Document:

ex10-7.htm

Exhibit 10.7

Contract on Assignment of State-owned 

 

Construction Land Use Right

 

 

	
Formulated by

	
Ministry of Land and Resources of the People’s Republic of China

	
State Administration for Industry and Commerce of the People’s Republic of China

 

Contract No.:

 

C13048120120049

 

  

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Contract on Assignment of State-owned 

 

Construction Land Use Right

 

 

 

 

 

	
The Contract is entered into by and between the following Parties:

Assignor:   Land and Resources Bureau of Wu’an City                                                             ;

Mailing Address:   No. 26, Kuangjian Road, Wu’an City                                                           ;

Postal Code:   056300                                                                                                                         ;

Telephone:   5532912                                                                                                                         ;

Fax:                                           /                                                                                                           ;

Bank of Account:                               /                                                                                              ;

Account No.:                                     /                                                                                                .

Assignee:  Northern Altair Nanotechnologies Co., Ltd.                                                             ;

Mailing Address:   No. 69, North Xinhua Avenue, Wu’an City                                                ;

Postal Code:      056300                                                                                                                      ;

Telephone:        18631277369                                                                                                            ;

Fax:                                        /                                                                                                              ;

Bank of Account:                   /                                                                                                          ;

Account No.:                      /                                                                                                               .

 

  

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Chapter I General Provisions

 

 

	Article 1	The Contract is concluded by and between both Parties on the principles of equality, voluntariness, with compensation, honesty and good faith and in accordance with the provisions of the Property Law of the People’s Republic of China, the Contract Law of the People’s Republic of China, the Law of Land Administration of the People’s Republic of China and the Law of the People’s Republic of China on Administration of Urban Real Estate, etc., relevant administrative regulations and land supply policies.
	 	 	 
	Article 2	The assigned land is owned by the People’s Republic of China; the Assignor may assign the state-owned construction land use right within the authorization scope of law; however, the underground resources and buried items shall be beyond the assignment scope of state-owned construction land use right.
	 	 	 
	Article 3	During the assignment period, the Assignee has the right to occupy, use, benefit from and dispose of the state-owned construction land it acquired pursuant to law, and to construct buildings, structures and auxiliary facilities pursuant to law on the said land.

 

Chapter II Delivery of the Assigned Land and Payment of the Assignment Fee

 

 

	Article 4	The land parcel to be assigned hereunder is numbered 2012 No. 49   , the total area of the land parcel is (in words) TWO HUNDRED SIXTY SIX THOUSAND SIX HUNDRED AND SIXTY SEVEN        square meters (in figures:  266,667    sq m), out of which the area of land parcel to be assigned is (in words) TWO HUNDRED SIXTY SIX THOUSAND SIX HUNDRED AND SIXTY SEVEN           square meters (in figures:   266,667   sq m).

 

 

  

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	 	 	The plane boundary of the land parcel to be assigned hereunder is          /         ; See Attachment 1 for the plane boundary diagram of the land parcel to be assigned.
	 	 	 
	 	 	The vertical boundary of the land parcel to be assigned hereunder is with   /          as the upper limit and   /           as the lower limit, between which the altitude difference is    /      m. See Attachment 2 for the vertical boundary of the land parcel to be assigned.
	 	 	 
	 	 	The spatial range of the land parcel to be assigned is the space formed by the vertical plane of foregoing boundary points and the upper and lower limit plane.
	 	 	 
	Article 5	The land parcel to be assigned hereunder shall be used for industrial purpose, area: 26.6667 hectare  .
	 	 	 
	Article 6	The Assignor agrees to deliver the land parcel subject to assignment to the Assignee prior to November 30, 2012, and agrees that the land parcel to be delivered shall satisfy the conditions as provided in Paragraph  (I)  of this Article:
	 	 	 
	(I)	 	The ground leveling shall reach                /                   ;
	 	 	 
	 	 	The surrounding infrastructure shall reach       /                   ;

 

  

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	(II)	 	
The current land conditions shall be         /                   .

	 	 	 
	Article 7	The period for the assignment of the state-owned construction land use right hereunder shall be  50   years, calculating from the land delivery date as agreed on in Article 6 hereof. Where the assignment procedure is handled for the previously allocated (leased) state-owned construction land use right, the assignment period shall be calculated as of the contract execution date.
	 	 	 
	Article 8	The assignment fee for the state-owned construction land use right hereunder is RMB (in words) SEVENTY FOUR MILLION SIX HUNDRED THOUSAND         Yuan (in figures: RMB   74,600,000        Yuan), and the unit price per square meter is RMB (in words) TWO HUNDRED AND SEVENTY NINE YUAN POINT SEVEN FOUR (in figures: RMB  279.74       Yuan).
	 	 	 
	Article 9	The deposit for the land parcel hereunder shall be RMB (in words)   /    Yuan (in figures:     /       Yuan), which shall be set off as the land assignment fee.
	 	 	 
	Article 10	The Assignee agrees to pay the assignment fee for the state-owned construction land use right hereunder to the Assignor in compliance with the provisions of [Paragraph  (I)]  of this Article:
	 	 	 
	  (I)	 	Pay up the assignment fee for the state-owned construction land use right within 30 days from the date of conclusion of the Contract;
	 	 	 
	  (II)	 	Pay the assignment fee in   /    installments for the state-owned construction land use right to the Assignor subject to the following time and amount:

 

 

  

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	 	 	Where the Assignee pays the assignment fee for the state-owned construction land use right in installments, the Assignee agrees that, while paying the second and subsequent installments of assignment fee for the state-owned construction land use right, it shall pay interest to the Assignor subject to the loan rate released by the People’s Bank of China prevailing at the time of payment of the first installment.
	 	 	 
	 Article 11	The Assignee shall, upon the full payment of the assignment fee for the land parcel hereunder as agreed in the Contract, apply for the registration of assignment of state-owned construction land use right with this Contract and relevant supporting documents such as the payment voucher(s) of assignment fee, etc.

 

 

Chapter III Land Development, Construction and Utilization

 

 

	Article 12	The Assignee agrees that the development and investment intensity of the land parcel hereunder shall be subject to Paragraph   (I)  of this Article as stipulated below:
	 	 	 
	 (I)	 	Where the land parcel hereunder will be used for industrial project construction, the Assignee agrees that the total fixed assets investment for the land parcel hereunder shall be no less than RMB (in words)  ONE BILLION AND FORTY MILLION      Yuan as approved or registered, (in figures: RMB 1,040,000,000   Yuan), and that the investment intensity shall be no less than RMB (in words) THREE THOUSAND EIGHT HUNDRED AND NINTY NINE YUAN POINT NINE NINE     (in figures:   3899.99      Yuan) for every square meter. The total fixed assets investment for the land parcel hereunder shall include buildings, structures and auxiliary facilities, equipments and assignment fee, etc.
	 	 	 
	(II)	 	Where the land parcel hereunder will be used for non-industrial project construction, the Assignee agrees that the total development and investment sum for the land parcel hereunder shall be no less than RMB (in words)           /          Yuan (in figures: RMB         /            Yuan).

 

  

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	Article 13	Where the Assignee newly builds any buildings, structures and auxiliary facilities within the land parcel hereunder, the said buildings, structures and auxiliary facilities shall meet the planning conditions for assigned land parcels as determined by the municipal (county-level) governmental planning department (see Attachment 3), of which:
	 	 	 
	 	 	Nature of the main building:                  /                                                                                                                     ;
	 	 	 
	 	 	Nature of auxiliary building:                  /                                                                                                                     ;
	 	 	 
	 	 	Total building area      400,000.50                                                                                                    sq m;
	 	 	 
	 	 	The floor area ratio shall be no more than  1.50   and no less than   0.60 ;
	 	 	 
	 	 	The height limit for building shall be                / ;
	 	 	 
	 	 	The building density shall be no more than  /   and no less than   30% ;
	 	 	 
	 	 	The greening ratio shall be no more than    20%    and no less than   / ;
	 	 	 
	 	 	Other requirements on land utilization                / .
	 	 	 
	Article 14	The Assignee agrees that the supporting facilities for the construction of the land parcel hereunder shall be subject to Paragraph   (I)   of this Article:
	 	 	 
	 (I)	 	Where the land parcel hereunder will be used for industrial project construction, pursuant to the planning and designing conditions determined by the planning department, the land area used for administration and living service facilities of the enterprise within the assigned land parcel hereunder shall not exceed   /   % of the area of land parcel hereunder, namely   /   sq m, and the building area shall not exceed  /  sq m. The Assignee agrees not to construct non-productive facilities such as residential blocks, specialist buildings, hotels, guest houses or training centers within the land parcel scope hereunder.

 

  

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	(II)	 	Where the land parcel hereunder will be used for residential project construction, pursuant to the planning and construction conditions determined by the planning and construction administration authority, the total dwelling houses within the land parcel assigned hereunder shall not be less than / sets, out of which the dwelling houses with building area under 90 sq m shall be no less than / sets, and the dwelling type shall be    /     . The area of dwelling houses with building area under 90 sq m within the land parcel scope hereunder shall account for no less than   /  % out of the total development and construction area of the land parcel. With respect to the governmental security houses such as affordable houses and low-rent houses to be constructed as supportive buildings within the land parcel scope hereunder, the Assignee agrees to follow Paragraph  /  of the following upon completion:
	 	 	 
	 	 	1. Delivering to the government;
	 	 	 
	 	 	2. Being repurchased by the government;
	 	 	 
	 	 	3. Implementing relevant provisions by the government regarding construction and sales administration of affordable houses.
	 	 	 
	 	 	4.                   /                  .
	 	 	 
	Article 15	The Assignee agrees to construct the following supportive projects within the land parcel scope hereunder and deliver the same to the government without compensation:
	 	 	 
	 	 	      /      
	 	 	 
	Article 16	The Assignee agrees that the land parcel construction project hereunder shall commence prior to March 1, 2013 and be completed prior to March 1, 2015.
	 	 	 
	 	 	In case the Assignee cannot commence the project as scheduled, it shall submit application for postponement to the Assignor 30 days in advance. Subject to the approval of the Assignor, the project completion date may be postponed accordingly; nevertheless, the delayed period shall not exceed one year.
	 	 	 
	Article 17	While engaging in the construction within the land parcel scope hereunder, the Assignee shall follow relevant provisions regarding the interfaces and connection points of water supply, gas supply, waste water discharge and other facilities with any main pipes or transformer substations outside the land parcel.

  

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	 	 	The Assignees agrees that the government may, for the purpose of public utilities, lay various pipes and pipelines through, across or in and out of the land parcel assigned hereunder; however, the government or public utilities construction entity shall give reasonable compensation to the Assignee in case the said work affects the function of the land parcel hereunder.
	 	 	 
	Article 18	The Assignee shall utilize the land in line with the Contract with respect to land purpose and floor area ratio and no alteration shall be made without permission. Within the assignment period, both Parties agree to follow Paragraph  (I)  of this Article if the land purpose has to be altered against the provisions of the Contract:
	 	 	 
	  (I)	 	The Assignor shall take back the construction land use right with compensation;
	 	 	 
	(II)	 	Go through the review and approval procedures for changing the land use purpose, execute the agreement for the modification of contract on assignment of state-owned construction land use right or re-execute the contract on assignment of state-owned construction land use right, subsequent to which the Assignee shall pay a supplementary assignment fee for the construction land use right with the amount being the difference of the evaluated market value of the construction land use right between the approved new use purpose and the original use purpose, and shall go through land alteration registration.
	 	 	 
	Article 19	Within the use period of the land parcel hereunder, the government reserves the right to plan and adjust the land parcel hereunder. Where there is any alteration to the original planning, the existing buildings in the land parcel shall not be affected; while the rebuilding, renovation and reconstruction of buildings, structures and auxiliary facilities on the land parcel within the use period shall be subject to the then valid planning, the same applies when applying for renewal upon the expiry of the use period.

 

  

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	Article 20	The Assignor shall not, prior to the expiry of the use period as agreed herein, withdraw the state-owned construction land use right as legally used by the Assignee; whilst under special conditions where it is necessary to take back the state-owned construction land use right in advance to satisfy the public interests, the Assignor shall go through the legal procedures for approval and compensate the land user in consideration of the value of the buildings, structures and auxiliary facilities on the land parcel, the evaluated market price of the state-owned construction land use right for the remaining period and the direct loss determined upon assessment .

 

 

Chapter IV Transfer, Leasing and Pledge of the State-Owned Construction Land Use Right

 

 

	Article 21	After the Assignee has paid the full assignment fee for the state-owned construction land use right as agreed herein and has obtained the state-owned land use certificate, it shall have the right to transfer, lease and pledge the state-owned construction land use right wholly or partially, whilst the conditions stated in Paragraph (I) of this Article shall be met for first transfer:
	 	 	 
	(I)	 	Investing and developing as agreed on herein and completing over 25% of the total development and investment sum;
	 	 	 
	(II)	 	Investing and developing as agreed on herein and having met the conditions of industrial use or other purpose.
	 	 	 
	Article 22	The transfer, leasing and pledge contract for the state-owned construction land use right shall not violate the provisions of national laws and regulations and the agreement herein.
	 	 	 
	Article 23	Upon the whole or partial transfer of state-owned construction land use right, the rights and obligations specified in the Contract and the land registration documents shall be transferred forthwith. The use period of the state-owned construction land use right shall be the result after subtracting the already used period from the use period agreed on in the Contract.

 

  

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	 	 	Upon the whole or partial leasing of the state-owned construction land use right hereunder, the rights and obligations specified in the Contract and the land registration documents shall still be assumed by the Assignee.
	 	 	 
	Article 24	Where the state-owned construction land use right is transferred or pledged, both Parties in the transfer or pledge shall apply for the land alteration registration with land and resources administration department, presenting the Contract and corresponding transfer or pledge contract and state-owned land use certificate.

 

 

Chapter V Expiration of Use Period

 

 

	Article 25	In case the land user intends to continue to use the land parcel hereunder upon the expiration of the use period as agreed herein, it shall submit the renewal application to the Assignor at least one year in advance, with respect to which the Assignor shall approve except it is necessary to take back the land parcel for the sake of public interests.
	 	 	 
	 	 	The use right of land for residence construction shall be automatically renewed upon expiry.
	 	 	 
	 	 	Where the Assignor agrees to renew the use period, the land user shall, pursuant to law, go through the compensation-based land use formalities such as assignment or leasing, re-execute the compensation-based land use contract like assignment contract or leasing contract, and pay the land use fees such as assignment fee or rent.
	 	 	 
	Article 26	Upon the expiration of the land assignment period, if the land user applies for renewal but does not get approval for the sake of public interests, the land user shall return the state-owned land use certificate and go through the cancellation registration of state-owned construction land use right pursuant to relevant provisions, and the Assignor may take back the state-owned construction land use right without compensation. The Assignor and the land user agree that Paragraph  (I)  of this Article shall be applied regarding the buildings, structures and auxiliary facilities on the land parcel hereunder:

 

  

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	(I)	 	The Assignor will take back the buildings, structures and auxiliary facilities on the land parcel and compensate the land user appropriately in line with the residual value of the buildings, structures and auxiliary facilities on the land parcel at the time of take-back;
	 	 	 
	(II)	 	The Assignor will take back the buildings, structures and auxiliary facilities on the land parcel without any compensation.
	 	 	 
	Article 27	Where the land use period expiries and the land user fails to apply for renewal, the land user shall return the state-owned land use certificate and go through the cancellation registration of state-owned construction land use right pursuant to relevant provisions, and the Assignor may take back the state-owned construction land use right without compensation. The buildings, structures and auxiliary facilities on the land parcel will be taken back by the Assignor without any compensation, while the land user shall maintain the normal functions of the buildings, structures and auxiliary facilities on the land parcel without any intentional destruction. Where the buildings, structures and auxiliary facilities on the land parcel fails to function normally, the Assignor may require the land user to remove or dismantle the buildings, structures and auxiliary facilities on the land parcel and restore the ground to a leveled condition.

 

 

Chapter VI Force Majeure

 

 

	Article 28	Either party hereto may be exempted from any responsibility for any non-performance of the Contract in part or in whole due to any Force Majeure, while the affected party shall, if possible, take all necessary remedial measures to minimize the loss caused by Force Majeure. However, in the event that the Force Majeure occurs when the affected party delays its contractual performance, such exemption shall not be applied.

 

  

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	Article 29	The party affected by Force Majeure shall, within 7 days from the occurrence of such Force Majeure, inform the other party of the Force Majeure in writing with letter, telegraph or fax, etc., and shall, within 15 days from the occurrence of such Force Majeure, deliver to the other party the report and certificate(s) evidencing that the Contract cannot be performed wholly or partially or the contractual performance need to be postponed.

 

 

Chapter VII Liability for Breach

 

 

	Article 30	The Assignee shall, pursuant to the agreement in the Contract, pay the assignment fee for the state-owned construction land use right as scheduled. In the event that the Assignee fails to do so, it shall pay liquidated damages to the Assignor equivalent to  1  ‰ of the overdue amount on a daily basis since the date of default; where the Assignee fails to pay the assignment fee beyond sixty days and still fails to pay the sum upon being urged by the Assignor, the Assignor shall be entitled to cancel the Contract without returning the deposit, and request the Assignee to compensate for the loss incurred thereby.
	 	 	 
	Article 31	Where the Assignee intends to terminate the project investment and construction due to its own cause, and applies to the Assignor for termination of contract performance and returning the assigned land, the Assignor, upon submitting the case to the people’s government originally approving the land assignment and subject to the approval of the people’s government, may return (without interest) to the Assignee the whole or partial assignment fee for the state-owned construction land use right except for the deposit agreed on herein pursuant to the following conditions, take back the state-owned construction land use right without making compensation for the buildings, structures or auxiliary facilities constructed on the land parcel, in addition, the Assignor may require the Assignee to clear off the buildings, structures or auxiliary facilities constructed on the land parcel and restore the ground to a leveled condition; however, the Assignor shall make reasonable compensation to the Assignee in case the former desires to further utilize the buildings, structures or auxiliary facilities constructed on the land parcel:

 

  

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	(I)	 	In case the Assignee applies to the Assignor at least 60 days prior to the maturity of one year upon the construction commencement date as agreed in the Contract, the Assignor will return the assignment fee already paid for the state-owned construction land use right to the Assignee upon deducting the deposit;
	 	 	 
	(II)	 	In case the Assignee applies to the Assignor after one year but less than two years from the construction commencement date and at least 60 days prior to the maturity of two years upon the construction commencement date as agreed in the Contract, the Assignor will return the rest of the assignment fee for the state-owned construction land use right to the Assignee upon deducting the deposit agreed on herein and charge for idle land pursuant to relevant provisions.
	 	 	 
	Article 32	In case the Assignee causes the land idling over one year yet less than two years, it shall pay the charge for idle land pursuant to law; if land idling lasts up to two years and construction work is not commenced, the Assignor shall be entitled to take back the state-owned construction land use right without compensation.
	 	 	 
	Article 33	In case the Assignee fails to commence the construction work on the date as agreed on herein or on any delayed date as otherwise agreed, it shall pay liquidated damages to the Assignor equivalent to  1  ‰ of the total assignment fee for the state-owned construction land use right for each day in delay, and the Assignor has the right to require the Assignee to continue performing the Contract.
	 	 	 
	 	 	In case the Assignee fails to complete the construction work on the date as agreed herein or on any delayed date as otherwise agreed on, it shall pay liquidated damages to the Assignor equivalent to  1  ‰ of the total assignment fee for the state-owned construction land use right for each day in delay.

 

  

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	Article 34	Where the total fixed assets investment for the project, the investment intensity and the total investment sum fail to meet the standards as agreed in the Contract, the Assignor may, subject to the ratio of the actual difference out of the agreed total investment sum and the investment intensity, require the Assignee to pay liquidated damages equivalent to the same ratio of the assignment fee for the state-owned construction land use right and require the Assignee to continue performing the Contract.
	 	 	 
	Article 35	In case any index, including the floor area ratio of buildings and building density in the land parcel hereunder, is lower than the minimum standards contained herein, the Assignor may, subject to the ratio of the actual difference out of the agreed minimum standards, require the Assignee to pay liquidated damages equivalent to the same ratio of assignment fee for the state-owned construction land use right, and has the right to require the Assignee to continue performing the Contract; in case any index, including the floor area ratio of buildings and building density in the land parcel hereunder, is higher than the maximum standards contained herein, the Assignor has the right to take back the area beyond the maximum standards, and may, subject to the ratio of the actual difference out of the agreed maximum standards, require the Assignee to pay liquidated damages equivalent to the same ratio of assignment fee for the state-owned construction land use right.
	 	 	 
	Article 36	In case any index among the greening ratio of industrial construction projects, ratio of land for enterprise administration and living service facilities, building area of enterprise administration and living service facilities is beyond the agreed standards herein, the Assignee shall pay liquidated damages equivalent to 1  ‰ of the assignment fee for the land parcel hereunder to the Assignor, and shall dismantle the relevant greening and building facilities at its own cost.

 

  

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	Article 37	Where the Assignee pays the assignment fee for the state-owned construction land use right as agreed herein, the Assignor shall deliver the assigned land as scheduled herein. In case the Assignee is caused to delay the possession of the land parcel hereunder due to the failure of the Assignor in timely delivering the land, the Assignor shall, for each overdue day, pay liquidated damages to the Assignee equivalent to 1  ‰ of the assignment fee for the state-owned construction land use right paid by the Assignee, and the land use period shall be calculated from the date when the land is actually delivered. Where the Assignor delays to deliver the land for over 60 days and fails to deliver the land even upon being urged by the Assignee, the Assignee shall be entitled to cancel the Contract, and the Assignor shall return doubled deposit paid by the Assignee and shall return the rest of the paid-up assignment fee for the state-owned construction land use right; in addition, the Assignee may request the Assignor to compensate for damages incurred thereby.
	 	 	 
	Article 38	Where the Assignor fails to deliver the land as scheduled, or delivers the land in conditions not as agreed herein or change the land use conditions unilaterally, the Assignee has the right to require the Assignor to perform the contractual obligations pursuant to the conditions stipulated and compensate for the direct loss incurred to the Assignee due to such delayed performance. The land use period shall be calculated from the date when the land meets the agreed conditions.

 

 

Chapter VIII Applicable Laws and Settlement of Dispute

 

 

	Article 39	The conclusion, effectiveness, interpretation, performance and dispute settlement of the Contract shall be governed by laws of the People’s Republic of China.
	 	 	 
	Article 40	Any dispute arising from the performance of the Contract shall be resolved through consultation between both parties, in case no agreement can be reached through consultation, such dispute shall be resolved in the way as agreed in Paragraph (I) of this Article:

 

  

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	(I)	 	Submit to      Handan             Arbitration Committee for arbitration;
	 	 	 
	(II)	 	Resort to the People’s Court pursuant to law.

 

 

Chapter IX Additional Provisions

 

 

	Article 41	The Contract shall come into force on the date of execution by both parties after the land parcel assignment proposal hereunder has been approved by the People’s Government of Wu’an City.
	 	 	 
	Article 42	Both parties hereto shall ensure the name, mailing address, telephone number, fax, bank of account, agent and other information filled in the Contract are authentic and valid. In case of any alteration of the said information, the altering party shall inform the other party in writing within fifteen (15) days from the date of alteration, otherwise, it shall assume any liability of failure to give timely notice thereby incurred.
	 	 	 
	Article 43	The Contract and attachments hereto have    XXX    pages in total. The Chinese version shall prevail.
	 	 	 
	Article 44	The Contract price, amount, area and other numbers shall be expressed in both words and figures with the equal amounts, in case of any difference between words and figures, the words shall prevail.
	 	 	 
	Article 45	Anything uncovered herein may be agreed on and entered into as attachments to this Contract by both Parties, which shall have the same legal effect as this Contract.
	 	 	 
	Article 46	The Contract is made in triplicate, with one copy for the Assignor and one for the Assignee respectively; all copies have the same legal effect.

 

  

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Assignor (seal): [seal:] Land and Resources Bureau of    

	
Assignee (seal): [seal:] North Altair Nanotechnologies    

	
Wu’an City 1304810007300

 

 

 

	
 Co., Ltd. 1304810017951

	
Legal representative (Authorized agent)

(Signature): [signature]

 

	
 Legal representative (Authorized agent):

(Signature): [signature]

 

                       October 31, 2012

 

 

-18-Amendment No. 1 to the Credit Agreement

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Exhibit 10.1

AMENDMENT NO. 1 dated as of November 14, 2012 (this “Amendment”), to the CREDIT AGREEMENT dated as of May 7, 2010 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among ASPECT SOFTWARE PARENT, INC., a Delaware corporation (“Parent”), ASPECT SOFTWARE INTERMEDIATE HOLDINGS LLC, a Delaware limited liability company (“Intermediate Holdings”), ASPECT INTERNATIONAL LLC, a Delaware limited liability company (“Holdings”), ASPECT SOFTWARE, INC., a Delaware corporation (the “Borrower”), the LENDERS party thereto, JPMORGAN CHASE BANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) and Issuing Bank, and JPMORGAN CHASE BANK, N.A. and BANK OF AMERICA, N.A., as Co-Syndication Agents.  Defined terms used in this Amendment and not otherwise defined shall have the meanings assigned to such terms in the Credit Agreement.
WHEREAS pursuant to the Credit Agreement, the Lenders and the Issuing Bank have agreed to extend credit to the Borrower on the terms and subject to the conditions set forth therein;
WHEREAS the Required Lenders have requested that certain provisions of the Credit Agreement be amended as set forth herein; and
WHEREAS Parent, Holdings and the Borrower are willing to amend such provisions of the Credit Agreement, in each case on the terms and subject to the conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, and subject to the conditions set forth herein, the parties hereto hereby agree as follows:
SECTION 1.  Amendments to Section 1.01.  Section 1.01 of the Credit Agreement is hereby amended as follows:
(a)  The following definition shall be added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order:
“Amendment No. 1 Effective Date” means the date on which Amendment No. 1 to this Credit Agreement became effective in accordance with its terms.
(b)  The definition of “Applicable Rate” in Section 1.01 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
“Applicable Rate” means, for any day, (a) with respect to any Loan that is a Tranche B Term Loan, (i) 5.25%, in the case of a Eurodollar Loan, 

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and (ii) 4.25%, in the case of an ABR Loan, and (b) with respect to any Revolving Loan and the commitment fees payable pursuant to Section 2.12(a), the applicable rate per annum set forth below under the heading “Eurodollar Revolving Loan”, “ABR Revolving Loan” or “Commitment Fee Rate”, as the case may be, based upon the Leverage Ratio as of the date that is 10 Business Days after the end of the fiscal quarter of the Borrower for which consolidated financial statements have theretofore been most recently delivered pursuant to Section 5.01(a) or 5.01(b):
	
				
	Leverage Ratio:
	Eurodollar 
Revolving Loan
	ABR Revolving 
Loan
	Commitment Fee 
Rate

	Category 1
Greater than or equal to 3.75:1.00
	

5.25%
	

4.25%
	

0.750%

	Category 2
Less than 3.75:1.00 but 
greater than or equal to 2.50:1.00
	

5.00%
	

4.00%
	

0.625%

	Category 3
Less than 2.50:1.00
	4.75%
	3.75%
	0.500%

For purposes of the foregoing, each change in the Applicable Rate resulting from a change in the Leverage Ratio shall be effective during the period commencing on and including the date of delivery to the Administrative Agent of such consolidated financial statements and related certificate of the Borrower’s Financial Officer indicating such change and ending on the date immediately preceding the effective date of the next such change, provided that the Leverage Ratio shall be deemed to be in Category 1 (x) as of the Effective Date and prior to the initial date of delivery to the Administrative Agent of the consolidated financial statements and the related certificate of the Borrower’s Financial Officer required to be delivered by the Borrower pursuant to Section 5.01(a) or (b) and Section 5.01(c) and (y) at the option of the Administrative Agent or at the request of the Required Lenders if the Borrower fails to deliver the consolidated financial statements or related certificate of its Financial Officer required to be delivered by it pursuant to Section 5.01(a) or (b) and Section 5.01(c), as the case may be, during the period from the expiration of the time for delivery thereof until such consolidated financial statements and related certificate of its Financial Officer are delivered.
Notwithstanding the foregoing, if, at any time, each of (a) the corporate credit rating of the Borrower most recently announced by S&P is not B or better and (b) the corporate family rating of the Borrower most recently announced by Moody’s is not B2 or better (each of clauses (a) and (b), a “Ratings Condition”), then each percentage set forth in 

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clause (a) of the first paragraph of this definition as well as in the table above under the headings “Eurodollar Revolving Loan” and “ABR Revolving Loan” will be increased by a 0.25%.  For purposes of the foregoing, each change in the Applicable Rate resulting from the satisfaction of each of the Ratings Conditions shall apply during the period commencing on the first date on which each of the Ratings Conditions has been (and continues to be) satisfied and ending on the date on which either of the Ratings Conditions is no longer satisfied.  If the rating system of Moody’s or S&P shall change, or if either such rating agency shall cease to be in the business of providing corporate ratings, then the Borrower and the Lenders shall negotiate in good faith to amend the definition of “Applicable Rate” to reflect such changed rating system or the unavailability of ratings from such rating agency and, pending the effectiveness of any such amendment, the Applicable Rate shall be determined as otherwise set forth in this definition assuming that (i) if each of Ratings Conditions continued to be satisfied immediately prior to the occurrence of such change in the rating system or unavailability of ratings, each of the Ratings Conditions continues to be satisfied or (ii) if either of the Ratings Conditions was not satisfied immediately prior to the occurrence of such change in the rating system or unavailability of ratings, each of the Ratings Conditions is not satisfied.” 
(c)  The definition of “Change in Law” in Section 1.01 of the Credit Agreement is hereby amended by adding the following proviso immediately prior to the period at the end of such definition:
“; provided that, notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives promulgated thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States of America or foreign regulatory authorities, in each case pursuant to Basel III, in each case shall be deemed to be a “Change in Law”, regardless of the date enacted, adopted, promulgated or issued”
(d)  The definition of “Subsidiary Loan Party” in Section 1.01 of the Credit Agreement is hereby replaced in its entirety by the following text:
“Subsidiary Loan Party” means any Subsidiary that is not (a) a Foreign Subsidiary or (b) a Subsidiary of a Foreign Subsidiary if, in the case of a Subsidiary described in this clause (b), the provision of a Guarantee by, or a pledge of assets of, such Subsidiary in support of the Obligations would reasonably be expected (in the Borrower’s good faith 

4

determination) to result in material adverse tax consequences to the Borrower and its Subsidiaries, taken as a whole. 
SECTION 2.  Amendment to Section 2.10.  Section 2.10(a) of the Credit Agreement is hereby amended by increasing the amount under the column heading “Amount” in such Section from $1,250,000 to $5,000,000 for each amortization date from (and including) March 31, 2013, to (and including) December 31, 2014.
SECTION 3.  Amendment to Section 4.02.  Section 4.02 of the Credit Agreement is hereby amended by (a) adding the following new paragraph (c) immediately following paragraph (b) of such Section 4.02 and (b) replacing the text “(a) and (b)” in the last paragraph of such Section 4.02 with the text “(a), (b) and (c)”:
“(c)  Parent is in compliance, on a Pro Forma Basis after giving effect to such Credit Event as of the last day (or, in the case of Sections 6.13 and 6.14, as of the date that is 10 Business Days after the last day) of the most-recently ended fiscal quarter of Parent prior to such Credit Event (as well as after giving effect to any Permitted Acquisition or any other acquisition permitted under Section 6.04 (including any that is being financed, in whole or in part, with the proceeds of such Credit Event) that is consummated during or after the four consecutive fiscal quarter period ending on the last day of such fiscal quarter of Parent as if such Permitted Acquisition or other acquisition occurred on the first day of such four consecutive fiscal quarter period), with the covenants contained in Sections 6.12, 6.13 and 6.14, and Parent shall have delivered to the Administrative Agent a certificate of its Financial Officer to the effect set forth in this paragraph (c), together with all calculations relevant thereto (which calculations shall, if made as of the last day of any fiscal quarter of Parent for which Parent has not delivered to the Administrative Agent the financial statements and certificate of its Financial Officer required to be delivered by Section 5.01(a) or (b) and Section 5.01(c), respectively, be accompanied by a reasonably detailed calculation of Consolidated EBITDA and Consolidated Cash Interest Expense for the relevant period).”
SECTION 4.  Amendment to Section 6.01.  Section 6.01 of the Credit Agreement is hereby amended by adding the following proviso immediately after the text “prior to the issuance of such Subordinated Debt” in clause (a)(xi) of such Section 6.01:
“(provided that, notwithstanding the foregoing, Parent, Intermediate Holdings, Holdings and the Borrower will not be, nor will any other Subsidiary be, permitted to incur any Subordinated Debt under this clause (xi) if, on a Pro Forma Basis after giving effect to the incurrence of such Subordinated Debt as of the date that is 10 Business Days after the last day of the most recently ended fiscal quarter of Parent prior to the issuance of such Subordinated Debt, the Leverage Ratio would exceed 5.50 to 1.00)”

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SECTION 5.  Amendment to Section 6.12.  Section 6.12 of the Credit Agreement is hereby amended by replacing the Interest Coverage Ratio table in such Section 6.12 with the following:
	
		
	Period
	Ratio

	Effective Date through September 30, 2012
	1.75 to 1.00

	October 1, 2012, through December 31, 2012
	1.60 to 1.00

	January 1, 2013, through December 31, 2013
	1.45 to 1.00

	January 1, 2014, through March 31, 2014
	1.50 to 1.00

	April 1, 2014, through June 30, 2014
	1.55 to 1.00

	July 1, 2014, through December 31, 2014
	1.60 to 1.00

	January 1, 2015, and thereafter
	1.75 to 1.00

SECTION 6.  Amendment to Section 6.13.  Section 6.13 of the Credit Agreement is hereby amended by replacing the Leverage Ratio table in such Section 6.13 with the following:
	
		
	Period
	Ratio

	Effective Date through September 30, 2012
	6.15 to 1.00

	October 1, 2012, through December 31, 2012
	7.10 to 1.00

	January 1, 2013, through September 30, 2013
	7.50 to 1.00

	October 1, 2013, through December 31, 2013
	7.40 to 1.00

	January 1, 2014, through March 31, 2014
	7.25 to 1.00

	April 1, 2014, through June 30, 2014
	6.85 to 1.00

	July 1, 2014, through September 30, 2014
	6.60 to 1.00

	October 1, 2014, through December 31, 2014
	6.00 to 1.00

	January 1, 2015, through March 31, 2015
	5.75 to 1.00

	April 1, 2015, through December 31, 2015
	5.50 to 1.00

	January 1, 2016, and thereafter
	5.35 to 1.00

SECTION 7.  Amendment to Section 6.14.  Section 6.14 of the Credit Agreement is hereby amended by replacing the First-Lien Leverage Ratio table in such Section 6.14 with the following:

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	Period
	Ratio

	Effective Date through September 30, 2012
	3.65 to 1.00

	October 1, 2012, through December 31, 2012
	4.00 to 1.00

	January 1, 2013, through March 31, 2013
	4.35 to 1.00

	April 1, 2013, through September 30, 2013
	4.30 to 1.00

	October 1, 2013, through December 31, 2013
	4.25 to 1.00

	January 1, 2014, through March 31, 2014
	4.15 to 1.00

	April 1, 2014, through June 30, 2014
	3.95 to 1.00

	July 1, 2014, through September 30, 2014
	3.75 to 1.00

	October 1, 2014, through December 31, 2014
	3.25 to 1.00

	January 1, 2015, through December 31, 2015
	3.00 to 1.00

	January 1, 2016, and thereafter
	2.85 to 1.00

SECTION 8.  Amendment to Section 6.15.  Section 6.15(a) of the Credit Agreement is hereby amended by replacing the text “$20,000,000” in such Section with the text “(i) in the case of any such fiscal year commencing prior to the Amendment No. 1 Effective Date, $20,000,000 and (ii) in the case of any such fiscal year commencing on or after the Amendment No. 1 Effective Date, $12,500,000”.
SECTION 9.  Representations and Warranties.  Each of Parent, Holdings and the Borrower represents and warrants to the Administrative Agent and to each of the Lenders that:
(a)    This Amendment has been duly authorized, executed and delivered by it and constitutes a legal, valid and binding obligation of Parent, Holdings and the Borrower, enforceable against each of them in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.
(b)    The representations and warranties of each of Parent, Holdings, the Borrower and each other Loan Party set forth in the Loan Documents that are qualified by materiality are true and correct, and the representations and warranties that are not so qualified are true and correct in all material respects, in each case on and as of the date hereof (other than with respect to any representation and warranty that expressly relates to an earlier date, in which case such representation and warranty was true and correct, or true and correct in all material respects, as the case may be, as of such earlier date).
(c)    At the time of and immediately after giving effect to this Amendment, no Default has occurred and is continuing.

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SECTION 10.  Effectiveness.  This Amendment shall become effective as of the date first above written when (a) the Administrative Agent shall have received counterparts of this Amendment that, when taken together, bear the signatures of Parent, Holdings, the Borrower and the Required Lenders, (b) the Administrative Agent shall have received payment of all fees and expenses required to be paid or reimbursed by Parent, Holdings, the Borrower or any other Loan Party under or in connection with this Amendment, including, without limitation, those fees and expenses set forth in Section 14 hereof and any other fees separately agreed to by Parent,  Holdings or the Borrower, on the one hand, and the Administrative Agent or any of its Affiliates, on the other hand, and (c) the Borrower shall have made, in accordance with Section 2.11(a) of the Credit Agreement, a prepayment of the Tranche B Term Loans in an aggregate principal amount of not less than $50,000,000 (it being understood, for purposes of clarity, that such prepayment shall be treated as an optional prepayment for purposes of the Credit Agreement).
SECTION 11.  Credit Agreement.  Except as expressly set forth herein, this Amendment (a) shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders, the Administrative Agent, Parent, Holdings, the Borrower or any other Loan Party under the Credit Agreement or any other Loan Document and (b) 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 Parent, Holdings, the Borrower or any other Loan Party to any future consent to, or waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances.  After the date hereof, any reference in the Loan Documents to the Credit Agreement shall mean the Credit Agreement as modified hereby.  This Amendment shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents.
SECTION 12.  Applicable Law; Waiver of Jury Trial.  (d)  THIS AMENDMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
(e)    EACH PARTY HERETO HEREBY AGREES AS SET FORTH IN SECTION 9.10 OF THE CREDIT AGREEMENT AS IF SUCH SECTION WERE SET FORTH IN FULL HEREIN.
SECTION 13.  Counterparts; Amendment.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), 

8

each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile transmission or other electronic imaging shall be effective as delivery of a manually executed counterpart of this Amendment.  This Amendment may not be amended nor may any provision hereof be waived except pursuant to a writing signed by Parent, Holdings, the Borrower, the Administrative Agent and the Required Lenders.
SECTION 14.  Fees; Expenses.  The Borrower agrees to (a) pay to each Lender that consents to this Amendment a consent fee (collectively, the “Consent Fees”) in an amount equal to 0.25% of the sum of (i) the aggregate Revolving Commitments and (ii) the aggregate principal amount of Term Loans, in each case of such Lender outstanding upon effectiveness of the Amendment (after giving effect to the prepayment of the Tranche B Term Loans contemplated by Section 10(c) hereof) and (b) reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with this Amendment to the extent required under Section 9.03 of the Credit Agreement.  The Borrower agrees that the Consent Fees shall not be refundable under any circumstances, shall be paid in immediately available funds and shall not be subject to reduction by way of set-off or counterclaim.
SECTION 15.  Headings.  The Section headings used herein are for convenience of reference only, are not part of this Amendment and are not to affect the construction of, or to be taken into consideration in interpreting, this Amendment.

[Signature Pages Follow]

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 written above.

	
		
	ASPECT SOFTWARE PARENT, INC.,

	By

	 
	/s/ Robert J. Krakauer

	 
	Name:   Robert J. Krakauer

	 
	Title:   President

	
		
	ASPECT SOFTWARE, INC.,

	By

	 
	/s/ Robert J. Krakauer

	 
	Name:   Robert J. Krakauer

	 
	Title:   Chief Financial Officer

[Amendment No. 1 Signature Page]

	
		
	JPMORGAN CHASE BANK, N.A., as Administrative Agent,

	By 

	 
	/s/ Goh Siew Tan

	 
	Name: Goh Siew Tan

	 
	Title: Vice President

	 
	 

	 
	 

	 

[Amendment No. 1 Signature Page]

	
		
	LENDERS UNDER THE CREDIT AGREEMENT

SIGNATURE PAGE TO AMENDMENT NO. 1 DATED AS OF NOVEMBER 14, 2012, TO THE CREDIT AGREEMENT DATED AS OF MAY 7, 2010, AMONG ASPECT SOFTWARE PARENT, INC., ASPECT SOFTWARE INTERMEDIATE HOLDINGS LLC, ASPECT INTERNATIONAL LLC, ASPECT SOFTWARE, INC., THE LENDERS PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT AND ISSUING BANK, AND JPMORGAN CHASE BANK, N.A. AND BANK OF AMERICA, N.A., AS CO-SYNDICATION AGENTS

	Name of Institution:

	 

	 

	 

	 

	 

	By

	 
	 

	Name:

	Title:

	
		
	By

	 
	 

	Name:

	Title:

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