Document:

Exhibit 4.12

 

English language summary of Chinese language Joint Venture Agreement dated June 3,  2013, among SMIC Beijing, SMIC, ZDG and BIDIMC

 

Semiconductor Manufacturing International (Beijing) Corporation

 

Semiconductor Manufacturing International Corporation (SMIC)

 

Zhongguancun Development Group Co., Ltd.

 

Beijing Industrial Developing Investment Management Co., Ltd.

 

On Incorporation of Semiconductor Manufacturing North China (Beijing) Corporation

 

Joint Venture Contract

 

THIS DOCUMENT IS SUBJECT TO THE “TERMS AND CONDITIONS OF THE BONDS” IN THE OFFERING CIRCULAR AND THE TRUST DEED TO BE ENTERED INTO BY THE ISSUER AND THE TRUSTEE IN CONNECTION WITH THE OFFERING. THIS IS NOT AN OFFERING MEMORANDUM OR PROSPECTUS AND SHOULD NOT BE TREATED AS OFFERING MATERIAL OF ANY SORT AND IS FOR INFORMATION PURPOSES ONLY. THE INFORMATION CONTAINED HEREIN IS SUMMARY ONLY AND MUST BE CONSIDERED IN CONJUNCTION WITH THE OFFERING CIRCULAR RELATING TO THE BONDS.

 

The Convertible Bonds and the common shares of Semiconductor Manufacturing International Corporation into which the Bonds may become convertible into have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”). Securities referred to herein may not be offered or sold within the United States absent registration or an exemption from registration under the Securities Act and the rules and regulations thereunder. Semiconductor Manufacturing International Corporation does not intend to register any securities in the United States, and no public offering of securities will be made in the United States.

 

 

2013

 

Chapter 1 General Provisions

 

Pursuant to relevant laws and regulations of China and in the principle of equality and mutual benefit, Semiconductor Manufacturing International (Beijing) Corporation (hereinafter referred to as Party A), Semiconductor Manufacturing International Corporation (hereinafter referred to as Party B), Zhongguancun Development Group Co., Ltd. (hereinafter referred to as Party C) and Beijing Industrial Developing Investment Management Co., Ltd. (hereinafter referred to as Party D) have reached a consensus on investment to incorporate a Sino-foreign equity joint venture “Semiconductor Manufacturing North China (Beijing) Corporation (hereinafter referred to as “the joint venture”) in Beijing of China and have entered into the Contract through friendly consultation.

 

Chapter 2 Partners of the Joint Venture

 

Shareholders of the joint venture are as follows:

 

Party A: Semiconductor Manufacturing International (Beijing) Corporation

 

Party B: Semiconductor Manufacturing International Corporation

 

Party C: Zhongguancun Development Group Co., Ltd.

 

Party D: Beijing Industrial Developing Investment Management Co., Ltd.

 

Chapter 3 Incorporation of Joint Venture

 

3.1   Shareholders of the joint venture have reached a consensus on investment to incorporate the joint venture in accordance with relevant laws and regulations of China as well as agreements in the Contract.After the joint venture is incorporated, the Articles of Association specified by the Joint Venture Contract and jointly prepared by Shareholders of the joint venture shall be deemed as the basis.

 

3.2  Name and legal address of the joint venture

 

(1)   Name of the joint venture:

 

Semiconductor Manufacturing North China (Beijing) Corporation

 

(2)   Legal address of the joint venture:

 

18 Wenchang Road, Beijing Economic and Technological Development Area

 

3.3   All activities of the joint venture and that carried out by Shareholders for the joint venture must comply with laws and regulations which have been formulated and implemented and are revised from time to time by China. All lawful rights and interests of the joint venture and that owned by Shareholders due to the joint venture are protected by Chinese laws and regulations.

 

3.4   Organization form of the joint venture is a limited liability company. The joint venture implements the independent accounting system and bears civil liability independently with all its property.

 

3.5   During the period of joint venture, the joint venture is entitled to carry out operation and management independently within the scope stipulated by Chinese laws and regulations, Joint Venture Contract and the Articles of Association. Without consent from Shareholders of the joint venture, the joint venture shall not carry out the following activities:

 

THIS DOCUMENT IS SUBJECT TO THE “TERMS AND CONDITIONS OF THE BONDS” IN THE OFFERING CIRCULAR AND THE TRUST DEED TO BE ENTERED INTO BY THE ISSUER AND THE TRUSTEE IN CONNECTION WITH THE OFFERING. THIS IS NOT AN OFFERING MEMORANDUM OR PROSPECTUS AND SHOULD NOT BE TREATED AS OFFERING MATERIAL OF ANY SORT AND IS FOR INFORMATION PURPOSES ONLY. THE INFORMATION CONTAINED HEREIN IS SUMMARY ONLY AND MUST BE CONSIDERED IN CONJUNCTION WITH THE OFFERING CIRCULAR RELATING TO THE BONDS.

 

The Convertible Bonds and the common shares of Semiconductor Manufacturing International Corporation into which the Bonds may become convertible into have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”). Securities referred to herein may not be offered or sold within the United States absent registration or an exemption from registration under the Securities Act and the rules and regulations thereunder. Semiconductor Manufacturing International Corporation does not intend to register any securities in the United States, and no public offering of securities will be made in the United States.

 

 

A.  Alter the nature or business scope of the joint venture, or

 

B.   Carry out any transaction that is not negotiated by all Shareholders with independent interest (including but not limited to violation of fair transaction).

 

Chapter 4     Purpose, Business Scope and Production Scale of the Joint Venture

 

4.1  Purpose of the joint venture

 

To strengthen economic cooperation and technical exchange, the joint venture will apply advanced and appropriate technology as well as scientific operation and management method, to improve overall competitiveness of the enterprise, and create economic interest for all Shareholders of the joint venture.

 

4.2  Business scope of the joint venture:

 

Manufacturing, probing and testing of semiconductor (silicon wafer and all types of compound semiconductors) integrated circuit chips: development, design service, technical service, as well as manufacturing, testing and packaging of photomask related to integrated circuits; sales of self-produced commodities.

 

4.3  Production scale of the joint venture:

 

Production scale of the joint venture is about 35,000 chips every month and the production goal is planned to be realized in 2016.Detailed production plans of the joint venture are decided by the Board of Directors in accordance with production and operation situation as well as operation environment of the joint venture.

 

Chapter 5 Aggregate Investment and Registered Capital of the Joint Venture

 

5.1  Aggregate investment of the joint venture is USD 3.59 billion.It includes registered capital of USD 1.2 billion, shareholders’ capital increase or loan of USD 1.2 billion, as well as bank loan of USD 1.19 billion.

 

5.2  Registered capital of the joint venture is USD 1.2 billion, among which:

 

Party A: USD 0.495 billion, taking up 41.25% of the registered capital; Party B: USD 0.165 billion, taking up 13.75% of the registered capital; Party C: USD 0.486 billion, taking up 40.5% of the registered capital; Party D: USD 0.054 billion, taking up 4.5% of the registered capital.

 

5.3  Forms of investment

 

Any partner can invest currency equivalent or non-monetary asset approved by other Shareholders in the joint venture. Shareholders of the joint venture promise that they enjoy lawful rights of assets that are used for investment.Where non-monetary assets are used for investment, pricing of non-monetary assets can be evaluated by an intermediary that is approved by Shareholders of the joint venture and is provided with assets appraisal qualification within China.

 

5.4  Investment period

 

Shareholders of the joint venture shall make their own investment in installment within two years of the establishment of the joint venture.

 

In the case that amount of investment cannot be fully paid as scheduled, shareholders who fail to pay it off can only enjoy equity in accordance with the proportion of investment amount that is actually paid before all amount of investment is finally paid off.

 

Shareholders of the joint venture have reached the following consensus: Shareholders of the joint venture and related parties can mutually transfer all or part of their subscription rights and investment obligations on the condition that such matter is within the scope allowed by laws and legal procedures are followed, as well as in the premise that related parties of Shareholders of the joint venture sign a written agreement, content of which is consistent with the Contract, and promise to observe and execute the agreement. However, related parties of Party C and/or Party D cannot be the companies which produce the same products as that of Party A and/or Party B and compete with Party A and/or Party B with respect to integrated circuit.

 

THIS DOCUMENT IS SUBJECT TO THE “TERMS AND CONDITIONS OF THE BONDS” IN THE OFFERING CIRCULAR AND THE TRUST DEED TO BE ENTERED INTO BY THE ISSUER AND THE TRUSTEE IN CONNECTION WITH THE OFFERING. THIS IS NOT AN OFFERING MEMORANDUM OR PROSPECTUS AND SHOULD NOT BE TREATED AS OFFERING MATERIAL OF ANY SORT AND IS FOR INFORMATION PURPOSES ONLY. THE INFORMATION CONTAINED HEREIN IS SUMMARY ONLY AND MUST BE CONSIDERED IN CONJUNCTION WITH THE OFFERING CIRCULAR RELATING TO THE BONDS.

 

The Convertible Bonds and the common shares of Semiconductor Manufacturing International Corporation into which the Bonds may become convertible into have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”). Securities referred to herein may not be offered or sold within the United States absent registration or an exemption from registration under the Securities Act and the rules and regulations thereunder. Semiconductor Manufacturing International Corporation does not intend to register any securities in the United States, and no public offering of securities will be made in the United States.

 

 

5.5   After Shareholders of the joint venture accomplish investment of each period, the join venture shall immediately entrust an accounting firm registered in China to verify investment of the said Shareholders and issue “Capital Verification Report”.Based on Capital Verification Report of the accounting firm, the joint venture shall respectively issue “Investment Certificate” signed by chairman to each partner.

 

“Investment Certificate” can only be used to testify that Shareholders of the joint venture have made an investment and it cannot be regarded as stock or other negotiable security.Any partner shall not transfer its “Investment Certificate” to a third party or use it as external guarantee or for other purposes. Otherwise, such behavior of the said partner shall be considered invalid.In addition, without resolution of the Board of Directors, any partner shall not set any guarantee for its amount of investment in the joint venture.

 

5.6  Equity transfer

 

Shareholders of the joint venture can mutually transfer all or part of their equity and such matter shall be summited to approval authority for consent.

 

With consent from more than half of all Shareholders, any partner can transfer all or part of its equity to a third party, but such partner must comply with the provisions provided in the contract.

 

5.7   After incorporation of the joint venture, the joint venture can apply to domestic and overseas financing institutions for required loans by bearing independent responsibility in its own name. Shareholders shall offer assistance to fund-raising of the joint venture.

 

5.8  Unless otherwise agreed in the Contract, the joint venture will not bear any debt from any of the Shareholders.

 

Chapter 6 Responsibilities of Shareholders of the Joint Venture

 

6.1 Apart from responsibilities specified in other terms and conditions of the Contract as well as that set out in other contracts related to the Contract, Shareholders of the joint venture shall bear relevant obligations and responsibilities in accordance with following provisions.

 

(1)   Fulfill the responsibility to make an investment as scheduled in accordance with the Contract.

 

(2)   Apply to relevant government authorities of China for approval of incorporation of the joint venture. After approval is obtained, Party A should handle required procedures such as obtaining Business License as well as other relevant matters, and the other Shareholders should give necessary assistance.

 

(3)   Give assistance to the joint venture when it applies to relevant government authorities for obtaining all types of preferential policies that it can enjoy.

 

(4)   Take necessary measures to assist the joint venture to implement plans regarding bank loans.

 

(5)   Ensure that board meetings of the joint venture can be held on a regular basis in accordance with the Contract.

 

(6)   Exercise shareholder’s rights according to laws and do not abuse shareholder’s rights to prejudice interest of the joint venture.

 

(7)   Handle other matters entrusted by the joint venture and agreed and accepted by all parties.

 

THIS DOCUMENT IS SUBJECT TO THE “TERMS AND CONDITIONS OF THE BONDS” IN THE OFFERING CIRCULAR AND THE TRUST DEED TO BE ENTERED INTO BY THE ISSUER AND THE TRUSTEE IN CONNECTION WITH THE OFFERING. THIS IS NOT AN OFFERING MEMORANDUM OR PROSPECTUS AND SHOULD NOT BE TREATED AS OFFERING MATERIAL OF ANY SORT AND IS FOR INFORMATION PURPOSES ONLY. THE INFORMATION CONTAINED HEREIN IS SUMMARY ONLY AND MUST BE CONSIDERED IN CONJUNCTION WITH THE OFFERING CIRCULAR RELATING TO THE BONDS.

 

The Convertible Bonds and the common shares of Semiconductor Manufacturing International Corporation into which the Bonds may become convertible into have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”). Securities referred to herein may not be offered or sold within the United States absent registration or an exemption from registration under the Securities Act and the rules and regulations thereunder. Semiconductor Manufacturing International Corporation does not intend to register any securities in the United States, and no public offering of securities will be made in the United States.

 

 

Chapter 7     Technology Source of the Joint Venture

 

The joint venture and SMIC should separately reach an agreement on detailed technology license matters such as charges for use of the SMIC’s technology that should be paid by the joint venture.

 

Chapter 8     Operation and Management of the Joint Venture

 

8.1   Shareholders of the joint venture have reached an agreement and confirmed that SMIC should take full responsibility for daily operation and management of the joint venture, including but not limited to technology research and development, market development, production and operation, financial management and the like, and the joint venture should reasonably share costs related to management, market and sales of SMIC.SMIC shall fulfill its duty to guarantee relevant rights and interests of the joint venture.

 

Chapter 9     Profit Distribution and Fee Payment of the Joint Venture

 

9.1   Profits generating from operation of the joint venture should be distributed in accordance with investment proportion of Shareholders in the joint venture, and detailed solutions are decided by the Board of Directors.

 

9.2  Any fee payment and profit distribution under the Contract must comply with Chinese laws and regulations on tax collection and management.

 

Chapter 10 The Board of Directors of the Joint Venture

 

10.1  The Board of Directors is the highest authority in the joint venture to decide all major problems.

 

10.2   The Board of Directors is composed of five directors.Among them, three directors and two directors are respectively assigned by Party A and Party B. Chairman is nominated by Party A and vice chairman is nominated by Party C and then elected by the Board of Directors.Term of office of the directors is four years and they can reappointed consecutively by appointing parties. Before the term of office of any director expires, corresponding appointing party can revoke its appointment and designate a successor.Where any partner appoints, dismisses and continues to designate any director, such partner shall send a written notice to the other Shareholders within thirty days after such appointment or dismissal.

 

Party D can appoint one board observer to attend the board meeting.

 

10.3  Board meeting can only be held with the attendance of more than two thirds of the directors.Where it cannot ensure that more than two thirds of directors can attend a meeting on time, time for the meeting can be adjusted within five working days before and after the scheduled date.Where more than two thirds of directors still cannot attend the meeting on time after three times of adjustment, any appointing party is obligated to request any appointed director who fails to attend the meeting after three adjustments to issue a written authorization to entrust other person to participate in the meeting and take a vote on behalf of the director.Where the number of directors attending the meeting is less than two thirds of directors on the day on which the meeting is held after three times of adjustment, it shall be considered that the directors who fail to attend the meeting empower the attendees to participate in the meeting and take a vote on behalf of them.

 

Meeting of the Board of Directors can be held in the form of teleconference.In the case that written consent is obtained from all directors, board meetings may not be held and decisions can be made directly, but all directors should sign documents regarding the decisions.One person can only cast one vote for resolutions of the Board of Directors.

 

THIS DOCUMENT IS SUBJECT TO THE “TERMS AND CONDITIONS OF THE BONDS” IN THE OFFERING CIRCULAR AND THE TRUST DEED TO BE ENTERED INTO BY THE ISSUER AND THE TRUSTEE IN CONNECTION WITH THE OFFERING. THIS IS NOT AN OFFERING MEMORANDUM OR PROSPECTUS AND SHOULD NOT BE TREATED AS OFFERING MATERIAL OF ANY SORT AND IS FOR INFORMATION PURPOSES ONLY. THE INFORMATION CONTAINED HEREIN IS SUMMARY ONLY AND MUST BE CONSIDERED IN CONJUNCTION WITH THE OFFERING CIRCULAR RELATING TO THE BONDS.

 

The Convertible Bonds and the common shares of Semiconductor Manufacturing International Corporation into which the Bonds may become convertible into have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”). Securities referred to herein may not be offered or sold within the United States absent registration or an exemption from registration under the Securities Act and the rules and regulations thereunder. Semiconductor Manufacturing International Corporation does not intend to register any securities in the United States, and no public offering of securities will be made in the United States.

 

 

10.4  Board meeting should be held at least once a year and the chairman is responsible for convening and holding the meeting; where chairman fails to or does not perform his/her duty, vice chairman can convene and hold the meeting; where vice chairman fails to or does not perform his/her duty, more than half of directors can elect one director to convene and hold the meeting.Meeting of the Board of Directors should be held at the place where the joint venture locates or other place suggested by chairman.Chairman may convene an interim meeting based on a proposal made by more than half of the directors.

 

Where a board meeting will be convened, chairman must send written notices to all directors ten days in advance (three days in advance for an interim meeting), and notices should specify matters for discussion. With consent from all directors, notices may not be given in advance. All directors should confirm whether or not they will attend the meeting within three days after receiving the written notices.

 

10.5  In principle, resolutions of the Board of Directors should be agreed by more than half of the directors at the meeting unless otherwise provided in the contract.

 

For following matters, resolutions can be made after directors that attend the meeting reach a consensus:

 

(1)   Modification of the Articles of Association of the joint venture;

 

(2)     Suspension and dissolution of the joint venture;

 

(3)   Resolutions regarding the increase or decrease of registered capital of the joint venture;

 

(4)   Resolutions regarding combination, separation or form change of the joint venture.

 

For other matters, resolutions can be made in accordance with rules of procedure set out in the Articles of Association of the joint venture.

 

10.6   Where Shareholders of the joint venture fail to make an investment in accordance with agreement in the Contract, the Board of Directors can convene an urgent meeting for consultation within ten days after occurrence of above-mentioned matters.

 

10.7   Chairman is the legal representative of the joint venture.When chairman fails to preform his/her duty, vice chairman or other director should be empowered to perform the duty on behalf of the chairman.Where there is no authorization, corresponding appointing party can revoke its appointment and designate a successor as the director. New chairman is nominated by Party A and elected by the Board of Directors. Thereafter newly elected chairman will be the legal representative of the joint venture.

 

10.8   Minutes should be prepared for all board meetings of the joint venture and should be kept by the joint venture. The joint venture shall deliver copies of the said minutes to all directors.

 

Chapter 11 Operation and Management Office of the Joint Venture

 

11.1   The joint venture sets up an operation and management office to take charge of daily operation and management of the joint venture. Senior managers of the office are comprised of one general manager, one deputy general manager and one financial controller. Above-mentioned senior managers are nominated by Party A and Party B and are hired or dismissed by the Board of Directors.

 

11.2   The general manager is directly responsible for the Board of Directors. The general manager is the first responsible person for daily operation management of the joint venture, executes resolutions of board meetings and takes charge of daily operation management of the joint venture; deputy general manager should give assistance to general manager with respect to work; financial controller is in charge of financial management of the joint venture.

 

THIS DOCUMENT IS SUBJECT TO THE “TERMS AND CONDITIONS OF THE BONDS” IN THE OFFERING CIRCULAR AND THE TRUST DEED TO BE ENTERED INTO BY THE ISSUER AND THE TRUSTEE IN CONNECTION WITH THE OFFERING. THIS IS NOT AN OFFERING MEMORANDUM OR PROSPECTUS AND SHOULD NOT BE TREATED AS OFFERING MATERIAL OF ANY SORT AND IS FOR INFORMATION PURPOSES ONLY. THE INFORMATION CONTAINED HEREIN IS SUMMARY ONLY AND MUST BE CONSIDERED IN CONJUNCTION WITH THE OFFERING CIRCULAR RELATING TO THE BONDS.

 

The Convertible Bonds and the common shares of Semiconductor Manufacturing International Corporation into which the Bonds may become convertible into have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”). Securities referred to herein may not be offered or sold within the United States absent registration or an exemption from registration under the Securities Act and the rules and regulations thereunder. Semiconductor Manufacturing International Corporation does not intend to register any securities in the United States, and no public offering of securities will be made in the United States.

 

 

11.3   Where the general manager, deputy general manager or other senior managers have any malpractice or misconduct, they will be dismissed at any time on the basis of resolutions made by the Board of Directors.

 

Chapter 12 Tax, Finance and Audit of the Joint Venture

 

12.1  The joint venture shall pay all taxes in accordance with relevant laws and regulations as well as ordinances and provisions of China.

 

12.2   Employees of the joint venture shall pay individual income tax in accordance with Individual Income Tax Law of the People’s Republic of China and their individual income tax will be deducted and paid by the joint venture.

 

12.3   Pursuant to relevant laws and regulations as well as ordinances and provisions of China, the joint venture should use its after-tax profits in enterprise development and welfare of its employees. The proportion for use of profits will be decided by the Board of Directors in accordance with operation situation of the company.

 

12.4   An accounting year of the joint venture is from January 1 to December 31 that year. USD is the standard accounting currency for the company. Accounting books, statements, vouchers, court summons and other related accounting materials of the joint venture should be prepared in Chinese.

 

12.5  For financial audit, the joint venture hires accountants registered in China to carry out annual inspection and audition, and issue audit reports.

 

Annual audit reports by the accounting firm shall be delivered to the Board of Directors within ninety days after an accounting year and the Board of Directors shall decide whether to approve the reports within thirty days after receiving the reports. The reports should be delivered to Shareholders of the joint venture within thirty days after approval of the Board of Directors is obtained.

 

Chapter 13 Personnel and Labor Management of the Joint Venture

 

13.1   The joint venture shall formulate the labor and personnel system, including the recruitment, employment, labor insurance and labor protection, in accordance with Chinese Labor Law, Chinese Labor Contract Law, and laws and regulations in other labor fields.

 

The joint venture shall consult the opinions of the joint venture union during formulating and signing the rules and regulations and the suggestions will be effective after the review of the board.

 

13.2  The joint venture can autonomously employ the general personnel.

 

13.3  The joint venture shall sign labor contract with workers in accordance with law.

 

13.4  Joint venture shall strive to improve the workers’ business capability and technical skills. Workers’ training program shall be approved by the general manager before execution.

 

13.5   Joint venture shall strengthen the workers’ labor protection, improve working conditions and ensure safety production. Necessary expenses shall be determined by the general manager with reference to relevant Chinese laws and regulations and the actual situation of joint venture. It will be executed after consulting the joint venture union and approved by the Board of Directors.

 

Chapter 14 Duration of the Joint Venture

 

14.1   The duration of the joint venture shall be 25 years from the issuance date of the business license. Issuance date of the business license shall be the date of incorporation of the joint venture.

 

THIS DOCUMENT IS SUBJECT TO THE “TERMS AND CONDITIONS OF THE BONDS” IN THE OFFERING CIRCULAR AND THE TRUST DEED TO BE ENTERED INTO BY THE ISSUER AND THE TRUSTEE IN CONNECTION WITH THE OFFERING. THIS IS NOT AN OFFERING MEMORANDUM OR PROSPECTUS AND SHOULD NOT BE TREATED AS OFFERING MATERIAL OF ANY SORT AND IS FOR INFORMATION PURPOSES ONLY. THE INFORMATION CONTAINED HEREIN IS SUMMARY ONLY AND MUST BE CONSIDERED IN CONJUNCTION WITH THE OFFERING CIRCULAR RELATING TO THE BONDS.

 

The Convertible Bonds and the common shares of Semiconductor Manufacturing International Corporation into which the Bonds may become convertible into have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”). Securities referred to herein may not be offered or sold within the United States absent registration or an exemption from registration under the Securities Act and the rules and regulations thereunder. Semiconductor Manufacturing International Corporation does not intend to register any securities in the United States, and no public offering of securities will be made in the United States.

 

 

14.2  At six months prior to the expiration of the duration of the joint venture, the parties of the joint venture may discuss whether to extend the duration in accordance with the company’s operation situations.

 

14.3  If the parties of joint venture agree to extend the duration of the joint venture, the company shall apply to the original approving authority for extension of the duration of the joint venture 6 months prior to the expiration of the duration of the joint venture. After being approved by the original approval authority, the joint venture shall go through the procedures of alteration in the original approval office.

 

Chapter 15 Validation, Modification, Alteration and Rescission of the Joint Venture

 

15.1   The contract shall be approved by the parties of the joint venture before signature and be approved by the approval authorities and will be valid at the date of approval. After validation, unless halfway terminated in accordance with the contract provisions, the contract shall be continuously valid during the period of joint venture.

 

15.2   Both the contract and appendix shall be deemed as an integral part of the contract. Any modification or alteration shall be agreed and signed a written contract by the parties of the joint venture and approved by the approval authority before validation.

 

15.3   If any party of the joint venture seriously breaches the contract and does not take remedial measures after negotiation, the observant party has the right to unilaterally terminate the contract and demand the default party to compensate for losses incurred.

 

15.4  Unless otherwise specified in the contract, any party shall not terminate the contract without the authorization of the other parties of the joint venture. Any losses caused thereby shall be undertaken by the party who terminates the contract.

 

Chapter 16 Dissolution and Liquidation of the Joint Venture

 

The joint venture shall be dissolved under the following situations:

 

(1)   The expiration of the duration of joint venture;

 

(2)   The company suffers heavy losses and is unable to continue its operation.

 

(3)   A party of joint venture does not comply with its duty specified in the agreement, contract and regulations and thus the company is unable to continue its operation.

 

(4)   The company is unable to continue its operation because of the heavy losses resulting from natural disasters and wars.

 

(5)   The joint venture fails to achieve its objectives of operation and has no promising future for development.

 

(6)   Other dissolution causes specified in the contract and regulations of the joint venture have appeared.

 

In case that the situations specified in article (2), (4), (5) and (6) occur, the board shall submit the application to the approval authority for approval.

 

In case of the situation specified in article (3), the party who fails to perform the obligations specified in the agreement, contract and regulations of the joint venture should compensate to the joint venture for the resulting losses incurred.

 

The joint venture shall undertake its liability for its debts with its entire assets. The remaining property after the clearance of the joint venture shall be used to pay off the initial contribution of Party C and Party D. If the property is remained, it shall be used to pay off the initial contribution of Party A and Party B. If it is still remained, it shall be used to pay off the other capital contribution made by Party A, B, C and D. If the property is still remained after executing the above steps, the remaining property shall be distributed in accordance with the proportions of the actual capital contribution made by the parties of the joint venture.

 

THIS DOCUMENT IS SUBJECT TO THE “TERMS AND CONDITIONS OF THE BONDS” IN THE OFFERING CIRCULAR AND THE TRUST DEED TO BE ENTERED INTO BY THE ISSUER AND THE TRUSTEE IN CONNECTION WITH THE OFFERING. THIS IS NOT AN OFFERING MEMORANDUM OR PROSPECTUS AND SHOULD NOT BE TREATED AS OFFERING MATERIAL OF ANY SORT AND IS FOR INFORMATION PURPOSES ONLY. THE INFORMATION CONTAINED HEREIN IS SUMMARY ONLY AND MUST BE CONSIDERED IN CONJUNCTION WITH THE OFFERING CIRCULAR RELATING TO THE BONDS.

 

The Convertible Bonds and the common shares of Semiconductor Manufacturing International Corporation into which the Bonds may become convertible into have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”). Securities referred to herein may not be offered or sold within the United States absent registration or an exemption from registration under the Securities Act and the rules and regulations thereunder. Semiconductor Manufacturing International Corporation does not intend to register any securities in the United States, and no public offering of securities will be made in the United States.

 

 

Chapter 17 Confidentiality of the Parties of the Joint Venture

 

All parties of the joint venture shall keep strictly confidential for the information obtained by the signing and execution of the contract and related items as stipulated in the contract.

 

Chapter 18 Force Majeure

 

18.1  Any failure or partly failure of either party to perform the contractual obligations because of force majesty and no fault shall not constitute the breach of the contract. However, the necessary remedy measures shall be taken if conditions permit so as to reduce the losses caused by the force majeure.

 

18.2   Any party suffered from force majeure shall inform other joint venture Shareholders the details of the incident in written form as soon as possible and submit the report of failure or partly failure of performance of the contractual obligations and reasons for delay performance within 15 days after the occurrence of the incident.

 

18.3  Force majeure refers to the circumstances that are unforeseeable and inevitable for any party, including but not limited to the following aspects:

 

(1)   Declared or undeclared war, war state, blockade, embargo, government decree or general mobilization, which directly influences the incorporation of the joint venture company;

 

(2)   Domestic disturbance that directly influences the incorporation of the joint venture company

 

(3)   Fire disaster, flood, typhoon, hurricane, tsunami, landslide, earthquake, explosion, pestilence or epidemic disease, and other events caused by natural factors.

 

(4)   Other events of force majeure that are agreed by all parties and directly influence the incorporation of the joint venture company.

 

Chapter 19 Dispute Resolution

 

19.1 All disputes arising from the performance of the contract or related to the contract shall be negotiated and settled in a spirit of friendly cooperation. If the disputes are not settled through full consultation, any party has the right to apply for arbitration to China International Economic and Trade Arbitration Commission (CIETAC) in Beijing. The arbitration decision shall be accepted as final and all parties of the joint venture shall obey and execute.

 

Chapter 20 Renegotiation

 

20.1 Under any unforeseeable situation which may cause parties unable to fulfill its obligations during the implementation of the contract, all parties can renegotiate the relevant issues.

 

Chapter 21 Applicable Law

 

21.1 The applicable laws for the contract include laws, rules and regulations of People’s Republic of China. The contract terms shall be restricted by the applicable laws, regulations and accounting standards, and include the requirements of any governing body, including but not limited to Hong Kong Stock Exchange and New York Stock Exchange.

 

THIS DOCUMENT IS SUBJECT TO THE “TERMS AND CONDITIONS OF THE BONDS” IN THE OFFERING CIRCULAR AND THE TRUST DEED TO BE ENTERED INTO BY THE ISSUER AND THE TRUSTEE IN CONNECTION WITH THE OFFERING. THIS IS NOT AN OFFERING MEMORANDUM OR PROSPECTUS AND SHOULD NOT BE TREATED AS OFFERING MATERIAL OF ANY SORT AND IS FOR INFORMATION PURPOSES ONLY. THE INFORMATION CONTAINED HEREIN IS SUMMARY ONLY AND MUST BE CONSIDERED IN CONJUNCTION WITH THE OFFERING CIRCULAR RELATING TO THE BONDS.

 

The Convertible Bonds and the common shares of Semiconductor Manufacturing International Corporation into which the Bonds may become convertible into have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”). Securities referred to herein may not be offered or sold within the United States absent registration or an exemption from registration under the Securities Act and the rules and regulations thereunder. Semiconductor Manufacturing International Corporation does not intend to register any securities in the United States, and no public offering of securities will be made in the United States.Exhibit 10.1

 

FORBEARANCE AGREEMENT REGARDING CREDIT AGREEMENT

 

 

THIS FORBEARANCE AGREEMENT REGARDING CREDIT AGREEMENT is made as of April 11, 2014 (this “Agreement”) with reference to that certain Credit Agreement dated as of August 9, 2010 (as amended and as in effect immediately prior to the effectiveness of this Agreement, the “Credit Agreement”), among CommonWealth REIT, a real estate investment trust organized under the laws of the State of Maryland (the “Borrower”), the lenders parties thereto (the “Lenders”), Wells Fargo Bank, National Association, as Administrative Agent (the “Administrative Agent”), and certain other parties.

 

WHEREAS, the Borrower has notified the Administrative Agent and the Lenders that an Event of Default has occurred under Section 10.1.(l)(ii) of the Credit Agreement as a result of the entire Board of Trustees being removed without cause pursuant to shareholder written consents (the “Change of Control Event of Default”);

 

WHEREAS, the Borrower desires that the Administrative Agent, the Issuing Bank and the Lenders forbear from exercising certain remedies available to them under the Loan Documents subject to the terms of this Agreement; and

 

WHEREAS, subject to the terms and conditions contained herein, the Administrative Agent, the Issuing Bank and the Lenders are willing to forbear from exercising certain remedies available to them solely as a result of the existence of the Change of Control Event of Default or the occurrence of any of the Events of Default described on Schedule 1 attached hereto (together with the Change of Control Event of Default, the “Specified Events of Default”);

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the parties hereto agree as follows:

 

Section 1.  Agreement to Forbear.  Subject to the terms and conditions of this Agreement, the Administrative Agent, the Issuing Bank and the Lenders each agrees that during the Forbearance Period (as defined below) it will not, solely by reason of the existence of the Change of Control Event of Default or the occurrence of any other Specified Event of Default exercise any of the following rights or remedies available to the Administrative Agent, the Issuing Bank or any of the Lenders under or in respect of the Credit Agreement or the other Loan Documents:

 

(a)                               the right to declare (i) the principal of, and accrued interest on, the Loans and the Notes, (ii) an amount equal to the Stated Amount of all Letters of Credit outstanding as of the date of the occurrence of a Specified Event of Default and (iii) all of the other Obligations, to be due and payable;

 

(b)                              the right to terminate the Commitments and the Swingline Commitment, or the obligation of the Issuing Bank to issue Letters of Credit under the Credit Agreement; and

 

(c)                               subject to the immediately following paragraph, the right to require that any or all of the Obligations bear interest at the Post-Default Rate.

 

The Borrower acknowledges that during the period from the date of this Agreement until the date 45 days after the date of this Agreement (or such longer period as the Requisite Lenders may agree in their sole discretion), the Administrative Agent, the Issuing Bank and the Lenders may meet or have discussions with individuals who may become members of the Borrower’s Board of Trustees or the Borrower’s senior management, among other things, to allow such individuals to make presentations regarding their business plans for the Borrower.  The Borrower consents to the Administrative Agent, the Issuing Bank

 

 

and the Lenders participating in such meetings and discussions.  If they so elect in their sole discretion, the Requisite Lenders may, following any such meetings or discussions or in any event the end of such period, by written notice from the Administrative Agent to the Borrower, elect, effective upon the giving of such notice, to apply the Post-Default Rate to any or all of the outstanding Obligations regardless of whether such Obligations have not been paid when due.  Failure of the Requisite Lenders to provide such notice shall not constitute a waiver of their right to impose the Post-Default Rate of interest at any other time.

 

Section 2.  Duration of Forbearance Period.  The agreement of the Administrative Agent, the Issuing Bank and the Lenders contained in the immediately preceding Section shall remain in effect during the period (the “Forbearance Period”) from the date this Agreement first becomes effective in accordance with Section 4 below to the first to occur of the following:

 

(a)                               5:00 p.m. Eastern time on July 10, 2014;

 

(b)                              5:00 p.m. Eastern time on the date 21 calendar days following the date on which the shareholders of the Borrower elect a replacement Board of Trustees;

 

(c)                               any Event of Default (other than any of the Specified Events of Default);

 

(d)                              the Borrower permits the aggregate amount of Unrestricted Cash to be less than (i) $150,000,000 plus (ii) 80.0% of the Net Cash Proceeds received by the Borrower or any of its Subsidiaries after the date hereof from any Asset Dispositions;

 

(e)                               the Borrower exercises its Repurchase Right (as defined in Articles Supplementary (the “Series D Preferred Designation”) for the Borrower’s 6-1/2% Series D Cumulative Convertible Preferred Shares (the “Series D Preferred Shares”)); or

 

(f)                                the Borrower shall fail to perform or observe any term, covenant, condition or agreement on its part to be performed or observed and contained in this Agreement and the Administrative Agent, at the direction of the Requisite Lenders, shall have given the Borrower written notice that the Forbearance Period has terminated because of such failure.

 

Upon the termination of the Forbearance Period, the Administrative Agent, the Issuing Bank and the Lenders shall have, and may exercise from time to time, any and all of the rights and remedies available to them under the Loan Documents, Applicable Law or otherwise as a consequence of any Default or Event of Default then in existence, without further notice or demand.

 

Section 3.  Acknowledgments of Borrower.  The Borrower acknowledges that:

 

(a)                               as of the date hereof, the Lenders have not terminated the Commitments, and the facility fees payable under Section 3.5.(b) of the Credit Agreement will continue to accrue and be due as provided in the Credit Agreement; and

 

(b)                              because an Event of Default exists, the Borrower may not request, and the Administrative Agent, the Issuing Bank and the Lenders shall not be obligated to permit, the making, issuance or occurrence of, any Loans or Letters of Credit or the Continuation of any LIBOR Loans or the Conversion of any Base Rate Loans into LIBOR Loans.

 

Section 4.  Conditions Precedent.  The effectiveness of this Agreement (other than Section 10 below which shall become effective upon the Borrower’s execution and delivery of a counterpart of this

 

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Agreement to the Administrative Agent) is subject to receipt by the Administrative Agent of each of the following, each in form and substance satisfactory to the Administrative Agent:

 

(a)                               a counterpart of this Agreement duly acknowledged and agreed by the Borrower and the Guarantors, and executed and delivered by the Administrative Agent and Lenders constituting the Requisite Lenders;

 

(b)                              receipt by the Administrative Agent of the fees payable under Section 6 below and evidence that all other fees, expenses and reimbursement amounts due and payable to the Administrative Agent, including without limitation, the fees and expenses of counsel to the Administrative Agent, have been paid;

 

(c)                               projected statements of cash flow for the Borrower and its Subsidiaries for the immediately following two fiscal quarters, which may be subject to reasonable assumptions and qualifications;

 

(d)                              evidence that a forbearance arrangement (the “Term Loan Forbearance Agreement”) upon substantially the same terms and conditions as this Agreement has been entered into with respect to that certain Term Loan Agreement dated as of December 16, 2010 by and among the Borrower, the financial institutions party thereto as “Lenders”, Wells Fargo Bank, National Association, as Administrative Agent, and the other parties thereto (as amended and in effect on the date hereof, the “Term Loan Agreement”); and

 

(e)                               such other documents, instruments and agreements as the Administrative Agent may reasonably request.

 

Section 5.  Certain Permitted Dispositions; Conversion, etc. of Series D Preferred Shares.  The Lenders agree that during the Forbearance Period the existence of the Change of Control Event of Default and the occurrence of any of the other Specified Events of Default shall not (i) prohibit the Borrower, any other Loan Party or any other Subsidiary from conveying, selling, transferring or otherwise disposing of any of the Properties identified on Schedule 2 attached hereto otherwise permitted under Section 9.4.(a) of the Credit Agreement or (ii) prohibit the Borrower from issuing its common shares, or from paying cash in lieu of issuing fractional common shares, in each case solely in connection with the exercise by a holder, in accordance with the Series D Preferred Designation, of its right to convert its Series D Preferred Shares into common shares of the Borrower.

 

Section 6.  Forbearance Fee.  As provided in Section 4(b) above, it is a condition to the effectiveness of this Agreement that the Borrower pay to the Administrative Agent for the account of each Lender executing and delivering this Agreement prior to the satisfaction or waiver of the other conditions precedent in Section 4 above a fee equal to 0.05% of the amount of such Lender’s Commitment.

 

Section 7.  No Waiver.  Neither the existence of this Agreement nor the agreement of the Administrative Agent, the Issuing Bank and the Lenders to forbear as provided herein is, nor shall either be deemed or construed in any way to be, a waiver of any Default or Event of Default, including without limitation, the Change of Control Event of Default or any of the other Specified Events of Default should they occur.  Each Lender confirms its continuing obligation to the Issuing Bank under Section 2.2.(j) of the Credit Agreement regarding drawings on Letters of Credit honored by the Issuing Bank and not reimbursed by the Borrower.  Further, each Lender confirms that the existence of the Change of Control Event of Default and the occurrence of any of the other Specified Events of Default shall not prevent the reallocation of

 

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outstanding Letter of Credit Liabilities and Swingline Loans among Non-Defaulting Lenders pursuant to Section 3.9.(d) of the Credit Agreement.

 

Section 8.  Understandings.  This Agreement is given upon the condition that (a) this Agreement is understood to be in the nature of an interim arrangement among the Administrative Agent, the Issuing Bank, the Lenders and the Borrower, (b) none of the Administrative Agent, the Issuing Bank and the Lenders has given any assurance that it will provide a waiver of the Change of Control Event of Default, any of the other Specified Events of Default or any other Default or Event of Default and (c) none of the Administrative Agent, the Issuing Bank and the Lenders has given any assurance that it will or is under any obligation to extend, and in its sole and absolute discretion may refuse to extend, its forbearance beyond the Forbearance Period.

 

Section 9.  Effect.  The terms and conditions of the Credit Agreement and the other Loan Documents remain in full force and effect.  The Credit Agreement is hereby ratified and confirmed in all respects.  Except as expressly provided in this Agreement, nothing in this Agreement shall limit, impair or constitute a waiver of the rights, powers or remedies available to the Administrative Agent, the Issuing Bank or the Lenders under the Credit Agreement, any other Loan Document, Applicable Law or otherwise.  No failure or delay by the Administrative Agent, the Issuing Bank, the Lenders or any one of them in exercising any right, power or privilege under any Loan Document, or any other action taken or not taken or statement made, during the period prior to the date hereof or during the Forbearance Period shall operate as a waiver thereof or obligate the Administrative Agent, the Issuing Bank or any Lender to agree to an extension of the forbearance provided hereby or any waiver under or amendment to any Loan Document.

 

Section 10.  Release of Claims.  Notwithstanding the failure of any condition precedent set forth in Section 4 above to be satisfied, the Borrower hereby forever releases and forever discharges the Administrative Agent, the Issuing Bank, the Lenders, the Lead Arrangers, the Syndication Agent, the Documentation Agents and their respective Affiliates and their and their Affiliates’ respective subsidiaries, parents, shareholders, partners, officers, directors, employees, agents, attorneys, heirs, successors and assigns, both present and former (collectively, the “Released Parties”) from any and all claims, actions, causes of action, defenses, suits, controversies, damages, judgments and demands whatsoever, asserted or unasserted, in contract, tort, law, equity or otherwise (collectively, “Claims”) which the Borrower has or may have against any of the Released Parties by reason of any action, failure to act, matter or thing whatsoever arising from or based on facts occurring prior to the date hereof that in any way may arise out of, be connected to or in any other way be related to any of the Loan Documents, including but not limited to any Claim that relates to, in whole or in part, directly or indirectly, (a) the making or administration of the Loans or Letters of Credit, (b) any such Claims based on fraud, mistake, duress, usury or misrepresentation, or any other Claim based on so-called “lender liability” theories, (c) any actions or omissions of any of the Administrative Agent, the Issuing Bank, any Lender or any other Released Party in connection with the initiation or continuing exercise of any right or remedy contained in the Loan Documents or available under Applicable Law or otherwise, (d) lost profits, (e) loss of business opportunity, (f) increased financing costs, (g) increased legal or other administrative fees or (h) damages to business reputation.  Furthermore, the Borrower hereby covenants and agrees not to bring, commence, prosecute, maintain, or cause or permit to be brought, commenced, prosecuted or maintained, any suit or action, either at law or in equity, in any court or before any other administrative or judicial authority, regarding any cause of action or other Claim the Borrower may have against any of the Administrative Agent, the Issuing Bank, any Lender or any other Released Party arising out of, in connection with or in any way relating to any of the Loan Documents or otherwise.

 

Section 11.  No Third Party Beneficiaries.  No Person other than the Borrower, the Administrative Agent, the Issuing Bank and the Lenders is intended to be a beneficiary hereof and no

 

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Person other than the Borrower, the Administrative Agent, the Issuing Bank and the Lenders shall be authorized to rely upon the contents of this Agreement.

 

Section 12.  Entire Agreement. This Agreement and the other Loan Documents constitute the entire understanding of the parties with respect to the subject matter hereof and thereof.

 

Section 13.  Loan Document.  This Agreement shall constitute a “Loan Document” for all purposes of the Credit Agreement.

 

Section 14.  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

Section 15.  Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and shall be binding upon all parties, their successors and assigns. To facilitate execution, this Agreement and any amendments, waivers, consents or supplements may be executed in any number of counterparts as may be convenient or required (which may be effectively delivered by facsimile, in portable document format (“PDF”) or other similar electronic means).  It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of all persons required to bind any party, appear on each counterpart.  All counterparts shall collectively constitute a single document.  It shall not be necessary in making proof of this document to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto.

 

Section 16.  Amendments.  This Agreement may not be amended except in a writing signed by the applicable Lenders required under the terms of the Credit Agreement, the Administrative Agent and the Borrower.

 

Section 17.  Definitions.  All capitalized terms not otherwise defined herein are used herein with the respective definitions given them in the Credit Agreement.  The following terms shall have the following meanings for purposes of this Agreement:

 

“Asset Disposition” means the sale, transfer, license, lease or other disposition (including any sale and leaseback transaction and any sale or issuance of Equity Interests in a Subsidiary) of any property by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.

 

“Net Cash Proceeds” means, with respect to an Asset Disposition, (a)  all cash and Cash Equivalents received in connection with such Asset Disposition (including any cash and Cash Equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received) minus (b) the sum of (i) the principal amount, premium or penalty, if any, interest and other amounts on any Indebtedness that is secured by any of the assets subject to such Asset Disposition and is required to be repaid (or defeased with cash proceeds from such Asset Disposition) in connection with such Asset Disposition, (ii) reasonable out-of-pocket fees and expenses (including attorneys’ fees, investment banking or defeasance fees, survey costs, title insurance premiums, and related search and recording charges, transfer taxes, deed or mortgage recording taxes, other customary expenses and brokerage, consultant and other customary fees) incurred by the Borrower or any Subsidiary in connection with such Asset Disposition, (iii) taxes paid or reasonably estimated to be payable in connection with such Asset Disposition and (iv) any reserve for adjustment in respect of the sale price of such asset or assets established in accordance with GAAP; provided that (x) no net cash

 

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proceeds calculated in accordance with the foregoing realized in a single transaction or series of related transactions shall constitute Net Cash Proceeds unless such net cash proceeds shall exceed $10,000,000 in the aggregate and (y) no such net cash proceeds shall constitute Net Cash Proceeds until the aggregate amount of all such net cash proceeds from Asset Dispositions effected after the date of this Agreement shall exceed $20,000,000.

 

“Unrestricted Cash” means cash and Cash Equivalents held by the Borrower and its Subsidiaries other than tenant deposits and other cash and Cash Equivalents that are subject to a Lien or a Negative Pledge (other than pursuant to the Credit Agreement or the Term Loan Agreement) or the disposition of which is restricted in any way.

 

 

 

[Signatures on Following Page]

 

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[Signature Page to Forbearance Agreement Regarding Credit Agreement

for CommonWealth REIT]

 

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION, as
   Administrative Agent, Issuing Bank, Swingline Lender and a
   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ D. Bryan Gregory
    	
 
    
	
 
    	
Name:
    	
D. Bryan Gregory
    	
 
    
	
 
    	
Title:
    	
Director
    	
 
    
						

 

 

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BANK OF AMERICA, N.A.,   as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Cheryl Sneor
    	
 
    
	
 
    	
Name:
    	
Cheryl Sneor
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
						

 

 

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REGIONS BANK, as a   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael R. Mellott
    	
 
    
	
 
    	
Name:
    	
Michael R. Mellott
    	
 
    
	
 
    	
Title:
    	
Director
    	
 
    
						

 

 

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ROYAL BANK OF CANADA,   as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dan LePage
    	
 
    
	
 
    	
Name:
    	
Dan LePage
    	
 
    
	
 
    	
Title:
    	
Authorized Signatory
    	
 
    
						

 

 

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MIZUHO BANK, LTD., as a   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Noel Purcell
    	
 
    
	
 
    	
Name:
    	
Noel Purcell
    	
 
    
	
 
    	
Title:
    	
Authorized Signatory
    	
 
    
						

 

 

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PNC BANK, NATIONAL   ASSOCIATION, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John R. Roach, Jr.
    	
 
    
	
 
    	
Name:
    	
John R. Roach, Jr.
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
						

 

 

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TD BANK, N.A., as a   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paula Mello
    	
 
    
	
 
    	
Name:
    	
Paula Mello
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
						

 

 

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COMPASS BANK, as a   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ S. Kent Gorman
    	
 
    
	
 
    	
Name:
    	
S. Kent Gorman
    	
 
    
	
 
    	
Title:
    	
Senior Vice President
    	
 
    
						

 

 

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SUMITOMO MITSUI BANKING   CORPORATION, as a
   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ryuichi Nishizawa
    	
 
    
	
 
    	
Name:
    	
Ryuichi Nishizawa
    	
 
    
	
 
    	
Title:
    	
Managing Director
    	
 
    
						

 

 

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THE BANK OF NEW YORK   MELLON, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Helga Blum
    	
 
    
	
 
    	
Name:
    	
Helga Blum
    	
 
    
	
 
    	
Title:
    	
Managing Director
    	
 
    
						

 

 

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BRANCH BANKING AND   TRUST COMPANY, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steve Whitcomb
    	
 
    
	
 
    	
Name:
    	
Steve Whitcomb
    	
 
    
	
 
    	
Title:
    	
Senior Vice President
    	
 
    
						

 

 

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CAPITAL ONE, NATIONAL   ASSOCIATION, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Frederick H.   Denecke
    	
 
    
	
 
    	
Name:
    	
Frederick H. Denecke
    	
 
    
	
 
    	
Title:
    	
Senior Vice President
    	
 
    
						

 

 

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THE BANK OF   TOKYO-MITSUBISHI UFJ, LTD., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Charles Stewart 
    	
 
    
	
 
    	
Name:
    	
Charles Stewart 
    	
 
    
	
 
    	
Title:
    	
Director
    	
 
    
						

 

 

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COMERICA BANK, as a   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Casey L. Stevenson
    	
 
    
	
 
    	
Name:
    	
Casey L. Stevenson
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
						

 

 

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U.S. BANK NATIONAL   ASSOCIATION, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Heller
    	
 
    
	
 
    	
Name:
    	
David Heller
    	
 
    
	
 
    	
Title:
    	
Senior Vice President
    	
 
    
						

 

 

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UNION BANK, N.A., as a   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John Feeney 
    	
 
    
	
 
    	
Name:
    	
John Feeney
    	
 
    
	
 
    	
Title:
    	
Senior Director
    	
 
    
						

 

 

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FIRST   HAWAIIAN BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Derek Chang
    	
 
    
	
 
    	
Name:
    	
Derek Chang
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
						

 

 

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HUNTINGTON   NATIONAL BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Marla S. Bergrin
    	
 
    
	
 
    	
Name:
    	
Marla S. Bergrin
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
						

 

 

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CHANG HWA COMMERCIAL   BANK, LTD., NEW YORK

BRANCH, as a   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Eric Y.S. Tsai
    	
 
    
	
 
    	
Name:
    	
Eric Y.S. Tsai
    	
 
    
	
 
    	
Title:
    	
Vice President &   General Manager
    	
 
    
						

 

 

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RBS   CITIZENS, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Craig Aframe
    	
 
    
	
 
    	
Name:
    	
Craig Aframe
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
						

 

 

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CITIBANK,   N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John Rowland
    	
 
    
	
 
    	
Name:
    	
John Rowland
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
						

 

 

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MORGAN   STANLEY BANK, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Nick Zangari
    	
 
    
	
 
    	
Name:
    	
Nick Zangari
    	
 
    
	
 
    	
Title:
    	
Authorized Signatory
    	
 
    
						

 

 

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UBS AG,   Stamford Branch, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jennifer Anderson
    	
 
    
	
 
    	
Name:
    	
Jennifer Anderson
    	
 
    
	
 
    	
Title:
    	
Associate Director
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lisa Murray
    	
 
    
	
 
    	
Name:
    	
Lisa Murray
    	
 
    
	
 
    	
Title:
    	
Associate Director
    	
 
    
						

 

 

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Acknowledged and accepted:

 

COMMONWEALTH REIT

 

 

By: /s/ John C. Popeo                             

Name: John C. Popeo

Title: Treasurer and Chief Financial Officer

 

ASA PROPERTIES TRUST

BLUE DOG LLC

BLUE DOG PROPERTIES TRUST

CANDLER ASSOCIATES, L.L.C.

CANDLER PROPERTY TRUST

CW LA PROPERTIES TRUST

CW NOM LLC

FIRST ASSOCIATES LLC

HAWAII 2X5 O PROPERTIES TRUST

HRPT LENEXA PROPERTIES TRUST

HUB ACQUISITION TRUST

HUB MADRONE PROPERTIES LLC

HUB MID-WEST LLC

HUB PROPERTIES GA LLC

HUB PROPERTIES TRUST

HUB REALTY FUNDING, INC.

INDEMNITY COLLECTION CORPORATION

OSCAR PROPERTIES TRUST

 

 

By: /s/ John C. Popeo                               

Name: John C. Popeo

Title: Treasurer and Chief Financial Officer

 

HRPT MEDICAL BUILDINGS REALTY TRUST

HUB MA REALTY TRUST

MOB REALTY TRUST

PUTNAM PLACE REALTY TRUST

 

 

By: /s/ John C. Popeo                             

Name: John C. Popeo

Title: Trustee

 

 

Schedule 1

 

Additional Specified Events of Default

 

 

1.                                    An Event of Default under Section 10.1.(b)(ii) of the Credit Agreement resulting from the failure of the quarterly financial statements to be provided by the Borrower under Section 8.1. of the Credit Agreement, and the Compliance Certificate to be provided by the Borrower with such financial statements pursuant to Section 8.3. of the Credit Agreement, to be certified or executed, as applicable, by the Borrower’s chief financial officer or chief accounting officer, in each case solely as a result of the removal of the Board of Trustees of the Borrower.

 

2.                                    An Event of Default under Section 10.1.(b)(i) of the Credit Agreement resulting from the failure of the Borrower to provide notice to the Administrative Agent pursuant to Section 8.4.(h) of the Credit Agreement of the occurrence of any Event of Default (or Default that will become an Event of Default) described in the immediately preceding paragraph 1.

 

3.                                    An Event of Default under Section 10.1.(d)(iii) of the Credit Agreement resulting solely from the existence or occurrence of any of the Specified Events of Default (as defined in the Term Loan Forbearance Agreement).

 

 

Schedule 2

 

Permitted Dispositions

 

 

	
Address
    	
City
    	
State
    	
Owner
    
	
18705-18715   Madrone Pkwy.
    	
Morgan   Hill
    	
CA
    	
Hub   Madrone Properties LLC
    
	
18735   Madrone Pkwy.
    	
Morgan   Hill
    	
CA
    	
Hub   Madrone Properties LLC
    
	
25   Center Street
    	
Stafford
    	
VA
    	
CW   Stafford I Properties Trust
    
	
24   Center Street
    	
Stafford
    	
VA
    	
CW   Stafford II Properties Trust
    
	
16   Center Street
    	
Stafford
    	
VA
    	
CW   Stafford III Properties Trust
    
	
10   Center Street
    	
Stafford
    	
VA
    	
CW   Stafford IV Properties Trust

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