Document:

Exhibit 4.21

 

	

    	

CITIC BANK

INTERNATIONAL
    

 

Our Ref No. WBG/12/1040

 

3 August 2012

 

Bona Film Group Limited

11/F.,

Guanhu Garden 3,

105 Yao Jia Yuan Road,

ChaoYang District,

Beijing, The People’s Republic of China.

 

Attention: Mr. Yu Dong

 

Dear Sirs,

 

FACILITY LETTER

 

CITIC Bank International Limited (the “Bank”) is pleased to inform you that it will consider requests made by the Borrower specified below for the following banking facilities (the “Facilities”) on the following terms and conditions.

 

A.                                    BORROWER:

 

Bona Film Group Limited

 

B.                                    FACILITIES AND LIMITS:

 

General Banking Facilities

 

	
Type(s) of Facility
    	
 
    	
Facility Limit(s)
    	
 
    
	
Term Loan
    	
 
    	
USD
    	
15,000,000.00
    	
 
    
	
Total   Facility Limit:
    	
 
    	
USD
    	
15,000,000.00
    	
 
    

 

C.                                    FACILITIES CONDITIONS:

 

Term Loan

 

Purpose: For general working capital.

 

Drawdown: Advance shall be drawn down in multiples within three months from the date of this letter. Written drawdown notice shall be delivered to the Bank not less than two business days prior to the drawdown.

 

 

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Drawdown Conditions:

 

·                                          RMB Standby Letter(s) of Credit issued by CITIC Bank International (China) Limited in favour of the Bank is required. Principal of each advance shall not be greater than 95% of respective RMB Standby Letter of Credit with reference to the spot exchange rate on the date of each drawdown.

 

·                                          Loan proceeds should only be credited to the account of Bona Entertainment Company Limited maintained with the Bank.

 

·                                          Submission of sales contract(s), invoice(s) or  for the first remittance from Bona Entertainment Company Limited for payment to its vendors is required.

 

·                                          The Borrower undertakes that the loan proceeds will not be repatriated back into The People’s Republic of China.

 

Final Maturity Date: 12 months from the date of each drawdown or 14 days before the expiry date of respective Standby Letter of Credit, whichever is earlier.

 

Interest: 2.95% per annum over 1, 3, 6 or 12 month(s) LIBOR.

 

Repayment: Principal shall be repayable on the Final Maturity Date. Accrued interest shall be payable at the end of each interest period. Any amount repaid cannot be re-drawn.

 

Any remaining balance of principal plus accrued interest outstanding on the Final Maturity Date shall be repaid on that date.

 

Facilities Fees:

 

An annual fee in such amount as the Bank may prescribe is payable in July of each year for so long as the Facilities continue.

 

D.                                    SECURITY AND CONDITIONS PRECEDENT

 

The following documents, items and evidence (both in the form and substance satisfactory to the Bank) shall be delivered to the Bank prior to submitting any drawdown notice to the Bank:-

 

1.                                      This letter duly signed by the Borrower.

 

2.                                      A Notice of Appointment of Process Agent duly signed by the Borrower.

 

3.                                      An Acknowledgement and Acceptance of Appointment as Agent for Service of Process for the Borrower from the process agent.

 

4.                                     RMB Standby Letter(s) of Credit for an aggregate amount of not less than the Term Loan principal issued by CITIC Bank International (China) Limited in favour of the Bank in form and substance acceptable to the Bank.

 

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5.                                      Original/certified copies of all necessary consents, approvals and other authorisations (including board resolutions/shareholders resolutions, if applicable) in connection with this letter.

 

6.                                      Certified true copies of the certificate of incorporation, memorandum and articles of association, business registration certificate or equivalent constitutional documents of the Borrower.

 

7.                                      Certificate of good standing and Certificate of incumbency in respect of the Borrower. If the documents are submitted in copies, certified as true and complete copies by a solicitor or a certified public accountant is required.

 

8.                                      Certified true copy of the identity documents of the authorized signatory(ies) of the Borrower.

 

9.                                      A legal opinion issued by the lawyers in Cayman Islands (in the form and substance acceptable to the Bank) on the validity and enforceability of this letter signed by the Borrower.

 

10.                               Such other documents, items or evidence that the Bank may require from time to time.

 

E.                                    UNDERTAKINGS

 

1.                                      The Borrower represents, declares and undertakes to the Bank that the utilization of the Term Loan Facility or use of proceeds drawn under this letter including the flow of loan proceeds do not and will not conflict with any law or regulation applicable to the Borrower (including without limitation those in force in the Mainland). The above representation and declaration is deemed to be made by the Borrower by reference to the facts then existing during the period where the facilities or any part thereof remain outstanding.

 

F.                                     OTHER TERMS AND CONDITIONS

 

1.                                      Each application made by the Borrower to use any of the Facilities in whole or in part shall be a request by it to the Bank to extend financing on the terms and conditions set out or referred to in this letter. No commitment by the Bank to extend any financing shall arise until any application by the Borrower for such financing is accepted by the Bank either expressly or by its extending such financing to the Borrower.

 

2.                                      Notwithstanding any provision stated in this letter, the Facilities are repayable on demand by the Bank. The Bank has the overriding right at any time to require immediate payment and/or cash collateralization of all or any sums actually or contingently owing to it under the Facilities. This letter stipulates the terms and conditions applicable to the Facilities, if granted, and does not oblige the Bank to extend any financing to the Borrower.

 

3.                                      The Bank may at any time immediately modify, terminate, cancel or suspend the Facilities or vary the terms applicable to the Facilities without the consent of any party and without subject to any condition.

 

4.                                     The Bank’s Standard Terms for Banking Facilities (2007 Edition) attached and/or referred to this letter forms an integral part of this letter and the Borrower agrees to observe and be bound in by the Bank’s Standard Terms for Banking Facilities.

 

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5.                                      Please note that Section 83 of the Banking Ordinance has imposed on the Bank certain limitations on advance to persons related to its directors and employees. In signing this letter, the Borrower confirms to the Bank that it is not in any way related to the Bank’s directors or employees within the meaning of Section 83. The Borrower undertakes to advise the Bank promptly in writing if it becomes so related subsequent to the signing of this letter.

 

6.                                      This letter shall be governed by and construed in accordance with the laws of Hong Kong Special Administrative Region.

 

Please confirm your agreement to the terms and conditions of this letter (incorporating the Bank’s Standard Terms for Banking Facilities (2007 Edition) attached and/or referred to this letter) by signing and returning to us the duplicate of this letter to Ms. Janet Tam of our China Corporates at 80th Floor, International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong by 24 August 2012.

 

Should you have any queries on the completion of the required documents, please do feel free to contact our Mr. Billy Wong at 3603 2045. For queries on banking arrangements, please contact our Ms. Janet Tam at 3603 6163 or Mr. Matcheel Cheung at 3603 6219 at any time.

 

	
Yours faithfully,
    	
 
    
	
For and on behalf of 
    	
For and on behalf of
    
	
CITIC Bank International Limited 
    	
CITIC Bank International Limited
    
	
 
    	
 
    
	

    	

    

 

4Exhibit 4.22

 

CITIC Bank International (China) Co., Ltd.

 

As an issuing bank of Standby Letter of Credit

 

And

 

Bona Film Group Co., Ltd.

 

As an applicant of Standby Letter of Credit

 

 

Standby Letter of Credit Issuance Agreement

 

No: CBI2012/W015L

 

 

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This Standby Letter of Credit Issuance Agreement (this “Agreement”) is made and entered into by and between the Parties below on August 13, 2012:

 

(1)                                 CITIC Bank International (China) Co., Ltd (as an issuing bank of Standby Letter of Credit, hereinafter referred to as “Issuing Bank”), with its address at Room 601-602, F/6 and Room 1101-1103, F/11, Huarun Building, No.5001 Shennan East Road, Luohu District, Shenzhen, and a registration number of 440301503294201 in the business license, Tel: 0755-82383838, and Facsimile: 0755-82690022.

 

(2)                                 Bona Film Group Co., Ltd (as an applicant of Standby Letter of Credit, hereinafter referred to as “Applicant”), with its address at Room 1863/65, at F/18, office building of Poly Plaza, No.14 Dongzhimen South Street, Dongcheng District, Beijing, Tel: 010-9283663-237, and Facsimile: 010-59283663-235.

 

Whereas, Bona Film Group Limited (“Standby Letter of Credit warrantee”, hereinafter referred to as “Warrantee”, with its Hong Kong business registration certificate number CT-242909) and CITIC Bank International Limited (“beneficiary of Standby Letter of Credit”, hereinafter referred as “Beneficiary”, with its Hong Kong business registration certificate number 00620985-000-07-07-4) have entered into a Facility Letter Agreement with reference number WBG/12/1040 (hereinafter referred as “Basic Agreement”), the Issuing Bank agreed to issue a Standby Letter of Credit to the Beneficiary under the terms and conditions of this Agreement upon the request of the Applicant.

 

In order to specify the rights, obligations and responsibilities of the Issuing Bank and the Applicant, the parties involved agree to conclude and abide by this Agreement. The terms of this Agreement are as follows:

 

Article 1 Definition

 

1.1          In this Agreement, unless otherwise stipulated herein, the following terms shall have the meaning as follows:

 

“Standby Letter of Credit” refers to a Standby Letter of Credit issued by the Issuing Bank according to the terms and conditions of this Agreement, with CITIC Bank International Limited as the Beneficiary.

 

“Advanced Funds” refers to the funds advanced by the Issuing Bank during its performance of guarantee liabilities and other liabilities related to the Standby Letter of Credit in accordance with the terms and conditions of the Standby Letter of Credit.

 

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“Application Form of Issuing the Standby Letter of Credit” refers to the application forms prepared in accordance with the standard form of issuing the Standby Letter of Credit and submitted to the Issuing Bank by the Applicant, the form and substance of which are satisfied by the Issuing Bank, when the Applicant requires to use the funds under the credit of the Standby Letter of Credit.

 

“Security Documents” refers to any security contract, agreement or document executed by the Warrantor (any company and/or person who would provide security to the completion of the obligations by the Applicant under this Agreement) in order to provide security for the completion of the obligations by the Applicant under this Agreement.

 

“Business Day” refers to the business days of banks in China, excluding the Saturdays, Sundays and other public holidays in mainland China.

 

“Tax” includes but is not limited to the taxes, fees, fiscal charges, tariffs, levies, handling charges, identification taxes, re-imposition of taxes and other taxes or fees, and the interest and penalties of aforesaid taxes, and the similar debts collected by all current and future authorities or their designated agencies.

 

Article 2 Amount and Purpose of Standby Letter of Credit

 

2.1          Upon the Applicant’s request, the Issuing Bank agrees to issue a Standby Letter of Credit to the Beneficiary, with the maximum amount of RMB one hundred million (RMB 100,000,000), and CITIC Bank International Limited shall be the sole and exclusive Beneficiary of the Standby Letter of Credit issued by the Issuing Bank. The purpose of the Standby Letter of Credit is to provide guarantee the obligations of the Warrantee.

 

Article 3 Issuing the Standby Letter of Credit

 

3.1          Condition Precedent. Unless the following conditions are satisfactory to the Issuing Bank or waived by the Issuing Bank, the Applicant shall not submit any Application Form of Issuing the Standby Letter of Credit, and the Issuing Bank is not obligated to issue a Standby Letter of Credit:

 

1)             The certified true copies of incorporation documents and other relevant documents of the Applicant and the Warrantee, including but not limited to the latest business license, the company’s articles of association, certificate of approval, the capital verification report, etc.;

 

2)             The originals/certified true copies of all necessary consents, approvals, registrations, record filings and other authorized documents related to this 

 

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Agreement and the Security Documents, including but not limited to the original resolutions of the board of directors or shareholders’ resolutions and the registration procedures of the foreign exchange administration authorities;

 

3)             This Agreement duly executed by the Applicant;

 

4)             The Deposit Pledge Agreement duly executed by the Applicant and the fixed deposit applied by the Applicant with the Issuing Bank. The amount of deposit shall be not less than the amount of Standby Letter of Credit secured by such deposit, and the Applicant authorizes the bank to extend the expiration date of the deposit when such deposit becomes due. The Applicant shall provide pledge confirmation in accordance with every pledge and the original pledge confirmation and pledged deposit have been delivered to the Issuing Bank;

 

5)             The certified true copy of the Applicant’s latest and effective loan card issued by the People’s Bank of China;

 

6)             The Applicant has paid all the expenses related to this Agreement, and has provided the corresponding payment vouchers (including but not limited to taxes, attorney fees and other charges);

 

7)             The record filing notification regarding the issuing of RMB Standby Letter of Credit approved by the People’s Bank of China;

 

8)             Any other documents reasonably requested by the Issuing Bank from time to time.

 

3.2     Issuing the Standby Letter of Credit

 

3.2.1      If the Applicant needs to issue a Standby Letter of Credit, the Application Form of Issuing the Standby Letter of Credit with a verified official seal shall be submitted to the Issuing Bank at least 2 business days in advance;

 

3.2.2      The Issuing Bank shall execute and affix its seal on the Application Form of Issuing the Standby Letter of Credit after examination and approval of issuance. The Standby Letter of Credit shall be formally issued upon the issuing date recorded in the Application Form of Issuing the Standby Letter of Credit by the Issuing Bank.

 

3.2.3      The valid period for issuance of a Standby Letter of Credit is 3 months from the execution date of this Agreement.

 

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3.2.4      The valid period of a Standby Letter of Credit is no more than 13 months from the date of issuance, but no later than the expiry date of the credit line under the Standby Letter of Credit.

 

3.2.5      The credit line is non-cyclical. The Applicant may draw down from the credit line multiple times but may not re-use an amount of credit has already drawn down, within the valid period for issuance of Standby Letters of Credit under the credit line.

 

3.2.6      The Applicant has no disagreement in respect of any detail in a Standby Letter of Credit issued by the Issuing Bank to the Beneficiary, and all the terms of a Standby Letter of Credit are accepted by and binding on the Applicant.

 

3.2.7      The valid period of the credit line of the Standby Letter of Credit is no more than 13 months from the first date of issuance of a Standby Letter of Credit.

 

Article 4 Fee Payment

 

4.1      Fee

 

4.1.1      After friendly consultation, the Applicant and the Issuing Bank agree that the fee for issuing a Standby Letter of Credit is 0.1% of the amount of such Standby Letter of Credit.

 

4.2      Payment of the Fee for issuing a Standby Letter of Credit

 

4.2.1      The fee for issuing a Standby Letter of Credit shall be calculated based on the rate as stipulated in the above article. Before issuance of a Standby Letter of Credit, the Applicant shall pay the fee calculated based on the rate as stipulated in the above article to the Issuing Bank or to its designated account in lump sum.

 

Article 5 Discharge of Guarantee Liability

 

5.1   If the Beneficiary fails to claim its guaranteed liability against the Issuing Bank in a written form during the valid period stipulated in the Standby Letter of Credit, the Issuing Bank’s guarantee liability will be discharged the day after the expiry date of the Standby Letter of Credit.

 

5.2   If the amount paid by the Issuing Bank pursuant to the Standby Letter of Credit has reached the credit line of Standby Letter of Credit stipulated in article 2, the guarantee liability will be discharged at the day when the payment (that the relevant fund has been wired out from the Issuing Bank’s account) has been made regardless of the effective period as stipulated by this Agreement.

 

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5.3   The Issuing Bank’s guarantee liability under the Standby Letter of Credit will be discharged in accordance with laws and regulations or any other circumstances by which the discharge shall be effectuated.

 

Article 6 Advanced Funds Repayment

 

6.1   If the Issuing Bank needs to pay Advanced Funds for undertaking the guarantee liability or other liability arising from the Standby Letter of Credit, the Applicant shall repay the Advanced Funds to the Issuing Bank on the day when the Issuing Bank paid the Advanced Funds; if the Applicant fails to repay to the Issuing Bank on time, the Applicant shall pay an overdue interest at the rate of 8% per year from the date when the Issuing Bank has paid the Advanced Funds; and in the meantime, the Issuing Bank is entitled to require the Applicant to compensate for or to recover the Advanced Funds, the relevant interest, the liquidated damages and other fees from the security under this Agreement.

 

Article 7 Applicant’s Covenant

 

7.1       The Applicant hereby makes the following covenants to the Issuing Bank:

 

1)             The Applicant covenants to the Issuing Bank that the Applicant shall inform the Issuing Bank immediately of any material adverse change to its business and financial condition, any potential event of default or any event of default.

 

2)             The Applicant covenants to the Issuing Bank that the obligations of this Agreement shall have the same priority for repayment with all other current and future unsecured, unconditional and insubordinate obligations at any time and in all aspects.

 

7.2       If the Applicant violates any of the above covenants, the Issuing Bank is entitled to make a claim or take other measures against the Applicant in advance.

 

Article 8 Payment of the Claimed Indemnity to the Beneficiary

 

8.1       If the Beneficiary claims to the Issuing Bank in accordance with the Standby Letter of Credit for indemnity, the Issuing Bank may pay the Beneficiary without prior consent of the Applicant after confirming that the conditions for claiming the indemnity have been satisfied based on the review of the relevant documents or evidence.  The Applicant is not entitled to object to such payment and such payment shall not be affected by the Basic Agreement and other disputes among the Applicant, the Warranteeand the Beneficiary.

 

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Article 9 Default Liability

 

9.1       Event of Default

 

The Applicant must comply with the various provisions of this Agreement during the valid period of this Agreement, and any of the following circumstances constitutes a breach, or shall be considered to be an event of default:

 

1)             At the date when the Advanced Funds are paid, the Applicant fails to pay the principal of advanced funds, interest (if any), repayable fees or other charges to the Issuing Bank;

 

2)             Any fees (including but not limited to taxes, attorney fees, appraisal fees, etc.) incurred under this Agreement have not been paid according to the request of the Issuing Bank;

 

3)             Any statement, guarantee and document executed or provided by the Applicant in this Agreement have been proved to be untrue or inaccurate, or the Applicant failed to perform its obligations and other provisions under this Agreement.

 

9.2       Default Liability

 

If any of the aforementioned events of default or potential events of default occurs, and such event of default continues to exist more than five days after the Applicant is notified by the Issuing Bank, the Issuing Bank shall be entitled to notify the Applicant in writing that it will take one or more following actions or measures:

 

1)             to order the  Applicant to rectify the breach within a time limit, to take effective remedial measures and assume the compensation liability;

 

2)             to enforce upon or withdraw the pledged deposit under the Deposit Pledge Agreement or the guarantee of the Security Documents;

 

3)             to terminate this Agreement;

 

4)             to file a lawsuit with a court of competent jurisdiction.

 

For the above rights and measures, the Issuing Bank is entitled to decide whether or not to exercise them, the order of exercise, and whether to exercise in part or whole in its own discretion.

 

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Article 10 Amendments

 

10.1       Any provision in this Agreement can be amended by and between both parties upon mutual consent, and any amendments will only be valid upon written consent and execution by the parties.

 

Article 11 Waiver

 

11.1       No delay or omission by the Issuing Bank to perform its rights or any remedy shall impair the credit right of the Issuing Bank, nor shall it be construed to be a waiver. The rights and remedies of the Issuing Bank under this Agreement shall be cumulative and shall not exclude other statutory rights and remedies. In the event that one or several of the provisions of this Agreement are found to be illegal, invalid or unenforceable in any aspect, the validity, legality or enforceability of the remedy provisions of this Agreement shall not be affected or compromised in any respect.

 

Article 12 Independence Clause

 

12.1      In the event that any provision of this Agreement is found to be illegal, invalid or unenforceable in any legal jurisdiction, the following shall not be affected:

 

1)             the validity or enforceability of any other provision of this Agreement in the aforesaid legal jurisdiction;

 

2)             the validity or enforceability of the aforesaid provision or any other provision of this Agreement in any other legal jurisdiction.

 

12.2         In the event that any provision of this Agreement is found to be illegal, invalid or unenforceable according to the governing law or by the courts or arbitral tribunals, the legality, validity or enforceability of any other provision of this Agreement shall not be affected as permitted by the governing law.

 

Article 13 Notice

 

13.1         Unless otherwise stipulated in this Agreement, each notice, request or other communications shall be made in written form and be sent to the other party in accordance with the address stipulated in the first page of this Agreement.

 

Article 14 Language

 

14.1   This Agreement shall be written in Chinese. If there is any discrepancy between the Chinese version and versions written in any other languages, the Chinese version shall prevail.

 

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Article 15 Governing Law

 

15.1      The rights and obligations of all parties, and this Agreement shall be governed and interpreted by the laws of the People’s Republic of China.

 

Article 16 Dispute Resolution

 

16.1         The Applicant and the Issuing Bank irrevocably agree that any disputes arising from the performance of this Agreement or related to this Agreement shall be submitted to a PRC court with the competent jurisdiction at the place where the Issuing Bank is located.

 

Article 17 Entire Agreement

 

17.1         Each supplementary Agreement executed by the parties shall constitute an integral part of this Agreement, and shall have the same legal validity as this Agreement.

 

Article 18 Effectiveness

 

18.1         This Agreement shall come into effect upon execution and seal by all parties.

 

18.2         This Agreement is written and executed in two (2) copies, each party holding one copy, and the two copies shall have equal legal validity.

 

Article 19 Declaration Clause

 

19.1         The Applicant has read all the terms and conditions of this Agreement. Upon the request of the Applicant, the Issuing Bank has made a sufficient explanation of the corresponding provisions of this Agreement. The meaning of the terms and the corresponding legal consequences of this Agreement have been fully and sufficiently understood by the Applicant.

 

(Reminder of this page left blank intentionally, and signature pages and appendixes follow)

 

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This page only includes the signature pages of the Standby Letter of Credit Issuing Agreement No: CBI2012/W015L

 

 

CITIC Bank International (China) Co., Ltd. (Issuing Bank) (Seal):

 

 

	
Legal Representative /Authorized Agent (Signature):
    	
/s/ Authorized signatory
    	
 
    

 

 

 

Date: Aug 13th, 2012

 

 

	
Bona Film Group Co., Ltd. (the Applicant)   (Seal)
    	
/s/ Dong Yu
    	
 
    

 

 

Legal Representative/Authorized Agent (Signature):

 

 

Date: Aug 13, 2012

 

 

In witness whereof the parties have executed this Agreement on August 13, 2012 in front of me.

 

 

	
Witness (Signature):
    	
/s/ Witness
    	
 
    

 

 

Date: Aug 13, 2012

 

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