Document:

chl-ex41_259.htm

Exhibit 4.1

 

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

 

 

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this document, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this document.

If you are in any doubt as to any aspect of this document, you should consult your licensed securities dealer, bank manager, solicitor, professional accountant or other professional adviser.

 

 

 

	
Executive Directors: 

YANG Jie (Chairman) 

WANG Yuhang
	
 
	
Registered Office:

60th Floor

The Center

	
DONG Xin
	
 
	
99 Queen’s Road Central

	
 
	
 
	
Hong Kong

	
Independent Non-executive Directors:
	
 
	
 

	
Moses CHENG Mo Chi
	
 
	
 

	
Paul CHOW Man Yiu 

Stephen YIU Kin Wah 

YANG Qiang
	
 
	
14 April 2020

 

To the Shareholders

 

Dear Sir or Madam,

 

	
 
	
1.
	
BUY-BACK MANDATE

 

This is the explanatory statement required to be sent to shareholders under the Rules Governing the Listing of Securities (the “Listing Rules”) on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) in connection with the proposed ordinary resolution set out in item 6 of the notice of the annual general meeting dated 14 April 2020 (the “AGM Notice”) for the approval of the renewal of the general mandate for buy-back of shares. This document also constitutes the memorandum required under section 239 of the Companies Ordinance (Chapter 622 of the Laws of Hong Kong). Reference in this document to “Shares” means share(s) of all classes in the capital of China Mobile Limited (the “Company”).

Exercise of the Buy-back Mandate

 

Whilst the board of directors of the Company (the “Board”) do not presently intend to buy back any Shares immediately, they believe that the flexibility afforded by the mandate granted to them if the ordinary resolution set out in item 6 of the AGM Notice (the “Buy-back Mandate”) is passed would be beneficial to the Company and its shareholders as a whole.

 

It is proposed that up to 10 per cent. of the number of issued Shares on the date of the passing of the resolution to approve the Buy-back Mandate may be bought back. As at 25 March 2020, the latest practicable date for determining such figures, 20,475,482,897 Shares were issued. On the basis of such figures, the Board would be authorised to buy back up to 2,047,548,289 Shares during  the  period  up  to  the  date  of  the  next  annual  general  meeting in  2021,  or  

- 1 -

 

the expiration of the period within which the next annual general meeting of the Company is required by law to be held, or the revocation or variation of the Buy-back Mandate by an ordinary resolution of the shareholders at a general meeting of the Company, whichever of these three events occurs first.

 

Reasons for Buy-backs

 

Buy-backs of Shares will only be made when the Board believes that such a buy-back will benefit the Company and its shareholders. Such buy-backs may, depending on the market conditions and funding arrangements at the time, lead to an enhancement of the net value of the Company and its assets and/or its earnings per Share.

 

Funding of Buy-backs

 

Buy-backs pursuant to the Buy-back Mandate would be financed entirely from the Company’s available cash flow or working capital facilities. Any buy-backs will be made out of funds of the Company legally permitted to be utilised in this connection in accordance with its articles of association and the laws of Hong Kong, including distributable profits. Under the Companies Ordinance, a company’s distributable profits, in relation to the making of a payment by the company, are those profits out of which the company could lawfully make a distribution equal in value to the payment.

 

There might be a material adverse impact on the working capital or gearing position of the Company (as compared with the position disclosed in its most recent published audited accounts for the year ended 31 December 2019 dated 19 March 2020) in the event that the Buy-back Mandate is exercised in full. However, the Board does not propose to exercise the Buy-back Mandate to such an extent as would, in the circumstances, have a material adverse effect on the working capital requirements of the Company or the gearing levels which in the opinion of the Board are from time to time appropriate for the Company.

 

Disclosure of Interests

 

None of the directors of the Company, and to the best of their knowledge, having made all reasonable enquiries, none of their associates, have any present intention, if the Buy-back Mandate is approved by the shareholders of the Company, to sell any Shares to the Company or its subsidiaries.

 

No core connected persons (as defined in the Listing Rules) have notified the Company that they have a present intention to sell Shares to the Company, nor have they undertaken not to do so, if the Buy-back Mandate is approved by the shareholders of the Company.

 

Directors’ Undertaking

 

The Board has undertaken to the Stock Exchange that, so far as the same may be applicable, it will exercise the Buy-back Mandate in accordance with the Listing Rules and the applicable laws of Hong Kong.

 

Share Buy-backs Made by the Company

 

No  buy-backs  of  Shares  have  been  made  by  the  Company  during  the  last  six  months (whether on the Stock Exchange or otherwise).

 

Takeovers Code Consequences

 

If as a result of a buy-back of Shares by the Company, a shareholder’s proportionate interest in the voting rights of the Company increases, such increase will be treated as an acquisition for the purpose of the Hong Kong Code on Takeovers and Mergers (the “Takeovers Code”). As a result, a shareholder, or group of shareholders acting in concert, depending on the level of increase of its or their shareholding, could obtain or consolidate control of the Company and become obliged to 

- 2 -

 

make a mandatory offer in accordance with Rule 26 of the Takeovers Code. The Board is aware of the consequences arising under the Takeovers Code of any buy-back.

 

As at 25 March 2020 (being the latest practicable date prior to the printing of this document), the immediate controlling shareholder of the Company, China Mobile Hong Kong (BVI) Limited (“CMHKBVI”), was recorded in the registers required to be kept by the Company under section 336 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the “SFO”) as having an interest in 14,890,116,842 Shares, representing approximately 72.72 per cent. of the number of issued shares of the Company as at that date. In the event that the Buy-back Mandate is exercised in full and assuming that there is no change in the number of Shares held by CMHKBVI, the shareholding of CMHKBVI in the Company will be increased to approximately 80.80 per cent. of the reduced number of issued shares of the Company immediately after the exercise in full of the Buy-back Mandate. The Board is not aware of any consequences in relation to CMHKBVI which would arise under the Takeovers Code as a result of such share buy-back by the Company. In addition, in exercising the Buy-back Mandate (whether in full or otherwise), the Board will ensure that the Company shall comply with the requirements of the Listing Rules, including the minimum percentage of Shares being held in public hands.

 

Market Prices

 

The highest and lowest prices at which the Shares have traded on the Stock Exchange during each of the previous 12 months before the latest practicable date prior to the printing of this document were:

 

	
 
	
 
	
Traded Market Price
	
 

	
 
	
 
	
Highest
	
 
	
 
	
Lowest
	
 

	
 
	
 
	
HK$
	
 
	
 
	
HK$
	
 

	
2019
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
March
	
 
	
 
	
87.70
	
 
	
 
	
 
	
79.70
	
 

	
April
	
 
	
 
	
81.00
	
 
	
 
	
 
	
73.50
	
 

	
May
	
 
	
 
	
74.65
	
 
	
 
	
 
	
68.45
	
 

	
June
	
 
	
 
	
71.50
	
 
	
 
	
 
	
68.00
	
 

	
July
	
 
	
 
	
71.80
	
 
	
 
	
 
	
66.50
	
 

	
August
	
 
	
 
	
68.10
	
 
	
 
	
 
	
62.05
	
 

	
September
	
 
	
 
	
67.80
	
 
	
 
	
 
	
63.80
	
 

	
October
	
 
	
 
	
66.85
	
 
	
 
	
 
	
63.60
	
 

	
November
	
 
	
 
	
65.30
	
 
	
 
	
 
	
58.85
	
 

	
December
	
 
	
 
	
66.20
	
 
	
 
	
 
	
58.30
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
2020
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
January
	
 
	
 
	
70.00
	
 
	
 
	
 
	
62.60
	
 

	
February
	
 
	
 
	
67.85
	
 
	
 
	
 
	
60.85
	
 

	
March (up to and including 25 March 2020)
	
 
	
 
	
62.80
	
 
	
 
	
 
	
45.20
	
 

 

Extension of Share Issue Mandate

 

A resolution as set out in item 8 of the AGM Notice will also be proposed at the annual general meeting authorising the Board to increase the maximum number of new Shares which may be issued under the general mandate for the issuance and allotment of Shares by adding to it the number of any Shares bought back pursuant to the Buy-back Mandate.

 

	
 
	
2.
	
RE-ELECTION OF DIRECTORS

 

Pursuant to Article 99 of the Company’s Articles of Association, Mr. WANG Yuhang will hold office until the forthcoming annual general meeting of the Company and will then be eligible for re-election. Besides, pursuant to Article 95 of the Company’s Articles of Association, Mr. Paul CHOW Man Yiu and Mr. Stephen YIU Kin Wah will retire by rotation at the forthcoming annual general meeting of the Company and, being eligible, offer themselves for re-election.

- 3 -

 

 

The biographies of the directors proposed for re-election at the forthcoming annual general meeting (“Directors for Re-election”) are set out in Appendix I to this document. Except as disclosed in such biographies, the Directors for Re-election have not held any other directorships in any listed public companies in the last three years. Further, except as noted in the biographies, none of the Directors for Re-election is connected with any directors, senior management or substantial or controlling shareholders of the Company. None of the Directors for Re-election has any interests in the shares of the Company within the meaning of Part XV of the SFO.

The service contracts of all the Directors for Re-election do not provide for a specified length of service and each of such directors will be subject to retirement by rotation and re-election at annual general meetings of the Company every three years. Each of the Directors for Re-election is entitled to an annual director’s fee of HK$180,000 as proposed by the Board and approved by the shareholders of the Company. Director’s fees are payable on a time pro-rata basis for any non-full year’s service. Mr. WANG Yuhang has voluntarily waived his annual director’s fees.  The remuneration  of  the  Directors  for Re-election has been determined with reference to the individual’s duties, responsibilities and experience, and to prevailing market conditions.

 

None of the Directors for Re-election has an unexpired service contract which is not determinable by the Company or any of its subsidiaries within one year without payment of compensation, other than under normal statutory obligations.

 

Save as disclosed above, there are no other matters relating to the re-election of the Directors for Re-election that need to be brought to the attention of the shareholders of the Company nor is there any information to be disclosed pursuant to any of the requirements of Rule 13.51(2) of the Listing Rules.

 

Mr. Paul CHOW Man Yiu was appointed as an independent non-executive director of the Company in May 2013 as proposed by the Nomination Committee of the Company and after review and approval by the Board. With his financial and regulatory expertise that is unique in the Board, he can contribute to the Board diversity of the Company and is a highly valued and respected member of the Board. Each year, he provided the Company with a confirmation of his independence, and the Board is of the view that he is independent. The Board believes that he will make a significant contribution to the Company with his extensive experience gained from the financial services industry as well as various listed companies, public organizations and securities regulatory bodies. Accordingly, the Board is of the view that the re-election of Mr. Paul CHOW Man Yiu as an independent non-executive director of the Company is in the interests of the Company and its shareholders as a whole.

 

Mr. Stephen YIU Kin Wah was appointed as an independent non-executive director of the Company in March 2017 as proposed by the Nomination Committee of the Company and after review and approval by the Board. With his accounting expertise that is unique in the Board, he can contribute to the Board diversity of the Company and is a highly valued and respected member of the Board, and is also qualified under the Listing Rules as the Chairman of the Audit Committee of the Company. Each year, he provided the Company with a confirmation of his independence, and the Board is of the view that he is independent. The Board believes that he will make a significant contribution to the Company with his extensive experience gained from the accounting profession. Accordingly, the Board is of the view that the re-election of Mr. Stephen YIU Kin Wah as an independent non-executive director of the Company is in the interests of the Company and its shareholders as a whole.

 

 

		
	
 
	
Yours faithfully

	
 
	
Wong Wai Lan, Grace

	
 
	
Company Secretary

 

 

 

 

- 4 -

 

APPENDIX I

 

 

BIOGRAPHI E S   O F   T H E   DIR E CT ORS   PROPOS E D   FOR   R E - E L E CTION   AT   TH EFORTHCOMING ANNUAL GENERAL MEETING

 

EXECUTIVE DIRECTOR 

 

MR. WANG YUHANG

Age 58, Executive Director of the Company, joined the Board of Directors of the Company in October 2019, principally in charge of human resources and inspection matters. He is also a Director of CMCC and CMC. Mr. Wang formerly served as a deputy general manager of Development Department, general manager of Supervision Department, deputy director of Supervision and Inspection Office, the chief director of Legal Center, general manager of Human Resources Department and executive vice president of China Ocean Shipping (Group) Company; a vice president of COSCO Americas Inc.; the general manager of COSCO Shipbuilding Industry Company; the general manager of COSCO Shipyard Group Co., Ltd.  as well as the executive vice president of China COSCO SHIPPING Corporation Limited. Over the past three years, Mr. Wang had served as a non-executive director and vice chairman of China International Marine Containers (Group) Co., Ltd.  (listed in Hong Kong and Shenzhen), a non-independent and non-executive director and the chairman of COSCO SHIPPING International (Singapore) Co., Ltd. (listed in Singapore), a non-executive director of COSCO SHIPPING Holdings Co., Ltd. (listed in Hong Kong and Shanghai), and an executive director and the chairman of COSCO SHIPPING International (Hong Kong) Co., Ltd. (listed in Hong Kong). Mr. Wang graduated from Dalian Maritime College in 1983 with a major in marine engineering management. He is a senior engineer with many years of experience in the shipping industry and in human resources and corporate management.

 

INDEPENDENT NON-EXECUTIVE DIRECTORS 

 

MR. PAUL CHOW MAN YIU

Age 73, Independent Non-Executive Director of the Company, joined the Board of Directors of the Company in May 2013. He was appointed as the Chairman of the Nomination Committee in May 2016. He was the Chief Executive of the Asia Pacific Region (ex-Japan) of HSBC Asset Management (Hong Kong) Limited from 1997 to 2003, an executive director and Chief Executive of Hong Kong Exchanges and Clearing Limited from April 2003 to January 2010, the Chairman of Hong Kong Cyberport Management Company Limited from June 2010 to May 2016, an independent non-executive director of Bank of China Limited from October 2010 to August 2016, a member of the Advisory Committee on Innovation and Technology of the Government of the Hong Kong Special Administrative Region from April 2015 to March 2017 and an independent non-executive director of CITIC Limited from March 2016 to June 2019. Mr. Chow currently serves as an independent non-executive director of Julius Baer Group Ltd. and Bank Julius Baer & Co. Ltd.

 

MR. STEPHEN YIU KIN WAH

 

Age 59, Independent Non-Executive Director of the Company, joined the Board of Directors of the Company in March 2017. He was appointed as the Chairman of the Audit Committee in May 2018. Mr. Yiu is currently a Non-Executive Director of the Insurance Authority, an Independent Non-Executive Director of Hong Kong Exchanges and Clearing Limited and ANTA Sports Products Limited, a Council member of The Hong Kong University of Science and Technology, and a member of the Exchange Fund Advisory Committee of The Hong Kong Monetary Authority and ICAC Complaints Committee. Mr. Yiu joined the global accounting firm KPMG (“KPMG”) in Hong Kong in 1983 and was seconded to KPMG in London, the United Kingdom from 1987 to 1989. Mr. Yiu became a partner of KPMG in 1994, served as the Partner in Charge of Audit of KPMG from 2007 to 2010, and served as the Chairman and Chief Executive Officer of KPMG China and Hong Kong as well as a member of the Executive Committee and the Board of KPMG International and KPMG Asia Pacific from April 2011 to March 2015. Mr. Yiu formerly also served as a member of the Audit Profession Reform Advisory Committee and the Mainland Affairs Committee of the Hong Kong Institute of Certified Public Accountants. Mr. Yiu is a fellow member of the Association of Chartered Certified Accountants, a fellow member of the Hong Kong Institute of Certified Public Accountants and a member of the Institute of Chartered Accountants of England and Wales. Mr. Yiu received a professional diploma in accountancy from The Hong Kong 

- 5 -

 

APPENDIX I

 

 

Polytechnic (now known as The Hong Kong Polytechnic University) in 1983, and holds a master’s degree in business administration from the University of Warwick in the United Kingdom.

- 6 -Exhibit 10.4

 

 

NOTE

 

	Date	4/9/2020
	Note Amount	$ 5,627,500
	Borrower	Indian Industries, Inc.
	Lender	JPMorgan Chase Bank, N.A.

 

 

		1.	PROMISE TO PAY.

 

Borrower promises to pay to the
order of Lender the Note Amount, plus interest on the unpaid principal balance at the Note Rate, and all other amounts required
by this Note.

 

		2.	DEFINITIONS.

 

“CARES Act” means
the Coronavirus Aid, Relief, and Economic Security Act.

 

“Deferral Period” means the six month period beginning on the
date of this Note.

 

“Loan” means the loan evidenced
by this Note.

 

“Maturity Date” means twenty-four
(24) months from the date of this Note.

 

“Note Rate” means
an interest rate of 0.98% Per Annum and interest shall accrue on the unpaid principal balance computed on the basis of the actual
number of days elapsed in a year of 360 days.

 

“Per Annum” means for a
year deemed to be comprised of 360 days.

 

“SBA” means the Small Business
Administration, an Agency of the United States of America.

 

		3.	CONDITIONS PRECEDENT TO FUNDING OF LOAN.

 

Before
the funding of the Loan, the following conditions must be satisfied: 

 

		A.	Lender has approved the request for the Loan.

 

		B.	Lender has received approval from SBA to fund the Loan.

 

     

     

    

 

		4.	PAYMENT TERMS.

 

Borrower will pay this Note as follows:

 

		A.	No Payments During Deferral Period. There shall be no
payments due by Borrower during the Deferral Period.

 

		B.	Principal and Interest Payments. Commencing one month
after the expiration of the Deferral Period, and continuing on the same day of each month thereafter until the Maturity Date,
Borrower shall pay to Lender monthly payments of principal and interest, each in such equal amount required to fully amortize
the principal amount outstanding on the Note on the last day of the Deferral Period by the Maturity Date.

 

		C.	Maturity Date. On the Maturity Date, Borrower shall pay
to Lender any and all unpaid principal plus accrued and unpaid interest plus interest accrued during the Deferral Period. This
Note will mature on the Maturity Date.

 

		D.	If any payment is due on a date for which there is no
numerical equivalent in a particular calendar month then it shall be due on the last day of such month. If any payment is due
on a day that is not a Business Day, the payment will be made on the next Business Day. The term "Business Day" means
a day other than a Saturday, Sunday or any other day on which national banking associations are authorized to be closed.

 

		E.	Payments shall be allocated among principal and interest
at the discretion of Lender unless otherwise agreed or required by applicable law. Notwithstanding, in the event the Loan, or
any portion thereof, is forgiven pursuant to the Paycheck Protection Program under the federal CARES Act, the amount so forgiven
shall be applied to principal.

 

		F.	Borrower may prepay this Note at any time without payment
of any premium.

 

		5.	CERTIFICATIONS.

 

Borrower certifies as follows:

 

		A.	Current
                                         economic uncertainty makes this Loan necessary to support the ongoing operations of Borrower.

 

		B.	Loan
                                         funds will be used to retain workers and maintain payroll or make mortgage payments,
                                         lease payments, and utility payments.

 

		C.	During
                                         the period beginning on February 15, 2020 and ending on December 31, 2020, Borrower has
                                         not and will not receive another loan under this program.

 

		D.	Borrower
                                         was in operation on February 15, 2020 and (i) had employees for whom it paid salaries
                                         and payroll taxes, or (ii) paid independent contractors as reported on a 1099-Misc.

 

     

     

    

 

		6.	AGREEMENTS.

 

Borrower
understands and agrees, and waives and releases Lender, as follows:

 

		A.	The
                                         Loan would be made under the SBA’s Paycheck Protection Program. Accordingly, it
                                         must be submitted to and approved by the SBA. There is limited funding available under
                                         the Paycheck Protection Program and so all applications submitted will not be approved
                                         by the SBA.

 

		B.	Lender
                                         is participating in the Payroll Protection Program to help businesses impacted by the
                                         economic impact from COVID-19. However, Lender anticipates high volume and there may
                                         be processing delays and system failures along with other issues that interfere with
                                         submission of your application to SBA. Lender does not represent or guarantee that it
                                         will submit the application before SBA funding is no longer available or at all. You
                                         agree that Lender is not responsible or liable to you (i) if the application is not submitted
                                         to the SBA until after SBA stops approving applications, for any reason or (ii) if the
                                         application is not processed. You forever release and waive any claims against Lender
                                         concerning failure to obtain the Loan. This release and waiver applies to but is not
                                         limited to any claims concerning Lender’s (i) pace, manner or systems for processing
                                         or prioritizing applications, or (ii) representations by Lender regarding the application
                                         process, the Paycheck Protection Program, or availability of funding. This agreed to
                                         release and waiver supersedes any prior communications, understandings, agreements or
                                         communications on the issues set forth herein.

 

		C.	Forgiveness
                                         of the Loan is only available for principal that is used for the limited purposes that
                                         qualify for forgiveness under SBA requirements, and that to obtain forgiveness, Borrower
                                         must request it and must provide documentation in accordance with the SBA requirements,
                                         and certify that the amounts Borrower is requesting to be forgiven qualify under those
                                         requirements. Borrower also understand that Borrower shall remain responsible under the
                                         Loan for any amounts not forgiven, and that interest payable under the Loan will not
                                         be forgiven but that the SBA may pay the Loan interest on forgiven amounts.

 

		D.	Forgiveness
                                         is not automatic and Borrower must request it. Borrower is not relying on Lender for
                                         its understanding of the requirements for forgiveness such as eligible expenditures,
                                         necessary records/documentation, or possible reductions due to changes in number of employees
                                         or compensation. Rather Borrower will consult the SBA’s program materials.

 

		E.	The
                                         application for this Loan is subject to review and that Borrower may not receive the
                                         Loan. The Loan also remains subject to availability of funds under the SBA’s Payment
                                         Protection Program, and to the SBA issuing an SBA loan number.

 

     

     

    

 

		7.	DEFAULT.

 

Borrower is in default under this Note
if Borrower:

 

		A.	Fails to make a payment when due under the Note or otherwise
fails to comply with any provision of this Note.

 

		B.	Does not disclose, or anyone acting on its behalf does
not disclose, any material fact to Lender or SBA.

 

		C.	Makes, or anyone acting on its behalf makes, a materially
false or misleading representation, attestation or certification to Lender or SBA in connection with Borrower’s request
for this Loan under the CARES Act, or makes a false certification under paragraph 5 of this Note.

 

		D.	Fails to comply with all of the provisions of this Note.

 

		E.	Becomes the subject of a proceeding under any bankruptcy
or insolvency law, has a receiver or liquidator appointed for any part of its business or property, or makes an assignment for
the benefit of creditors.

 

		F.	Reorganizes, merges, consolidates, or otherwise changes
ownership or business structure without Lender's prior written consent.

 

		G.	Becomes the subject of a civil or criminal action that
Lender believes may materially affect Borrower's ability to pay this Note.

 

		8.	LENDER'S RIGHTS IF THERE IS A DEFAULT.

 

Without notice or demand and without
giving up any of its rights, Lender may:

 

		A.	Require immediate payment of all amounts owing under
this Note.

		B.	Collect all amounts owing from Borrower.

		C.	File suit and obtain judgment.

 

		9.	LENDER'S GENERAL POWERS.

 

Without notice or Borrower's
consent, Lender may incur expenses to collect amounts due under this Note and enforce the terms of this Note. Among other
things, the expenses may include reasonable attorney's fees and costs. If Lender incurs such expenses, it may demand
immediate repayment from Borrower or add the expenses to the principal balance;

 

     

     

    

 

		10.	GOVERNING LAW AND VENUE; WHEN FEDERAL LAW APPLIES.

 

When SBA is the holder, this Note
shall be interpreted and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures
for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does
not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim
or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt federal law.

 

If the SBA is not the holder,
this Note shall be governed by and construed in accordance with the laws of the State of Ohio where the main office of Lender
is located. MATTERS REGARDING INTEREST TO BE CHARGED BY LENDER AND THE EXPORTATION OF INTEREST SHALL BE GOVERNED BY FEDERAL
LAW (INCLUDING WITHOUT LIMITATION 12 U.S.C. SECTIONS 85 AND 1831u) AND THE LAW OF THE STATE OF OHIO. Borrower agrees that any
legal action or proceeding with respect to any of its obligations under this Note may be brought by Lender in any state or
federal court located in the State of Ohio, as Lender in its sole discretion may elect. Borrower submits to and accepts in
respect of its property, generally and unconditionally, the non-exclusive jurisdiction of those courts. Borrower waives any
claim that the State of Ohio is not a convenient forum or the proper venue for any such suit, action or proceeding. The
extension of credit that is the subject of this Note is being made by Lender in Ohio.

 

		11.	SUCCESSORS AND ASSIGNS.

 

Under this Note, Borrower includes
its successors, and Lender includes its successors and assigns.

 

		12.	GENERAL PROVISIONS.

 

		A.	Borrower must sign all documents necessary at any time
to comply with the Loan.

		B.	Borrower’s execution of this Note has been duly
authorized by all necessary actions of its governing body. The person signing this Note is duly authorized to do so on behalf
of Borrower.

		C.	This Note shall not be governed by any existing or future
credit agreement or loan agreement with Lender. The liabilities guaranteed pursuant to any existing or future guaranty in favor
of Lender shall not include this Note. The liabilities secured by any existing or future security instrument in favor Lender shall
not include this Note.

		D.	Lender may exercise any of its rights separately or together,
as many times and in any order it chooses. Lender may delay or forgo enforcing any of its rights without giving up any of them.

		E.	Borrower may not use an oral statement of Lender or SBA
to contradict or alter the written terms of this Note.

		F.	If any part of this Note is unenforceable, all other
parts remain in effect.

		G.	To the extent allowed by law, Borrower waives all demands
and notices in connection with this Note, including presentment, demand, protest, and notice of dishonor.

		H.	Borrower's liability under this Note will continue with
respect to any amounts SBA may pay Bank based on an SBA guarantee of this Note. Any agreement with Bank under which SBA may guarantee
this Note does not create any third party rights or benefits for Borrower and, if SBA pays Bank under such an agreement, SBA or
Bank may then seek recovery from Borrower of amounts paid by SBA.

		I.	Lender reserves the right to modify the Note Amount based
on documentation received from Borrower.

 

     

     

    

 

		13.	ELECTRONIC SIGNATURES.

 

Borrower’s electronic
signature shall have the same force and effect as an original signature and shall be deemed (i) to be "written" or "in
writing" or an “electronic record”, (ii) to have been signed and (iii) to constitute a record established and
maintained in the ordinary course of business and an original written record when printed from electronic files. Such paper copies
or "printouts," if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding, will be
admissible as between the parties to the same extent and under the same conditions as other original business records created and
maintained in documentary form.

 

		14.	BORROWER’S NAME AND SIGNATURE:

 

Borrower:

 

	Indian Industries, Inc.	 
	 	 
	 	 	 
	By:	/s/ Stephen R. Wawrin	 
	 	 	 
	Printed Name: 	Stephen R. Wawrin 	 
	 	 	 
	Title:  	CFO	 
	 	 	 
	Date Signed:	4/9/2020

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