Document:

exhibit102deedofsharecha

                                                Exhibit 10.2                                                                                                                                                                                                      Dated ___13 May_____ 2019     PELICAN HOLDCO LIMITED           as Chargor            in favour of   KVH MEDIA GROUP LIMITED           as Chargee                                                                                  SHARE CHARGE                                                         

 

                                             CONTENTS    Clause                                                                                   Page   1.     Definitions and Interpretation ..................................................................................................... 2  2.     Payment of Secured Obligations ............................................................................................... 4  3.     Charge and Assignment............................................................................................................. 4  4.     Further Assurance ...................................................................................................................... 5  5.     Negative Pledge, Disposals and other undertakings ................................................................. 5  6.     Operations Before and After Events of Default .......................................................................... 6  7.     Enforcement of Security ............................................................................................................. 8  8.     Powers of Sale ........................................................................................................................... 8  9.     Appointment of Receiver ............................................................................................................ 9  10.    Powers of Receiver .................................................................................................................... 9  11.    Application of Monies ............................................................................................................... 12  12.    Receipt and Protection of Purchasers ..................................................................................... 12  13.    Power of Attorney ..................................................................................................................... 12  14.    Representations ....................................................................................................................... 13  15.    Effectiveness of Security .......................................................................................................... 16  16.    Release of Security .................................................................................................................. 18  17.    Subsequent and Prior Security Interests ................................................................................. 19  18.    Currency Conversion and Indemnity ........................................................................................ 19  19.    Costs, Expenses and Indemnity .............................................................................................. 20  20.    Payments Free of Deduction ................................................................................................... 20  21.    Discretion and Delegation ........................................................................................................ 20  22.    Set-off ....................................................................................................................................... 21  23.    Changes to Parties ................................................................................................................... 21  24.    Amendments and Waivers ....................................................................................................... 21  25.    Notices ..................................................................................................................................... 22  26.    Counterparts ............................................................................................................................ 22  27.    Governing Law ......................................................................................................................... 22  28.    Jurisdiction ............................................................................................................................... 23                                                        

 

   THIS DEED OF SHARE CHARGE is made on ___13 May_____ 2019   BY   (1)    PELICAN HOLDCO LIMITED, a company incorporated under the laws of England and Wales         with company number 11988300 and registered office at 3 Cadogan Gate, London SW1X 0AP,         England (the “Chargor”)           in favour of   (2)    KVH MEDIA GROUP LIMITED, a company incorporated in England and Wales with registered         number 06462774 and having its registered office at 2a Queen Street, Leeds, West Yorkshire         LS1  2TW   (the “Chargee”,  which  expression  shall  include  its  successors,  assigns  and         transferees).   NOW THIS DEED WITNESSES as follows:   1.     DEFINITIONS AND INTERPRETATION   1.1    Definitions          In this Deed, terms defined in the Loan Agreement (as defined below) shall, unless otherwise         defined in this Deed or unless a contrary intention appears, bear the same meaning when used         in this Deed and the following terms shall have the following meanings:          “Charged Property” means all the assets and/or undertaking of the Chargor which from time         to  time  are  the  subject  of  the  security  created  or  expressed  to  be  created  in  favour  of  the         Chargee by or pursuant to this Deed.          “Chargor’s Investment Group” means the Investor, the General Partner and the Partnerships         (as each term is defined in the Equity Commitment Letter).          “CO” means Companies Ordinance (Cap. 622 of the Laws of Hong Kong).          “Collateral  Rights” means  all  rights,  powers  and  remedies  of  the  Chargee  provided  by  or         pursuant to this Deed or by law.          "Equity Commitment Letter" means the equity commitment letter dated on or around the date         hereof from Oakley Capital IV Master SCSp (as Investor) to the Chargor and the Chargee.          “Event of Default” means:          (a)     any non-payment of the Advance and accrued interest thereon on the Maturity Date in                 accordance with clause 5 of the Loan Agreement;           (b)     any breach by the  Chargor  of  its obligations  under  the  other  clauses  of  the  Loan                 Agreement or any clause under this Deed, provided that no Event of Default will occur                 if such failure to comply is capable of remedy and is remedied within 30 days of the                 earlier  of  (i)  the  Lender  giving  notice to the  Chargor  and (ii)  the  Chargor  becoming                 aware of the failure to comply;           (c)     any representation by the Chargor and/or the Chargor’s Investment Group under the                 Loan Agreement and/or this Deed and/or the Equity Commitment Letter is or proves to                 have been incorrect or misleading in any material respect when made, provided that                 no Event of Default will occur if such misrepresentation is capable of remedy and is                                                       

 

                           remedied within 30 days of the earlier of (i) the Lender giving notice to the Chargor and          (ii) the Chargor becoming aware of such misrepresentation;    (d)     the Chargor or any member of the Chargor’s Investment Group  is or is presumed or          deemed to be unable or admits inability to pay its debts as they fall due, suspends          making payments on its debts generally or, by reason of actual or anticipated financial          difficulties, commences negotiations with one or more of its creditors (excluding the          Lender in such capacity) with a view to rescheduling any of its indebtedness; or   (e)     any corporate action, legal proceedings or other procedure or step is taken in relation          to  (i)  the  suspension  of  payments,  a  moratorium  of  any  indebtedness,  winding-up,          dissolution, administration or reorganisation (by way of voluntary arrangement, scheme          of  arrangement  or  otherwise)  of  the  Chargor or  any  member  of  the  Chargor’s          Investment Group, (ii) a composition, compromise, assignment or arrangement with          any creditor of the Chargor or any member of the Chargor’s Investment Group, (iii) the          appointment of a liquidator, receiver, administrative receiver, administrator, compulsory          manager  or  other  similar  officer  in  respect  of  the  Chargor or  any  member  of  the          Chargor’s Investment Group or any  of its or their assets or (iv) enforcement of any          Security over any assets of the Chargor or any member of the Chargor’s Investment          Group, or any analogous procedure or step is taken in any jurisdiction (save that this          paragraph (e) shall not apply to any winding-up petition which is frivolous or vexatious          and is discharged, stayed or dismissed within 30 days of commencement),            provided always that no Event of Default will occur under paragraph (c), (d) or (e) with          respect  to  the  Chargor's  Investment Group, if  the  Investor is  not  prevented  from          performing its obligations under the Equity Commitment Letter.    “Loan Agreement” means the loan agreement dated the date hereof between the Chargor, as  borrower, and the Chargee, as lender.    “Receiver” means a receiver or receiver and manager or an administrative receiver of the whole  or any part of the Charged Property and that term will include any appointee under a joint and/or  several appointment.   “Related Rights” means, in relation to any asset:   (a)    the proceeds of sale of any part of that asset;   (b)    all rights under any licence, agreement for sale, lease or other disposal in respect of         that asset;   (c)    all  rights,  powers,  benefits,  claims,  contracts,  warranties,  remedies,  security,         guarantees, indemnities and/or covenants for title in respect of that asset;   (d)    any moneys and proceeds paid or payable in respect of that asset;    (e)    (in the case where such asset comprises any share, equity interest or other security)         all  dividends,  distributions,  interest  and  monies  payable  in  respect  thereof  and  any         rights, assets, shares and/or securities deriving therefrom or accruing thereto whether         by  way  of  redemption,  bonus,  preference,  option,  substitution,  conversion,         compensation or otherwise; and/or   (f)    (in the case where such asset comprises any share, equity interest or other security)         any rights against any clearing system in which such asset is held,                                                                

 

          (in each case) from time to time.          “Secured Obligations” means all moneys, liabilities and obligations owing or expressed to be         owing to the Chargee under or pursuant to the Loan Agreement  and /or this Deed whether         present or future, actual or contingent, whether now existing or hereafter arising, whether or         not for payment of money and including any obligation or liability to pay damages (and whether         as  principal  or  surety  or  in  some  other  capacity),  including  without  limitation  any  such         obligations in respect  of any further  advances  and/or financial  accommodation from time to         time.          “Security”  means  a  mortgage,  charge,  pledge,  lien  or  other  security  interest  securing  any         obligation of any person or any other agreement or arrangement having a similar effect.          “Shares” means all the ordinary shares in the share capital of the Subject Entity beneficially         owned  by  the  Chargor,  including  those ordinary shares of  the  Subject  Entity specified  in         Schedule 1 (Particulars of Shares).          “Subject Entity” means Super Dragon Ltd., a company incorporated under the laws of Hong         Kong  with  limited  liability with company number 1327525 and  having  its registered  office         currently at 16/F Rykadan Capital Tower, 135 Hoi Bun Road, Kwun Tong, Hong Kong.    1.2    Construction          1.2.1   In this Deed:                  (a)    any  reference  to  the  Chargor,  the  Chargee  or  the  Subject  Entity  shall  be                        construed so as to include its or their (and any subsequent) successors and                        any  permitted  assigns  and  transferees  in  accordance  with  their  respective                        interests; and                  (b)    save  where  the  context  otherwise  requires,  references  in  this  Deed  to  any                        Clause or Schedule shall be to a clause or schedule contained in this Deed.          1.2.2  A person who is not a party to this Deed has no right under the Contracts (Rights of                Third Parties)  Ordinance (Cap.  623 of  the  Laws  of Hong  Kong)  (the  “Third  Parties                Ordinance”) to enforce or to enjoy the benefit of any term of this Deed. Notwithstanding                any term of this Deed, the consent of any person who is not a party to this Deed is not                required to rescind or vary this Deed at any time.   2.     PAYMENT OF SECURED OBLIGATIONS          The  Chargor  hereby  covenants  with  the  Chargee  that  it  shall  on  demand  of  the  Chargee         discharge all of the Secured Obligations when due and payable, and the Chargor shall pay to         the  Chargee  any  Secured  Obligations  when  due  and  payable provided  that neither  such         covenant nor the security constituted by this Deed shall extend to or include any liability or sum         which would, but for this proviso, cause such covenant or security to be unlawful or prohibited         by any applicable law.   3.     CHARGE AND ASSIGNMENT   3.1    Charge          3.1.1  The  Chargor  hereby  charges  as  beneficial  owner,  as  security  for  the  payment  and                discharge of the Secured Obligations, by way of first fixed charge, all the Chargor’s                right, title and interest from time to time in and to the Shares and all Related Rights in                relation thereto.                                                      

 

          3.1.2  To the extent and at any time they are not effectively charged by way of fixed charge                referred to in Clauses 3.1.1 above, charges by way of first floating charge the Charged                Property, the Shares and all Related Rights in relation thereto.    4.     FURTHER ASSURANCE   4.1    Further Assurance: General          The Chargor shall promptly at its own cost do all such acts and/or execute all such documents         (including  without  limitation  assignments,  transfers,  mortgages,  charges,  notices  and         instructions) as the Chargee may reasonably specify (and in such form as the Chargee may         reasonably require in favour of the Chargee or its nominee(s)):          4.1.1  to  perfect  the  security  created  or  intended  to  be  created  in  respect  of  the  Charged                Property (which may include, without limitation, (a) the execution by the Chargor of a                mortgage, charge or assignment over all or any of the assets constituting, or intended                to constitute, any part of the Charged Property; (b) procure that this Deed shall promptly                be  registered  with  the  companies  registry  or  registrar  in the applicable  jurisdictions                which  are, in  the  opinion  of  the  Chargee,  to  be  so  registered  or  be  submitted  for                registration;  and  (c) procure  that  this  Deed  be  promptly  recorded  or  noted  in  the                registers of mortgages, charges or encumbrances of the Chargor and/or registers of                shareholders of the Subject Entity which are, in the opinion of the Chargee, to be so                recorded or noted) or for the exercise of the Collateral Rights; and/or          4.1.2  to facilitate the realisation of the Charged Property.   4.2    Necessary Action          The Chargor shall from time to time take all such action (whether or not requested to do so by         the  Chargee)  as  is  or  shall  be  available  to  it  (including  without  limitation  obtaining  and/or         effecting all Authorisations) as may be necessary for the purpose of the creation, perfection,         protection or maintenance of any security conferred or intended to be conferred on the Chargee         by or pursuant to this Deed.   4.3    Information          The Chargor shall promptly deliver to the Chargee all information that is available to it and that         is required in order for the Chargee to comply with any applicable laws or regulations in respect         of any Charged Property (including without limitation section 329 of the Securities and Futures         Ordinance (Cap.  571 of  the Laws  of  Hong  Kong)  or  any  similar  provision  in  any  articles  of         association or constitutional documents relating to any Charged Property.   4.4    Implied Covenants for Title          The obligations of the Chargor under this Deed shall be in addition to any covenants for title         deemed to be included in this Deed under applicable law.   5.     NEGATIVE PLEDGE, DISPOSALS AND OTHER UNDERTAKINGS   5.1    Negative Pledge          Unless otherwise agreed in writing by the Chargee, the Chargor undertakes that it shall not, at         any time during the subsistence of this Deed, create or permit to subsist any Security over all         or any part of the Charged Property except for the security constituted by this Deed.                                                        

 

   5.2    Delivery of Documents          The  Chargor shall  deliver  or  procure  that  there  shall  be  delivered  to  the  Chargee  (a)  such         documents relating to the Charged Property as the Chargee reasonably requires and (b) the         documents  listed  in  paragraphs  (i)  to  (iii)  below  relating  to  the  Charged Property within 10         Business Days (or such other time period agreed by the Chargee) after the execution of this         Deed, each of which may be held by the Chargee until the security constituted by this Deed is         released:          (i)     share certificates or other documents of title in respect of the Shares in suitable form                 for transfer by delivery;          (ii)    duly  executed  instruments  of  transfer  and  contract  notes  in respect  of  the  Shares                 substantially set out in the form set out in Schedule 2 (Form of Instrument of Transfer                 and Contract Note) but, in each case, with the dates and names of the transferees left                 blank; and          (iii)   signed but undated deed of appointment of proxy and irrevocable appointment of power                 of attorney from the Chargor substantially in the form set out in Schedule 3.          The Chargor shall promptly deliver to the Chargee certificates or other instruments representing         or evidencing the Shares acquired or received by it after the date of this Deed with instruments         of transfer and contract notes in blank duly executed by the Chargor.          At any time after the security created by or pursuant to this Deed has become enforceable, the         Chargee shall have the right to complete, date and put into effect the documents referred to in         this Clause 5.2.   5.3    Register of Members          Without prejudice to the generality of Clause 4 (Further assurance), the Chargor shall procure         that  the  Subject  Entity provides the Chargee  with  a  certified  true  copy  of  the  Register  of         Members within ten (10) Business Days (or such other time period agreed by the Chargee) of         the execution of this Deed.   5.4    Undertaking in respect of Non-Hong Kong company          The Chargor agrees not to apply to have itself registered as a non-Hong Kong company under         Part 16 of the CO.   5.5    No Disposal of Interests          The Chargor undertakes that, during the subsistence of this Deed, it shall not, and shall not         agree  to,  sell,  assign,  transfer  or  otherwise  dispose  of  any  Charged  Property  except  (a)         pursuant to this Deed and/or (b) any disposal consented to in writing by the Chargee.   6.     OPERATIONS BEFORE AND AFTER EVENTS OF DEFAULT   6.1    Dividends          6.1.1  The Chargor shall ensure that any and all dividends, distributions, interest and/or other                monies received and/or recovered in respect of all or any part of the Charged Property                are directly paid to the Chargee.          6.1.2  After the occurrence and during the continuance of an Event of Default, the Chargee                may apply in accordance  with this Deed any and all dividends, distributions, interest                                                       

 

                 and/or  other  monies  received  and/or  recovered  in  respect  of  all  or  any  part  of  the                Charged Property.          6.1.3  Any and all dividends, distributions, interest and/or other monies received, recovered                or paid/delivered to the order of the Chargor (other than in cash) in respect of any or all                of the Charged Property shall be held by the Chargor subject to the security constituted                by this Deed, provided that if such receipt or recovery is made after the occurrence and                during the continuance of an Event of Default, the Chargor shall promptly deliver such                dividends, distributions, interest and/or other monies to the Chargee for application in                accordance with this Deed.   6.2    Operation: Before Event of Default          In the absence of an Event of Default, the Chargor shall be entitled to exercise all voting rights         in relation to any or all of the Shares provided that the Chargor shall not exercise such voting         rights in any manner that could give rise to, or otherwise permit or agree to, any (a) variation of         the rights attaching to or conferred by any of the Shares or (b) any liability on the part of the         Chargee.   6.3    Operation: After Event of Default          The Chargee may, upon and/or after the occurrence and during the continuance of an Event of         Default,  at  its  discretion  (in  the  name  of  the  Chargor  or  otherwise  and  without  any  further         consent or authority from the Chargor):          6.3.1  exercise  (or  refrain  from  exercising)  any  voting  rights  in  respect  of  the  Charged                Property;          6.3.2  apply all dividends, distributions, interest and other monies arising from all or any of the                Charged Property in accordance with Clause 11 (Application of Monies);          6.3.3  transfer all or any of the Charged Property into the name of such nominee(s) of the                Chargee as it shall think fit;           6.3.4  cause the conversion or dematerialisation of any of the Charged Property into scripless                securities and the deposit of such scripless securities into the any account (whether in                the name of the Chargor, the Chargee or otherwise); and          6.3.5  exercise (or refrain from exercising) the powers and rights conferred on or exercisable                by the legal or beneficial owner of the Charged Property, including without limitation the                right, in relation to any company, corporation or entity whose shares, equity interests                or other securities are included in the Charged Property or any part thereof, to concur                or participate in:                 (a)   the  reconstruction,  amalgamation,  sale  or  other  disposal  of  such  company,                      corporation  or  entity  or  any  of  its  assets  or  undertaking  (including  without                      limitation the exchange, conversion or reissue of any shares, equity interests or                      securities as a consequence thereof);                 (b)   the release, modification or variation of any rights or liabilities attaching to such                      shares, equity interests or securities; and                 (c)   the exercise, renunciation or assignment of any right to subscribe for any shares,                      equity interests or securities,                                                        

 

                 in each case in such manner and on such terms as the Chargee may think fit, and the                proceeds of any such action shall form part of the Charged Property and may be applied                by the Chargee in accordance with Clause 11 (Application of Monies).   6.4    Payment of Calls          The Chargor shall pay when due all calls or other payments which may be or become due in         respect of any of the  Charged Property,  and in any case of default by the Chargor in such         payment, the Chargee may, if it thinks fit, make such payment on behalf of the Chargor in which         case any sums paid by the Chargee shall be reimbursed by the Chargor to the Chargee on         demand and shall carry interest from the date of payment by the Chargee until reimbursed in         full at the rate and in accordance with Clause 2.2 (Interest on Demands).   6.5    Exercise of Rights          The Chargor shall not exercise any of its rights and powers in relation to any of the Charged         Property in any manner which, in the opinion of the Chargee, would prejudice the value of, or         the ability of the Chargee to realise, the security created by this Deed.   7.     ENFORCEMENT OF SECURITY   7.1    Enforcement          Upon  and  after  the  occurrence and  during  the continuance of  an  Event  of  Default  or  if  the         Chargor  requests the  Chargee  to  exercise  any  of  its  powers  under  this  Deed,  the  security         created by or pursuant to this Deed is immediately enforceable and the Chargee may, without         notice to the Chargor or prior authorisation from any court, in its absolute discretion:          7.1.1  enforce all or any part of such security (at the times, in the manner and on the terms it                thinks fit) and take possession of and hold or dispose of all or any part of the Charged                Property; and          7.1.2  whether or not it has appointed a Receiver, exercise all or any of the powers, authorities                and discretions conferred by this Deed on any Receiver or otherwise conferred by law                on mortgagees and/or Receivers.   7.2    No Liability as Mortgagee in Possession          Neither the Chargee nor any Receiver shall be liable to account as a mortgagee in possession         in respect of all or any part of the Charged Property or be liable for any loss upon realisation or         for  any  neglect,  default  or  omission  in  connection  with  the  Charged  Property  to  which  a         mortgagee or a mortgagee in possession might otherwise be liable.   8.     POWERS OF SALE   8.1    Extension of Powers          The power of sale or other disposal conferred on the Chargee and on any Receiver by this         Deed  shall  arise  (and  the  Secured  Obligations  shall  be  deemed  due  and  payable  for  that         purpose) upon the occurrence and during the continuance of an Event of Default.   8.2    Restrictions          Any  restrictions  imposed  by  law  on  the  power  of sale  or  on  the  consolidation  of  security         (including without limitation any restriction under paragraph 11 of the Fourth Schedule to the                                                       

 

          Conveyancing and Property Ordinance (Cap. 219) of the Laws of Hong Kong) shall be excluded         to the fullest extent permitted by law.   9.     APPOINTMENT OF RECEIVER   9.1    Appointment and Removal          Upon and after the occurrence and during the continuance of an Event of Default or if requested         to do so by the Chargor, the Chargee may by deed or otherwise (acting through an authorised         officer of the Chargee), without prior notice to the Chargor:          9.1.1  appoint one or more persons to be a Receiver of the whole or any part of the Charged                Property;          9.1.2  appoint two or more Receivers of separate parts of the Charged Property;          9.1.3  remove (so far as it is lawfully able) any Receiver so appointed; and/or          9.1.4  appoint another person(s) as an additional or replacement Receiver(s).   9.2    Capacity of Receivers          Each person appointed to be a Receiver pursuant to Clause 9.1 (Appointment and Removal)         shall be:          9.2.1  entitled to act individually or together with any other person appointed or substituted as                Receiver;          9.2.2  for  all  purposes  deemed  to  be  the  agent  of  the  Chargor  which  shall  be  solely                responsible for his acts, defaults and liabilities and for the payment of his remuneration                and no Receiver shall at any time act as agent for the Chargee; and          9.2.3  entitled to remuneration for his services at a rate to be fixed by the Chargee from time                to time.   9.3    Statutory Powers of Appointment          The powers of appointment of a Receiver herein contained shall be in addition to all statutory         and other powers of appointment of the Chargee under applicable law and such powers shall         remain exercisable from time to time by the Chargee in respect of all or any part of the Charged         Property.   10.    POWERS OF RECEIVER   10.1   Powers of Receiver          Every  Receiver  shall  (subject  to  any  restrictions  in  the  instrument  appointing  him  but         notwithstanding  any  winding-up  or  dissolution  of  the  Chargor,  and  subject  to  any existing         security where applicable) have and be entitled to exercise, in relation to the Charged Property         (and any assets of the Chargor which, when got in, would be Charged Property) or that part         thereof in respect of which he was appointed, and as varied and extended by the provisions of         this Deed (in the name of or on behalf of the Chargor or in his own name and, in each case, at         the cost of the Chargor):          10.1.1 all the powers conferred by the Conveyancing and Property Ordinance (Cap. 219) of                the  Laws  of  Hong  Kong  on  mortgagors  and  on  mortgagees  in  possession  and  on                                                       

 

                 receivers  appointed  under  that  Ordinance  (as  if  the  Charged  Property  constituted                property that is subject to that Ordinance and as if such Receiver were appointed under                that Ordinance), free from any limitation under paragraph 11 of the Fourth Schedule to                that Ordinance;          10.1.2 all the powers and rights of an absolute owner and power to do or omit to do anything                which the Chargor itself could do or omit to do; and          10.1.3 the power to do all things (including without limitation bringing or defending proceedings                in the name or on behalf of the Chargor) which seem to that Receiver to be incidental                or conducive to (a) any of the functions, powers, authorities or discretions conferred on                or vested in him or (b) the exercise of any Collateral Rights (including without limitation                realisation of all or any part of the Charged Property) or (c) bringing to his hands any                assets of the Chargor forming, or which, when got in, would be part of the Charged                Property.   10.2   Additional Powers of Receiver          In addition  to  and  without  prejudice  to  the  generality  of  the  foregoing,  every  Receiver  shall         (subject  to  any  limitations  or  restrictions  expressed  in  the  instrument  appointing  him  but         notwithstanding  any  winding-up  or  dissolution  of  the  Chargor  and  subject  to  any existing         security where applicable) have the following powers in relation to the Charged Property (and         any assets of the Chargor which, when got in, would be part of the Charged Property) in respect         of which he was appointed (and every reference in this Clause 10.2 to the “Charged Property”         shall  be  read as  a reference to that  part  of  the  Charged Property  in respect  of  which such         Receiver was appointed):          10.2.1 Take Possession                  power to enter upon, take immediate possession of, collect and get in the Charged                 Property  including  without  limitation  dividends  and  other  income  whether  accrued                 before or after the date of his appointment;          10.2.2 Proceedings and Claims                  power to bring, prosecute, enforce, defend and abandon applications, claims, disputes,                 actions,  suits  and  proceedings  in  connection  with  all  or  any  part  of  the  Charged                 Property or this Deed in the name of the Chargor or in his own name and to submit to                 arbitration, negotiate, compromise and settle any such applications, claims, disputes,                 actions, suits or proceedings;          10.2.3 Carry on Business                  power to carry on and manage, or concur in the carrying on and management of or to                 appoint a manager of, the whole or any part of the Charged Property or any business                 relating thereto in such manner as he shall in his absolute discretion think fit;          10.2.4 Deal with Charged Property                  power, in relation to the Charged Property and each and every part thereof, to sell,                 transfer, convey, dispose of or concur in any of the foregoing by the Chargor or any                 other receiver or manager of the Chargor (including without limitation any sale, transfer,                 conveyance or disposal in favour of the Chargee) in such manner and generally on                 such terms as he thinks fit;         10.2.5  Acquisitions                                                       

 

                  power  to  purchase,  lease,  hire  or  otherwise  acquire  any  assets  or  rights  of  any                 description which he shall in his absolute discretion consider necessary or desirable                 for the carrying on, improvement or realisation of the whole or any part of the Charged                 Property or otherwise for the benefit of the whole or any part of the Charged Property;          10.2.6 New Subsidiary                  power to promote, procure the formation or otherwise acquire the share capital of, any                 body  corporate  with  a  view  to  such  body  corporate  becoming  a  subsidiary  of  the                 Chargor or otherwise and purchasing, leasing or otherwise acquiring an interest in the                 whole or any part of the Charged Property or carrying on any business in succession                 to the Chargor or any subsidiary of the Chargor;          10.2.7 Insurance                  power to effect, maintain or renew indemnity and other insurances and to obtain bonds                and performance guarantees;          10.2.8 Borrowing                  power to raise or borrow money from the Chargee or any other person to rank either in                 priority to the security constituted by this Deed or any part of it or otherwise and with or                 without a mortgage or charge on the Charged Property or any part of it on such terms                 as he shall in his absolute discretion think fit (and no person lending such money shall                 be concerned to see or enquire as to the propriety or purpose of the exercise of such                 power or the application of money so raised or borrowed);          10.2.9 Redemption of Security                 power to redeem, discharge or compromise any security whether or not having priority                to the security constituted by this Deed or any part of it;          10.2.10 Covenants, Guarantees and Indemnities                  power to enter into bonds, covenants, guarantees, commitments, indemnities and other                obligations  or  liabilities  as  he  shall  think  fit, to make all  payments  needed to effect,                maintain or satisfy such obligations or liabilities and to use the company seal of the                Chargor; and          10.2.11 Exercise of Powers in Chargor’s Name                  power to exercise any or all of the above powers on behalf of and in the name of the                 Chargor (notwithstanding any winding-up or dissolution of the Chargor) or on his own                 behalf.   10.3   Terms of Disposition          In making any sale or other disposal of all or any part of the Charged Property or any acquisition         in the exercise of their respective powers (including without limitation a disposal by a Receiver         to any subsidiary of the Chargor or other body corporate as is referred to in Clause 10.2.6) a         Receiver or the Chargee may accept or dispose of as, and by way of consideration for, such         sale or other disposal or acquisition, cash, shares, loan capital or other obligations, including         without limitation consideration fluctuating according to or dependent upon profit or turnover         and  consideration  the  amount  whereof  is  to  be  determined  by  a  third  party.  Any  such         consideration  may,  if  thought  expedient  by  the  Receiver  or  the  Chargee,  be  nil  or  may  be         payable or receivable in a lump sum or by instalments. Any contract for any such sale, disposal                                                       

 

          or acquisition by the Receiver or the Chargee may contain conditions excluding or restricting         the personal liability of the Receiver or the Chargee.   11.    APPLICATION OF MONIES   11.1   Order of Application          Save as otherwise expressly provided in this Deed,  all moneys and/or  non-cash recoveries         and/or proceeds received or recovered by the Chargee or any Receiver pursuant to this Deed         or the powers conferred by it shall (subject to the claims of any person having prior rights thereto         (including the claims of the Chargee as beneficiary of any existing security where applicable)         and  subject  to  Clause 11.2 (Suspense  Account))  be  applied  in  the  payment  of  the  costs,         charges  and  expenses  incurred  and  payments  made  by  any  Receiver,  the  payment  of  his         remuneration and the discharge of any liabilities incurred by such Receiver in, or incidental to,         the exercise of any of his powers.   11.2   Suspense Account          Until all Secured Obligations are paid in full, all monies received, recovered or realised under         this Deed by the Chargee or any Receiver or the powers conferred by it (including the proceeds         of any conversion of currency) may in its discretion be credited to and held in any suspense or         impersonal account pending their application from time to time in or towards the discharge of         any of the Secured Obligations in accordance with Clause 11.1 (Order of Application).   11.3   Application by Chargor          Any  application  under  this  Clause 11 shall  override  any  application  or  appropriation  by  the         Chargor.   12.    RECEIPT AND PROTECTION OF PURCHASERS   12.1   Receipt and Consideration          The receipt of the Chargee or any Receiver shall be conclusive discharge to a purchaser of any         part of the Charged Property from the Chargee or such Receiver and in making any sale or         disposal of any part of the Charged Property or making any acquisition, the Chargee or any         Receiver may do so for such consideration, in such manner and on such terms as it thinks fit.   12.2   Protection of Purchasers          No  purchaser  or  other  person  dealing  with the  Chargee or  any  Receiver  shall  be  bound  to         inquire whether the right of the Chargee or such Receiver to exercise any of its powers has         arisen or become exercisable or be concerned with any propriety or regularity on the part of the         Chargee  or  such  Receiver  in  such  dealings.  The  protection  given  to  purchasers  from  a         mortgagee in sections 52 and 55 of the Conveyancing and Property Ordinance (Cap. 219) of         the  Laws  of  Hong  Kong  shall  apply mutatis  mutandis to  purchaser(s)  and  other  person(s)         dealing with the Chargee or any Receiver.   13.    POWER OF ATTORNEY   13.1   Appointment and Powers          The Chargor by way of security irrevocably (within the meaning of Section 4 of the Powers of         Attorney  Ordinance  (Cap.  31)  of  the  Laws  of Hong  Kong)  appoints  the  Chargee  and  any         Receiver severally to be its attorney and in its name, on its behalf and as its act and deed to                                                        

 

          execute,  deliver  and  perfect  all  documents  and  do  all  things  which  the  Chargee  or  such         Receiver may consider to be necessary for:          13.1.1 carrying  out  any  obligation  imposed  on  the  Chargor  by  this  Deed  or  any  other                agreement  binding  on  the  Chargor  to  which the  Chargee  is  party  (including  without                limitation  the  execution  and  delivery  of  any  deeds,  charges,  assignments  or  other                security and any transfers of the Charged Property or any part thereof); and          13.1.2 enabling the Chargee and any Receiver to exercise, or delegate the exercise of, any of                the rights, powers and authorities conferred on them by or pursuant to this Deed or by                law  (including,  without  limitation,  upon  or  after  the  occurrence and  during  the                continuance of an Event of Default, the exercise of any right of a legal or beneficial                owner of the Charged Property or any part thereof).   13.2   Ratification          The Chargor shall ratify and confirm all things done and all documents executed by any attorney         in the exercise or purported exercise of all or any of his powers.   14.    REPRESENTATIONS          The Chargor represents and warrants to the Chargee that:   14.1   Power and capacity          It  is  a  company,  duly  incorporated  with  limited  liability  and  is  validly  existing  and  in  good         standing under the laws of its jurisdiction of incorporation. It has the power to own its assets         and carry on its business as it is being conducted.   14.2   Compliance with laws          It will comply with and observe all rules and guidelines from time to time imposed on it by such         exchange  and  other  relevant competent  authorities  in  all  material  respects  in  relation  to  its         ownership of shares in the Subject Entity and will promptly notify the Chargee of any material         non-compliance or non-observance with or of such rules and guidelines.   14.3   Binding obligations          Subject to any general principles of law as at the date of this Deed limiting its obligations:          (a)     each of the obligations expressed to be assumed by it in this Deed are legal, valid,                 binding and enforceable obligations; and           (b)     (without limiting the generality of paragraph (a) above), this Deed creates the security                 interests which it purports to create and such security interests are valid and effective.   14.4   No conflict          The entry into and performance by it of, and the transactions contemplated by, this Deed do         not and will not:          (a)     conflict with any law or regulation applicable to it;          (b)     conflict with its constitutional documents;          (c)     conflict with any agreement or instrument binding upon it or any of its assets; or                                                       

 

          (d)     result in the existence of or oblige it to create any security over all or any of its assets                 (other than the security constituted pursuant to this Deed).   14.5   Power and authority          (a)     It has the power to enter into, perform and deliver, and has taken all necessary action                 to authorise its entry into, performance and delivery of, this Deed.          (b)     No limit on its powers will be exceeded as a result of the grant of security contemplated                 by this Deed.          (c)     It is acting as principal for its own account and not as agent or trustee or in any other                 capacity on behalf of any third party.   14.6   Validity and admissibility in evidence          All Authorisations required:          (a)     to enable it lawfully to enter into, exercise its rights and comply with its obligations in                 this Deed;          (b)     to make this Deed admissible in evidence in its jurisdiction of incorporation and/or Hong                 Kong; and/or          (c)     to enable it to create the security expressed to be created by it pursuant to this Deed                 and to ensure that such security has the priority and ranking it is expressed to have,          have been obtained or effected and are in full force and effect.           It has not taken any action nor have any other steps been taken or legal proceedings been         started or (to the best of its knowledge and belief) threatened against it for its bankruptcy or         winding-up  or  insolvency  or  for  the  appointment  of  a  receiver,  administrator,  administrative         receiver, trustee or similar officer of it or of any or all of its assets and no other steps which are         similar or which would have a similar effect have been taken in any jurisdiction   14.7   Choice of law          The choice of the laws of Hong Kong as the governing law of this Deed will be recognised and         enforced in the courts of Hong Kong.   14.8   Enforceability          Any  judgment  obtained  in  the  courts  of  Hong  Kong  in  relation  to  this  Deed will be         recognised and enforced in Hong Kong.   14.9   No filing or stamp taxes          Under  the  law  of  its  jurisdiction  of  incorporation  it  is  not  necessary  that  this  Deed  be  filed,         recorded  or  enrolled  with  any  court  or  other  authority  in that  jurisdiction  or  that  any  stamp,         registration (except for the registration set out in Clause 3.1 (Perfection) of this Deed) or similar         tax be paid on or in relation to this Deed.                                                        

 

   14.10  Deduction of Tax          It is not required under the law applicable where it is incorporated or resident or at the address         specified in this Deed to make any deduction for or on account of Tax from any payment it may         make under the Loan Agreement or this Deed.   14.11  Pari passu ranking          (a)     This Deed  creates (or  once  entered  into,  will  create)  in  favour  of  the  Chargee  the                 security which it is expressed to create with the ranking and priority it is expressed to                 have.          (b)     Without  limiting  paragraph  (a)  above,  its  payment  obligations  under  the Loan                 Agreement  rank  at  least  pari  passu  with  the  claims  of  all  its  other  unsecured  and                 unsubordinated creditors, except for obligations mandatorily preferred by law applying                 to companies generally.   14.12  No proceedings pending or threatened          No litigation, arbitration or administrative proceedings of or before any court, arbitral body or         agency have (to the best of its knowledge and belief) been started or threatened against it.   14.13  Charged Property          (a)     All  consents  necessary  to  enable  any  asset  that  is  expressed  to  be  subject  to  any                 security under this Deed to be the subject of effective security under this Deed have                 been obtained and are in full force and effect.          (b)     It is the sole legal and beneficial owner of the Charged Property (subject to the security                 constituted pursuant to this Deed).          (c)     It has not sold or otherwise disposed of, or created, granted or permitted to subsist any                 Security over, all or any of its right, title and interest in the Charged Property (other than                 the security constituted pursuant to this Deed and other than as expressly permitted                 under this Deed).          (d)     As at the date of this Deed, the particulars of the Shares as set out in Schedule 1                 (Particulars of Shares) are accurate in all respects.          (e)     The Shares have been validly issued by the Subject Entity and are fully paid up and                 there are no monies or liabilities payable or outstanding in relation to any of the Shares.          (f)     It legally and beneficially owns all of the Charged Property, free and clear of all Security,                 except for any security constituted hereby.          (g)     The constitutional documents of the Subject Entity do not restrict or inhibit any transfer                 of those Shares on creation or enforcement of the security under this Deed.                                                        

 

   14.14  Non-Hong Kong Company          On the date of this Deed, the Chargor is not registered as a non-Hong Kong company under         Part 16 of the Companies Ordinance (Cap. 622) of the Laws of Hong Kong nor has it made any         application to be so registered.   14.15  Repetition          Each of the representations and warranties set out or referred to in Clause 14 above shall be         deemed to be repeated by the Chargor on each date occurring after the date of this Deed, by         reference to the facts and circumstances existing at the date on which such representation or         warranty is deemed to be made or repeated.   15.    EFFECTIVENESS OF SECURITY   15.1   Continuing Security          The  security  created  by  or  pursuant  to  this Deed  shall  remain  in  full  force  and  effect  as  a         continuing security for the Secured Obligations unless and until discharged by the Chargee. No         part of the security from time to time intended to be constituted by this Deed will be considered         satisfied or discharged by any intermediate payment, discharge or satisfaction of the whole or         any part of the Secured Obligations.   15.2   Cumulative Rights          The security created by this Deed and the Collateral Rights shall be cumulative, in addition to         and independent of every other security which the Chargee may at any time hold for any or all         of  the  Secured  Obligations  or  any  rights,  powers  and  remedies  provided by  law.  No  prior         security held by the Chargee over the whole or any part of the Charged Property shall merge         into the security constituted by this Deed.   15.3   Chargor’s Obligations          None of the obligations of the Chargor under this Deed, the Collateral Rights or the security         constituted by this Deed shall be affected by an act, omission, matter, thing or event which, but         for this Clause 15.3, would reduce, release or prejudice any of the obligations of the Chargor         under this Deed, the Collateral Rights or the security constituted by this Deed, including (without         limitation and whether or not known to the Chargor or the Chargee):          15.3.1 the  winding-up,  dissolution,  administration,  reorganisation,  death,  insolvency,                incapacity or bankruptcy of the Chargor or any other person or any change in its status,                function, control or ownership;          15.3.2 any of the obligations of the Chargor or any other person under the Loan Agreement,                or under any other security relating to the Loan Agreement being or becoming illegal,                invalid, unenforceable or ineffective in any respect;          15.3.3 any  time,  waiver  or  consent  granted  to,  or  composition  with,  the  Chargor  or  other                person;          15.3.4 the release of the Chargor or any other person under the terms of any composition or                arrangement with any creditor of the Chargor or other person;          15.3.5 the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect                to perfect, take up or enforce, any rights against, or security over assets of, the Chargor                or other person or any non-presentation or non-observance of any formality or other                                                       

 

                 requirement in respect of any instrument or any failure to realise the full value of any                security;          15.3.6 any incapacity or lack of power, authority or legal personality of or dissolution or change                in the members or status of the Chargor or any other person;          15.3.7 any amendment, novation, supplement, extension (whether of maturity or otherwise) or                restatement  (in  each  case  however  fundamental  and  of  whatsoever  nature,  and                whether  or  not  more  onerous)  or  replacement  of the  Loan  Agreement or  any  other                document or security or of the Secured Obligations;          15.3.8 any unenforceability, illegality or invalidity of any obligation of any person under the                Loan Agreement or any other document or security;          15.3.9 any insolvency or similar proceedings;          15.3.10 any claims or set-off right that the Chargor may have; or          15.3.11 any law, regulation or decree or order of any jurisdiction affecting the Chargor.   15.4   Chargor Intent          Without  prejudice  to  the  generality  of  Clause 16.3 (Chargor’s  Obligations),  the  Chargor         expressly confirms that it intends that the security created under this Deed, and the Collateral         Rights, shall extend from time to time to any (however fundamental and of whatsoever nature,         and whether or not more onerous) variation, increase, extension or addition of or to the Loan         Agreement  and/or any facility or amount made available under the Loan Agreement for the         purposes of or in connection with any of the following: acquisitions of any nature; increasing         working  capital;  enabling  investor  distributions  to  be  made;  carrying  out  restructurings;         refinancing existing facilities; refinancing any other indebtedness; making facilities available to         new borrowers; any other variation or extension of the purposes for which any such facility or         amount  might  be made  available  from  time  to  time;  and  any  fees,  costs  and/or  expenses         associated with any of the foregoing.    15.5   Remedies and Waivers          No failure on the part of the Chargee to exercise, or any delay on its part in exercising, any         Collateral Right shall operate as a waiver thereof, nor shall any single or partial exercise of any         Collateral Right preclude any further or other exercise of that or any other Collateral Right.   15.6   No Liability          None of the Chargee, its nominee(s) or any Receiver shall be liable by reason of (a) taking any         action permitted by this Deed or (b) any neglect or default in connection with all or any part of         the Charged Property or (c) taking possession of or realising all or any part of the Charged         Property, except in the case of gross negligence or wilful default upon its part (as finally judicially         determined).   15.7   Partial Invalidity          If, at any time, any provision of this Deed is or becomes illegal, invalid or unenforceable in any         respect under the law of any jurisdiction, neither the legality, validity or enforceability of the         remaining provisions of this Deed under such laws nor of such provision under the laws of any         other jurisdiction shall in any way be affected or impaired thereby and, if any part of the security         intended to be created by or pursuant to this Deed is invalid, unenforceable or ineffective for         any reason, that shall not affect or impair any other part of that security.                                                       

 

   15.8   No Prior Demand          The Chargee shall not be obliged to make any demand of or enforce any rights or claim against         the Chargor or any other person, to take any action or obtain judgment in any court against the         Chargor or any other person or to make or file any proof or claim in a liquidation, bankruptcy or         insolvency of the Chargor or any other person or to enforce or seek to enforce any other security         in respect of any or all of the Secured Obligations before exercising any Collateral Right.   15.9   Deferral of rights          Until the time when (i) all Secured Obligations have been irrevocably discharged in full, (ii) all         amounts which may be or become payable by the Chargor under or in connection with the Loan         Agreement have been irrevocably paid in full and (iii) the Chargee is no longer under any further         obligation  (whether  actual  or  contingent)  to  provide  any  further  advance  or  financial         accommodation to the Chargor under  the Loan Agreement, the Chargor will not (unless the         Chargee otherwise directs) exercise any rights which it may have by reason of performance by         it of its obligations under this Deed:          15.9.1 to be indemnified by the Chargor;          15.9.2 to claim  any  contribution from  any  guarantor  of  the  Chargor’s  obligations  under the                Loan Agreement; and/or          15.9.3 to take the benefit (in whole or in part and whether by way of subrogation or otherwise)                of any rights of the Chargee under the Loan Agreement or of any other guarantee or                security taken pursuant to, or in connection with, the Loan Agreement by the Chargee.   15.10  Settlement conditional          Any settlement, discharge or release hereunder in relation to the Chargor or all or any part of         the Charged Property shall be conditional upon no security or payment by the Chargor to, or         recovery  from  the  Chargor  by,  the  Chargee  being  avoided  or  reduced  by  virtue  of  any         bankruptcy, insolvency, liquidation or similar laws of general application or any similar event or         for any other reason and shall in the event of any such avoidance or reduction or similar event         be void.   16.    RELEASE OF SECURITY   16.1   Redemption of Security          Upon the time when (i) all Secured Obligations have been irrevocably discharged in full, (ii) all         amounts which may be or become payable by the Chargor under or in connection with the Loan         Agreement have been irrevocably paid in full and (iii) the Chargee is no longer under any further         obligation  (whether  actual  or  contingent)  to  provide  any  further  advance  or  financial         accommodation to the Chargor under the Loan Agreement, the Chargee shall, at the request         (with reasonable notice) and cost of the Chargor, release and cancel the security constituted         by this Deed and procure the reassignment to the Chargor of the property and assets assigned         to the Chargee pursuant to this Deed (to the extent not otherwise sold, assigned or otherwise         disposed of  or  applied  in accordance  with  this  Deed),  in  each case  subject  to  Clause 18.2         (Avoidance of Payments) and 17.10 (Settlement conditional) and without recourse to, or any         representation or warranty by, the Chargee or any of its nominees.   16.2   Avoidance of Payments          If the Chargee considers that any amount paid or credited to or recovered by the Chargor is         capable of  being  avoided  or  reduced  by  virtue of  any  bankruptcy,  insolvency,  liquidation  or                                                       

 

          similar laws, the liability of the Chargor under this Deed and the security constituted by this         Deed shall continue and such amount shall not be considered to have been irrevocably paid.   17.    SUBSEQUENT AND PRIOR SECURITY INTERESTS   17.1   Subsequent security interests          If the Chargee at any time receives or is deemed to have received notice of any subsequent         Security or other interest affecting all or any part of the Charged Property or any assignment or         transfer of the Charged Property  which is prohibited  by  the terms of this Deed  or the Loan         Agreement, all payments thereafter by or on behalf of the Chargor to the Chargee shall be         treated as having been credited to a new account of the Chargor and not as having been applied         in reduction of the Secured Obligations as at the time when (or at any time after) the Chargee         received  such  notice  of  such  subsequent  Security  or  other  interest  or  such  assignment  or         transfer.   17.2   Prior security interests          In the event of any action, proceeding or step being taken to exercise any powers or remedies         conferred by any prior ranking Security or upon the exercise by the Chargee or any Receiver         of any power of sale under this Deed or any Collateral Right, the Chargee may redeem any         prior ranking Security over or affecting any Charged Property or procure the transfer of any         such prior ranking Security to itself. The Chargee may settle and agree the accounts of the         beneficiary of any such prior Security and any accounts so settled and agreed will be conclusive         and  binding  on  the  Chargor.  All  principal,  interest,  costs,  charges,  expenses  and/or  other         amounts relating to and/or incidental to any such redemption or transfer shall be paid by the         Chargor to the Chargee upon demand.   18.    CURRENCY CONVERSION AND INDEMNITY   18.1   Currency Conversion          For the purpose of or pending the discharge of any of the Secured Obligations the Chargee         may convert any money received, recovered or realised or subject to application by it under         this Deed from one currency to another, as the Chargee may think fit, and any such conversion         shall be effected at the Chargee’s spot rate of exchange (or, if no such spot rate of exchange         is quoted by the Chargee, such other rate of exchange as may be available to the Chargee as         selected by the Chargee) for the time being for obtaining such other currency with such first-        mentioned currency.   18.2   Currency Indemnity          If any sum (a “Sum”) owing by the Chargor under this Deed or any order or judgment given or         made in relation to this Deed has to be converted from the currency (the “First Currency”) in         which such Sum is payable into another currency (the “Second Currency”) for the purpose of:          18.2.1 making or filing a claim or proof against the Chargor;          18.2.2 obtaining an order or judgment in any court or other tribunal;          18.2.3 enforcing any order or judgment given or made in relation to this Deed; or          18.2.4 applying the Sum in satisfaction of any of the Secured Obligations,          the Chargor shall indemnify the Chargee from and against any loss suffered or incurred as a         result of any discrepancy between (a) the rate of exchange used for such purpose to convert                                                       

 

          such  Sum  from  the  First  Currency  into  the  Second  Currency  and  (b)  the  rate  or  rates  of         exchange available to the Chargee at the time of such receipt or recovery of such Sum.   19.    COSTS, EXPENSES AND INDEMNITY   19.1   Costs and expenses          The Chargor shall, on demand of the Chargee, reimburse the Chargee on a full indemnity basis         for all costs and expenses (including legal fees and any value added tax) reasonably incurred         by the Chargee in connection with (a) the execution of this Deed or otherwise in relation to this         Deed, and (b) the perfection or enforcement of the security constituted by this Deed.   19.2   Stamp taxes          The Chargor shall pay all stamp, registration and other Taxes to which this Deed, the security         contemplated in this Deed and/or any judgment given in connection with this Deed is, or at any         time may be, subject and shall, from time to time, indemnify the Chargee on demand against         any liabilities, costs, claims and/or expenses resulting from any failure to pay or delay in paying         any such Tax.   19.3   Indemnity          The Chargor shall, notwithstanding any release or discharge of all or any part of the security         constituted by this Deed, indemnify the Chargee, its agents, attorneys and any Receiver against         any  action,  proceeding,  claims,  losses,  liabilities  and  costs  which  it  may  sustain  as  a         consequence  of  any  breach by  the  Chargor  of  the  provisions  of  this  Deed,  the  exercise or         purported exercise of any of the rights and powers conferred on any of them by this Deed or         otherwise relating to the Charged Property or any part thereof.   20.    PAYMENTS FREE OF DEDUCTION   20.1   Tax gross-up          All payments to be made to the Chargee under this Deed shall be made free and clear of and         without deduction for or on account of Tax unless the Chargor is required to make such payment         subject to the deduction or withholding of Tax, in which case the sum payable by the Chargor         in respect of which such deduction or withholding is required to be made shall be increased to         the extent necessary to ensure that, after the making of such deduction  or  withholding, the         person  on  account  of  whose  liability  to  Tax  such  deduction  or  withholding  has  been  made         receives and retains (free from any liability in respect of any such deduction or withholding) a         net sum equal to the sum which it would have received and so retained had no such deduction         or withholding been made or required to be made.   20.2   No set-off or counterclaim          All payments to be made by the Chargor under this Deed shall be calculated and be made         without (and free and clear of any deduction for) set-off or counterclaim.   21.    DISCRETION AND DELEGATION   21.1   Discretion          Any liberty or power which may be exercised or any determination which may be made under         this  Deed  by  the  Chargee  or  any  Receiver  may  be  exercised  or  made  in  its  absolute  and         unfettered discretion without any obligation to give reasons.                                                        

 

   21.2   Delegation          Each of the Chargee and any Receiver shall have full power to delegate (either generally or         specifically)  the  powers,  authorities  and  discretions  conferred  on  it  by  this  Deed  (including         without limitation the power of attorney under Clause 13 (Power of Attorney)) on such terms         and conditions as it shall see fit which delegation shall not preclude any subsequent exercise,         any  subsequent  delegation  or  any  revocation  of  such  power,  authority  or  discretion  by  the         Chargee or any Receiver.   22.    SET-OFF          The  Chargee  may  set  off  any  matured  obligation  due  from  the  Chargor  under the  Loan         Agreement (to the extent beneficially owned by the Chargee) against any matured obligation         owed by the Chargee to the Chargor, regardless of the place of payment, booking branch or         currency of either obligation. If such obligations are in different currencies, the Chargee may         convert either obligation at a market rate of exchange in its usual course of business for the         purpose of such set-off.   23.    CHANGES TO PARTIES   23.1   Successors          This Deed shall be binding upon and enure to the benefit of each party hereto and its and/or         any subsequent successors and permitted assigns and transferees. Without prejudice to the         foregoing,  this  Deed  shall  remain  in  effect  despite  any  amalgamation  or  merger  (however         effected) relating to the Chargee; and references to the Chargee herein shall be deemed to         include  any  person  who,  under  the  laws  of  its  jurisdiction  of  incorporation  or  domicile,  has         assumed the rights and obligations of the Chargee under this Deed or to which, under such         laws, those rights and obligations have been transferred.   23.2   No Assignment or Transfer by Chargor          The Chargor may not assign or transfer any or all of its rights (if any) and/or obligations under         this Deed.   23.3   Assignment and Transfer by Chargee to Successor          The Chargee may:          23.3.1 assign all or any of its rights under this Deed; and          23.3.2 transfer all or any of its obligations (if any) under this Deed,          and  the  Chargor  shall,  upon  the reasonable request  of  the  Chargee,  enter  into  such         documentation as the Chargee may require to give effect to any such assignment or transfer.    23.4   Disclosure          The Chargor agrees to any disclosure of any information.    24.    AMENDMENTS AND WAIVERS          Any provision of this Deed may be amended or waived only by agreement in writing between         the Chargor and the Chargee.                                                        

 

   25.    NOTICES   25.1   Communications in writing          Each  communication  to  be  made  by  a  party  hereto  to  the  other  party  hereto  under  or  in         connection with this Deed shall be made in writing and, unless otherwise stated, shall be made         by fax or letter.   25.2   Addresses          The address and fax number (and the department or officer, if any, for whose attention the         communication is to be made) of each party hereto for any communication or document to be         made or delivered under  or in connection  with this Deed is that  identified  with its signature         below, or any substitute address, fax number, or department or officer as that party may notify         to the other party by not less than five Business Days’ notice.   25.3   Delivery          Any  communication  or  document  made  or  delivered  by  one  party  hereto  to  the  other  party         hereto under or in connection with this Deed will only be effective:          25.3.1 if by way of fax, when received in legible form; or          25.3.2 if by way of letter, when it has been left at the relevant address or five Business Days                after being deposited in the post postage prepaid in an envelope addressed to it at that                address,          and, if a particular department or officer is specified as part of the address details of such other         party  provided  under  Clause 25.2 (Addresses),  if  addressed  to  that  department  or  officer,         provided that any communication or document to be made or delivered to the Chargee will be         effective only when actually received by the Chargee and then only if it is expressly marked for         the attention of the department or officer identified with the Chargee’s signature below (or any         substitute department or officer as the Chargee shall specify for this purpose).   25.4   Language          Any notice given under or in connection with this Deed must be in English. All other documents         provided under or in connection with this Deed must be:          25.4.1 in English; or          25.4.2 if not in English, and if so required by the Chargee, accompanied by a certified English                translation and, in this case, the English translation will prevail unless the document is                a constitutional, statutory or other official document.   26.    COUNTERPARTS          This Deed may be executed in any number of counterparts, all of which taken together shall         constitute one and the same instrument.   27.    GOVERNING LAW          This Deed is governed by and construed in accordance with the laws of Hong Kong.                                                        

 

   28.    JURISDICTION   28.1   Hong Kong Courts          The courts of Hong Kong have exclusive jurisdiction to settle any dispute (a “Dispute”) arising         out  of,  or connected  with this  Deed (including  a dispute  regarding the  existence, validity  or         termination of this Deed or the consequences of its nullity).   28.2   Convenient Forum          The parties hereto agree that the courts of Hong Kong are the most appropriate and convenient         courts to settle Disputes between them and, accordingly, that they will not argue to the contrary.   28.3   Exclusive Jurisdiction          This  Clause 28  (Jurisdiction)  is  for  the  benefit  of  the  Chargee  only.  As  a  result  and         notwithstanding Clause 28.1 (Hong Kong Courts), nothing herein shall prevent the Chargee         from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent         allowed by law the Chargee may take concurrent proceedings in any number of jurisdictions.   28.4   Waiver of immunity          The Chargor waives generally all immunity it or its assets or revenues may otherwise have in         any jurisdiction, including immunity in respect of:         28.4.1  the giving of any relief by way of injunction or order for specific performance or for the                recovery of assets or revenues; and/or         28.4.2  the  issue  of  any  process  against  its  assets  or  revenues  for  the  enforcement  of  a                judgment or, in an action in rem, for the arrest, detention or sale of any of its assets and                revenues.   IN WITNESS WHEREOF this Deed has been signed on behalf of the Chargee and executed as a deed  by the Chargor and is intended to be and is hereby delivered by it as a deed.                                                        

 

                                           SCHEDULE 1                                   PARTICULARS OF SHARES   Beneficial owner                Shares of the Subject Entity   PELICAN HOLDCO LIMITED          100  ordinary shares of HK$1.00 each  in the share  capital of  the                                  Subject Entity                                                                                            

 

                                           SCHEDULE 2                                  INSTRUMENT OF TRANSFER                                                                 Super Dragon Ltd.                                         (the “Company”)                           We     PELICAN HOLDCO LIMITED  (the “Transferor”) in consideration of the Sum of Dollars   paid to me by (name in full)   of (full address)   (hereinafter called “the said Transferee”) do hereby transfer to the said Transferee the                                        share(s) numbered    standing  in  my  name  in  the  Register  of  the  Company  to  hold  unto  the  said  Transferee  or  (his/her  Executors or Administrators/its Assigns), subject to the several conditions upon which I hold the same  at the time of execution hereof. And we the said Transferee do hereby agree to take the said Share(s)  subject to the same conditions.   Witness our hands the                 day of    Signed by the Transferor                          )     in the presence of the witness:-                  )                                                       )   Witness’ address                                  )                                                       )  Signature:                                                                                                                                                  )        PELICAN HOLDCO LIMITED                                                     )                (Transferor)   Witness’ signature                                )                                                              Signed by the Transferee                          )     in the presence of the witness:-                  )                                                       )   Witness’ full name                                )                                                       )   Witness’ address                                  )                                                       )  Signature:                                                                                                                                                  )                                                                          )                (Transferee)   Witness’ signature                                )                                                          

 

                                             CONTRACT NOTES                                                 SOLD NOTE    Transferee       Address                             Name of company in which the share(s) to be transferred -                                               Super Dragon Ltd.  Number of share(s)      Consideration received                                                          For and on behalf of                                                   PELICAN HOLDCO LIMITED                                                (Transferor)                                                            Authorised Signature(s)   Dated                                                         BOUGHT NOTE      Transferor     PELICAN HOLDCO LIMITED  Address        3 Cadogan Gate, London SW1X 0AP, England                     Name of company in which the share(s) to be transferred -                                               Super Dragon Ltd.    Number of share(s)      Consideration paid                                                                                                                    (Transferee)                                                            Authorised Signature(s)                                                            Dated                

 

                                           SCHEDULE 3            FORM OF DEED OF APPOINTMENT OF PROXY AND POWER OF ATTORNEY   We, PELICAN HOLDCO LIMITED, hereby:   1.     appoint __________________ as my proxy to vote at meeting of the shareholders of Super         Dragon  Ltd. (the “Company”)  in  respect  of  the  Shares  (as  defined  in  the  Share  Charge         (referred to below)) which may have been or may from time to time be issued and/or registered         in our name; and    2.     irrevocably appoint _____________________ as my duly authorised representative and duly         appointed attorney-in-fact to sign resolutions in writing of the Company in respect of the Shares         (as defined in the Share Charge (referred to below)) which may have been or may from time to         time be issued and/or registered in our name.   This  power  of attorney  granted  hereunder  is  irrevocable  by  reason  of  being  given  for  valuable  consideration.   The power of attorney shall become effective only after the security created under the Share Charge  dated       2019 granted  and  delivered  by PELICAN  HOLDCO  LIMITED in favour  of KVH  MEDIA  GROUP LIMITED (the “Share Charge”) becomes enforceable under the terms thereof.   IN  WITNESS   whereof  this  instrument  has  been  duly  executed  as  a  deed  this  _____  day  of  ___________.    EXECUTED AS A DEED BY                        )                                                  )   PELICAN HOLDCO LIMITED                                                 )                                                                                             )  For and on behalf of                                                     PELICAN HOLDCO LIMITED       In the presence of:                                                 Signature of Witness     Name:                                            Address:                                         Occupation:                                          

 

                                           EXECUTION   THE CHARGOR   SEALED, EXECUTED and DELIVERED as a            )  DEED for and on behalf of                      )  PELICAN HOLDCO LIMITED                         )  Alex Collins                                                 )  Director  by ___/s/ ALEX COLLINS___________              ) __________________________                                                  Title:  in the presence of   /s/ SAM FENTON- WHITTET  _______________________                             Witness Name: Sam Fenton-Whittet   Occupation: Finance   Address:       3 Cadogan Gate, London SW1X 0AS   Telephone:     ***   Fax:              Attention:                                                                                                                                         

 

   THE CHARGEE   SIGNED for and on behalf of                    )  KVH MEDIA GROUP LIMITED                       )                                                      )    /s/ MARK WOODHEAD                                                 )  By: ___Mark Woodhead______________             ) ___________________________                                                 ) Title:  Director         Address:       2A Queens Street, Leeds   Telephone:     ****   Fax:           ****   Attention:     Mark Woodheadexhibit103deedofsharecha

                                                 Exhibit 10.3                                                                                                                                                                                                      Dated ___13 May_____ 2019     PELICAN HOLDCO LIMITED           as Chargor            in favour of   KVH MEDIA GROUP LIMITED           as Chargee                                                                                  SHARE CHARGE                                                         

 

                                             CONTENTS    Clause                                                                                   Page   1.     Definitions and Interpretation ..................................................................................................... 2  2.     Payment of Secured Obligations ............................................................................................... 4  3.     Charge and Assignment............................................................................................................. 4  4.     Further Assurance ...................................................................................................................... 5  5.     Negative Pledge, Disposals and other undertakings ................................................................. 5  6.     Operations Before and After Events of Default .......................................................................... 6  7.     Enforcement of Security ............................................................................................................. 8  8.     Powers of Sale ........................................................................................................................... 8  9.     Appointment of Receiver ............................................................................................................ 9  10.    Powers of Receiver .................................................................................................................... 9  11.    Application of Monies ............................................................................................................... 12  12.    Receipt and Protection of Purchasers ..................................................................................... 12  13.    Power of Attorney ..................................................................................................................... 12  14.    Representations ....................................................................................................................... 13  15.    Effectiveness of Security .......................................................................................................... 16  16.    Release of Security .................................................................................................................. 18  17.    Subsequent and Prior Security Interests ................................................................................. 19  18.    Currency Conversion and Indemnity ........................................................................................ 19  19.    Costs, Expenses and Indemnity .............................................................................................. 20  20.    Payments Free of Deduction ................................................................................................... 20  21.    Discretion and Delegation ........................................................................................................ 20  22.    Set-off ....................................................................................................................................... 21  23.    Changes to Parties ................................................................................................................... 21  24.    Amendments and Waivers ....................................................................................................... 21  25.    Notices ..................................................................................................................................... 22  26.    Counterparts ............................................................................................................................ 22  27.    Governing Law ......................................................................................................................... 22  28.    Jurisdiction ............................................................................................................................... 23                                                        

 

   THIS DEED OF SHARE CHARGE is made on ___13 May_____ 2019   BY   (1)    PELICAN HOLDCO LIMITED, a company incorporated under the laws of England and Wales         with company number 11988300 and registered office at 3 Cadogan Gate, London SW1X 0AP,         England (the “Chargor”)           in favour of   (2)    KVH MEDIA GROUP LIMITED, a company incorporated in England and Wales with registered         number 06462774 and having its registered office at 2a Queen Street, Leeds, West Yorkshire         LS1  2TW   (the “Chargee”,  which  expression  shall  include  its  successors,  assigns  and         transferees).   NOW THIS DEED WITNESSES as follows:   1.     DEFINITIONS AND INTERPRETATION   1.1    Definitions          In this Deed, terms defined in the Loan Agreement (as defined below) shall, unless otherwise         defined in this Deed or unless a contrary intention appears, bear the same meaning when used         in this Deed and the following terms shall have the following meanings:          “Charged Property” means all the assets and/or undertaking of the Chargor which from time         to  time  are  the  subject  of  the  security  created  or  expressed  to  be  created  in  favour  of  the         Chargee by or pursuant to this Deed.          “Chargor’s Investment Group” means the Investor, the General Partner and the Partnerships         (as each term is defined in the Equity Commitment Letter).          “CO” means Companies Ordinance (Cap. 622 of the Laws of Hong Kong).          “Collateral  Rights” means  all  rights,  powers  and  remedies  of  the  Chargee  provided  by  or         pursuant to this Deed or by law.          "Equity Commitment Letter" means the equity commitment letter dated on or around the date         hereof from Oakley Capital IV Master SCSp (as Investor) to the Chargor and the Chargee.          “Event of Default” means:          (a)     any non-payment of the Advance and accrued interest thereon on the Maturity Date in                 accordance with clause 5 of the Loan Agreement;           (b)     any breach by the  Chargor  of  its obligations  under  the  other  clauses  of  the  Loan                 Agreement or any clause under this Deed, provided that no Event of Default will occur                 if such failure to comply is capable of remedy and is remedied within 30 days of the                 earlier  of  (i)  the  Lender  giving  notice to the  Chargor  and (ii)  the  Chargor  becoming                 aware of the failure to comply;           (c)     any representation by the Chargor and/or the Chargor’s Investment Group under the                 Loan Agreement and/or this Deed and/or the Equity Commitment Letter is or proves to                 have been incorrect or misleading in any material respect when made, provided that                 no Event of Default will occur if such misrepresentation is capable of remedy and is                                                       

 

                           remedied within 30 days of the earlier of (i) the Lender giving notice to the Chargor and          (ii) the Chargor becoming aware of such misrepresentation;    (d)     the Chargor or any member of the Chargor’s Investment Group  is or is presumed or          deemed to be unable or admits inability to pay its debts as they fall due, suspends          making payments on its debts generally or, by reason of actual or anticipated financial          difficulties, commences negotiations with one or more of its creditors (excluding the          Lender in such capacity) with a view to rescheduling any of its indebtedness; or   (e)     any corporate action, legal proceedings or other procedure or step is taken in relation          to  (i)  the  suspension  of  payments,  a  moratorium  of  any  indebtedness,  winding-up,          dissolution, administration or reorganisation (by way of voluntary arrangement, scheme          of  arrangement  or  otherwise) of  the  Chargor or  any  member  of  the  Chargor’s          Investment Group, (ii) a composition, compromise, assignment or arrangement with          any creditor of the Chargor or any member of the Chargor’s Investment Group, (iii) the          appointment of a liquidator, receiver, administrative receiver, administrator, compulsory          manager  or  other  similar  officer  in  respect  of  the  Chargor or  any  member  of  the          Chargor’s Investment Group or any  of its or their assets or (iv) enforcement of any          Security over any assets of the Chargor or any member of the Chargor’s Investment          Group, or any analogous procedure or step is taken in any jurisdiction (save that this          paragraph (e) shall not apply to any winding-up petition which is frivolous or vexatious          and is discharged, stayed or dismissed within 30 days of commencement),            provided always that no Event of Default will occur under paragraph (c), (d) or (e) with          respect  to  the  Chargor's  Investment Group, if  the  Investor is  not  prevented  from          performing its obligations under the Equity Commitment Letter.    “Loan Agreement” means the loan agreement dated the date hereof between the Chargor, as  borrower, and the Chargee, as lender.    “Receiver” means a receiver or receiver and manager or an administrative receiver of the whole  or any part of the Charged Property and that term will include any appointee under a joint and/or  several appointment.   “Related Rights” means, in relation to any asset:   (a)    the proceeds of sale of any part of that asset;   (b)    all rights under any licence, agreement for sale, lease or other disposal in respect of         that asset;   (c)    all  rights,  powers,  benefits,  claims,  contracts,  warranties,  remedies,  security,         guarantees, indemnities and/or covenants for title in respect of that asset;   (d)    any moneys and proceeds paid or payable in respect of that asset;    (e)    (in the case where such asset comprises any share, equity interest or other security)         all  dividends,  distributions,  interest  and  monies  payable  in  respect  thereof  and  any         rights, assets, shares and/or securities deriving therefrom or accruing thereto whether         by  way  of  redemption,  bonus,  preference,  option,  substitution,  conversion,         compensation or otherwise; and/or   (f)    (in the case where such asset comprises any share, equity interest or other security)         any rights against any clearing system in which such asset is held,                                                                

 

          (in each case) from time to time.          “Secured Obligations” means all moneys, liabilities and obligations owing or expressed to be         owing to the Chargee under or pursuant to the Loan Agreement  and /or this Deed whether         present or future, actual or contingent, whether now existing or hereafter arising, whether or         not for payment of money and including any obligation or liability to pay damages (and whether         as  principal  or  surety  or  in  some  other  capacity),  including  without  limitation  any  such         obligations in respect  of any further  advances  and/or financial  accommodation from time to         time.          “Security”  means  a  mortgage,  charge,  pledge,  lien  or  other  security  interest  securing  any         obligation of any person or any other agreement or arrangement having a similar effect.          “Shares” means all the ordinary shares in the share capital of the Subject Entity beneficially         owned  by  the  Chargor,  including  those ordinary shares of  the  Subject  Entity specified  in         Schedule 1 (Particulars of Shares).          “Subject Entity” means Videotel Marine  Asia Limited, a company incorporated under the         laws of Hong Kong with limited liability with company number 1110854 and having its registered         office currently at 16/F Rykadan Capital Tower, 135 Hoi Bun Road, Kwun Tong, Hong Kong.    1.2    Construction          1.2.1   In this Deed:                  (a)    any  reference  to  the  Chargor,  the  Chargee  or  the  Subject  Entity  shall  be                        construed so as to include its or their (and any subsequent) successors and                        any  permitted  assigns  and  transferees  in  accordance  with  their  respective                        interests; and                  (b)    save  where  the  context  otherwise  requires,  references  in  this  Deed  to  any                        Clause or Schedule shall be to a clause or schedule contained in this Deed.          1.2.2  A person who is not a party to this Deed has no right under the Contracts (Rights of                Third Parties)  Ordinance (Cap.  623 of  the  Laws  of Hong  Kong)  (the  “Third  Parties                Ordinance”) to enforce or to enjoy the benefit of any term of this Deed. Notwithstanding                any term of this Deed, the consent of any person who is not a party to this Deed is not                required to rescind or vary this Deed at any time.   2.     PAYMENT OF SECURED OBLIGATIONS          The  Chargor  hereby  covenants  with  the  Chargee  that  it  shall  on  demand  of  the  Chargee         discharge all of the Secured Obligations when due and payable, and the Chargor shall pay to         the  Chargee  any  Secured  Obligations  when  due  and  payable provided  that neither  such         covenant nor the security constituted by this Deed shall extend to or include any liability or sum         which would, but for this proviso, cause such covenant or security to be unlawful or prohibited         by any applicable law.   3.     CHARGE AND ASSIGNMENT   3.1    Charge          3.1.1  The  Chargor  hereby  charges  as  beneficial  owner,  as  security  for  the  payment  and                discharge of the Secured Obligations, by way of first fixed charge, all the Chargor’s                right, title and interest from time to time in and to the Shares and all Related Rights in                relation thereto.                                                      

 

          3.1.2  To the extent and at any time they are not effectively charged by way of fixed charge                referred to in Clauses 3.1.1 above, charges by way of first floating charge the Charged                Property, the Shares and all Related Rights in relation thereto.    4.     FURTHER ASSURANCE   4.1    Further Assurance: General          The Chargor shall promptly at its own cost do all such acts and/or execute all such documents         (including  without  limitation  assignments,  transfers, mortgages,  charges,  notices  and         instructions) as the Chargee may reasonably specify (and in such form as the Chargee may         reasonably require in favour of the Chargee or its nominee(s)):          4.1.1  to  perfect  the  security  created  or  intended  to  be  created  in  respect  of the  Charged                Property (which may include, without limitation, (a) the execution by the Chargor of a                mortgage, charge or assignment over all or any of the assets constituting, or intended                to constitute, any part of the Charged Property; (b) procure that this Deed shall promptly                be  registered  with  the  companies  registry  or  registrar  in the applicable  jurisdictions                which  are,  in  the  opinion  of  the  Chargee,  to  be  so  registered  or  be  submitted  for                registration;  and  (c) procure  that  this  Deed  be  promptly  recorded or  noted  in  the                registers of mortgages, charges or encumbrances of the Chargor and/or registers of                shareholders of the Subject Entity which are, in the opinion of the Chargee, to be so                recorded or noted) or for the exercise of the Collateral Rights; and/or          4.1.2  to facilitate the realisation of the Charged Property.   4.2    Necessary Action          The Chargor shall from time to time take all such action (whether or not requested to do so by         the  Chargee)  as  is  or  shall  be  available  to  it  (including  without  limitation  obtaining and/or         effecting all Authorisations) as may be necessary for the purpose of the creation, perfection,         protection or maintenance of any security conferred or intended to be conferred on the Chargee         by or pursuant to this Deed.   4.3    Information          The Chargor shall promptly deliver to the Chargee all information that is available to it and that         is required in order for the Chargee to comply with any applicable laws or regulations in respect         of any Charged Property (including without limitation section 329 of the Securities and Futures         Ordinance (Cap.  571 of  the Laws  of  Hong  Kong)  or  any  similar  provision  in  any  articles  of         association or constitutional documents relating to any Charged Property.   4.4    Implied Covenants for Title          The obligations of the Chargor under this Deed shall be in addition to any covenants for title         deemed to be included in this Deed under applicable law.   5.     NEGATIVE PLEDGE, DISPOSALS AND OTHER UNDERTAKINGS   5.1    Negative Pledge          Unless otherwise agreed in writing by the Chargee, the Chargor undertakes that it shall not, at         any time during the subsistence of this Deed, create or permit to subsist any Security over all         or any part of the Charged Property except for the security constituted by this Deed.                                                        

 

   5.2    Delivery of Documents          The  Chargor shall  deliver  or  procure  that  there  shall  be  delivered  to  the  Chargee  (a)  such         documents relating to the Charged Property as the Chargee reasonably requires and (b) the         documents  listed  in  paragraphs  (i)  to  (iii)  below  relating  to  the  Charged Property within 10         Business Days (or such other time period agreed by the Chargee) after the execution of this         Deed, each of which may be held by the Chargee until the security constituted by this Deed is         released:          (i)     share certificates or other documents of title in respect of the Shares in suitable form                 for transfer by delivery;          (ii)    duly  executed  instruments  of  transfer  and  contract  notes  in  respect  of  the  Shares                 substantially set out in the form set out in Schedule 2 (Form of Instrument of Transfer                 and Contract Note) but, in each case, with the dates and names of the transferees left                 blank; and          (iii)   signed but undated deed of appointment of proxy and irrevocable appointment of power                 of attorney from the Chargor substantially in the form set out in Schedule 3.          The Chargor shall promptly deliver to the Chargee certificates or other instruments representing         or evidencing the Shares acquired or received by it after the date of this Deed with instruments         of transfer and contract notes in blank duly executed by the Chargor.          At any time after the security created by or pursuant to this Deed has become enforceable, the         Chargee shall have the right to complete, date and put into effect the documents referred to in         this Clause 5.2.   5.3    Register of Members          Without prejudice to the generality of Clause 4 (Further assurance), the Chargor shall procure         that  the  Subject  Entity  provides the Chargee  with  a  certified  true  copy  of  the  Register  of         Members within ten (10) Business Days (or such other time period agreed by the Chargee) of         the execution of this Deed.   5.4    Undertaking in respect of Non-Hong Kong company          The Chargor agrees not to apply to have itself registered as a non-Hong Kong company under         Part 16 of the CO.   5.5    No Disposal of Interests          The Chargor undertakes that, during the subsistence of this Deed, it shall not, and shall not         agree  to,  sell,  assign,  transfer  or  otherwise  dispose  of  any  Charged  Property  except  (a)         pursuant to this Deed and/or (b) any disposal consented to in writing by the Chargee.   6.     OPERATIONS BEFORE AND AFTER EVENTS OF DEFAULT   6.1    Dividends          6.1.1  The Chargor shall ensure that any and all dividends, distributions, interest and/or other                monies received and/or recovered in respect of all or any part of the Charged Property                are directly paid to the Chargee.          6.1.2  After the occurrence and during the continuance of an Event of Default, the Chargee                may apply in accordance with this Deed any and all dividends, distributions, interest                                                       

 

                 and/or  other  monies  received  and/or  recovered  in  respect  of  all  or  any  part  of  the                Charged Property.          6.1.3  Any and all dividends, distributions, interest and/or other monies received, recovered                or paid/delivered to the order of the Chargor (other than in cash) in respect of any or all                of the Charged Property shall be held by the Chargor subject to the security constituted                by this Deed, provided that if such receipt or recovery is made after the occurrence and                during the continuance of an Event of Default, the Chargor shall promptly deliver such                dividends, distributions, interest and/or other monies to the Chargee for application in                accordance with this Deed.   6.2    Operation: Before Event of Default          In the absence of an Event of Default, the Chargor shall be entitled to exercise all voting rights         in relation to any or all of the Shares provided that the Chargor shall not exercise such voting         rights in any manner that could give rise to, or otherwise permit or agree to, any (a) variation of         the rights attaching to or conferred by any of the Shares or (b) any liability on the part of the         Chargee.   6.3    Operation: After Event of Default          The Chargee may, upon and/or after the occurrence and during the continuance of an Event of         Default,  at  its  discretion  (in  the  name  of  the  Chargor  or  otherwise  and  without  any  further         consent or authority from the Chargor):          6.3.1  exercise  (or  refrain  from  exercising)  any  voting  rights  in  respect  of  the  Charged                Property;          6.3.2  apply all dividends, distributions, interest and other monies arising from all or any of the                Charged Property in accordance with Clause 11 (Application of Monies);          6.3.3  transfer all or any of the Charged Property into the name of such nominee(s) of the                Chargee as it shall think fit;           6.3.4  cause the conversion or dematerialisation of any of the Charged Property into scripless                securities and the deposit of such scripless securities into the any account (whether in                the name of the Chargor, the Chargee or otherwise); and          6.3.5  exercise (or refrain from exercising) the powers and rights conferred on or exercisable                by the legal or beneficial owner of the Charged Property, including without limitation the                right, in relation to any company, corporation or entity whose shares, equity interests                or other securities are included in the Charged Property or any part thereof, to concur                or participate in:                 (a)   the  reconstruction,  amalgamation,  sale  or  other  disposal  of  such  company,                      corporation  or  entity  or  any  of  its  assets  or  undertaking  (including  without                      limitation the exchange, conversion or reissue of any shares, equity interests or                      securities as a consequence thereof);                 (b)   the release, modification or variation of any rights or liabilities attaching to such                      shares, equity interests or securities; and                 (c)   the exercise, renunciation or assignment of any right to subscribe for any shares,                      equity interests or securities,                                                        

 

                 in each case in such manner and on such terms as the Chargee may think fit, and the                proceeds of any such action shall form part of the Charged Property and may be applied                by the Chargee in accordance with Clause 11 (Application of Monies).   6.4    Payment of Calls          The Chargor shall pay when due all calls or other payments which may be or become due in         respect of any of the  Charged Property,  and in any case of default by the Chargor in such         payment, the Chargee may, if it thinks fit, make such payment on behalf of the Chargor in which         case any sums paid by the Chargee shall be reimbursed by the Chargor to the Chargee on         demand and shall carry interest from the date of payment by the Chargee until reimbursed in         full at the rate and in accordance with Clause 2.2 (Interest on Demands).   6.5    Exercise of Rights          The Chargor shall not exercise any of its rights and powers in relation to any of the Charged         Property in any manner which, in the opinion of the Chargee, would prejudice the value of, or         the ability of the Chargee to realise, the security created by this Deed.   7.     ENFORCEMENT OF SECURITY   7.1    Enforcement          Upon  and  after  the  occurrence and  during  the continuance of  an  Event  of  Default  or  if  the         Chargor  requests  the  Chargee  to  exercise  any  of  its  powers  under  this  Deed,  the  security         created by or pursuant to this Deed is immediately enforceable and the Chargee may, without         notice to the Chargor or prior authorisation from any court, in its absolute discretion:          7.1.1  enforce all or any part of such security (at the times, in the manner and on the terms it                thinks fit) and take possession of and hold or dispose of all or any part of the Charged                Property; and          7.1.2  whether or not it has appointed a Receiver, exercise all or any of the powers, authorities                and discretions conferred by this Deed on any Receiver or otherwise conferred by law                on mortgagees and/or Receivers.   7.2    No Liability as Mortgagee in Possession          Neither the Chargee nor any Receiver shall be liable to account as a mortgagee in possession         in respect of all or any part of the Charged Property or be liable for any loss upon realisation or         for  any  neglect,  default  or  omission  in  connection  with  the  Charged  Property  to  which  a         mortgagee or a mortgagee in possession might otherwise be liable.   8.     POWERS OF SALE   8.1    Extension of Powers          The power of sale or other disposal conferred on the Chargee and on any Receiver by this         Deed  shall  arise  (and  the  Secured  Obligations  shall  be  deemed  due  and  payable  for  that         purpose) upon the occurrence and during the continuance of an Event of Default.   8.2    Restrictions          Any  restrictions  imposed  by  law  on  the  power  of  sale  or  on  the  consolidation  of  security         (including without limitation any restriction under paragraph 11 of the Fourth Schedule to the                                                        

 

          Conveyancing and Property Ordinance (Cap. 219) of the Laws of Hong Kong) shall be excluded         to the fullest extent permitted by law.   9.     APPOINTMENT OF RECEIVER   9.1    Appointment and Removal          Upon and after the occurrence and during the continuance of an Event of Default or if requested         to do so by the Chargor, the Chargee may by deed or otherwise (acting through an authorised         officer of the Chargee), without prior notice to the Chargor:          9.1.1  appoint one or more persons to be a Receiver of the whole or any part of the Charged                Property;          9.1.2  appoint two or more Receivers of separate parts of the Charged Property;          9.1.3  remove (so far as it is lawfully able) any Receiver so appointed; and/or          9.1.4  appoint another person(s) as an additional or replacement Receiver(s).   9.2    Capacity of Receivers          Each person appointed to be a Receiver pursuant to Clause 9.1 (Appointment and Removal)         shall be:          9.2.1  entitled to act individually or together with any other person appointed or substituted as                Receiver;          9.2.2  for  all  purposes  deemed  to be  the  agent  of  the  Chargor  which  shall  be  solely                responsible for his acts, defaults and liabilities and for the payment of his remuneration                and no Receiver shall at any time act as agent for the Chargee; and          9.2.3  entitled to remuneration for his services at a rate to be fixed by the Chargee from time                to time.   9.3    Statutory Powers of Appointment          The powers of appointment of a Receiver herein contained shall be in addition to all statutory         and other powers of appointment of the Chargee under applicable law and such powers shall         remain exercisable from time to time by the Chargee in respect of all or any part of the Charged         Property.   10.    POWERS OF RECEIVER   10.1   Powers of Receiver          Every  Receiver  shall  (subject  to  any  restrictions  in  the  instrument  appointing  him  but         notwithstanding  any  winding-up  or  dissolution  of  the  Chargor,  and  subject  to  any existing         security where applicable) have and be entitled to exercise, in relation to the Charged Property         (and any assets of the Chargor which, when got in, would be Charged Property) or that part         thereof in respect of which he was appointed, and as varied and extended by the provisions of         this Deed (in the name of or on behalf of the Chargor or in his own name and, in each case, at         the cost of the Chargor):          10.1.1 all the powers conferred by the Conveyancing and Property Ordinance (Cap. 219) of                the  Laws  of  Hong  Kong  on  mortgagors  and  on  mortgagees  in  possession  and  on                                                       

 

                 receivers  appointed  under  that  Ordinance  (as  if  the  Charged  Property  constituted                property that is subject to that Ordinance and as if such Receiver were appointed under                that Ordinance), free from any limitation under paragraph 11 of the Fourth Schedule to                that Ordinance;          10.1.2 all the powers and rights of an absolute owner and power to do or omit to do anything                which the Chargor itself could do or omit to do; and          10.1.3 the power to do all things (including without limitation bringing or defending proceedings                in the name or on behalf of the Chargor) which seem to that Receiver to be incidental                or conducive to (a) any of the functions, powers, authorities or discretions conferred on                or vested in him or (b) the exercise of any Collateral Rights (including without limitation                realisation of all or any part of the Charged Property) or (c) bringing to his hands any                assets of the Chargor forming, or which, when got in, would be part of the Charged                Property.   10.2   Additional Powers of Receiver          In addition  to  and  without  prejudice  to  the  generality  of  the  foregoing,  every  Receiver  shall         (subject  to  any  limitations  or  restrictions  expressed  in  the  instrument  appointing  him  but         notwithstanding  any  winding-up  or  dissolution  of  the  Chargor  and  subject  to  any existing         security where applicable) have the following powers in relation to the Charged Property (and         any assets of the Chargor which, when got in, would be part of the Charged Property) in respect         of which he was appointed (and every reference in this Clause 10.2 to the “Charged Property”         shall  be  read as  a reference to that  part  of  the  Charged Property  in respect  of  which such         Receiver was appointed):          10.2.1 Take Possession                  power to enter upon, take immediate possession of, collect and get in the Charged                 Property  including  without  limitation  dividends  and  other  income  whether  accrued                 before or after the date of his appointment;          10.2.2 Proceedings and Claims                  power to bring, prosecute, enforce, defend and abandon applications, claims, disputes,                 actions,  suits  and  proceedings  in  connection  with  all  or  any part  of  the  Charged                 Property or this Deed in the name of the Chargor or in his own name and to submit to                 arbitration, negotiate, compromise and settle any such applications, claims, disputes,                 actions, suits or proceedings;          10.2.3 Carry on Business                  power to carry on and manage, or concur in the carrying on and management of or to                 appoint a manager of, the whole or any part of the Charged Property or any business                 relating thereto in such manner as he shall in his absolute discretion think fit;          10.2.4 Deal with Charged Property                  power, in relation to the Charged Property and each and every part thereof, to sell,                 transfer, convey, dispose of or concur in any of the foregoing by the Chargor or any                 other receiver or manager of the Chargor (including without limitation any sale, transfer,                 conveyance or disposal in favour of the Chargee) in such manner and generally on                 such terms as he thinks fit;         10.2.5  Acquisitions                                                       

 

                  power  to  purchase,  lease,  hire  or  otherwise  acquire  any  assets  or  rights  of  any                 description which he shall in his absolute discretion consider necessary or desirable                 for the carrying on, improvement or realisation of the whole or any part of the Charged                 Property or otherwise for the benefit of the whole or any part of the Charged Property;          10.2.6 New Subsidiary                  power to promote, procure the formation or otherwise acquire the share capital of, any                 body  corporate  with  a  view  to  such  body  corporate  becoming  a  subsidiary  of  the                 Chargor or otherwise and purchasing, leasing or otherwise acquiring an interest in the                 whole or any part of the Charged Property or carrying on any business in succession                 to the Chargor or any subsidiary of the Chargor;          10.2.7 Insurance                  power to effect, maintain or renew indemnity and other insurances and to obtain bonds                and performance guarantees;          10.2.8 Borrowing                  power to raise or borrow money from the Chargee or any other person to rank either in                 priority to the security constituted by this Deed or any part of it or otherwise and with or                 without a mortgage or charge on the Charged Property or any part of it on such terms                 as he shall in his absolute discretion think fit (and no person lending such money shall                 be concerned to see or enquire as to the propriety or purpose of the exercise of such                 power or the application of money so raised or borrowed);          10.2.9 Redemption of Security                 power to redeem, discharge or compromise any security whether or not having priority                to the security constituted by this Deed or any part of it;          10.2.10 Covenants, Guarantees and Indemnities                  power to enter into bonds, covenants, guarantees, commitments, indemnities and other                obligations  or  liabilities  as  he  shall  think  fit, to make all  payments  needed to effect,                maintain or satisfy such obligations or liabilities and to use the company seal of the                Chargor; and          10.2.11 Exercise of Powers in Chargor’s Name                  power to exercise any or all of the above powers on behalf of and in the name of the                 Chargor (notwithstanding any winding-up or dissolution of the Chargor) or on his own                 behalf.   10.3   Terms of Disposition          In making any sale or other disposal of all or any part of the Charged Property or any acquisition         in the exercise of their respective powers (including without limitation a disposal by a Receiver         to any subsidiary of the Chargor or other body corporate as is referred to in Clause 10.2.6) a         Receiver or the Chargee may accept or dispose of as, and by way of consideration for, such         sale or other disposal or acquisition, cash, shares, loan capital or other obligations, including         without limitation consideration fluctuating according to or dependent upon profit or turnover         and  consideration  the  amount  whereof  is  to  be  determined  by  a  third  party.  Any  such         consideration  may,  if  thought  expedient  by  the  Receiver  or  the  Chargee,  be  nil  or  may  be         payable or receivable in a lump sum or by instalments. Any contract for any such sale, disposal                                                       

 

          or acquisition by the Receiver or the Chargee may contain conditions excluding or restricting         the personal liability of the Receiver or the Chargee.   11.    APPLICATION OF MONIES   11.1   Order of Application          Save as otherwise expressly provided in this Deed,  all moneys and/or  non-cash recoveries         and/or proceeds received or recovered by the Chargee or any Receiver pursuant to this Deed         or the powers conferred by it shall (subject to the claims of any person having prior rights thereto         (including the claims of the Chargee as beneficiary of any existing security where applicable)         and  subject  to  Clause 11.2 (Suspense  Account))  be  applied  in  the  payment  of  the  costs,         charges  and  expenses  incurred  and  payments  made  by  any  Receiver,  the  payment  of  his         remuneration and the discharge of any liabilities incurred by such Receiver in, or incidental to,         the exercise of any of his powers.   11.2   Suspense Account          Until all Secured Obligations are paid in full, all monies received, recovered or realised under         this Deed by the Chargee or any Receiver or the powers conferred by it (including the proceeds         of any conversion of currency) may in its discretion be credited to and held in any suspense or         impersonal account pending their application from time to time in or towards the discharge of         any of the Secured Obligations in accordance with Clause 11.1 (Order of Application).   11.3   Application by Chargor          Any  application  under  this  Clause 11 shall  override  any  application  or  appropriation  by  the         Chargor.   12.    RECEIPT AND PROTECTION OF PURCHASERS   12.1   Receipt and Consideration          The receipt of the Chargee or any Receiver shall be conclusive discharge to a purchaser of any         part of the Charged Property from the Chargee or such Receiver and in making any sale or         disposal of any part of the Charged Property or making any acquisition, the Chargee or any         Receiver may do so for such consideration, in such manner and on such terms as it thinks fit.   12.2   Protection of Purchasers          No  purchaser  or  other  person  dealing  with the  Chargee or  any  Receiver  shall  be  bound  to         inquire whether the right of the Chargee or such Receiver to exercise any of its powers has         arisen or become exercisable or be concerned with any propriety or regularity on the part of the         Chargee  or  such  Receiver  in  such  dealings.  The  protection  given  to  purchasers  from  a         mortgagee in sections 52 and 55 of the Conveyancing and Property Ordinance (Cap. 219) of         the  Laws  of  Hong  Kong  shall  apply mutatis  mutandis to  purchaser(s)  and  other  person(s)         dealing with the Chargee or any Receiver.   13.    POWER OF ATTORNEY   13.1   Appointment and Powers          The Chargor by way of security irrevocably (within the meaning of Section 4 of the Powers of         Attorney  Ordinance  (Cap.  31)  of  the  Laws  of  Hong  Kong)  appoints  the  Chargee  and  any         Receiver severally to be its attorney and in its name, on its behalf and as its act and deed to                                                        

 

          execute,  deliver  and  perfect  all  documents  and  do  all  things  which  the  Chargee  or  such         Receiver may consider to be necessary for:          13.1.1 carrying  out  any  obligation  imposed  on  the  Chargor  by  this  Deed  or  any  other                agreement  binding  on  the  Chargor  to  which the  Chargee  is  party  (including  without                limitation  the  execution  and  delivery  of  any  deeds,  charges,  assignments  or  other                security and any transfers of the Charged Property or any part thereof); and          13.1.2 enabling the Chargee and any Receiver to exercise, or delegate the exercise of, any of                the rights, powers and authorities conferred on them by or pursuant to this Deed or by                law  (including,  without  limitation,  upon  or  after  the  occurrence and  during  the                continuance of an Event of Default, the exercise of any right of a legal or beneficial                owner of the Charged Property or any part thereof).   13.2   Ratification          The Chargor shall ratify and confirm all things done and all documents executed by any attorney         in the exercise or purported exercise of all or any of his powers.   14.    REPRESENTATIONS          The Chargor represents and warrants to the Chargee that:   14.1   Power and capacity          It  is  a  company,  duly  incorporated  with  limited  liability  and  is  validly  existing  and  in  good         standing under the laws of its jurisdiction of incorporation. It has the power to own its assets         and carry on its business as it is being conducted.   14.2   Compliance with laws          It will comply with and observe all rules and guidelines from time to time imposed on it by such         exchange  and  other  relevant competent  authorities  in  all  material  respects  in  relation  to  its         ownership of shares in the Subject Entity and will promptly notify the Chargee of any material         non-compliance or non-observance with or of such rules and guidelines.   14.3   Binding obligations          Subject to any general principles of law as at the date of this Deed limiting its obligations:          (a)     each of the obligations expressed to be assumed by it in this Deed are legal, valid,                 binding and enforceable obligations; and           (b)     (without limiting the generality of paragraph (a) above), this Deed creates the security                 interests which it purports to create and such security interests are valid and effective.   14.4   No conflict          The entry into and performance by it of, and the transactions contemplated by, this Deed do         not and will not:          (a)     conflict with any law or regulation applicable to it;          (b)     conflict with its constitutional documents;          (c)     conflict with any agreement or instrument binding upon it or any of its assets; or                                                       

 

          (d)     result in the existence of or oblige it to create any security over all or any of its assets                 (other than the security constituted pursuant to this Deed).   14.5   Power and authority          (a)     It has the power to enter into, perform and deliver, and has taken all necessary action                 to authorise its entry into, performance and delivery of, this Deed.          (b)     No limit on its powers will be exceeded as a result of the grant of security contemplated                 by this Deed.          (c)     It is acting as principal for its own account and not as agent or trustee or in any other                 capacity on behalf of any third party.   14.6   Validity and admissibility in evidence          All Authorisations required:          (a)     to enable it lawfully to enter into, exercise its rights and comply with its obligations in                 this Deed;          (b)     to make this Deed admissible in evidence in its jurisdiction of incorporation and/or Hong                 Kong; and/or          (c)     to enable it to create the security expressed to be created by it pursuant to this Deed                 and to ensure that such security has the priority and ranking it is expressed to have,          have been obtained or effected and are in full force and effect.           It has not taken any action nor have any other steps been taken or legal proceedings been         started or (to the best of its knowledge and belief) threatened against it for its bankruptcy or         winding-up  or  insolvency  or  for  the  appointment  of  a  receiver,  administrator,  administrative         receiver, trustee or similar officer of it or of any or all of its assets and no other steps which are         similar or which would have a similar effect have been taken in any jurisdiction   14.7   Choice of law          The choice of the laws of Hong Kong as the governing law of this Deed will be recognised and         enforced in the courts of Hong Kong.   14.8   Enforceability          Any  judgment  obtained  in  the  courts  of  Hong  Kong  in  relation  to  this  Deed will be         recognised and enforced in Hong Kong.   14.9   No filing or stamp taxes          Under  the  law  of  its  jurisdiction  of  incorporation  it  is  not  necessary  that  this  Deed  be  filed,         recorded  or  enrolled  with  any  court  or  other  authority  in that  jurisdiction  or  that  any  stamp,         registration (except for the registration set out in Clause 3.1 (Perfection) of this Deed) or similar         tax be paid on or in relation to this Deed.                                                        

 

   14.10  Deduction of Tax          It is not required under the law applicable where it is incorporated or resident or at the address         specified in this Deed to make any deduction for or on account of Tax from any payment it may         make under the Loan Agreement or this Deed.   14.11  Pari passu ranking          (a)     This Deed  creates (or  once  entered  into,  will  create)  in  favour  of  the  Chargee  the                 security which it is expressed to create with the ranking and priority it is expressed to                 have.          (b)     Without  limiting  paragraph  (a)  above,  its  payment  obligations  under  the Loan                 Agreement  rank  at  least  pari  passu  with  the  claims  of  all  its  other  unsecured  and                 unsubordinated creditors, except for obligations mandatorily preferred by law applying                 to companies generally.   14.12  No proceedings pending or threatened          No litigation, arbitration or administrative proceedings of or before any court, arbitral body or         agency have (to the best of its knowledge and belief) been started or threatened against it.   14.13  Charged Property          (a)     All  consents  necessary  to  enable  any  asset  that  is  expressed  to  be  subject  to  any                 security under this Deed to be the subject of effective security under this Deed have                 been obtained and are in full force and effect.          (b)     It is the sole legal and beneficial owner of the Charged Property (subject to the security                 constituted pursuant to this Deed).          (c)     It has not sold or otherwise disposed of, or created, granted or permitted to subsist any                 Security over, all or any of its right, title and interest in the Charged Property (other than                 the security constituted pursuant to this Deed and other than as expressly permitted                 under this Deed).          (d)     As at the date of this Deed, the particulars of the Shares as set out in Schedule 1                 (Particulars of Shares) are accurate in all respects.          (e)     The Shares have been validly issued by the Subject Entity and are fully paid up and                 there are no monies or liabilities payable or outstanding in relation to any of the Shares.          (f)     It legally and beneficially owns all of the Charged Property, free and clear of all Security,                 except for any security constituted hereby.          (g)     The constitutional documents of the Subject Entity do not restrict or inhibit any transfer                 of those Shares on creation or enforcement of the security under this Deed.                                                        

 

   14.14  Non-Hong Kong Company          On the date of this Deed, the Chargor is not registered as a non-Hong Kong company under         Part 16 of the Companies Ordinance (Cap. 622) of the Laws of Hong Kong nor has it made any         application to be so registered.   14.15  Repetition          Each of the representations and warranties set out or referred to in Clause 14 above shall be         deemed to be repeated by the Chargor on each date occurring after the date of this Deed, by         reference to the facts and circumstances existing at the date on which such representation or         warranty is deemed to be made or repeated.   15.    EFFECTIVENESS OF SECURITY   15.1   Continuing Security          The  security  created  by  or  pursuant  to  this  Deed  shall  remain  in  full  force  and  effect  as  a         continuing security for the Secured Obligations unless and until discharged by the Chargee. No         part of the security from time to time intended to be constituted by this Deed will be considered         satisfied or discharged by any intermediate payment, discharge or satisfaction of the whole or         any part of the Secured Obligations.   15.2   Cumulative Rights          The security created by this Deed and the Collateral Rights shall be cumulative, in addition to         and independent of every other security which the Chargee may at any time hold for any or all         of  the  Secured  Obligations  or  any  rights,  powers  and  remedies  provided  by  law.  No  prior         security held by the Chargee over the whole or any part of the Charged Property shall merge         into the security constituted by this Deed.   15.3   Chargor’s Obligations          None of the obligations of the Chargor under this Deed, the Collateral Rights or the security         constituted by this Deed shall be affected by an act, omission, matter, thing or event which, but         for this Clause 15.3, would reduce, release or prejudice any of the obligations of the Chargor         under this Deed, the Collateral Rights or the security constituted by this Deed, including (without         limitation and whether or not known to the Chargor or the Chargee):          15.3.1 the  winding-up,  dissolution,  administration,  reorganisation,  death,  insolvency,                incapacity or bankruptcy of the Chargor or any other person or any change in its status,                function, control or ownership;          15.3.2 any of the obligations of the Chargor or any other person under the Loan Agreement,                or under any other security relating to the Loan Agreement being or becoming illegal,                invalid, unenforceable or ineffective in any respect;          15.3.3 any  time,  waiver  or  consent  granted  to,  or  composition  with,  the  Chargor  or  other                person;          15.3.4 the release of the Chargor or any other person under the terms of any composition or                arrangement with any creditor of the Chargor or other person;          15.3.5 the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect                to perfect, take up or enforce, any rights against, or security over assets of, the Chargor                or other person or any non-presentation or non-observance of any formality or other                                                       

 

                 requirement in respect of any instrument or any failure to realise the full value of any                security;          15.3.6 any incapacity or lack of power, authority or legal personality of or dissolution or change                in the members or status of the Chargor or any other person;          15.3.7 any amendment, novation, supplement, extension (whether of maturity or otherwise) or                restatement  (in  each  case  however  fundamental  and  of  whatsoever  nature,  and                whether  or  not  more  onerous)  or  replacement  of the  Loan  Agreement or  any  other                document or security or of the Secured Obligations;          15.3.8 any unenforceability, illegality or invalidity of any obligation of any person under the                Loan Agreement or any other document or security;          15.3.9 any insolvency or similar proceedings;          15.3.10 any claims or set-off right that the Chargor may have; or          15.3.11 any law, regulation or decree or order of any jurisdiction affecting the Chargor.   15.4   Chargor Intent          Without  prejudice  to  the  generality  of  Clause 16.3 (Chargor’s  Obligations),  the  Chargor         expressly confirms that it intends that the security created under this Deed, and the Collateral         Rights, shall extend from time to time to any (however fundamental and of whatsoever nature,         and whether or not more onerous) variation, increase, extension or addition of or to the Loan         Agreement  and/or any facility or amount made available under the Loan Agreement for the         purposes of or in connection with any of the following: acquisitions of any nature; increasing         working  capital;  enabling  investor  distributions  to  be  made;  carrying  out  restructurings;         refinancing existing facilities; refinancing any other indebtedness; making facilities available to         new borrowers; any other variation or extension of the purposes for which any such facility or         amount  might  be  made  available  from  time  to  time;  and  any  fees,  costs  and/or  expenses         associated with any of the foregoing.    15.5   Remedies and Waivers          No failure on the part of the Chargee to exercise, or any delay on its part in exercising, any         Collateral Right shall operate as a waiver thereof, nor shall any single or partial exercise of any         Collateral Right preclude any further or other exercise of that or any other Collateral Right.   15.6   No Liability          None of the Chargee, its nominee(s) or any Receiver shall be liable by reason of (a) taking any         action permitted by this Deed or (b) any neglect or default in connection with all or any part of         the Charged Property or (c) taking possession of or realising all or any part of the Charged         Property, except in the case of gross negligence or wilful default upon its part (as finally judicially         determined).   15.7   Partial Invalidity          If, at any time, any provision of this Deed is or becomes illegal, invalid or unenforceable in any         respect under the law of any jurisdiction, neither the legality, validity or enforceability of the         remaining provisions of this Deed under such laws nor of such provision under the laws of any         other jurisdiction shall in any way be affected or impaired thereby and, if any part of the security         intended to be created by or pursuant to this Deed is invalid, unenforceable or ineffective for         any reason, that shall not affect or impair any other part of that security.                                                       

 

   15.8   No Prior Demand          The Chargee shall not be obliged to make any demand of or enforce any rights or claim against         the Chargor or any other person, to take any action or obtain judgment in any court against the         Chargor or any other person or to make or file any proof or claim in a liquidation, bankruptcy or         insolvency of the Chargor or any other person or to enforce or seek to enforce any other security         in respect of any or all of the Secured Obligations before exercising any Collateral Right.   15.9   Deferral of rights          Until the time when (i) all Secured Obligations have been irrevocably discharged in full, (ii) all         amounts which may be or become payable by the Chargor under or in connection with the Loan         Agreement have been irrevocably paid in full and (iii) the Chargee is no longer under any further         obligation  (whether  actual  or  contingent)  to  provide  any  further  advance  or  financial         accommodation to the Chargor under  the Loan Agreement, the Chargor will not (unless the         Chargee otherwise directs) exercise any rights which it may have by reason of performance by         it of its obligations under this Deed:          15.9.1 to be indemnified by the Chargor;          15.9.2 to claim  any  contribution from  any  guarantor  of  the  Chargor’s  obligations  under the                Loan Agreement; and/or          15.9.3 to take the benefit (in whole or in part and whether by way of subrogation or otherwise)                of any rights of the Chargee under the Loan Agreement or of any other guarantee or                security taken pursuant to, or in connection with, the Loan Agreement by the Chargee.   15.10  Settlement conditional          Any settlement, discharge or release hereunder in relation to the Chargor or all or any part of         the Charged Property shall be conditional upon no security or payment by the Chargor to, or         recovery  from  the  Chargor  by,  the  Chargee  being  avoided  or  reduced  by  virtue of  any         bankruptcy, insolvency, liquidation or similar laws of general application or any similar event or         for any other reason and shall in the event of any such avoidance or reduction or similar event         be void.   16.    RELEASE OF SECURITY   16.1   Redemption of Security          Upon the time when (i) all Secured Obligations have been irrevocably discharged in full, (ii) all         amounts which may be or become payable by the Chargor under or in connection with the Loan         Agreement have been irrevocably paid in full and (iii) the Chargee is no longer under any further         obligation  (whether  actual  or  contingent)  to  provide  any  further  advance  or  financial         accommodation to the Chargor under the Loan Agreement, the Chargee shall, at the request         (with reasonable notice) and cost of the Chargor, release and cancel the security constituted         by this Deed and procure the reassignment to the Chargor of the property and assets assigned         to the Chargee pursuant to this Deed (to the extent not otherwise sold, assigned or otherwise         disposed of  or  applied  in accordance  with  this  Deed),  in  each case  subject  to  Clause 18.2         (Avoidance of Payments) and 17.10 (Settlement conditional) and without recourse to, or any         representation or warranty by, the Chargee or any of its nominees.   16.2   Avoidance of Payments          If the Chargee considers that any amount paid or credited to or recovered by the Chargor is         capable of  being  avoided  or  reduced  by  virtue of  any  bankruptcy,  insolvency,  liquidation  or                                                       

 

          similar laws, the liability of the Chargor under this Deed and the security constituted by this         Deed shall continue and such amount shall not be considered to have been irrevocably paid.   17.    SUBSEQUENT AND PRIOR SECURITY INTERESTS   17.1   Subsequent security interests          If the Chargee at any time receives or is deemed to have received notice of any subsequent         Security or other interest affecting all or any part of the Charged Property or any assignment or         transfer of the Charged Property  which is prohibited  by  the terms of this Deed  or the Loan         Agreement, all payments thereafter by or on behalf of the Chargor to the Chargee shall be         treated as having been credited to a new account of the Chargor and not as having been applied         in reduction of the Secured Obligations as at the time when (or at any time after) the Chargee         received  such  notice  of  such  subsequent  Security  or  other  interest  or  such  assignment  or         transfer.   17.2   Prior security interests          In the event of any action, proceeding or step being taken to exercise any powers or remedies         conferred by any prior ranking Security or upon the exercise by the Chargee or any Receiver         of any power of sale under this Deed or any Collateral Right, the Chargee may redeem any         prior ranking Security over or affecting any Charged Property or procure the transfer of any         such prior ranking Security to itself. The Chargee may settle and agree the accounts of the         beneficiary of any such prior Security and any accounts so settled and agreed will be conclusive         and  binding  on  the  Chargor.  All  principal,  interest,  costs,  charges,  expenses  and/or  other         amounts relating to and/or incidental to any such redemption or transfer shall be paid by the         Chargor to the Chargee upon demand.   18.    CURRENCY CONVERSION AND INDEMNITY   18.1   Currency Conversion          For the purpose of or pending the discharge of any of the Secured Obligations the Chargee         may convert any money received, recovered or realised or subject to application by it under         this Deed from one currency to another, as the Chargee may think fit, and any such conversion         shall be effected at the Chargee’s spot rate of exchange (or, if no such spot rate of exchange         is quoted by the Chargee, such other rate of exchange as may be available to the Chargee as         selected by the Chargee) for the time being for obtaining such other currency with such first-        mentioned currency.   18.2   Currency Indemnity          If any sum (a “Sum”) owing by the Chargor under this Deed or any order or judgment given or         made in relation to this Deed has to be converted from the currency (the “First Currency”) in         which such Sum is payable into another currency (the “Second Currency”) for the purpose of:          18.2.1 making or filing a claim or proof against the Chargor;          18.2.2 obtaining an order or judgment in any court or other tribunal;          18.2.3 enforcing any order or judgment given or made in relation to this Deed; or          18.2.4 applying the Sum in satisfaction of any of the Secured Obligations,          the Chargor shall indemnify the Chargee from and against any loss suffered or incurred as a         result of any discrepancy between (a) the rate of exchange used for such purpose to convert                                                       

 

          such  Sum  from  the  First  Currency  into  the  Second  Currency  and  (b)  the  rate  or  rates  of         exchange available to the Chargee at the time of such receipt or recovery of such Sum.   19.    COSTS, EXPENSES AND INDEMNITY   19.1   Costs and expenses          The Chargor shall, on demand of the Chargee, reimburse the Chargee on a full indemnity basis         for all costs and expenses (including legal fees and any value added tax) reasonably incurred         by the Chargee in connection with (a) the execution of this Deed or otherwise in relation to this         Deed, and (b) the perfection or enforcement of the security constituted by this Deed.   19.2   Stamp taxes          The Chargor shall pay all stamp, registration and other Taxes to which this Deed, the security         contemplated in this Deed and/or any judgment given in connection with this Deed is, or at any         time may be, subject and shall, from time to time, indemnify the Chargee on demand against         any liabilities, costs, claims and/or expenses resulting from any failure to pay or delay in paying         any such Tax.   19.3   Indemnity          The Chargor shall, notwithstanding any release or discharge of all or any part of the security         constituted by this Deed, indemnify the Chargee, its agents, attorneys and any Receiver against         any  action,  proceeding,  claims,  losses,  liabilities  and  costs  which  it  may  sustain  as  a         consequence  of  any  breach by  the  Chargor  of  the  provisions  of  this  Deed,  the  exercise or         purported exercise of any of the rights and powers conferred on any of them by this Deed or         otherwise relating to the Charged Property or any part thereof.   20.    PAYMENTS FREE OF DEDUCTION   20.1   Tax gross-up          All payments to be made to the Chargee under this Deed shall be made free and clear of and         without deduction for or on account of Tax unless the Chargor is required to make such payment         subject to the deduction or withholding of Tax, in which case the sum payable by the Chargor         in respect of which such deduction or withholding is required to be made shall be increased to         the extent necessary to ensure that, after the making of such deduction  or  withholding, the         person  on  account  of  whose  liability  to  Tax  such  deduction  or  withholding  has  been  made         receives and retains (free from any liability in respect of any such deduction or withholding) a         net sum equal to the sum which it would have received and so retained had no such deduction         or withholding been made or required to be made.   20.2   No set-off or counterclaim          All payments to be made by the Chargor under this Deed shall be calculated and be made         without (and free and clear of any deduction for) set-off or counterclaim.   21.    DISCRETION AND DELEGATION   21.1   Discretion          Any liberty or power which may be exercised or any determination which may be made under         this  Deed  by  the  Chargee  or  any  Receiver  may  be exercised  or  made  in  its  absolute  and         unfettered discretion without any obligation to give reasons.                                                        

 

   21.2   Delegation          Each of the Chargee and any Receiver shall have full power to delegate (either generally or         specifically)  the  powers,  authorities  and  discretions  conferred  on  it  by  this  Deed  (including         without limitation the power of attorney under Clause 13 (Power of Attorney)) on such terms         and conditions as it shall see fit which delegation shall not preclude any subsequent exercise,         any  subsequent  delegation  or  any  revocation  of  such  power,  authority  or  discretion  by  the         Chargee or any Receiver.   22.    SET-OFF          The  Chargee  may  set  off  any  matured  obligation  due  from  the  Chargor  under the  Loan         Agreement (to the extent beneficially owned by the Chargee) against any matured obligation         owed by the Chargee to the Chargor, regardless of the place of payment, booking branch or         currency of either obligation. If such obligations are in different currencies, the Chargee may         convert either obligation at a market rate of exchange in its usual course of business for the         purpose of such set-off.   23.    CHANGES TO PARTIES   23.1   Successors          This Deed shall be binding upon and enure to the benefit of each party hereto and its and/or         any subsequent successors and permitted assigns and transferees. Without prejudice to the         foregoing,  this  Deed  shall  remain  in  effect  despite  any  amalgamation  or  merger  (however         effected) relating to the Chargee; and references to the Chargee herein shall be deemed to         include any  person  who,  under  the  laws  of  its  jurisdiction  of  incorporation  or  domicile,  has         assumed the rights and obligations of the Chargee under this Deed or to which, under such         laws, those rights and obligations have been transferred.   23.2   No Assignment or Transfer by Chargor          The Chargor may not assign or transfer any or all of its rights (if any) and/or obligations under         this Deed.   23.3   Assignment and Transfer by Chargee to Successor          The Chargee may:          23.3.1 assign all or any of its rights under this Deed; and          23.3.2 transfer all or any of its obligations (if any) under this Deed,          and  the  Chargor  shall,  upon  the reasonable request  of  the  Chargee,  enter  into  such         documentation as the Chargee may require to give effect to any such assignment or transfer.    23.4   Disclosure          The Chargor agrees to any disclosure of any information.    24.    AMENDMENTS AND WAIVERS          Any provision of this Deed may be amended or waived only by agreement in writing between         the Chargor and the Chargee.                                                        

 

   25.    NOTICES   25.1   Communications in writing          Each  communication  to  be  made  by  a  party  hereto  to  the  other  party  hereto  under  or  in         connection with this Deed shall be made in writing and, unless otherwise stated, shall be made         by fax or letter.   25.2   Addresses          The address and fax number (and the department or officer, if any, for whose attention the         communication is to be made) of each party hereto for any communication or document to be         made or delivered under  or in connection  with this Deed is that  identified  with its signature         below, or any substitute address, fax number, or department or officer as that party may notify         to the other party by not less than five Business Days’ notice.   25.3   Delivery          Any  communication  or  document  made  or  delivered  by  one  party  hereto  to  the  other  party         hereto under or in connection with this Deed will only be effective:          25.3.1 if by way of fax, when received in legible form; or          25.3.2 if by way of letter, when it has been left at the relevant address or five Business Days                after being deposited in the post postage prepaid in an envelope addressed to it at that                address,          and, if a particular department or officer is specified as part of the address details of such other         party  provided  under  Clause 25.2 (Addresses),  if  addressed  to  that  department  or officer,         provided that any communication or document to be made or delivered to the Chargee will be         effective only when actually received by the Chargee and then only if it is expressly marked for         the attention of the department or officer identified with the Chargee’s signature below (or any         substitute department or officer as the Chargee shall specify for this purpose).   25.4   Language          Any notice given under or in connection with this Deed must be in English. All other documents         provided under or in connection with this Deed must be:          25.4.1 in English; or          25.4.2 if not in English, and if so required by the Chargee, accompanied by a certified English                translation and, in this case, the English translation will prevail unless the document is                a constitutional, statutory or other official document.   26.    COUNTERPARTS          This Deed may be executed in any number of counterparts, all of which taken together shall         constitute one and the same instrument.   27.    GOVERNING LAW          This Deed is governed by and construed in accordance with the laws of Hong Kong.                                                        

 

   28.    JURISDICTION   28.1   Hong Kong Courts          The courts of Hong Kong have exclusive jurisdiction to settle any dispute (a “Dispute”) arising         out  of,  or  connected  with this  Deed (including  a dispute  regarding the  existence, validity  or         termination of this Deed or the consequences of its nullity).   28.2   Convenient Forum          The parties hereto agree that the courts of Hong Kong are the most appropriate and convenient         courts to settle Disputes between them and, accordingly, that they will not argue to the contrary.   28.3   Exclusive Jurisdiction          This  Clause 28  (Jurisdiction)  is  for  the  benefit  of  the  Chargee  only.  As  a  result  and         notwithstanding Clause 28.1 (Hong Kong Courts), nothing herein shall prevent the Chargee         from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent         allowed by law the Chargee may take concurrent proceedings in any number of jurisdictions.   28.4   Waiver of immunity          The Chargor waives generally all immunity it or its assets or revenues may otherwise have in         any jurisdiction, including immunity in respect of:         28.4.1  the giving of any relief by way of injunction or order for specific performance or for the                recovery of assets or revenues; and/or         28.4.2  the  issue  of  any  process  against  its  assets  or  revenues  for  the  enforcement  of  a                judgment or, in an action in rem, for the arrest, detention or sale of any of its assets and                revenues.   IN WITNESS WHEREOF this Deed has been signed on behalf of the Chargee and executed as a deed  by the Chargor and is intended to be and is hereby delivered by it as a deed.                                                        

 

                                           SCHEDULE 1                                   PARTICULARS OF SHARES   Beneficial owner                Shares of the Subject Entity   PELICAN HOLDCO LIMITED          100  ordinary shares of HK$1.00 each  in the share  capital of  the                                  Subject Entity                                                                                            

 

                                           SCHEDULE 2                                  INSTRUMENT OF TRANSFER                                                            Videotel Marine Asia Limited                                         (the “Company”)                           We     PELICAN HOLDCO LIMITED  (the “Transferor”) in consideration of the Sum of Dollars   paid to me by (name in full)   of (full address)   (hereinafter called “the said Transferee”) do hereby transfer to the said Transferee the                                        share(s) numbered   standing  in  my  name  in  the  Register  of  the Company  to  hold  unto  the  said  Transferee  or  (his/her  Executors or Administrators/its Assigns), subject to the several conditions upon which I hold the same  at the time of execution hereof. And we the said Transferee do hereby agree to take the said Share(s)  subject to the same conditions.   Witness our hands the                 day of    Signed by the Transferor                          )     in the presence of the witness:-                  )                                                       )   Witness’ address                                  )                                                       )  Signature:                                                                                                                                                  )        PELICAN HOLDCO LIMITED                                                     )                (Transferor)   Witness’ signature                                )                                                              Signed by the Transferee                          )     in the presence of the witness:-                  )                                                       )   Witness’ full name                                )                                                       )   Witness’ address                                  )                                                       )  Signature:                                                                                                                                                  )                                                                          )                (Transferee)   Witness’ signature                                )                                                          

 

                                        CONTRACT NOTES                                           SOLD NOTE    Transferee     Address                         Name of company in which the share(s) to be transferred -                                    Videotel Marine Asia Limited  Number of share(s)     Consideration received                                                 For and on behalf of                                             PELICAN HOLDCO LIMITED                                          (Transferor)                                                    Authorised Signature(s)   Dated                                                   BOUGHT NOTE      Transferor   PELICAN HOLDCO LIMITED  Address      3 Cadogan Gate, London SW1X 0AP, England                   Name of company in which the share(s) to be transferred -                                    Videotel Marine Asia Limited    Number of share(s)   Consideration paid                                                                                                    (Transferee)                                                    Authorised Signature(s)                                                     Dated                

 

                                           SCHEDULE 3            FORM OF DEED OF APPOINTMENT OF PROXY AND POWER OF ATTORNEY   We, PELICAN HOLDCO LIMITED, hereby:   1.     appoint __________________ as my proxy to vote at meeting of the shareholders of Videotel         Marine  Asia  Limited (the “Company”)  in  respect  of  the  Shares  (as  defined  in  the  Share         Charge (referred to below)) which may have been or may from time to time be issued and/or         registered in our name; and    2.     irrevocably appoint _____________________ as my duly authorised representative and duly         appointed attorney-in-fact to sign resolutions in writing of the Company in respect of the Shares         (as defined in the Share Charge (referred to below)) which may have been or may from time to         time be issued and/or registered in our name.   This  power  of  attorney  granted  hereunder  is  irrevocable  by  reason  of  being  given  for  valuable  consideration.   The power of attorney shall become effective only after the security created under the Share Charge  dated       2019 granted  and  delivered  by PELICAN  HOLDCO  LIMITED in favour  of KVH  MEDIA  GROUP LIMITED (the “Share Charge”) becomes enforceable under the terms thereof.   IN  WITNESS   whereof  this instrument  has  been  duly  executed  as  a  deed  this  _____  day  of  ___________.    EXECUTED AS A DEED BY                        )                                                  )   PELICAN HOLDCO LIMITED                                                 )                                                                                             )  For and on behalf of                                                     PELICAN HOLDCO LIMITED       In the presence of:                                                 Signature of Witness     Name:                                            Address:                                         Occupation:                                          

 

                                           EXECUTION   THE CHARGOR   SEALED, EXECUTED and DELIVERED as a            )  DEED for and on behalf of                      )  PELICAN HOLDCO LIMITED                         )   /s/ ALEX COLLINS                                                 )  by ____Alex Collins_____________               ) __________________________                                                  Title: Director  in the presence of   /s/ SAM FENTON- WHITTET  _______________________                          Witness Name: Sam Fenton-Whittet   Occupation: Finance      Address:       3 Cadogan Gate, London SW1X 0AS   Telephone:     ***   Fax:              Attention:                                                                                                                                                         

 

   THE CHARGEE   SIGNED for and on behalf of                    )  KVH MEDIA GROUP LIMITED                       )                                                      )    /s/ MARK WOODHEAD                                                 )  By: ___Mark Woodhead______________             ) ___________________________                                                 ) Title:  Director         Address:       2A Queens Street, Leeds   Telephone:     ****   Fax:           ****   Attention:     Mark Woodhead

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