Document:

EXHIBIT 10.14

 

Fiscal year      cycle of the

LA-Z-BOY INCORPORATED 2017 OMNIBUS INCENTIVE PLAN

 

AWARD AGREEMENT

 

This Agreement (the “Agreement”) is made effective              (the “Grant Date”) between La-Z-Boy Incorporated (the “Company”) and NAME (the “Employee”).

 

This Agreement confirms grants to the undersigned Employee of Option Awards, conditional Performance Awards and/or Restricted Stock, and outlines terms of Short-term Cash Incentive award payable to such Employee pursuant to and subject to all terms and conditions of the La-Z-Boy Incorporated 2017 Omnibus Incentive Plan (“Plan”), which was effective as of April 29, 2018.  This Agreement is also subject to the award notification letter dated              (“Notification”) as well as the applicable specific and general conditions set forth in attached Appendix A.

 

The principal features of the foregoing grants and award are as follows:

 

Options

 

“OPTION DATE” is           

 

TOTAL SHARES SUBJECT TO PURCHASE OPTION:  <<FYxx_NQSOs>>

 

	
SCHEDULED   VESTING DATES
    	
NO.   OF SHARES / PRICE PER SHARE:
    
	
 
    	
 
    
	
 
    	
<<Options_vested_each_year>>/   $XX.XX
    
	
 
    	
<<Options_vested_each_year>>/   $XX.XX
    
	
 
    	
<<Options_vested_each_year>>/   $XX.XX
    
	
 
    	
<<Options_vested_each_year>>/   $XX.XX
    

 

All options not exercised by              shall be forfeited.

 

Performance Award Shares (           Cycle)

 

MAXIMUM PERFORMANCE AWARD SHARES*

<<FYxxFYxx_Maximum_Performance_Shares>>

TARGET PERFORMANCE AWARD SHARES*

<<FYxxFYxx_Target_Performance_Shares>>

 

* Subject to attainment of Performance Goals.

 

1

 

Restricted Stock

 

TOTAL SHARES OF RESTRICTED STOCK:   XXX

 

	
SCHEDULED   VESTING DATES
    	
 
    
	
(PERIOD   OF RESTRICTION):
    	
NUMBER   OF SHARES:
    
	
 
    	
 
    
	
 
    	
<<Restricted_stock_vested_each_year>>
    
	
 
    	
<<Restricted_stock_vested_each_year>>
    
	
 
    	
<<Restricted_stock_vested_each_year>>
    
	
 
    	
<<Restricted_stock_vested_each_year>>
    

 

Short Term Incentive Award

 

The incentive payment you receive will be determined by multiplying (a) your Eligible Earnings (base compensation, including vacation and holiday pay, earned during the fiscal year), times (b) your Target Short-Term Cash Incentive Opportunity shown below, times (c) the Company Achievement Percentage, which will be determined by how La-Z-Boy Incorporated performs in <<Goals>> during the fiscal year.

 

	
PERFORMANCE   PERIOD:
    	
Fiscal   Year       
    

 

TARGET SHORT-TERM CASH INCENTIVE OPPORTUNITY:                                            % of Eligible Earnings

 

COMPANY ACHIEVEMENT PERCENTAGE RANGE:   0% - 200%

 

Your signature below indicates your agreement that the foregoing grants and award are subject to all of the terms and conditions contained in the Plan, in attached Appendix A as well as in the accompanying Notification.  Your signature below also indicates that you have received and read a copy of the Plan.  The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated by reference.  In the event of a conflict between any term or provision contained in this Agreement and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

 

	
La-Z-Boy   Incorporated
    	
 
    	
Employee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Kurt   Darrow
    	
 
    	
 
    
	
Chairman,   President and
    	
 
    	
 
    
	
Chief   Executive Officer
    	
 
    	
 
    

 

2

 

AWARD AGREEMENT

 

APPENDIX A - TERMS AND CONDITIONS

 

Terms not defined in this Appendix A are, where applicable, defined as in the Plan.

 

1.                                      Stock Options

 

A.                                    Exercising Options

 

Subject to the terms of Section 13 (Payment) and Section 18.3 (Withholding Taxes) of the Plan, you may exercise Options that have vested by delivering a notice of exercise as described in Section 7 of this Appendix A or by execution of the stock exercise procedures established on the Merrill Lynch Benefits OnLine® website.  When you exercise an Option, you pay the grant price for Company stock.  You may retain the stock (and, if you choose, sell it at a later date), or you may direct that the stock be sold immediately.  The Company has engaged Merrill Lynch to provide services for exercising Options.

 

You may exercise options in one of three ways:

 

(a)                                 Cash Purchase Exercise

 

You pay the grant price multiplied by the number of shares covered by the Options you are exercising, plus applicable taxes by (i) sending a check or wiring funds to Merrill Lynch or (ii) having sufficient funds in your Merrill Lynch account before you deliver notice of exercise.  All of the shares covered by the Options being exercised are credited to your Merrill Lynch account.

 

(b)                                 Cashless Exercise

 

You may exercise your Options without any initial cash outlay.  There are two methods of cashless exercise:

 

(i)                                     Cashless Hold - Merrill Lynch sells enough shares covered by the Options you are exercising to purchase all of the shares covered by the Options being exercised and to pay applicable taxes, costs, and fees.  The remaining shares are credited to your Merrill Lynch account.

 

(ii)                                  Cashless Sell - Merrill Lynch sells all shares covered by the Options you are exercising, deducts the cost of the stock you purchased plus applicable taxes, costs, and fees, and sends you a check or wires the net proceeds to your bank account.

 

Certain participants are required to have cashless exercises executed in certain circumstances, including to satisfy tax liabilities.

 

(c)                                  Stock Swap

 

You may exercise your Options by delivering to Merrill Lynch shares of Company stock that you have owned for at least six months, duly endorsed for transfer to the Company, having a fair market value on the date you deliver it equal to the grant price multiplied by the number of shares covered by the Options you are exercising, plus applicable taxes.

 

3

 

You have access to the secure Benefits OnLine® website at www.benefits.ml.com.  Benefits OnLine provides grant summaries, modeling, and the ability to exercise options and direct that stock be sold.  The Company’s executive officers and other Section 16 Insiders are required to conduct equity award transactions through the Merrill Lynch Financial Advisor team designated to service the accounts.

 

B.                                    Termination of Options

 

The Options granted by this Agreement will terminate and be of no force or effect at the close of business on the ten-year anniversary of the date they are granted, unless they terminate earlier as provided below.

 

If you cease to be employed by the Company or one of its Affiliates, your Options will terminate or be exercisable as follows:

 

Termination of employment.  If you cease to be an Employee for any reason other than for Cause, your Retirement, or death or Disability as described below, your unvested Options will immediately terminate and your vested Options will automatically terminate ninety (90) days after you cease to be an Employee except for any Options that expire earlier by their terms.  For purposes of this Agreement, the following are not deemed to be a termination of employment: (i) a transfer from the Company to one of its Affiliates, from an Affiliate to the Company, or between Affiliates; or (ii) a leave of absence authorized by the Company or an Affiliate.  For purposes of the Plan, termination of employment will be deemed to occur on the date on which you are no longer obligated to perform services for the Company or any of its Affiliates and your right to reemployment is not guaranteed either by statute or contract, regardless of whether you continue to receive compensation from the Company or any of its Affiliates.

 

Cause.  If you are terminated for Cause, as defined in the Plan, your vested options will terminate immediately.

 

Retirement.  For purposes of this Agreement, “Retire” means that you are at least 55 years old, have been employed by the Company or an Affiliate for at least 10 years, and retire with the Company’s consent. If you Retire, all of your unvested Options granted at least ten months earlier will immediately fully vest, and you may exercise your Options during the following 36 months except for Options that expire earlier by their terms. Options granted less than ten months before you Retire will be cancelled.

 

Death or Disability.  If you cease to be an Employee because you die or you become Disabled as defined by the Plan, all of your unvested Options will immediately fully vest, and you (or your beneficiary or personal representative) may exercise your Options during the 36 months after you become Disabled or die (whichever occurs first) except for Options that expire earlier by their terms.

 

4

 

2.                                      Restricted Stock and Stock Units

 

All Restricted Stock Units will be settled in cash.

 

Termination of Employment.  If you cease to be an Employee other than because you die or become Disabled, you forfeit any Restricted Stock or Stock Units that have not vested, or for which applicable restrictions and conditions have not lapsed, and you have no further rights with respect to your Award of Restricted Stock or Stock Units.  If you die or become Disabled during the applicable restriction period, all of your Restricted Stock or Stock Units will immediately vest, all transfer restrictions imposed by the Plan or this Agreement will immediately terminate, and all Stock Units will be settled in cash no later than 75 days following the Company’s fiscal year in which the restrictions lapsed.

 

3.                                      Performance Shares and Performance Units

 

All Performance Units will be settled in cash.

 

Termination of Employment.  You will not be entitled to receive any Performance Shares or Performance Units if, except in the circumstances described below, you cease to be an Employee before the end of the three-year performance period.

 

Death, Disability or Retirement. Regardless of the above employment requirement, the Company’s Compensation Committee may, in its discretion, determine that you are entitled to a partial payout of an award if, before the expiration of the three-year performance period, (i) you Retire, (ii) you become Disabled, or (iii) you die, then you (or, if applicable, your estate) may receive a partial payout of this Award based on any fiscal years that have been completed at the time you die, Retire, or become Disabled.  If the payout will be made, it will be based on the portion of the Award that you were eligible to receive based on targets established for, and limited to, such completed fiscal year or years, and the Company’s actual performance against those targets.  The Compensation Committee’s determination of your entitlement to this partial payout will be made after the conclusion of the performance period. Any payout of this portion of the Award will occur on June 30, 2021, along with the payout of other awards from the Plan’s tranche of grants for that time period.

 

Corporate Transactions.  Any Performance Awards for unexpired terms shall be paid as if the term thereof were complete, based on the best financial information available to the Company of the Company’s performance as of the close of business on the day immediately preceding the Change in Control or Corporate Transaction; provided, however, that in determining whether and to what extent Performance Criteria of such Performance Awards have been satisfied, where such Performance Criteria are based on results that accumulate over the term of such Awards or over one year of such term (e.g., earnings per share), the performance requirement of such Performance Criteria shall be prorated in accordance with the portion of the term or year that occurred prior to the Change in Control or Corporate Transaction.  Payouts may occur only if they are in compliance with Section 409A of the Internal Revenue Code.

 

5

 

4.                                      Short-Term Cash Incentive (Management Incentive Program)

 

Termination of Employment.  Except in the circumstances described below, you must be actively employed on the last day of the Fiscal Year to be eligible to receive payment of the short-term cash incentive (under the Management Incentive Program, or “MIP”).

 

Disability or Retirement.  If you Retire or became Disabled during the Fiscal Year, you will be entitled to receive payment based on your Eligible Earnings during the year.

 

Death.  If you die during or after the Fiscal Year before receiving a MIP payment that you would otherwise receive, payment based on your Eligible Earnings will be made to your estate.

 

Approved Leave of Absence.  Being on an approved leave of absence (including workers compensation leave, military leave, or leave approved pursuant to the Family and Medical Leave Act), does not affect your eligibility to receive a MIP payment based on your Eligible Earnings during the fiscal year.

 

5.                                      Forfeiture or Return of Awards

 

If the Company is required to prepare a material accounting restatement, you may be required to forfeit any Award you earned within three years of when the financial statements that were later restated were filed, if the Board or Committee, in its sole discretion, determines that you engaged in misconduct, the amount of the award was based on achieving performance goals, and it is later determined that those goals were not achieved.  In addition, if, within one year after you receive payment of an award or exercise an option, the Board determines in its discretion that you have materially harmed the Company, then you will be required to pay the Company any gain you realized.  Additionally, if the Company is required to prepare an accounting restatement due to material noncompliance, the Company will be entitled to, and may be required to, seek recovery of an award paid to any participant where the misstatement caused an error in incentive-based compensation.

 

6.                                      Notices

 

Any notice under this Agreement to the Company should be addressed to La-Z-Boy Incorporated in care of its Secretary at One La-Z-Boy Drive, Monroe, Michigan 48162, and, if to you, it will be addressed to your address appearing in the Company’s personnel records, or to either party at a different address that the party designates in writing to the other party.  Any such notice will be deemed effective when received.

 

6xrf-ex44_6.htm

 

NEITHER THESE SECURITIES NOR THE SECURITIES FOR WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

Dated:  June 17, 201966,402,480 Class A ordinary shares

 

 

WARRANT TO PURCHASE

 

CLASS A ORDINARY SHARES

 

OF

 

CHINA RAPID FINANCE LIMITED

 

Organized Under the Laws of the Cayman Islands

 

THIS CERTIFIES THAT, for value received, and subject to the provisions hereinafter set forth, Hongkong Outjoy Education Technology Co., Ltd., a limited liability company registered in Hong Kong, or its registered assigns (the “Holder”), is entitled to purchase from China Rapid Finance Limited, a Cayman Islands exempted company with limited liability (the “Company”), at the times set forth in this warrant (this “Warrant”), up to 66,402,480 (the “Maximum Amount”) duly authorized, validly issued, fully paid and nonassessable Class A ordinary shares, par value $0.0001 per share, of the Company (the “Shares”) at the Exercise Price (defined below).

1.Duration; Surrender.  The Holder’s right to purchase Shares represented hereby will commence on the date hereof (the “Commencement Date”) and will expire on the date that is five (5) years and six (6) months following the date of this Warrant (the “Expiration Date”).  All such rights shall be wholly null and void to the extent this Warrant is not exercised on or before the Expiration Date.  

 

2.Exercise; Payment; Partial Exercise.

2.1.Exercise of Warrants.  

2.1.1.Holder shall only be permitted to purchase the amount of Shares (each such amount of Shares, the “EBITA Milestone Shares”) corresponding with the achievement of certain earnings before interest taxes and amortization (“EBITA”) milestones (the “EBITA Milestones”) by the project company to be established as a wholly owned subsidiary of the Company (the “Project Company”), as set forth on Exhibit A hereto.  Such EBITA Milestones must be achieved within five (5) years from the Effective Date to be valid, but this Warrant may be exercised for the corresponding EBITA Milestone Shares up until the Expiration Date..

2.1.2.For purposes of determining the EBITA milestones as set forth in Exhibit A hereto,  EBITA shall be the aggregate EBITA of the Project Company for the most recent four (4) fiscal quarters and shall be calculated on a quarterly basis by the Company’s Chief Financial Officer in accordance with U.S. generally accepted accounting principles. Upon the achievement of any EBITA Milestones, this Warrant shall become exercisable by the Holder for those EBITA Milestone Shares corresponding with such EBITA Milestones.  For the avoidance of doubt, once an EBITA Milestone has been achieved, the Holder can purchase the EBITA Milestone Shares corresponding with any prior thresholds of EBITA Milestones, but each tranche of EBITA Milestone Shares may only be exercised on one occasion.  In the event of any dispute relating to the calculation of EBITA or the achievement of any EBITA Milestone, the Holder may request that an independent third party accounting firm acceptable to both the Holder and the Company be engaged to review such calculations, and the conclusions of such third party shall be binding upon both parties.

2.1.3.The exercise price shall be US$0.0001 per Share (the “Exercise Price”).  

2.1.4.Subject to the provisions of Section 2.1.1, this Warrant may be exercised by the Holder, in one or more instances until such time as the Maximum Amount of the Shares have been purchased by the cumulative exercises of this Warrant by the Holder, during normal business hours on any business day on or prior to the Expiration Date, by delivering to the Company at its principal office an election notice and subscription substantially in the form attached to this Warrant duly executed by the Holder and either (i) accompanied by payment, in cash or by check payable to the order of the Company, in in an amount equal to the number of Shares for which this Warrant is then being exercised, as designated in such election notice and subscription, multiplied by the Exercise Price (the “Aggregate Exercise Price”) or (ii) through the cashless exercise set forth in Section 2.2 below, and the Holder will thereupon be entitled to receive the number of duly authorized, validly issued, fully paid and nonassessable Shares in accordance with the terms of this Warrant. 

2.1.5.The Holder shall be deemed to have surrendered all rights under this Warrant upon the earlier to occur of (i) the Maximum Amount of the Shares having been purchased by the cumulative exercises of this Warrant, and (ii) the Expiration Date.

 

2.2.Cashless Exercise.  The Holder shall have the right to pay all or a portion of the Aggregate Exercise Price by making a “Cashless Exercise,” in which the Holder shall  be entitled to receive a number of Shares equal to the quotient obtained by dividing [(A-B)(X)] by (A), where:

(A) = the VWAP on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable notice of exercise, a form of which is attached hereto as Exhibit B (the “Notice of Exercise”);

(B) = the Exercise Price; and 

 

(X) = the number of Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

“Trading Day” shall mean a day on which there is trading or quoting for any security on the New York Stock Exchange (the “NYSE”).

 

“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the American Depositary Shares representing Class A ordinary shares (“ADSs”) is then listed or quoted on the NYSE, the daily volume weighted average price of the ADSs for such date (or the nearest preceding date) on the NYSE as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the ADSs are traded on OTCQB or OTCQX, the volume weighted average price of the ADSs for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the ADSs are not then listed or quoted for trading on the NYSE, OTCQB or OTCQX and if prices for the ADSs are then reported in the “Pink Sheets” published by OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the ADSs so reported, or (d) in all other cases, the fair market value of a share of the Shares as determined by an independent appraiser selected in good faith by the Company, the fees and expenses of which shall be paid by the Company.

 

3.Shares Fully Paid.  The Company represents, warrants, covenants and agrees that all Shares that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be duly authorized, validly issued, fully paid and nonassessable.  

4.Adjustment of Number of Shares Issuable Upon Exercise of the Warrant.

4.1.The number of Shares issuable upon exercise of this Warrant thereof shall be proportionately adjusted to reflect any stock dividend, stock split, reverse stock split, recapitalization or the like affecting the number of outstanding Shares that occurs after the date hereof.

4.2.If after the date hereof, the Company (or any other entity, the stock or other securities of which are at the time receivable on the exercise of this Warrant), consolidates with or merges into another entity or conveys all or substantially all of its assets to another entity, then, in each such case, Holder, upon any permitted exercise of each this Warrant, at any time after the consummation of such reorganization, consolidation, merger or conveyance, shall be entitled to receive, in lieu of the stock or other securities and property receivable upon the exercise of this Warrant prior to such consummation, the stock or other securities or property to which such Holder would have been entitled upon the consummation of such reorganization, consolidation, merger or conveyance if such Holder had exercised this Warrant immediately prior thereto, all subject to further adjustment as provided in this Section 4. The successor or purchasing entity in any such reorganization, consolidation, merger or conveyance (if other than the Company) shall duly execute and deliver to Holder a written acknowledgment of such entity’s obligations under this Warrant.

4.3.Upon the occurrence of any event resulting in an adjustment in the number of Shares (or other stock or securities or property) receivable upon the exercise of this Warrant, the Company shall promptly thereafter (i) compute such adjustment in accordance with the terms of this Warrant, (ii) prepare a certificate setting forth such adjustment and showing in detail the facts upon which such adjustment is based, and (iii) deliver copies of such certificate to the Holder.

 

5.Representations and Warranties of Holder.  Holder represents and warrants to the Company that, on the date hereof and on the date the Holder exercises the Warrant:

5.1.Holder understands that the Warrant and the Shares have not been registered under the Securities Act and acknowledges that the Warrant and the Shares must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration becomes available.

5.2.Holder is acquiring the Warrant for Holder’s own account for investment and not with a view to, or for sale in connection with, any distribution thereof. 

5.3.Holder understands that the Warrant and the Shares that may be acquired upon exercise are being offered and sold to the Holder in reliance on an exemption from the registration requirements of United States federal and state securities laws under Regulation S promulgated by the Securities and Exchange Commission under the Securities Act and that the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Holder set forth herein in order to determine the applicability of such exemptions and the suitability of the Holder to acquire the Warrant and the underlying Shares.

 

6.No Rights or Liabilities as Shareholder.  The Holder, as such, of this Warrant shall not be entitled to vote, receive dividends or be deemed the holder of Shares which may at any time be issuable on the exercise of this Warrant represented thereby for any purpose whatever, nor shall anything contained herein or in this Warrant be construed to confer upon the holder of this Warrant, as such, any of the rights of a shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par value or change of stock to no par value, consolidation, merger, conveyance or otherwise), or to receive notice of meetings or other actions affecting shareholders or to receive dividend or subscription rights, or otherwise, until this Warrant shall have been exercised in accordance with the provisions hereof and the receipt and collection of the Exercise Price and any other amounts payable upon such exercise by the Company. No provision hereof, in the absence of affirmative action by Holder to purchase Shares shall give rise to any liability of such holder for the Exercise Price or as a shareholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

7.Miscellaneous.

7.1.Restrictions; Legends.  This Warrant and the Shares issuable hereunder are subject in all respects to the provisions of the Company’s Fourth Amended and Restated Memorandum and Articles of Association, as amended from time to time (the “M&A”).  This Warrant, the rights granted hereunder, and any certificate issued upon the exercise of this Warrant and any certificate issued upon any direct or indirect transfer of this Warrant or of any Shares issuable upon exercise of this Warrant are transferable only upon satisfaction of the conditions set forth in the M&A, and shall be stamped or otherwise imprinted with any legends deemed appropriate or necessary by the Company.

7.2.Registration and Transfer of Warrants.  The Company will cause to be kept a register for the registration and transfer of the Holders’ rights under this Warrant.  The person in whose name this Warrant is so registered will be deemed and treated as the owner and holder thereof for all purposes of this Warrant, and the Company will not be affected by any notice or knowledge to the contrary.

7.3.Lock up.  Holder hereby agrees not to, directly or indirectly (1) offer, pledge, assign, encumber, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, any of the Shares or (2) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the Shares, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of the Shares or such other securities, in cash or otherwise, or publicly announce an intention to do any of the foregoing, for a period of six months from each date of exercise. 

7.4.Amendment and Waiver.  Any term, covenant, agreement or condition in this Warrant may be amended, or compliance therewith may be waived (either generally or in a particular instance and either retroactively or prospectively), only by a written instrument or written instruments executed by the Company and the Holder(s).

7.5.Notices.  All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient; if not, then on the next business day, (c) five days after having been sent by certified mail, return receipt requested, postage prepaid, or (d) after delivery by a recognized overnight courier, when delivery is verified in the courier’s systems.  All communications shall be sent to the address appearing on the signature page hereto or at such other address or electronic mail address as such party may designate by ten days’ advance written notice to the other parties hereto.  The Holder consents to the delivery of any notice given by the Company by (i) facsimile telecommunication, (ii) electronic mail, or (iii) any other form of electronic transmission directed to the Holder.

7.6.Headings.  The section headings contained in this Warrant are provided solely for convenience and do not form a part of this Warrant.

7.7.Governing Law.  This Warrant is to be governed by, and construed and enforced in accordance with, the laws of the State of New York, without regard to its rules of conflict of laws.

7.8.Assignment.  Neither this Warrant nor any of the rights, interests or obligations hereunder may be assigned, by operation of law or otherwise, in whole or in part by the Holder to any person or entity without the prior written consent of the Company; provided that the EBITA Milestone Shares obtained from the exercise of this Warrant may be assigned to members of the Holder’s management team.

 

[Remainder of This Page Intentionally Blank; Signature Page Follows]

 

 

The parties have executed this Warrant as of the date first set forth above.

CHINA RAPID FINANCE LIMITED

 

 

By:

Name: 

Title: 

 

 

 

HONGKONG OUTJOY EDUCATION TECHNOLOGY CO., LTD. 

 

 

By:

Name:  

Title:  

Address:

EXHIBIT A

 

EBITA MILESTONES

 

			
	
EBITA Milestone Number
	
Project Company EBITA (USD)
	
EBITA Milestone Shares

	
1
	
3,676,471
	
4,913,811

	
2
	
7,352,941
	
3,706,249

	
3
	
11,029,412
	
3,004,821

	
4
	
14,705,882
	
2,553,883

	
5
	
18,382,353
	
2,236,360

	
6
	
22,058,824
	
1,999,025

	
7
	
25,735,294
	
1,813,971

	
8
	
29,411,765
	
1,665,066

	
9
	
33,088,235
	
1,542,289

	
10
	
36,764,706
	
1,439,066

	
11
	
40,441,176
	
1,350,894

	
12
	
44,117,647
	
1,274,575

	
13
	
47,794,118
	
1,207,774

	
14
	
51,470,588
	
1,148,743

	
15
	
55,147,059
	
1,096,143

	
16
	
58,823,529
	
1,048,935

	
17
	
62,500,000
	
1,006,293

	
18
	
66,176,471
	
967,558

	
19
	
69,852,941
	
932,191

	
20
	
73,529,412
	
899,753

			
	
21
	
77,205,882
	
869,878

	
22
	
80,882,353
	
842,261

	
23
	
84,558,824
	
816,642

	
24
	
88,235,294
	
792,803

	
25
	
91,911,765
	
770,555

	
26
	
95,588,235
	
749,738

	
27
	
99,264,706
	
730,211

	
28
	
102,941,176
	
711,853

	
29
	
106,617,647
	
694,556

	
30
	
110,294,118
	
678,226

	
31
	
113,970,588
	
662,782

	
32
	
117,647,059
	
648,149

	
33
	
121,323,529
	
634,262

	
34
	
125,000,000
	
621,063

	
35
	
128,676,471
	
608,499

	
36
	
132,352,941
	
596,523

	
37
	
136,029,412
	
585,094

	
38
	
139,705,882
	
574,172

	
39
	
143,382,353
	
563,723

	
40
	
147,058,824
	
553,716

	
41
	
150,735,294
	
544,121

	
42
	
154,411,765
	
534,913

	
43
	
158,088,235
	
526,067

	
44
	
161,764,706
	
517,561

	
45
	
165,441,176
	
509,375

	
46
	
169,117,647
	
501,491

	
47
	
172,794,118
	
493,892

			
	
48
	
176,470,588
	
486,560

	
49
	
180,147,059
	
479,483

	
50
	
183,823,529
	
472,645

	
51
	
187,500,000
	
466,036

	
52
	
191,176,471
	
459,642

	
53
	
194,852,941
	
453,452

	
54
	
198,529,412
	
447,458

	
55
	
202,205,882
	
441,649

	
56
	
205,882,353
	
436,016

	
57
	
209,558,824
	
430,551

	
58
	
213,235,294
	
425,246

	
59
	
216,911,765
	
420,094

	
60
	
220,588,235
	
415,089

	
61
	
224,264,706
	
410,223

	
62
	
227,941,176
	
405,490

	
63
	
231,617,647
	
400,886

	
64
	
235,294,118
	
396,404

	
65
	
238,970,588
	
392,039

	
66
	
242,647,059
	
387,787

	
67
	
246,323,529
	
383,643

	
68
	
250,000,000
	
379,603

	
69
	
253,676,471
	
375,663

	
70
	
257,352,941
	
371,819

	
71
	
261,029,412
	
368,067

	
72
	
264,705,882
	
364,403

	
73
	
268,382,353
	
360,826

	
74
	
272,058,824
	
357,331

			
	
75
	
275,735,294
	
353,915

	
76
	
279,411,765
	
350,576

	
77
	
283,088,235
	
347,311

	
78
	
286,764,706
	
344,118

	
79
	
290,441,176
	
340,994

	
80
	
294,117,647
	
337,936

	
Total
	
 
	
66,402,480

 

 

 

EXHIBIT B

 

FORM OF ELECTION NOTICE AND SUBSCRIPTION

 

[To be executed and delivered only upon exercise of Warrant]

 

 

To China Rapid Finance Limited:

 

The undersigned registered holder of the enclosed Warrant hereby irrevocably exercises such Warrant for, and purchases thereunder, ____________ Class A ordinary shares, which shares are eligible to be purchased due to the satisfaction of EBITA Milestone #[s] __, by (check one of the following two options):

 payment to China Rapid Finance Limited in the aggregate amount of $____________ therefor, which is equal to $0.0001 multiplied by the number of Class A ordinary shares being purchased; or 

 by cashless exercise in accordance with the terms of Section 2.2 of the enclosed Warrant.

 

HONGKONG OUTJOY EDUCATION TECHNOLOGY CO., LTD.

 

 

By: ______________________________________

Name: 

Title:   

 

 

Dated:  __________________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}]]