Document:

EX-10.2

 Exhibit 10.2 

RESTRICTED STOCK AWARD AGREEMENT 

TIME AND MARKET-BASED VESTING 

(EXECUTIVES) 
 PAYCOM
SOFTWARE, INC. 
 2014 LONG-TERM INCENTIVE PLAN 

1.    Grant of Award. Pursuant to the Paycom Software, Inc. 2014 Long-Term Incentive Plan (the
“Plan”) for Employees, Contractors, and Outside Directors of Paycom Software, Inc., a Delaware corporation (the “Company”), the Company grants to 

 
  

(the “Participant”) 
 an
Award of Restricted Stock in accordance with Section 6.4 of the Plan. The number of shares of Common Stock awarded under this Restricted Stock Award Agreement (this “Agreement”) is
                    (            ) shares (the “Awarded Shares”),
as follows: 
 a.    [            ] percent
([    ]%) of the total Awarded Shares shall be subject to time-based vesting as set forth below (referred to herein as, the “Tranche A Shares”); and 

b.     [            ] percent
([    ]%) of the total Awarded Shares shall be subject to market-based vesting as set forth below (referred to herein as, the “Tranche B Shares”). 

The “Date of Grant” of this Award is [            
        ], 20[    ]. 
 2.    Subject to Plan;
Definitions. 
 a.    This Agreement is subject to the terms and conditions of the Plan, and the
terms of the Plan shall control to the extent not otherwise inconsistent with the provisions of this Agreement. To the extent the terms of the Plan are inconsistent with the provisions of the Agreement, this Agreement shall control. This Agreement
is subject to any rules promulgated pursuant to the Plan by the Board or the Committee and communicated to the Participant in writing. 

b.    The capitalized terms used herein that are defined in the Plan shall have the same meanings assigned
to them in the Plan; provided, that the following terms shall have the meanings set forth below: 

i.    “Appraised Value” means the value ascribed to a share of the subject Equity
Securities as set forth in the most recent written appraisal previously issued by an independent Person selected by the audit committee of the Company nationally recognized as having experience in providing investment banking or similar appraisal or
valuation services and with expertise generally in the valuation of securities; provided, that it being understood that neither the Board nor the audit committee shall have any obligation to obtain any such appraisal more than once per
calendar year. 
 ii.    “Equity Securities” means, as applicable, (a) any
capital stock, membership interests or other share capital, (b) any securities directly or indirectly 
  

 convertible into or exchangeable for any capital stock, membership interests or other share
capital or containing any profit participation features, (c) any rights or options directly or indirectly to subscribe for or to purchase any capital stock, membership interests, other share capital or securities containing any profit
participation features or to subscribe for or to purchase any securities directly or indirectly convertible into or exchangeable for any capital stock, membership interests, other share capital or securities containing any profit participation
features, (d) any share appreciation rights, phantom share rights or other similar rights, or (e) any Equity Securities as defined in clauses (a) through (d) above issued or issuable with respect to the securities referred to in
clauses (a) through (d) above in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization. 

iii.    “Equity Securities Value Per Share” means, for any class or series of
Equity Securities of the Company, for any date, the price determined by the first of the following clauses that applies: (a) if such Equity Securities are then listed or quoted on a Trading Market, the arithmetic average of the VWAP of a share
of such Equity Securities on each of the twenty (20) consecutive Trading Days immediately preceding such date; (b) if the Equity Securities are not then listed or quoted for trading on a Trading Market and if prices for such Equity
Securities are then reported on the OTC Bulletin Board (or a similar organization or agency succeeding to its functions of reporting prices), the arithmetic average of the closing bid price per share of the Common Stock so reported on each of the
twenty (20) consecutive Trading Days immediately preceding such date; or (c) in all other cases, the Appraised Value of a share of such Equity Securities. 

iv.    “First TEV Threshold” means
$[            ] billion. 

v.    [“Initial Vesting Date” means
[                    ], 20[    ].] 

vi.    “Paycom” means the Company and its Subsidiaries collectively. 

vii.    “Second TEV Threshold” means
$[            ] billion. 

viii.    “Total Enterprise Value” means the sum of: (i) the product of
(A) the Equity Securities Value Per Share of a share of Common Stock not subject to vesting or other restrictions multiplied by (B) the number of outstanding shares of Common Stock, less (y) the number of outstanding shares of
Restricted Stock or Other Awards of shares of Common Stock without vesting restrictions, in each case, issued after the date of this Agreement (including outstanding shares of Common Stock resulting from the vesting of such Restricted Stock), and
less (z) the number of shares of Common Stock issued by the Company after the date of this Agreement in connection with any merger, consolidation, share exchange or other transaction in which, in each case, the Company acquires voting
securities of another Person or all or any portion of another Person’s assets; (ii) for each other class or series of Equity Securities of the Company, if any, the product of (A) Equity Securities Value Per Share for such class or
series of such Equity Securities of the Company multiplied by (B) the number of shares of such class or series of such Equity Securities of the Company, less (y) the number of shares of such class or series of such Equity Securities issued
under the Plan (or otherwise issued for compensatory purposes) after the date of this Agreement, and less (z) the number of shares of such class or series of such Equity Securities issued by the Company after the date of this Agreement in
connection with any merger, consolidation, share exchange or other transaction in which, in each case, the Company acquires the voting securities of another Person or all or any 

  
 - 2 - 

 
portion of another Person’s assets; and (iii) the principal amount of all outstanding funded indebtedness of the Company as of the last day of the month immediately preceding the date
of calculation less the aggregate amount of cash and cash equivalents of the Company (exclusive of funds held on behalf of clients) as of the last day of the month immediately preceding the date of calculation. 

ix.    “Trading Day” means each Monday, Tuesday, Wednesday, Thursday and Friday,
other than any day on which securities are not traded on the applicable Trading Market or in the applicable securities market. 

x.    “Trading Market” means the primary securities exchange on which the Common
Stock is listed or quoted for trading on the date in question. 
 xi.    “VWAP”
means the daily volume weighted average price of a share of the Common Stock for such date on the Trading Market on which the Common Stock is then listed or quoted for trading as reported by Bloomberg L.P. (or successor thereto) using its
“Volume at Price” function (based on a Trading Day from 9:30 a.m. (New York City time) to 4:00 p.m. (New York City time)). 

3.    Vesting. Except as specifically provided in this Agreement and subject to certain restrictions and conditions
set forth in the Plan, the Awarded Shares shall vest as set forth below. Any Awarded Shares that become vested in accordance with this Section 3 shall be referred to as “Vested Shares” and any
Awarded Shares that, at the particular time of determination, have not become vested in accordance with this Section 3 shall be referred to as “Non-Vested
Shares.” 
 a.     The Tranche A Shares shall vest as follows: 

i.    [            ] percent
([    ]%) of the total Tranche A Shares shall vest on the [[first (1st) anniversary of the Date of Grant]/[Initial Vesting Date]], provided the Participant is employed
by (or if the Participant is a Contractor or an Outside Director, is providing services to) the Company or a Subsidiary on that date; and 

ii.    The remaining [            ] percent
([    ]%) of the Tranche A Shares shall vest on the [[second (2nd) anniversary of the Date of Grant]/[first (1st)
anniversary of the Initial Vesting Date]], provided the Participant is employed by (or if the Participant is a Contractor or an Outside Director, is providing services to) the Company or a Subsidiary on that date. 

b.     The Tranche B Shares shall vest as follows: 

i.    Fifty percent (50%) of the Tranche B Shares shall vest on the first date, if any, that the Total
Enterprise Value equals or exceeds the First TEV Threshold, provided that (A) the Participant is employed by (or if the Participant is a Contractor or an Outside Director, is providing services to) the Company or a Subsidiary on that
date and (B) such date occurs on or before the sixth (6th) anniversary of the Date of Grant; and 

ii.    Fifty percent (50%) of the Tranche B Shares shall vest on the first date, if any, that the Total
Enterprise Value equals or exceeds the Second TEV Threshold, provided that (A) the Participant is employed by (or if the Participant is a Contractor or an Outside Director, is providing services to) the Company or a Subsidiary on that
date and (B) such date occurs on or before the sixth (6th) anniversary of the Date of Grant. 

  
 - 3 - 

 Notwithstanding the foregoing, all Awarded Shares not previously vested shall immediately become vested in full
upon a Termination of Service as a result of the Participant’s death or Total and Permanent Disability. In addition, in the event that (i) a Change in Control occurs, and (ii) this Agreement is not assumed by the surviving corporation
or its parent, or the surviving corporation or its parent does not substitute its own restricted shares, then immediately prior to the effective date of such Change in Control, all Awarded Shares not previously vested shall thereupon immediately
become fully vested. 
 4.    Forfeiture of Awarded Shares. Notwithstanding anything herein to the contrary,
Awarded Shares that are not vested in accordance with Section 3 shall be forfeited and shall cease to be outstanding on the earlier of (i) (A) the
[[            ] ([    ]) anniversary of the Date of Grant/ [            ] ([    ])
anniversary of the Initial Vesting Date]] with respect to the Tranche A Shares, and (B) the sixth (6th) anniversary of the Date of Grant with respect to the Tranche B Shares, or (ii) the
date of the Participant’s Termination of Service with respect to all Awarded Shares. Upon forfeiture, all of the Participant’s rights with respect to the forfeited Awarded Shares shall cease and terminate, without any further obligations
on the part of the Company. 
 5.    Restrictions on Awarded Shares. The Participant shall not be permitted to
sell, transfer, pledge, hypothecate, margin, assign or otherwise encumber any of the Non-Vested Shares until such shares become Vested Shares in accordance with Section 3. The
Committee may in its sole discretion, remove any or all of such restrictions (or any other restrictions contained herein) on any Awarded Shares whenever it may determine that, by reason of changes in applicable law or changes in circumstances after
the date of this Agreement, such action is appropriate. 
 6.    Legend. The following legend shall be placed on
all certificates issued representing Awarded Shares: 
 On the face of the certificate: 

“TRANSFER OF THIS STOCK IS RESTRICTED IN ACCORDANCE WITH CONDITIONS PRINTED ON THE REVERSE OF THIS CERTIFICATE.”

 On the reverse: 

“THE SHARES OF STOCK EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO AND TRANSFERABLE ONLY IN ACCORDANCE WITH THAT CERTAIN
PAYCOM SOFTWARE, INC. 2014 LONG-TERM INCENTIVE PLAN AND THAT CERTAIN RESTRICTED STOCK AWARD AGREEMENT, BY AND BETWEEN THE COMPANY AND THE PARTICIPANT, DATED AS OF
                     20    , COPIES OF WHICH ARE ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY IN OKLAHOMA CITY, OKLAHOMA. NO
TRANSFER OR PLEDGE OF THE SHARES EVIDENCED HEREBY MAY BE MADE EXCEPT IN ACCORDANCE WITH AND SUBJECT TO THE PROVISIONS OF SAID PLAN. BY ACCEPTANCE OF THIS CERTIFICATE, ANY HOLDER, TRANSFEREE OR PLEDGEE HEREOF AGREES TO BE BOUND BY ALL OF THE
PROVISIONS OF SAID PLAN.” 

  
 - 4 - 

 The following legend shall be inserted on a certificate evidencing Common Stock issued under the
Plan if the shares were not issued in a transaction registered under the applicable federal and state securities laws: 

“SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED BY THE HOLDER FOR INVESTMENT AND NOT FOR RESALE,
TRANSFER OR DISTRIBUTION, HAVE BEEN ISSUED PURSUANT TO EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF APPLICABLE STATE AND FEDERAL SECURITIES LAWS, AND MAY NOT BE OFFERED FOR SALE, SOLD OR TRANSFERRED OTHER THAN PURSUANT TO EFFECTIVE REGISTRATION
UNDER SUCH LAWS, OR IN TRANSACTIONS OTHERWISE IN COMPLIANCE WITH SUCH LAWS, AND UPON EVIDENCE SATISFACTORY TO THE COMPANY OF COMPLIANCE WITH SUCH LAWS, AS TO WHICH THE COMPANY MAY RELY UPON AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY.”

 All Awarded Shares owned by the Participant shall be subject to the terms of this Agreement and shall be represented by a certificate or
certificates bearing the foregoing legend. 
 7.    Delivery of Certificates; Registration of Shares. The Company
shall deliver certificates for Awarded Shares to the Participant or shall register such Awarded Shares in the Participant’s name, free of restriction under this Agreement, promptly after, and only after, such Awarded Shares have become Vested
Shares in accordance with Section 3. In connection with any issuance of a certificate for Restricted Stock, the Participant shall endorse such certificate in blank or execute a stock power in a form satisfactory to the
Company in blank and deliver such certificate and executed stock power to the Company. 
 8.    Rights of a
Stockholder. Except as provided in Section 4 and Section 5 above, the Participant shall have, with respect to his Awarded Shares, all of the rights of a stockholder of the Company, including
the right to vote the shares, and the right to receive any dividends thereon, subject to the provisions of this Section 8. Any stock dividends paid with respect to Awarded Shares shall at all times be treated as Awarded
Shares and shall be subject to all restrictions placed on such Awarded Shares; any such stock dividends paid with respect to such Awarded Shares shall vest as the related Awarded Shares become vested. Any cash dividends paid with respect to Non-Vested Shares shall at all times be subject to the provisions of this Agreement (including the vesting and forfeiture provisions set forth above); any such cash dividends paid with respect to such Non-Vested Shares shall vest as such shares become Vested Shares, and shall be paid to the Participant on the date the Non-Vested Shares to which such cash dividends relate
become Vested Shares. 
 9.    Voting. The Participant, as record holder of the Awarded Shares, has the exclusive
right to vote, or consent with respect to, such Awarded Shares until such time as the Awarded Shares are transferred in accordance with this Agreement; provided that this Section 9 shall not create any voting right
where the holders of such Awarded Shares otherwise have no such right. 
 10.    Adjustment to Number of Awarded
Shares. The number of Awarded Shares shall be subject to adjustment in accordance with Articles 11-13 of the Plan. 

  
 - 5 - 

 11.    Specific Performance. The parties acknowledge that remedies at
law will be inadequate remedies for breach of this Agreement and consequently agree that this Agreement shall be enforceable by specific performance. The remedy of specific performance shall be cumulative of all of the rights and remedies at law or
in equity of the parties under this Agreement. 
 12.    Participant’s Representations. Notwithstanding any
of the provisions hereof, the Participant hereby agrees that he or she will not acquire any Awarded Shares, and that the Company will not be obligated to issue any Awarded Shares to the Participant hereunder, if the issuance of such shares shall
constitute a violation by the Participant or the Company of any provision of any law or regulation of any governmental authority. Any such determination by the Company shall be final, binding, and conclusive. The rights and obligations of the
Company and the rights and obligations of the Participant are subject to all applicable laws. 
 13.    Investment
Representation. Unless the Awarded Shares are issued in a transaction registered under applicable federal and state securities laws, by his or her execution hereof, the Participant represents and warrants to the Company that all Common Stock
which may be purchased and or received hereunder will be acquired by the Participant for investment purposes for his or her own account and not with any intent for resale or distribution in violation of federal or state securities laws. Unless the
Common Stock is issued to him or her in a transaction registered under the applicable federal and state securities laws, all certificates issued with respect to the Common Stock shall bear an appropriate restrictive investment legend and shall be
held indefinitely, unless they are subsequently registered under the applicable federal and state securities laws or the Participant obtains an opinion of counsel, in form and substance satisfactory to the Company and its counsel, that such
registration is not required. 
 14.    Participant’s Acknowledgments. The Participant acknowledges that a
copy of the Plan has been made available for his review by the Company, and represents that he is familiar with the terms and provisions thereof, and hereby accepts this Award subject to all the terms and provisions thereof. The Participant hereby
agrees to accept as binding, conclusive, and final all decisions or interpretations of the Committee or the Board, as appropriate, upon any questions arising under the Plan or this Agreement. 

15.    Law Governing. This Agreement shall be governed by, construed, and enforced in accordance with the laws of
the State of Delaware (excluding any conflict of laws rule or principle of Delaware law that might refer the governance, construction, or interpretation of this agreement to the laws of another state). 

16.    No Right to Continue Service or Employment. Nothing herein shall be construed to confer upon the Participant
the right to continue in the employ or to provide services to the Company or any Subsidiary, whether as an Employee or as a Contractor or as an Outside Director, or interfere with or restrict in any way the right of the Company or any Subsidiary to
discharge the Participant as an Employee, Contractor, or Outside Director at any time. 
 17.    Legal
Construction. In the event that any one or more of the terms, provisions, or agreements that are contained in this Agreement shall be held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect for any
reason, the invalid, illegal, or unenforceable term, provision, or agreement shall not affect any other term, provision, or agreement that is contained in this Agreement and this Agreement shall be construed in all respects as if the invalid,
illegal, or unenforceable term, provision, or agreement had never been contained herein. 
 18.    Covenants and
Agreements as Independent Agreements. Each of the covenants and agreements that are set forth in this Agreement shall be construed as a covenant and agreement independent of any other provision of this Agreement. The existence of any claim or
cause of action of 

  
 - 6 - 

 
the Participant against Paycom, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements that are set
forth in this Agreement. 
 19.    Entire Agreement. This Agreement together with the Plan supersede any and all
other prior understandings and agreements, either oral or in writing, between the parties with respect to the subject matter hereof and constitute the sole and only agreements between the parties with respect to the said subject matter. All prior
negotiations and agreements between the parties with respect to the subject matter hereof are merged into this Agreement. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise,
have been made by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement or the Plan and that any agreement, statement or promise that is not contained in this Agreement or the Plan shall not be valid or
binding or of any force or effect. 
 20.    Parties Bound. The terms, provisions, and agreements that are
contained in this Agreement shall apply to, be binding upon, and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, and permitted successors and assigns, subject to the limitation on
assignment expressly set forth herein. No Person shall be permitted to acquire any Awarded Shares without first executing and delivering an agreement in the form satisfactory to the Company making such Person or entity subject to the restrictions on
transfer contained herein. 
 21.    Modification. No change or modification of this Agreement shall be valid or
binding upon the parties unless the change or modification is in writing and signed by the parties. Notwithstanding the preceding sentence, the Company may amend the Plan to the extent permitted by the Plan. 

22.    Headings. The headings that are used in this Agreement are used for reference and convenience purposes only
and do not constitute substantive matters to be considered in construing the terms and provisions of this Agreement. 

23.    Gender and Number. Words of any gender used in this Agreement shall be held and construed to include any
other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise. 

24.    Notice. Any notice required or permitted to be delivered hereunder shall be in writing and shall be deemed
to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); or (c) on the third (3rd) day after the date
mailed, by certified or registered mail (in each case, return receipt requested, postage pre-paid). Notices must be sent to the respective parties at the following addresses (or at such other addresses as they
have theretofore specified by written notice delivered in accordance herewith: 
 Notice to the Company shall be addressed and delivered as
follows: 
 Paycom Software, Inc. 

7501 W. Memorial Rd. 
 Oklahoma
City, OK 73142 
 Attn: Chief Financial Officer 

Notice to the Participant shall be addressed and delivered as set forth on the signature page. 

  
 - 7 - 

 25.    Tax Requirements. The Participant is hereby advised to
consult immediately with his or her own tax advisor regarding the tax consequences of this Agreement, the method and timing for filing an election to include this Agreement in income under Section 83(b) of the Code, and the tax
consequences of such election. By execution of this Agreement, the Participant agrees that if the Participant makes such an election, the Participant shall provide the Company with written notice of such election in accordance with the regulations
promulgated under Section 83(b) of the Code. The Company or, if applicable, any Subsidiary (for purposes of this Section 25, the term “Company” shall be deemed to include any applicable
Subsidiary), shall have the right to deduct from all amounts paid in cash or other form in connection with the Plan, any Federal, state, local, or other taxes required by law to be withheld in connection with this Award. The Participant receiving
shares of Common Stock issued under the Plan shall pay to the Company, in accordance with the provisions of this Section 25, the amount of any taxes that the Company is required to withhold in connection with the
Participant’s income arising with respect to this Award. Such payment must be made prior to the delivery of any certificate representing shares of Common Stock, as follows: (i) if the Participant is a Reporting Participant and/or is
subject to the Company’s “Insider Trading Policy” at the time of vesting of Awarded Shares, then the tax withholding obligation must be satisfied by the Company’s withholding of a number of shares to be delivered upon the vesting
of such Awarded Shares, which shares so withheld have an aggregate Fair Market Value that equals (but does not exceed) the required tax withholding payment (the “Net Settlement of Shares”), provided that, the Committee
(excluding the Participant if the Participant is a member of the Committee) may, in its sole discretion, instead require the satisfaction of the tax withholding obligation in accordance with (ii)(A), (ii)(B) or (ii)(D) below; or
(ii) if the Participant is neither a Reporting Participant nor subject to the Company’s “Insider Trading Policy” at the time of vesting of Awarded Shares, then such payment may be made (A) by the delivery of cash to the
Company in an amount that equals or exceeds (to avoid the issuance of fractional shares) the required tax withholding obligations of the Company; (B) if the Company, in its sole discretion, so consents in writing, the actual delivery by the
Participant to the Company of shares of Common Stock, other than Restricted Stock or Common Stock that the Participant has acquired from the Company within six (6) months prior thereto, which shares so delivered have an aggregate Fair Market
Value that equals or exceeds (to avoid the issuance of fractional shares) the required tax withholding payment; (C) if the Company, in its sole discretion, so consents in writing, by the Net Settlement of Shares; or (D) any combination of
(A), (B), or (C). The Company may, in its sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by the Company to the Participant. 

[Remainder of Page Intentionally Left Blank. 

Signature Page Follows] 

  
 - 8 - 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized
officer, and the Participant, to evidence his or her consent and approval of all the terms hereof, has duly executed this Agreement, as of the date specified in Section 1 hereof. 

 

			
	COMPANY:

 
			
	
	 Paycom Software,
Inc.

 
			
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	
 

			
	
	PARTICIPANT:

 
			
	
	  

	 Signature

		
	 Name:
	 	  

	 Address:
	 	  

		 	  

  
 Signature Page to
Restricted Stock Award Agreement – 
 Time and Market-Based Vesting (Executives)Exhibit 4.35

 

Financial Service
Framework Agreement

 

This Agreement is made on 29 August 2016
in Guangzhou, between:

China Southern Airlines Company Limited
(hereinafter referred to as “Party A”)

Address: No. 278, Ji Chang Road, Guangzhou

Legal Representative: Wang Chang Shun (王昌顺)

 

Southern Airlines Group Finance Company
Limited (hereinafter referred to as “Party B”)

Address: No. 17, Hang Yun Nan Street, Baiyun
District, Guangzhou

Legal Representative: Wang Jianjun (王建军)

 

In
connection with Party B’s provision of deposit, loan business, insurance agent business and other relevant financial services
to Party A (In this Agreement, Party A shall include China Southern Airlines Company Limited and its controlled subsidiaries),
Party A and Party B, based on the principle of equality and mutual benefit, and through friendly negotiation, hereby reach a framework
agreement as follows:

 

Section 1 Deposit Services

 

		1.	Party A shall, in accordance with this Agreement,
deposit a part of its temporarily idle working capital and a part of operating return funds to its bank account opened with Party
B in the principle of free deposits and withdrawals.

 

		2.	Party B shall pay to Party A the interest for Party
A’s deposits on a regular basis at a rate no less than the deposit interest rates provided by the People’s Bank of
China during the same period.

 

		3.	Party B shall provide the transfer settlement services
to Party A for its normal operation activities according to Party A's need and relevant state provisions.

 

		4.	Party B shall provide online financial services to
Party A in order to speed up Party A’s fund settlements and increase the settlement efficiency.

 

    	 	1	 

     

    

 

 

 

Section 2 Loan Services

 

		1.	Party B shall, as practical as possible, give priorities
to meet Party A’s loan needs according to its own financial ability. Under this Agreement, the loan services Party B shall
provide to Party A shall include loans, commercial bill discounting service and other credit services.

 

		2.	If Party A applies to Party B for loans, Party A and
Party B shall sign loan contracts to specify the amount, purpose and duration of loans and other matters.

 

		3.	Party A shall pay to Party B the interest on its loans
from Party B at a rate no higher than the loan interest rates provided by the People’s Bank of China during the same period
..

 

		4.	Party A shall repay the principal of the loans and
pay the interest thereof as scheduled according to the loan service contracts both parties sign.

 

Section 3 Other
Finance Services

 

		1.	Party B may, upon acceptance of Party A’s entrustment,
provide the following financial services to Party A according to the needs of Party A’s normal operation activities. However,
Party A and Party B shall further sign separate contracts to agree upon specific provision of such services.

 

		(1)	Insurance agency business: Both parties agree to cooperate
on insurance sales business related to air transportation through certain sales platforms. Such platforms shall include ground
counters in all areas within the jurisdiction of Party A, 95539 call centers and corporate websites, mobile platforms and other
online and offline channels;

 

		(2)	Guarantee business;

 

		(3)	Financial and financing adviser, credit assurance
and related consultation and agency business;

 

		(4)	Other businesses that Party B may be engaged in after
obtaining approval from China Banking Regulatory Commission.

 

		2.	In the case that Party A is approved to issue bonds,
Party B may, upon acceptance of Party A’s entrustment, provide bond issuance and underwriting services to Party A. However,
Party A and Party B shall further sign separate contracts to agree upon specific provision of such services.

 

    	 	2	 

     

    

 

 

 

		3.	Party A shall provide insurance sales platforms to
Party B; while Party B shall pay fees to Party A for using such sales platforms.

 

		4.	Any fees Party B charges for providing any of the
foregoing financial services to Party A shall be in compliance with any relevant fee standards as provided by the People’s
Bank of China or China Banking Regulatory Commission, China Insurance Regulatory Commission and other regulatory authorities (if
any) and shall not be higher than any fees any independent third party charges for providing such financial services to Party
A.

 

		5.	With respect to the insurance agency business, Party
A shall be only liable for providing insurance sales platforms and shall not be liable for any disputes arising among the insurers,
insurance agents, policy holders, the insured and other parties. Party B shall ensure that it has the agency authority to sell
the insurance in the place where the insurance is sold. Party A shall not bear any obligations or liabilities arising therefrom.

 

Section 4 Special
Agreements

 

		1.	In order to better control the fund risks, Party B
undertakes to only deposit its idle funds to state-owned commercial banks and listed joint-equity commercial banks. Meanwhile,
Party B also undertakes to meet any Party A’s needs for using the deposits within Party A’s deposit limits at any
time.

 

		2.	In order to ensure the performance of this Agreement,
Party A agrees to provide a total loan limit no more than the total amount of Party B’s equity capital, common reserve fund
and other companies' deposits (excluding Party A) to China Southern Air Holding Company and its subsidiaries (excluding Party
A).

 

		3.	Both parties of the transaction shall follow a fair
and reasonable pricing principle which is based on fair market price and not higher than any independent third party’s pricing
or fee standards.

 

		4.	Both parties shall sign any specific agreements in
which relevant terms shall be provided based on general commercial terms or better terms and shall meet relevant requirements
of the listing rules of the places where the companies are listed.

 

    	 	3	 

     

    

 

 

 

Section 5 Liability
for Breach of Contract

 

Any violation of any
provisions of this Agreement by either party, or non-performance or incomplete performance of any of its obligations under this
Agreement by either party shall be deemed to constitute a breach of this Agreement. Therefore, the defaulting party shall assume
its default liabilities according to relevant provisions of the Contract Law of the People’s Republic of China; while
the other party shall have the right to terminate this Agreement. For the avoidance of doubt, this Agreement shall not constitute
any obligations of Party A to deposit money to or borrow money from Party B.

 

Section 6 Dispute Resolution

 

Both parties shall settle,
through friendly negotiation, any dispute arising from or in connection with the interpretation, effect and performance of this
Agreement. If such dispute cannot be settled through negotiation, either party may submit such dispute to a competent People’s
Court in Guangzhou City.

 

Section 7 Validity and Duration of this
Agreement

 

		1.	This Agreement has a validation period of 3 years
from 1 January 2017 to 31 December 2019. This Agreement shall be legally binding on both parties from the effective date hereof.

 

		2.	Both parties agree that from the effective date of
this Agreement, all previously signed relevant financial service framework agreements between them shall be automatically terminated.

 

Section 8 Transaction
Caps

 

		1.	Both parties hereto agree that from the effective
date of this Agreement, the balance of Party A’s deposit with Party B (including any accrued interest) on any day shall
not exceed RMB 8 billion; the balance of any loan service provided by Party B (including total interest expense) on any day shall
not exceed the foregoing same amount.

 

		2.	Both parties hereto agree that during the term of
this Agreement, in relation to other financial service business, the total transaction amount Party A shall pay to Party B in
any fiscal year shall not exceed RMB5 million; while the total transaction amount Party B shall pay to Party A shall not exceed
RMB68.60 million in 2017, RMB79.35 million in 2018 and RMB91.67 million in 2019.

 

    	 	4	 

     

    

 

 

 

Section 9 Risk Control

 

In order to control
the fund risk, Party B shall be obliged to assist Party A to complete the following measures:

 

		1.	Prior to conducting related transactions with Party
B, Party A shall have the right to have access to Party B’s effective Financial License and Business License of Enterprise
Legal Person. If Party B cannot provide relevant licenses or relevant licenses have expired, Party A will terminate any business
cooperation with Party B.

 

		2.	Prior to deposition of any funds with Party B, Party
A shall have the right to obtain and review Party B’s annual reports for the most recent fiscal year, which has been audited
by an accountants’ firm qualified to audit securities and futures business activities. Party A shall start business cooperation
with Party B if Party A confirms the risk can be controlled.

 

		3.	Party A shall be entitled to inspect Party B’s
operation and financial status on a regular basis and check with Party B whether there is any violation of any provisions of the
Measures for the Administration of Financial Companies of Enterprise Groups published by China Banking Regulatory Commission.
Party A shall be entitled to request Party B to provide Party A’s finance department with all information regarding its
regulatory indicators within fifteen working days after the end of each quarter. If any relevant indicators are found to be non-compliant
with relevant provisions of the Measures for the Administration of Financial Companies of Enterprise Groups, Party A will
terminate all deposit business cooperation with Party B.

 

		4.	In any one of the following cases, Party A shall have
to right to withdraw all or any part of its deposits with Party B or suspend depositing to Party B or request Party B to perform
and complete a rectification or take other risk management measures to effectively ensure the safety of Party A’s deposits
with Party B:

 

		(1)	Party B’s asset-liability ratio indicators are
non-compliant with the provisions of Section 34 of the Measures for the Administration of Financial Companies of Enterprise
Groups;

 

		(2)	Party B is unable to pay due debts, or an occurrence
of bank runs, or with a large amount of overdue loans or guarantees advances, serious failure of computer system, being robbed
or defrauded, or directors or senior management personnel being involved in serious violation of discipline, criminal cases and
other major issues;

 

    	 	5	 

     

    

 

 

 

		(3)	Party B has suffered a great loss in the securities
investment business and the loss has reached 50% of the registered capital of Party B;

 

		(4)	There is an occurrence of significant changes in the
organization, equity transactions or operation risks and other matters which may affect the normal operation of Party B;

 

		(5)	The proportion of Party A’s deposit balance
with Party B in Party B’s balance of the deposits absorbed by Party B exceeds the limit as provided by relevant securities
regulatory authorities;

 

		(6)	Party B is imposed to administrative sanctions by
China Banking Regulatory Commission or other regulatory authorities for violation of laws or regulations;

 

		(7)	Party B is ordered to rectify by China Banking Regulatory
Commission; and

 

		(8)	Other matters Party A considers may bring potential
security risks to Party A.

 

		5.	Party A shall have the right to withdraw all or any
part of its deposits with Party B at any time in order to ensure the security and liquidity of relevant deposits.

 

Section 10 Miscellaneous

 

		1.	Unless for compliance with any mandatory requirements
of any laws or any legal regulators, without the consent of the other party, either party shall not disclose to any other parties
any information about other party being obtained through this Agreement or any content of this Agreement.

 

		2.	Both parties shall strictly comply with the Anti
Money Laundering Law of the People’s Republic of China, Provisions of Anti Money Laundering of Financial Institutions,
Measures for Administration of Client Identity Identification and Materials and Transaction Records of Financial Institutions,
Measures for Administration of Anti Money Laundering in Insurance Industry and other relevant anti money laundering laws,
regulations and administrative rules and shall not participate in any money laundering activities or provide any facilitating
conditions for any money laundering activities conducted by any others.

 

		3.	Without prior written consents of both parties hereto,
any party shall not alter or modify any terms or contents of this Agreement. Any supplements or modifications shall be agreed
by both parties and formed a written supplementary agreement to have legal binding effect on both parties.

 

    	 	6	 

     

    

 

 

 

		4.	Both parties shall further negotiate to sign any written
supplementary agreement for any matters not covered in this Agreement. Such written supplementary agreement shall have same legal
effect as this Agreement.

 

		5.	This Agreement is made in six copies, with each party
holding two copies. Each copy shall have equal legal effect.

 

Party A: China Southern Airlines Company
Limited

Authorized Representative: Xiao Lixin (肖立新)

 

Party B: Southern Airlines Group Finance
Company Limited

Authorized Representative: Xu Yanqing (徐燕青)

 

    	 	7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00270-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00270-of-00352.parquet"}]]