Document:

Exhibit 4.1

 

EXECUTION VERSION

 

AMENDMENT NO. 5 dated as of September 28, 2017 (this “Amendment”), in respect of the Amended and Restated Credit Agreement and Syndicated Facility Agreement dated as of April 22, 2015 (as amended by that certain (i) Amendment No. 1, dated as of July 24, 2015, (ii) Amendment No. 2, dated as of September 1, 2015, (iii) First Incremental Amendment to Amended and Restated Credit Agreement and Syndicated Facility Agreement, dated as of September 1, 2015, (iv) Amendment No. 3, dated as of September 29, 2015, and (v) Amendment No. 4, dated as of February 3, 2016, and as it may be further amended, restated, amended and restated, modified or supplemented from time to time, the “Credit Agreement”), among Owens-Illinois Group, Inc. (the “Company”), Owens-Brockway Glass Container Inc. (“Owens-Brockway”), ACI Operations Pty. Ltd. (“ACI”), OI European Group B.V. (“OIEG”), OI Europe Sàrl (“OI Europe”), O-I Canada Corp. (“O-I Canada”, and together with Owens-Brockway, ACI, OIEG and OI Europe, the “Borrowers”), Owens-Illinois General Inc. (the “Borrowers’ Agent”), each other Loan Party party thereto from time to time, Deutsche Bank AG New York Branch as administrative agent and collateral agent (the “Administrative Agent”) and each lender from time to time party thereto (the “Lenders”) (capitalized terms not otherwise defined in this Amendment have the same meanings assigned thereto in the Credit Agreement or, if not defined therein, the Credit Agreement as amended hereby).

 

WHEREAS, pursuant to Section 12.1 of the Credit Agreement, the parties hereto desire to amend the Credit Agreement as set forth below;

 

NOW, THEREFORE, the parties hereto agree as follows:

 

Section 1.                                          Defined Terms; References. Unless otherwise specifically defined herein, each term used herein which is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement. Each reference to “hereof”, “hereunder”, “herein” and “hereby” and each other similar reference and each reference to “this Agreement” and each other similar reference contained in the Credit Agreement shall, after the Fifth Amendment Effective Date (as defined below), refer to the Credit Agreement as amended hereby. This Amendment is a Loan Document.

 

Section 2.                                          Amendment to Credit Agreement. The Credit Agreement is hereby amended as follows:

 

(a)                                 The following definitions shall be removed in their entirety: “Consolidated Capital Expenditures”, “Consolidated Cash Interest Expense”, “Consolidated Total Debt”, “Consolidated Working Capital Adjustment”, “Constellation JV”, “Declined Proceeds” and “Excess Cash Flow”.

 

(b)                                 The following additional new definitions shall be inserted into Section 1.1 in the appropriate alphabetical order:

 

“‘Bail-In Action’ means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.”.

 

“‘Bail-In Legislation’ means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.”.

 

“‘EEA Financial Institution’ means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution

 

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described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.” .

 

“‘EEA Member Country’ means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.”.

 

“‘EEA Resolution Authority’ means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.”.

 

“‘EU Bail-In Legislation Schedule’ means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.”.

 

“‘Fifth Amendment’ means Amendment No. 5, dated as of September 28, 2017, by and between the Company, the Borrowers, the Borrowers’ Agent, the Administrative Agent and each Lender party thereto.”.

 

“‘Fifth Amendment Effective Date’ has the meaning assigned to that term in the Fifth Amendment.”.

 

“‘Non-Recourse Receivables Financing Indebtedness’ means any Indebtedness with respect to any Permitted Factoring or otherwise constituting Receivables Sale Indebtedness, in each case, solely to the extent that (a) no Loan Party or any Restricted Subsidiary guarantees any obligations (contingent or otherwise) under such transactions, (b) no property or asset (other than Receivables subject to such transactions or the Capital Stock of any special purpose vehicle contemplated by the definition of Receivables Sale Indebtedness (any such special purpose vehicle, a “Receivables Subsidiary”)) of any Loan Party or any Restricted Subsidiary (other than a Receivables Subsidiary) is, directly or indirectly, contingently or otherwise, subject to claims for the satisfaction of obligations for any such transaction and (c) there shall be no recourse to any Loan Party or any Restricted Subsidiary (other than a Receivables Subsidiary) in connection with such transactions, in the case of each of the foregoing clauses (a), (b) or (c), except to the extent customary (as determined by the Company in good faith) for similar transactions in the applicable jurisdictions (including, to the extent applicable, in a manner consistent with the delivery of a “true sale”/”absolute transfer” opinion with respect to any transfer by any Loan Party or any Restricted Subsidiary (other than a Receivables Subsidiary)).”.

 

“‘Revolving Outstandings’ means, at any time, the sum of the aggregate Revolving Credit Exposure of all Revolving Lenders then outstanding; provided, however, that (i) the term Revolving Outstandings shall not include any Revolving Credit Exposure the proceeds of which were not used for working capital or other ordinary course corporate purposes (and in any event excluding, without limitation or duplication, any Revolving Credit Exposure then outstanding the proceeds of which were used to finance (A) an Acquisition (other than an Acquisition of a Person that, immediately prior to such Acquisition, is a Restricted Subsidiary) (including to refinance any Indebtedness assumed as part of any such Acquisition), (B) an Investment in a Person (other than an Investment in a Person that, immediately prior to such Investment, is a Restricted Subsidiary), (C) a payment under a Contingent Obligation with respect to any Person other than a Restricted Subsidiary, (D) a Restricted Payment pursuant to Section 8.5(v) or (vi) or (E) a voluntary or optional payment of Subordinated Indebtedness (other than intercompany indebtedness by and among the Company and its Restricted Subsidiaries) pursuant to Section 8.12(b)) and (ii) for the period through, and including, December 31, 2016, the Revolving Outstandings amount shall be $0.”.

 

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“‘Write-Down and Conversion Powers’ means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.”.

 

(c)                                  The definition of “Defaulting Lender” is hereby amended by inserting the text “or become the subject of a Bail-in Action” immediately following the text “bankruptcy or insolvency proceeding”.

 

(d)                                 The definition of “Pro Forma Basis” is hereby amended by inserting the text “(other than Revolving Outstandings, which, solely for purposes of calculating the Total Leverage Ratio, shall be calculated in a manner consistent with the definition of Total Leverage Ratio)” immediately following the text “and Net Indebtedness as of such date of determination”.

 

(e)                                  The definition of “Total Leverage Ratio” is hereby amended and restated in its entirety as follows:

 

“‘Total Leverage Ratio’ means, for any Test Period, the ratio of (a) the sum of (x) Net Indebtedness of Holdings and its Restricted Subsidiaries (excluding from such calculation the Revolving Outstandings and any Non-Recourse Receivables Financing Indebtedness) as of the last day of such Test Period plus (y) the Revolving Outstandings on the December 31 immediately preceding such date (or, in the case of a Test Period ended on December 31 in any Fiscal Year of the Company, the Revolving Outstandings on such December 31), to (b) Consolidated EBITDA of Holdings and its Restricted Subsidiaries for such Test Period.”

 

(f)                                   Section 2.12(a)(i) shall be amended by inserting the text “subject to Section 12.24” immediately following the text “and (b)”.

 

(g)                                  Section 2.13 shall be amended by inserting the text “and to enter into any amendments or waivers of this Agreement (except to the extent that the execution of any such amendment or waiver by any Borrower is reasonably requested by the Administrative Agent, acting on the advice of local counsel, where applicable)” immediately following the text “any Loan proceeds or payments” in the fourth sentence thereof.

 

(h)                                 Section 4.4(d) shall be removed in its entirety and replaced with “[reserved]”.

 

(i)                                     Section 4.5 shall be amended by (i) removing the text “(d),” appearing in clause (a) thereof and (ii) removing clause (c) thereof in its entirety.

 

(j)                                    Section 7.1(c) shall be amended by (i) replacing the text “, (B)” appearing therein with the text “and (B)” and (ii) removing the text “and (C) in the case of financial statements delivered pursuant to clause (b) above, setting forth reasonably detailed calculations of Excess Cash Flow of Holdings and its Restricted Subsidiaries for each Fiscal Year beginning with the annual audited financial statements for the Fiscal Year ending December 31, 2016” appearing therein.

 

(k)                                 Exhibit 7.1(c) of the Credit Agreement shall be amended by amending and restating paragraph A.1 of Attachment 1 thereto as follows:

 

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“1.                                The sum of (a) Net Indebtedness of Holdings and its Restricted Subsidiaries (excluding from such calculation the Revolving Outstandings and any Non-Recourse Receivables Financing Indebtedness) as of the last day of the period ending [    ] and (b) the Revolving Outstandings on December 31, [   ].”

 

(l)                                     The following additional new section shall be inserted at the end of Article XII:

 

“12.24           Acknowledgment and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)                                 the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)                                 the effects of any Bail-in Action on any such liability, including, if applicable:

 

(i)                                     a reduction in full or in part or cancellation of any such liability;

 

(ii)                                  a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

 

(iii)                               the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.”

 

Section 3.                                          Representations and Warranties. Each Loan Party hereby represents and warrants that, immediately prior to and immediately after giving effect to this Amendment:

 

(a)                                 the execution, delivery and performance by it of this Amendment does not (i) violate any provision of law applicable to it, the Organic Documents of it, or any order, judgment or decree of any court or other agency of government binding on it, (ii) conflict with, result in a material breach of or constitute (with due notice or lapse of time or both) a material default under any Contractual Obligation of it, (iii) result in or require the creation or imposition of any Lien (other than Liens in favor of the Collateral Agent) upon any of the properties or assets of it or (iv) require any approval of stockholders or any approval or consent of any Person under any material Contractual Obligation of it, other than those approvals and consents which have been obtained; and

 

(b)                                 it has all requisite organizational power and authority to enter into this Amendment and the execution, delivery and performance by it of this Amendment has been duly authorized by all necessary organizational action by it.  Each Loan Party has duly executed and delivered this Amendment, and this Amendment and each other Loan Document to which it is a party constitutes the legally valid and binding obligations of it, enforceable against it in accordance with their respective terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability; and

 

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(c)                                  each of the representations and warranties set forth in the Credit Agreement and in the other Loan Documents is true and correct in all material respects on and as of the Fifth Amendment Effective Date (both immediately before and after giving effect to this Amendment) (it being understood and agreed that (x) any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date and (y) any representation or warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all respects on such date); and

 

(d)                                 no Unmatured Event of Default and no Event of Default shall have occurred and be continuing.

 

Section 4.                                          Effectiveness. This Amendment shall become effective on the date (the “Fifth Amendment Effective Date”) when each of the following conditions shall have been satisfied:

 

(a)                                 The Administrative Agent shall have received from each Loan Party, the Administrative Agent and the Lenders constituting both the Requisite Lenders and the Requisite Financial Covenant Lenders either (i) a counterpart of this Amendment signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy or electronic transmission of a signed signature page of this Amendment) that such party has signed a counterpart of this Amendment.

 

(b)                                 each of the representations and warranties set forth in the Credit Agreement and in the other Loan Documents shall be true and correct in all material respects on and as of the Fifth Amendment Effective Date (it being understood and agreed that (x) any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date and (y) any representation or warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all respects on such date);

 

(c)                                  at the time of the Fifth Amendment Effective Date and immediately after giving effect to the Fifth Amendment, no Unmatured Event of Default or Event of Default shall exist;

 

(d)                                 the Administrative Agent shall have received an Officer’s Certificate of the Company, dated as of the Fifth Amendment Effective Date, certifying compliance with the requirements set forth in preceding clauses (b) and (c) of this Section 4;

 

(e)                                  the Administrative Agent shall have received (i) either (x) a copy of the certificate or articles of incorporation or equivalent organizational document, including all amendments thereto, of each Loan Party party hereto, certified as of a recent date by the Secretary of State of the state of its organization or (y) confirmation from such Loan Party that there has been no change to such organizational documents since last delivered to the Administrative Agent, (ii) a certificate of a Secretary or Responsible Officer of each Loan Party (or any director or officer of any Loan Party that is not organized under the laws of any State of the United States of America or the District of Columbia) party hereto dated the Fifth Amendment Effective Date and certifying (A) that (x) attached thereto is a true and complete copy of the by-laws, operating agreement or similar governing document of such Loan Party as in effect on the Fifth Amendment Effective Date and at all times since a date prior to the date of the resolutions described in clause (B) below or (y) there has been no change to such governing documents since last delivered to the Administrative Agent, (B) that attached thereto is a true and complete copy of resolutions duly adopted by the Board of Directors of such Loan Party authorizing the execution, delivery and performance of this Fifth Amendment and that such resolutions have not been modified, rescinded or amended and are in full force and effect, (C) that any attached certificate or articles of incorporation, equivalent organizational document, by-law, operating agreement or similar governing document of such 

 

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Loan Party have not been amended, and (D) to the extent not previously delivered to the Administrative Agent as to the incumbency and specimen signature of each officer executing this Fifth Amendment or any other document delivered in connection herewith on behalf of such Loan Party; and (iii) a certificate of another officer as to the incumbency and specimen signature of the Secretary or the Responsible Officer (or other director or officer, as applicable) executing the certificate pursuant to clause (ii) above;

 

(f)                                   the Company shall have paid to the Administrative Agent, for the ratable account of each Lender that is party to this Amendment, a fee in an amount equal to 0.10% of each such Lender’s outstanding Term Loans and/or Revolving Commitments immediately prior to giving effect to this Amendment (the “Consent Fee”), which Consent Fee shall be earned, due and payable by wire transfer in immediately available funds on the Fifth Amendment Effective Date, and, once paid, shall be non-refundable.

 

(g)                                  all reasonably incurred and documented costs, fees, expenses (including, without limitation, legal fees and expenses) and other compensation payable to the Administrative Agent pursuant to Section 12.4 of the Credit Agreement on or before the Fifth Amendment Effective Date, to the extent invoiced at least three business days prior to the Fifth Amendment Effective Date unless otherwise agreed, shall have been paid to the extent earned.

 

Section 5.                                          Confirmation of Guarantees and Security Interests. By signing this Fifth Amendment, the Loan Parties party hereto hereby confirm that the obligations of the Loan Parties under the Credit Agreement as modified or supplemented hereby and the other Loan Documents to which such Loan Parties are party (i) are entitled to the benefits of the guarantees and the security interests set forth or created in the Guarantee Agreements, the Collateral Documents and the other Loan Documents, as applicable, (ii) constitute “Obligations”, “U.S. Obligations”, “Foreign Obligations” and “Guaranteed Obligations” or other similar term for purposes of the Credit Agreement, the Guarantee Agreements, the Collateral Documents and all other Loan Documents, as applicable, (iii) notwithstanding the effectiveness of the terms hereof, the Guarantee Agreements, the Collateral Documents and the other Loan Documents, as applicable, are, and shall continue to be, in full force and effect and are hereby ratified and confirmed in all respects. Each Loan Party party hereto ratifies and confirms that all Liens granted, conveyed, or assigned to the Administrative Agent by such Person pursuant to any Loan Document to which it is a party remain in full force and effect, are not released or reduced, and continue to secure full payment and performance of the Obligations.

 

Section 6.                                          Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

Section 7.                                          Counterparts. This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original but all of which when taken together shall constitute a single contract.  Delivery of an executed signature page to this Amendment by facsimile transmission or other electronic transmission shall be as effective as delivery of a manually signed counterpart of this Amendment.

 

Section 8.                                          Miscellaneous. This Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of any Lender or the Administrative Agent under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. Nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms,

 

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conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances.

 

[SIGNATURE PAGES FOLLOW]

 

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

 

	
OWENS-ILLINOIS GROUP, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Mary Beth Wilkinson
    	
 
    
	
Name: 
    	
Mary Beth Wilkinson
    	
 
    
	
Title: 
    	
Vice President and Secretary
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
OWENS-BROCKWAY GLASS CONTAINER INC., as   a Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Mary Beth Wilkinson
    	
 
    
	
Name: 
    	
Mary Beth Wilkinson
    	
 
    
	
Title: 
    	
Senior Vice President, General Counsel and Corporate Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ACI OPERATIONS PTY. LTD., as a Borrower
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Mary Beth Wilkinson
    	
 
    
	
Name: 
    	
Mary Beth Wilkinson
    	
 
    
	
Title: 
    	
Authorized Signatory
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
O-I CANADA CORP., as a Borrower
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Mary Beth Wilkinson
    	
 
    
	
Name: 
    	
Mary Beth Wilkinson
    	
 
    
	
Title: 
    	
Secretary
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
OI EUROPEAN GROUP B.V., as a Borrower
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Mary Beth Wilkinson
    	
 
    
	
Name: 
    	
Mary Beth Wilkinson
    	
 
    
	
Title: 
    	
Authorized Signatory
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
OI EUROPE SARL, as a Borrower
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Mary Beth Wilkinson
    	
 
    
	
Name: 
    	
Mary Beth Wilkinson
    	
 
    
	
Title: 
    	
Director
    	
 
    

 

[SIGNATURE PAGE TO OWENS-ILLINOIS FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
OWENS-ILLINOIS GENERAL INC., as   Borrowers’ Agent.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Mary Beth Wilkinson
    	
 
    
	
Name: 
    	
Mary Beth Wilkinson
    	
 
    
	
Title: 
    	
Vice President and Secretary
    	
 
    

 

[SIGNATURE PAGE TO OWENS-ILLINOIS FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

The Administrative Agent

 

	
DEUTSCHE   BANK AG NEW YORK BRANCH, as Administrative Agent and as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Deirdre Cesario
    	
 
    
	
Name: 
    	
Deirdre Cessario
    	
 
    
	
Title: 
    	
Vice President
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Andrew MacDonald
    	
 
    
	
Name: 
    	
Andrew MacDonald
    	
 
    
	
Title: 
    	
Assistant Vice President
    	
 
    

 

[SIGNATURE PAGE TO OWENS-ILLINOIS FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT]Exhibit 10.1

 

Business Cooperation Framework Agreement

 

This Business Cooperation Framework Agreement (this “Agreement”) is made and entered into by and among the following parties on March 17, 2017 (the “Date of Execution”), in Beijing, the People’s Republic of China (the “PRC”).

 

	
Party A.
    	
Hexin E-Commerce   Co., Ltd. (“Heixin E-Commerce”)
    
	
 
    	
 
    
	
 
    	
Address: Room   1313, 13/F Nei, 4/F-24/F, No. 92 Jia, Jianguo Road, Chaoyang District,   Beijing
    
	
 
    	
 
    
	
Party B.
    	
Hexin Financial   Information Service (Beijing) Co., Ltd. (“Hexin Finance”)
    
	
 
    	
 
    
	
 
    	
Address: Room   1208, 12/F Nei, 4/F-24/F, No. 92 Jia, Jianguo Road, Chaoyang District,   Beijing
    
	
 
    	
 
    
	
Party C.
    	
Hexin Information Service   Co., Ltd. (“Hexin Information”)
    
	
 
    	
 
    
	
 
    	
Address: Room   1204, 12/F Nei, 4/F-24/F, No. 92 Jia, Jianguo Road, Chaoyang District,   Beijing
    

 

In this Agreement, Party A, Party B and Party C shall be hereinafter referred to as a “Party” individually, and as “Parties” collectively.

 

Whereas,

 

1.                            Hexin E-Commerce is a limited liability company incorporated in the PRC. It is mainly engaged in business including economic information consultation, investment management, investment consultation and asset management, etc. (“Hexin E-Commerce Business”);

 

2.                            Hexin Finance is a limited liability company incorporated in the PRC. It is mainly engaged in business including investment management, investment consultation, and asset management, etc. (“Hexin Finance Business”);

 

3.                            Hexin Information is a limited liability company incorporated in the PRC. It is mainly engaged in business including economic and trade consultation and financial business process outsourcing service entrusted by financial institutions, etc. (“Hexin Information Business”);

 

4.                           The Parties recognize and acknowledge that, the ultimate overseas controlling company of Hexin E-Commerce, namely Hexindai Inc., intends to conduct Hexin E-Commerce Business through Hexin E-Commerce and plans to submit

 

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an initial public offering registration statement to SEC (as defined below) for review (“IPO Application”).

 

5.                            The Parties intend in this Agreement to set forth the principal terms and conditions with respect to their agreement upon the execution of this Agreement.

 

NOW, THEREFORE, with respect to cooperation in the term of this Agreement, the Parties intending to be legally bound, agree as follows:

 

1                               Definition

 

1.1                     Unless otherwise defined, the following terms have the meanings given to them in this Section 1:

 

1.2                     “Force Majeure” means any force majeure events such as earthquakes, typhoons, floods, fires, flu, wars, riots, strikes or any other events that cannot be predicted and are unpreventable and unavoidable by the affected Party.

 

1.3                     “Non-Competition Period” means the period beginning from the IPO Completion Date and ending on the earlier of: (i) 2 years after the IPO Completion Date; or (ii) the date on which the shares of Hexindai Inc. cease to trading on NASDAQ or the New York Stock Exchange.

 

1.4                     “Underwriters” means the underwriters engaged for the IPO.

 

1.5                     “Law” means any law, statute, rule, regulation or other requirement imposed by a governmental authority, including any order, statute or other legal measures and any regulation, rule, treaty, order, decree or judgment.

 

1.6                     “US” means the United States of America.

 

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

 

1.8                     “Group Members” or “Group Member” collectively means a company and its every subsidiary.

 

1.9                     “Approval” means any right, license, permit, approval, waiver, consent and authorization by any governmental authority and all the registrations and filings with any governmental authority.

 

1.10              “IPO” means an initial public offering of shares of Hexindai Inc.

 

1.11              “IPO Completion Date” means the date on which the IPO of Hexindai Inc. on NASDAQ or the New York Stock Exchange is completed.

 

1.12              “Securities Act” means the Securities Act of 1933, as amended from time

 

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to time.

 

2                               The IPO and Relevant Actions

 

2.1                     Transactions prior to the IPO. Subject to the occurrence of the events described in this Article 2, the Parties intend to consummate the IPO of Hexindai Inc. and to take, or cause to be taken, the actions specified in this Section 2.1.

 

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

 

2.1.2                    Underwriting Agreement. Following the effectiveness of the IPO Registration Statement, Hexindai Inc. will enter into the underwriting agreement, which shall in form and substance be satisfactory to Hexindai Inc., as determined by its board of directors or authorized designees, as appropriate, and Hexindai Inc. shall comply with its obligations thereunder.

 

2.1.3                    NASDAQ or NYSE Listing. Hexindai Inc. plans to prepare, file and have approved an application for listing on NASDAQ or the New York Stock Exchange of the American depositary shares (ordinary shares), to be offered and sold in the IPO.

 

2.2                     Cooperation. Hexin Finance and Hexin information shall each consult with, and cooperate in all respects with Hexin E-Commerce in connection with the marketing of Hexindai Inc., including any roadshow presentations, and pricing of the ADSs and shall take any and all actions as may be reasonably necessary or desirable to consummate the IPO as contemplated by the IPO Registration Statement and the underwriting agreement.

 

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3                               Recommendation of Clients (Borrowers)

 

3.1                     During the Non-Competition Period, Hexin Finance and Hexin Information shall recommend clients including borrowers, etc. to Hexin E-Commerce in an active way. Subject to the scope of Hexin E-Commerce’s principal business, Hexin Finance and Hexin Information shall first recommend the clients they acquire from the front end only to Hexin E-Commerce. Hexin Finance and Hexin Information are entitled to charge the clients with reasonable fees.

 

3.2                     The Parties hereby further agree on the following principles and procedures in relation to client recommendation service: as far as borrower acquisition is concerned, Hexin E-Commerce shall submit its request for borrowers to Hexin Finance and Hexin Information on a monthly basis, and Hexin Finance and Hexin Information shall provide borrowers’ information as required by Hexin E-Commerce. Hexin Finance and Hexin Information shall direct all the borrowers that meet Hexin E-Commerce’s borrower criteria to Hexin E-Commerce per the aforesaid request, and only when Hexin E-Commerce rejects a borrower and explicitly informs Hexin Finance and Hexin Information, Hexin Finance and Hexin Information may then offer the borrower any other loan products and services.

 

4                               Non-Competition

 

4.1                     Undertaking of Hexin Finance and Hexin Information. During the Non-Competition Period, Hexin Finance and Hexin Information will not, and will cause each of the other Group Members of Hexin Finance and Hexin Information not to, other than through Hexin E-Commerce, directly or indirectly be engaged, invest, participate or otherwise be interested in, whether on its own account or with each other or in conjunction with or on behalf of any person, (i) the Hexin E-Commerce Business; or (ii) any business that is of the same nature as or similar to the Hexin E-Commerce Business. Notwithstanding the foregoing, any group member of Hexin Finance and Hexin Information shall not be prohibited from:

 

4.1.1                    being engaged in the Hexin E-Commerce Business or any business that is of the same nature as the Hexin E-Commerce Business through contracts, engagements with or on behalf of any Group Member of Hexin E-Commerce;

 

4.1.2                    continuing to engage in the Hexin Finance Business and the Hexin Information Business that Hexin Finance and Hexin Information engage as of the date of this Agreement; or

 

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4.1.3                    holding shares, invest or otherwise being interested in, beneficially or of record, no more than 50% (calculated on an aggregate basis combining any such ownership by any Group Members of the Hexin Finance and Hexin Information) of the equity or its equivalent of any company (other than Hexin E-Commerce) that engages in any business that is of the same nature as the Hexin E-Commerce Business; provided that Hexin Finance and Hexin Information do not have board or management control of such company.

 

4.2                     Undertaking of Hexin E-Commerce. During the Non-Competition Period, Hexin E-Commerce will not, and will cause each of the other group members of Hexin E-Commerce not to, directly or indirectly be engaged, invest, participate or otherwise be interested in, whether on its own account or with each other or in conjunction with or on behalf of any person, (i) the Hexin Finance Business and the Hexin Information Business; or (ii) any business that is of the same nature as the Hexin Finance Business and the Hexin Information Business. Notwithstanding the foregoing, any Group Member of Hexin E-Commerce shall not be prohibited from:

 

4.2.1                    being engaged in the Hexin Finance Business and the Hexin Information Business or any business that is of the same nature or similar as the Hexin Finance Business and the Hexin Information Business through contracts, engagements with or on behalf of any group member of Hexin Finance and Hexin Information; or

 

4.2.2                    holding shares, invest or otherwise being interested in, beneficially or of record, no more than 50% (calculated on an aggregate basis combining any such ownership by any group members of Hexin E-Commerce) of the equity or its equivalent of any company that engages in any business that is of the same nature as the Business of Hexin Finance and the Business of Hexin Information; provided that Hexin E-Commerce does not have board or management control of such company.

 

5                               Non-Solicitation

 

5.1                     Non-Solicitation by Hexin Finance and Hexin Information. During the Non-Competition Period, Hexin Finance and Hexin Information will not, and will cause each other Group Member of Hexin Finance and Hexin Information not to, directly or indirectly, hire, or solicit for hire, any active employees of or individuals conducting the Hexin E-Commerce Business, or any former employees of Hexin E-Commerce within six

 

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months of the termination of their employment with Hexin E-Commerce, to conduct the Hexin E-Commerce Business within Hexin Finance and Hexin Information without Hexin E-Commerce’s consent; provided that the foregoing shall not prohibit any solicitation activities through generalized non-targeted advertisement not directed to such employees or individuals that do not result in the hiring of any such employees or individuals by Hexin Finance and Hexin Information within the Non-Competition Period.

 

5.2                     Non-Solicitation by Hexin E-Commerce. During the Non-Competition Period, Hexin E-Commerce will not, and will cause each other group member of Hexin E-Commerce not to, directly or indirectly, hire, or solicit for hire, any active employees of or individuals conducting the Business of Hexin Finance and the Hexin Information Business, or any former employees of Hexin Finance and Hexin Information within six months of the termination of their employment with Hexin Finance and Hexin Information, to conduct the Hexin Finance Business and the Hexin Information Business within Hexin E-Commerce without the consent of Hexin Finance and Hexin Information; provided that the foregoing shall not prohibit any solicitation activities through generalized non-targeted advertisement not directed to such employees or individuals that do not result in the hiring of any such employees or individuals by Hexin E-Commerce within the Non-Competition Period.

 

6                               Confidentiality Clauses

 

Parties acknowledge that the existence and the terms of this Agreement and any oral or written information exchanged between Parties in connection with the preparation and performance of this Agreement are regarded as confidential information. Any Party shall maintain confidentiality of all such confidential information, and without obtaining the written consent of the other Party, it shall not disclose any relevant confidential information to any third party, except for the information that: (a) is or will be in the public domain (other than through the receiving Party’s unauthorized disclosure); (b) is under the obligation to be disclosed pursuant to the applicable laws or regulations, rules of any stock exchange, or orders of the court or other government authorities; or (c) is required to be disclosed by any Party to its shareholders, directors, employees, legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such shareholders, directors, employees, legal counsels or financial advisors shall be bound by the confidentiality obligations similar to those set forth in this Section. Disclosure of any confidential information by the shareholders, director, employees of or agencies engaged by any Party shall be deemed disclosure of such confidential information by such Party and such Party shall be held liable for breach of this Agreement.

 

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7                               Term of Agreement

 

7.1                     This Agreement shall become effective upon execution by the Parties. This agreement may be terminated upon written consent of the Parties.

 

7.2                     The rights and obligations of the Parties under Article 6 and Article 8 shall survive the termination of this Agreement.

 

8                               Governing Law and Resolution of Disputes

 

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

 

8.2                     In the event of any dispute with respect to the interpretation and performance of this Agreement, the Parties shall first resolve the dispute through friendly negotiations.  In the event the Parties fail to reach an agreement on the dispute, any Party may submit the relevant dispute to the Beijing Arbitration Commission for arbitration, in accordance with the arbitration rules of such arbitration commission effective at that time.  The place of the hearing of the arbitration shall be Beijing. The arbitration award shall be final and binding on all the Parties.

 

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

 

9                               Breach of Agreement and Indemnification

 

9.1                    If Hexin Finance and Hexin Information materially breach any provision under this Agreement, or fail to perform, perform incompletely or delay to perform any obligation under this Agreement, it shall constitute a breach under this Agreement on the part of Hexin Finance and Hexin Information.  Hexin E-Commerce is entitled to require Hexin Finance and Hexin Information to rectify or take remedial measures.  If Hexin Finance and Hexin Information fail to rectify or take remedial measures within ten (10) days after Hexin E-Commerce delivers written notices to Hexin Finance and Hexin Information and requires for rectification (or within any other reasonable period required by Hexin E-Commerce ), Hexin E-Commerce  is entitled to, at its sole discretion, (1) terminate this Agreement and require  Hexin Finance and Hexin Information to compensate all the losses; or (2) require specific performance of the obligations of Hexin Finance and Hexin Information under this Agreement and require Hexin

 

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Finance and Hexin Information to compensate all the losses.  This Section shall not prejudice any other rights of Hexin E-Commerce under this Agreement.

 

9.2                     In view of the special nature of Internet, Hexin E-Commerce shall not bear any liability to Hexin Finance and Hexin Information under the following circumstances: (a) hacker attack; (b) hugely influenced by the technology adjustment of Internet and Telecommunication Department, not including losses caused by Hexin E-Commerce’s poor management; (c) virus attack; (d) common breakdown of the public internet.

 

9.3                     Unless otherwise required by the applicable laws, Hexin Finance and Hexin Information shall not unilaterally terminate this Agreement in any event.

 

9.4                     Hexin Finance and Hexin Information shall indemnify Hexin E-Commerce and hold Hexin E-Commerce harmless from any losses, damages, obligations or expenses caused by any lawsuit, claims or other demands raised by any third party against Hexin E-Commerce arising from or caused by the services provided by Hexin E-Commerce to Hexin Finance and Hexin Information pursuant this Agreement, except where such losses, damages, obligations or expenses arise from the gross negligence or willful misconduct of Party A.

 

10                        Force Majeure

 

10.1              In the case of any Force Majeure which causes the failure of any Party to perform or completely perform this Agreement or perform this Agreement on time, the Party affected by such Force Majeure shall not be liable for this.  However, the Party affected by such Force Majeure shall give the other Party written notices without any delay, and shall provide details and related documents evidencing such event within 15 days after sending out such notice, explaining the reasons for such failure of, partial or delay of performance.

 

10.2              If such Party claiming Force Majeure fails to notify other Party and furnish it with proof pursuant to the above provision, such Party shall not be excused from the non-performance, incomplete performance or delay of performance of its obligations hereunder.  The Party so affected by the event of Force Majeure shall use reasonable efforts to minimize the consequences of such Force Majeure and to promptly resume performance hereunder whenever the causes of such excuse are cured.  Should the Party so affected by the event of Force Majeure fail to resume performance hereunder when the causes of such excuse are cured, such Party shall be liable to the other Party.

 

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10.3              In the event of Force Majeure, the Parties shall immediately consult with others to find an equitable solution and shall use all reasonable endeavors to minimize the consequences of such Force Majeure.

 

11                        Notices

 

11.1              All notices and other communications required to be given pursuant to this Agreement or otherwise given in connection with this Agreement shall be delivered personally, or sent by registered mail, prepaid postage, a commercial courier service, facsimile transmission or email to the address of such Party set forth below.  The dates on which notices shall be deemed to have been effectively given shall be determined as follows:

 

11.1.1             Notices given by personal delivery shall be deemed effectively given on the date of receipt at the address set forth below, or the date on which such notices are placed at the address set forth below; Notices given by courier service, registered mail or prepaid postage shall be deemed effectively given on the date of receipt, refusal or return for any reason at the address set forth below;

 

11.1.2             Notices given by facsimile transmission shall be deemed effectively given on the date of successful transmission to the Fax no. set forth below (as evidenced by an automatically generated confirmation of transmission).  Notices given by email shall be deemed effectively given on the date of successful transmission, provided that the sending Party has received a system message indicating successful transmission or has not received a system message within 24 hours indicating failure of delivery or return of email.

 

11.1.3             For the purpose of notices, the addresses of the Parties are as follows:

 

Party A.                   Hexin E-Commerce Co., Ltd.

 

Address: Room 1313, 13/F Nei, 4/F-24/F, No. 92 Jia, Jianguo Road, Chaoyang District, Beijing

 

Recipient: ZHOU Xinming (周歆明)

 

Tel: 010-53579038

 

E-mail: zhouxinming@hexindai.com

 

Party B.                   Hexin Financial Information Service (Beijing) Co., Ltd.

 

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Address: Room 1208, 12/F Nei, 4/F-24/F, No. 92 Jia, Jianguo Road, Chaoyang District, Beijing

 

Recipient: YANG Geng (杨庚)

 

Tel: 010-52511263

 

E-mail: yanggeng@hexindai.com

 

Party C.                   Hexin Information Service Co., Ltd.

 

Address: Room 1204, 12/F Nei, 4/F-24/F, No. 92 Jia, Jianguo Road, Chaoyang District, Beijing

 

Recipient: WU Mingxiong (吴明雄)

 

Tel: 010-59856888

 

E-mail: wumingxiong@hexindai.com

 

11.2              Any Party may at any time change its address for notices by a notice delivered to the other Party in accordance with the terms of this Section.

 

12                        Assignment

 

12.1              Without Hexin E-Commerce’s prior written consent, Hexin Finance and Hexin Information shall not assign their rights and obligations under this Agreement to any third party.

 

12.2              Hexin Finance and Hexin Information agree that unless expressly required by the applicable laws otherwise, Hexin E-Commerce may assign its obligations and rights under this Agreement to any third party and in case of such assignment, Hexin E-Commerce is only required to give written notices to Hexin Finance and Hexin Information and does not need any consent from Hexin Finance and Hexin Information for such assignment.

 

13                        Severability

 

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

 

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invalid, illegal or unenforceable provisions.

 

14                        Amendments and Supplements

 

Any amendment, change and supplement to this Agreement shall be made in writing by all of the Parties. Any amendment agreement and supplementary agreement duly executed by Parties hereto with regard to this Agreement shall constitute an integral part of this Agreement, and shall have equal legal validity as this Agreement.

 

15                        Successors

 

The terms of this Agreement shall be binding on Parties hereto and their respective successors and permitted assigns, and shall be valid with respect to Parties and any of their successors and permitted assigns.

 

16                        Language and Counterparts

 

This Agreement is written in English language in three copies, each Party shall hold one copy respectively.

 

(EXECUTION PAGE FOLLOW)

 

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IN WITNESS WHEREOF, Parties have caused their authorized representatives to execute this Business Cooperation Framework Agreement as of the date first above written.

 

	
Party A:
    	
Hexin E-Commerce Co., Ltd. (Seal)
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
AN Xiaobo (安晓博)
    	
 
    
	
Position:
    	
Legal   Representative
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Party B:
    	
Hexin Financial   Information Service (Beijing) Co., Ltd. (Seal)
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
AN Xiaobo (安晓博)
    	
 
    
	
Position:
    	
Legal   Representative
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Party C:
    	
Hexin Information Service   Co., Ltd. (Seal)
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
AN Xiaobo (安晓博)
    	
 
    
	
Position:
    	
Legal   Representative
    	
 
    

 

Framework Agreement-Signature Page

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