Document:

EX-4.69

 Exhibit 4.69 
  

FACILITY AGREEMENT 
 dated
25 August 2015 
 in respect of 

US$200,000,000 Unsecured Term Loan Facility 

FOR BAIDU, INC. 
 as
Company 
 and 
 THE HONGKONG
AND SHANGHAI BANKING CORPORATION LIMITED 
 as Lender 

 CONTENTS 
  

							
	Clause	  	 	  	Page	 
	 1.
	  	Interpretation	  	 	1	  
	 2.
	  	Facility	  	 	11	  
	 3.
	  	Purpose	  	 	11	  
	 4.
	  	Conditions precedent	  	 	11	  
	 5.
	  	Utilisation - Loan	  	 	11	  
	 6.
	  	Repayment	  	 	12	  
	 7.
	  	Prepayment and cancellation	  	 	12	  
	 8.
	  	Interest	  	 	14	  
	 9.
	  	Terms	  	 	16	  
	 10.
	  	Market disruption	  	 	16	  
	 11.
	  	Taxes	  	 	17	  
	 12.
	  	Increased Costs	  	 	21	  
	 13.
	  	Mitigation	  	 	22	  
	 14.
	  	Payments	  	 	23	  
	 15.
	  	Representations and warranties	  	 	24	  
	 16.
	  	Information covenants	  	 	28	  
	 17.
	  	Financial covenants	  	 	30	  
	 18.
	  	General covenants	  	 	34	  
	 19.
	  	Default	  	 	39	  
	 20.
	  	Evidence and calculations	  	 	42	  
	 21.
	  	Fee	  	 	42	  
	 22.
	  	Indemnities and Break Costs	  	 	43	  
	 23.
	  	Expenses	  	 	44	  
	 24.
	  	Amendments and waivers	  	 	45	  
	 25.
	  	Changes to the Parties	  	 	45	  
	 26.
	  	Disclosure of information	  	 	49	  
	 27.
	  	Set-off	  	 	49	  
	 28.
	  	Severability	  	 	50	  
	 29.
	  	Counterparts	  	 	50	  
	 30.
	  	Notices	  	 	50	  
	 31.
	  	Language	  	 	51	  
	 32.
	  	Governing law	  	 	52	  
	 33.
	  	Enforcement	  	 	52	  
	 Schedule 1    Conditions precedent
documents
	  	 	54	  
	 Schedule 2    Form of Request
	  	 	57	  
	 Schedule 3    Form of Transfer Certificate
	  	 	58	  
	 Schedule 4    Form of Compliance
Certificate
	  	 	62	  
	 Signatories
	  	 	63	  

 THIS AGREEMENT is dated 25 August 2015 and is made BETWEEN: 

 

	(1)	BAIDU, INC., a limited liability company incorporated under the laws of the Cayman Islands with registered number 96019 as borrower (the Company); and 

 

	(2)	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED as lender (the Lender). 

 IT IS
AGREED as follows: 
  

	1.	INTERPRETATION 

  

	 	1.1	Definitions 

 In this Agreement: 

Affiliate means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of
that Holding Company. 
 APLMA means the Asia Pacific Loan Market Association Limited. 

Availability Period means the period from and including the date of this Agreement to and including the date falling three months after
the date of this Agreement. 
 Basel III means: 
  

	 	(a)	the agreements on capital requirements, a leverage ratio and liquidity standards contained in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III:
International framework for liquidity risk measurement, standards and monitoring” and “Guidance for national authorities operating the countercyclical capital buffer” published by the Basel Committee on Banking Supervision in December
2010, each as amended, supplemented or restated; 

  

	 	(b)	the rules for global systemically important banks contained in “Global systemically important banks: assessment methodology and the additional loss absorbency requirement — Rules text” published by the
Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated; and 

  

	 	(c)	any further guidance or standards published by the Basel Committee on Banking Supervision relating to “Basel III”. 

Beijing Baidu Netcom means 

 (Beijing Baidu Netcom Science Technology Co., Ltd.), a limited liability company established under the laws of the PRC, with business licence no. 110108002734659. 

Break Costs means the amount (if any) which the Lender is entitled to receive under Clause 22.3 (Break Costs). 

 Business Day means a day (other than a Saturday, a Sunday or a public holiday) on which
banks are open for general business in Hong Kong and the PRC and, in relation to any day for the payment of US Dollars, New York City. 

Code means the US Internal Revenue Code of 1986. 

Commitment means US$200,000,000, to the extent not cancelled, transferred or reduced under this Agreement. 

Compliance Certificate means a certificate substantially in the form of Schedule 4 (Form of Compliance Certificate) setting out, among
other things, calculations of the financial covenants. 
 Confidentiality Undertaking means a confidentiality undertaking
substantially in a recommended form of the APLMA or in any other form agreed between the Company and the Lender. 
 Consolidated Assets
means, at any time, the total assets of the Group as shown on the latest consolidated financial statements of the Company delivered to the Lender pursuant to the provisions of this Agreement. 

Cost of Funds means the rate which expresses as a percentage rate per annum as the cost to the Lender of funding the Loan for a Term of
24 months from the Utilisation Date from whatever source it may reasonably select. 
 Default means: 

 

	 	(a)	an Event of Default; or 

  

	 	(b)	an event or circumstance specified in Clause 19 (Default) which would be (with the expiry of a grace period, the giving of notice or the making of any determination under the Finance Documents or any combination of
them) an Event of Default. 

 Disposal Threshold means, at any time, an amount equal to 30% of the Consolidated Assets.

 Disruption Event means: 
  

	 	(a)	a material disruption to the payment or communications systems or to the financial markets which are required to operate in order for payments to be made (or other transactions to be carried out) in connection with the
transactions contemplated by the Finance Documents, which is not caused by, and is beyond the control of, any of the Parties; or 

  

	 	(b)	the occurrence of any other event which results in a disruption (of a technical or systems-related nature) to the treasury or payments operations of a Party preventing it, or any other Party from: 

 

	 	(i)	performing its payment obligations under the Finance Documents; or 

  

	 	(ii)	communicating with other Parties under the Finance Documents, 

  
 2 

 and which is not caused by, and is beyond the control of, the Party whose operations are
disrupted. 
 Dollar, US$ or US Dollar means the lawful currency for the time being of the US. 

Event of Default means an event or circumstance specified as such in Clause 19 (Default). 

Facility means the credit facility made available under this Agreement as described in Clause 2 (Facility). 

Facility Office means the office notified by the Lender to the Company through which the Lender will perform its obligations under this
Agreement. 
 FATCA means: 
  

	 	(a)	sections 1471 to 1474 of the Code or any associated regulations; 

  

	 	(b)	any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of any law or
regulation referred to in paragraph (a) above; or 

  

	 	(c)	any agreement pursuant to the implementation of any treaty, law or regulation referred to in paragraph (a) or (b) above with the US Internal Revenue Service, the US government or any governmental or taxation authority
in any other jurisdiction. 

 FATCA Deduction means a deduction or withholding from a payment under a Finance Document
required by FATCA. 
 FATCA Exempt Party means a Party that is entitled to receive payments free from any FATCA Deduction. 

FATCA FFI means a foreign financial institution as defined in section 1471(d)(4) of the Code which, if the Lender is not a FATCA Exempt
Party, could be required to make a FATCA Deduction. 
 Final Maturity Date means the date falling 24 months from the Utilisation Date.

 Finance Document means: 
  

	 	(a)	this Agreement; 

  

	 	(b)	the Request; 

  

	 	(c)	a Transfer Certificate; or 

  

	 	(d)	any other document designated as such by the Lender and the Company. 

 Financial Indebtedness
means any indebtedness for or in respect of: 
  

	 	(a)	moneys borrowed; 

  
 3 

	 	(b)	any acceptance credit (including any dematerialised equivalent); 

  

	 	(c)	any bond, note, debenture, loan stock or other similar instrument; 

  

	 	(d)	any redeemable preference share; 

  

	 	(e)	any agreement treated as a finance or capital lease in accordance with GAAP; 

  

	 	(f)	receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis); 

  

	 	(g)	the acquisition cost of any asset or service to the extent payable before or after its acquisition or possession by the party liable where the advance or deferred payment: 

 

	 	(i)	is arranged primarily as a method of raising finance or of financing the acquisition of that asset or service or the construction of that asset or service; or 

 

	 	(ii)	involves a period of more than six months before or after the date of acquisition or supply; 

  

	 	(h)	any derivative transaction protecting against or benefiting from fluctuations in any rate or price (and, except for non-payment of an amount, the then mark-to-market value of the derivative transaction will be used to
calculate its amount); 

  

	 	(i)	any other transaction (including any forward sale or purchase agreement) which has the commercial effect of a borrowing; 

  

	 	(j)	any counter-indemnity obligation in respect of any guarantee, indemnity, bond, letter of credit or any other instrument issued by a bank or financial institution; or 

 

	 	(k)	any guarantee, indemnity or similar assurance against financial loss of any person in respect of any item referred to in the above paragraphs, 

in each case, for the avoidance of doubt, excluding any indebtedness arising in the ordinary course of trading (other than, for the avoidance
of doubt, any indebtedness or borrowed moneys incurred to finance the relevant trade). 
 GAAP means generally accepted accounting
principles in the US. 
 Group means the Company and its Subsidiaries from time to time. 

HKD or Hong Kong Dollars means the lawful currency of Hong Kong. 

Hong Kong means the Hong Kong Special Administrative Region of the People’s Republic of China. 

Holding Company of any other person, means a person in respect of which that other person is a Subsidiary. 

  
 4 

 Increased Cost means: 

 

	 	(a)	an additional or increased cost; 

  

	 	(b)	a reduction in the rate of return from the Facility or on the Lender’s (or its Affiliate’s) overall capital (including as a result of any reduction in the rate of return on capital brought about by more
capital being required to be allocated by the Lender); or 

  

	 	(c)	a reduction of an amount due and payable under any Finance Document, 

 which is incurred or
suffered by the Lender or any of its Affiliates but only to the extent attributable to the Lender having entered into any Finance Document or funding or performing its obligations under any Finance Document. 

Law or Regulation means: 
  

	 	(a)	any applicable law or regulation of Hong Kong or any other place; or 

  

	 	(b)	any agreement entered into between the Lender and any competent tax, prosecuting, regulatory or governmental authority in Hong Kong or any other place (the Authority). 

LIBOR means for a Term of the Loan or overdue amount: 
  

	 	(a)	the applicable Screen Rate; or 

  

	 	(b)	if no Screen Rate is available for the relevant currency or Term of the Loan or overdue amount, the rate quoted to the Lender by leading banks in the London interbank market, 

as at 11.00 a.m. (London time) on the Rate Fixing Day for the offering of deposits in the currency of the Loan or overdue amount for a period
comparable to that Term and if any such rate is below zero, LIBOR will be deemed to be zero. 
 Loan means, unless otherwise stated in
this Agreement, the principal amount of the borrowing under this Agreement or the principal amount outstanding of that borrowing. 

London Business Day means a day (other than a Saturday, a Sunday or a public holiday) on which banks are open for general business in
London. 
 Mandatory Prepayment Request has the meaning given to it in Clause 7.2(a) (Mandatory prepayment — disposals). 

Margin means 0.6 per cent. per annum. 

Market Disruption Event has the meaning given to it in Clause 10.1(a) (Market disruption). 

Material Adverse Effect means a material adverse effect on: 

  
 5 

	 	(a)	the business or financial condition of the Group as a whole; 

  

	 	(b)	the ability of the Company to perform its payment obligation or any other material obligation under any Finance Document (which, for the avoidance of doubt, includes but is not limited to its obligation under Clause 17
(Financial Covenants) below); or 

  

	 	(c)	the validity or enforceability of, or the rights or remedies of the Lender under, any Finance Document. 

NASDAQ means the NASDAQ Stock Market in the US. 

Original Financial Statements means the audited consolidated financial statements of the Company for the year ended 31 December
2014. 
 PRC means the People’s Republic of China, but excluding Hong Kong, the Macau Special Administrative Region and Taiwan.

 Party means a party to this Agreement. 

Permitted Transaction means: 
  

	 	(a)	an intra-Group re-organisation on a solvent basis and (if the Company is involved in such re-organisation) where the Company remains a surviving entity; or 

 

	 	(b)	any other transactions agreed by the Lender. 

 Quasi-Security Interest has the meaning
given to it in Clause 18.5(a) (Negative pledge). 
 Rate Fixing Day means the second London Business Day before the first day of a
Term or such other day as the Lender determines is generally treated as the rate fixing day by market practice in the relevant interbank market. 

Repeating Representations means the representations and warranties set out in Clauses 15.2 (Status) to 15.17 (Information) (inclusive)
(other than Clause 15.16 (No material adverse change). 
 Request means a request for the Loan, substantially in the form of Schedule
2 (Form of Request). 
 Restricted Group means the Company and its Restricted Subsidiaries. 

Restricted Subsidiary means, at any time, a Subsidiary of the Company if the gross Tangible Assets or turnover of that Subsidiary then
equal to or exceed 10 per cent. of the gross Tangible Assets or turnover of the Group provided that in no circumstances shall Beijing Baidu Netcom be or become a Restricted Subsidiary. 

For this purpose: 
  

	 	(a)	subject to paragraph (b) below: 

  
 6 

	 	(i)	the contribution of a Subsidiary of the Company will be determined from its financial statements which were consolidated into the latest audited consolidated financial statements of the Company; and 

 

	 	(ii)	the financial condition of the Group will be determined from the latest audited consolidated financial statements of the Company; 

  

	 	(b)	if a Subsidiary of the Company becomes a member of the Group after the date on which the latest audited consolidated financial statements of the Company were prepared: 

 

	 	(i)	the contribution of the Subsidiary will be determined from its latest financial statements; and 

  

	 	(ii)	the financial condition of the Group will be determined from the latest audited consolidated financial statements of the Company but adjusted to take into account any subsequent acquisition or disposal of a business or
a company (including that Subsidiary); 

  

	 	(c)	the contribution of a Subsidiary will, if it has Subsidiaries, be determined from its consolidated financial statements; 

  

	 	(d)	if a Restricted Subsidiary disposes of all or substantially all of its assets to another member of the Group, it will immediately cease to be a Restricted Subsidiary and the other member of the Group (if it is not the
Company or already a Restricted Subsidiary) will immediately become a Restricted Subsidiary; 

  

	 	(e)	a Subsidiary of the Company (if it is not already a Restricted Subsidiary) will become a Restricted Subsidiary on completion of any other intra-Group transfer or reorganisation if it would have been a Restricted
Subsidiary had the intra-Group transfer or reorganisation occurred on the date of the latest audited consolidated financial statements of the Company; and 

  

	 	(f)	except as specifically mentioned in paragraph (d) above, a member of the Group will remain a Restricted Subsidiary until the next audited consolidated financial statements of the Company show otherwise under paragraph
(a) above. 

 If there is a dispute as to whether or not a member of the Group is a Restricted Subsidiary, a certificate of the
auditors of the Company will be, in the absence of manifest error, conclusive. 
 RMB means the lawful currency for the timing being
of the PRC. 
 Sanction means any sanction administered or enforced by the US Department of the Treasury’s Office of Foreign
Assets Control, the US Department of State, the United Nations Security Council, the European Union, Her Majesty’s Treasury or the Hong Kong Monetary Authority. 

Screen Rate means the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which
takes over the 

  
 7 

 
administration of that rate) for US Dollars for the relevant period displayed on page LIBOR01 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate) or
on the appropriate page of such other information service which publishes that rate from time to time in place of Thomson Reuters. If such page or service ceases to be available, the Lender may specify another page or service displaying the relevant
rate after consultation with the Company. 
 Security Interest means any mortgage, pledge, lien, charge or other security interest
securing any obligation of any person or any other agreement or arrangement having a similar effect. 
 Subsidiary means an entity of
which a person has direct or indirect control or owns directly or indirectly more than 50 per cent. of the voting capital or similar right of ownership and control for this purpose means the power to direct the management and the policies of the
entity whether through the ownership of voting capital, by contract or otherwise. 
 Tangible Assets of a person means its total
assets, determined on a consolidated basis if it has any Subsidiaries, less: 
  

	 	(a)	its net intangible assets; and 

  

	 	(b)	goodwill. 

 Tax means any tax, levy, impost, duty or other charge or withholding of a
similar nature (including any related penalty or interest). 
 Tax Deduction means a deduction or withholding for or on account of Tax
from a payment under a Finance Document, other than a FATCA Deduction. 
 Tax Payment means a payment made by the Company to the
Lender in any way relating to a Tax Deduction or under any indemnity given by the Company in respect of Tax under any Finance Document. 

Term means each period determined under this Agreement by reference to which interest on the Loan or an overdue amount is calculated.

 Transaction Costs means, in respect of a disposal, all Taxes and reasonable costs and expenses incurred by any member of the Group
in connection with such disposal. 
 Transfer Certificate means a certificate, substantially in the form of Schedule 3 (Form of
Transfer Certificate), with such amendments as the Lender may approve or reasonably require or any other form agreed between the Lender and the Company. 

US means the United States of America. 

US Tax Obligor means the Company, if: 
  

	 	(a)	it is or becomes resident for tax purposes in the US; or 

  

	 	(b)	some or all of its payments under the Finance Documents are from sources within the US for US federal income tax purposes. 

  
 8 

 Utilisation Date means the date on which the Facility is utilised. 

 

	 	1.2	Construction 

  

	 	(a)	In this Agreement, unless the contrary intention appears, a reference to: 

  

	 	(i)	an amendment includes a supplement, novation, extension (whether of maturity or otherwise), restatement, re-enactment or replacement (however fundamental and whether or not more onerous) and amended will be
construed accordingly; 

  

	 	(ii)	assets includes present and future properties, revenues and rights of every description; 

  

	 	(iii)	an authorisation includes an authorisation, consent, approval, resolution, permit, licence, exemption, filing, registration or notarisation; 

 

	 	(iv)	disposal means a sale, transfer, assignment, grant, lease, licence, declaration of trust or other disposal, whether voluntary or involuntary, and dispose will be construed accordingly (for the avoidance of doubt,
the meaning of disposal does not include issue of new shares by a member of the Group); 

  

	 	(v)	indebtedness includes any obligation (whether incurred as principal or as surety and whether present or future, actual or contingent) for the payment or repayment of money; 

 

	 	(vi)	customer due diligence requirements are to the identification checks that the Lender requests in order to meet its obligations under any applicable law or regulation to identify a person who is (or is to become)
its customer; 

  

	 	(vii)	a person includes any individual, company, corporation, unincorporated association or body (including a partnership, trust, fund, joint venture or consortium), government, state, agency, organisation or other
entity whether or not having separate legal personality; 

  

	 	(viii)	a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law but, if not having the force of law, being of a type with which any person to which it
applies is accustomed to comply) of any governmental, inter-governmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation; 

 

	 	(ix)	a currency is a reference to the lawful currency for the time being of the relevant country; 

  

	 	(x)	a Default or an Event of Default being outstanding means that it has not been remedied or waived; 

  
 9 

	 	(xi)	a provision of law is a reference to that provision as extended, applied, amended or re-enacted and includes any subordinate legislation; 

 

	 	(xii)	a Clause, a Subclause or a Schedule is a reference to a clause or subclause of, or a schedule to, this Agreement; 

  

	 	(xiii)	a Party or any other person includes its successors in title, permitted assigns and permitted transferees; 

  

	 	(xiv)	a Finance Document or other document or security includes (without prejudice to any prohibition on amendments) any amendment to that Finance Document or other document or security, including any change in the
purpose of, any extension for or any increase in the amount of a facility or any additional facility; 

  

	 	(xv)	a time of day is a reference to Hong Kong time; and 

  

	 	(xvi)	including shall be construed as including without limitation (and cognate expressions shall be construed similarly). 

  

	 	(b)	Unless the contrary intention appears, a reference to a month or months is a reference to a period starting on one day in a calendar month and ending on the numerically corresponding day in the next
calendar month or the calendar month in which it is to end, except that: 

  

	 	(i)	if the numerically corresponding day is not a Business Day, the period will end on the next Business Day in that month (if there is one) or the preceding Business Day (if there is not); 

 

	 	(ii)	if there is no numerically corresponding day in that month, that period will end on the last Business Day in that month; and 

  

	 	(iii)	notwithstanding subparagraph (i) above, a period which commences on the last Business Day of a month will end on the last Business Day in the next month or the calendar month in which it is to end, as appropriate,

 provided that the above rules will apply only to the last month of the period. 

 

	 	(c)	Unless the contrary intention appears: 

  

	 	(i)	a reference to a Party will not include that Party if it has ceased to be a Party under this Agreement; 

  

	 	(ii)	a word or expression used in any other Finance Document or in any notice given in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement; and 

 

	 	(iii)	any obligation of the Company under the Finance Documents which is not a payment obligation remains in force for so long as any payment obligation of the Company is, may be or is capable of becoming outstanding under
the Finance Documents. 

  
 10 

	 	(d)	The headings in this Agreement do not affect its interpretation. 

  

	2.	FACILITY 

 Subject to the terms of this Agreement, the Lender makes available to the
Company a US$ term loan facility in an amount equal to the Commitment in one lump sum. 
  

	3.	PURPOSE 

  

	 	3.1	Loan 

 The Loan may only be used for: 

 

	 	(a)	refinancing any existing Financial Indebtedness of the Group; and 

  

	 	(b)	general working capital requirements of the Group. 

  

	 	3.2	No obligation to monitor 

 The Lender is not bound to monitor or verify the utilisation
of the Facility. 
  

	4.	CONDITIONS PRECEDENT 

  

	 	4.1	Conditions precedent documents 

  

	 	(a)	A Request may not be given until the Lender has notified the Company that it has received (or waived receipt of) all of the documents and evidence set out in Part 1 (Conditions precedent) of Schedule 1 (Conditions
precedent documents) in form and substance satisfactory to the Lender. 

  

	 	(b)	The Lender shall give this confirmation to the Company promptly upon being so satisfied. 

  

	 	4.2	Further conditions precedent 

 The obligations of the Lender to participate in the Loan
are subject to the further conditions precedent that on both the date of the Request and the Utilisation Date for the Loan: 
  

	 	(a)	the Repeating Representations are correct in all material respects; and 

  

	 	(b)	no Default is outstanding or would result from the Loan. 

  

	5.	UTILISATION - LOAN 

  

	 	5.1	Giving of Requests 

  

	 	(a)	The Company may borrow the Loan by giving to the Lender a duly completed Request. 

  

	 	(b)	Unless the Lender otherwise agrees, the latest time for receipt by the Lender of a duly completed Request is 11.00 a.m. two (2) Business Days before the Rate Fixing Day for the proposed borrowing. 

  
 11 

	 	(c)	Only one Request may be given under this Agreement. Only one Loan may be requested in the Request. The Request, once given, is irrevocable. 

 

	 	5.2	Completion of Requests 

 A Request for the Loan will not be regarded as having been duly
completed unless: 
  

	 	(a)	the Utilisation Date is a Business Day falling within the Availability Period; 

  

	 	(b)	the amount of the Loan requested is: 

  

	 	(i)	the amount of the Commitment; or 

  

	 	(ii)	such other amount as the Lender may agree; 

  

	 	(c)	the proposed Term complies with this Agreement; and 

  

	 	(d)	the currency specified in the Request is US Dollars. 

  

	 	5.3	Availability of Loan 

 If the conditions set out in Clause 4 (Conditions Precedent),
Clause 5.1 (Giving of Requests) and Clause 5.2 (Completion of Requests) have been met, the Lender shall make the Loan available to the Company directly from the Lender’s Facility Office on the Utilisation Date. 

 

	6.	REPAYMENT 

 The Company must repay the Loan in full on the Final Maturity Date. 

 

	7.	PREPAYMENT AND CANCELLATION 

  

	 	7.1	Mandatory prepayment – illegality 

  

	 	(a)	The Lender must notify the Company promptly if it becomes aware that it is unlawful in any applicable jurisdiction for the Lender to perform any of its obligations under a Finance Document or to fund or maintain the
Loan. 

  

	 	(b)	After notification under paragraph (a) above the Lender must notify the Company promptly that: 

  

	 	(i)	the Company must repay or prepay the Loan on the date specified in paragraph (c) below; and 

  

	 	(ii)	the Commitment of the Lender will be immediately cancelled. 

  

	 	(c)	The date for repayment or prepayment of the Loan will be: 

  

	 	(i)	the last day of the current Term of the Loan; or 

  

	 	(ii)	if earlier, the date specified by the Lender in the notification under paragraph (a) or (b) above and which must not be earlier than the last day of any applicable grace period allowed by law. 

  
 12 

	 	7.2	Mandatory prepayment — disposals 

  

	 	(a)	If a member of the Group (other than Beijing Baidu Netcom): 

  

	 	(i)	in a single transaction or a series of transactions (whether related or not) sells, leases, transfers or otherwise disposes of any asset by means of any sale, lease, transfer or other disposal save for the ones allowed
under sub-paragraphs (b)(ii) to (vi) (inclusive) of Clause 18.6 (Disposals); and 

  

	 	(ii)	the consideration receivable for that disposal (when aggregated with the consideration receivable for any other sale, lease, transfer or other disposal by a member of the Group excluding those allowed under
sub-paragraphs (b)(ii) to (vi) (inclusive) of Clause 18.6 (Disposals) exceeds the Disposal Threshold (such excess amount being the Excess Amount), 

then the Company must (x) promptly notify the Lender of such a disposal and (y) if within 21 days of such notification, the Lender delivers a
written request to the Company (a Mandatory Prepayment Request) procure that: 
  

	 	(A)	an amount equal to the Excess Amount less the Transaction Costs for that disposal is applied towards prepaying the Loan; and 

  

	 	(B)	an amount equal to the net proceeds of any subsequent sale, lease, transfer or other disposal (other than any allowed under sub-paragraphs (b)(ii) to (vi) (inclusive) of Clause 18.6 (Disposals)) (a Subsequent
Disposal) is applied towards prepaying the Loan. 

  

	 	(b)	The Company must promptly notify the Lender of any Subsequent Disposal. 

  

	 	(c)	Any prepayment under this Clause 7.2 must be made within 45 days of the date of the relevant Mandatory Prepayment Request or, in the case of any Subsequent Disposal, within 45 days of such Subsequent Disposal.

  

	 	7.3	Voluntary prepayment 

  

	 	(a)	The Company may, by giving not less than three Business Days’ prior notice to the Lender prepay the Loan in whole or in part on or at any time after (i) the first anniversary of the Utilisation Date; or (ii) the
date on which a Market Disruption Event occurs. 

  

	 	(b)	A prepayment of part of the Loan must be in a minimum amount of US$50,000,000 and an integral multiple of US$10,000,000. 

  

	 	7.4	Automatic cancellation 

 Any part of the Commitment of the Lender which, at that time, is
unutilised will be automatically cancelled at the close of business in Hong Kong on the last day of the Availability Period and shall not be available for utilisation thereafter. 

  
 13 

	 	7.5	Additional right of repayment and cancellation 

  

	 	(a)	If the Company is, or will be, required to pay to the Lender: 

  

	 	(i)	a Tax Payment; or 

  

	 	(ii)	an Increased Cost, 

 the Company may, while the requirement continues, give notice to the Lender
requesting prepayment and cancellation in respect of the Lender. 
  

	 	(b)	After notification under paragraph (a) above: 

  

	 	(i)	the Company must repay or prepay the Loan on the date specified in paragraph (c) below; and 

  

	 	(ii)	the Commitment of the Lender will be immediately cancelled. 

  

	 	(c)	The date for repayment or prepayment of the Loan will be: 

  

	 	(i)	the last day of the current Term for the Loan; or 

  

	 	(ii)	if earlier, the date specified by the Company in its notification. 

  

	 	7.6	Partial prepayment of the Loan 

 No amount of the Loan prepaid under this Agreement may
subsequently be re-borrowed. 
  

	 	7.7	Miscellaneous provisions 

  

	 	(a)	Any notice of prepayment and/or cancellation under this Agreement is irrevocable and must specify the date or dates upon which the relevant prepayment is to be made and the amount of that prepayment. 

 

	 	(b)	All prepayments under this Agreement must be made with accrued interest on the amount prepaid. No premium or penalty is payable in respect of any prepayment except for Break Costs. 

 

	 	(c)	The Lender may agree a shorter notice period for a voluntary prepayment. 

  

	 	(d)	No prepayment or cancellation is allowed except in accordance with the express terms of this Agreement. 

  

	 	(e)	No amount of the Commitment cancelled under this Agreement may subsequently be reinstated. 

  

	8.	INTEREST 

  

	 	8.1	Calculation of interest 

 The rate of interest on the Loan for each Term is the
percentage rate per annum equal to the aggregate of the applicable: 

  
 14 

	 	(a)	Margin; and 

  

	 	(b)	LIBOR or, if the Term is 24 months, the Cost of Funds. 

  

	 	8.2	Payment of interest 

 Except where it is provided to the contrary in this Agreement, the
Company must pay accrued interest on the Loan on the last day of each of its Terms and also, if the Term is longer than three months, on the dates falling at three-monthly intervals after the first day of that Term. For the avoidance of doubt, if
the Term of the Loan is 24 months, the Company must pay accrued interest on the Loan on the dates falling at three-monthly intervals after the Utilisation Date and on the last day of the Term. 

 

	 	8.3	Interest on overdue amounts 

  

	 	(a)	If the Company fails to pay any amount payable by it under the Finance Documents, it must immediately on demand by the Lender pay interest on the overdue amount from its due date up to the date of actual payment, both
before, on and after judgment. 

  

	 	(b)	Interest on an overdue amount is payable at a rate determined by the Lender to be one per cent. per annum above the rate which would have been payable if the overdue amount had, during the period of non-payment,
constituted the Loan in the currency of the overdue amount. For this purpose, the Lender may: 

  

	 	(i)	select successive Terms of any duration of up to three months; and 

  

	 	(ii)	determine the appropriate Rate Fixing Day for that Term. 

  

	 	(c)	Notwithstanding paragraph (b) above, if the overdue amount is a principal amount of the Loan and becomes due and payable before the last day of its current Term, then: 

 

	 	(i)	the first Term for that overdue amount will be the unexpired portion of that Term; and 

  

	 	(ii)	the rate of interest on the overdue amount for that first Term will be one per cent. per annum above the rate then payable on the Loan. 

After the expiry of the first Term for that overdue amount, the rate on the overdue amount will be calculated in accordance with paragraph (b)
above. 
  

	 	(d)	Interest (if unpaid) on an overdue amount will be compounded with that overdue amount at the end of each of its Terms but will remain immediately due and payable. 

 

	 	8.4	Notification of rates of interest 

 The Lender must promptly notify the Company of the
determination of a rate of interest under this Agreement. 

  
 15 

	9.	TERMS 

  

	 	9.1	Selection 

  

	 	(a)	The Loan has successive Terms. The first Term for the Loan will start on the Utilisation Date and each subsequent Term will start on the expiry of its preceding Term. 

 

	 	(b)	Subject to the provisions of this Clause 9, each Term for the Loan shall be three or, subject to availability of funding to the Lender, 24 months or any other period agreed between the Company and the Lender. If the
length of a Term is not determined in accordance with this Clause 9, the Company shall be deemed to have selected a duration of three months for such Term. 

  

	 	9.2	No overrunning the Final Maturity Date 

 If a Term would otherwise overrun the Final
Maturity Date, it will be shortened so that it ends on the Final Maturity Date. 
  

	 	9.3	Other adjustments 

 The Lender and the Company may enter into such other arrangements as
they may agree for the adjustment of Terms and the consolidation and/or splitting of the Loan. 
  

	 	9.4	Notification 

 The Lender must notify the Company of the duration of each Term promptly
after ascertaining its duration. 
  

	10.	MARKET DISRUPTION 

  

	 	10.1	Market disruption 

  

	 	(a)	In this Clause, each of the following events is a Market Disruption Event (if the interest rate for the relevant Term is to be determined by reference to LIBOR): 

 

	 	(i)	at or about 12:00 noon (London time) on the Rate Fixing Day for the relevant Term, the Screen Rate is not available and the Lender is unable to obtain a quotation to determine LIBOR for the relevant Term; or

  

	 	(ii)	by close of business in Hong Kong on the Business Day after the Rate Fixing Day, the Company receives a notification from the Lender that the cost to it of funding the Loan from whatever source it may reasonably select
would be in excess of LIBOR for the relevant Term. 

  

	 	(b)	The Lender must promptly notify the Company of a Market Disruption Event. 

  

	 	(c)	Subject to any alternative basis agreed and consented to by the Company and the Lender as contemplated by Clause 10.2 (Alternative basis of interest or funding), after notification under paragraph (b) above,
the rate of interest on the Loan for the relevant Term will be the aggregate of the applicable: 

  
 16 

	 	(i)	Margin; and 

  

	 	(ii)	the rate which expresses as a percentage rate per annum as the cost to the Lender of funding the Loan from whatever source it may reasonably select. 

 

	 	10.2	Alternative basis of interest or funding 

 If a Market Disruption Event occurs and the
Lender or the Company so requires, the Company and the Lender must enter into negotiations for a period of not more than 30 days with a view to agreeing an alternative basis for determining the rate of interest and/or funding for the affected Loan.

  

	11.	TAXES 

  

	 	11.1	General 

 In this Clause 11: 

Tax Credit means a credit against any Tax or any relief or remission for Tax (or its repayment). 

VAT means goods and services tax, consumption tax, sales tax, value added tax or any other Tax of a similar nature which is imposed in
any jurisdiction from time to time. 
  

	 	11.2	Tax gross-up 

  

	 	(a)	The Company must make all payments to be made by it under the Finance Documents without any Tax Deduction, unless a Tax Deduction is required by law. 

 

	 	(b)	If the Company is aware that the Company must make a Tax Deduction (or that there is a change in the rate or the basis of a Tax Deduction), it must promptly notify the Lender. 

 

	 	(c)	If a Tax Deduction is required by law to be made by the Company or the Lender, the amount of the payment due from the Company will be increased to an amount which (after making the Tax Deduction) leaves an amount equal
to the payment which would have been due if no Tax Deduction had been required. 

  

	 	(d)	If the Company is required to make a Tax Deduction, it must make the minimum Tax Deduction allowed by law and must make any payment required in connection with that Tax Deduction within the time allowed by law.

  

	 	(e)	Within 30 days of making either a Tax Deduction or a payment required in connection with a Tax Deduction, the Company must deliver to the Lender evidence satisfactory to the Lender (acting reasonably) that the Tax
Deduction has been made or (as applicable) the appropriate payment has been paid to the relevant taxing authority. 

  
 17 

	 	11.3	Tax indemnity 

  

	 	(a)	Except as provided below, the Company must, within five Business Days of demand, indemnify the Lender against any loss or liability or cost which the Lender determines will be or has been suffered (directly or
indirectly) by the Lender for or on account of Tax in relation to a payment received or receivable (or any payment deemed to be received or receivable) under a Finance Document. 

 

	 	(b)	Paragraph (a) above does not apply with respect to any Tax assessed on the Lender under the laws of the jurisdiction in which: 

  

	 	(i)	the Lender is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Lender is treated as resident for tax purposes; or 

 

	 	(ii)	the Lender’s Facility Office is located in respect of amounts received or receivable in that jurisdiction, 

if that Tax is imposed on or calculated by reference to the net income received or receivable by the Lender. However, any payment deemed to be
received or receivable, including any amount treated as income but not actually received by the Lender, such as a Tax Deduction, will not be treated as net income received or receivable for this purpose. 

 

	 	(c)	Paragraph (a) above does not apply to the extent a loss, liability or cost: 

  

	 	(i)	is compensated for by an increased payment under Clause 11.2 (Tax gross-up), Clause 11.8 (FATCA Deduction and gross-up by the Company) or paragraph (b) of Clause 11.9 (FATCA Deduction by the Lender); or

  

	 	(ii)	is compensated for by a payment under paragraph (d) of Clause 11.9 (FATCA Deduction by the Lender). 

  

	 	(d)	If the Lender makes or intends to make a claim under paragraph (a) above it must promptly notify the Company of the event which will give, or has given, rise to the claim. 

 

	 	11.4	Tax Credit 

 If the Company makes a Tax Payment and the Lender determines that: 

 

	 	(a)	a Tax Credit is attributable either to an increased payment of which that Tax Payment forms part, or to that Tax Payment; and 

  

	 	(b)	it has obtained, used and retained that Tax Credit, 

 the Lender must pay an amount to the
Company which the Lender determines will leave it (after that payment) in the same after-Tax position as it would have been if the Tax Payment had not been required to be made by the Company. 

  
 18 

	 	11.5	Stamp taxes 

 The Company must pay, and, within five Business Days of demand, indemnify
the Lender against any cost, loss or liability the Lender incurs in relation to all stamp duty, stamp duty land tax, registration or other similar Tax payable in connection with the entry into, performance or enforcement of the Lender, except for
any such Tax payable in connection with the entry into of a Transfer Certificate. 
  

	 	11.6	Value added taxes 

  

	 	(a)	All amounts set out, or expressed to be payable under a Finance Document by the Lender which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which
is or becomes chargeable on that supply, and accordingly, subject to paragraph (b) below, if VAT is chargeable on any supply made by the Lender to the Company under a Finance Document and the Lender is required to account for the VAT, the Company
must pay to the Lender (in addition to and at the same time as paying the consideration for such supply) an amount equal to the amount of the VAT and the Lender shall promptly provide an appropriate VAT invoice to the Company. 

 

	 	(b)	Where a Finance Document requires the Company to reimburse or indemnify the Lender for any costs or expenses, the Company must also at the same time reimburse and indemnify (as the case may be) the Lender against all
VAT incurred by the Lender in respect of those costs or expenses but only to the extent that the Lender (acting reasonably) determines that it is not entitled to credit or repayment from the relevant tax authority in respect of the VAT.

  

	 	(c)	If VAT is chargeable on any supply made by the Lender to the Company under a Finance Document and if reasonably requested by the Lender, the Company must promptly give the Lender details of its VAT registration number
(if applicable) and any other information as is reasonably requested in connection with the Lender’s reporting requirements for the supply. 

  

	 	11.7	FATCA Information 

  

	 	(a)	Subject to paragraph (c) below, a Party shall, within ten Business Days of a reasonable request by the other Party: 

  

	 	(i)	confirm to the other Party whether it is: 

  

	 	(A)	a FATCA Exempt Party; or 

  

	 	(B)	not a FATCA Exempt Party; 

  

	 	(ii)	supply to the other Party such forms, documentation and other information relating to its status under FATCA as the other Party reasonably requests for the purposes of the other Party’s compliance with FATCA;

  

	 	(iii)	supply to the other Party such forms, documentation and other information relating to its status as the other Party reasonably requests for the purposes of the other Party’s compliance with any other law,
regulation, or exchange of information regime. 

  
 19 

	 	(b)	If a Party confirms to the other Party pursuant to paragraph (a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not or has ceased to be a FATCA Exempt Party, that Party shall
notify that other Party reasonably promptly. 

  

	 	(c)	Paragraph (a) above shall not oblige the Lender to do anything, and paragraph (a)(iii) above shall not oblige any Party to do anything, which would or might in its reasonable opinion constitute a breach of:

  

	 	(i)	any law or regulation; 

  

	 	(ii)	any fiduciary duty; or 

  

	 	(iii)	any duty of confidentiality. 

  

	 	(d)	If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation or other information requested in accordance with paragraph (a)(i) or (a)(ii) above (including, for the avoidance
of doubt, where paragraph (c) above applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them) as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested
confirmation, forms, documentation or other information. 

  

	 	11.8	FATCA Deduction and gross-up by the Company 

  

	 	(a)	If the Company is required to make a FATCA Deduction, it shall make that FATCA Deduction and any payment required in connection with that FATCA Deduction within the time allowed and in the minimum amount required by
FATCA. 

  

	 	(b)	If a FATCA Deduction is required to be made by the Company, the amount of the payment due from the Company shall be increased to an amount which (after making any FATCA Deduction) leaves an amount equal to the payment
which would have been due if no FATCA Deduction had been required. 

  

	 	(c)	The Company shall promptly upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of a FATCA Deduction) notify the Lender accordingly. Similarly, the Lender shall
notify the Company on becoming so aware in respect of a payment payable to the Lender. 

  

	 	(d)	Within 30 days of making either a FATCA Deduction or any payment required in connection with that FATCA Deduction, the Company shall deliver to the Lender evidence reasonably satisfactory to the Lender that the FATCA
Deduction has been made or (as applicable) any appropriate payment has been paid to the relevant governmental or taxation authority. 

  
 20 

	 	11.9	FATCA Deduction by the Lender 

  

	 	(a)	The Lender may make any FATCA Deduction it is required by FATCA to make, and any payment required in connection with that FATCA Deduction, and the Lender shall not be required to increase any payment in respect of which
it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction. If the Lender becomes aware that it must make a FATCA Deduction in respect of a payment to the Company (or that there is any change in the
rate or the basis of such FATCA Deduction), it shall notify the Company. 

  

	 	(b)	If the Lender is required to make a FATCA Deduction which relates to a payment by the Company, the amount of the payment due from the Company shall be increased to an amount which (after the Lender has made such FATCA
Deduction), leaves the Lender with an amount equal to the payment if no FATCA Deduction had been required. 

  

	 	(c)	The Lender shall promptly upon becoming aware that it must make a FATCA Deduction which relates to a payment by the Company (or that there is any change in the rate or the basis of such a FATCA Deduction) notify the
Company. 

  

	 	(d)	The Company shall (within three Business Days of demand by the Lender) pay to the Lender an amount equal to the loss, liability or cost which the Lender determines will be or has been (directly or indirectly) suffered
by the Lender as a result of its making a FATCA Deduction in respect of a payment due to it under a Finance Document. This paragraph shall not apply to the extent a loss, liability or cost is compensated for by an increased payment under paragraph
(b) above. 

  

	 	(e)	If the Lender makes, or intends to make, a claim under paragraph (d) above, it shall promptly notify the Company of the FATCA Deduction which will give, or has given, rise to the claim. 

 

	12.	INCREASED COSTS 

  

	 	12.1	Increased Costs 

 Except as provided below in this Clause 12, the Company must, within
five Business Days of demand, pay to the Lender the amount of any Increased Cost incurred by the Lender or any of its Affiliates as a result of: 
  

	 	(a)	the introduction of, or any change in, or any change in the interpretation, administration or application of, any Law or Regulation; or 

 

	 	(b)	compliance with any Law or Regulation or any applicable direction, request or requirement (whether or not having the force of law) of any Authority made after the date of this Agreement. 

 

	 	12.2	Exceptions 

 The Company need not make any payment for an Increased Cost to the extent
that the Increased Cost is: 

  
 21 

	 	(a)	compensated for under another Clause or would have been but for an exception to that Clause; 

  

	 	(b)	attributable to the implementation or application of or compliance with the “International Convergence of Capital Measurement and Capital Standards, a Revised Framework” published by the Basel Committee on
Banking Supervision in June 2004 in the form existing on the date of this Agreement (but excluding any amendment arising out of Basel III) (Basel II) or any other law or regulation which implements Basel II (whether such implementation,
application or compliance is by a government, regulator, the Lender or any of its Affiliates); or 

  

	 	(c)	attributable to the Lender or any Affiliate of the Lender wilfully failing to comply with any Law or Regulation. 

  

	 	12.3	Claims 

  

	 	(a)	If the Lender intends to make a claim for an Increased Cost it must notify the Company of the circumstances giving rise to and the amount of the claim. 

 

	 	(b)	The Lender must, as soon as practicable after making a demand, provide a certificate confirming the amount of its Increased Cost. 

  

	13.	MITIGATION 

  

	 	13.1	Mitigation 

  

	 	(a)	The Lender must, in consultation with the Company, take all reasonable steps to mitigate any circumstances which arise and which result or would result in: 

 

	 	(i)	any Tax Payment or Increased Cost being payable to the Lender; or 

  

	 	(ii)	the Lender being able to exercise any right of prepayment and/or cancellation under this Agreement by reason of any illegality; 

including transferring its rights and obligations under the Finance Documents to an Affiliate or changing its Facility Office. 

 

	 	(b)	Paragraph (a) above does not in any way limit the obligations of the Company under the Finance Documents. 

  

	 	(c)	The Company must promptly indemnify the Lender for all costs and expenses reasonably incurred by the Lender as a result of any step taken by it under this Subclause. 

 

	 	(d)	The Lender is not obliged to take any step under this Subclause if, in the opinion of the Lender (acting reasonably), to do so might be prejudicial to it. 

 

	 	13.2	Conduct of business by the Lender 

 No term of any Finance Document will: 

  
 22 

	 	(a)	interfere with the right of the Lender to arrange its affairs (Tax or otherwise) in whatever manner it thinks fit; 

  

	 	(b)	oblige the Lender to investigate or claim any credit, relief, remission or repayment available to it in respect of Tax or the extent, order and manner of any claim; or 

 

	 	(c)	oblige the Lender to disclose any information relating to its affairs (Tax or otherwise) or any computation in respect of Tax. 

  

	14.	PAYMENTS 

  

	 	14.1	Currency 

  

	 	(a)	Unless a Finance Document specifies that payments under it are to be made in a different manner, the currency of each amount payable under the Finance Documents is determined under this Subclause. 

 

	 	(b)	Amounts payable in respect of Taxes, fees, costs and expenses are payable in the currency in which they are incurred. 

  

	 	(c)	Each other amount payable under the Finance Documents is payable in US Dollars. 

  

	 	14.2	No set-off or counterclaim 

 All payments made by the Company under the Finance Documents
must be calculated and made without (and free and clear of any deduction for) set-off or counterclaim. 
  

	 	14.3	Business Days 

  

	 	(a)	If a payment under the Finance Documents is due on a day which is not a Business Day, the due date for that payment will instead be the next Business Day in the same calendar month (if there is one) or the preceding
Business Day (if there is not) or whatever day the Lender determines (acting reasonably) is market practice. 

  

	 	(b)	During any extension of the due date for payment of any principal under this Agreement interest is payable on that principal at the rate payable on the original due date. 

 

	 	14.4	Disruption to payment systems 

 If the Company receives a notification from the Lender
that a Disruption Event has occurred or the Company notifies the Lender that a Disruption Event has occurred, the Lender may, and must if requested by the Company, enter into discussions with the Company for a period of not more than five days with
a view to agreeing any changes to the operation or administration of the Facility as the Parties may decide are necessary, provided that the Lender is not obliged to agree to any changes if, in its reasonable opinion, it is not practicable to do so.

  
 23 

	15.	REPRESENTATIONS AND WARRANTIES 

  

	 	15.1	Representations and warranties 

 The representations and warranties set out in this
Clause 15 are made by the Company to the Lender. 
  

	 	15.2	Status 

  

	 	(a)	It is a limited liability company, duly incorporated and validly existing under the laws of the Cayman Islands. 

  

	 	(b)	It and each of its Subsidiaries has the power to own its assets and carry on its business as it is being conducted. 

  

	 	(c)	It is acting as principal on its account and not as agent or trustee in any capacity on behalf of any party in relation to this Agreement. 

 

	 	(d)	It is not a FATCA FFI or a US Tax Obligor. 

  

	 	15.3	Powers and authority 

 It has the power to enter into and perform, and has taken all
necessary action to authorise the entry into and performance of, the Finance Documents to which it is or will be a party and the transactions contemplated by those Finance Documents. 

 

	 	15.4	Legal validity 

  

	 	(a)	Subject to any general principles of law limiting its obligations and referred to in any legal opinion required under this Agreement, each Finance Document to which it is a party is its legally binding, valid and
enforceable obligation. 

  

	 	(b)	Each Finance Document to which it is a party is in the proper form for its enforcement in the jurisdiction of its incorporation and in Hong Kong. 

 

	 	15.5	Non-conflict 

 The entry into and performance by it of, and the transactions contemplated
by, the Finance Documents do not conflict with: 
  

	 	(a)	any law or regulation applicable to it; 

  

	 	(b)	its or any of its Subsidiaries’ constitutional documents; 

  

	 	(c)	any document which is binding upon it or any of its Subsidiaries or any of its or its Subsidiaries’ assets. 

  

	 	15.6	No default 

  

	 	(a)	No Event of Default is outstanding or will result from the entry into of, or the performance of any transaction contemplated by, any Finance Document; and 

 

	 	(b)	No other event or circumstance is outstanding which constitutes a default under any document which is binding on it or any of its Subsidiaries or any of its or its Subsidiaries’ assets to an extent or in a manner
which has or is reasonably likely to have a Material Adverse Effect. 

  
 24 

	 	15.7	Authorisations 

 All authorisations required to enable it to enter into and perform its
obligations under, and for the validity and enforceability of, and the transactions contemplated by, the Finance Documents have been, or will, by the time required, have been obtained or effected (as appropriate) and are, or will, by the time
required be, in full force and effect. 
  

	 	15.8	Financial statements 

 Its audited consolidated financial statements most recently
delivered to the Lender (which, at the date of this Agreement, are the Original Financial Statements): 
  

	 	(a)	have been prepared in accordance with GAAP, consistently applied; and 

  

	 	(b)	give a true and fair view of its consolidated financial condition as at the date to which they were drawn up, 

except, in each case, as disclosed to the contrary in those financial statements. 

 

	 	15.9	Litigation 

 No litigation, arbitration or administrative proceedings against any member
of the Group has been started or, to its knowledge, threatened, which have or, if adversely determined, are reasonably likely to have a Material Adverse Effect. 
  

	 	15.10	Issued share capital 

 It has a paid up share capital of not less than HKD1,000,000 or an
equivalent amount in any other approved currency. 
 For the purpose of this Subclause, approved currency means a currency which is
freely convertible into Hong Kong Dollars or a currency approved in writing by the Registrar of Money Lenders appointed under section 4 of the Money Lenders Ordinance (Cap. 163, Laws of Hong Kong) (the MLO) for the purpose of paragraph 12 of
Part 2 of Schedule 1 to the MLO. 
  

	 	15.11	OFAC 

 No member of the Group will: 

 

	 	(a)	use (or otherwise make available) the proceeds of the Loan for the purpose of financing directly or indirectly the activities of any person or entity which is currently listed on the Specially Designated Nationals (the
SDN) List or in a country which is subject to U.S. economic sanctions administered by the US Treasury Department Office of Foreign Assets Control (the OFAC Sanctions) to the extent such financing would be prohibited by the OFAC
Sanctions if conducted by a person in the US; or 

  
 25 

	 	(b)	contribute or otherwise make available the proceeds of the Loan to any person or entity if the relevant member of the Group has actual knowledge that such party intends to use such proceeds for the purpose of financing
the activities of any person or entity which is on the SDN List or in a country which is subject to the OFAC Sanctions, to the extent such financing would be prohibited by the OFAC Sanctions if conducted by a person in the US. 

 

	 	15.12	Sanctions 

 None of the Company, any other member of the Group, any director, officer,
employee, agent or Affiliate of the Company or any other member of the Group is, or is owned or controlled by any person(s) that is: 
  

	 	(a)	the subject of any Sanction; or 

  

	 	(b)	located, organised or resident in a country or territory that is, or whose government is, the subject of any Sanction, including, currently, the Crimea region, Cuba, Iran, North Korea, Sudan and Syria.

  

	 	15.13	Anti-corruption 

 No member of the Group nor its directors or officers or (to the best of
the Company’s knowledge having made all reasonable enquiries) its agents or employees or any other persons acting for it or on its behalf (each a Relevant Person) have: 

 

	 	(a)	violated (and will violate) any applicable anti-bribery or anti-corruption laws; 

  

	 	(b)	offered, paid, promised to pay or authorised the payment of (and will offer, pay, promise to pay or authorise the payment of) any money; or 

 

	 	(c)	offered, given, promised to give or authorised the giving of (and will offer, give, promise to give or authorise the giving of) anything of value to any Government Official (Government Official means any officer,
employee or any other person acting in an official capacity for any government authority or any political party or any candidate for political office (both individually and collectively)) or to any person, 

under circumstances where any member of the Group or the Relevant Person knew or was aware of a high probability that all or a portion of such
money or thing of value would be offered, given or promised, directly or indirectly, to any Government Official, in each case for the purpose of: 
  

	 	i.	any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; 

  

	 	ii.	influencing any act or decision of such Government Official in his official capacity (including a decision to fail to perform his official function); 

 

	 	iii.	inducing such Government Official to do any act in relation to his lawful duty; 

  

	 	iv.	securing any improper advantage; 

  
 26 

	 	v.	inducing such Government Official to influence or affect any act or decision of any Government Entity (Government Entity means government or any department, agency or instrumentality thereof, including any entity
or enterprise owned or controlled by a government, or a public international organisation); or 

  

	 	vi.	assisting any member of the Group or the Relevant Person in obtaining or retaining business for or with a Government Entity, or directing business to the Group or the Relevant Person (and such conduct a Corrupt
Activity), 

 provided that the Company shall not be in breach of the representation in this Clause 15.13 if, within thirty
(30) days of becoming aware of any Corrupt Activity, the Company takes appropriate action to remedy such Corrupt Activity. 
  

	 	15.14	Governing law and enforcement 

  

	 	(a)	The choice of Hong Kong law as the governing law of the Finance Documents will be recognised and enforced in its jurisdiction of incorporation. 

 

	 	(b)	Subject to any qualification referred to in any legal opinion required under this Agreement, any judgment obtained in Hong Kong in relation to a Finance Document will be recognised and enforced in its jurisdiction of
incorporation. 

  

	 	15.15	Authorised signatory 

 Any person specified as its authorised signatory in the
director’s certificate to be delivered under Part 1 (Conditions precedent) of Schedule 1 (Conditions precedent documents) or paragraph (a)(v) of Clause 16.4 (Information – miscellaneous) is authorised to sign the Request and other notices
on its behalf. 
  

	 	15.16	No material adverse change 

 There has been no material adverse change in its
consolidated financial condition since the date to which the Original Financial Statements were drawn up. 
  

	 	15.17	Information 

 All written, factual information supplied by the Company or on its behalf
to the Lender in connection with the Finance Documents (including any information supplied prior to the date of this Agreement) is true and accurate in all material respects as at its date or (if appropriate) as at the date (if any) at which it is
stated to be given and the Company has not omitted to supply any information which, if disclosed, might make the information supplied untrue or misleading in any material respect. 

 

	 	15.18	Restricted Group 

 The following is a complete list of all the members of the Restricted
Group (other than the Company) as of the date of this Agreement: 
  

	 	(a)	Baidu.com Times Technology (Beijing) Co., Ltd; 

  
 27 

	 	(b)	Baidu Online Network Technology (Beijing) Co., Ltd; and 

  

	 	(c)	Baidu (China) Co., Ltd. 

  

	 	15.19	Stamp duties 

 Except for any registration fees, stamp duty or other similar Tax or
charge referred to in any legal opinion required under this Agreement (which will be paid within any applicable time limit), as at the date of this Agreement, no stamp or registration duty or similar Tax or charge is payable in its jurisdiction of
incorporation in respect of any Finance Document. 
  

	 	15.20	Security Interest 

 As at the date of this Agreement, no Security Interest or
Quasi-Security Interest exists over the assets of any member of the Restricted Group. 
  

	 	15.21	Times for making representations and warranties 

  

	 	(a)	The representations and warranties set out in this Clause are made by the Company on the date of this Agreement. 

  

	 	(b)	Each Repeating Representation is deemed to be repeated by the Company on the date of the Request and the first day of each Term and, if the Term of the Loan is 24 months, on the dates falling at three-monthly intervals
after the Utilisation Date. 

  

	 	(c)	When a representation and warranty is repeated, it is applied to the circumstances existing at the time of repetition. 

  

	16.	INFORMATION COVENANTS 

  

	 	16.1	Financial statements 

  

	 	(a)	The Company must supply to the Lender: 

  

	 	(i)	its audited consolidated financial statements for each of its financial years; and 

  

	 	(ii)	its interim financial statements for the first half-year of each of its financial years. 

  

	 	(b)	All financial statements must be supplied as soon as they are available and: 

  

	 	(i)	in the case of the Company’s audited consolidated financial statements, within 180 days; and 

  

	 	(ii)	in the case of the Company’s interim financial statements, within 120 days, 

 of the end
of the relevant financial period. 

  
 28 

	 	16.2	Form of financial statements 

  

	 	(a)	The Company must ensure that each set of financial statements supplied under this Agreement is prepared using GAAP and gives (if audited) a true and fair view of, or (if unaudited) fairly represents, its financial
condition (consolidated or otherwise) as at the date to which those financial statements were drawn up. 

  

	 	(b)	The Company must notify the Lender of any change to the manner in which its consolidated financial statements are prepared. 

  

	 	(c)	If requested by the Lender, the Company must supply to the Lender: 

  

	 	(i)	a full description of any change notified under paragraph (b) above; 

  

	 	(ii)	sufficient information to enable the Lender to make a proper comparison between the financial position shown by the set of financial statements prepared on the changed basis and its most recent consolidated financial
statements delivered to the Lender under this Agreement; and 

  

	 	(iii)	sufficient information, in form and substance as may be reasonably required by the Lender, to enable the Lender to determine whether Clause 17 (Financial covenants) has been complied with and make an accurate comparison
between the financial position indicated in those financial statements and the Original Financial Statements. 

  

	 	16.3	Compliance Certificate 

  

	 	(a)	The Company must supply to the Lender a Compliance Certificate with each set of its financial statements sent to the Lender under this Agreement. 

 

	 	(b)	A Compliance Certificate must be signed by at least one authorised signatory of the Company. 

  

	 	16.4	Information - miscellaneous 

  

	 	(a)	The Company must, subject to paragraph (b) below, supply to the Lender: 

  

	 	(i)	copies of all documents despatched by the Company to its shareholders (or any class of them) or to its creditors generally at the same time as they are despatched; 

 

	 	(ii)	promptly upon becoming aware of them, details of any litigation, arbitration or administrative proceedings against any member of the Group which are current, threatened or pending and which, if adversely determined,
could reasonably be expected to have a Material Adverse Effect; 

  

	 	(iii)	promptly on request, a list of the then current Restricted Subsidiaries; 

  

	 	(iv)	promptly on request, such further information regarding the financial condition, business and operations of any member of the Group as the Lender may reasonably request; and 

  
 29 

	 	(v)	promptly, notice of any change in authorised signatories of the Company signed by a director or company secretary of the Company accompanied by specimen signatures of any new authorised signatories. 

 

	 	(b)	Nothing in paragraph (a) above shall require the Company to supply any document or information to the Lender if and for so long such disclosure will cause the Company to be in breach of the relevant listing rules of
NASDAQ or any mandatory provisions of applicable laws or any confidentiality agreements or undertakings. 

  

	 	16.5	Notification of Default 

  

	 	(a)	The Company must notify the Lender of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence. 

 

	 	(b)	Promptly on request by the Lender, the Company must supply to the Lender a certificate, signed by two of its authorised signatories on its behalf, certifying that no Default is outstanding or, if a Default is
outstanding, specifying the Default and the steps, if any, being taken to remedy it. 

  

	 	16.6	Year end 

 The Company must not change its financial year end except with the prior
written consent of the Lender (which consent shall not be unreasonably withheld or delayed). 
  

	17.	FINANCIAL COVENANTS 

  

	 	17.1	Definitions 

 In this Clause 17: 

Adjusted Consolidated EBITDA means, in relation to a Measurement Period, Consolidated EBITDA for the period adjusted by: 

 

	 	(a)	including the operating profit before interest, tax, depreciation, amortisation and impairment charges (EBITDA) of a member of the Group or attributable to a business or assets acquired during the Measurement Period for
that part of the Measurement Period when it was not a member of the Group and/or the business or assets were not owned by a member of the Group; and 

  

	 	(b)	excluding the EBITDA attributable to any member of the Group or to any business or assets sold during that Measurement Period. 

Consolidated Cash Balance means, at any time, the aggregate of all cash and cash equivalents and short-term investments held by the
Group at that time which would be included on a consolidated balance sheet of the Group drawn up at that time in accordance with GAAP as “Cash and cash equivalents” or “Short-term investments” and for so long as repayment of that
cash or realisation of those cash equivalents or short-term investments is not contingent on the prior discharge of any other indebtedness of any member of the Group or of any other person whatsoever or on satisfaction of any other condition outside
the control of the Group. 

  
 30 

 Consolidated EBIT means, in relation to a Measurement Period, the aggregate of: 

 

	 	(a)	the consolidated operating profits of the Group (including the results from discontinued operations) before finance costs and tax for that Measurement Period; 

 

	 	(b)	plus or minus the Group’s share of the profits or losses of associates for that period (after finance costs and tax) and the Group’s share of the profits or losses of any joint ventures; 

adjusted by: 
  

	 	(i)	taking no account of any Exceptional Item; 

  

	 	(ii)	taking no account of any unrealised gains or losses on any derivative instrument or other financial instrument (other than any derivative instrument which is accounted for on a hedge accounting basis) which is reported
through the income statement; 

  

	 	(iii)	taking no account of any income or charge attributable to a post-employment benefit scheme other than the current service costs and any past service costs and curtailments and settlements attributable to the scheme;

  

	 	(iv)	taking no account of any expense referable to equity-settled share-based compensation of employees. 

Consolidated EBITDA means, in relation to a Measurement Period, Consolidated EBIT for that Measurement Period after adding back any
depreciation and amortisation and taking no account of any charge for impairment or any reversal of any previous impairment charge made in the period. 

Consolidated Tangible Net Worth means at any time the aggregate of: 

 

	 	(a)	the amount paid up or credited as paid up on the issued share capital of the Company; and 

  

	 	(b)	the net amount standing to the credit (or debit) of the consolidated reserves of the Company, 

based on the latest published audited or unaudited consolidated balance sheet of the Company (the latest balance sheet) (and in each
case, the balance sheet of the Company to be provided by the Company as at 31 December of each year shall always be audited) but adjusted by: 
  

	 	(i)	deducting any dividend or other distribution proposed, declared or made by the Company (except to the extent it has been taken into account in the latest balance sheet); 

 

	 	(ii)	deducting any amount attributable to goodwill or any other intangible asset; 

  
 31 

	 	(iii)	deducting any amount attributable to an upward revaluation of assets (other than financial instruments) after 31 December 2014 or, in the case of assets of a company which becomes a member of the Group after that
date, the date on which that company becomes a member of the Group; 

  

	 	(iv)	reflecting any variation in the amount of the issued share capital of the Company after the date of the latest balance sheet (and any change in the consolidated reserves of the Group resulting from that variation); and

  

	 	(v)	excluding any amounts debited or credited to deferred tax which relates to the revaluation of any item which is excluded from the calculation. 

Consolidated Total Borrowings means, in respect of the Group, at any time, the aggregate of the following liabilities calculated at the
nominal, principal or other amount at which the liabilities would be carried in a consolidated balance sheet of the Company drawn up at that time (or in the case of any guarantee, indemnity or similar assurance referred to in paragraph (i) below,
the maximum liability under the relevant instrument): 
  

	 	(a)	any moneys borrowed; 

  

	 	(b)	any redeemable preference shares; 

  

	 	(c)	any acceptance under any acceptance credit (including any dematerialised equivalent); 

  

	 	(d)	any bond, note, debenture, loan stock or other similar instrument; 

  

	 	(e)	any indebtedness under a finance or capital lease in accordance with the GAAP; 

  

	 	(f)	any moneys owing in connection with the sale or discounting of receivables (except to the extent that there is no recourse); 

  

	 	(g)	any indebtedness arising from any deferred payment agreements arranged primarily as a method of raising finance or financing the acquisition of an asset; 

 

	 	(h)	any indebtedness arising in connection with any other transaction (including any forward sale or purchase agreement) which has the commercial effect of a borrowing; and 

 

	 	(i)	any indebtedness of any person of a type referred to in the above paragraphs which is the subject of a guarantee, indemnity or similar assurance against financial loss given by a member of the Group, 

in each case, for the avoidance of doubt, excluding any indebtedness arising (a) in the ordinary course of trading (other than, for the
avoidance of doubt, any indebtedness or borrowed moneys incurred to finance the relevant trade) and (b) between members of the Group. 

  
 32 

 Exceptional Item means any material item of income or expense that represents: 

 

	 	(a)	any gain or loss arising from: 

  

	 	(i)	write-downs of inventories to net realisable value or of property, plant and equipment to recoverable amount, and reversals of such write-downs; 

 

	 	(ii)	restructuring the activities of the Group or any member of the Group and any reversals of any provision for the costs of restructuring; 

 

	 	(iii)	disposals of items of property, plant or equipment; 

  

	 	(iv)	disposals of investments; or 

  

	 	(v)	disposals or settlements of liabilities of any member of the Group that fall within the definition of Consolidated Total Borrowings; or 

 

	 	(b)	any gain of a highly unusual or non-recurring nature; or 

  

	 	(c)	any gain or loss arising from a transaction entered into otherwise than in the carrying on of the normal core business operations of the Group. 

Measurement Period means the last four full financial quarters of the Company ending on the date of the latest balance sheet (as defined
in the definition of Consolidated Tangible Net Worth above). 
  

	 	17.2	Interpretation 

  

	 	(a)	Except as provided to the contrary in this Agreement, an accounting term used in this Clause is to be construed in accordance with the principles applied in connection with the Original Financial Statements.

  

	 	(b)	Any amount in a currency other than US Dollars is to be taken into account at its US Dollar equivalent calculated on the basis of: 

  

	 	(i)	the Lender’s spot rate of exchange for the purchase of the relevant currency in the London foreign exchange market with US Dollars at or about 11.00 a.m. on the day the relevant amount falls to be calculated; or

  

	 	(ii)	if the amount is to be calculated on the last day of a financial period of the Company, the relevant rates of exchange used by the Company in, or in connection with, its financial statements for that period.

  

	 	(c)	No item must be credited or deducted more than once in any calculation under this Clause 17. 

  
 33 

	 	17.3	Consolidated Tangible Net Worth 

 The Company must ensure that Consolidated Tangible Net
Worth is not at any time less than RMB 10,000,000,000. 
  

	 	17.4	Gearing 

 The Company must ensure that Consolidated Total Borrowings does not at any time
exceed 150 per cent. of Consolidated Tangible Net Worth at that time. 
  

	 	17.5	Leverage 

 The Company must ensure that Consolidated Total Borrowings does not, at the
end of each Measurement Period, exceed 2.5 times of the Adjusted Consolidated EBITDA for that Measurement Period. 
  

	 	17.6	Consolidated Cash Balance 

 The Company must ensure that Consolidated Cash Balance is not
at any time less than Consolidated Total Borrowings at that time. 
  

	18.	GENERAL COVENANTS 

  

	 	18.1	General 

 The Company agrees to be bound by the covenants set out in this Clause 18
relating to it and, where the covenant is expressed to apply to any other member of the Group, the Company must ensure that its relevant Subsidiaries perform that covenant. 
  

	 	18.2	Authorisations 

 The Company must promptly: 

 

	 	(a)	obtain, maintain and comply with the terms; and 

  

	 	(b)	if requested by the Lender, supply certified copies to the Lender, 

 of any authorisation
required under any law or regulation to enable it to perform its obligations under, or for the validity or enforceability of, any Finance Document. 
  

	 	18.3	Compliance with laws 

 Each member of the Group must comply in all respects with all laws
to which it is subject where failure to do so would have a Material Adverse Effect. 
  

	 	18.4	Pari passu ranking 

 The Company must ensure that its payment obligations under the
Finance Documents at all times rank at least pari passu with all its other present and future unsecured payment obligations, except for obligations mandatorily preferred by law applying to companies generally. 

  
 34 

	 	18.5	Negative pledge 

  

	 	(a)	For the purpose of this Subclause, Quasi-Security Interest means an arrangement or transaction described in paragraph (c) below. 

 

	 	(b)	Except as provided below, no member of the Restricted Group may create or allow to exist any Security Interest on any of its assets. 

 

	 	(c)	No member of the Restricted Group may: 

  

	 	(i)	sell, transfer or otherwise dispose of any of its assets on terms where it is or may be leased to or re-acquired or acquired by a member of the Restricted Group; 

 

	 	(ii)	sell, transfer or otherwise dispose of any of its receivables on recourse terms; 

  

	 	(iii)	enter into or permit to subsist any title retention arrangement; 

  

	 	(iv)	enter into any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or 

 

	 	(v)	enter into any other preferential arrangement having a similar effect, 

 in circumstances where
the transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset. 
  

	 	(d)	Paragraphs (b) and (c) do not apply to: 

  

	 	(i)	any Security Interest or Quasi-Security Interest comprising a netting, set-off or cash-pooling arrangement entered into by a member of the Restricted Group in the ordinary course of its banking arrangements for the
purpose of netting debit and credit balances; 

  

	 	(ii)	any payment or close out netting or set-off arrangement pursuant to any hedging transaction entered into by a member of the Restricted Group but excluding any Security Interest or Quasi-Security Interest under a credit
support arrangement; 

  

	 	(iii)	any lien arising by operation of law and in the ordinary course of business; 

  

	 	(iv)	any Security Interest or Quasi-Security Interest on an asset, or an asset of any person, acquired by a member of the Restricted Group after the date of this Agreement but only for the period of 6 months from the date of
acquisition and to the extent that the principal amount secured by that Security Interest has not been incurred or increased in contemplation of, or since, the acquisition; 

 

	 	(v)	any Security Interest or Quasi-Security Interest arising under any retention of title, hire purchase or conditional sale arrangement or arrangements having similar effect in respect of goods supplied to a member of the
Restricted Group in the ordinary course of trading and on the supplier’s standard or usual terms and not arising as a result of any default or omission by any member of the Restricted Group; 

  
 35 

	 	(vi)	any Security Interest or Quasi-Security Interest over goods or documents of title arising in the ordinary course of letter of credit transactions entered into in the ordinary course of trade; 

 

	 	(vii)	any Security Interest or Quasi-Security Interest provided with the prior consent of the Lender; and 

  

	 	(viii)	any Security Interest or Quasi-Security Interest securing indebtedness the amount of which (when aggregated with the amount of any other indebtedness which has the benefit of a Security Interest not allowed under the
preceding sub-paragraphs) does not exceed RMB500,000,000 or its equivalent at any time. 

  

	 	18.6	Disposals 

  

	 	(a)	Except as provided below, no member of the Group (other than Beijing Baidu Netcom) may, either in a single transaction or in a series of transactions and whether related or not, dispose of all or any part of its assets
without the prior written consent of the Lender. 

  

	 	(b)	Paragraph (a) above does not apply to any disposal: 

  

	 	(i)	where the consideration receivable of that disposal (when aggregated with the consideration for any other disposal of assets by any member of the Group not allowed under sub-paragraphs (ii) to (vi) below) (A) does not
exceed the Disposal Threshold or (B) exceeds the Disposal Threshold but no Mandatory Prepayment Request has been delivered by the Lender to the Company within the applicable time period specified in Clause 7.2(a) (Mandatory prepayment —
disposals); or (C) exceeds the Disposal Threshold where the net proceeds of that disposal are applied towards mandatory prepayment of the Loan in accordance with Clause 7.2(a) (Mandatory prepayment — disposals); 

 

	 	(ii)	made to another member of the Group (other than Beijing Baidu Netcom); 

  

	 	(iii)	made in the ordinary course of trading of the disposing entity; 

  

	 	(iv)	of assets in exchange for other assets comparable or superior as to type, value and quality; 

  

	 	(v)	of obsolete or redundant vehicles, plant or equipment for cash; or 

  

	 	(vi)	arising as result of a Permitted Transaction. 

  

	 	(c)	Each disposal shall only be permitted under this Subclause if it is made (i) on arm’s length commercial terms or (ii) (other than in respect of any disposal permitted under paragraph (b)(ii) above) on more
favourable terms to the disposing entity than arms’ length commercial terms and at least for fair market value. 

  
 36 

	 	18.7	Change of business 

 The Company must ensure that no substantial change is made to the
general nature of the business of the Restricted Group from that carried on at the date of this Agreement. 
  

	 	18.8	Merger 

 The Company shall not enter into any amalgamation, demerger, merger or
reconstruction other than a Permitted Transaction. 
  

	 	18.9	Insurance 

 Each member of the Restricted Group must insure its business and assets with
insurance companies to such an extent and against such risks as companies engaged in a similar business normally insure. 
  

	 	18.10	“Know Your Customer” Checks 

 The Company shall promptly upon the request of
the Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Lender (for itself or on behalf of any prospective assignee or transferee) in order for the Lender or any prospective assignee or
transferee to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations. 
  

	 	18.11	Sanction 

 The Company shall not, directly or indirectly, use the proceeds of the
Facility, or lend, contribute or otherwise make available such proceeds to any other member of the Group, any joint venture partner or any other person: 
  

	 	(a)	to fund any activities or business of or with any person, or in any country or territory, that, at the time of such funding, is, or whose government is, the subject of any Sanction; or 

 

	 	(b)	in any other manner that would result in a violation of any Sanction by any person (including any person participating in the Facility, whether as underwriter, advisor, investor or otherwise). 

 

	 	18.12	Anti-Money Laundering and Counter-Terrorist Financing 

 Each member of the Group shall
comply in all respects with all anti-money laundering and counter-terrorist financing laws and regulations (AML/CTF Laws) to which it may be subject. The Company shall promptly provide all information to the Lender which the Lender may
require in order to manage its money-laundering and terrorist-financing risks or to comply with AML/CTF Laws. 

  
 37 

	 	18.13	Restrictions on Transactions 

 The Company agrees that the Lender may refuse to act on
any instruction of the Company or delay, block or refuse to process any transaction under this Agreement without incurring any liability if the Lender has fair reason to suspect that: 

 

	 	(a)	the instruction or transaction may breach any Law or Regulation; 

  

	 	(b)	the instruction or transaction involves any person (natural, corporate or governmental) that is itself subject to any applicable sanction imposed by the United Nations or any relevant country or is connected, directly
or indirectly, to any person that is subject to such sanction; 

  

	 	(c)	the instruction or transaction may directly or indirectly involve the proceeds of, or be applied for the purposes of, any unlawful conduct; or 

 

	 	(d)	by carrying out the instruction or transaction, the Lender may breach any Law or Regulation. 

  

	 	18.14	No Immunity 

 The Company agrees that in any legal action or proceedings against it or
its assets in connection with this Agreement, no immunity from such legal action or proceedings shall be claimed by or on behalf of any member of the Group or with respect to its assets, and that member (including the Company) irrevocably waives any
such right of immunity which it or its assets now has/have or may hereafter acquire or which may be attributed to it or its assets and consents generally in respect of any such legal action or proceedings to the giving of any relief or the issue of
any process in connection with such action or proceedings including, without limitation, the making, enforcement or execution against any property whatsoever, of any order or judgment which may be made or given in such action or proceedings. 

 

	 	18.15	Provision of Information 

  

	 	(a)	Each member of the Group agrees that it shall provide the Lender with such information as the Lender may require from time to time to enable the Lender to comply with any Law or Regulation. 

 

	 	(b)	If any information provided by or on behalf of the Company to the Lender includes information or personal data of any third party, the Company confirms and warrants that it has obtained the consent of such third party
to the provision of such information or personal data to the Lender for such purposes and for disclosure to such persons (whether in or outside Hong Kong) as it may be disclosed to in accordance with the terms of this Agreement or the Lender’s
policies on use and disclosure of personal data set out in statements, circulars, terms and conditions or notices made available by the Lender to its customers from time to time. 

 

	 	18.16	Application of FATCA 

 The Company shall procure that it shall not become a FATCA FFI or
a US Tax Obligor. 

  
 38 

	19.	DEFAULT 

  

	 	19.1	Events of Default 

 Each of the events or circumstances set out in this Clause 19 (other
than Clause 19.13 (Acceleration)) is an Event of Default. 
  

	 	19.2	Non-payment 

 The Company does not pay on the due date any amount payable by it under the
Finance Documents in the manner required under the Finance Documents, unless the non-payment 
  

	 	(a)	is caused by technical or administrative error and is remedied within five Business Days of the due date; or 

  

	 	(b)	is caused by a Disruption Event and is remedied within five Business Days of the due date. 

  

	 	19.3	Breach of other obligations 

  

	 	(a)	The Company does not comply with any term of Clause 17 (Financial covenants); or 

  

	 	(b)	the Company does not comply with any term of the Finance Documents (other than any term referred to in Clause 19.2 (Non-payment) or in paragraph (a) above), unless the non-compliance: 

 

	 	(i)	is capable of remedy; and 

  

	 	(ii)	is remedied within 20 Business Days of the earlier of the Lender giving notice of the failure to comply to the Company and the Company becoming aware of the non-compliance. 

 

	 	19.4	Misrepresentation 

 A representation or warranty made or deemed to be repeated by the
Company in any Finance Document or in any document delivered by or on behalf of the Company under any Finance Document is incorrect or misleading in any material respect when made or deemed to be repeated, unless the circumstances giving rise to the
misrepresentation or breach of warranty: 
  

	 	(a)	are capable of remedy; and 

  

	 	(b)	are remedied within 20 Business Days of the earlier of the Lender giving notice of the misrepresentation or breach of warranty to the Company and the Company becoming aware of the misrepresentation or breach of
warranty. 

  

	 	19.5	Cross-default 

 Any of the following occurs in respect of a member of the Restricted
Group: 
  

	 	(a)	any of its Financial Indebtedness is not paid when due (after the expiry of any originally applicable grace period); 

  
 39 

	 	(b)	any of its Financial Indebtedness: 

  

	 	(i)	becomes prematurely due and payable; 

  

	 	(ii)	is placed on demand; or 

  

	 	(iii)	is capable of being declared by or on behalf of a creditor to be prematurely due and payable or of being placed on demand, 

in each case, as a result of an event of default or any provision having a similar effect (howsoever described); or 

 

	 	(c)	any commitment for its Financial Indebtedness is cancelled or suspended as a result of an event of default or any provision having a similar effect (howsoever described), 

unless the aggregate amount of Financial Indebtedness falling within all or any of paragraphs (a) to (c) above is less than US$50,000,000 or
its equivalent. 
  

	 	19.6	Insolvency 

 Any of the following occurs in respect of a member of the Restricted Group:

  

	 	(a)	it is, or is deemed for the purposes of any applicable law to be, unable to pay its debts as they fall due or insolvent; 

  

	 	(b)	it admits its inability to pay its debts as they fall due; 

  

	 	(c)	it suspends making payments on its debts generally or announces an intention to do so; 

  

	 	(d)	by reason of actual or anticipated financial difficulties, it begins negotiations with any creditor for the rescheduling or restructuring of any of its indebtedness; 

 

	 	(e)	the value of its assets is less than its liabilities (taking into account contingent and prospective liabilities); or 

  

	 	(f)	any of its indebtedness is subject to a moratorium. 

  

	 	19.7	Insolvency proceedings 

  

	 	(a)	Except as provided below, any of the following occurs in respect of a member of the Restricted Group: 

  

	 	(i)	any corporate action or legal proceedings is taken with a view to the suspension of payments, a moratorium or a composition, assignment or similar arrangement with any of its creditors; 

 

	 	(ii)	a meeting of its shareholders, directors or other officers resolves to petition for or to file documents with a court or any registrar for, its winding-up, administration or dissolution or any such resolution is passed;

  
 40 

	 	(iii)	any person presents a petition, or files documents with a court or any registrar, for its winding-up, administration, dissolution or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise);

  

	 	(iv)	any Security Interest is enforced over any of its assets having an aggregate value of at least US$50,000,000; 

  

	 	(v)	an order for its winding-up, administration or dissolution is made; 

  

	 	(vi)	any liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator or similar officer is appointed in respect of it or any of its assets; or

  

	 	(vii)	any analogous step or procedure is taken in any jurisdiction. 

  

	 	(b)	Paragraph (a) above does not apply to: 

  

	 	(i)	any step or procedure which is part of a Permitted Transaction; or 

  

	 	(ii)	a petition for winding-up, administration or dissolution which is being contested in good faith and with due diligence and is discharged or struck out within 30 days. 

 

	 	19.8	Creditors’ process 

 Any attachment, sequestration, distress, execution or analogous
event affects any asset(s) of a member of the Restricted Group, having an aggregate value of at least US$50,000,000 which is not discharged within 30 days. 
  

	 	19.9	Cessation of business 

 A member of the Restricted Group ceases, or threatens to cease,
to carry on business except: 
  

	 	(a)	as part of a Permitted Transaction; or 

  

	 	(b)	as a result of any disposal allowed under this Agreement. 

  

	 	19.10	De-listing or suspension of shares trading 

 The shares in the Company cease to be listed
on NASDAQ or trading of the shares in the Company has been suspended for more than five (5) consecutive days on which NASDAQ is generally open for trading and such delisting or suspension has a Material Adverse Effect. 

  
 41 

	 	19.11	Effectiveness of Finance Documents 

  

	 	(a)	It is or becomes unlawful for the Company to perform any of its obligations under the Finance Documents. 

  

	 	(b)	The Company repudiates a Finance Document or evidences an intention to repudiate a Finance Document. 

  

	 	19.12	Material adverse change 

 Any event or series of events occurs which, in the opinion of
the Lender (acting reasonably), would have a Material Adverse Effect. 
  

	 	19.13	Acceleration 

 If an Event of Default is outstanding, the Lender may by notice to the
Company: 
  

	 	(a)	cancel the Commitment (or any part thereof); and/or 

  

	 	(b)	declare that all or part of any amounts outstanding under the Finance Documents are: 

  

	 	(i)	immediately due and payable; and/or 

  

	 	(ii)	payable on demand by the Lender. 

 Any notice given under this Subclause will take effect in
accordance with its terms. 
  

	20.	EVIDENCE AND CALCULATIONS 

  

	 	20.1	Accounts 

 Accounts maintained by the Lender in connection with this Agreement are prima
facie evidence of the matters to which they relate for the purpose of any litigation or arbitration proceedings. 
  

	 	20.2	Certificates and determinations 

 Any certification or determination by the Lender of a
rate or amount under the Finance Documents will be, in the absence of manifest error, conclusive evidence of the matters to which it relates. 
  

	 	20.3	Calculations 

 Any interest or fee accruing under this Agreement accrues from day to day
and is calculated on the basis of the actual number of days elapsed and a year of 360 days or in any case where the London interbank market differs, in accordance with that market practice. 

 

	21.	FEE 

 The Company shall pay to the Lender a front-end fee in an amount equal to
USD600,000 (being 0.3 per cent. of USD200,000,000) within fifteen (15) days of the date of this Agreement or, if earlier, on the Utilisation Date. The front-end fee shall be non-refundable whether or not any amount is drawn hereunder. 

  
 42 

	22.	INDEMNITIES AND BREAK COSTS 

  

	 	22.1	Currency indemnity 

  

	 	(a)	The Company must, as an independent obligation, within five Business Days of demand, indemnify the Lender against any loss or liability which the Lender incurs as a consequence of: 

 

	 	(i)	the Lender receiving an amount in respect of the Company’s liability under the Finance Documents; or 

  

	 	(ii)	that liability being converted into a claim, proof, judgment or order, 

 in a currency other
than the currency in which the amount is expressed to be payable under the relevant Finance Document. 
  

	 	(b)	Unless otherwise required by law, the Company waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency other than that in which it is expressed to be payable.

  

	 	22.2	Other indemnities 

  

	 	(a)	The Company must, within five Business Days of demand, indemnify the Lender (and its officers, employees, agents, delegates and nominees) against any fees, expenses (including those of legal counsel), loss or liability
which the Lender incurs as a consequence of: 

  

	 	(i)	the occurrence of any Event of Default; 

  

	 	(ii)	written information produced or approved by the Company being or being alleged to be misleading or deceptive in any respect; 

  

	 	(iii)	any enquiry, investigation, subpoena (or similar order) or litigation with respect to the Company or with respect to the transactions contemplated or financed under the Finance Documents; 

 

	 	(iv)	any failure by the Company to pay any amount due under a Finance Document on its due date or in the relevant currency; 

  

	 	(v)	(other than by reason of gross negligence or wilful misconduct by the Lender) the Loan not being made after the Request has been delivered for the Loan; or 

 

	 	(vi)	the Loan (or part of the Loan ) not being prepaid in accordance with this Agreement. 

 The
Company’s liability in each case includes any loss or expense on account of funds borrowed, contracted for or utilised to fund any amount payable under any Finance Document or the Loan. 

 

	 	(b)	The Company must, within five Business Days of demand, indemnify the Lender against any loss or liability incurred by the Lender as a result of: 

  
 43 

	 	(i)	investigating any event which the Lender believes to be a Default; or 

  

	 	(ii)	acting or relying on any notice, request or instruction which the Lender believes to be genuine, correct and appropriately authorised. 

 

	 	(c)	The provisions of this Clause 22.2 shall survive the termination of the Finance Documents or the Lender ceasing to be a Party under the Finance Documents. 

 

	 	22.3	Break Costs 

  

	 	(a)	The Company must, within three Business Days of demand, pay to the Lender its Break Costs if the Loan (or any part of it) or an overdue amount is repaid or prepaid otherwise than on the last day of any Term applicable
to it. 

  

	 	(b)	Break Costs are the amount (if any) determined by the Lender by which: 

  

	 	(i)	the interest (excluding the Margin) which the Lender would have received for the period from the date of receipt of the Loan or an overdue amount to the last day of the applicable Term for the Loan or overdue amount if
the principal or overdue amount received had been paid on the last day of that Term; 

 exceeds 

 

	 	(ii)	the amount which the Lender would be able to obtain by placing an amount equal to the amount received by it on deposit with a leading bank in the appropriate interbank market for a period starting on the Business Day
following receipt and ending on the last day of the applicable Term. 

  

	 	(c)	The Lender must supply to the Company details of the amount of any Break Costs claimed by it under this Subclause. 

  

	23.	EXPENSES 

  

	 	23.1	Initial costs 

 The Company must, within five Business Days of demand, pay the Lender the
amount of all out-of-pocket costs and expenses reasonably incurred by it up to an agreed level in connection with the negotiation, preparation, or printing the Finance Documents. 

 

	 	23.2	Subsequent costs 

 The Company must, within five Business Days of demand, pay to the
Lender the amount of all costs and expenses (including reasonable legal fees) reasonably incurred by it in connection with: 
  

	 	(a)	the negotiation, preparation, printing and entry into of any Finance Document (other than a Transfer Certificate) entered into after the date of this Agreement; and 

  
 44 

	 	(b)	any amendment, waiver or consent requested by or on behalf of the Company or specifically allowed by a Finance Document. 

  

	 	23.3	Enforcement costs 

 The Company must, within five Business Days of demand, pay to the
Lender the amount of all costs and expenses (including legal fees) incurred by it in connection with the enforcement of, or the preservation of any rights under, any Finance Document. 

 

	24.	AMENDMENTS AND WAIVERS 

  

	 	24.1	Procedure 

  

	 	(a)	Unless otherwise specified in the Finance Documents, any term of the Finance Documents may be amended or waived only with the consent of the Company and the Lender and any such amendment or waiver will be binding on all
the Parties. 

  

	 	24.2	Change of currency 

 If a change in any currency of a country occurs (including where
there is more than one currency or currency unit recognised at the same time as the lawful currency of a country), the Finance Documents will be amended to the extent the Lender reasonably determines after consultation with the Company is necessary
to reflect the change. 
  

	 	24.3	Waivers and remedies cumulative 

 The rights of the Lender under the Finance Documents:

  

	 	(a)	may be exercised as often as necessary; 

  

	 	(b)	are cumulative and not exclusive of its rights under the general law; and 

  

	 	(c)	may be waived only in writing and specifically. 

 Delay in exercising or non-exercise of any
right is not a waiver of that right. 
  

	25.	CHANGES TO THE PARTIES 

  

	 	25.1	Assignments and transfers by the Company 

 The Company may not assign or transfer any of
its rights and obligations under the Finance Documents without the prior consent of the Lender. 
  

	 	25.2	Assignments and transfers by Lender 

 Subject to the following provisions of this Clause
25, the Lender (the Existing Lender) may at any time: 
  

	 	(a)	assign any of its rights; or 

  
 45 

	 	(b)	transfer by way of novation any of its rights or obligations under this Agreement, 

 to another
bank or financial institution (the New Lender) without the consent of the Company provided that the Existing Lender has given the Company no less than 15 days prior written notice of such assignment or transfer. 

 

	 	25.3	Other conditions to assignment or transfer 

  

	 	(a)	The Lender is not obliged to enter into a Transfer Certificate or otherwise give effect to an assignment or transfer until it has completed all customer due diligence or any “know your customer” or other
checks in relation to any relevant person or other legal requirements to its satisfaction. 

  

	 	(b)	any reference in this Agreement to the Lender includes a New Lender but excludes a Lender if no amount is or may be owed to or by it under this Agreement. 

 

	 	25.4	Procedure for transfer using a Transfer Certificate 

  

	 	(a)	In this Subclause: 

 Transfer Date means, in relation to a transfer, the later of: 

 

	 	(i)	the proposed Transfer Date specified in that Transfer Certificate; and 

  

	 	(ii)	the date on which the Existing Lender enters into that Transfer Certificate. 

  

	 	(b)	A transfer of rights or obligations using a Transfer Certificate will be effective if: 

  

	 	(i)	the New Lender delivers to the Existing Lender a duly completed Transfer Certificate; and 

  

	 	(ii)	the Existing Lender enters into it. 

  

	 	(c)	On the Transfer Date: 

  

	 	(i)	the New Lender will assume the rights and obligations of the Existing Lender expressed to be the subject of the novation in the Transfer Certificate in substitution for the Existing Lender; 

 

	 	(ii)	the Existing Lender will be released from those obligations and cease to have those rights; and 

  

	 	(iii)	the New Lender will become the Lender under this Agreement and be bound by the terms of this Agreement as Lender. 

  

	 	(d)	The Existing Lender shall, subject to subclause 25.4, enter into a Transfer Certificate delivered to it and which appears on its face to be in order as soon as reasonably practicable and, as soon as reasonably
practicable after it has entered into a Transfer Certificate, send a copy of that Transfer Certificate to the Company. 

  
 46 

	 	25.5	Original consents and waivers 

 The New Lender shall be bound by any consent, waiver,
election or decision given or made by the Existing Lender under or pursuant to any Finance Document prior to the coming into effect of the relevant assignment or transfer to that New Lender. 

 

	 	25.6	Limitation of responsibility of Existing Lender 

  

	 	(a)	Unless expressly agreed to the contrary, the Existing Lender makes no representation or warranty and assumes no responsibility to the New Lender for: 

 

	 	(i)	the financial condition of the Company; or 

  

	 	(ii)	the legality, validity, effectiveness, enforceability, adequacy, accuracy, completeness or performance of: 

  

	 	(A)	any Finance Document or any other document; 

  

	 	(B)	any statement or information (whether written or oral) made in or supplied in connection with any Finance Document, or 

  

	 	(C)	any observance by the Company of its obligations under any Finance Document or other document, 

and any representations or warranties implied by law are excluded. 
  

	 	(b)	The New Lender confirms to the Existing Lender that it: 

  

	 	(i)	has made, and will continue to make, its own independent appraisal of all risks arising under or in connection with the Finance Documents (including the financial condition and affairs of the Company and its related
entities and the nature and extent of any recourse against any Party or its assets) in connection with its participation in this Agreement; 

  

	 	(ii)	has not relied on any information supplied to it by the Existing Lender in connection with any Finance Document; 

  

	 	(iii)	has conducted its own investigation in connection with the Finance Documents and has not relied upon the Existing Lender to conduct any due diligence investigation on its behalf; 

 

	 	(iv)	has access to all information that it believes is necessary or appropriate in connection with its participation of this Agreement and it is able to obtain or access business and financial information without undue
difficulty; 

  
 47 

	 	(v)	has consulted its own independent advisors or otherwise has satisfied itself concerning, without limitation, the tax, legal, currency and other economic considerations related to its participation in this Agreement, and
has only relied on the advice of, or has only consulted with, such independent advisers; 

  

	 	(vi)	has not relied and will not rely on any investigation or due diligence that the Existing Lender or any of its Affiliates or employees or any person acting on behalf of the Existing Lender may have conducted in
connection with the Finance Documents (including the financial condition and affairs of the Company and its related entities and the nature and extent of any recourse against any Party or its assets), and none of such persons has made any
representation, warranty or recommendation to that New Lender, express or implied, in connection with the Finance Documents (including the financial condition and affairs of the Company and its related entities and the nature and extent of any
recourse against any Party or its assets) or the accuracy, completeness or adequacy of any information that New Lender obtain from public sources or from the Company in any form (including, without limitation, oral statements, written materials and
electronic communications and data of any kind); and 

  

	 	(vii)	will not hold the Existing Lender, its Affiliates or the officers, directors or employees responsible for any misstatements in or omissions from information it obtains from public sources or from the Company in any form
(including, without limitation, oral statements, written materials and electronic communications and data of any kind). 

  

	 	(c)	Nothing in any Finance Document requires the Existing Lender to: 

  

	 	(i)	accept a re-transfer from the New Lender of any of the rights and obligations assigned or transferred under this Clause; or 

  

	 	(ii)	support any losses incurred by the New Lender by reason of the non-performance by the Company of its obligations under any Finance Document or otherwise. 

 

	 	25.7	Costs resulting from change of Lender or Facility Office 

 If: 

 

	 	(a)	the Lender assigns or transfers any of its rights and obligations under the Finance Documents or changes its Facility Office; and 

	 	(b)	as a result of circumstances existing at the date the assignment, transfer or change occurs, the Company would be obliged to pay a Tax Payment or an Increased Cost, 

then the Company needs only pay that Tax Payment or Increased Cost to the same extent that it would have been obliged to if no assignment,
transfer or change had occurred provided that this clause does not apply to the extent that the payment under Clause 11 (Taxes) relates to a FATCA Deduction. 

  
 48 

	26.	DISCLOSURE OF INFORMATION 

  

	 	(a)	The Lender must keep confidential any information supplied to it by or on behalf of the Company in connection with the Finance Documents. However, the Lender is entitled to disclose information: 

 

	 	(i)	which is publicly available, other than as a result of a breach by the Lender of this Clause; 

  

	 	(ii)	to the extent required for the purpose of any legal or arbitration proceedings; 

  

	 	(iii)	to the extent required to be disclosed under any Law or Regulation; 

  

	 	(iv)	to a governmental, banking, taxation, other regulatory authority or any other Authority; 

  

	 	(v)	to its professional advisers or any rating agency (provided that such person is under a duty of confidentiality to the Lender); 

  

	 	(vi)	to the extent allowed under paragraph (b) below; or 

  

	 	(vii)	with the agreement of the Company. 

  

	 	(b)	The Lender may disclose to an Affiliate, its head office and any representative or other branches or any person (a third party) with (or through) whom the Lender enters into (or may enter into) any kind of transfer,
participation or hedge agreement in relation to this Agreement or any other transaction under which payments are to be made by reference to this Agreement or the Company: 

 

	 	(i)	a copy of any Finance Document; and 

  

	 	(ii)	any information which the Lender has acquired under or in connection with any Finance Document. 

However, before a third party may receive any confidential information under this paragraph (b), it must have entered into a Confidentiality
Undertaking. 
  

	 	(c)	This Clause 26 supersedes any previous confidentiality undertaking given by the Lender in connection with this Agreement prior to it becoming a Party. 

 

	27.	SET-OFF 

 The Lender may, for so long as an Event of Default is outstanding, set off any
matured obligation owed to it by the Company under the Finance Documents against any obligation (whether or not matured) owed by the Lender to the Company, regardless of the place of payment, booking branch or currency of either obligation. If the
obligations are in different currencies, the Lender may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. 

  
 49 

	28.	SEVERABILITY 

 If a term of a Finance Document is or becomes illegal, invalid or
unenforceable in any respect under any jurisdiction, that will not affect: 
  

	 	(a)	the legality, validity or enforceability in that jurisdiction of any other term of the Finance Documents; or 

  

	 	(b)	the legality, validity or enforceability in other jurisdictions of that or any other term of the Finance Documents. 

  

	29.	COUNTERPARTS 

 Each Finance Document may be executed in any number of counterparts. This
has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document. 
  

	30.	NOTICES 

  

	 	30.1	In writing 

  

	 	(a)	Any communication in connection with a Finance Document must be in writing and, unless otherwise stated, may be given: 

  

	 	(i)	in person, by post or fax; or 

  

	 	(ii)	to the extent agreed by the Parties making and receiving communication, by e-mail or other electronic communication. 

  

	 	(b)	For the purpose of the Finance Documents, an electronic communication will be treated as being in writing. 

  

	 	(c)	Unless it is agreed to the contrary, any consent or agreement required under a Finance Document must be given in writing. 

  

	 	30.2	Contact details 

  

	 	(a)	Except as provided below, the contact details of each Party for all communications in connection with the Finance Documents are those notified by that Party for this purpose to the any Party under this Agreement on or
before the date it becomes a Party. 

  

	 	(b)	The contact details of the Company for this purpose are: 

  

			
	Address:	  	Baidu Campus No. 10 Shangdi 10th Street, Haidian District, Beijing 100085, PRC
	Fax number:	  	+86 10 5992 6613
	E-mail:	  	zhoumao@baidu.com
	Attention:	  	Ms. Zhou Mao

  
 50 

	 	(c)	The contact details of the Lender for this purpose are: 

  

			
	Address:	  	Banking (LLC4 Team), Hong Kong, Global Banking and Markets, Level 16, HSBC Main Building, 1 Queen’s Road Central, Hong Kong
	Fax number:	  	+852 3418 7093
	E-mail:	  	forrestzhang@hsbc.com.hk / anqidong@hsbc.com.hk
	Attention:	  	Mr. Zhengmin (Forrest) Zhang / Ms. Anqi Dong

 Any Party may change its contact details by giving five Business Days’ notice to the other Party. 

 

	 	(d)	Where a Party nominates a particular department or officer to receive a communication, a communication will not be effective if it fails to specify that department or officer. 

 

	 	30.3	Effectiveness 

  

	 	(a)	Except as provided below, any communication in connection with a Finance Document will be deemed to be given as follows: 

  

	 	(i)	if delivered in person, at the time of delivery; 

  

	 	(ii)	if posted, five Business Days after being deposited in the post, postage prepaid, in a correctly addressed envelope; 

  

	 	(iii)	if by fax, when received in legible form; and 

  

	 	(iv)	if by e-mail or any other electronic communication, when received in legible form. 

  

	 	(b)	A communication given under paragraph (a) above but received on a non-working day or after business hours in the place of receipt will only be deemed to be given on the next working day in that place. 

 

	 	(c)	A communication to the Lender will only be effective on actual receipt by it. 

  

	31.	LANGUAGE 

  

	 	(a)	Any notice given in connection with a Finance Document must be in English. 

  

	 	(b)	Any other document provided in connection with a Finance Document must be: 

  

	 	(i)	in English; or 

  

	 	(ii)	(unless the Lender otherwise agrees) accompanied by a certified English translation. In this case, the English translation prevails unless the document is a statutory or other official document. 

  
 51 

	32.	GOVERNING LAW 

 This Agreement is governed by Hong Kong law. 

 

	33.	ENFORCEMENT 

  

	 	33.1	Jurisdiction 

  

	 	(a)	The Hong Kong courts have exclusive jurisdiction to settle any dispute including a dispute relating to any non-contractual obligation arising out of or in connection with any Finance Document. 

 

	 	(b)	The Hong Kong courts are the most appropriate and convenient courts to settle any such dispute in connection with any Finance Document. The Company agrees not to argue to the contrary and waives objection to those
courts on the grounds of inconvenient forum or otherwise in relation to proceedings in connection with any Finance Document. 

  

	 	(c)	This Clause is for the benefit of the Lender only. To the extent allowed by law, the Lender may take: 

  

	 	(i)	proceedings in any other court; and 

  

	 	(ii)	concurrent proceedings in any number of jurisdictions. 

  

	 	(d)	References in this Clause 33 to a dispute in connection with a Finance Document include any dispute as to the existence, validity or termination of that Finance Document. 

 

	 	33.2	Service of process 

  

	 	(a)	The Company irrevocably appoints Messrs. Li & Partners of 22nd Floor, World-Wide House, 19, Des Voeux Road, Central, Hong Kong as its agent under the Finance Documents for service of process in any proceedings
before the Hong Kong courts in connection with any Finance Document. 

  

	 	(b)	If any person appointed as process agent under this Clause is unable for any reason to so act, the Company must immediately (in any event within 14 days of the event taking place) appoint another agent on terms
acceptable to the Lender. Failing this, the Lender may appoint another process agent for this purpose. 

  

	 	(c)	The Company agrees that failure by a process agent to notify it of any process will not invalidate the relevant proceedings. 

  

	 	(d)	This Clause does not affect any other method of service allowed by law. 

  

	 	33.3	Waiver of immunity 

 The Company irrevocably and unconditionally: 

 

	 	(a)	agrees not to claim any immunity from proceedings brought by the Lender against the Company in relation to a Finance Document and to ensure that no such claim is made on its behalf; 

  
 52 

	 	(b)	consents generally to the giving of any relief or the issue of any process in connection with those proceedings; and 

  

	 	(c)	waives all rights of immunity in respect of it or its assets. 

 This Agreement has been entered into on the
date stated at the beginning of this Agreement. 

  
 53 

 SCHEDULE 1 

CONDITIONS PRECEDENT DOCUMENTS 

PART 1 
 CONDITIONS
PRECEDENT 
 Corporate documentation 
  

	1.	A copy of the constitutional documents of the Company. 

  

	2.	A copy of a resolution of the board of directors of the Company approving the terms of, and the transactions contemplated by, each Finance Document to which it is a party. 

 

	3.	A copy of the certificate of good standing of the Company issued by the Registrar of Companies of the Cayman Islands within one month of the date of this Agreement. 

 

	4.	A copy of the certificate of incumbency of the Company issued by its Cayman Islands registered office provider within one month of the date of this Agreement. 

 

	5.	A copy of the Original Financial Statements. 

  

	6.	A Director’s Certificate for the Company substantially in the form of Part 2 of this Schedule. 

  

	7.	Evidence that the agent of the Company under the Finance Documents for service of process in Hong Kong has accepted its appointment. 

Legal opinions 
  

	8.	A legal opinion of Mayer Brown JSM, legal advisers in Hong Kong to the Lender, obtained at the cost of the Lender, substantially in the form distributed to the Lender prior to the signing of this Agreement.

  

	9.	A legal opinion of Maples and Calder, legal advisers in the Cayman Islands to the Lender, obtained at the cost of the Lender, substantially in the form distributed to the Lender prior to the signing of this Agreement.

 Other documents and evidence 
  

	10.	A copy of any other authorisation or other document, opinion or assurance which the Lender considers to be necessary (and which it has notified the Company accordingly in writing) in connection with the entry into and
performance of, and the transactions contemplated by, any Finance Document or for the validity and enforceability of any Finance Document. 

  

	11.	Evidence that the fees, costs and expenses then due from the Company pursuant to Clause 21 (Fee) and Clause 23 (Expenses) have been paid or will be paid by the Utilisation Date. 

  
 54 

 PART 2 

FORM OF DIRECTOR’S CERTIFICATE 
  

	To:	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED 

 BAIDU, INC. - US$200,000,000 Facility
Agreement 
 dated      August, 2015 (the Agreement) 

I refer to the Agreement. Terms defined in the Agreement have, unless defined in this certificate, the same meaning when used in this certificate. 

I am a director of Baidu, Inc. (the Company), an exempt company incorporated with limited liability in the Cayman Islands with registered number 96019.
I am authorised to give this certificate and certify as follows: 
  

	1.	Each [original] and copy document delivered by the Company to the Lender under Part 1 of Schedule 1 (Conditions precedent documents) to the Agreement (including the documents listed below and attached to this
certificate) is true, complete and in full force and effect on the date of this certificate: 

  

	 	(a)	the Third Amended and Restated Memorandum and Articles of Association of the Company adopted on 16 December 2008 (the Memorandum and Articles); 

 

	 	(b)	the Certificate of Incorporation of the Company dated 18 January 2000; 

  

	 	(c)	the Certificate of Incorporation on Change of Name of Company dated 2 January 2009; 

  

	 	(d)	the Certificate of Good Standing of the Company dated [●] 2015; 

  

	 	(e)	the Certificate of Incumbency of the Company dated [●] 2015; and 

  

	 	(f)	the written resolutions of the Board of Directors of the Company passed on [    ]. 

  

	2.	Borrowing the Commitment will not cause any borrowing or similar limit binding on the Company under the Memorandum or Articles or other constitutional documents or any law applicable to it to be exceeded.

  

	3.	Each resolution passed by way of written resolutions referred to in 1(f) above is in full force and effect without modification. 

  

	4.	The resolutions passed by way of written resolutions referred to in 1(f) above constitute all corporate action necessary on the part of the Company to: 

 

	 	(a)	approve the terms of and transactions contemplated by the Finance Documents; and 

  

	 	(b)	authorise the signing of, any communications and/or other action under or in connection with, the Finance Documents. 

  
 55 

	5.	The following is a complete list of all persons who are the Directors and Company Secretary of the Company as at the date of this Certificate and who were the Directors and Company Secretary on the date of the passing
of the written resolutions referred to in 1(f) above. 

 [    ] 

 

	6.	Each person listed below: 

  

	 	(a)	occupies the position stated against his name (and occupied that position on the date each Finance Document was signed by him); 

  

	 	(b)	is the person duly authorised in the resolutions adopted at the meeting referred to in l(f) above to sign the Finance Documents (and any other document in connection with the Finance Documents) on behalf of the Company;
and 

  

	 	(c)	has his true signature appearing opposite his name. 

  

					
	Name	  	Position	  	Specimen Signature

  

	7.	Unless we notify you to the contrary in writing, you may assume that this Certificate remains true and correct up until the date of the first Utilisation by the Company under the Agreement. 

 

	
	 For
 Baidu, Inc.

	   

	Director

  
 56 

 SCHEDULE 2 

FORM OF REQUEST 
  

	To:	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED 

 Banking (LLC4 Team), Hong Kong, Global
Banking and Markets 
 Level 16, HSBC Main Building 

1 Queen’s Road Central 
 Hong
Kong 
 Attention: Mr. Zhengmin (Forrest) Zhang / Ms. Anqi Dong 

From:    BAIDU, INC. 

Date:    [    ] 

BAIDU, INC.-US$200,000,000 Facility Agreement 

dated      August, 2015 (the Agreement) 
  

	1.	We refer to the Agreement. This is a Request. Terms defined in the Agreement have the same meaning in this Request. 

  

	2.	We wish to borrow the Loan on the following terms: 

  

	 	(a)	Utilisation Date: [    ]; 

  

	 	(b)	Amount: [    ]; and 

  

	 	(c)	Term: [Three months] / [24 months and we confirm that the Cost of Funds to the Lender of funding the Loan for a Term of 24 months is acceptable to us]. 

 

	3.	The proceeds of the Loan should be credited to: [accounts (including accounts for settlement of fees and expenses)]. 

  

	4.	We confirm that each condition precedent specified in Clause 4.2 (Further conditions precedent) under the Agreement which must be satisfied on the date of this Request is so satisfied. 

 

	5.	This Request is irrevocable. 

  

	
	 By:
 BAIDU, INC.

	   

	Name:
	[Director]

  
 57 

 SCHEDULE 3 

FORM OF TRANSFER CERTIFICATE 
  

	To:	(the Existing Lender) 

 Attention: [    ] 

From: [NEW LENDER] (the New Lender) 
 Date:
[    ] 
 BAIDU, INC. - US$200,000,000 Facility Agreement 

dated      August, 2015 (the Agreement) 

We refer to the Agreement. This is a Transfer Certificate. Terms defined in the Agreement have, unless defined in this certificate, the same meaning when used
in this Transfer Certificate. 
  

	1.	The Existing Lender transfers by novation to the New Lender the Existing Lender’s rights and obligations referred to in the Schedule below in accordance with the terms of the Agreement. 

 

	2.	The proposed Transfer Date is [    ]. 

  

	3.	The administrative details of the New Lender for the purposes of the Agreement are set out in the Schedule. 

  

	4.	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations in respect of this Transfer Certificate contained in the Agreement. 

In particular, the New Lender expressly acknowledges and confirms that: 

 

	 	(a)	the Existing Lender makes no representation or warranty and assumes no responsibility to the New Lender for: 

  

	 	(i)	the financial condition of the Company; or 

  

	 	(ii)	the legality, validity, effectiveness, enforceability, adequacy, accuracy, completeness or performance of: 

  

	 	(A)	any Finance Document or any other document; 

  

	 	(B)	any statement or information (whether written or oral) made in or supplied in connection with any Finance Document, or 

  

	 	(C)	any observance by the Company of its obligations under any Finance Document or other document, 

and any representations or warranties implied by law are excluded; and 

  
 58 

	 	(b)	it: 

  

	 	(i)	has made, and will continue to make, its own independent appraisal of all risks arising under or in connection with the Finance Documents (including the financial condition and affairs of the Company and its related
entities and the nature and extent of any recourse against any Party or its assets) in connection with its participation in the Agreement; 

  

	 	(ii)	has not relied on any information supplied to it by the Existing Lender in connection with any Finance Document; 

  

	 	(iii)	has conducted its own investigation in connection with the Finance Documents and has not relied upon the Existing Lender to conduct any due diligence investigation on its behalf; 

 

	 	(iv)	has access to all information that it believes is necessary or appropriate in connection with its participation of the Agreement and it is able to obtain or access business and financial information without undue
difficulty; 

  

	 	(v)	has consulted its own independent advisors or otherwise has satisfied itself concerning, without limitation, the tax, legal, currency and other economic considerations related to its participation in the Agreement, and
has only relied on the advice of, or has only consulted with, such independent advisers; 

  

	 	(vi)	has not relied and will not rely on any investigation or due diligence that the Existing Lender or any of its Affiliates or employees or any person acting on behalf of the Existing Lender may have conducted in
connection with the Finance Documents (including the financial condition and affairs of the Company and its related entities and the nature and extent of any recourse against any Party or its assets), and none of such persons has made any
representation, warranty or recommendation to the New Lender, express or implied, in connection with the Finance Documents (including the financial condition and affairs of the Company and its related entities and the nature and extent of any
recourse against any Party or its assets) or the accuracy, completeness or adequacy of any information the New Lender obtain from public sources or from the Company in any form (including, without limitation, oral statements, written materials and
electronic communications and data of any kind); and 

  

	 	(vii)	will not hold the Existing Lender, its Affiliates or the officers, directors or employees responsible for any misstatements in or omissions from information it obtains from public sources or from the Company in any form
(including, without limitation, oral statements, written materials and electronic communications and data of any kind). 

  
 59 

	5.	This Transfer Certificate may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of the Transfer Certificate. 

 

	6.	This Transfer Certificate and any non-contractual obligations arising out of or in connection with it are governed by Hong Kong law. 

  
 60 

 THE SCHEDULE 

Rights and obligations to be transferred by novation 

[insert relevant details, including applicable Commitment (or part)] 

Administrative details of the New Lender 

[insert details of Facility Office, address for notices, fax number and attention details and account details for payment etc.] 

 

			
	[EXISTING LENDER]	  	[NEW LENDER]
		
	By:	  	By:

 The Transfer Date is confirmed by the Lender as [    ]. 

[●] 
 By: 

Note: The New Lender is alone responsible for checking whether any further formalities should be complied with. An assignment may give rise to a stamp duty
or transfer tax issues. 

  
 61 

 SCHEDULE 4 

FORM OF COMPLIANCE CERTIFICATE 
  

	To:	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED as Lender 

 From: BAIDU, INC. 

Date: [    ] 
 BAIDU, INC.
- US$200,000,000 Facility Agreement 
 dated [    ] August, 2015 (the Agreement) 

 

	1.	We refer to the Agreement. This is a Compliance Certificate. Terms defined in the Agreement have the same meanings in this Compliance Certificate. 

 

	2.	We confirm that as at [relevant testing date]: 

  

	 	(a)	Consolidated Tangible Net Worth is [    ]; and 

  

	 	(b)	Consolidated Total Borrowings is [    ] and therefore, Consolidated Total Borrowings is [    ] per cent. ([    ]%) of Consolidated Tangible Net Worth.

  

	 	(c)	Adjusted Consolidated EBITDA for the relevant Measurement Period is [    ] and therefore, Consolidated Total Borrowings at the end of the relevant Measurement Period is [    ]
times of Adjusted Consolidated EBITDA for the relevant Measurement Period. 

  

	 	(d)	Consolidated Cash Balance is [    ] and therefore Consolidated Cash Balance is not less than Consolidated Total Borrowings as stated in (b) above. 

 

	3.	We set out below calculations establishing the figures in paragraph 2 above: 

[    ] 
  

	4.	We confirm that as at [relevant testing date] [no Default is outstanding]/[the following Default[s] [is/are] outstanding and the following steps are being taken to remedy [it/them]: 

[    ]]. 
 BAIDU, INC.

 By: 

  
 62 

 SIGNATORIES 

Company 
 BAIDU, INC. 

By: /s/ Robin Yanhong Li 
 Lender 

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED 

By: 
 /s/ Taisy Liu 

Managing Director, Co-Head of Banking, China 

  
 63EX-4.1

 Exhibit 4.1 
  

 
  

TAX ASSET PROTECTION 

RIGHTS AGREEMENT 

DATED AS OF APRIL 7, 2016 

BY AND BETWEEN 

KAISER ALUMINUM CORPORATION 

AND 

COMPUTERSHARE INC., 

AS RIGHTS AGENT 
  

 
  

 TABLE OF CONTENTS 
  

							
	1.	 	 Certain Definitions
	  	 	1	  
			
	2.	 	 Appointment of Rights Agent
	  	 	6	  
			
	3.	 	 Issue of Right Certificates
	  	 	6	  
			
	4.	 	 Form of Right Certificates
	  	 	8	  
			
	5.	 	 Countersignature and Registration
	  	 	8	  
			
	6.	 	 Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or
Stolen Right Certificates
	  	 	9	  
			
	7.	 	 Exercise of Rights; Purchase Price; Expiration Date of Rights
	  	 	9	  
			
	8.	 	 Cancellation and Destruction of Right Certificates
	  	 	11	  
			
	9.	 	 Company Covenants Concerning Securities and Rights
	  	 	11	  
			
	10.	 	 Record Date
	  	 	13	  
			
	11.	 	 Adjustment of Purchase Price, Number and Kind of Securities or Number of Rights
	  	 	13	  
			
	12.	 	 Certificate of Adjusted Purchase Price or Number of Securities
	  	 	20	  
			
	13.	 	 Consolidation, Merger or Sale or Transfer of Assets or Earning Power
	  	 	20	  
			
	14.	 	 Fractional Rights and Fractional Securities
	  	 	23	  
			
	15.	 	 Rights of Action
	  	 	25	  
			
	16.	 	 Agreement of Rights Holders
	  	 	25	  
			
	17.	 	 Right Certificate Holder Not Deemed a Stockholder
	  	 	26	  
			
	18.	 	 Concerning the Rights Agent
	  	 	26	  
			
	19.	 	 Merger or Consolidation or Change of Name of Rights Agent
	  	 	27	  
			
	20.	 	 Duties of Rights Agent
	  	 	27	  
			
	21.	 	 Change of Rights Agent
	  	 	29	  
			
	22.	 	 Issuance of New Right Certificates
	  	 	30	  
			
	23.	 	 Redemption
	  	 	31	  
			
	24.	 	 Exchange
	  	 	31	  
			
	25.	 	 Notice of Certain Events
	  	 	33	  
			
	26.	 	 Notices
	  	 	34	  
			
	27.	 	 Supplements and Amendments
	  	 	34	  
			
	28.	 	 Successors; Certain Covenants
	  	 	35	  
			
	29.	 	 Benefits of This Agreement
	  	 	35	  
			
	30.	 	 Governing Law
	  	 	35	  

  
 i 

							
			
	31.	 	 Severability
	  	 	35	  
			
	32.	 	 Descriptive Headings, Etc
	  	 	36	  
			
	33.	 	 Determinations and Actions by the Board
	  	 	36	  
			
	34.	 	 Process to Seek Exemption
	  	 	36	  
			
	35.	 	 Suspension of Exercisability or Exchangeability
	  	 	38	  
			
	36.	 	 Effective Time
	  	 	38	  
			
	37.	 	 Counterparts
	  	 	38	  
			
	38.	 	 Force Majeure
	  	 	38	  
		
	Exhibit A	  	 	A-1	  
		
	Exhibit B	  	 	B-1	  
		
	Exhibit C	  	 	C-1	  

  
 ii 

 TAX ASSET PROTECTION 

RIGHTS AGREEMENT 
 This Tax
Asset Protection Rights Agreement, dated as of April 7, 2016 (this “Agreement”), is made and entered into by and between Kaiser Aluminum Corporation, a Delaware corporation (the “Company”), and
Computershare Inc., a Delaware corporation, as Rights Agent (the “Rights Agent”). 
 RECITALS 

WHEREAS, (i) the Company has generated Tax Benefits (as hereinafter defined) for United States federal income tax purposes;
(ii) the Company desires to avoid an “ownership change” with the meaning of Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), and related Treasury Regulations (as hereinafter
defined) in order to preserve the ability to fully utilize such Tax Benefits; and (iii) in furtherance of such objective, the Company desires to enter into this Agreement; and 

WHEREAS, on April 7, 2016 the Board of Directors of the Company authorized and declared a dividend distribution of one
right (a “Right”) in respect of each of the Company’s Common Shares (as hereinafter defined) outstanding as of the Close of Business (as hereinafter defined) on April 22, 2016 (the “Record
Date”), each Right initially representing the right to purchase one one-hundredth of a Preferred Share (as hereinafter defined), on the terms and subject to the conditions herein set forth, and further authorized and directed the
issuance of one Right (subject to adjustment as provided herein) with respect to each Common Share issued or delivered by the Company (whether originally issued or delivered from the Company’s treasury) after the Record Date but prior to the
earlier of the Distribution Date (as hereinafter defined) and the Expiration Date (as hereinafter defined) or as provided in Section 22. 

NOW, THEREFORE, in consideration of the mutual agreements herein set forth, the parties hereto hereby agree as follows: 

1. Certain Definitions. For purposes of this Agreement, the following terms have the meanings indicated: 

(a) “Acquiring Person” means any Person (other than the Company, any Related Person or any Exempt
Person) who or which, together with all Affiliates and Associates of such Person, is or becomes the Beneficial Owner of 4.99% or more of the then-outstanding Common Shares; provided, however, that (i) any Person who would
otherwise constitute an Acquiring Person as of 4:00 p.m., New York City time, on the date of this Agreement (the “Effective Time”) will not be deemed to be an Acquiring Person for any purpose of this Agreement unless and
until such time as (A) such Person or any Affiliate or Associate of such Person thereafter becomes the Beneficial Owner of any additional Common Shares, other than (1) pursuant to any agreement or regular-way purchase order for Common
Shares that is in effect on or prior to the Effective Time and consummated in accordance with its terms after the Effective Time or (2) as a result of a stock dividend, rights dividend, stock split or similar transaction effected by the Company
in which all holders of Common Shares are treated equally, or (B) any other Person who is the Beneficial Owner of Common Shares becomes an Affiliate or Associate of such  

 
Person, provided that the exclusion in this clause (i) shall cease to apply with respect to any Person at such time as such Person, together with all Affiliates and Associates of such
Person, ceases to Beneficially Own 4.99% or more of the then-outstanding Common Shares, (ii) a Person will not be deemed to have become an Acquiring Person solely as a result of a reduction in the number of Common Shares outstanding unless and
until such time as (A) such Person or any Affiliate or Associate of such Person thereafter becomes the Beneficial Owner of any additional Common Shares, other than as a result of a stock dividend, stock split or similar transaction effected by
the Company in which all holders of Common Shares are treated equally, or (B) any other Person who is the Beneficial Owner of Common Shares thereafter becomes an Affiliate or Associate of such Person, and in either such case, such Person,
together with all Affiliates and Associates of such Person, shall thereafter be the Beneficial Owner of 4.99% or more of the outstanding Common Shares and (iii) a Person will not be deemed to have become an Acquiring Person solely as a result
of an Exempt Transaction unless and until such time as (A) such Person or any Affiliate or Associate of such Person thereafter becomes the Beneficial Owner of any additional Common Shares, other than as a result of a stock dividend, rights
dividend, stock split or similar transaction effected by the Company in which all holders of Common Shares are treated equally, or (B) any other Person who is the Beneficial Owner of Common Shares thereafter becomes an Affiliate or Associate of
such Person, and in either such case, such Person, together with all Affiliates and Associates of such Person, shall thereafter be the Beneficial Owner of 4.99% or more of the outstanding Common Shares. Notwithstanding the foregoing, if (1) the
Board of Directors of the Company determines in good faith that a Person who would otherwise be an “Acquiring Person” as defined pursuant to the foregoing provisions of this Section 1(a), has become such inadvertently and
(2) such Person has divested, divests as promptly as practicable or agrees in writing with the Company to divest, a sufficient number of Common Shares so that such Person is not or would no longer be an “Acquiring Person” as defined
pursuant to the foregoing provisions of this Section 1(a), then such Person shall not be deemed to be an “Acquiring Person” for any purposes of this Agreement. 

(b) “Affiliate” and “Associate” mean, with respect to any Person, any other Person (other than
a Related Person or an Exempt Person) whose Common Shares would be deemed constructively owned by such first Person, owned by a single “entity” as defined in Section 1.382-3(a)(1) of the Treasury Regulations, or otherwise aggregated
with Common Shares owned by such first Person pursuant to the provisions of the Code or the Treasury Regulations, provided, however, that a Person will not be deemed to be the Affiliate or Associate of another Person solely because
either or both Persons are or were directors of the Company. 
 (c) “Agreement” has the meaning set
forth in the Preamble to this Agreement. 
 (d) A Person will be deemed the “Beneficial
Owner” of, and to “Beneficially Own,” any securities which such Person directly owns or would be deemed to constructively own, or which otherwise would be aggregated with securities owned by such Person, pursuant
to Section 382 of the Code, or any successor or replacement provision, and the Treasury Regulations promulgated thereunder. 

(e) “Business Day” means any day other than a Saturday, Sunday or a day on which banking institutions in the State of
New York or New Jersey are authorized or obligated by law or executive order to close. 

  
 2 

 (f) “Close of Business” on any given date means 5:00 p.m.,
New York City time, on such date; provided, however, that if such date is not a Business Day, it means 5:00 p.m., New York City time, on the next succeeding Business Day. 

(g) “Code” has the meaning set forth in the Recitals to this Agreement. 

(h) “Common Shares” when used with reference to the Company means the shares of Common Stock, par value
$0.01 per share, of the Company; provided, however, that if the Company is the continuing or surviving corporation in a transaction described in Section 13(a)(ii), “Common Shares” when used with reference to the Company
means shares of the capital stock or units of the equity interests with the greatest aggregate voting power of the Company. “Common Shares” when used with reference to any corporation or other legal entity other than the Company, including
an Issuer, means shares of the capital stock or units of the equity interests with the greatest aggregate voting power of such corporation or other legal entity. 

(i) “Company” has the meaning set forth in the Preamble to this Agreement. 

(j) “current market price” has the meaning set forth in Section 11(d)(i). 

(k) “Distribution Date” means the earlier of: (i) the Close of Business on the tenth calendar day following the
Share Acquisition Date (or, if the tenth calendar day following the Share Acquisition Date occurs before the Record Date, the Close of Business on the Record Date), or (ii) the Close of Business on the tenth Business Day (or, unless the
Distribution Date shall have previously occurred, such later date as may be specified by the Board of Directors of the Company) after the commencement of a tender or exchange offer by any Person (other than the Company, any Related Person or any
Exempt Person), if upon the consummation thereof such Person would be the Beneficial Owner of 4.99% or more of the then-outstanding Common Shares. 

(l) “equivalent common shares” has the meaning set forth in Section 11(a)(iii). 

(m) “equivalent preferred shares” has the meaning set forth in Section 11(a)(iii). 

(n) “Effective Time” has the meaning set forth in Section 1(a). 

(o) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

(p) “Exchange Ratio” has the meaning set forth in Section 24(a). 

(q) “Exemption Request” has the meaning set forth in Section 34(a). 

(r) “Exempt Person” means a Person whose Beneficial Ownership (together with all Affiliates and
Associates of such Person) of 4.99% or more of the then-outstanding Common Shares (but less than 15% of the then-outstanding Common Shares) will not, as determined by the Board of Directors of the Company in its sole discretion, jeopardize or
endanger the availability to the Company of any income tax benefit, provided, however, that such a Person will cease to be an Exempt Person if the Board of Directors of the Company makes a contrary 

  
 3 

 
determination in its sole discretion with respect to the effect of such Person’s Beneficial Ownership (together with all Affiliates and Associates of such Person), regardless of the reason
for such contrary determination. 
 (s) “Exempt Transaction” means any transaction that the Board of
Directors of the Company determines, in its sole discretion, is exempt for purposes of this Agreement.  
 (t)
“Exercise Value” has the meaning set forth in Section 11(a)(iii).  
 (u)
“Expiration Date” means the earliest of (i) the Close of Business on April 7, 2019, which is the third anniversary of the date on which the Board of Directors authorized and declared a dividend distribution of the
Rights, or such earlier date as of which the Board of Directors of the Company determines that this Agreement is no longer necessary for the preservation of Tax Benefits, (ii) the time at which the Rights are redeemed as provided in
Section 23, (iii) the time at which all exercisable Rights are exchanged as provided in Section 24, (iv) the Close of Business on the effective date of the repeal of Section 382 of the Code or any successor or replacement
provision if the Board of Directors of the Company determines that this Agreement is no longer necessary for the preservation of Tax Benefits, (v) the Close of Business on the first day of a taxable year of the Company to which the Board of
Directors of the Company determines that no Tax Benefits may be carried forward, and (vi) the Close of Business on the first Business Day following the certification of the voting results of the Company’s 2016 annual meeting of
stockholders, if Stockholder Approval has not been obtained prior to such date. 
 (v) “Flip-in Event” means the event described in Section 11(a)(ii). 

(w) “Flip-over Event” means any event described in clauses (i),
(ii) or (iii) of Section 13(a). 
 (x) “Issuer” has the meaning set forth
in Section 13(b). 
 (y) “Person” means any individual, firm, corporation, partnership,
limited liability company, limited partnership, trust or other entity, including any group thereof making a “coordinated acquisition” of shares or otherwise treated as an “entity” within the meaning of Section 1.382-3(a)(1)
of the Treasury Regulations, and includes any successor (by merger or otherwise) of such entity, but will not include a Public Group (as such term is defined in Section 1.382.2T(f)(13) of the Treasury Regulations). 

(z) “Preferred Shares” means shares of Series A Junior Participating Preferred Stock, par value $0.01 per share, of
the Company having substantially the rights and preferences set forth in the form of Certificate of Designation of Series A Junior Participating Preferred Stock attached as Exhibit A. 

(aa) “Purchase Price” means initially $400.00 per one one-hundredth of a Preferred Share, subject to
adjustment from time to time as provided in this Agreement. 
 (bb) “Record Date” has
the meaning set forth in the Recitals to this Agreement. 

  
 4 

 (cc) “Redemption Price” means $0.001 per Right, subject to
adjustment by resolution of the Board of Directors of the Company to reflect any stock split, stock dividend or similar transaction occurring after the Record Date. 

(dd) “Related Person” means (i) any Subsidiary of the Company or (ii) any employee benefit or
stock ownership plan of the Company or of any Subsidiary of the Company or any entity holding Common Shares for or pursuant to the terms of any such plan. 

(ee) “Requesting Person” has the meaning set forth in Section 34(a). 

(ff) “Right” has the meaning set forth in the Recitals to this Agreement. 

(gg) “Right Certificates” means certificates evidencing the Rights, in substantially the form attached
as Exhibit B. 
 (hh) “Rights Agent” means Computershare Inc., a Delaware corporation,
unless and until a successor Rights Agent has become such pursuant to the terms of this Agreement, and thereafter, “Rights Agent” means such successor Rights Agent. 

(ii) “Securities Act” means the Securities Act of 1933, as amended. 

(jj) “Share Acquisition Date” means the first date of public announcement by the Company (by press
release, filing made with the Securities and Exchange Commission or otherwise) that an Acquiring Person has become such. 

(kk) “Stockholder Approval” means the approval of this Agreement by the affirmative vote of the holders
of a majority of the voting power of the outstanding Common Shares of the Company entitled to vote (excluding the vote of any Acquiring Person) that are present in person or represented by proxy and actually voted on the proposal to approve this
Agreement, at a duly called meeting of stockholders of the Company (or any adjournment or postponement thereof) at which a quorum is present. 

(ll) “Subsidiary” when used with reference to any Person means any corporation or other legal entity of
which a majority of the voting power of the voting equity securities or equity interests is owned, directly or indirectly, by such Person; provided, however, that for purposes of Section 13(b), “Subsidiary” when used
with reference to any Person means any corporation or other legal entity of which at least 20% of the voting power of the voting equity securities or equity interests is owned, directly or indirectly, by such Person. 

(mm) “Summary of Rights” has the meaning set forth in Section 3(a). 

(nn) “Tax Benefits” means the net operating loss carryovers, capital loss carryovers, general business
credit carryovers, alternative minimum tax credit carryovers and foreign tax credit carryovers, as well as any “net unrealized built-in loss” within the meaning of Section 382 of the Code or any successor or replacement provision, of
the Company or any direct or indirect subsidiary thereof. 

  
 5 

 (oo) “Trading Day” means any day on which the principal
national securities exchange or quotation system on which the Common Shares are listed or admitted to trading is open for the transaction of business or, if the Common Shares are not listed or admitted to trading on any national securities exchange
or quotation system, a Business Day. 
 (pp) “Treasury Regulations” means final,
temporary and proposed income tax regulations promulgated under the Code, including any amendments thereto. 

(qq) “Triggering Event” means any Flip-in Event or Flip-over Event. 
 (rr) “Trust” has the meaning set
forth in Section 24(a). 
 (ss) “Trust Agreement” has the meaning set forth in Section
24(a). 
 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as agent for the Company
in accordance with the express terms and conditions of this Agreement (and no implied terms and conditions), and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint co-rights agents as it may deem necessary or
desirable upon ten days’ prior written notice to the Rights Agent. In the event the Company appoints one or more co-rights agents, the respective duties of the Rights Agent and any co-rights agents shall be as the Company shall determine and
the Company shall provide written notice thereof to the Rights Agent. The Rights Agent shall have no duty to supervise, and shall in no event be liable for, the acts or omissions of any such co-rights agent. To the extent that any co-rights agent
takes any action pursuant to this Agreement, such co-rights agent will be entitled to all of the rights and protections of, and subject to all of the applicable duties and obligations imposed upon, the Rights Agent pursuant to the terms of this
Agreement. 
 3. Issue of Right Certificates. (a) Until the Distribution Date, (i) the Rights will be evidenced by the
certificates representing Common Shares registered in the names of the record holders thereof, which certificates representing Common Shares will also be deemed to be Right Certificates (or, in the case of uncertificated Common Shares registered in
book entry form, by notation in accounts reflecting the ownership of such Common Shares), (ii) the Rights will be transferable only in connection with the transfer of the underlying Common Shares, and (iii) the transfer of any Common
Shares in respect of which Rights have been issued will also constitute the transfer of the Rights associated with such Common Shares. On the Record Date, or as soon as practicable thereafter, the Company will send a copy of a Summary of Rights to
Purchase Preferred Stock in substantially the form attached as Exhibit C (the “Summary of Rights”), by first-class mail, postage-prepaid, to each record holder of Common Shares as of the Close of Business on the
Record Date (other than any Acquiring Person or any Associate or Affiliate of any Acquiring Person), at the address of such holder shown on the records of the Company. With respect to certificates for Common Shares outstanding as of the Record Date,
until the Distribution Date, the Rights will be evidenced by such certificates registered in the names of the holders thereof together with the Summary of Rights. 

(b) Rights will be issued by the Company in respect of all Common Shares (other than Common Shares issued upon the exercise or exchange of any
Right) issued or delivered by the Company (whether originally issued or delivered from the Company’s treasury) after the 

  
 6 

 
Record Date but prior to the earlier of the Distribution Date and the Expiration Date. Certificates evidencing such Common Shares will have stamped on, impressed on, printed on, written on, or
otherwise affixed to them the following legend or such similar legend as the Company may deem appropriate and as is not inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any stock exchange or quotation system on which the Common Shares may from time to time be listed or quoted, or to conform to usage: 

This Certificate also evidences and entitles the holder hereof to certain Rights as set forth in a Rights Agreement between Kaiser Aluminum
Corporation and Computershare, Inc. (or any successor Rights Agent), dated as of April 7, 2016 (as it may be amended or supplemented from time to time, the “Rights Agreement”), the terms of which are hereby incorporated
herein by reference and a copy of which is on file at the principal executive offices of Kaiser Aluminum Corporation. The Rights are not exercisable prior to the occurrence of certain events specified in the Rights Agreement. Under certain
circumstances, as set forth in the Rights Agreement, such Rights may be redeemed, may be exchanged, may expire, may be amended, or may be evidenced by separate certificates and no longer be evidenced by this Certificate. Kaiser Aluminum Corporation
will mail to the holder of this Certificate a copy of the Rights Agreement, as in effect on the date of mailing, without charge promptly after receipt of a written request therefor. Under certain circumstances as set forth in the Rights Agreement,
Rights that are or were Beneficially Owned by an Acquiring Person or any Affiliate or Associate of an Acquiring Person (as such terms are defined in the Rights Agreement) may become null and void. 

(c) Any Right Certificate issued pursuant to this Section 3 that represents Rights Beneficially Owned by an Acquiring Person or any
Associate or Affiliate thereof and any Right Certificate issued at any time upon the transfer of any Rights to an Acquiring Person or any Associate or Affiliate thereof or to any nominee of such Acquiring Person, Associate or Affiliate and any Right
Certificate issued pursuant to Section 6 or 11 hereof upon transfer, exchange, replacement or adjustment of any other Right Certificate referred to in this sentence, shall be subject to and contain the following legend or such similar legend as
the Company may deem appropriate and as is not inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any
stock exchange on which the Rights may from time to time be listed, or to conform to usage: 
 The Rights represented by this Right
Certificate are or were Beneficially Owned by a Person who was an Acquiring Person or an Affiliate or an Associate of an Acquiring Person (as such terms are defined in the Rights Agreement). This Right Certificate and the Rights represented hereby
may become null and void in the circumstances specified in Section 11(a)(ii) or Section 13 of the Rights Agreement. 
 (d) As
promptly as practicable after the Distribution Date, the Company will prepare and execute, the Rights Agent will countersign and the Company will send or cause to be sent 

  
 7 

 
(and the Rights Agent will, if requested in writing by the Company and provided with all necessary and relevant information and documentation, send), by first-class, insured, postage prepaid
mail, to each record holder of Common Shares as of the Close of Business on the Distribution Date, at the address of such holder shown on the records of the Company, a Right Certificate evidencing one Right for each Common Share so held, subject to
adjustment as provided herein. As of and after the Distribution Date, the Rights will be evidenced solely by such Right Certificates. 
 (e)
In the event that the Company purchases or otherwise acquires any Common Shares after the Record Date but prior to the Distribution Date, any Rights associated with such Common Shares will be deemed canceled and retired so that the Company will not
be entitled to exercise any Rights associated with the Common Shares so purchased or acquired. 
 4. Form of Right Certificates. The
Right Certificates (and the form of election to purchase and the form of assignment to be printed on the reverse thereof) will be substantially in the form attached as Exhibit B with such changes and marks of identification or
designation, and such legends, summaries or endorsements printed thereon, as the Company may deem appropriate (but which do not affect the rights, duties, liabilities, protections or responsibilities of the Rights Agent) and as are not inconsistent
with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange or quotation system on which the Rights may from
time to time be listed or quoted, or to conform to usage. Subject to the provisions of Section 22, the Right Certificates, whenever issued, on their face will entitle the holders thereof to purchase such number of one one-hundredths of a
Preferred Share as are set forth therein at the Purchase Price set forth therein, but the Purchase Price, the number and kind of securities issuable upon exercise of each Right and the number of Rights outstanding will be subject to adjustment as
provided herein. 
 5. Countersignature and Registration. (a) The Right Certificates will be executed on behalf of the Company
by its Chief Executive Officer, its President or any Vice President, either manually or by facsimile signature, and will have affixed thereto the Company’s seal or a facsimile thereof which will be attested by the Secretary or an Assistant
Secretary of the Company, either manually or by facsimile signature. The Right Certificates will be countersigned by the Rights Agent, either manually or by facsimile signature, and will not be valid for any purpose unless so countersigned. In case
any officer of the Company who signed any of the Right Certificates ceases to be such an officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Right Certificates, nevertheless, may be
countersigned by the Rights Agent, and issued and delivered by the Company with the same force and effect as though the person who signed such Right Certificates had not ceased to be such an officer of the Company; and any Right Certificate may be
signed on behalf of the Company by any person who, at the actual date of the execution of such Right Certificate, is a proper officer of the Company to sign such Right Certificate, although at the date of the execution of this Agreement any such
person was not such an officer. 
 (b) Following the Distribution Date, the Rights Agent will keep or cause to be kept, at the office of the
Rights Agent designated for such purpose and at such other offices as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto 

  
 8 

 
or with any rule or regulation of any stock exchange or any quotation system on which the Rights may from time to time be listed or quoted, books for registration and transfer of the Right
Certificates issued hereunder. Such books will show the names and addresses of the respective holders of the Right Certificates, the number of Rights evidenced on its face by each of the Right Certificates and the date of each of the Right
Certificates. 
 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right
Certificates. (a) Subject to the provisions of Sections 7(d) and 14, at any time after the Close of Business on the Distribution Date and prior to the Expiration Date, any Right Certificate or Right Certificates representing exercisable
Rights may be transferred, split up, combined or exchanged for another Right Certificate or Right Certificates, entitling the registered holder to purchase a like number of one one-hundredths of a Preferred Share (or other securities, as the case
may be) as the Right Certificate or Right Certificates surrendered then entitled such holder (or former holder in the case of a transfer) to purchase. Any registered holder desiring to transfer, split up, combine or exchange any such Right
Certificate or Right Certificates must make such request in a writing delivered to the Rights Agent and must surrender the Right Certificate or Right Certificates to be transferred, split up, combined or exchanged at the office of the Rights Agent
designated for such purpose. Thereupon or as promptly as practicable thereafter, subject to the provisions of Sections 7(d) and 14, the Company will prepare, execute and deliver to the Rights Agent, and the Rights Agent will countersign and deliver,
a Right Certificate or Right Certificates, as the case may be, as so requested. The Company or the Rights Agent may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer,
split up, combination or exchange of Right Certificates. If and to the extent that the Company does require payment of any such tax or charge, the Company will provide the Rights Agent prompt written notice thereof and the Rights Agent will not
deliver any Right Certificate unless and until the Rights Agent is satisfied that all such payments have been made, and the Rights Agent will forward any such sum collected by it to the Company or to such Person as the Company specifies by written
notice. The Rights Agent will not have any duty or obligation to take any action pursuant to any Section of this Agreement that requires the payment of taxes or charges or related to the issuance or delivery of Rights Certificates unless and until
it is satisfied that all such taxes or charges have been paid. 
 (b) Upon receipt by the Company and the Rights Agent of evidence
reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Right Certificate and, in case of loss, theft or destruction, of indemnity or security satisfactory to them, and, if requested by the Company, reimbursement to the
Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Right Certificate if mutilated, the Company will prepare, execute and deliver a new Right Certificate of like
tenor to the Rights Agent and the Rights Agent will countersign and deliver such new Right Certificate to the registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated. 

7. Exercise of Rights; Purchase Price; Expiration Date of Rights. (a) The registered holder of any Right Certificate may exercise
the Rights evidenced thereby (except as otherwise provided herein) in whole or in part at any time after the Distribution Date and prior to the 

  
 9 

 
Expiration Date, upon surrender of the Right Certificate, with the form of election to purchase on the reverse side thereof duly executed, to the Rights Agent at the office of the Rights Agent
designated for such purpose, together with payment in cash, in lawful money of the United States of America by certified check or bank draft payable to the order of the Company, equal to the sum of (i) the exercise price for the total number of
securities as to which such surrendered Rights are exercised and (ii) an amount equal to any applicable transfer tax required to be paid by the holder of such Right Certificate in accordance with the provisions of Section 9(d). Except for
those provisions herein that expressly survive the termination of this Agreement, this Agreement shall terminate upon the earlier of (x) the Expiration Date and (y) such time as all outstanding Rights have been exercised in full pursuant
to terms of this Agreement. 
 (b) Upon receipt of a Right Certificate representing exercisable Rights with the form of election to purchase
duly executed, accompanied by payment as described above, the Rights Agent will promptly (i) requisition from any transfer agent of the Preferred Shares (or make available, if the Rights Agent is the transfer agent) certificates representing
the number of one one-hundredths of a Preferred Share to be purchased or, in the case of uncertificated shares or other securities, requisition from any transfer agent therefor a notice setting forth such number of shares or other securities to be
purchased for which registration will be made on the stock transfer books of the Company (and the Company hereby irrevocably authorizes and directs its transfer agent to comply with all such requests), or, if the Company elects to deposit Preferred
Shares issuable upon exercise of the Rights hereunder with a depositary agent, requisition from the depositary agent depositary receipts representing such number of one one-hundredths of a Preferred Share as are to be purchased (and the Company
hereby irrevocably authorizes and directs such depositary agent to comply with all such requests), (ii) after receipt of such certificates (or notices or depositary receipts, as the case may be), cause the same to be delivered to or upon the
order of the registered holder of such Right Certificate, registered in such name or names as may be designated by such holder, (iii) when necessary to comply with this Agreement, requisition from the Company or any transfer agent therefor (or
make available, if the Rights Agent is the transfer agent) certificates representing the number of equivalent common shares (or, in the case of uncertificated shares, a notice of the number of equivalent common shares for which registration will be
made on the stock transfer books of the Company) to be issued in lieu of the issuance of Common Shares in accordance with the provisions of Section 11(a)(iii), (iv) when necessary to comply with this Agreement, after receipt of such
certificates or notices, cause the same to be delivered to or upon the order of the registered holder of such Right Certificate, registered in such name or names as may be designated by such holder, (v) when necessary to comply with this
Agreement, requisition from the Company the amount of cash to be paid in lieu of the issuance of fractional shares in accordance with the provisions of Section 14 or in lieu of the issuance of Common Shares in accordance with the provisions of
Section 11(a)(iii), (vi) when necessary to comply with this Agreement, after receipt, deliver such cash to or upon the order of the registered holder of such Right Certificate, and (vii) when necessary to comply with this Agreement,
deliver any due bill or other instrument provided to the Rights Agent by the Company for delivery to the registered holder of such Right Certificate as provided by Section 11(l). 

(c) In case the registered holder of any Right Certificate exercises less than all the Rights evidenced thereby, the Company will prepare,
execute and deliver a new Right Certificate 

  
 10 

 
evidencing the Rights remaining unexercised and the Rights Agent will countersign and deliver such new Right Certificate to the registered holder of such Right Certificate or to his, hers or its
duly authorized assigns, subject to the provisions of Section 14. 
 (d) Notwithstanding anything in this Agreement to the contrary,
neither the Rights Agent nor the Company will be obligated to undertake any action with respect to any purported transfer, split up, combination or exchange of any Right Certificate pursuant to Section 6 or exercise of a Right Certificate as
set forth in this Section 7 unless the registered holder of such Right Certificate has (i) completed and signed the certificate following the form of assignment or the form of election to purchase, as applicable, set forth on the reverse
side of the Right Certificate surrendered for such transfer, split up, combination, exchange or exercise and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates
thereof as the Company or the Rights Agent may reasonably request. 
 8. Cancellation and Destruction of Right Certificates. All
Right Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange will, if surrendered to the Company or to any of its stock transfer agents, be delivered to the Rights Agent for cancellation or in canceled
form, or, if surrendered to the Rights Agent, will be canceled by it, and no Right Certificates will be issued in lieu thereof except as expressly permitted by the provisions of this Agreement. The Company will deliver to the Rights Agent for
cancellation and retirement, and the Rights Agent will so cancel and retire, any other Right Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent will deliver all canceled Right Certificates to
the Company, or will, at the written request of the Company, destroy such canceled Right Certificates, and in such case will deliver a certificate of destruction thereof to the Company. 

9. Company Covenants Concerning Securities and Rights. The Company covenants and agrees that: 

(a) It will cause to be reserved and kept available out of its authorized and unissued Preferred Shares or any Preferred Shares held in its
treasury, a number of Preferred Shares that will be sufficient to permit the exercise pursuant to Section 7 of all outstanding Rights. 

(b) So long as the Preferred Shares (and, following the occurrence of a Triggering Event, Common Shares and/or other securities) issuable upon
the exercise of the Rights may be listed on a national securities exchange or quoted on a quotation system, it will endeavor to cause, from and after such time as the Rights become exercisable, all securities reserved for issuance upon the exercise
of Rights to be listed on such exchange or quoted on such system, upon official notice of issuance upon such exercise. 
 (c) It will take
all such action as may be necessary to ensure that all Preferred Shares (and, following the occurrence of a Triggering Event, Common Shares and/or other securities) delivered (or evidenced by registration on the stock transfer books of the Company)
upon exercise of Rights, at the time of delivery of the certificates for (or registration of) such securities, will be (subject to payment of the Purchase Price) duly authorized, validly issued, fully paid and nonassessable securities. 

  
 11 

 (d) It will pay when due and payable any and all transfer taxes and charges that may be payable
in respect of the issuance or delivery of the Right Certificates and of any certificates representing securities issued upon the exercise of Rights (or, if such securities are uncertificated, the registration of such securities on the stock transfer
books of the Company); provided, however, that the Company will not be required to pay any transfer tax or charge which may be payable in respect of any transfer or delivery of Right Certificates to a person other than, or the issuance
or delivery of certificates or depositary receipts representing (or the registration of) securities issued upon the exercise of Rights in a name other than that of, the registered holder of the Right Certificate evidencing Rights surrendered for
exercise, or to issue or deliver any certificates, depositary receipts or notices representing securities issued upon the exercise of any Rights until any such tax or charge has been paid (any such tax or charge being payable by the holder of such
Right Certificate at the time of surrender) or until it has been established to the Company’s and the Rights Agent’s reasonable satisfaction that no such tax is due. 

(e) It will use its best efforts (i) to file on an appropriate form, as soon as practicable following the later of the Share Acquisition
Date and the Distribution Date, a registration statement under the Securities Act with respect to the securities issuable upon exercise of the Rights, (ii) to cause such registration statement to become effective as soon as practicable after
such filing, and (iii) to cause such registration statement to remain effective (with a prospectus at all times meeting the requirements of the Securities Act) until the earlier of (A) the date as of which the Rights are no longer
exercisable for such securities and (B) the Expiration Date. The Company will also take such action as may be appropriate under, or to ensure compliance with, the applicable state securities or “blue sky” laws in connection with the
exercisability of the Rights. The Company may temporarily suspend, for a period of time after the date set forth in clause (i) of the first sentence of this Section 9(e), the exercisability of the Rights in order to prepare and file such
registration statement and to permit it to become effective. Upon any such suspension, the Company will issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at
such time as the suspension is no longer in effect. The Company shall notify the Rights Agent in writing whenever it makes such public announcements. In addition, if the Company determines that a registration statement should be filed under the
Securities Act or any state securities laws following the Distribution Date, the Company may temporarily suspend the exercisability of the Rights in each relevant jurisdiction until such time as a registration statement has been declared effective
and, upon any such suspension, the Company will issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect and the
Company shall notify the Rights Agent in writing whenever it makes such public announcements. Notwithstanding anything in this Agreement to the contrary, the Rights will not be exercisable in any jurisdiction if the requisite registration or
qualification in such jurisdiction has not been effected or the exercise of the Rights is not permitted under applicable law. 
 (f) In the
event that the Company is obligated to issue other securities of the Company and/or pay cash pursuant to Section 11, 13, 14 or 24, it will make all arrangements necessary so that such other securities and/or cash are available for distribution
by the Rights Agent, if and when appropriate. 

  
 12 

 10. Record Date. Each Person in whose name any certificate representing Preferred Shares
(or Common Shares and/or other securities, as the case may be) is issued (or in which such securities are registered upon the stock transfer books of the Company) upon the exercise of Rights will for all purposes be deemed to have become the holder
of record of the Preferred Shares (or Common Shares and/or other securities, as the case may be) represented thereby on, and such certificate (or registration) will be dated, the date upon which the Right Certificate evidencing such Rights was duly
surrendered and payment of the Purchase Price and all applicable transfer taxes was made; provided, however, that if the date of such surrender and payment is a date upon which the transfer books of the Company for the Preferred Shares
(or Common Shares and/or other securities, as the case may be) are closed, such Person will be deemed to have become the record holder of such securities on, and such certificate (or registration) will be dated, the next succeeding Business Day on
which the transfer books of the Company for the Preferred Shares (or Common Shares and/or other securities, as the case may be) are open. Prior to the exercise of the Rights evidenced thereby, the holder of a Right Certificate will not be entitled
to any rights of a holder of any security for which the Rights are or may become exercisable, including, without limitation, the right to vote, to receive dividends or other distributions, or to exercise any preemptive rights, and will not be
entitled to receive any notice of any proceedings of the Company, except as provided herein. 
 11. Adjustment of Purchase Price, Number
and Kind of Securities or Number of Rights. The Purchase Price, the number and kind of securities issuable upon exercise of each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this
Section 11. 
 (a) (i) In the event that the Company at any time after the Record Date (A) declares a dividend on the Preferred
Shares payable in Preferred Shares, (B) subdivides the outstanding Preferred Shares, (C) combines the outstanding Preferred Shares into a smaller number of Preferred Shares, or (D) issues any shares of its capital stock in a
reclassification of the Preferred Shares (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), except as otherwise provided in this Section 11(a), the
Purchase Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, combination or reclassification and/or the number and/or kind of shares of capital stock issuable on such date upon exercise of a
Right, will be proportionately adjusted so that the holder of any Right exercised after such time is entitled to receive upon payment of the Purchase Price then in effect the aggregate number and kind of shares of capital stock which, if such Right
had been exercised immediately prior to such date and at a time when the transfer books of the Company for the Preferred Shares were open, the holder of such Right would have owned upon such exercise (and, in the case of a reclassification, would
have retained after giving effect to such reclassification) and would have been entitled to receive by virtue of such dividend, subdivision, combination or reclassification; provided, however, that in no event shall the consideration
to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock issuable upon exercise of one Right. If an event occurs which would require an adjustment under both this Section 11(a)(i) and
Section 11(a)(ii) or Section 13, the adjustment provided for in this Section 11(a)(i) will be in addition to, and will be made prior to, any adjustment required pursuant to Section 11(a)(ii) or Section 13. 

  
 13 

 (ii) Subject to the provisions of Section 24, if any Person becomes an
Acquiring Person, then from and after the later of the Distribution Date and the Share Acquisition Date, proper provision will be made so that each holder of a Right, except as provided below, will thereafter have the right to receive, upon exercise
thereof in accordance with the terms of this Agreement at an exercise price per Right equal to the product of the then-current Purchase Price multiplied by the number of one one-hundredths of a Preferred Share
for which a Right was exercisable immediately prior to the date of the occurrence of such Flip-in Event (or, if any other Flip-in Event shall have previously occurred, the product of the then-current Purchase Price multiplied by the number of one
one-hundredths of a Preferred Share for which a Right was exercisable immediately prior to the date of the first occurrence of a Flip-in Event), in lieu of Preferred Shares, such number of Common Shares as equals the result obtained by
(x) multiplying the then-current Purchase Price by the number of one one-hundredths of a Preferred Share for which a Right was exercisable immediately prior to the date of the occurrence of such Flip-in
Event (or, if any other Flip-in Event shall have previously occurred, multiplying the then-current Purchase Price by the number of one one-hundredths of a Preferred Share for which a Right was exercisable immediately prior to the date of the first
occurrence of a Flip-in Event), and dividing that product by (y) 50% of the current per share market price of the Common Shares (determined pursuant to Section 11(d)) on the date of the occurrence of
such Flip-in Event. Notwithstanding anything in this Agreement to the contrary, from and after the first occurrence of a Flip-in Event, any Rights that are Beneficially Owned by (A) any Acquiring Person
(or any Affiliate or Associate of any Acquiring Person), (B) a transferee of any Acquiring Person (or any such Affiliate or Associate) who becomes a transferee after the occurrence of a Flip-in Event, or
(C) a transferee of any Acquiring Person (or any such Affiliate or Associate) who became a transferee prior to or concurrently with the occurrence of a Flip-in Event pursuant to either (1) a transfer
from an Acquiring Person to holders of its equity securities or to any Person with whom it has any continuing agreement, arrangement or understanding regarding the transferred Rights or (2) a transfer which the Board of Directors of the Company
has determined is part of a plan, arrangement or understanding which has the purpose or effect of avoiding the provisions of this Section 11(a)(ii), and subsequent transferees of any of such Persons, will be null and void without any further
action and any holder of such Rights will thereafter have no rights whatsoever with respect to such Rights under any provision of this Agreement. The Company will use all reasonable efforts to ensure that the provisions of this
Section 11(a)(ii) are complied with, but will have no liability to any holder of Right Certificates or any other Person as a result of its failure to make any determinations with respect to an Acquiring Person or its Affiliates, Associates or
transferees hereunder. Upon the occurrence of a Flip-in Event, no Right Certificate that represents Rights that are or have become null and void pursuant to the provisions of this Section 11(a)(ii) will
thereafter be issued pursuant to Section 3 or Section 6, and any Right Certificate delivered to the Rights Agent that represents Rights that are or have become null and void pursuant to the provisions of this Section 11(a)(ii) will be
canceled. Upon the occurrence of a Flip-over Event, any Rights 

  
 14 

 
that shall not have been previously exercised pursuant to this Section 11(a)(ii) shall thereafter be exercisable only pursuant to Section 13 and not pursuant to this
Section 11(a)(ii). 
 (iii) Upon the occurrence of a Flip-in Event, if there are
not sufficient Common Shares authorized but unissued or issued but not outstanding to permit the issuance of all the Common Shares issuable in accordance with Section 11(a)(ii) upon the exercise of a Right, the Board of Directors of the Company
will use its best efforts promptly to authorize and, subject to the provisions of Section 9(e), make available for issuance additional Common Shares or other equity securities of the Company having equivalent voting rights and an equivalent
value (as determined in good faith by the Board of Directors of the Company) to the Common Shares (for purposes of this Section 11(a)(iii), “equivalent common shares”). In the event that equivalent common shares are so
authorized, upon the exercise of a Right in accordance with the provisions of Section 7, the registered holder will be entitled to receive (A) Common Shares, to the extent any are available, and (B) a number of equivalent common
shares, which the Board of Directors of the Company has determined in good faith to have a value equivalent to the excess of (x) the aggregate current per share market value on the date of the occurrence of the most recent Flip-in Event of all
the Common Shares issuable in accordance with Section 11(a)(ii) upon the exercise of a Right (the “Exercise Value”) over (y) the aggregate current per share market value on the date of the occurrence of the most
recent Flip-in Event of any Common Shares available for issuance upon the exercise of such Right; provided, however, that if at any time after 90 calendar days after the latest of the Share Acquisition Date, the Distribution Date
and the date of the occurrence of the most recent Flip-in Event, there are not sufficient Common Shares and/or equivalent common shares available for issuance upon the exercise of a Right, then the Company will be obligated to deliver, upon the
surrender of such Right and without requiring payment of the Purchase Price, Common Shares (to the extent available), equivalent common shares (to the extent available) and then cash (to the extent permitted by applicable law and any agreements or
instruments to which the Company is a party in effect immediately prior to the Share Acquisition Date), which securities and cash have an aggregate value equal to the excess of (1) the Exercise Value over (2) the product of the then-current Purchase Price multiplied by the number of one one-hundredths of a Preferred Share for which a Right was exercisable immediately prior to the date of the occurrence of the most recent Flip-in Event (or,
if any other Flip-in Event shall have previously occurred, the product of the then-current Purchase Price multiplied by the number of one one-hundredths of a Preferred Share for which a Right would have been exercisable immediately prior to the date
of the occurrence of such Flip-in Event if no other Flip-in Event had previously occurred). To the extent that any legal or contractual restrictions prevent the Company from paying the full amount of cash
payable in accordance with the foregoing sentence, the Company will pay to holders of the Rights as to which such payments are being made all amounts which are not then restricted on a pro rata basis and will continue to make payments on a pro rata
basis as promptly as funds become available until the full amount due to each such Rights holder has been paid. 

  
 15 

 (b) In the event that the Company fixes a record date for the issuance of rights, options or
warrants to all holders of Preferred Shares entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Preferred Shares (or securities having equivalent rights, privileges and preferences as
the Preferred Shares (for purposes of this Section 11(b), “equivalent preferred shares”)) or securities convertible into Preferred Shares or equivalent preferred shares at a price per Preferred Share or equivalent
preferred share (or having a conversion price per share, if a security convertible into Preferred Shares or equivalent preferred shares) less than the current per share market price of the Preferred Shares (determined pursuant to Section 11(d))
on such record date, the Purchase Price to be in effect after such record date will be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which is the number of Preferred
Shares outstanding on such record date plus the number of Preferred Shares which the aggregate offering price of the total number of Preferred Shares and/or equivalent preferred shares so to be offered (and/or the aggregate initial conversion price
of the convertible securities so to be offered) would purchase at such current per share market price and the denominator of which is the number of Preferred Shares outstanding on such record date plus the number of additional Preferred Shares
and/or equivalent preferred shares to be offered for subscription or purchase (or into which the convertible securities so to be offered are initially convertible); provided, however, that in no event shall the consideration to be paid
upon the exercise of one Right be less than the aggregate par value of the shares of capital stock issuable upon exercise of one Right. In case such subscription price may be paid in a consideration part or all of which is in a form other than cash,
the value of such consideration will be as determined in good faith by the Board of Directors of the Company, which determination will be described in a written statement filed with the Rights Agent. Preferred Shares owned by or held for the account
of the Company will not be deemed outstanding for the purpose of any such computation. Such adjustment will be made successively whenever such a record date is fixed, and in the event that such rights, options or warrants are not so issued, the
Purchase Price will be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed. 
 (c) In the
event that the Company fixes a record date for the making of a distribution to all holders of Preferred Shares (including any such distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving
corporation) of evidences of indebtedness, cash (other than a regular periodic cash dividend), assets, stock (other than a dividend payable in Preferred Shares) or subscription rights, options or warrants (excluding those referred to in
Section 11(b)), the Purchase Price to be in effect after such record date will be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which is the current per share market
price of the Preferred Shares (as determined pursuant to Section 11(d)) on such record date or, if earlier, the date on which Preferred Shares begin to trade on an ex-dividend or when issued basis for
such distribution, less the fair market value (as determined in good faith by the Board of Directors of the Company, which determination will be described in a written statement filed with the Rights Agent) of the portion of the evidences of
indebtedness, cash, assets or stock so to be distributed or of such subscription rights, options or warrants applicable to one Preferred Share, and the denominator of which is such current per share market price of the Preferred Shares;
provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock issuable upon exercise of one

  
 16 

 
Right. Such adjustments will be made successively whenever such a record date is fixed; and in the event that such distribution is not so made, the Purchase Price will again be adjusted to be the
Purchase Price which would then be in effect if such record date had not been fixed. 
 (d) (i) For the purpose of any computation
hereunder, the “current per share market price” of Common Shares on any date will be deemed to be the average of the daily closing prices per share of such Common Shares for the 30 consecutive Trading Days immediately prior
to but not including such date; provided, however, that in the event that the current per share market price of the Common Shares is determined during a period following the announcement by the issuer of such Common Shares of
(A) a dividend or distribution on such Common Shares payable in such Common Shares or securities convertible into such Common Shares (other than the Rights) or (B) any subdivision, combination or reclassification of such Common Shares, and
prior to the expiration of 30 Trading Days after but not including the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination or reclassification, then, and in
each such case, the current per share market price will be appropriately adjusted to take into account ex-dividend trading or to reflect the current per share market price per Common Share equivalent. The
closing price for each day will be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated quotation
system with respect to securities listed or admitted to trading on The NASDAQ Stock Market LLC or, if the Common Shares are not listed or admitted to trading on The NASDAQ Stock Market LLC, as reported in the principal consolidated quotation system
with respect to securities listed on the principal national securities exchange on which the Common Shares are listed or admitted to trading or, if the Common Shares are not listed or admitted to trading on any national securities exchange, the last
quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by such market then in use, or, if on any such date the Common Shares are not quoted by any such organization, the
average of the closing bid and asked prices as furnished by a professional market maker making a market in the Common Shares selected by the Board of Directors of the Company. If the Common Shares are not publicly held or not so listed or traded, or
are not the subject of available bid and asked quotes, “current per share market price” will mean the fair value per share as determined in good faith by the Board of Directors of the Company, which determination will be described in a
written statement filed with the Rights Agent. 
 (ii) For the purpose of any computation hereunder, the “current
per share market price” of the Preferred Shares will be determined in the same manner as set forth above for Common Shares in Section 11(d)(i), other than the last sentence thereof. If the current per share market price of the
Preferred Shares cannot be determined in the manner provided above, the “current per share market price” of the Preferred Shares will be conclusively deemed to be an amount equal to the current per share market price of the Common Shares
multiplied by one hundred (as such number may be appropriately adjusted to reflect events such as stock splits, stock dividends, recapitalizations or similar transactions relating to the Common Shares occurring after the date of this Agreement). If
neither the Common Shares nor the Preferred Shares are publicly held or so listed or traded, or the subject of available bid and asked quotes, “current per share market price” of the Preferred Shares will mean the fair value per share as
determined in good faith by 

  
 17 

 
the Board of Directors of the Company, which determination will be described in a written statement filed with the Rights Agent. For all purposes of this Agreement, the current per share market
price of one one-hundredth of a Preferred Share will be equal to the current per share market price of one Preferred Share divided by one hundred. 

(e) Except as set forth below, no adjustment in the Purchase Price will be required unless such adjustment would require an increase or
decrease of at least 1% in such price; provided, however, that any adjustments which by reason of this Section 11(e) are not required to be made will be carried forward and taken into account in any subsequent adjustment. All
calculations under this Section 11 will be made to the nearest cent or to the nearest one one-millionth of a Preferred Share or one ten-thousandth of a Common Share or other security, as the case may be. Notwithstanding the first sentence of
this Section 11(e), any adjustment required by this Section 11 will be made no later than the earlier of (i) three years from the date of the transaction which requires such adjustment and (ii) the Expiration Date. 

(f) If as a result of an adjustment made pursuant to Section 11(a), the holder of any Right thereafter exercised becomes entitled to
receive any securities of the Company other than Preferred Shares, thereafter the number and/or kind of such other securities so receivable upon exercise of any Right (and/or the Purchase Price in respect thereof) will be subject to adjustment from
time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Shares (and the Purchase Price in respect thereof) contained in this Section 11, and the provisions of Sections 7, 9,
10, 13 and 14 with respect to the Preferred Shares (and the Purchase Price in respect thereof) will apply on like terms to any such other securities (and the Purchase Price in respect thereof). 

(g) All Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder will evidence the right to
purchase, at the adjusted Purchase Price, the number of one one-hundredths of a Preferred Share issuable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein. 

(h) Unless the Company has exercised its election as provided in Section 11(i), upon each adjustment of the Purchase Price pursuant to
Section 11(b) or Section 11(c), each Right outstanding immediately prior to the making of such adjustment will thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of one one-hundredths of a Preferred
Share (calculated to the nearest one one-millionth of a Preferred Share) obtained by (i) multiplying (x) the number of one one-hundredths of a Preferred Share issuable upon exercise of a Right immediately prior to such adjustment of the
Purchase Price by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price and (ii) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase
Price. 
 (i) The Company may elect, on or after the date of any adjustment of the Purchase Price, to adjust the number of Rights in
substitution for any adjustment in the number of one one-hundredths of a Preferred Share issuable upon the exercise of a Right. Each of the Rights outstanding after such adjustment of the number of Rights will be exercisable for the number of one
one-hundredths of a Preferred Share for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights 

  
 18 

 
will become that number of Rights (calculated to the nearest one ten-thousandth) obtained by dividing the Purchase Price in effect immediately prior to adjustment of the Purchase Price by the
Purchase Price in effect immediately after adjustment of the Purchase Price. The Company will make a public announcement (with prompt written notice thereof to the Rights Agent) of its election to adjust the number of Rights, indicating the record
date for the adjustment, and, if known at the time, the amount of the adjustment to be made. Such record date may be the date on which the Purchase Price is adjusted or any day thereafter, but, if the Right Certificates have been issued, will be at
least 10 calendar days later than the date of the public announcement. If Right Certificates have been issued, upon each adjustment of the number of Rights pursuant to this Section 11(i), the Company will, as promptly as practicable, cause to
be distributed to holders of record of Right Certificates on such record date Right Certificates evidencing, subject to the provisions of Section 14, the additional Rights to which such holders are entitled as a result of such adjustment, or,
at the option of the Company, will cause to be distributed to such holders of record in substitution and replacement for the Right Certificates held by such holders prior to the date of adjustment, and upon surrender thereof if required by the
Company, new Right Certificates evidencing all the Rights to which such holders are entitled after such adjustment. Right Certificates so to be distributed will be issued, executed, and countersigned in the manner provided for herein (and may bear,
at the option of the Company, the adjusted Purchase Price) and will be registered in the names of the holders of record of Right Certificates on the record date specified in the public announcement. 

(j) Without respect to any adjustment or change in the Purchase Price and/or the number and/or kind of securities issuable upon the exercise
of the Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number and kind of securities which were expressed in the initial Right Certificate issued hereunder. 

(k) Before taking any action that would cause an adjustment reducing the Purchase Price below one one-hundredth of the then par value, if any,
of the Preferred Shares or below the then par value, if any, of any other securities of the Company issuable upon exercise of the Rights, the Company will take any corporate action which may, based on the advice of its counsel, be necessary in order
that the Company may validly and legally issue fully paid and nonassessable Preferred Shares or such other securities, as the case may be, at such adjusted Purchase Price. 

(l) In any case in which this Section 11 otherwise requires that an adjustment in the Purchase Price be made effective as of a record
date for a specified event, the Company may elect to defer (with prompt written notice to the Rights Agent) until the occurrence of such event the issuance to the holder of any Right exercised after such record date the number of Preferred Shares or
other securities of the Company, if any, issuable upon such exercise over and above the number of Preferred Shares or other securities of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in effect prior to such
adjustment; provided, however, that the Company delivers to such holder a due bill or other appropriate instrument evidencing such holder’s right to receive such additional Preferred Shares or other securities upon the occurrence
of the event requiring such adjustment. 
 (m) Notwithstanding anything in this Agreement to the contrary, the Company will be entitled to
make such reductions in the Purchase Price, in addition to those adjustments expressly 

  
 19 

 
required by this Section 11, as and to the extent that in its good faith judgment the Board of Directors of the Company determines to be advisable in order that any (i) consolidation or
subdivision of the Preferred Shares, (ii) issuance wholly for cash of Preferred Shares at less than the current per share market price therefor, (iii) issuance wholly for cash of Preferred Shares or securities which by their terms are
convertible into or exchangeable for Preferred Shares, (iv) stock dividends, or (v) issuance of rights, options or warrants referred to in this Section 11, hereafter made by the Company to holders of its Preferred Shares is not
taxable to such stockholders. 
 (n) Notwithstanding anything in this Agreement to the contrary, in the event that the Company at any time
after the Record Date, but prior to the Distribution Date (i) pays a dividend on the outstanding Common Shares payable in Common Shares, (ii) subdivides the outstanding Common Shares, (iii) combines the outstanding Common Shares into
a smaller number of shares, or (iv) issues any shares of its capital stock in a reclassification of the outstanding Common Shares (including any such reclassification in connection with a consolidation or merger in which the Company is the
continuing or surviving corporation), the number of Rights associated with each Common Share then outstanding, or issued or delivered thereafter but prior to the Distribution Date, will be proportionately adjusted so that the number of Rights
thereafter associated with each Common Share following any such event equals the result obtained by multiplying the number of Rights associated with each Common Share immediately prior to such event by a fraction the numerator of which is the total
number of Common Shares outstanding immediately prior to the occurrence of the event and the denominator of which is the total number of Common Shares outstanding immediately following the occurrence of such event. The adjustments provided for in
this Section 11(n) will be made successively whenever such a dividend is paid or such a subdivision, combination or reclassification is effected. 

12. Certificate of Adjusted Purchase Price or Number of Securities. Whenever an adjustment is made as provided in Section 11 or
Section 13, the Company will promptly (a) prepare a certificate setting forth such adjustment and a brief statement of the facts accounting for such adjustment, (b) file with the Rights Agent and with each transfer agent for the
Preferred Shares and the Common Shares a copy of such certificate, and (c) if such adjustment is made after the Distribution Date, mail a brief summary of such adjustment to each holder of a Right Certificate in accordance with Section 26.
The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment or statement therein contained and shall have no duty or liability with respect to, and shall not be deemed to have knowledge of, any adjustment or
any such event unless and until it shall have received such a certificate. 
 13. Consolidation, Merger or Sale or Transfer of Assets or
Earning Power. (a) In the event that: 
 (i) at any time after a Person has become an Acquiring Person, the Company
consolidates with, or merges with or into, any other Person and the Company is not the continuing or surviving corporation of such consolidation or merger; or 

(ii) at any time after a Person has become an Acquiring Person, any Person consolidates with the Company, or merges with or
into the Company, and the Company is the continuing or surviving corporation of such merger or consolidation and, in 

  
 20 

 
connection with such merger or consolidation, all or part of the Common Shares is changed into or exchanged for stock or other securities of any other Person or cash or any other property; or

 (iii) at any time after a Person has become an Acquiring Person, the Company, directly or indirectly, sells or otherwise
transfers (or one or more of its Subsidiaries sells or otherwise transfers), in one or more transactions, assets or earning power (including without limitation securities creating any obligation on the part of the Company and/or any of its
Subsidiaries) representing in the aggregate more than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any Person or Persons other than the Company or one or more of its wholly owned Subsidiaries; 

then, and in each such case, proper provision will be made so that from and after the latest of the Distribution Date, the Share Acquisition Date, and the
date of the occurrence of such Flip-over Event: (A) each holder of a Right thereafter has the right to receive, upon the exercise thereof in accordance with the terms of this Agreement at an exercise price per Right equal to the product of the then-current Purchase Price multiplied by the number of one one-hundredths of a Preferred Share for which a Right was exercisable immediately prior to the Share Acquisition Date, such number of duly authorized,
validly issued, fully paid, nonassessable and freely tradeable Common Shares of the Issuer, free and clear of any liens, encumbrances and other adverse claims and not subject to any rights of call or first refusal, as equals the result obtained by
(x) multiplying the then-current Purchase Price by the number of one one-hundredths of a Preferred Share for which a Right is exercisable immediately prior to the Share Acquisition Date and dividing that
product by (y) 50% of the current per share market price of the Common Shares of the Issuer (determined pursuant to Section 11(d)), on the date of the occurrence of such Flip-over Event; (B) the
Issuer will thereafter be liable for, and will assume, by virtue of the occurrence of such Flip-over Event, all the obligations and duties of the Company pursuant to this Agreement; (C) the term
“Company” will thereafter be deemed to refer to the Issuer; and (D) the Issuer will take such steps (including without limitation the reservation of a sufficient number of its Common Shares to permit the exercise of all
outstanding Rights) in connection with such consummation as may be necessary to assure that the provisions hereof are thereafter applicable, as nearly as reasonably may be possible, in relation to its Common Shares thereafter deliverable upon the
exercise of the Rights. 
 (b) For purposes of this Section 13, “Issuer” means (i) in the case of any Flip-over Event described in Sections 13(a)(i) or (ii) above, the Person that is the continuing, surviving, resulting or acquiring Person (including the Company as the continuing or surviving corporation of a
transaction described in Section 13(a)(ii) above), and (ii) in the case of any Flip-over Event described in Section 13(a)(iii) above, the Person that is the party receiving the greatest portion
of the assets or earning power (including without limitation securities creating any obligation on the part of the Company and/or any of its Subsidiaries) transferred pursuant to such transaction or transactions; provided, however,
that, in any such case: (A) if (1) no class of equity security of such Person is, at the time of such merger, consolidation or transaction and has been continuously over the preceding 12-month
period, registered pursuant to Section 12 of the Exchange Act, and (2) such Person is a Subsidiary, directly or indirectly, of another Person, a class of equity security of which is and has been so registered, the term “Issuer”
means such 

  
 21 

 
other Person; and (B) in case such Person is a Subsidiary, directly or indirectly, of more than one Person, a class of equity security of two or more of which are and have been so
registered, the term “Issuer” means whichever of such Persons is the issuer of the equity security having the greatest aggregate market value. Notwithstanding the foregoing, if the Issuer in any of the
Flip-over Events listed above is not a corporation or other legal entity having outstanding equity securities, then, and in each such case, (x) if the Issuer is directly or indirectly wholly owned by a
corporation or other legal entity having outstanding equity securities, then all references to Common Shares of the Issuer will be deemed to be references to the Common Shares of the corporation or other legal entity having outstanding equity
securities which ultimately controls the Issuer, and (y) if there is no such corporation or other legal entity having outstanding equity securities, (I) proper provision will be made so that the Issuer creates or otherwise makes available
for purposes of the exercise of the Rights in accordance with the terms of this Agreement, a kind or kinds of security or securities having a fair market value at least equal to the economic value of the Common Shares which each holder of a Right
would have been entitled to receive if the Issuer had been a corporation or other legal entity having outstanding equity securities; and (II) all other provisions of this Agreement will apply to the issuer of such securities as if such securities
were Common Shares. 
 (c) The Company will not consummate any Flip-over Event if, (i) at the
time of or immediately after such Flip-over Event, there are or would be any rights, warrants, instruments or securities outstanding or any agreements or arrangements in effect which would eliminate or
substantially diminish the benefits intended to be afforded by the Rights, (ii) prior to, simultaneously with or immediately after such Flip-over Event, the stockholders of the Person who constitutes, or
would constitute, the Issuer for purposes of Section 13(a) shall have received a distribution of Rights previously owned by such Person or any of its Affiliates or Associates, or (iii) the form or nature of the organization of the Issuer
would preclude or limit the exercisability of the Rights. In addition, the Company will not consummate any Flip-over Event unless the Issuer has a sufficient number of authorized Common Shares (or other
securities as contemplated in Section 13(b) above) which have not been issued or reserved for issuance to permit the exercise in full of the Rights in accordance with this Section 13 and unless prior to such consummation the Company and
the Issuer have executed and delivered to the Rights Agent a supplemental agreement providing for the terms set forth in subsections (a) and (b) of this Section 13 and further providing that as promptly as practicable after the
consummation of any Flip-over Event, the Issuer will: 
 (A) prepare and file a
registration statement under the Securities Act with respect to the Rights and the securities issuable upon exercise of the Rights on an appropriate form, and use its best efforts to cause such registration statement to (1) become effective as
soon as practicable after such filing and (2) remain effective (with a prospectus at all times meeting the requirements of the Securities Act) until the Expiration Date; 

(B) take all such action as may be appropriate under, or to ensure compliance with, the applicable state securities or
“blue sky” laws in connection with the exercisability of the Rights; and 
 (C) deliver to holders of the Rights
historical financial statements for the Issuer and each of its affiliates which comply in all respects with the requirements for registration on Form 10 under the Exchange Act. 

  
 22 

 (d) The provisions of this Section 13 will similarly apply to successive mergers or
consolidations or sales or other transfers. In the event that a Flip-over Event occurs at any time after the occurrence of a Flip-in Event, except for Rights that have
become null and void pursuant to Section 11(a)(ii), Rights that shall not have been previously exercised will cease to be exercisable in the manner provided in Section 11(a)(ii) and will thereafter be exercisable in the manner provided in
Section 13(a). 
 14. Fractional Rights and Fractional Securities. (a) The Company will not be required to issue fractions
of Rights or to distribute Right Certificates which evidence fractional Rights. In lieu of such fractional Rights, the Company will pay as promptly as practicable to the registered holders of the Right Certificates with regard to which such
fractional Rights otherwise would be issuable, an amount in cash equal to the same fraction of the current market value of one Right. For the purposes of this Section 14(a), the current market value of one Right is the closing price of the
Rights for the Trading Day immediately prior to the date on which such fractional Rights otherwise would have been issuable. The closing price for any day is the last sale price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as reported in the principal quotation system with respect to securities listed or admitted to trading on The NASDAQ Stock Market LLC or, if the Rights are not listed or
admitted to trading on The NASDAQ Stock Market LLC, as reported in the principal quotation system with respect to securities listed on the principal national securities exchange on which the Rights are listed or admitted to trading or, if the Rights
are not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by such market then in use, or, if on
any such date the Rights are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Rights selected by the Board of Directors of the Company. If the
Rights are not publicly held or are not so listed or traded, or are not the subject of available bid and asked quotes, the current market value of one Right will mean the fair value thereof as determined in good faith by the Board of Directors of
the Company, which determination will be described in a written statement filed with the Rights Agent. 
 (b) The Company will not be
required to issue fractions of Preferred Shares (other than fractions which are integral multiples of one one-hundredth of a Preferred Share) upon exercise of the Rights or to distribute certificates which evidence fractional Preferred Shares or to
register fractional Preferred Shares on the stock transfer books of the Company (other than fractions which are integral multiples of one one-hundredth of a Preferred Share). Fractions of Preferred Shares in integral multiples of one one-hundredth
of a Preferred Share may, at the election of the Company, be evidenced by depositary receipts pursuant to an appropriate agreement between the Company and a depositary selected by it, provided that such agreement provides that the holders of such
depositary receipts have all the rights, privileges and preferences to which they are entitled as Beneficial Owners of the Preferred Shares represented by such depositary receipts. In lieu of fractional Preferred Shares that are not integral
multiples 

  
 23 

 
of one one-hundredth of a Preferred Share, the Company may pay to any Person to whom or which such fractional Preferred Shares would otherwise be issuable an amount in cash equal to the same
fraction of the current market value of one Preferred Share. For purposes of this Section 14(b), the current market value of one Preferred Share is the closing price of the Preferred Shares (as determined in the same manner as set forth for
Common Shares in the second sentence of Section 11(d)(i)) for the Trading Day immediately prior to the date of such exercise; provided, however, that if the closing price of the Preferred Shares cannot be so determined, the
closing price of the Preferred Shares for such Trading Day will be conclusively deemed to be an amount equal to the closing price of the Common Shares (determined pursuant to the second sentence of Section 11(d)(i)) for such Trading Day
multiplied by one hundred (as such number may be appropriately adjusted to reflect events such as stock splits, stock dividends, recapitalizations or similar transactions relating to the Common Shares occurring after the date of this Agreement);
provided further, however, that if neither the Common Shares nor the Preferred Shares are publicly held or listed or admitted to trading on any national securities exchange, or the subject of available bid and asked quotes, the
current market value of one Preferred Share will mean the fair value thereof as determined in good faith by the Board of Directors of the Company, which determination will be described in a written statement filed with the Rights Agent. 

(c) Following the occurrence of a Triggering Event, the Company will not be required to issue fractions of Common Shares or other securities
issuable upon exercise or exchange of the Rights or to distribute certificates which evidence any such fractional securities or to register any such fractional securities on the stock transfer books of the Company. In lieu of issuing any such
fractional securities, the Company may pay to any Person to whom or which such fractional securities would otherwise be issuable an amount in cash equal to the same fraction of the current market value of one such security. For purposes of this
Section 14(c), the current market value of one Common Share or other security issuable upon the exercise or exchange of Rights is the closing price thereof (as determined in the same manner as set forth for Common Shares in the second sentence
of Section 11(d)(i)) for the Trading Day immediately prior to the date of such exercise or exchange; provided, however, that if neither the Common Shares nor any such other securities are publicly held or listed or admitted to
trading on any national securities exchange, or the subject of available bid and asked quotes, the current market value of one Common Share or such other security will mean the fair value thereof as determined in good faith by the Board of Directors
of the Company, which determination will mean the fair value thereof as will be described in a written statement filed with the Rights Agent. 

(d) Whenever a payment of cash in lieu of fractional Rights, fractional Preferred Shares or fractional Common Shares is to be made by the
Rights Agent under this Agreement, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail the facts related to such payments and the prices and formulas utilized in calculating
such payments, and (ii) provide sufficient monies to the Rights Agent in the form of fully collected funds to make such payments. The Rights Agent shall be fully protected in relying upon such a certificate and shall have no duty with respect
to, and shall not be deemed to have knowledge of, any payment of cash in lieu of fractional Rights, fractional Preferred Shares or fractional Common Shares under this Agreement unless and until the Rights Agent shall have received such a certificate
and sufficient monies. 

  
 24 

 15. Rights of Action. All rights of action in respect of this Agreement, excepting the
rights of action given to the Rights Agent hereunder, are vested in the respective registered holders of the Right Certificates (and, prior to the Distribution Date, the registered holders of the Common Shares); and any registered holder of any
Right Certificate (or, prior to the Distribution Date, of the Common Shares), without the consent of the Rights Agent or of the holder of any other Right Certificate (or, prior to the Distribution Date, of the holder of any Common Shares), may in
his own behalf and for his own benefit enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, his right to exercise the Rights evidenced by such Right Certificate in the
manner provided in such Right Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law
for any breach of this Agreement and will be entitled to specific performance of the obligations under this Agreement, and injunctive relief against actual or threatened violations of the obligations of any Person subject to this Agreement. 

16. Agreement of Rights Holders. Every holder of a Right by accepting the same consents and agrees with the Company and the Rights
Agent and with every other holder of a Right that: 
 (a) Prior to the Distribution Date, the Rights are transferable only in connection
with the transfer of the Common Shares; 
 (b) After the Distribution Date, the Right Certificates are transferable only on the registry
books of the Rights Agent if surrendered at the office of the Rights Agent designated for such purpose, duly endorsed or accompanied by a proper instrument of transfer, and with the appropriate forms and certificates fully completed and executed;

 (c) The Company and the Rights Agent may deem and treat the person in whose name the Right Certificate (or, prior to the Distribution
Date, the associated Common Share) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Right Certificate or the associated Common Share certificate, if any,
made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent will be affected by any notice to the contrary; 

(d) Such holder expressly waives any right to receive any fractional Rights and any fractional securities upon exercise or exchange of a
Right, except as otherwise provided in Section 14. 
 (e) Notwithstanding anything in this Agreement to the contrary, neither the
Company nor the Rights Agent will have any liability to any holder of a Right or other Person as a result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order,
decree or ruling issued by a court of competent jurisdiction or by a governmental, regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental authority,
prohibiting or otherwise restraining performance of such obligation; provided, however, that the Company will use its best efforts to have any such order, decree or ruling lifted or otherwise overturned as soon as possible. 

  
 25 

 17. Right Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Right
Certificate will be entitled to vote, receive dividends, or be deemed for any purpose the holder of Preferred Shares or any other securities of the Company which may at any time be issuable upon the exercise of the Rights represented thereby, nor
will anything contained herein or in any Right Certificate be construed to confer upon the holder of any Right Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for the election of Directors or upon any
matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in Section 25), or to receive
dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Right Certificate shall have been exercised in accordance with the provisions of this Agreement or exchanged pursuant to the provisions of Section 24.

 18. Concerning the Rights Agent. (a) The Company will pay to the Rights Agent reasonable compensation for all services
rendered by it hereunder and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the preparation, negotiation, delivery, amendment, administration and execution of this
Agreement and the exercise and performance of its duties hereunder. The Company will also indemnify the Rights Agent and its affiliates, director, employees. representatives and advisors for, and hold them harmless against, any loss, liability,
suit, action, proceeding, damage, judgment, fine, penalty, claim, demand, settlement, cost or expense (including without limitation the reasonable fees and expenses of legal counsel), incurred without gross negligence, bad faith, or willful
misconduct on the part of the Rights Agent (which gross negligence, bad faith or willful misconduct must be determined by a final, non-appealable judgment of a court of competent jurisdiction), for action taken, suffered or omitted to be taken by
the Rights Agent in connection with the acceptance and administration of this Agreement, including the costs and expenses of defending against any claim of liability arising therefrom, directly or indirectly. The provisions provided for under this
Section 18 and Section 20 below shall survive the exercise or expiration of the Rights, the termination of this Agreement and the resignation, replacement or removal of the Rights Agent. The costs and expenses incurred in
enforcing this right of indemnification shall be paid by the Company. 
 (b) The Rights Agent will be protected and will incur no liability
for or in respect of any action taken, suffered, or omitted to be taken by it in connection with its administration of this Agreement in reliance upon any Right Certificate or certificate or other notice evidencing Preferred Shares or Common Shares
or other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement or other paper or document believed by it to be genuine and to be signed,
executed, and, where necessary, verified or acknowledged, by the proper Person or Persons. The Rights Agent shall not be deemed to have knowledge of any event of which it was supposed to receive notice thereof hereunder, and the Rights Agent shall
be fully protected and shall incur no liability for failing to take any action in connection therewith, unless and until it has received such notice in writing. 

  
 26 

 19. Merger or Consolidation or Change of Name of Rights Agent. (a) Any Person into
which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any Person resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent is a party, or any Person
succeeding to the stockholder services business of the Rights Agent or any successor Rights Agent, will be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of
the parties hereto, provided that such Person would be eligible for appointment as a successor Rights Agent under the provisions of Section 21. If at the time such successor Rights Agent succeeds to the agency created by this Agreement any of
the Right Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Right Certificates so countersigned; and if at that time any of
the Right Certificates shall not have been countersigned, any successor Rights Agent may countersign such Right Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such
Right Certificates will have the full force provided in the Right Certificates and in this Agreement. 
 (b) If at any time the name of the
Rights Agent changes and at such time any of the Right Certificates have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Right Certificates so countersigned; and if at that time
any of the Right Certificates have not been countersigned, the Rights Agent may countersign such Right Certificates either in its prior name or in its changed name; and in all such cases such Right Certificates will have the full force provided in
the Right Certificates and in this Agreement. 
 20. Duties of Rights Agent. The Rights Agent undertakes the duties and obligations
expressly imposed by this Agreement upon the following terms and conditions, by all of which the Company and the holders of Right Certificates, by their acceptance thereof, will be bound: 

(a) The Rights Agent may consult with legal counsel (who may be legal counsel for the Rights Agent or the Company or an employee of the Rights
Agent), and the advice of such counsel will be full and complete authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for or in respect of any action taken or omitted to be taken by it in accordance with
such advice. 
 (b) Whenever in the performance of its duties under this Agreement the Rights Agent deems it necessary or desirable that any
fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by any one of the Chairman of the Board, the President, any Vice President, the Secretary or the Treasurer of the Company and delivered to the Rights Agent, and such certificate will be full authorization to the
Rights Agent for any action taken, suffered or omitted to be taken by it under the provisions of this Agreement in reliance upon such certificate. 

(c) The Rights Agent shall be liable hereunder to the Company and any other Person only for its own gross negligence, bad faith or willful
misconduct (which gross negligence, bad 

  
 27 

 
faith or willful misconduct must be determined by a final, non-appealable judgment of a court of competent jurisdiction). Any liability of the Rights Agent under this Agreement will be limited to
the amount of annual fees paid by the Company to the Rights Agent. Anything to the contrary notwithstanding, in no event will the Rights Agent be liable for special, punitive, indirect, incidental or consequential loss or damages of any kind
whatsoever (including, without limitation, lost profits), even if the Rights Agent has been advised of the likelihood of such loss or damages. and regardless of the form of the action; and the Company agrees to indemnify the Rights Agent and its
affiliates, director, employees. representatives and advisors and to hold them harmless to the fullest extent permitted by law against any loss, liability or expense incurred as a result of claims for special, punitive, incidental, indirect or
consequential loss or damages of any kind whatsoever. 
 (d) The Rights Agent will not be liable for or by reason of any of the statements
of fact or recitals contained in this Agreement or in the Right Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and recitals are and will be deemed to have been made by the Company only.

 (e) The Rights Agent will not be under any responsibility or have any liability in respect of the validity of this Agreement or the
execution and delivery hereof (except the due execution and delivery hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate (except its countersignature thereof); nor will it be responsible for any breach by
the Company of any covenant contained in this Agreement or in any Right Certificate; nor will it be responsible for any adjustment required under the provisions of Sections 11 or 13 (including any adjustment which results in Rights becoming null and
void) or responsible for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect to the exercise of Rights evidenced by Right Certificates after
actual notice of any such adjustment); nor will it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of stock or other securities to be issued pursuant to this Agreement or any
Right Certificate or as to whether any shares of stock or other securities will, when issued, be duly authorized, validly issued, fully paid and nonassessable. 

(f) The Company will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further
and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement. 

(g) The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from any
one of the Chairman of the Board, the President, any Vice President, the Secretary or the Treasurer of the Company, and to apply to such officers for advice or instructions in connection with its duties, and it will not be liable for any action
taken or suffered to be taken by it in accordance with instructions of any such officer. The Rights Agent will be fully authorized and protected in relying upon instructions received by any such officer. The Rights Agent will not be held to have
notice of any change of authority of any person until receipt of written notice thereof from the Company. 

  
 28 

 (h) The Rights Agent and any stockholder, director, officer or employee of the Rights Agent may
buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely
as though it were not Rights Agent under this Agreement. Nothing herein will preclude the Rights Agent (or its shareholder, affiliate, director, officer or employee) from acting in any other capacity for the Company or for any other Person. 

(i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or
by or through its attorneys or agents, and the Rights Agent will not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act, default,
neglect or misconduct in the absence of gross negligence, bad faith or willful misconduct in the selection and continued employment thereof (which gross negligence, bad faith or willful misconduct must be determined by a final, non-appealable
judgment of a court of competent jurisdiction). The Rights Agent will not be under any duty or responsibility to ensure compliance with any applicable federal or state securities laws in connection with the issuance, transfer or exchange of Right
Certificates. 
 (j) If, with respect to any Right Certificate surrendered to the Rights Agent for exercise, transfer, split up, combination
or exchange, either (i) the certificate attached to the form of assignment or form of election to purchase, as the case may be, has either not been completed or indicates an affirmative response to clause 1 or 2 thereof, or (ii) any
other actual or suspected irregularity exists, the Rights Agent will not take any further action with respect to such requested exercise, transfer, split up, combination or exchange without first consulting with the Company, and will thereafter take
further action with respect thereto only in accordance with the Company’s written instructions. 
 (k) No provision of this Agreement
shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of its rights if it believes that repayment of such funds or adequate
indemnification against such risk or liability is not reasonably assured to it. 
 (l) In the event the Rights Agent reasonably believes any
ambiguity or uncertainty exists hereunder or in any notice, instruction, direction, request or other communication, paper or document received by the Rights Agent hereunder, the Rights Agent shall, as soon as practicable, inform the Company or such
Person seeking clarification and may, in its sole discretion, refrain from taking any action, and will be fully protected and will not be liable in any way to the Company or other Person or entity for refraining from taking such action, unless the
Rights Agent receives written instructions signed by the Company which eliminates such ambiguity or uncertainty to the reasonable satisfaction of the Rights Agent. 

21. Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this
Agreement upon 30 calendar days’ notice in writing mailed to the Company in accordance with Section 26 hereof and, in the event that the Rights Agent or one of its affiliates is not also the transfer agent for the Company, to each transfer
agent of the Preferred Shares or the Common Shares by first-class mail, postage prepaid, 

  
 29 

 
or nationally recognized overnight delivery. In the event the transfer agency relationship in effect between the Company and the Rights Agent terminates, the Rights Agent will be deemed to have
resigned automatically and be discharged from its duties under this Agreement as of the effective date of such termination, and the Company shall be responsible for sending any required notice. The Company may remove the Rights Agent or any
successor Rights Agent upon 30 calendar days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the Preferred Shares and the Common Shares by registered or certified mail,
and to the holders of the Right Certificates by first-class mail. If the Rights Agent resigns or is removed or otherwise becomes incapable of acting, the Company will appoint a successor to the Rights Agent. If the Company fails to make such
appointment within a period of 30 calendar days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right Certificate
(who will, with such notice, submit his Right Certificate for inspection by the Company), then the registered holder of any Right Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor
Rights Agent, whether appointed by the Company or by such a court, will be a corporation or other legal entity organized and doing business under the laws of the United States or of the State of New York (or of any other state of the United States),
in good standing, which is authorized under such laws to exercise stockholder services powers and is subject to supervision or examination by federal or state authority and which has, along with its affiliates, at the time of its appointment as
Rights Agent a combined capital and surplus of at least $50 million. After appointment, the successor Rights Agent will be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent will deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the
purpose. Not later than the effective date of any such appointment, the Company will file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Preferred Shares or the Common Shares, and mail a notice thereof in
writing to the registered holders of the Right Certificates. Failure to give any notice provided for in this Section 21, however, or any defect therein, will not affect the legality or validity of the resignation or removal of the Rights Agent
or the appointment of the successor Rights Agent, as the case may be. 
 22. Issuance of New Right Certificates. Notwithstanding any
of the provisions of this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Right Certificates evidencing Rights in such form as may be approved by the Board of Directors of the Company to reflect any adjustment
or change in the Purchase Price per share and the number or kind of securities issuable upon exercise of the Rights made in accordance with the provisions of this Agreement. In addition, in connection with the issuance or sale by the Company of
Common Shares following the Distribution Date and prior to the Expiration Date, the Company (a) will, with respect to Common Shares so issued or sold pursuant to the exercise, exchange or conversion of securities (other than Rights) issued
prior to the Distribution Date which are exercisable or exchangeable for, or convertible into Common Shares, and (b) may, in any other case, if deemed necessary, appropriate or desirable by the Board of Directors of the Company, issue Right
Certificates representing an equivalent number of Rights as would have been issued in respect of such Common Shares if they had been issued or sold prior to the Distribution Date, 

  
 30 

 
as appropriately adjusted as provided herein as if they had been so issued or sold; provided, however, that (i) no such Right Certificate will be issued if, and to the extent
that, in its good faith judgment the Board of Directors of the Company determines that the issuance of such Right Certificate could have a material adverse tax consequence to the Company or to the Person to whom or which such Right Certificate
otherwise would be issued and (ii) no such Right Certificate will be issued if, and to the extent that, appropriate adjustment otherwise has been made in lieu of the issuance thereof. 

23. Redemption. (a) Prior to the Expiration Date, the Board of Directors of the Company may, at its option, redeem all but not
less than all of the then-outstanding Rights at the Redemption Price at any time prior to the Close of Business on the later of (i) the Distribution Date and (ii) the Share Acquisition Date. Any such
redemption will be effective immediately upon the action of the Board of Directors of the Company ordering the same, unless such action of the Board of Directors of the Company expressly provides that such redemption will be effective at a
subsequent time or upon the occurrence or nonoccurrence of one or more specified events (in which case such redemption will be effective in accordance with the provisions of such action of the Board of Directors of the Company). 

(b) Immediately upon the effectiveness of the redemption of the Rights as provided in Section 23(a), and without any further action and
without any notice, the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights will be to receive the Redemption Price, without interest thereon. Promptly after the effectiveness of the redemption of the
Rights as provided in Section 23(a), the Company will publicly announce such redemption and, within 10 calendar days thereafter, will give notice of such redemption to the holders of the then-outstanding
Rights by mailing such notice to all such holders at their last addresses as they appear upon the registry books of the Company; provided, however, that the failure to give, or any defect in, any such notice will not affect the
validity of the redemption of the Rights. Any notice that is mailed in the manner herein provided will be deemed given, whether or not the holder receives the notice. The notice of redemption mailed to the holders of Rights will state the method by
which the payment of the Redemption Price will be made. The Company may, at its option, pay the Redemption Price in cash, Common Shares (based upon the current per share market price of the Common Shares (determined pursuant to Section 11(d))
at the time of redemption), or any other form of consideration deemed appropriate by the Board of Directors of the Company (based upon the fair market value of such other consideration, determined by the Board of Directors of the Company in good
faith) or any combination thereof. The Company may, at its option, combine the payment of the Redemption Price with any other payment being made concurrently to holders of Common Shares and, to the extent that any such other payment is
discretionary, may reduce the amount thereof on account of the concurrent payment of the Redemption Price. If legal or contractual restrictions prevent the Company from paying the Redemption Price (in the form of consideration deemed appropriate by
the Board of Directors of the Company) at the time of redemption, the Company will pay the Redemption Price, without interest, promptly after such time as the Company ceases to be so prevented from paying the Redemption Price. 

24. Exchange. (a) The Board of Directors of the Company may, at its option, at any time after the later of the (i) the
Distribution Date and (ii) the Share Acquisition Date, exchange 

  
 31 

 
all or part of the then-outstanding and exercisable Rights (which will not include Rights that have become null and void pursuant to the provisions
of Section 11(a)(ii)) for Common Shares at an exchange ratio of one Common Share per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the Record Date (such exchange ratio being
hereinafter referred to as the “Exchange Ratio”). Any such exchange will be effective immediately upon the action of the Board of Directors of the Company ordering the same, unless such action of the Board of Directors of the
Company expressly provides that such exchange will be effective at a subsequent time or upon the occurrence or nonoccurrence of one or more specified events (in which case such exchange will be effective in accordance with the provisions of such
action of the Board of Directors of the Company). Prior to effecting an exchange pursuant to this Section 24, the Board of Directors of the Company may direct the Company to enter into a Trust Agreement in such form and with such terms as the
Board of Directors of the Company shall then approve (the “Trust Agreement”). If the Board of Directors of the Company so directs, the Company shall enter into the Trust Agreement and shall issue to the trust created by such
agreement (the “Trust”) all of the Common Shares issuable pursuant to the exchange, and all Persons entitled to receive Common Shares pursuant to the exchange shall be entitled to receive such Common Shares (and any dividends
or distributions made thereon after the date on which such shares are deposited in the Trust) only from the Trust and solely upon compliance with the relevant terms and provisions of the Trust Agreement. Notwithstanding the foregoing, the Board of
Directors of the Company will not be empowered to effect such exchange at any time after any Person (other than the Company or any Related Person), who or which, together with all Affiliates and Associates of such Person, becomes the Beneficial
Owner of 50% or more of the then-outstanding Common Shares. 
 (b) Immediately upon
the effectiveness of the exchange of any Rights as provided in Section 24(a), and without any further action and without any notice, the right to exercise such Rights will terminate and the only right with respect to such Rights thereafter of
the holder of such Rights will be to receive that number of Common Shares equal to the number of such Rights held by such holder multiplied by the Exchange Ratio. Promptly after the effectiveness of the exchange of any Rights as provided in
Section 24(a), the Company will publicly announce such exchange (with prompt written notice thereof also provided to the Rights Agent) and, within 10 calendar days thereafter, will give notice of such exchange to all of the holders of such
Rights at their last addresses as they appear upon the registry books of the Rights Agent; provided, however, that the failure to give, or any defect in, such notice will not affect the validity of such exchange. Any notice that is
mailed in the manner herein provided will be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of the Common Shares for Rights will be effected and, in the event of
any partial exchange, the number of Rights which will be exchanged. Any partial exchange will be effected pro rata based on the number of Rights (other than Rights which have become null and void pursuant to the provisions of Section 11(a)(ii))
held by each holder of Rights. 
 (c) In any exchange pursuant to this Section 24, the Company, at its option, may substitute for any
Common Share exchangeable for a Right (i) equivalent common shares (as such term is used in Section 11(a)(iii)), (ii) cash, (iii) debt securities of the Company, (iv) other assets, or (v) any combination of the
foregoing, in any event having an aggregate value, as 

  
 32 

 
determined in good faith by the Board of Directors of the Company (which determination will be described in a written statement filed with the Rights Agent), equal to the current market value of
one Common Share (determined pursuant to Section 11(d)) on the Trading Day immediately preceding the date of the effectiveness of the exchange pursuant to this Section 24. 

25. Notice of Certain Events. (a) If, after the Distribution Date, the Company proposes (i) to pay any dividend payable in
stock of any class to the holders of Preferred Shares or to make any other distribution to the holders of Preferred Shares (other than a regular periodic cash dividend), (ii) to offer to the holders of Preferred Shares rights, options or
warrants to subscribe for or to purchase any additional Preferred Shares or shares of stock of any class or any other securities, rights or options, (iii) to effect any reclassification of its Preferred Shares (other than a reclassification
involving only the subdivision of outstanding Preferred Shares), (iv) to effect any consolidation or merger into or with, or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other
transfer), in one or more transactions, of assets or earning power (including, without limitation, securities creating any obligation on the part of the Company and/or any of its Subsidiaries) representing more than 50% of the assets and earning
power of the Company and its Subsidiaries, taken as a whole, to any other Person or Persons other than the Company or one or more of its wholly owned Subsidiaries, (v) to effect the liquidation, dissolution or winding up of the Company, or
(vi) to declare or pay any dividend on the Common Shares payable in Common Shares or to effect a subdivision, combination or reclassification of the Common Shares then, in each such case, the Company will give to each holder of a Right
Certificate, to the extent feasible and in accordance with Section 26, a notice of such proposed action, which specifies the record date for the purposes of such stock dividend, distribution or offering of rights, options or warrants, or the
date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution or winding up is to take place and the date of participation therein by the holders of the Common Shares and/or Preferred Shares, if any such date
is to be fixed, and such notice will be so given, in the case of any action covered by clause (i) or (ii) above, at least 10 calendar days prior to the record date for determining holders of the Preferred Shares for purposes of such
action, and, in the case of any such other action, at least 10 calendar days prior to the date of the taking of such proposed action or the date of participation therein by the holders of the Common Shares and/or Preferred Shares, whichever is the
earlier. 
 (b) In case any Triggering Event occurs, then, in any such case, the Company will as soon as practicable thereafter give to the
Rights Agent and each holder of a Right Certificate, in accordance with Section 26, a notice in writing of the occurrence of such event, which specifies the event and the consequences of the event to holders of Rights. 

(c) Notwithstanding anything in this Agreement to the contrary, prior to the Distribution Date, a filing by the Company with the Securities
and Exchange Commission shall constitute sufficient notice to the holders of any Rights or of any Common Shares for purposes of this Agreement. 

  
 33 

 26. Notices. (a) Notices or demands authorized by this Agreement to be given or made
by the Rights Agent or by the holder of any Right Certificate to or on the Company will be sufficiently given or made if sent in writing by first-class mail, postage prepaid, or overnight delivery service, addressed (until another address is filed
in writing with the Rights Agent) as follows: 
 Kaiser Aluminum Corporation 

27422 Portola Parkway, Suite 200 

Foothill Ranch, California 92610-2831 

Attention: General Counsel 
 (b)
Subject to the provisions of Section 21 hereof, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any Right Certificate to or on the Rights Agent will be sufficiently given or made if sent
in writing by first-class mail, postage prepaid, or overnight delivery service, addressed (until another address is filed in writing with the Company) as follows: 

Computershare Inc. 
 250 Royall
Street 
 Canton, MA 02021 

Attention: Client Services 
 (c)
Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Right Certificate (or, if prior the Distribution Date, to the holder of any Common Shares) will be sufficiently given or made
if sent in writing by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of the Company. 

27. Supplements and Amendments. Prior to the time at which the Rights cease to be redeemable pursuant to Section 23, and subject
to the penultimate sentence of this Section 27, the Company may in its sole and absolute discretion, and the Rights Agent will if the Company so directs, supplement or amend any provision of this Agreement in any respect without the approval of
any holders of Rights or Common Shares. From and after the time at which the Rights cease to be redeemable pursuant to Section 23, and subject to the penultimate sentence of this Section 27, the Company may, and the Rights Agent will if
the Company so directs, supplement or amend this Agreement without the approval of any holders of Rights or Common Shares in order (i) to cure any ambiguity, (ii) to correct or supplement any provision contained herein which may be
defective or inconsistent with any other provisions herein, (iii) to shorten or lengthen any time period hereunder, or (iv) to supplement or amend the provisions hereunder in any manner which the Company may deem desirable;
provided, however, that no such supplement or amendment shall adversely affect the interests of the holders of Rights as such (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person), and no such supplement
or amendment shall cause the Rights again to become redeemable or cause this Agreement again to become supplementable or amendable otherwise than in accordance with the provisions of this sentence. Without limiting the generality or effect of the
foregoing, this Agreement may be supplemented or amended to provide for such voting powers for the Rights and such procedures for the exercise thereof, if any, as the Board of Directors of the Company may determine to be appropriate. Upon the
delivery of a certificate from an officer of the Company which states that the proposed supplement or amendment is in compliance with the terms of this Section 27, the Rights Agent will execute such supplement or amendment;

  
 34 

 
provided, however, that such supplement or amendment does not adversely affect the rights, duties, obligations or immunities of the Rights Agent under this Agreement. Notwithstanding anything in
this Agreement to the contrary, no supplement or amendment may be made which decreases the stated Redemption Price to an amount less than $0.001 per Right. Notwithstanding anything in this Agreement to the contrary, the limitations on the ability of
the Board of Directors of the Company to amend this Agreement set forth in this Section 27 shall not affect the power or ability of the Board of Directors of the Company to take any other action that is consistent with its fiduciary duties
under Delaware law, including without limitation accelerating or extending the Expiration Date or making any other amendment to this Agreement that is permitted by this Section 27 or adopting a new stockholder rights plan with such terms as the
Board of Directors of the Company determines in its sole discretion to be appropriate; provided, however the Rights Agent may, but will not be obligated to, enter into any new stockholder rights agreement that adversely affects the Rights
Agent’s own rights, duties, obligations or immunities or that is not substantially similar in form to this Agreement. 
 28.
Successors; Certain Covenants. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent will be binding on and inure to the benefit of their respective successors and assigns hereunder. 

29. Benefits of This Agreement. Nothing in this Agreement will be construed to give to any Person other than the Company, the Rights
Agent, and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Shares) any legal or equitable right, remedy or claim under this Agreement. This Agreement will be for the sole and exclusive benefit of the
Company, the Rights Agent, and the registered holders of the Right Certificates (or prior to the Distribution Date, the Common Shares). The Company and, by accepting Rights hereunder, each holder of Rights: (a) irrevocably submit to the
exclusive jurisdiction of the Court of Chancery of the State of Delaware, or, if such court shall lack subject matter jurisdiction, the United States District Court for the District of Delaware, over any suit, action or proceeding arising out of or
relating to this Agreement; (b) acknowledge that the forum designated by this Section 29 has a reasonable relation to this Agreement and to such Persons’ relationship with one another; (c) waive, to the fullest extent permitted
by applicable law, any objection which they now or hereafter have to personal jurisdiction or to the laying of venue of any such suit, action or proceeding brought in any court referred to in this Section 29; (d) undertake not to commence
any action subject to this Agreement in any forum other than the forum described in this Section 29; and (e) agree that, to the fullest extent permitted by applicable law, a final and non-appealable judgment in any such suit, action or
proceeding brought in any such court shall be conclusive and binding upon such Persons. 
 30. Governing Law. This Agreement, each
Right and each Right Certificate issued hereunder will be deemed to be a contract made under the internal substantive laws of the State of Delaware and for all purposes will be governed by and construed in accordance with the internal substantive
laws of such State applicable to contracts to be made and performed entirely within such State. 
 31. Severability. If any term,
provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, null and void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this

  
 35 

 
Agreement will remain in full force and effect and will in no way be affected, impaired or invalidated; provided, however, that nothing contained in this Section 31 will affect the ability
of the Company under the provisions of Section 27 to supplement or amend this Agreement to replace such invalid, null and void or unenforceable term, provision, covenant or restriction with a legal, valid and enforceable term, provision,
covenant or restriction; provided further, however, that if such severed provision affects the rights, immunities, duties or obligations of the Rights Agent, then the Rights Agent will be entitled to resign immediately upon written notice to the
Company. 
 32. Descriptive Headings, Etc. Descriptive headings of the several Sections of this Agreement are inserted for
convenience only and will not control or affect the meaning or construction of any of the provisions hereof. Unless otherwise expressly provided, references herein to Articles, Sections and Exhibits are to Articles, Sections and Exhibits of or to
this Agreement. 
 33. Determinations and Actions by the Board. (a) For all purposes of this Agreement, any calculation of the
number of Common Shares outstanding at any particular time, including for purposes of determining the particular percentage of such outstanding Common Shares of which any Person is the Beneficial Owner, will be made in accordance with the provisions
of Section 382 of the Code, or any successor or replacement provision, and the Treasury Regulations promulgated thereunder. The Board of Directors of the Company will have the exclusive power and authority to administer this Agreement and to
exercise or refrain from exercising all rights and powers specifically granted to the Board of Directors of the Company or to the Company, or as may be necessary or advisable in the administration of this Agreement, including without limitation the
right and power (i) to interpret the provisions of this Agreement (including without limitation Section 27, this Section 33 and other provisions hereof relating to its powers or authority hereunder) and (ii) to make all
determinations deemed necessary or advisable for the administration of this Agreement (including without limitation any determination contemplated by Section 1(a) or any determination as to whether particular Rights shall have become null and
void). All such actions, calculations, interpretations and determinations (including, for purposes of clause (y) below, any omission with respect to any of the foregoing) which are done or made by the Board of Directors of the Company in good
faith will (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other parties and (y) not subject the Board of Directors of the Company to any liability to any Person, including without
limitation the Rights Agent and the holders of the Rights. The Rights Agent is entitled always to assume the Company’s Board of Directors acted in good faith and shall be fully protected and incur no liability in reliance thereon. 

(b) If at any time the Board of Directors of the Company determines that a Person has become an Acquiring Person, the Company will give
written notice of such determination, indicating the identity of such Person, to the Rights Agent promptly thereafter. Until such a notice is received by the Rights Agent, the Rights Agent may presume conclusively for all purposes that no
Person has become an Acquiring Person.
 34. Process to Seek Exemption. (a) Any Person who desires to effect any transaction
that might, if consummated, result in such Person becoming the Beneficial Owner of 4.99% or more of the then-outstanding Common Shares (or, in the case of any Person who would 

  
 36 

 
otherwise constitute an Acquiring Person as of the Effective Time but will not be deemed to be an Acquiring Person for any purpose of this Agreement unless and until such time as provided
in Section 1(a), any additional Common Shares) (a “Requesting Person”) may, prior to the date of the transaction for which the Requesting Person is seeking a determination, request in writing that the Board of Directors
of the Company make a determination under this Plan so that such Person would be deemed to be an “Exempt Person” for purposes of this Plan or such transaction would be deemed to be an “Exempt Transaction” for purposes of this
Plan (an “Exemption Request”). Any Exemption Request must be delivered by registered mail, return receipt requested, to the Secretary of the Company at the Company’s principal executive office. Such
Exemption Request will be deemed to have been made when actually received by the Company. Any Exemption Request must include: (i) the name, address and telephone number of the Requesting Person; (ii) the number and percentage of Common
Shares then Beneficially Owned by the Requesting Person; (iii) a reasonably detailed description of the transaction or transactions by which the Requesting Person would propose to acquire Beneficial Ownership of Common Shares, the maximum
number and percentage of Common Shares that the Requesting Person proposes to acquire and the proposed tax treatment thereof; and (iv) a commitment by the Requesting Person that such Requesting Person will not acquire Beneficial Ownership of
4.99% or more of the then-outstanding Common Shares or, if such Requesting Person Beneficially Owns 4.99% or more of the then-outstanding Common Shares, any additional Common Shares prior to such time as the Board has responded to, or is deemed to
have responded to, the Exemption Request pursuant to this Section 34. The Board of Directors of the Company will, in good faith, endeavor to respond to any Exemption Request within 30 calendar days of receiving such Exemption Request;
provided that the failure of the Board of Directors of the Company to make a determination within such period will be deemed to constitute the denial by the Board of Directors of the Company of the Exemption Request. The Requesting Person
must respond promptly to reasonable and appropriate requests for additional information from the Company or the Board of Directors of the Company and its advisors to assist the Board of Directors of the Company in making its determination. As a
condition to making any determination requested pursuant to this Section 34(a), the Board of Directors of the Company may, in its discretion, require (at the expense of the Requesting Person) a report from advisors selected by the Board of
Directors of the Company to the effect that the proposed transaction or transactions will not result in the application of any limitations on the use by the Company of the Tax Benefits taking into account any and all other transactions that have
been consummated prior to receipt of the Exemption Request, any and all other proposed transactions that have been approved by the Board of Directors of the Company prior to receipt of the Exemption Request and any such other actual or proposed
transactions involving Common Shares as the Board may require; provided that the Board of Directors of the Company may make the determination requested in the Exemption Request notwithstanding the effect of the proposed transaction or
transactions on the Tax Benefits if it determines that such determination is in the best interests of the Company. The Board of Directors of the Company may impose any conditions that it deems reasonable and appropriate in connection with a
determination pursuant to this Section 34(a), including without limitation restrictions on the ability of the Requesting Person to transfer Common Shares acquired by it in the transaction or transactions to which such determination relates. Any
Exemption Request may be submitted on a confidential basis and, except to the extent required by applicable law, the Company will maintain the confidentiality of such Exemption Request and the determination of the Board of Directors of the Company
with respect thereto, unless the information contained in the Exemption Request or the determination of the Board of Directors of the Company with respect thereto otherwise becomes publicly available.  

  
 37 

 (b) The Board of Directors of the Company may make a determination under this Plan so that a
Person would be deemed to be an “Exempt Person” for purposes of this Plan or a transaction would be deemed to be an “Exempt Transaction” for purposes of this Plan, whether or not an Exemption Request has been made pursuant to
Section 34(a). In connection with such determination, the Board of Directors of the Company may impose any conditions that it deems reasonable and appropriate, including without limitation restrictions on the ability of the transferee to
transfer Common Shares acquired by it in the transaction or transactions to which such determination relates. Any determination of the Board of Directors of the Company pursuant to this Section 34(b) may be made prospectively or retroactively.

 35. Suspension of Exercisability or Exchangeability. To the extent that the Board of Directors of the Company determines in good
faith that some action will or may need be taken pursuant to, or in order to properly give effect to, Section 7, 11, 13, 21 or 24 or to comply with federal or state securities laws or rules and regulations of any national securities exchange on
which the Common Shares are listed or admitted to trading, the Company may suspend the exercisability or exchangeability of the Rights for a reasonable period sufficient to allow it to take such action or comply with such laws or rules and
regulations. In the event of any such suspension, the Company will issue as promptly as practicable a public announcement stating that the exercisability or exchangeability of the Rights has been temporarily suspended. The Company shall notify the
Rights Agent in writing whenever it makes such a public announcement temporarily suspending the exercisability or exchangeability of the Rights, and whenever such suspension has been lifted. Notice thereof pursuant to Section 26 will not be
required. Upon such suspension, any rights of action vested in a holder of Rights will be similarly suspended. Failure to give a notice pursuant to the provisions of this Plan will not affect the validity of any action taken hereunder. 

36. Effective Time. Notwithstanding anything in this Agreement to the contrary, this Agreement will not be effective until the
Effective Time. 
 37. Counterparts. This Agreement may be executed in any number of counterparts and each of such counterparts will
for all purposes be deemed to be an original, and all such counterparts will together constitute but one and the same instrument. A signature to this Agreement transmitted electronically will have the same authority, effect and enforceability as an
original signature. 
 38. Force Majeure. Notwithstanding anything to the contrary contained herein, the Rights Agent shall not be
liable for any delays or failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer
facilities, or loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war, or civil unrest 

  
 38 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the
date and year first above written. 
  

					
	KAISER ALUMINUM CORPORATION
		
	By:	 	 /s/ John M. Donnan

		 	Name:	 	John M. Donnan
		 	Title:	 	Executive Vice President – Legal, Compliance and Human Resources
	
	COMPUTERSHARE INC.
		
	By:	 	 /s/ Dennis V. Moccia

		 	Name:	 	Dennis V. Moccia
		 	Title:	 	Manager, Contract Administration

  

 EXHIBIT A 

CERTIFICATE OF DESIGNATION 
 of

 SERIES A JUNIOR PARTICIPATING 

PREFERRED STOCK 
 of 

KAISER ALUMINUM CORPORATION 

(Pursuant to Section 151 of the 

General Corporation Law of the State of Delaware) 

Kaiser Aluminum Corporation, a corporation organized and existing under the General Corporation Law of the State of Delaware (the
“Company”), DOES HEREBY CERTIFY: 
 That, pursuant to authority vested in the Board of Directors of the Company by
its Amended and Restated Certificate of Incorporation, and pursuant to the provisions of Section 151 of the General Corporation Law, the Board of Directors of the Company has adopted the following resolution providing for the issuance of a
series of Preferred Stock: 
 RESOLVED, that pursuant to the authority expressly granted to and vested in the Board of Directors of the
Company (the “Board of Directors” or the “Board”) by the Amended and Restated Certificate of Incorporation of the Company, a series of Preferred Stock, par value $0.01 per share (the
“Preferred Stock”), of the Company be, and it hereby is, created, and that the designation and amount thereof and the powers, designations, preferences and relative, participating, optional and other special rights of the
shares of such series, and the qualifications, limitations or restrictions thereof are as follows: 
 I. Designation and Amount 

The shares of such series will be designated as Series A Junior Participating Preferred Stock (the
“Series A Preferred”) and the number of shares constituting the Series A Preferred is 900,000. Such number of shares may be increased or decreased by resolution of the Board; provided, however, that no
decrease will reduce the number of shares of Series A Preferred to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the
conversion of any outstanding securities issued by the Company convertible into Series A Preferred. 
 II. Dividends
and Distributions 
 (a) Subject to the rights of the holders of any shares of any series of Preferred Stock ranking prior
to the Series A Preferred with respect to dividends, the holders of shares of Series A Preferred, in preference to the holders of Common Stock, par value $0.01 per share (the “Common Stock”), of the Company, and of
any other junior stock, will be entitled to receive, when, as and if declared by the Board out of funds legally available for the purpose, dividends payable in cash (except as otherwise provided below) on such dates as are from time to time 

  
 A-1 

 
established for the payment of dividends on the Common Stock (each such date being referred to herein as a “Dividend Payment Date”), commencing on the first
Dividend Payment Date after the first issuance of a share or fraction of a share of Series A Preferred (the “First Dividend Payment Date”), in an amount per share (rounded to the nearest cent) equal to the greater of
(i) $1.00 or (ii) subject to the provision for adjustment hereinafter set forth, one hundred times the aggregate per share amount of all cash dividends, and one hundred times the aggregate per share amount (payable in kind) of all non-cash dividends, other than a dividend payable in shares of Common Stock or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common Stock since the
immediately preceding Dividend Payment Date or, with respect to the First Dividend Payment Date, since the first issuance of any share or fraction of a share of Series A Preferred. In the event that the Company at any time (i) declares a
dividend on the outstanding shares of Common Stock payable in shares of Common Stock, (ii) subdivides the outstanding shares of Common Stock, (iii) combines the outstanding shares of Common Stock into a smaller number of shares, or
(iv) issues any shares of its capital stock in a reclassification of the outstanding shares of Common Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving
corporation), then, in each such case and regardless of whether any shares of Series A Preferred are then issued or outstanding, the amount to which holders of shares of Series A Preferred would otherwise be entitled immediately prior to
such event under clause (ii) of the preceding sentence will be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of
which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
 (b) The Company will
declare a dividend on the Series A Preferred as provided in the immediately preceding paragraph immediately after it declares a dividend on the Common Stock (other than a dividend payable in shares of Common Stock). Each such dividend on the
Series A Preferred will be payable immediately prior to the time at which the related dividend on the Common Stock is payable. 
 (c)
Dividends will accrue on outstanding shares of Series A Preferred from the Dividend Payment Date next preceding the date of issue of such shares, unless (i) the date of issue of such shares is prior to the record date for the First
Dividend Payment Date, in which case dividends on such shares will accrue from the date of the first issuance of a share of Series A Preferred or (ii) the date of issue is a Dividend Payment Date or is a date after the record date for the
determination of holders of shares of Series A Preferred entitled to receive a dividend and before such Dividend Payment Date, in either of which events such dividends will accrue from such Dividend Payment Date. Accrued but unpaid dividends
will cumulate from the applicable Dividend Payment Date but will not bear interest. Dividends paid on the shares of Series A Preferred in an amount less than the total amount of such dividends at the time accrued and payable on such shares will
be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board may fix a record date for the determination of holders of shares of Series A Preferred entitled to receive payment of a dividend or
distribution declared thereon, which record date will be not more than 60 calendar days prior to the date fixed for the payment thereof. 

  
 A-2 

 III. Voting Rights 

The holders of shares of Series A Preferred will have the following voting rights: 

(a) Subject to the provision for adjustment hereinafter set forth, each share of Series A Preferred will entitle the holder thereof to
one hundred votes on all matters submitted to a vote of the stockholders of the Company. In the event the Company at any time (i) declares a dividend on the outstanding shares of Common Stock payable in shares of Common Stock,
(ii) subdivides the outstanding shares of Common Stock, (iii) combines the outstanding shares of Common Stock into a smaller number of shares, or (iv) issues any shares of its capital stock in a reclassification of the outstanding
shares of Common Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), then, in each such case and regardless of whether any shares of Series A
Preferred are then issued or outstanding, the number of votes per share to which holders of shares of Series A Preferred would otherwise be entitled immediately prior to such event will be adjusted by multiplying such number by a fraction, the
numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 

(b) Except as otherwise provided herein, in any other Preferred Stock Designation creating a series of Preferred Stock or any similar stock,
or by law, the holders of shares of Series A Preferred and the holders of shares of Common Stock and any other capital stock of the Company having general voting rights will vote together as one class on all matters submitted to a vote of
stockholders of the Company. 
 (c) Except as set forth in the Amended and Restated Certificate of Incorporation or herein, or as otherwise
provided by law, holders of shares of Series A Preferred will have no voting rights. 
 IV. Certain Restrictions 

(a) Whenever dividends or other dividends or distributions payable on the Series A Preferred are in arrears, thereafter and until all
accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A Preferred outstanding have been paid in full, the Company will not: 

(i) Declare or pay dividends, or make any other distributions, on any shares of stock ranking junior (either as to dividends or
upon liquidation, dissolution or winding up) to the shares of Series A Preferred; 
 (ii) Declare or pay dividends, or
make any other distributions, on any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the shares of Series A Preferred, except dividends paid ratably on the shares of Series A
Preferred and all such parity stock on which dividends are payable or in arrears in proportion to the total amounts to which the holders of all such shares are then entitled; 

  
 A-3 

 (iii) Redeem, purchase or otherwise acquire for consideration shares of any stock
ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the shares of Series A Preferred; provided, however, that the Company may at any time redeem, purchase or otherwise acquire shares of any
such junior stock in exchange for shares of any stock of the Company ranking junior (either as to dividends or upon dissolution, liquidation or winding up) to the shares of Series A Preferred; or 

(iv) Redeem, purchase or otherwise acquire for consideration any shares of Series A Preferred, or any shares of stock
ranking on a parity with the shares of Series A Preferred, except in accordance with a purchase offer made in writing or by publication (as determined by the Board) to all holders of such shares upon such terms as the Board, after consideration
of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, may determine in good faith will result in fair and equitable treatment among the respective series or classes. 

(b) The Company will not permit any majority-owned subsidiary of the Company to purchase or otherwise acquire for consideration any shares of
stock of the Company unless the Company could, under paragraph (a) of this Article IV, purchase or otherwise acquire such shares at such time and in such manner. 

V. Reacquired Shares 
 Any
shares of Series A Preferred purchased or otherwise acquired by the Company in any manner whatsoever will be retired and canceled promptly after the acquisition thereof. All such shares will upon their cancellation become authorized but
unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock subject to the conditions and restrictions on issuance set forth herein, in the Amended and Restated Certificate of Incorporation of the Company, or in
any other Preferred Stock Designation creating a series of Preferred Stock or any similar stock or as otherwise required by law. 
 VI.
Liquidation, Dissolution or Winding Up 
 Upon any liquidation, dissolution or winding up of the Company, no distribution will be
made (a) to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the shares of Series A Preferred unless, prior thereto, the holders of shares of Series A Preferred
have received $100 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to the date of such payment; provided, however, that the holders of shares of Series A
Preferred will be entitled to receive an aggregate amount per share, subject to the provision for adjustment hereinafter set forth, equal to one hundred times the aggregate amount to be distributed per share to holders of shares of Common Stock or
(b) to the holders of shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the shares of Series A Preferred, except distributions made ratably on the shares of Series A
Preferred and all such parity stock in proportion to the total amounts to which the holders of all such shares are entitled upon such liquidation, dissolution or winding up. In the event the Company at any time (i) declares a dividend on the
outstanding shares of Common Stock payable in shares of Common Stock, (ii) subdivides the outstanding shares of Common Stock, (iii) combines the 

  
 A-4 

 
outstanding shares of Common Stock into a smaller number of shares, or (iv) issues any shares of its capital stock in a reclassification of the outstanding shares of Common Stock (including
any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), then, in each such case and regardless of whether any shares of Series A Preferred are then issued or
outstanding, the aggregate amount to which each holder of shares of Series A Preferred would otherwise be entitled immediately prior to such event under the proviso in clause (a) of the preceding sentence will be adjusted by multiplying
such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such
event. 
 VII. Consolidation, Merger, Etc. 

In the event that the Company enters into any consolidation, merger, combination or other transaction in which the shares of Common Stock are
exchanged for or changed into other stock or securities, cash and/or any other property, then, in each such case, each share of Series A Preferred will at the same time be similarly exchanged for or changed into an amount per share, subject to
the provision for adjustment hereinafter set forth, equal to one hundred times the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is
changed or exchanged. In the event the Company at any time (a) declares a dividend on the outstanding shares of Common Stock payable in shares of Common Stock, (b) subdivides the outstanding shares of Common Stock, (c) combines the
outstanding shares of Common Stock in a smaller number of shares, or (d) issues any shares of its capital stock in a reclassification of the outstanding shares of Common Stock (including any such reclassification in connection with a
consolidation or merger in which the Company is the continuing or surviving corporation), then, in each such case and regardless of whether any shares of Series A Preferred are then issued or outstanding, the amount set forth in the preceding
sentence with respect to the exchange or change of shares of Series A Preferred will be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
 VIII.
Redemption 
 The shares of Series A Preferred are not redeemable. 

IX. Rank 
 The
Series A Preferred rank, with respect to the payment of dividends and the distribution of assets, junior to all other series of the Company’s Preferred Stock. 

X. Amendment 

Notwithstanding anything contained in the Amended and Restated Certificate of Incorporation of the Company to the contrary and in addition to
any other vote required by applicable law, the Amended and Restated Certificate of Incorporation of the Company may not 

  
 A-5 

 
be amended in any manner that would materially alter or change the powers, preferences or special rights of the Series A Preferred so as to affect them adversely without the affirmative vote
of the holders of at least 67% of the outstanding shares of Series A Preferred, voting together as a single series. 
 IN WITNESS
WHEREOF, I have signed this Certificate of Designation on behalf of Kaiser Aluminum Corporation this 7th day of April 2016. 
  

			
	KAISER ALUMINUM CORPORATION
		
	By:	 	  

		 	Name:
		 	Title:

  
 A-6 

 EXHIBIT B 

FORM OF RIGHT CERTIFICATE 
  

			
	Certificate No. R-            	  	            Rights

 NOT EXERCISABLE AFTER
April 7, 2019 OR EARLIER IF REDEEMED, EXCHANGED OR AMENDED. THE RIGHTS ARE SUBJECT TO REDEMPTION, EXCHANGE AND AMENDMENT AT THE OPTION OF THE COMPANY, ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES SPECIFIED IN THE
RIGHTS AGREEMENT, RIGHTS THAT ARE OR WERE BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR AN ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) OR A TRANSFEREE THEREOF MAY BECOME NULL AND VOID. 

Right Certificate 
 KAISER
ALUMINUM CORPORATION 
 This certifies that
                    , or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner
thereof, subject to the terms, provisions, and conditions of the Tax Asset Protection Rights Agreement, dated as of April 7, 2016 (the “Rights Agreement”), between Kaiser Aluminum Corporation, a Delaware corporation (the
“Company”), and Computershare Inc., a Delaware corporation (the “Rights Agent”), to purchase from the Company at any time after the Distribution Date (as such term is defined in the Rights Agreement)
and prior to the Expiration Date (as such term is defined in the Rights Agreement) at the offices of the Rights Agent designated for such purpose, one one-hundredth of a fully paid nonassessable share of Series A Junior Participating Preferred
Stock, par value $0.01 per share (the “Preferred Shares”), of the Company, at a purchase price of $400.00 per one one-hundredth of a Preferred Share (the “Purchase Price”), upon presentation and
surrender of this Right Certificate with the Form of Election to Purchase and related Certificate duly executed. If this Right Certificate is exercised in part, the holder will be entitled to receive upon surrender hereof another Right Certificate
or Right Certificates for the number of whole Rights not exercised. The number of Rights evidenced by this Right Certificate (and the number of one one-hundredths of a Preferred Share which may be purchased upon exercise thereof) set forth above,
and the Purchase Price set forth above, are the number and Purchase Price as of the date of the Rights Agreement, based on the Preferred Shares as constituted at such date. 

As provided in the Rights Agreement, the Purchase Price and/or the number and/or kind of securities issuable upon the exercise of the Rights
evidenced by this Right Certificate are subject to adjustment upon the occurrence of certain events. 
 This Right Certificate is subject to
all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a

  
 B-1 

 
full description of the rights, limitations of rights, obligations, duties and immunities of the Rights Agent, the Company and the holders of the Right Certificates, which limitations of rights
include the temporary suspension of the exercisability of the Rights under the circumstances specified in the Rights Agreement. Copies of the Rights Agreement are on file at the above-mentioned office of the Rights Agent and can be obtained from the
Company without charge upon written request therefor. Terms used herein with initial capital letters and not defined herein are used herein with the meanings ascribed thereto in the Rights Agreement. 

Pursuant to the Rights Agreement, from and after the occurrence of a Flip-in Event, any Rights that
are Beneficially Owned by (i) any Acquiring Person (or any Affiliate or Associate of any Acquiring Person), (ii) a transferee of any Acquiring Person (or any such Affiliate or Associate) who becomes a transferee after the occurrence of a Flip-in Event, or (iii) a transferee of any Acquiring Person (or any such Affiliate or Associate) who became a transferee prior to or concurrently with the Flip-in Event
pursuant to either (a) a transfer from an Acquiring Person to holders of its equity securities or to any Person with whom it has any continuing agreement, arrangement or understanding regarding the transferred Rights or (b) a transfer
which the Board of Directors of the Company has determined is part of a plan, arrangement or understanding which has the purpose or effect of avoiding certain provisions of the Rights Agreement, and subsequent transferees of any of such Persons,
will be null and void without any further action and any holder of such Rights will thereafter have no rights whatsoever with respect to such Rights under any provision of the Rights Agreement. From and after the occurrence of a Flip-in Event, no Right Certificate will be issued that represents Rights that are or have become null and void pursuant to the provisions of the Rights Agreement, and any Right Certificate delivered to the Rights
Agent that represents Rights that are or have become null and void pursuant to the provisions of the Rights Agreement will be canceled. 

This Right Certificate, with or without other Right Certificates, may be transferred, split up, combined or exchanged for another Right
Certificate or Right Certificates entitling the holder to purchase a like number of one one-hundredths of a Preferred Share (or other securities, as the case may be) as the Right Certificate or Right Certificates surrendered entitled such holder (or
former holder in the case of a transfer) to purchase, upon presentation and surrender hereof at the office of the Rights Agent designated for such purpose, with the Form of Assignment (if appropriate) and the related Certificate duly executed. 

Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate may be redeemed by the Company at its option at a
redemption price of $0.001 per Right or may be exchanged in whole or in part. The Rights Agreement may be supplemented and amended by the Company, as provided therein. 

The Company is not required to issue fractions of Preferred Shares (other than fractions which are integral multiples of one one-hundredth of
a Preferred Share, which may, at the option of the Company, be evidenced by depositary receipts) or other securities issuable upon the exercise of any Right or Rights evidenced hereby. In lieu of issuing such fractional Preferred Shares or other
securities, the Company may make a cash payment, as provided in the Rights Agreement. 

  
 B-2 

 No holder of this Right Certificate, as such, will be entitled to vote or receive dividends or be
deemed for any purpose the holder of the Preferred Shares or of any other securities of the Company which may at any time be issuable upon the exercise of the Right or Rights represented hereby, nor will anything contained herein or in the Rights
Agreement be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights
evidenced by this Right Certificate have been exercised in accordance with the provisions of the Rights Agreement. 
 This Right Certificate
will not be valid or obligatory for any purpose until it has been countersigned by the Rights Agent. 
 WITNESS the facsimile signature of
the officers of the Company and its corporate seal. Dated as of             ,         . 

 

									
	ATTEST:	 		 	KAISER ALUMINUM CORPORATION
				
	  
	 		 	By:	 	  

		 		 		 	Name:
		 		 		 	Title:
				
	Countersigned:	 		 		 	
				
	COMPUTERSHARE INC.	 		 		 	
					
	By:	 	  
	 		 		 	
		 	Authorized Signature	 		 		 	

  
 B-3 

 Form of Reverse Side of Right Certificate 

FORM OF ASSIGNMENT 
 (To be
executed by the registered holder if such 
 holder desires to transfer the Right Certificate) 

FOR VALUE RECEIVED,
                    hereby sells, assigns and transfers unto 
  

 
 (Please print name and address of
transferee) 
  
  

this Right Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and
appoint                     Attorney, to transfer the within Right Certificate on the books of the within-named Company, with full power of
substitution. 
 Dated:             ,          

 

	
	  

	Signature

  

			
	Signature Guaranteed:	 	  

 Signatures must be guaranteed by an eligible guarantor institution (a bank, stockbroker, savings and loan association or
credit union with membership in an approved signature guarantee medallion program) at a guarantee level satisfactory to the Rights Agent. A notary public is not sufficient. 

  
 B-4 

 CERTIFICATE 

The undersigned hereby certifies by checking the appropriate boxes that: 

(1) the Rights evidenced by this Right Certificate [    ] are [    ] are
not being sold, assigned, transferred, split up, combined or exchanged by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Person (as such terms are defined in the Rights Agreement); 

(2) after due inquiry and to the best knowledge of the undersigned, it [    ] did
[    ] did not acquire the Rights evidenced by this Right Certificate from any Person who is, was or became an Acquiring Person or an Affiliate or Associate of an Acquiring Person. 

Dated:             ,          

 

	
	  

	Signature

  
 B-5 

 FORM OF ELECTION TO PURCHASE 

(To be executed if holder desires to 

exercise the Right Certificate) 
 To Kaiser
Aluminum Corporation: 
 The undersigned hereby irrevocably elects to exercise
                    Rights represented by this Right Certificate to purchase the one one-hundredths of a Preferred Share or other securities issuable
upon the exercise of such Rights and requests that certificates for such securities be issued in the name of and delivered to: 
  

			
	Please insert social security	  	
	or other identifying number:	  	  

  
  

(Please print name and address) 
  

 
 If such number of Rights is not all the Rights
evidenced by this Right Certificate, a new Right Certificate for the balance remaining of such Rights will be registered in the name of and delivered to: 
  

			
	Please insert social security	  	
	or other identifying number:	  	  

  
  

(Please print name and address) 
  

 
 Dated:
            ,          
  

	
	  

	Signature

  

			
	Signature Guaranteed:	 	  

 Signatures must be guaranteed by an eligible guarantor institution (a bank, stockbroker, savings and loan association or
credit union with membership in an approved signature guarantee medallion program) at a guarantee level satisfactory to the Rights Agent. A notary public is not sufficient. 

  
 B-6 

 CERTIFICATE 

The undersigned hereby certifies by checking the appropriate boxes that: 

(1) the Rights evidenced by this Right Certificate [    ] are [    ] are
not being exercised by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Person (as such terms are defined pursuant to the Rights Agreement); 

(2) after due inquiry and to the best knowledge of the undersigned, it [    ] did
[    ] did not acquire the Rights evidenced by this Right Certificate from any Person who is, was, or became an Acquiring Person or an Affiliate or Associate of an Acquiring Person. 

Dated:             ,          

 

	
	  

	Signature

 NOTICE 

Signatures on the foregoing Form of Assignment and Form of Election to Purchase and in the related Certificates must correspond to the name
as written upon the face of this Right Certificate in every particular, without alteration or enlargement or any change whatsoever. 

Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions
with membership in an approved medallion signature program) pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended. 

  
 B-7 

 EXHIBIT C 

SUMMARY OF RIGHTS TO PURCHASE PREFERRED STOCK 

On April 7, 2016, the Board of Directors of Kaiser Aluminum Corporation adopted a rights plan and declared a dividend of one preferred
share purchase right for each outstanding share of Kaiser Aluminum Corporation’s common stock, par value $0.01 per share. The dividend is payable on April 22, 2016 to our stockholders of record on that date. The terms of the rights and the
rights plan are set forth in a Tax Asset Protection Rights Agreement, dated as of April 7, 2016, by and between Kaiser Aluminum Corporation and Computershare Inc., as rights agent. 

Our Board adopted the rights plan in an effort to protect stockholder value by attempting to protect against a possible limitation on our
ability to use our net operating loss carryforwards and other tax attributes to reduce potential future federal income tax obligations. Under the Internal Revenue Code and rules promulgated by the Internal Revenue Service, we may “carry
forward” tax losses and credits in certain circumstances to offset any current and future earnings and thus reduce our federal income tax liability, subject to certain requirements and restrictions. To the extent that our tax attributes do not
otherwise become limited, we believe that we will be able to carry forward a significant amount of losses and credits, and therefore these tax attributes could be a substantial asset to us. However, if we experience an “ownership change,”
as defined in Section 382 of the Internal Revenue Code, our ability to use these tax attributes will be substantially limited, and the timing of the usage of the tax attributes could be substantially delayed, which could significantly impair
the value of that asset. 
 In general terms, the rights plan imposes a significant penalty upon any person or group that acquires
beneficial ownership of 4.99% or more of our outstanding common stock without the prior approval of our Board. A person or group that acquires a percentage of our common stock in excess of that threshold is called an “acquiring
person.” Any rights held by an acquiring person are null and void and may not be exercised. The term “beneficial ownership” is defined in the rights plan and generally means direct or constructive ownership as
determined under Section 382 of the Internal Revenue Code. 
 This summary of rights provides a general description of the rights plan.
Because it is only a summary, this description should be read together with the entire rights plan, which we incorporate in this summary by reference. We have filed the rights plan with the Securities and Exchange Commission as an exhibit to our
registration statement on Form 8-A. Upon written request, we will provide a copy of the rights plan free of charge to any stockholder. 

The Rights. Our Board of Directors authorized the issuance of one right per each outstanding share of our common stock on
April 22, 2016. If the rights become exercisable, each right would allow its holder to purchase from us one one-hundredth of a share of our Series A Junior Participating Preferred Stock for a purchase price of $400.00. Each fractional share of
preferred stock would give the stockholder approximately the same dividend, voting and liquidation rights as does one share of our common stock. Prior to exercise, however, a right does not give its holder any dividend, voting or liquidation rights.

  
 C-1 

 Exercisability. The rights will not be exercisable until the earlier of: 

 

	•	 	10 days after a public announcement by Kaiser Aluminum Corporation that a person or group has become an acquiring person; and 

  

	•	 	10 business days (or a later date determined by our Board) after a person or group begins a tender or exchange offer that, if completed, would result in that person or group becoming an acquiring person.

 We refer to the date that the rights become exercisable as the “distribution date.” Until the distribution date,
our common stock certificates will also evidence the rights and will contain a notation to that effect. Any transfer of shares of common stock prior to the distribution date will constitute a transfer of the associated rights. After the distribution
date, the rights will separate from the common stock and be evidenced by right certificates, which we will mail to all holders of rights that have not become null and void. 

After the distribution date, if a person or group already is or becomes an acquiring person, all holders of rights, except the acquiring
person, may exercise their rights upon payment of the purchase price to purchase shares of our common stock (or other securities or assets as determined by the Board) with a market value of two times the purchase price. We refer to this as a
“flip-in event.” 
 After the distribution date, if a flip-in event has already occurred and Kaiser Aluminum
Corporation is acquired in a merger or similar transaction, all holders of rights except the acquiring person may exercise their rights upon payment of the purchase price, to purchase shares of the acquiring or other appropriate entity with a market
value of two times the purchase price of the rights. We refer to this as a “flip-over event.” 
 Rights may be
exercised to purchase our preferred shares only after the distribution date occurs and prior to the occurrence of a flip-in event as described above. A distribution date resulting from the commencement of a tender offer or exchange offer as
described in the second bullet point above could precede the occurrence of a flip-in event, in which case the rights could be exercised to purchase our preferred shares. A distribution date resulting from any occurrence described in the first bullet
point above would necessarily follow the occurrence of a flip-in event, in which case the rights could be exercised to purchase shares of common stock (or other securities or assets) as described above. 

Exempted Persons and Exempted Transactions. Our Board of Directors recognizes that there may be instances when an acquisition of our
common stock that would cause a stockholder to become an acquiring person may not jeopardize the availability of any tax attributes to Kaiser Aluminum Corporation. Accordingly, the rights plan grants discretion to the Board to designate a person as
an “Exempt Person” or to designate a transaction involving our common stock as an “Exempt Transaction.” An “Exempt Person” cannot become an acquiring person under the rights plan. Our Board can revoke an “Exempt
Person” designation if it subsequently makes a contrary determination regarding whether a person jeopardizes the availability of tax attributes to Kaiser Aluminum Corporation. 

  
 C-2 

 Expiration. The rights will expire on the earliest of (i) April 7, 2019, which
is the third anniversary of date on which our Board adopted the rights plan and declared a dividend of the rights, or such earlier date as of which our Board determines that the rights plan is no longer necessary for the preservation of our tax
assets, (ii) the time at which the rights are redeemed, (iii) the time at which the rights are exchanged, (iv) the effective time of the repeal of Section 382 of the Code or any successor statute if the Board determines that the
rights plan is no longer necessary for the preservation of our tax assets, (v) the first day of a taxable year of the Company to which the Board determines that no NOLs or other tax assets may be carried forward, and (v) the day following
the certification of the voting results of Kaiser Aluminum Corporation’s 2016 annual meeting of stockholders, if stockholder approval of the rights plan has not been obtained prior to that date. 

Redemption. Our Board may redeem all (but not less than all) of the rights for a redemption price of $0.001 per right at any time
before the later of the distribution date and the date of the first public announcement or disclosure by Kaiser Aluminum Corporation that a person or group has become an acquiring person. Once the rights are redeemed, the right to exercise rights
will terminate, and the only right of the holders of rights will be to receive the redemption price. The redemption price will be adjusted if we declare a stock split or issue a stock dividend on our common stock. 

Exchange. After the later of the distribution date and the date of the first public announcement by Kaiser Aluminum Corporation that a
person or group has become an acquiring person, but before an acquiring person owns 50% or more of our outstanding common stock, our Board may exchange each right (other than rights that have become null and void) for one share of common stock or an
equivalent security. 
 Anti-Dilution Provisions. Our Board may adjust the purchase price of the preferred shares, the number of
preferred shares issuable and the number of outstanding rights to prevent dilution that may occur as a result of certain events, including, among others, a stock dividend, a stock split or a reclassification of the preferred shares or our common
stock. No adjustments to the purchase price of less than one percent will be made.  
 Amendments. Before the time rights
cease to be redeemable, our Board may amend or supplement the rights plan without the consent of the holders of the rights, except that no amendment may decrease the redemption price below $0.001 per right. At any time thereafter, our Board may
amend or supplement the rights plan to cure an ambiguity, to alter time period provisions, to correct inconsistent provisions or to make any additional changes to the rights plan, but only to the extent that those changes do not impair or adversely
affect any rights holder and do not result in the rights again becoming redeemable. The limitations on our Board’s ability to amend the rights plan does not affect our Board’s power or ability to take any other action that is consistent
with its fiduciary duties, including without limitation accelerating or extending the expiration date of the rights, making any amendment to the rights plan that is permitted by the rights plan or adopting a new rights plan with such terms as our
Board determines in its sole discretion to be appropriate. 
 *        
*         * 

  
 C-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]