provided in this Section 6, Executive agrees that this Agreement and the terms, conditions and amount of consideration set forth in this Agreement are and shall be deemed to be confidential and hereafter shall not be disclosed by Executive to any other person or entity.   The only disclosures excepted by this paragraph are (a) as may be required by law; (b) Executive may tell prospective employers the dates of Executive’s employment, positions held, evaluations received, Executive’s duties and responsibilities and salary history with Company; (c) Executive may disclose the terms and conditions of this Agreement to Executive’s attorneys and tax advisers; and (d) Executive may disclose the terms of this Agreement to Executive’s spouse, if any; provided, however, that any spouse, attorney or tax adviser learning about the terms of this Agreement must be informed about this confidentiality provision, and Executive will be responsible for any breaches of this confidentiality provision by her spouse, attorneys or tax advisers to the same extent as if Executive had directly breached this Agreement.  
7.    Restrictive Covenants.
(a)    Definitions.  For purposes of this Agreement, the following terms shall have the following respective meanings:

(i)    “Business of Company” means services to (A) identify clients’ erroneous or improper payments to vendors and assist clients in the recovery of monies owed to clients as a result of overpayments and overlooked discounts, rebates, allowances 

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and credits, (B) identify and assist clients in recovering amounts owed to them by other third parties, including amounts owed to clients due to non-compliance with applicable contracts, course of dealing or usual and customary terms, (C) assist clients in efforts to organize, manage and analyze their purchasing and payment data, and (D) assist clients in analyzing and managing vendor-related risks.

(ii)    “Confidential Information” means any information about Company or its subsidiaries and their employees, customers and/or suppliers which is not generally known outside of Company, which Executive learned in connection with Executive’s employment with Company, and which would be useful to competitors or the disclosure of which would be damaging to Company or any subsidiary of Company.  Confidential Information includes, but is not limited to: (A) business and employment policies, marketing methods and the targets of those methods, finances, business plans, promotional materials and price lists; (B) the terms upon which Company or any subsidiary of Company obtains products from its suppliers and sells services and products to customers; (C) the nature, origin, composition and development of Company’s or any subsidiary’s services and products; and (D) the manner in which Company or any subsidiary of Company provides products and services to its customers.  

(iii)    “Material Contact” means contact in person, by telephone, or by paper or electronic correspondence in furtherance of the Business of Company.

(iv)    “Restricted Territory” means, and is limited to, the geographic area included in the Atlanta-Sandy Springs-Marietta, Georgia metropolitan statistical area.  Executive acknowledges and agrees that this is a portion of the area in which Company and its subsidiaries does business at the time of the execution of this Agreement, and in which Executive had responsibility on behalf of Company. 

(v)    “Trade Secrets” means Confidential Information of Company and its subsidiaries which meets the definition of a trade secret under applicable law. 

(b)    Confidentiality.  Executive agrees that Executive will not, directly or indirectly, use, copy, disclose, distribute or otherwise make use of on her own behalf or on behalf of any other person or entity (i) any Confidential Information for a period of five (5) years after the Termination Date or (ii) any Trade Secret at any time such information constitutes a trade secret under applicable law.  

(c)    Non-Competition.  Executive agrees that for a period of two (2) years following the Termination Date, Executive will not, either for herself or on behalf of any other person or entity, compete with the Business of Company within the Restricted Territory by performing activities which are the same as or similar to those performed by Executive for Company or Company’s subsidiaries. 

(d)    Non-Solicitation of Customers.  Executive agrees that for a period of two (2) years following the Termination Date, Executive shall not, directly or indirectly, solicit any 

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actual or prospective customers of Company or any subsidiary with whom Executive had Material Contact, for the purpose of selling any products or services which compete with the Business of Company.

(e)    Non-Recruitment of Employees or Contractors.  Executive agrees that for a period of two (2) years following the Termination Date, Executive will not, directly or indirectly, solicit or attempt to solicit any employee or contractor of Company or any subsidiary with whom Executive had Material Contact, to terminate or lessen such employment or contract. 

(f)    Acknowledgments.  Executive hereby acknowledges and agrees that the covenants contained in (b) through (e) of this Section 7 hereof are reasonable as to time, scope and territory given Company’s and Company’s subsidiaries’ need to protect their business, customer relationships, personnel, Trade Secrets and Confidential Information.  For purposes of the covenants contained in (b) through (e) of this Section 7, Company shall refer also to Company’s subsidiaries as applicable.  In the event any covenant or other provision in this Agreement shall be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it shall be interpreted to extend only over the maximum period of time for which it may be enforceable and/or over the maximum geographical area as to which it may be enforceable and/or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action, and the invalidity of any one or more of the covenants or other provisions in this Agreement shall not cause or render any other covenants or provisions in this Agreement invalid or voidable.  Executive acknowledges and represents that Executive has substantial experience and knowledge such that Executive can readily obtain subsequent employment which does not violate this Agreement.

(g)    Specific Performance.  Executive acknowledges and agrees that any breach of the provisions of this Section 7 by her will cause irreparable damage to Company or Company’s subsidiaries, the exact amount of which will be difficult to determine, and that the remedies at law for any such breach will be inadequate.  Accordingly, Executive agrees that, in addition to any other remedy that may be available at law, in equity, or hereunder, Company shall be entitled to specific performance and injunctive relief, without posting bond or other security, to enforce or prevent any violation of any of the provisions of this Section 7 by Executive.  Additionally, notwithstanding the obligations within Section 11 of this Agreement regarding the exclusive jurisdiction of the United States District Court for the Northern District of Georgia and the State and Superior Courts of Cobb County, Georgia pertaining to actions arising out of this Agreement, and in addition to Company’s right to seek injunctive relief in any state or federal court located in Cobb County, Georgia, the Parties hereby acknowledge and agree that Company may seek specific performance and injunctive relief in any jurisdiction, court or forum applicable to Executive’s then current residency in order to prevent or to restrain any breach by Executive, or any and all of Executive’s partners, co-venturers, employers, employees, or agents, acting directly or indirectly on behalf of or with Executive, of any of the provisions of the restrictive covenants contained in this Section 7.

8.    Return of all Property and Information of Company.  Executive agrees to return all property of Company and its subsidiaries within seven (7) days following the execution of this 

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Agreement.  Such property includes, but is not limited to, the original and any copy (regardless of the manner in which it is recorded) of all information provided by Company or any subsidiary thereof to Executive or which Executive has developed or collected in the scope of Executive’s employment related to Company and its subsidiaries or affiliates as well as all Company or subsidiary-issued equipment, supplies, accessories, vehicles, keys, instruments, tools, devices, computers, cell phones, pagers, materials, documents, plans, records, notebooks, drawings, or papers.  Upon request by Company, Executive shall certify in writing that Executive has complied with this provision, and has deleted all information of Company and its subsidiaries from any computers or other electronic storage devices owned by Executive.  Executive may only retain information relating to Executive’s benefit plans and compensation to the extent needed to prepare Executive’s tax returns.  
9.    No Harassing or Disparaging Conduct. Executive further agrees and promises that Executive will not engage in, or induce other persons or entities to engage in, any harassing or disparaging conduct or negative or derogatory statements directed at or about Company or its subsidiaries or affiliates, the activities of Company or its subsidiaries or affiliates, or the Releasees at any time in the future.  Notwithstanding the foregoing, this Section 9 may not be used to penalize Executive for providing truthful testimony under oath in a judicial or administrative proceeding or complying with an order of a court or government agency of competent jurisdiction.
10.    References.  Following the Termination Date, Executive agrees to direct any third party seeking an employment reference to Company’s Chief Executive Officer and Company agrees to give any potential employers who inquire about Executive’s work history at Company a neutral reference consisting of Employee’s dates of employment, title and compensation.  Company will not be responsible with respect to any references which are directed by Executive to anyone other than Company’s Chief Executive Officer.  
11.    Construction of Agreement and Venue for Disputes.  This Agreement shall be deemed to have been jointly drafted by the Parties and shall not be construed against either Party. This Agreement shall be governed by the law of the State of Georgia, and the Parties agree that any actions arising out of or relating to this Agreement or Executive’s employment with Company must be brought exclusively in either the United States District Court for the Northern District of Georgia, or the State or Superior Courts of Cobb County, Georgia.  Notwithstanding the pendency of any proceeding, either Party shall be entitled to injunctive relief in a state or federal court located in Cobb County, Georgia upon a showing of irreparable injury.  The Parties consent to personal jurisdiction and venue solely within these forums and solely in Cobb County, Georgia and waive all otherwise possible objections thereto.  The prevailing Party shall be entitled to recover its costs and attorneys fees from the non-prevailing Party in any such proceeding no later than 90 days following the settlement or final resolution of any such proceeding.  The existence of any claim or cause of action by Executive against Company or Company’s subsidiaries or affiliates, including any dispute relating to the termination of Executive’s employment or under this Agreement, shall not constitute a defense to enforcement of said covenants by injunction.  
12.    Severability.  If any provision of this Agreement shall be held void, voidable, invalid or inoperative, no other provision of this Agreement shall be affected as a result thereof, and 

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accordingly, the remaining provisions of this Agreement shall remain in full force and effect as though such void, voidable, invalid or inoperative provision had not been contained herein.
13.    No Reliance Upon Other Statements.  This Agreement is entered into without reliance upon any statement or representation of any Party hereto or any Party hereby released other than the statements and representations contained in writing in this Agreement (including all Exhibits hereto).  
14.    Entire Agreement.  This Agreement, including all Exhibits hereto (which are incorporated herein by this reference), contains the entire agreement and understanding concerning the subject matter hereof between the Parties hereto.  No waiver, termination or discharge of this Agreement, or any of the terms or provisions hereof, shall be binding upon either Party hereto unless confirmed in writing.  This Agreement may not be modified or amended, except by a writing executed by both Parties hereto.  No waiver by either Party hereto of any term or provision of this Agreement or of any default hereunder shall affect such Party’s rights thereafter to enforce such term or provision or to exercise any right or remedy in the event of any other default, whether or not similar.
15.    Further Assurance.  Upon the reasonable request of the other Party, each Party hereto agrees to take any and all actions, including, without limitation, the execution of certificates, documents or instruments, necessary or appropriate to give effect to the terms and conditions set forth in this Agreement.
16.    No Assignment.  Neither Party may assign this Agreement, in whole or in part, without the prior written consent of the other Party, and any attempted assignment not in accordance herewith shall be null and void and of no force or effect.
17.    Binding Effect.  This Agreement shall be binding on and inure to the benefit of the Parties and their respective heirs, representatives, successors and permitted assigns.
18.    Indemnification.  Company understands and agrees that any indemnification obligations under its governing documents or the indemnification agreement between Company and Executive with respect to Executive’s service as an officer of Company remain in effect and survive the termination of Executive’s employment under this Agreement as set forth in such governing documents or indemnification agreement.
19.    Nonqualified Deferred Compensation.
(a)    It is intended that any payment or benefit which is provided pursuant to or in connection with this Agreement which is considered to be deferred compensation subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), shall be paid and provided in a manner, and at such time and form, as complies with the applicable requirements of Section 409A of the Code to avoid the unfavorable tax consequences provided therein for non-compliance.  

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(b)    Neither Company nor Executive shall take any action to accelerate or delay the payment of any monies and/or provision of any benefits in any manner which would not be in compliance with Section 409A of the Code (including any transition or grandfather rules thereunder).  

(c)    For purposes of this Agreement, all rights to payments and benefits hereunder shall be treated as rights to receive a series of separate payments and benefits to the fullest extent allowed by Section 409A of the Code.

(d)    Notwithstanding any other provision of this Agreement, neither Company nor its subsidiaries or affiliates shall be liable to Executive if any payment or benefit which is to be provided pursuant to this Agreement and which is considered deferred compensation subject to Section 409A of the Code otherwise fails to comply with, or be exempt from, the requirements of Section 409A of the Code.

[signature page to follow]

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IN WITNESS WHEREOF, the Parties have executed, or caused their duly authorized representatives to execute, this Agreement as of the day and year first above written.

“Executive”

/s/ Catherine Lee                
Catherine Lee

“Company”

PRGX GLOBAL, INC.

By:    /s/ Victor A. Allums            

Title:    SVP & General Counsel        

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EXHIBIT A
Form of Release

RELEASE

In consideration for the undertakings and promises set forth in that certain Separation Agreement, dated as of September ___, 2015 (the “Agreement”), between CATHERINE LEE (“Executive”) and PRGX GLOBAL, INC. (“Company”), Executive (on behalf of herself and her heirs, assigns and successors in interest) unconditionally releases, discharges, and holds harmless Company and its subsidiaries and affiliates and their respective officers, directors, employees, agents, insurers, assigns and successors in interest (collectively, “Releasees”) from each and every claim, cause of action, right, liability or demand of any kind and nature, and from any claims which may be derived therefrom (collectively “Released Claims”), that Executive had, has, or might claim to have against Releasees at the time Executive executes this Agreement, whether presently known or unknown to Executive, including, without limitation, any and all claims listed below, other than any such claims Executive has or might have under the Agreement:

(a)    arising from Executive’s employment, pay, bonuses, vacation or any other Executive benefits, and other terms and conditions of employment or employment practices of Company;

(b)    arising out of or relating to the termination of Executive’s employment with Company or the surrounding circumstances thereof;

(c)    based on discrimination and/or harassment on the basis of race, color, religion, sex, national origin, handicap, disability, age or any other category protected by law under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, Executive Order 11246, the Age Discrimination in Employment Act, the Older Workers Benefits Protection Act, the Equal Pay Act, the Americans With Disabilities Act, the Rehabilitation Act of 1973, C.O.B.R.A. (as any of these laws may have been amended) or any other similar labor, employment or anti-discrimination law under state, federal or local law;

(d)    based on any contract, tort, whistleblower, personal injury wrongful discharge theory or other common law theory; or

(e)    arising under the Employment Agreement or any other written or oral agreements between Executive and Company or any of Company’s subsidiaries (other than the Agreement).

Executive covenants not to sue or initiate any claims against any of the Releasees on account of any Released Claim or to incite, assist or encourage other persons or entities to bring claims of any nature whatsoever against Company or Releasees.  Executive further covenants not to accept, recover or receive any monetary damages or any other form of relief which may arise out of or in 

connection with any administrative remedies which may be filed with or pursued independently by any governmental agency or agencies, whether federal, state or local.

Executive hereby acknowledges that Executive has no interest in reinstatement, reemployment or employment with Company, and Executive forever waives any interest in or claim of right to any future employment by Company.  Executive further covenants not to apply for future employment with Company or otherwise seek or encourage reinstatement.

By signing this Release, Executive certifies that:

(a)    Executive has carefully read and fully understands the provisions of this Release; 

(b)    Executive was advised by Company in writing, via this Release, to consult with an attorney before signing this Release;

(c)    Executive understands that any discussions she may have had with counsel for Company regarding his employment or this Release does not constitute legal advice to her and that she has retained her own independent counsel to render such advice;

(d)    Executive understands that this Agreement FOREVER RELEASES Company and all other Releasees from any legal action arising prior to the date of execution of this Agreement;

(e)    In signing this Agreement, Executive DOES NOT RELY ON AND HAS NOT RELIED ON ANY REPRESENTATION OR STATEMENT (WRITTEN OR ORAL) NOT SPECIFICALLY SET FORTH IN THIS RELEASE OR THE AGREEMENT by Company or any other Releasee, or by any of their agents, representatives, or attorneys with regard to the subject matter, basis, or effect of this Agreement or otherwise;

(f)    Company hereby allows Executive no less than twenty-one (21) days from its initial presentation to Executive to consider this Release before signing it, should Executive so desire; and

(g)    Executive agrees to its terms knowingly, voluntarily and without intimidation, coercion or pressure.

Executive may revoke this Release within seven (7) calendar days after signing it.  To be effective, such revocation must be received in writing by the General Counsel of Company at the offices of Company at 600 Galleria Parkway, Suite 100, Atlanta, Georgia 30339.  Revocation can be made by hand delivery or facsimile before the expiration of this seven (7) day period.

[signature page to follow]

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IN WITNESS WHEREOF, the undersigned has executed this Release as of the date set forth below.

“Executive”

                    
Catherine Lee        

Dated:  ______________ ___, 2015

26533813v7 

3nptn_Ex10_2

		
			Exhibit 10.2
		

		
			                                 
		

		
			 Contract No.:  2015 SY H ZZ No. 0013  
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Comprehensive Credit Granting Contract
		

		
			(Version 1.0, 2014)
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			CHINA CITIC BANK
		

		
			

		 

 

 
		

		
			 
		

		
			 
		

		
			Instruction 
		

		
			 
		

		
			   I. This contract shall be filled out with black blue or black signature pen or fountain pen. 
		

		
			   II. This contract shall be filled out completely, and written clearly and neatly. 
		

		
			   III. Currencies shall be filled out in Chinese rather than replaced with currency symbols, amounts of currency in words shall be added with Chinese names of currency in front of them, amounts of currency in figures shall be added with currency symbols in front of them. 
		

		
			   IV. Extra blanks or blanks not to be filled out in this contract may be handled by adopting broken lines, slashes or stamping the seal of “Blank hereunder” or filling the words “Blank hereunder”. 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

 

 
		

		
			Comprehensive Credit Granting Contract
		

		
			 
		

		
			Credit Grantee 1: Neophotonics (China) Co., Ltd 
		

		
			Address: Keji South 12th Road, Hi-tech Industrial Park, Nanshan District, Shenzhen
		

		
			Postal Code: 518057
		

		
			Contact: Chuanfang Zheng
		

		
			Tel: 0755-26748269
		

		
			Fax: 0755-26748187
		

		
			Email: Chuanfangzheng_zheng@neophotonics.com.cn
		

		
			Legal Representative /Principal: Timothy S. Jenks
		

		
			Bank of Deposit and Account No.: Shenzhen Houhai Sub-branch CITIC Bank 7442610182400001273
		

		
			 
		

		
			 
		

		
			Credit Grantee 1: Neophotonics Dongguan Co., Ltd 
		

		
			Address: Keji South 12th Road, Hi-tech Industrial Park, Nanshan District, Shenzhen
		

		
			Postal Code: 518057
		

		
			Contact: Chuanfang Zheng
		

		
			Tel: 0755-26748269
		

		
			Fax: 0755-26748187
		

		
			Email: Chuanfangzheng_zheng@neophotonics.com.cn
		

		
			Legal Representative /Principal: Timothy S. Jenks
		

		
			Bank of Deposit and Account No.: Shenzhen Houhai Sub-branch CITIC Bank 7442610182400010941
		

		
			(Above Credit Grantee 1 and 2 are collectively hereunder referred  to as “Party A)
		

		
			 
		

		
			 
		

		
			Credit Grantor: Shenzhen Branch CITIC Bank
		

		
			Address: The 1st Floor and 5-10th Floor, North Block, Stage II, Times Square Excellence, No.8 Fuhua Third Road, Futian District, Shenzhen City 
		

		
			Postal Code: 518000
		

		
			Contact: Xia Pei
		

		
			Tel: 0755-86288310
		

		
			Fax: 0755-86288315
		

		
			Legal Representative/Principal: Xuying Chen
		

		
			 
		

		
			Contract Signing Place:  Futian Shenzhen                                   
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

 

 
		

		
			 
		

		
			   This contract is entered into by and between party A and party B through negotiation, in accordance with the Commercial Bank Law of the People’s Republic of China, the Contract Law of the People’s Republic of China and other related laws and regulations, as well as based on the principles of honesty, creditability, equality and voluntariness. 
		

		
			 
		

		
			   Article 1 Definition 
		

		
			   The following terms under this contract shall be defined as follows unless otherwise clearly stipulated in the context: 
		

		
			   1.1 “Comprehensive Credit Granting” means the qualification or right of party B to, based on the comprehensive evaluation of party A’s credit and security provided, grant party A the right of applying for loan, note discount, corporation overdraft, or opening of bank acceptance bills, letter of guarantee, letter of credit or other operations within certain term and certain credit line. 
		

		
			   1.2 “Credit Balance” means the sum of the principals of the outstanding debts generated from the comprehensive credit granting used by party A under this contract but not yet repaid. In case of opening of bank acceptance bills, it means the sum of bank acceptance bills already issued by party B under this contract or specific business contract but not yet paid; in case of issuing of letter of credit, it means the sum of letter of credit already issued by party A under this contract or specific business contract but not yet paid, in case of issuing of letter of guarantee, it means the sum of letter of guarantee already issued by party B under this contract or specific business contract but not yet paid. 
		

		
			   1.3 “Specific Business Contract” means the documents and commitments (in whatever name) that party A enters into with party B by using the comprehensive credit line under this contract during the term of credit granting as well as constitute the contractual relationship between party A and party B for specific business according to law, and the guarantee documents (if any) that restrain the guarantor under specific business; the afore-mentioned specific business contract shall include but not limited to business-related contracts, agreements, applications, commitment letters, guarantee contracts/agreements, guarantee letters, business vouchers issued by party B or its designated handling agencies (including the related documents that are unilaterally issued by party A and accepted by party B), etc. When party B doesn’t require signing other formal contract for specific business, the related terms of this contract and related documents formed in handling specific business shall automatically constitute specific business contracts between party A and party B. 
		

		
			 
		

		
			
		

		
			

		 

 

   Article 2 Comprehensive Credit Line and Type 
		

		
			   2.1 The comprehensive credit line that party A may apply to party B for during the using term of the comprehensive credit line as agreed in this contract is: Currency  RMB   (Words)  One hundred and thirty-three million , (figures)  133,000,000.00 . This comprehensive credit line is (fill with “√” for Yes and fill with “X” for No): 
		

		
			   □√Exposure credit line, meaning the credit line after deducting the  pledge of security deposit,  deposit receipt, bank acceptance bills and financing product that meet low risk requirements (security deposit, deposit receipt) that guarantees the credit granting. 
		

		
			   □X Non-exposure credit line
		

		
			   2.2 The specific business type that is applicable to the comprehensive credit line under this contract and the credit line respectively occupies are in  (1)    as follows: 
		

		
			   (1) This credit line shall be collectively used and collectively managed without being classified based on business types; 
		

		
			   (2) The applicable specific business types and the respective credit line occupied are (for those only being classified based on business types and not occupying credit line, you only need to fill it with √, and fill amounts with “/”): 
		

		
			   □Credit line of working capital loans: (Words)      /     , (Figures)      /        ;  
		

		
			   □Credit line of fixed assets loans: (Words)       /      , (Figures)     /         ;
		

		
			   □Credit line of project financing: (Words)      /       , (Figures)       /       ;
		

		
			   □Credit line of opening of bank acceptance bills: (Words)    /          ,  
		

		
			(Figures)        /      ;
		

		
			   □Credit line of discount of bank acceptance bills: (Words)      /       ,
		

		
			 (Figures)         /     ;
		

		
			   □Credit line of discount of commercial acceptance bills: (Words)      /       ,
		

		
			 (Figures)         /     ;
		

		
			   □Credit line of opening of letters of credit: (Words)     /         ,
		

		
			 (Figures)        /      ;
		

		
			   □Credit line of opening of letters of bank guarantee: (Words)     /         ,
		

		
			 (Figures)     /         ;
		

		
			

		 

 

   □Credit line of trade financing: (Words)          /    , (Figures)      /        ;
		

		
			   □Credit line of corporation overdrafts (Words)       /       , (Figures)    /          ;
		

		
			   □Others:                  /                                            
		

		
			   If party A needs to apply for handling other operations than the business scope stipulated above within the credit line, party A needs to propose a written application to party B and obtain a written consent from party B. 
		

		
			   2.3 The comprehensive credit line under this contract shall be used in the  (1)    method as follows:  
		

		
			   (1) Party A shall apply for any and all credit lines before using; 
		

		
			   (2) Party A and other companies authorized by party A (refer to the List of Appendixes) may jointly apply for and use the credit line, any other company in the List of Appendixes that uses the comprehensive credit line under this contract shall enter into specific business contract with party B. 
		

		
			   
		

		
			   Article 3 Using Term of Comprehensive Credit Line 
		

		
			   3.1 The using term of the comprehensive credit line agreed under this contract shall be from the date of   10/20/2015     to the date of   09/15/2016   (hereunder referred to as the “Expiry Date of the Term of Credit Line”). 
		

		
			   3.2 The beginning date and expiry date of specific businesses shall be otherwise agreed under specific business contracts, the beginning date shall be included in the using term of the foresaid comprehensive credit line, the expiry date may be prior to, on or later than the expiry date of the term of credit line based on business types. Unless otherwise agreed under this contract, the expiry date of the term of credit line shall not be interpreted as expiry date of any specific business. 
		

		
			 
		

		
			   Article 4 Use of Comprehensive Credit Line 
		

		
			   4.1 Within the using term and comprehensive credit line agreed under this contract, party A may apply to party B in writing for using this comprehensive credit line at once or in multiple times. 
		

		
			   4.2 When party A applies for using comprehensive credit line, party A shall propose credit line using application in written form, which shall clearly state the business type, term, amount, etc. of the credit line to be used, and party A shall provide the related materials and handle related guarantee procedures (if any) as required by party B. If party B believes party A meets its credit granting conditions and the contractual terms after review, party B and party A shall enter into specific business contract or other legal documents recognized by party B. 
		

		
			   4.3 The type, credit line, term, use, interest rate, exchange rate, discount rate and expense of specific business as well as other rights and obligations of party A and party B shall be in accordance with the 

		 

 

specific business contract entered into by and between the two parties. Party B shall fulfill loan release and other related obligations only based on the terms of specific business contract. 
		

		
			   4.4 Any and all inconsistencies between the specific business contract entered into by and between party A and party B under this contract and terms set forth under this contract shall be in accordance with such specific business contract. 
		

		
			   4.5 The credit balance formed by party A during the using term of credit line shall not exceed the comprehensive credit line set forth in Article 2.1 and the credit line of corresponding business type set forth in Article 2.2 at all times. During the using term of comprehensive credit line, for the comprehensive credit line that is already paid off by party A, party B agrees to handle it in the following  (1)     method, any unused comprehensive credit line during the using term of comprehensive credit line shall be automatically canceled after the expiration of such using term. 
		

		
			   (1) Circle use allowed. Meaning under the comprehensive credit line set forth in Article 2 of this contract, if party A has paid off the debt to party B within the using term of the foresaid comprehensive credit line, for the paid-off part of debts, party B may recover the related credit line for party A, and party A may reuse it during the using term of the comprehensive credit line; 
		

		
			   (2) Circle use not allowed. Meaning under the comprehensive credit line set forth in Article 2 of this contract, if party A has paid off the debt to party B within the using term of the foresaid comprehensive credit line, for the paid-off part of loan, party B shall not recover the related credit line for party A, and party A shall not reuse it during the using term of the comprehensive credit line;
		

		
			   4.6 In case party A has any breach of contract behavior stipulated in this contract or specific business contract, or there is any adjustment of financial policy, currency policy or credit policy by national or financial regulatory authorities, or there is any major adjustment of party B’s credit policy, or there is any negative policy adjustment and financial risk in the industry and region of party A, or there is any change to party A’s operating or financial situation or party A’s enterprise mechanism, or there is any material negative change to party A’s solvency, or party A’s credit rating score or level by evaluated by party B decreases, party B shall have the right to adjust the credit line actually unused by party A at any time by notifying party A in writing, including but not limited to adjustment to the amount of adjustment, the scope of the types of credit granting business, whether it is circle and the term of licensing, such adjustment shall immediately come into effect after arriving at party A. 
		

		
			   
		

		
			   Article 5 Party A’s Representations and Warranties 
		

		
			   5.1 Party A is a Chinese legal person or other organization established in accordance with the laws of the People’s Republic of China, having the civil right and civil capacity needed to sign and fulfill this contract according to law, and able to independently bear civil liabilities, and party A has obtained all the necessary and legal internal and external approvals and authorizations to sign this agreement. 
		

		
			   5.2 Party A hereby guarantees that its behavior of signing and fulfilling this contract are not against the laws, regulations, protocols, judgments, rulings, orders or the company’s articles of association that it shall comply with, nor in conflict with any other obligation in any contract or agreement signed. 
		

		
			

		 

 

   5.3 Party A confirms that it didn’t, as signing this contract, hide any litigation case, arbitration case, administrative case, assets preservation measure, enforcement procedure that is already occurred or about to occur, influenced or may influence its signing or fulfillment of this contract, or may generate negative influence on its financial state, or other event that may generate negative influence on the state of enterprise operation; besides, party A shall continuously bear the obligation of timely disclosing the foresaid information to party B during the effective term of this contract. 
		

		
			   5.4 Party A guarantees to use the credit line according to laws and regulations as well as the provisions in specific business contract, and coordinate party B in inspecting the fulfillment of related specific business contract as required by party B. 
		

		
			   5.5 Party A guarantees to, during the term of credit line and as required by party B, timely submit authentic financial statements and other materials reflecting the enterprise’s operating state, as well as guarantees the materials, documents, data and information provided to be authentic, accurate, complete, legal and effective. 
		

		
			   5.6 Party A guarantees to develop operational activities according to law during the using term of the comprehensive credit line, and adopt effective measures to prevent occurrence of any event that jeopardizes or damages or may jeopardize or damage party B’s rights and interests. 
		

		
			   5.7 Party A agrees that party B provides its credit information to the financial credit information basic database and/or the credit information service approved by the People’s Bank of China, authorizes and agrees party B to, for the purpose of this contract, inquire, download, copy, print and use its credit information from the financial credit information basic database and/or the credit information service approved by the People’s Bank of China, and use them for the legal and regular purposes relating to this contract; if party A fails to fulfill the related obligations of this contract or specific business contract, any and all negative credit consequences incurred hereof shall be borne by party A itself. 
		

		
			 
		

		
			   Article 6 Party A’s Rights and Obligations 
		

		
			   6.1 During the using term of comprehensive credit line, if there is any change to party A’s operating decision making, including but not limited to share transfer, reorganization, merge, splitting, shareholding reform, joint venture, cooperation, joint operation, contracting lease, change to business scope and registered capital or other circumstances that may affect party B’s rights and interests, party A shall send a written notice to party B at least thirty days in advance, and implement the debt repayment liabilities under this contract as consented by party B in writing, or provide security recognized by party B. 
		

		
			   6.2 If party A disposes all or part of its assets or business revenue by transferring, leasing or setting security for other debts than the debt under this contract or other matters that may affect party B’s rights and interests, party A shall send a written notice to party B at least thirty days in advance and obtain a written notice from party B in advance. 
		

		
			   6.3 In case of any event that has negative influence on the fulfillment of debts under this contract, including but not limited to involvement in litigation, arbitration, criminal investigation, administrative 

		 

 

punishment, suspension, business discontinuation, dissolution, being declared of bankruptcy, being suspended of business license, being canceled, deterioration of financial conditions, etc., party A shall send a written notice to party B within three days after the occurrence or possible occurrence of the afore-mentioned event. 
		

		
			   6.4 If the guarantor has any negative circumstance, including but not limited to suspension, business discontinuation, being declared of bankruptcy, dissolution, being canceled of business license, being canceled or operation loss, etc. partially or entirely loses the guaranteeing ability relating to this contract, or have the value of the mortgage or collateral serving as the security under this contract diminished or have any circumstance that may be negative to the security of party B’s creditor’s rights, party A shall provide new security recognized by party B. 
		

		
			   6.5 Without a written consent from party B, party A shall not entirely or partially transfer the debts under this contract to any third party. 
		

		
			   6.6 Party A guarantees to timely repay the principal and interests of the credit line, and timely pay the payable expenses. For the due (including advance due) payables of party A under this contract and specific business contract, including but not limited to the corresponding principal, interests, penalty interests and other payable expenses of the already used credit line, party B shall have the right to deduct it from any account of party A opened at China CITIC Bank without obtaining the consent from party A in advance. When party B actively deducts payment based on this contract and provision in specific business contract, if the currency of such account is inconsistent with the business pricing currency, it shall be calculated and converted based on the exchange rate released by party B on the date of settlement. 
		

		
			   6.7 During the using term of the comprehensive credit line, if party A changes its legal person name, legal representative, project principal, address, telephone, fax, etc., party A shall notice party B in writing within seven days after such change. 
		

		
			   6.8 Party A shall provide, as required by party B, party B with the information and materials, including the related group members’ names, legal representatives, actual controllers, registration places, registered capitals, main businesses, equity structures, senior management, financial conditions, major assets projects, guarantee status, main litigations, etc., and guarantee such materials to be authentic, accurate, complete, legal and effective. If there is any change to the foresaid information and material of group member, party A shall notice party B in writing within 3 days after the occurring date of such change. 
		

		
			   6.9 Party A shall timely submit written reports to party B to inform any and all affiliated transactions that are occurred or about to occur and account for over 10% (including 10%) of party A’s net assets, including but not limited to the affiliation relationship between different transacting parties, transaction items, transaction natures, transaction amount or related ratios, pricing policy (including the transactions without amount or with only symbolic amounts). 
		

		
			   6.10 Party A shall not sign or issue any contract, commitment or other text with any third party that damages party B’s realization of its creditor’s rights under this contract and specific business contract, or engages in any transaction or behavior that damages the realization of party B’s creditor’s rights. 
		

		
			

		 

 

   6.11 If party B makes any external payment, compensation or advance payment based on party A’s application for bank letter of guarantee, letter of credit or bank acceptance bill, party A shall unconditionally confirm and repay the related advance payment, interest and expense paid by party B in advance within agreed period. 
		

		
			 
		

		
			   Article 7 Party B’s Rights and Obligations 
		

		
			   7.1 Party B shall have the right to decide if signing each specific business contract with party A based on the related management regulations and credit approving procedures of China CITIC Bank, and shall have the right to inspect and supervise the fulfillment of each specific business contract at any time. 
		

		
			   7.2 Party B shall keep the materials, documents and information provided by party A in confidentiality, except for the inquiries and disclosures according to laws, regulations or requirements by the authorities. 
		

		
			   
		

		
			   Article 8 Guarantee 
		

		
			   8.1 In order to guarantee the creditor’s rights formed under this contract to be repaid, the following  (1)  guarantee method shall be adopted: 
		

		
			   (1) Guarantor Neophotonics (China) Co., Ltd and party B enter into the “ Maximum Amount Guarantee   Contract” with serial number of  2015 SYHZBZ No. 0012 ;  
		

		
			   (2) Mortgagor       /        and party B enter into the “     /      Contract” with serial number of     /           ;
		

		
			   (3) Pledgor       /        and party B enter into the “       /    Contract” with serial number of         /       ;
		

		
			   (4) Others:                        /                                    .  
		

		
			   8.2 When party A and party B enter into specific business contract under this contract or during the actual fulfillment process of this contract and specific business contract, party B shall have the right to require party A to provide other security than the one stipulated in this term, the already used credit line of party A within the comprehensive credit line may also be included in the scope of new security. 
		

		
			   8.3 If there are multiple security methods under this comprehensive credit line, party B shall have the right to choose any one or all the security methods to realize its security rights. Party B’s waiver of any one security right (no matter such security is provided by party A or third party) or change of the sequence or content of security right due to any reason shall not affect party B’s priority right to be repaid over other security rights. 
		

		
			 
		

		
			

		 

 

   Article 9 Liabilities for Breach of Contract 
		

		
			   9.1 Party A and party B shall strictly fulfill the agreements under this contract and specific business contract. Either party that fails to fulfill or fails to completely fulfill any agreed obligation shall bear the related liabilities for breach of contract and compensate the other party for any and all losses caused. 
		

		
			   9.2 During the fulfillment process of this contract or specific business contract, in case of any of the following circumstances, party A shall be deemed as committing breach of contract: 
		

		
			   9.2.1 During the effective term of this contract, party A explicitly expresses or uses its own action to indicate that it is unable to fulfill or fails to fulfill obligations under this contract or specific business contract; 
		

		
			   9.2.2 Party A violates any agreement under this contract or specific business contract; 
		

		
			   9.2.3 The documents relating to this contract that party A provides to party B and the representations and warranties stipulated in Article 5 of this contract are proven to be unauthentic, inaccurate, incomplete or purposefully misleading; 
		

		
			   9.2.4 Party A stops to repay its due debts, or is unable to or indicating its inability to repay the debts; 
		

		
			   9.2.5 Party A has any suspension, business discontinuation, being declared of bankruptcy, dissolution, being suspended of business license, being canceled, or has any litigation, arbitration, criminal or administrative punishment that has negative consequence on party A’s operation or assets state, and party B believes it may or has already affected or damaged party B’s rights and interests under this contract; 
		

		
			   9.2.6 There is any change to party A’s address, business scope, legal representative or other matters of industrial and commercial registration, or any external investment situation that affects or threaten the realization of party B’s creditor’s rights; 
		

		
			   9.2.7 Party A has any financial loss, asset loss or any asset loss caused from its external guarantee, or other financial crisis that makes party B believe that it may or has already affected or damaged party B’s rights and interests under this contract; 
		

		
			   9.2.8 Party A changes the purpose of credit line at will; 
		

		
			   9.2.9 There is any major crisis in the operation or finance of party A’s controlling shareholder or other affiliated company, or there is any major affiliated transaction between party A and its controlling shareholder or other affiliated company, which affects the normal operation of party A; 
		

		
			   9.2.10 There is any negative change in the industry of party A that makes the realization of party B’s creditor’s rights to be materially affected or threatened; 
		

		
			   9.2.11 Party A’s senior management is lost of contact, missing, dead, declared of missing, declared of death, suspected of involvement in corruption, bribery, malpractice or illegal operation case that party B believes it may or has already affected or damaged party B’s rights and interests under this contract; 
		

		
			   9.2.12 Party A has any breach of contract to other creditors that affects the realization of party B’s creditor’s rights; 
		

		
			

		 

 

   9.2.13 The guarantor violates any agreement under the guarantee contract or has any breach of contract under the guarantee contract, and party A fails to provide new security meeting party B’s requirements; 
		

		
			   9.2.14 Any mortgage or collateral under this contract is sealed, seized, reported of loss, suspended of payment or adopted of other enforcement measures, having dispute over ownership, subject to or may be subject to infringement by any third party, receiving negative influence on safety or intact state, or such mortgage or collateral already loses or is about to lose the ability to provide security for party B’s creditor’s rights, and party A fails to provide new security that meets party B’s requirements; 
		

		
			   9.2.15 Party A uses any false contract with its affiliated party or other party to discount from party B with notes receivable or accounts receivable without actual trading background, so as to extract fund or credit line from party B; 
		

		
			   9.2.16 Party A refuses to accept party B’s supervision and inspection on the fulfillment of each specific business contract and related operational and financial activities; 
		

		
			   9.2.17 Party B has already escaped or tries to escape its debts to party B through affiliated transactions; 
		

		
			   9.2.18 In case of other events or circumstances that jeopardize or damage or may jeopardize or damage party B’s rights and interests or party B believes sufficient to affect party A’s debt repaying ability. 
		

		
			   9.3 In case of any circumstance stipulated in Article 9.2 above, party B shall have the right to exercise the following one or several measures as follows, and party A has no dispute over this: 
		

		
			   9.3.1 Require party A or the guarantor to correct breach of contract within limited period; 
		

		
			   9.3.2 Adjust, cancel or suspend the comprehensive credit line under this contract, or adjust the using term of credit line; 
		

		
			   9.3.3 Suspend the release of the comprehensive credit line under this contract, announce party A’s debts under this contract (including the corresponding principal, interests, expenses or other payable amounts of the already used credit line) to entirely or partially mature immediately, require party A to immediately repay all or part of the already used credit line; if party B has opened bank acceptance bills, letter of credit, letter of guarantee or assumes other contingent debt under this contract, party B shall have the right to require party A to deposit the amount required and the supplementary deposit or other related payments to the account designated by party B. 
		

		
			   9.3.4 Collect penalty interest and compound interest according to the related regulations of the People’s Bank of China and agreements in business documents; 
		

		
			   9.3.5 Require party A to provide other guarantee, mortgage, pledge or other security recognized by party B, or adopt other measures to ensure the legal rights and interests of party B not to be harmed; 
		

		
			   9.3.6 Have the right to exercise security rights; 
		

		
			   9.3.7 Based on the provisions in this contract, directly deduct payments from any account opened by party A at China CITIC Bank to repay the entire debts (including the debts of advance repayment as required by party B) under this contract and each specific business contract, without the need to obtaining 

		 

 

party A’s consent in advance; if party B has opened bank acceptance bills, letter of credit, letter of guarantee or assumes other contingent debts under specific business contract based on the application by party A, party B shall have the right to directly transfer the related payments from any account opened by party A at China CITIC Bank to party B’s own account, and use it to provision or pay the related payables without the need to obtain consent from party A in advance. 
		

		
			   9.3.8 Adopt other necessary measures allowed by laws and regulations. 
		

		
			   Under the circumstances above, party A agrees to unconditionally waive the right of defense and bear any and all losses caused to party B due to its breach of contract. 
		

		
			   9.4 Any and all expenses incurred from party B’s realization of creditor’s rights (including but not limited to litigious fee, arbitration fee, travelling expense, lawyer fee, assets preservation fee, notification fee, notarization fee, certification fee, translation fee, evaluation and auction fee, etc.) shall be at party A’s expense. 
		

		
			 
		

		
			   Article 10 Accumulation of Rights 
		

		
			   10.1 Party B’s rights under this rights are accumulative and shall not affect or eliminate any right that party B is entitled to based on laws and other contracts over party A. Unless expressed by party B in writing, party B’s failure to exercise, partial exercising and/or delayed exercising of any right shall not constitute waiver or partial waiver of such right, and shall not affect, obstruct or prevent party B’s continuous exercising of such right or exercising of any other right. 
		

		
			 
		

		
			   Article 11 Continuation of Obligation 
		

		
			   11.1 All the obligations and joint liabilities of party A under this contract are continuous, and have full binding force on its assets successor or heir, legal agent, receiver, transferee as well as the entity after its merge, separation, reorganization, shareholding reform, name change, etc., and shall not be affected by any dispute, claim or legal procedure or any contract or document signed between the debtor of main contract and any natural person or legal person, and shall not have any change due to any bankruptcy, insolvency, losing of enterprise qualification, change of articles of association or any substantial change of the debtor under the main contract. 
		

		
			 
		

		
			   Article 12 Effect, Change and Cancellation of Contract 
		

		
			   12.1 This contract shall come into effect after signed or stamped of official seal or special seal for contracts by party A’s legal representative or authorized agent and party B’s legal representative/principal or authorized agent (signature or stamp). 
		

		
			

		 

 

   12.2 After effect of this contract, unless otherwise agreed in this contract, neither party A nor party B may change or cancel this contract at will; if this contract indeed needs to be canceled, party A and party B shall reach a written agreement through negotiation. 
		

		
			   
		

		
			   Article 13 Effect of This Contract 
		

		
			   13.1 If certain terms or partial content of certain terms under this contract is currently or in the future recognized as ineffective or canceled, the effect of other terms of this contract or other contents of such terms shall not be affected. 
		

		
			 
		

		
			   Article 14 Other Agreed Matters 
		

		
			 1. Under the contract, Neophotonics (China) Co., Ltd. can utilize up to RMB133million credit line, Neophotonics Dongguan Co., Ltd. can utilize up to RMB19 million credit line, and total credit line utilized by Neophotonics (China) Co., Ltd.  and Neophotonics Dongguan Co., Ltd.  cannot exceed RMB133 million at any time.                                                                            
		

		
			 2. Neophotonics (China) Co., Ltd. provides guarantee for utilization of credit line by Neophotonics Dongguan Co., Ltd. and a Maximum Amount Guarantee Contract with serial No of 2015 SYHZBZ  No. 0012 was signed with Party B.                                          
		

		
			 3. Any outstanding matters under Comprehensive Credit Granting Contract 2014 SYHZZ No. 0001 shall be brought to the management of credit line under this contract.                                                                       
		

		
			Any conflict between this term and other terms shall be in accordance with this term. 
		

		
			 
		

		
			   Article 15 Applicable Laws 
		

		
			   15.1 This contract shall be applicable to the law of the People’s Republic of China (for the purpose of this contract, excluding the laws in Hong Kong, Macao and Taiwan). 
		

		
			   
		

		
			   Article 16 Dispute Settlement 
		

		
			   16.1 Any and all disputes incurred from or in connection with this contract shall be settled between party A and party B through negotiation; if negotiation fails, both parties agree to settle it in the following  (2)     method: 
		

		
			   (1) Apply to         /               Arbitration Commission for arbitration, and use the currently effective arbitration rules at the time of arbitration; 
		

		
			   (2) File lawsuit to the People’s Court with jurisdiction where party B is located. 
		

		
			

		 

 

 
		

		
			   Article 17 Others 
		

		
			   17.1 For any matter not mentioned in this contract, party A and party B may reach a written agreement to be an appendix to this contract. Any and all appendixes, modifications and supplementations to this contract shall constitute inseparable parts of this contract and have equal legal effect with this contract. 
		

		
			   17.2 Any and all contracts and agreements that party B and party A enter into for each specific business shall constitute parts of this contract and constitute a contractual entirety with equal legal effect. 
		

		
			   17.3 Any and all matters relating to this contract such as notarization, registration, authentication, evaluation, preservation, transfer, withdrawal, etc. shall be handled by the applicant of the related matters according to law. 
		

		
			   17.4 Notice and delivery 
		

		
			   17.4.1 The notices, requirements under this contract, debt collections involved in this contract, legal documents of litigation (arbitration) or other communications may be delivered to or sent to the addresses or contact means agreed in the first page of this contract. 
		

		
			   17.4.2 As for any and all notices, requirements, debt recollection letters and other communications from party B to party A under this contract, those made in form of telegraph, telephone, fax, email, etc. shall be deemed as having been sent to party A once they are sent out; those made in form of postal mails shall be deemed as having delivered to party A on the third day after mailing; as for personal delivery, the date of signing by party A shall be deemed as the date of delivery, if party A refuses to accept, the deliverer may adopt photographing, or video recording method to record the delivery process, and keep the related documents, which shall also be deemed as being delivered. 
		

		
			   17.4.3 Judicial departments or arbitration institutions may also use the addresses or contact means agreed in the first page of this contract to send to party A the related (legal) documents, if postal mail is adopted, the third day after the mailing date shall be deemed as the date of delivery to party A; if party A refuses to accept at personal delivery, the deliverer may adopt photographing, or video recording method to record the delivery process, and keep the related (legal) documents, which shall also be deemed as being delivered.
		

		
			   17.4.4 If there is any change to the foresaid contact means provided by party A, party A shall notice party B in writing within three days after such change; after the debt under this contract enters into litigation or arbitration stage, the trying authority shall be notified in written form, or else, the notice or other documents sent out in the original contact means shall still be deemed as effective. 
		

		
			   17.5 This contract is made of   3 originals of same form, party A shall hold   2   originals and party B shall hold   1   originals. 
		

		
			   17.6 Party B has adopted reasonable methods such as bolding, blackening and highlighting to remind party A to pay attention to the liability exemption or limitation clauses under this contract, and has made full explanation of the related terms as required by party A; party A and party B have no dispute over the understanding of all terms under this contract. 
		

		
			

		 

 

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			  (This page is contract signing page and has no text) 
		

		
			 
		

		
			   Credit Grantee 1  (Official Seal or Special Seal for Contracts) 
		

		
			        Neophotonics (China) Co., Ltd.
		

		
			   Legal Representative: 
		

		
			   (or Authorized Agent)   Timothy S. Jenks
		

		
			 
		

		
			                                   Date:   10/20/2015                
		

		
			 
		

		
			   Credit Grantee 2  (Official Seal or Special Seal for Contracts) 
		

		
			         Neophotonics Dongguan Co., Ltd.
		

		
			   Legal Representative: 
		

		
			   (or Authorized Agent)    Raymond Cheung
		

		
			 
		

		
			                                   Date:   10/20/2015                
		

		
			 
		

		
			   Party B (Official Seal or Special Seal for Contracts) 
		

		
			         Shenzhen Branch CITIC Bank
		

		
			   Legal Representative: 
		

		
			   (or Authorized Agent)    Xuying Chen
		

		
			 
		

		
			                                   Date:   10/20/2015                
		

		
			 
		

		
			 
		

		
			

		 

 

Appendix: List of other companies that are authorized to use the comprehensive credit line under the “Comprehensive Credit Granting Contract”: 
		

		
			   All the authorized companies hereby commit that this company shall use the credit line under the “Comprehensive Credit Granting Contract” with serial No. of  2015 SYHZZ No.0013          , is subject to the binding by the foresaid “Comprehensive Credit Granting Contract” as Credit Grantee, and shall fulfill obligations and bear liabilities based on such contract. 
		

		
			 
		

		
			   Name of Authorized Company: 
		

		
			   Legal Representative/Authorized Agent: 
		

		
			   Type and Amount of Available Credit Line: 
		

		
			   Official Seal: 
		

		
			   Date: 
		

		
			 
		

		
			   Name of Authorized Company: 
		

		
			   Legal Representative/Authorized Agent: 
		

		
			   Type and Amount of Available Credit Line: 
		

		
			   Official Seal: 
		

		
			   Date: 
		

		
			 
		

		
			 
		

		
			 
		

		
			                            The Authorizer: (Party A’s Signature and Seal) 
		

		
			                        Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00251-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00251-of-00352.parquet"}]]