Document:

Exhibit

 

 ISIN NO 001 0786056 

BOND AGREEMENT

between

Golar LNG Partners LP
(Issuer)

and

Nordic Trustee ASA
(Bond Trustee)

on behalf of

the Bondholders

in the bond issue

FRN Golar LNG Partners LP Senior Unsecured Bond Issue 2017/2021

     Nordic Trustee ASA

TABLE OF CONTENTS

1     Interpretation    3
2     The Bonds    10
3     Listing    11
4     Registration in a Securities Depository    11
5     Purchase and transfer of Bonds    11
6     Conditions Precedent    11
7     Representations and Warranties    12
8     Status of the Bonds and security    15
9     Interest    15
10    Maturity of the Bonds and Change of Control    16
11     Payments    17
12     Issuer’s acquisition of Bonds    18
13     Covenants    19
14     Fees and expenses    22
15     Events of Default    23
16    Bondholders’ Meeting    26
17    The Bond Trustee    29
18     Miscellaneous    31

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     Nordic Trustee ASA

This Bond Agreement has been entered into on 10 February 2017 by and between: 

		
	(1)
	Golar LNG Partners LP (a company incorporated in Marshall Islands with Company No. 950020) as issuer (the “Issuer”), and

		
	(2)
	Nordic Trustee ASA (a company incorporated in Norway with Company No. 963 342 624) as bond trustee (the “Bond Trustee”).

		
	1
	Interpretation

		
	1.1
	Definitions

In this Bond Agreement the following terms shall have the following meanings (certain terms relevant for Clauses 13 and 18.2 and other Clauses may be defined in the relevant Clause):

“Account Manager” means a Bondholder’s account manager in the Securities Depository.

 “Attachment” means any attachments to this Bond Agreement.

“Bond Agreement” means this bond agreement, including any Attachments to which it refers, and any subsequent amendments and additions agreed between the Parties.

“Bond Issue” means the bond issue constituted by the Bonds.

“Bond Reference Rate” means 3 months LIBOR

“Bondholder” means a holder of Bond(s), as registered in the Securities Depository, from time to time.

“Bondholders’ Meeting” means a meeting of Bondholders, as set forth in Clause 16.

“Bonds” means the securities issued by the Issuer pursuant to this Bond Agreement, representing the Bondholders’ underlying claim on the Issuer.

“Borrowed Money” means any indebtedness incurred in respect of: 

		
	(a)
	money borrowed or raised and debit balances at banks;

		
	(b)
	any bond, note, loan stock, debenture or similar debt instrument;

		
	(c)
	acceptance or documentary credit facilities;

		
	(d)
	receivables sold or discounted (otherwise than on a non-recourse basis);

    

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	(e)
	deferred payments for assets or services acquired (other than assets or services acquired on normal commercial terms in the ordinary course of business where payment is deferred by no more than one hundred and eighty (180) days);

		
	(f)
	capitalised lease obligations;

		
	(g)
	any other transaction (including, without limitation, forward sale or purchase agreements) having the commercial effect of a borrowing or raising of money;

		
	(h)
	guarantees in respect of the indebtedness of any person not being a member of the Group falling within any of (a) to (g) above; and

		
	(i)
	preferred share capital of the Issuer which is or may be redeemable prior to the Maturity Date.

 “Business Day” means any day on which commercial banks are open for general business and can settle foreign currency transactions in Oslo, London and New York.

“Business Day Convention” means that if the relevant Interest Payment Date falls on a day that is not a Business Day, that date will be the first following day that is a Business Day unless that day falls in the next calendar month, in which case that date will be the first preceding day that is a Business Day (Modified Following Business Day Convention).

“Change of Control Event” means if 

		
	(a)
	Golar LNG Limited ceases to hold, directly or indirectly, more than 50% of the ownership and voting rights of the General Partner; 

		
	(b)
	any person or group becomes the owner, directly or indirectly, of more than 50% of the outstanding shares of Golar LNG Limited; or

		
	(c)
	an entity other than Golar LNG Limited or person, group of persons or entities acting in concert acquires in excess of 50% of the issued share capital (or equivalent) of the Issuer, or has the right or ability to control, either directly or indirectly, the affairs or the composition of the majority of the board of directors (or equivalent) of the Issuer.

“Costs” means all costs, expenses, disbursements, payments, charges, losses, demands, claims, liabilities, penalties, fines, damages, judgments, orders, sanctions, fees (including travel expenses, VAT, court fees and legal fees) and any other outgoings of whatever nature.

“Debt Service” means, for any financial period of the Group, on a four (4) quarters trailing basis, the sum of: 

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	(a)
	the aggregate principal payable or paid during such period on any Borrowed Money of the Issuer or any consolidated Subsidiary, other than rental or other obligations under the lease agreements and principal of any such Borrowed Money prepaid at the option of the Issuer;

		
	(b)
	aggregate interest expense, less interest income, (including, without limitation, capitalised interest accrued during such period) of the Issuer and its consolidated Subsidiaries for such period; and

		
	(c) 
	all rent and capital lease obligations or operating lease obligations by which the Group Company is bound which are payable or paid during such period, net of cash released during the same period from deposits forming security for lease obligations and the portion of any debt discount that must be amortised in such period as calculated in accordance with GAAP and derived from the then latest audited consolidated accounts of the Issuer and its consolidated Subsidiaries delivered to the Bond Trustee.

“Decisive Influence” means a person having, as a result of an agreement or through the ownership of shares or interests in another person (directly or indirectly):
		
	(a)
	a majority of the voting rights in that other person; or

		
	(b)
	a right to elect or remove a majority of the members of the board of directors of that other person.

When determining the relevant person’s number of voting rights in the other person or the right to elect and remove members of the board of directors, rights held by the parent company of the relevant person and the parent company’s Subsidiaries shall be included.

“EBITDA” means, for a Relevant Period, the consolidated earnings before interest, taxes and depreciation and amortization (calculated as income from operations plus any depreciation and amortization, net financial expenses, and taxes on overall net income (to the extent deducted in calculating income from operations in respect of such period)) of the Group determined in accordance with GAAP, adjusted by: 

		
	(a)
	including, in relation to vessels acquired or new built and delivered during the Relevant Period (and which have not been in operation for the Group for the full previous 12-month period), the contribution of EBITDA annualized, calculated pro forma for a full 12-month (historical and/or forward looking) period (“Calculation Period”), provided it can demonstrate committed employment in the Calculation Period under relevant contract(s); and

		
	(b)
	excluding the consolidated earnings before interest, taxes and depreciation and amortization (calculated as set out above) attributable to any Group Company (or to any business or vessel) disposed of during the Relevant Period. 

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“Encumbrance” means any encumbrance, mortgage, pledge, lien, charge (whether fixed or floating), assignment by way of security, finance lease, sale and repurchase or sale and leaseback arrangement, sale of receivables on a recourse basis or security interest or any other agreement or arrangement having the effect of conferring security.

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“Event of Default” means the occurrence of an event or circumstance specified in Clause 15.1.
“Exchange” means securities exchange or other reputable marketplace for securities, on which the Bonds are listed, or where the Issuer has applied for listing of the Bonds. 

“Finance Documents” means (i) this Bond Agreement, (ii) the agreement between the Bond Trustee and the Issuer referred to in Clause 14.2 and (iii) any other document (whether creating a security interest or not) which is executed at any time by the Issuer or any other party in relation to any amount payable under this Bond Agreement.

“Financial Indebtedness” means any indebtedness incurred in respect of:
		
	(a)
	moneys borrowed, including acceptance credit; 

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

		
	(c)
	the amount of any liability in respect of any lease, hire purchase contract which would, in accordance with GAAP, be treated as a finance or capital lease; 

		
	(d)
	receivables sold or discounted (other than any receivables sold on a non-recourse basis);

		
	(e)
	any sale and lease-back transaction, or similar transaction which is treated as indebtedness under GAAP;

		
	(f)
	the acquisition cost of any asset to the extent payable after its acquisition or possession by the party liable where the deferred payment is arranged primarily as a method of raising finance or financing the acquisition of that asset;

		
	(g)
	any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price, including without limitation currency or interest rate swaps, caps or collar transactions (and, when calculating the value of the transaction, only the mark-to-market value shall be taken into account); 

		
	(h)
	any amounts raised under any other transactions having the commercial effect of a borrowing or raising of money, whether recorded in the balance sheet or not (including any forward sale of purchase agreement); 

		
	(i)
	any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institutions; and 

		
	(j)
	(without double counting) any guarantee, indemnity or similar assurance against financial loss of any person in respect of any of the items referred to in (a) through (i) above.

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“Financial Statements” means the audited consolidated annual accounts and financial statements of the Issuer for any financial year, drawn up according to GAAP, such accounts to include a profit and loss account, balance sheet, cash flow statement and report from the Board of Directors.

“Free Liquid Assets” means, at any relevant time, such part of the Liquid Assets of the Group as is, at such time, (i) freely available for use by it and which may, notwithstanding any right of set-off or agreement with any other party, be withdrawn and/or encashed and used by the Group for any lawful purpose without restriction and (ii) free of any Encumbrance unless the relevant asset is at the disposal of the Issuer.

“GAAP” means Generally Accepted Accounting Principles in the United States of America.

“General Partner” means Golar GP L.L.C., a Marshall Islands limited liability company, which is the general partner of the Issuer pursuant to the Marshall Islands Limited Partnership Act and the Issuer's partnership agreement.

“GOLP01” means the Issuer's bond issue FRN Golar LNG Partners LP Senior Unsecured Bond Issue 2012/2017 with ISIN NO 001 066135.8 (GOLP01).

“Group” means the Issuer and its Subsidiaries from time to time, and a “Group Company” means the Issuer or any of the Subsidiaries. 

“Interest Payment Date” means 15 May, 15 August, 15 November and 15 February each year and the Maturity Date. Any adjustment will be made according to the Business Day Convention.

“Initial Bond Issue” means the aggregate face value of all Bonds issued on the Issue Date.

“ISIN” means International Securities Identification Numbering system – the identification number of the Bonds.

“Issue Date” means 15  February 2017.

“Issuer’s Bonds” means Bonds owned by the Issuer, any party or parties who has Decisive Influence over the Issuer, or any party or parties over whom the Issuer has Decisive Influence.

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“LIBOR” means the interest rate which (a) is published on Reuters Screen LIBOR01 Page (or through another system or on another website replacing the said system or website respectively) approximately 11.00 a.m., London time, or, if such publication does not exist, (b) at that time corresponds to (i) the average of the quoted lending rates of commercial banks on the interbank market in  London or, if only one or no such quotes are provided, (ii) the assessment of the Bond Trustee of the interest rate, which in the Bond Trustee’s determination is equal to what is offered commercial banks in the  London interbank market, for the applicable period. If any such rate is below zero, LIBOR will be deemed to be zero. 

 “Liquid Assets” means 

		
	(a)
	cash balances and deposits (both current and fixed) with banks and other financial institutions available for withdrawal

		
	(b)
	any USD or Euro time deposit, overnight deposit, certificate of deposit or bankers’ acceptance, issued by, or time deposit with any commercial banking institution which has a credit rating of at least A from Standard & Poors;

		
	(c)
	undrawn amounts available for borrowing under existing credit lines with maturity longer than 6 months; and

		
	(d)
	short-term commercial paper issued by institutions, having a rating of at least A from Standard & Poors;

provided that Liquid Assets expressed or denominated in a currency other than USD shall be converted into USD by reference to the rate of exchange used for conversion of such currency in the consolidated balance sheet of the Group at the relevant Quarter Date or the last day of the relevant financial year at which the amount of Liquid Assets shall be determined.

“Managers” means the managers for the Bond Issue.
 
“Margin” means 6.25 percentage points per annum.

“Material Adverse Effect” means a material adverse effect on: (a) the Issuer’s ability to perform and comply with its obligations under this Bond Agreement; or (b) the validity or enforceability of this Bond Agreement. 

 “Maturity Date” means 15 May 2021 or an earlier maturity date as provided for in this Bond Agreement. Any further adjustment may be made according to the Business Day Convention.

 “Net Debt” means, on a consolidated basis, an amount equal to the aggregate of all Borrowed Money of the Group less Free Liquid Assets and cash deposits restricted under the terms of such Borrowed Money, as evidenced by the Issuer’s consolidated balance sheet from time to time.
 
“NOK” means Norwegian kroner, being the lawful currency of Norway.

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“Outstanding Bonds” means the aggregate value of the total number of Bonds not redeemed or otherwise discharged.

“Party” means a party to this Bond Agreement (including its successors and permitted transferees). 

“Paying Agent” means any legal entity as appointed by the Issuer who acts as paying agent on behalf of the Issuer with respect to the Bonds.

“Payment Date” means a date for payment of principal or interest. 
“Quarter Date” means each 31 March, 30 June, 30 September and 31 December.

“Quarterly Financial Reports” means the unaudited consolidated management accounts of the Issuer as of each Quarter Date, such accounts to include a profit and loss account, balance sheet, cash flow statement and management commentary.

“Relevant Period” means a trailing 4-quarter period.

“Securities Depository Act” means the Norwegian Act relating to Registration of Financial Instruments of 5 July 2002 No. 64.

“Securities Depository” means the securities depository in which the Bond Issue is registered, being Verdipapirsentralen ASA (VPS) in Norway.

“Security” means any encumbrance, mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect.

“Subsidiary” means an entity over which another entity or person has a determining influence due to (i) direct and indirect ownership of shares or other ownership interests, (ii) control of the general partner of any such other entity that is a limited partnership; and/or (iii) agreement, understanding or other arrangement. An entity shall always be considered to be the subsidiary of another entity or person if such entity or person has such number of shares or ownership interests so as to represent the majority of the votes in the entity, or has the right to vote in or vote out a majority of the directors in the entity.

“Taxes” means all present and future taxes, levies, imposts, duties, charges, fees, deductions and withholdings, and any restrictions and or conditions resulting in a charge together with interest thereon and penalties in respect thereof and “Tax” and “Taxation” shall be construed accordingly.

“USD” means US Dollars, being the legal currency of the United States of America.

“US Securities Act” means the U.S. Securities Act of 1933, as amended.

“Voting Bonds” means the Outstanding Bonds less the Issuer’s Bonds.
 

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	1.2
	Construction

In this Bond Agreement, unless the context otherwise requires: 

		
	(a)
	headings are for ease of reference only;

		
	(b)
	words denoting the singular number shall include the plural and vice versa;

		
	(c)
	references to Clauses are references to the Clauses of this Bond Agreement;

		
	(d)
	references to a time is a reference to Oslo time unless otherwise stated herein; 

		
	(e)
	references to a provision of law is a reference to that provision as it may be amended or re-enacted, and to any regulations made by the appropriate authority pursuant to such law, including any determinations, rulings, judgments and other binding decisions relating to such provision or regulation; 

		
	(f)
	references to “control” means the power to appoint a majority of the board of directors of the Issuer or to direct the management and policies of an entity, whether through the ownership of voting capital, by contract or otherwise; and

		
	(g)
	references to a “person” shall include any individual, firm, partnership, joint venture, company, corporation, trust, fund, body corporate, unincorporated body of persons, or any state or any agency of a state or association (whether or not having separate legal personality).

		
	2
	The Bonds

		
	2.1
	Binding nature of the Bond Agreement

		
	2.1.1
	The Bondholders are, through their subscription, purchase or other transfer of Bonds bound by the terms of the Bond Agreement and other Finance Documents, as authority to the Bond Trustee to finalize and execute the Bond Agreement on the Bondholders behalf is set out in the subscription documents, term sheet, sales documents or in any other way, and while all Bond transfers are subject to the terms of this Bond Agreement and all Bond transferees are, in taking transfer of Bonds, deemed to have accepted the terms of the Bond Agreement and the other Finance Documents and will automatically become parties to the Bond Agreement upon completed transfer having been registered, without any further action required to be taken or formalities to be complied with, see also Clause 18.1. 

		
	2.1.2
	The Bond Agreement is available to anyone and may be obtained from the Bond Trustee or the Issuer. The Issuer shall ensure that the Bond Agreement is available to the general public throughout the entire term of the Bonds. This Bond Agreement may be published at the web site www.stamdata.no.

		
	2.2
	The Bond Issue

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	2.2.1
	The Issuer has resolved to issue a series of Bonds in the total aggregate amount of USD 250,000,000 (US Dollars two hundred and fifty million). 

The Bonds will be in denominations of USD 200,000 each and rank pari passu between themselves.

The Bond Issue will be described as “FRN Golar LNG Partners LP Senior Unsecured Bond Issue 2017/2021”. 

The International Securities Identification Number (ISIN) of the Bond Issue will be NO 001 0786056.

The tenor of the Bonds is from and including the Issue Date to the Maturity Date.

		
	2.3
	Purpose and utilization

		
	2.3.1
	The net proceeds from the Bonds shall be used for refinancing of the Issuer's existing bonds GOLP01 and/or general corporate purposes.

		
	3
	Listing

		
	3.1
	The Issuer shall apply for listing of the Bonds on Oslo Børs within 12 months of the Issue Date. 

		
	3.2
	If the Bonds are listed, the Issuer shall ensure that the Bonds remain listed until they have been discharged in full.

		
	4
	Registration in a Securities Depository

		
	4.1
	The Bond Issue and the Bonds shall prior to disbursement be registered in the Securities Depository according to the Securities Depository Act and the terms and conditions of the Securities Depository. 

		
	4.2
	The Issuer shall promptly arrange for notification to the Securities Depository of any changes in the terms and conditions of this Bond Agreement. The Bond Trustee shall receive a copy of the notification. 

		
	4.3
	The Issuer is responsible for the implementation of correct registration in the Securities Depository. The registration may be executed by an agent for the Issuer provided that the agent is qualified according to relevant regulations.  

		
	4.4
	The Bonds have not been registered under the US Securities Act, and the Issuer is under no obligation to arrange for registration of the Bonds under the US Securities Act.

		
	5
	Purchase and transfer of Bonds 

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	5.1
	Bondholders may be subject to purchase or transfer restrictions with regard to the Bonds, as applicable from time to time under local laws to which a Bondholder may be subject (due e.g. to its nationality, its residency, its registered address, its place(s) for doing business). Each Bondholder must ensure compliance with applicable local laws and regulations at its own cost and expense.

		
	5.2
	Notwithstanding the above, a Bondholder which has purchased the Bonds in breach of applicable mandatory restrictions may nevertheless utilize its rights (including, but not limited to, voting rights) under this Bond Agreement.

		
	6
	Conditions Precedent

		
	6.1
	Disbursement of the net proceeds of the Bonds to the Issuer will be subject to the Bond Trustee having received the following documents, in form and substance satisfactory to it, at least two Business Days prior to the Issue Date:

		
	(a)
	this Bond Agreement duly executed by all parties thereto;

		
	(b)
	certified copies of all necessary corporate resolutions to issue the Bonds and execute the Finance Documents;

		
	(c)
	a power of attorney from the Issuer to relevant individuals for their execution of the relevant Finance Documents, or extracts from the relevant register or similar documentation evidencing the individuals' authorisation to sign the Finance Documents on behalf of the Issuer;

		
	(d)
	certified copies of (i) the Certificate of Incorporation or other similar official document for the Issuer, evidencing that it is validly existing and (ii) Articles of Association of the Issuer;

		
	(e)
	the latest Financial Statements and Quarterly Financial Report;

		
	(f)
	confirmation that the requirements set forth in Chapter 7 of the Norwegian Securities Trading Act (implementing the EU prospectus directive (2003/71 EC) concerning prospectuses have been fulfilled;

		
	(g)
	to the extent necessary, any public authorisations required for the Bond Issue;

		
	(h)
	confirmation that the Bonds have been registered in the Securities Depository;

		
	(i)
	the agreement set forth in Clause 14.2, duly executed; 

		
	(j)
	copies of any written documentation used in the marketing of the Bond Issue or made public by the Issuer or the Managers in connection with the Bond Issue; and

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	(k)
	any statements or legal opinions reasonably required by the Bond Trustee (including any capacity corporate opinions for the Issuer and opinions related to the validity, perfection and enforceability of the Finance Documents);

		
	6.2
	The Bond Trustee may, in its reasonable opinion, waive the deadline or requirements for documentation as set forth in Clause 6.1.

		
	6.3
	The Bond Trustee may require any statement or legal opinion in connection with the Bond Issue (pre and post Issue Date).

		
	6.4
	Disbursement of the net proceeds from the Bonds is subject to the Bond Trustee’s written notice to the Issuer, the Managers and the Paying Agent that the documents have been controlled and that the required conditions precedent are fulfilled.

		
	6.5
	On the Issue Date, subject to receipt of confirmation from the Bond Trustee pursuant to Clause 6.4, the Managers shall make the net proceeds from the Bond Issue available to the Issuer. 

		
	7
	Representations and Warranties

		
	7.1
	The Issuer represents and warrants to the Bond Trustee (on behalf of the Bondholders) that:

		
	(a)
	Status

The Issuer is a limited partnership, duly incorporated and validly existing under the law of the jurisdiction in which it is registered, and has the power to own its assets and carry on its business as it is being conducted.
		
	(b)
	Power and authority

The Issuer has the power to enter into and perform, and has taken all necessary corporate action to authorise its entry into, performance and delivery of this Bond Agreement and any other Finance Documents to which it is a party and the transactions contemplated by those Finance Documents.
		
	(c)
	Valid, binding and enforceable obligations

This Bond Agreement and any other Finance Document constitute legal, valid and binding obligations of the Issuer enforceable in accordance with their terms, and (save as provided for therein) no further registration, filing, payment of tax or fees or other formalities are necessary or desirable to render the said documents enforceable against the Issuer.
		
	(d)
	Non-conflict with other obligations

The entry into and performance by the Issuer of the Bond Agreement and any other Finance Document to which it is a party and the transactions contemplated thereby 

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do not and will not conflict with (i) any present law or regulation or present judicial or official order; (ii) its articles of association, by-laws or other constitutional documents; or (iii) any document or agreement which is binding on the Issuer or any of its assets.
		
	(e)
	No Event of Default

No Event of Default exists, and no other circumstances exist which constitute or (with the giving of notice, lapse of time, determination of materiality or the fulfilment of any other applicable condition, or any combination of the foregoing) would constitute a default under any document which is binding on the Issuer or any of its Subsidiaries or to which the Issuer’s (or any of its Subsidiaries’) assets are subject, and which has or may have a Material Adverse Effect.
		
	(f)
	Authorizations and consents

All authorisations, consents, licenses or approvals of any governmental authorities required for the Issuer in connection with the execution, performance, validity or enforceability of this Bond Agreement or any other Finance Document, and the transactions contemplated thereby, have been obtained and are valid and in full force and effect. All authorisations, consents, licenses or approvals of any governmental authorities required for the Issuer to carry on its business as presently conducted and as contemplated by this Bond Agreement, have been obtained and are in full force and effect. 

		
	(g)
	Litigation

No litigation, arbitration or administrative proceeding of or before any court, arbitral body or agency is pending or, to the best of the Issuer’s knowledge, threatened against the Issuer or any of its Subsidiaries which, if adversely determined, might reasonably be expected to have a Material Adverse Effect.
		
	(h)
	Financial Statements

The audited most recently Financial Statements and Quarterly Financial Reports of the Group fairly and accurately represent the assets and liabilities and financial condition as at their respective dates, and have been prepared in accordance with GAAP, consistently applied from one year to another.
		
	(i)
	No undisclosed liabilities

As of the date of the Financial Statements, the Issuer had no material liabilities, direct or indirect, actual or contingent, and there were no material anticipated losses from any unfavourable commitments not disclosed by or reserved against in the Financial Statements or in the notes thereto.
		
	(j)
	No Material Adverse Effect

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Since the date of the Financial Statements, there has been no change in the business, assets or financial condition of the Issuer that is likely to have a Material Adverse Effect.

		
	(k)
	No misleading information

Any factual information provided by it to the subscribers or the Bond Trustee for the purposes of this Bond Issue was true and accurate in all material respects as at the date it was provided or as at the date (if any) at which it is stated.
		
	(l)
	Environmental compliance

The Issuer and each Group Company is in compliance with any relevant applicable environmental law or regulation and no circumstances have occurred which would prevent such compliance in a manner which has or is likely to have a Material Adverse Effect.
		
	(m)
	Intellectual property

The Group has undisputed, valid and good title to 
		
	(a) 
	its patents, trademarks, service marks, designs, business names, copyrights, design rights, inventions, confidential information and other intellectual property rights and interests (whether registered or unregistered), and 

		
	(b) 
	the benefit of all applications and rights to use such assets

if failure to have such title may have a Material Adverse Effect.
		
	(n)
	No withholdings

The Issuer is not required to make any deduction or withholding from any payment which it may become obliged to make to the Bond Trustee (on behalf of the Bondholders) or the Bondholders under this Bond Agreement.
		
	(o)
	Pari passu ranking

The Issuer’s payment obligations under this Bond Agreement or any other Finance Document to which it is a party rank at least pari passu as set out in Clause 8.1.
		
	(p)
	Encumbrances

No Encumbrances exist over any of the present assets of any Group Company in conflict with this Bond Agreement.

		
	7.2
	The representations and warranties set out in Clause 7.1 are made on the execution date of this Bond Agreement, and shall be deemed to be repeated on the Issue Date.

		
	7.3
	In the event of misrepresentation, the Issuer shall indemnify the Bond Trustee for any economic losses suffered, both prior to the disbursement of the Bonds, and 

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during the term of the Bonds, as a result of its reliance on the representations and warranties provided by such Issuer herein.
		
	8
	Status of the Bonds and security

		
	8.1
	The Bonds shall rank as senior unsecured debt of the Issuer. The Bonds shall rank pari passu with other senior unsecured debt of the Issuer save for obligations which are mandatorily preferred by law. The Bonds shall rank ahead of subordinated debt.

		
	8.2
	The Bonds are unsecured. 

		
	9
	Interest 

		
	9.1
	The Issuer shall pay interest on the face value of the Bonds from, and including, the Issue Date at the Bond Reference Rate plus the Margin (together the “Floating Rate”).

		
	9.2
	Interest payments shall be made in arrears on the Interest Payment Dates each year, the first Interest Payment Date falls in May 2017.

		
	9.3
	The relevant interest payable amount shall be calculated based on a period from, and including, one Interest Payment Date to, but excluding, the next following applicable Interest Payment Date.

		
	9.4
	The day count fraction (“Floating Rate Day Count Fraction”) in respect of the calculation of the payable interest amount shall be “Actual/360”, which means that the number of days in the calculation period in which payment being made divided by 360.

		
	9.5
	The applicable Floating Rate on the Bonds is set/reset on each Interest Payment Date by the Bond Trustee commencing on the Interest Payment Date at the beginning of the relevant calculation period, based on the Bond Reference Rate two Business Days preceding that Interest Payment Date or, in the case of the first interest period, two Business Days preceding the Issue Date.

When the interest rate is set for the first time and on subsequent interest rate resets, the next Interest Payment Date, the interest rate applicable up to the next Interest Payment Date and the actual number of calendar days up to that date shall immediately be notified to the Bondholders, the Issuer, the Paying Agent, and if the Bonds are listed, the Exchange.

		
	9.6
	The payable interest amount per Bond for a relevant calculation period shall be calculated as follows:

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Interest    =    Face        x    Floating    x    Floating Rate
Amount        Value            Rate            Day Count Fraction

		
	10
	Maturity of the Bonds and Change of Control

		
	10.1
	Maturity

The Bonds shall mature in full on the Maturity Date, and shall be repaid at par (100%) by the Issuer.

		
	10.2
	Change of Control

		
	10.2.1
	Upon the occurrence of a Change of Control Event each Bondholder shall have a right of pre-payment (a “Put Option”) of its Bonds at a price of 101 % of par plus accrued interest. 

		
	10.2.2
	The Put Option must be exercised within 30 days after the Issuer has given notification to the Bond Trustee and the Bondholders of a Change of Control Event. Such notification shall be given as soon as possible after a Change of Control Event has taken place.

The Put Option may be exercised by the Bondholders by giving written notice of the request to its Account Manager. The Account Manager shall notify the Paying Agent of the pre-payment request. The settlement date of the Put Option shall be the fifth Business Day after the end of the 30 days exercise period of the Put Option.

		
	10.2.3
	On the settlement date of the Put Option, the Issuer shall pay to each of the Bondholders holding Bonds to be pre-paid, the principal amount of each such Bond (including the premium pursuant to Clause 10.2.1) and any unpaid interest accrued up to (but not including) the settlement date.

		
	10.2.4
	If Bonds representing more than 90 per cent of the Outstanding Bonds have been repurchased by the Issuer pursuant to this Clause 10.2 (Change of Control) (Put Option), the Issuer is entitled to repurchase all the remaining Outstanding Bonds at the price stated in Clause 10.2.3 above by notifying the remaining Bondholders of its intention to do so no later than 20 calendar days after the settlement date of the Put Option. Such prepayment may occur at the earliest on the 15th calendar day following the date of such notice.

		
	11
	Payments

		
	11.1
	Covenant to pay

		
	11.1.1
	The Issuer will on any Payment Date (or any other due date pursuant to any Finance Document) unconditionally pay to or to the order of the Bond Trustee all amounts due under this Bond Agreement or any other Finance Document. 

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	11.1.2
	The covenant contained in Clause 11.1.1 shall be for the benefit of the Bond Trustee and the Bondholders

		
	11.2
	Payment mechanics

		
	11.2.1
	If no specific order is made by the Bond Trustee under Clause 11.1.1, the Issuer shall pay all amounts due to the Bondholders under the Bonds and this Bond Agreement or any other Finance Document by crediting the bank account nominated by each Bondholder in connection with its securities account in the Securities Depository. 

		
	11.2.2
	Payment shall be deemed to have been made once the amount has been credited to the bank which holds the bank account nominated by the Bondholder in question, but if the paying bank and the receiving bank are the same, payment shall be deemed to have been made once the amount has been credited to the bank account nominated by the Bondholder in question, see however Clause 11.3.

		
	11.2.3
	In case of irregular payments, the Bond Trustee may instruct the Issuer, the Bondholders or others of other payment mechanisms than described in Clause 11.2.1 or 11.2.2 above. The Bond Trustee may also obtain payment information regarding Bondholders’ accounts from the Securities Depository or Account Managers.

		
	11.2.4
	Subject to Clause 11.3, payment by the Issuer in accordance with this Clause 11.2 shall constitute good discharge of its obligations under Clause 11.1.1.

		
	11.3
	Currency

		
	11.3.1
	Each Bondholder shall provide the Paying Agent (either directly or through its Account Manager) with specific payment instructions, including foreign exchange bank account details. Depending on any currency exchange settlement agreements between each Bondholder’s bank and the Paying Agent, cash settlement may be delayed, and payment shall be deemed to have been made at the date of the cash settlement, provided however, that no default interest or other penalty shall accrue for the account of the Issuer. 

		
	11.3.2
	Except as otherwise expressly provided, all amounts payable under this Bond Agreement and any other Finance Document shall be payable in the same currency as the Bonds are denominated in. If, however, the Bondholder has not given instruction as set out in Clause 11.3 within five Business Days prior to a Payment Date, the cash settlement will be exchanged into NOK and credited to the NOK bank account registered with the Bondholder’s account in the Securities Depository.

		
	11.3.3
	Amounts payable in respect of costs, expenses, taxes and other liabilities shall be payable in the currency in which they are incurred.

		
	11.4
	Set-off and counterclaims

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	11.4.1
	The Issuer may not apply or perform any counterclaims or set-off against any payment obligations pursuant to this Bond Agreement or any other Finance Document.

		
	11.5
	Interest in the event of late payment

		
	11.5.1
	In the event that payment of interest or principal is not made on the relevant Payment Date, the unpaid amount shall bear interest from the Payment Date at an interest rate equivalent to the interest rate according to Clause 9 plus 5.00 percentage points. 

		
	11.5.2
	The interest charged under this Clause 11.5 shall be added to the defaulted amount on each respective Interest Payment Date relating thereto until the defaulted amount has been repaid in full. 

		
	11.5.3
	The unpaid amounts shall bear interest as stated above until payment is made, whether or not the Bonds are declared to be in default pursuant to Clause 15.1 (a), cf. Clauses 15.2 - 15.4. 

		
	11.6
	Partial payments

		
	11.6.1
	If the Bond Trustee or the Paying Agent receives a payment that is insufficient to discharge all the amounts then due and payable under the Finance Documents, that payment shall be applied in the following order:

		
	(a)
	first, in or towards payment of any unpaid fees, costs and expenses of the Bond Trustee under the Finance Documents;

		
	(b)
	secondly, in or towards payment of any accrued interest due but unpaid under the Bond Agreement, pro rata and without any preference or priority of any kind; and

		
	(c)
	thirdly, in or towards payment of any principal due but unpaid under the Bond Agreement, pro rata and without any preference or priority of any kind.

		
	12
	Issuer’s acquisition of Bonds

		
	12.1
	The Issuer has the right to acquire and own Bonds (Issuer’s Bonds). The Issuer’s Bonds may at the Issuer’s discretion be retained by the Issuer, sold or discharged.

		
	13
	Covenants

		
	13.1
	General

		
	13.1.1
	The Issuer has undertaken the covenants in this Clause 13 to the Bond Trustee (on behalf of the Bondholders), as further stated below. 

    

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	13.1.2
	The covenants in this Clause 13 shall remain in force from the date of this Bond Agreement and until such time that no amounts are outstanding under this Bond Agreement and any other Finance Document, unless the Bond Trustee (or the Bondholders’ Meeting, as the case may be), has agreed in writing to waive any covenant, and then only to the extent of such waiver, and on the terms and conditions set forth in such waiver.

		
	13.2
	Information Covenants 

		
	13.2.1
	The Issuer shall 

		
	(a)
	without being requested to do so, immediately inform the Bond Trustee in writing of any Event of Default as well as of any circumstances which the Issuer understands or should understand is likely to become  an Event of Default;

		
	(b)
	without being requested to do so, inform the Bond Trustee in writing of any other event which may have a Material Adverse Effect;

		
	(c)
	without being requested to do so, inform the Bond Trustee if the Issuer intends to sell or dispose of all or a substantial part of its assets or operations, or change the nature of its business;

		
	(d)
	without being requested to do so, produce Financial Statements annually and Quarterly Financial Reports quarterly and make them directly available to the Bond Trustee and available on its website in the English language as soon as they become available, and not later than 120 days after the end of the financial year and 60 days after the end of the interim period, subject to any exemption, waiver or extension granted by Oslo Børs;

		
	(e)
	at the request of the Bond Trustee, report the balance of the Issuer’s Bonds;

		
	(f)
	without being requested to do so, send the Bond Trustee copies of any creditors’ notifications of the Issuer, including but not limited to mergers, de-mergers and reduction of the Issuer’s share capital or equity;

		
	(g)
	without being requested to do so, send a copy to the Bond Trustee of its notices to the Exchange (if listed) which are of relevance for the Issuer’s liabilities pursuant to this Bond Agreement;

		
	(h)
	without being requested to do so, inform the Bond Trustee of changes in the registration of the Bonds in the Securities Depository; and

		
	(i)
	within a reasonable time, provide such information about the Issuer’s business, assets and financial condition as the Bond Trustee may reasonably request.

		
	13.2.2
	The Issuer shall at the request of the Bond Trustee provide the documents and information necessary to maintain the listing and quotation of the Bonds on the Exchange (if listed) and to otherwise enable the Bond Trustee to carry out its rights and duties pursuant to this Bond Agreement and the other Finance Documents, as well as applicable laws and regulations.

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	13.2.3
	The Issuer shall in connection with the issue of its Financial Statements and Quarterly Financial Reports under Clause 13.2.1 (d), confirm to the Bond Trustee in writing the Issuer’s compliance with the covenants in Clause 13. Such confirmation shall be undertaken in a compliance certificate, substantially in the format set out in Attachment 1 hereto, signed by the Chief Executive Officer or Chief Financial Officer of the Issuer. In the event of non-compliance, the compliance certificate shall describe the non-compliance, the reasons therefore as well as the steps which the Issuer has taken and will take in order to rectify the non-compliance.

		
	13.3
	General Covenants

		
	(a)
	Pari passu ranking

The Issuer’s obligations under this Bond Agreement and any other Finance Document shall at all times rank at least pari passu as set out in Clause 8.1.
		
	(b)
	Mergers

The Issuer shall not, and shall procure that no Group Company shall, carry out any merger or other business combination or corporate reorganization involving consolidating the assets and obligations of the Issuer or such Group Company with any other companies or entities if such transaction would have a Material Adverse Effect. 
		
	(c)
	De-mergers

The Issuer shall not, and shall procure that no Group Company shall, carry out any de-merger or other corporate reorganization involving splitting the Issuer or such Group Company into two or more separate companies or entities, if such transaction would have a Material Adverse Effect.
		
	(d)
	Continuation of business

The Issuer shall not, and shall procure that no Group Company shall, cease to carry on the general nature or scope of its business, if such cessation would have a Material Adverse Effect. The Issuer shall procure that no material change is made to the general nature or scope of the business of the Group from that carried on at the date of this Bond Agreement, or as contemplated by this Bond Agreement.
		
	(e)
	Disposal of business

The Issuer shall not, and shall ensure that no Group Company shall, sell or otherwise dispose of all or a substantial part of the Group’s assets or operations, if such transaction would have a Material Adverse Effect. 

		
	13.4
	Corporate and operational matters

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	(a)
	Intra-group transactions

All transactions between any companies in the Group shall be on commercial terms, and shall comply with all applicable provisions of applicable corporate law applicable to such transactions, including, in respect of Norwegian companies, Section 3-9 of the Private or Public Limited Companies Act 1997.
		
	(b)
	Transactions with shareholders, directors and affiliated companies

The Issuer shall cause all transactions between any Group Company and (i) any shareholder thereof not part of the Group, (ii) any director or senior member of management in any Group Company, (iii) any company in which any Group Company holds more than 10 per cent of the shares, or (iv) or any company, person or entity controlled by or affiliated with any of the foregoing, to be entered into on commercial terms, not less favourable to the Group Company than would have prevailed in arms’ length transaction with a third party. 

All such transactions shall comply with all applicable provisions of applicable corporate law applicable to such transactions, including, in respect of Norwegian companies, Section 3-8 of the Private and Public Limited Companies Act 1997.
		
	(c)
	Corporate status

The Issuer shall (i) not change its type of organization or jurisdiction of organization and (ii) ensure that no Group Company changes its type of organization or jurisdiction of organization if such change may have a Material Adverse Effect.
		
	(d)
	Compliance with laws

The Issuer shall (and shall ensure that all Group Companies shall) carry on its business in accordance with acknowledged, careful and sound practices in all material aspects and comply in all material respects with all laws and regulations, including applicable sanction laws and regulations,  it or they may be subject to from time to time (including any environmental laws and regulations).
		
	(e)
	Litigations

The Issuer shall, promptly upon becoming aware of them, send the Bond Trustee such relevant details of any:
		
	(a)
	 litigations, arbitrations or administrative proceedings which have been or might be started by or against any Group Company and which, if decided adversely is likely to have a Material Adverse Effect; and

		
	(b)
	other events which have occurred or might occur and which is likely to  have a Material Adverse Effect, as the Bond Trustee may reasonably request.

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	(f)
	Subordination of Shareholders Loans

The Issuer shall ensure that any existing and future loan provided by any direct or indirect shareholder of the Issuer (a "Shareholder Loan"), including Golar LNG Limited, to any Group Company shall be unsecured and fully subordinated to the Bonds and otherwise on arm’s length terms.  The Issuer shall also ensure that future Shareholder Loans, except for (1) loans provided as seller’s credit in connection with the acquisition of a new asset and (2) revolving facilities of up to an aggregate maximum amount of USD 50,000,000, will have no repayment of principal required prior to the Maturity Date.
		
	(g)
	Listing of Issuers shares

The Issuer shall ensure that its common units remain listed on NASDAQ or another recognized stock exchange.

		
	13.5
	Financial Covenants

The Issuer shall, on a consolidated basis, comply with the following financial covenants during the term of the Bonds:

		
	(a)
	Free Liquidity

The Group shall maintain Free Liquid Assets of minimum USD 30,000,000.
		
	(b)
	EBITDA to Debt Service Ratio

The Group shall maintain an EBITDA to Debt Service ratio of minimum 1.15:1.
		
	(c)
	Net Debt to EBITDA Ratio

The Group shall maintain a Net Debt to EBITDA ratio of maximum 6.5:1. 

The issuer undertakes to comply with the above financial covenants at all times, such compliance to be tested and reported on each Quarter Date.
		
	14
	Fees and expenses

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	14.1
	The Issuer shall cover all costs and expenses incurred by it or the Bond Trustee in connection with this Bond Agreement and the fulfilment of its obligations under this Bond Agreement or any other Finance Document, including in connection with the negotiation, preparation, execution and enforcement of this Bond Agreement and the other Finance Documents and any registration or notifications relating thereto (including any stamp duty), the listing of the Bonds on an Exchange (if applicable), and the registration and administration of the Bonds in the Securities Depository. The Bond Trustee may withhold funds from any escrow account (or similar arrangement) or from other funds received from the Issuer or any other person, irrespective of such funds being subject to Security under a Finance Documents, to set-off and cover any such costs and expenses.

		
	14.2
	The fees, costs and expenses payable to the Bond Trustee shall be paid by the Issuer and are set out in a separate agreement between the Issuer and the Bond Trustee. 

		
	14.3
	Fees, costs and expenses payable to the Bond Trustee which, due to the Issuer’s insolvency or similar circumstances, are not reimbursed in any other way may be covered by making an equivalent reduction in the proceeds to the Bondholders hereunder of any costs and expenses incurred by the Bond Trustee in connection with the restructuring or default of the Bond Issue and the enforcement of any Finance Document.

		
	14.4
	Any public fees levied on the trade of Bonds in the secondary market shall be paid by the Bondholders, unless otherwise provided by law or regulation, and the Issuer is not responsible for reimbursing any such fees.

		
	14.5
	The Issuer is responsible for withholding any withholding tax imposed by applicable law on any payments to the Bondholders. 

		
	14.6
	If the Issuer is required by law to withhold any withholding tax from any payment under any Finance Document:

		
	(a)
	the amount of the payment due from the Issuer shall be increased to such amount which is necessary to ensure that the Bondholders receive a net amount which is (after making the required withholding) equal to the payment which would have been due if no withholding had been required; and

		
	(b)
	the Issuer shall at the request of the Bond Trustee deliver to the Bond Trustee evidence that the required tax reduction or withholding has been made.

		
	14.7
	If any withholding tax is imposed due to subsequent changes in applicable law after the date of this Bond Agreement, the Issuer shall have the right to call all but not some of the Bonds at par value plus accrued interest. Such call shall be notified by the Issuer in writing to the Bond Trustee and the Bondholders at least thirty - 30 - Business Days prior to the settlement date of the call.

		
	15
	Events of Default

		
	15.1
	Each of the events or circumstances set out in this Clause 15.1 shall constitute an Event of Default:

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	(a)
	Non-payment

The Issuer fails to pay any amount payable by it under the Finance Documents when such amount is due for payment, unless: 
		
	(i)
	its failure to pay is caused by administrative or technical error in payment systems or the Securities Depository and payment is made within five (5) Business Days following the original due date; or

		
	(ii)
	in the discretion of the Bond Trustee, the Issuer has substantiated that it is likely that such payment will be made in full within five (5) Business Days following the original due date.

		
	(b)
	Breach of other obligations

The Issuer or any Group Company fails to comply with any provision of the Finance Documents other than set out under paragraph (a) (Non-payment) above, unless such failure is capable of being remedied and is remedied within 20 Business Days after the earlier of the Issuer’s actual knowledge thereof, or notice thereof is given to the Issuer by the Bond Trustee.
		
	(c)
	Misrepresentation  

Any representation, warranty or statement (including statements in Compliance Certificates) made under or in connection with any Finance Documents is or proves to have been incorrect, inaccurate or misleading in any material respect when made or deemed to have been made, unless the circumstances giving rise to the misrepresentation are capable of remedy and are remedied within 20 Business Days of the earlier of the Bond Trustee giving notice to the Issuer or the Issuer becoming aware of such misrepresentation.
		
	(d)
	Cross default

If for the Issuer or any Group Company:
		
	(i)
	any Financial Indebtedness is not paid when due nor within any applicable grace period; or

		
	(ii)
	any Financial Indebtedness is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described); or

		
	(iii)
	any commitment for any Financial Indebtedness is cancelled or suspended by a creditor as a result of an event of default (however described); or

		
	(iv)
	any creditor becomes entitled to declare any Financial Indebtedness  due and payable prior to its specified maturity as a result of an event of default (however described), 

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provided however that the aggregate amount of such Financial Indebtedness or commitment for Financial Indebtedness falling within paragraphs (i) to (iv) above exceeds a total of USD 10 million (or the equivalent thereof in any other currency).
		
	(e)
	Insolvency and insolvency proceedings

The Issuer or any Group Company:
		
	(i)
	is or becomes Insolvent; or

		
	(ii)
	is or becomes the object of any corporate action or any legal proceedings is taken in relation to:

		
	(A)
	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) other than a solvent liquidation or reorganization; or

		
	(B)
	a composition, compromise, assignment or arrangement with any creditor which may materially impair its ability to perform its payment obligations under the terms and conditions of this Bond Agreement; or

		
	(C)
	the appointment of a liquidator (other than in respect of a solvent liquidation), receiver, administrative receiver, administrator, compulsory manager or other similar officer of any of its assets; or

		
	(D)
	enforcement of any Security over any of its or their assets having an aggregate value exceeding the threshold amount set out in paragraph 15.1 (d) (Cross default) above; or

		
	(E)
	for (A) - (D) above, any analogous procedure or step is taken in any jurisdiction in respect of any such company, 

however this shall not apply to any petition which is frivolous or vexatious and is discharged, stayed or dismissed within 20 Business Days of commencement.
		
	(f)
	Creditor’s process

Any expropriation, attachment, sequestration, distress or execution affects any asset or assets of the Issuer or any Group Company having an aggregate value exceeding the threshold amount set out in paragraph 15.1 (d) (Cross default) above and is not discharged within 20 Business Days.
		
	(g)
	Unlawfulness 

It is or becomes unlawful for the Issuer to perform or comply with any of its obligations under the Finance Documents to the extent this may materially impair:

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	(i)
	the ability of the Issuer to perform its obligations under terms and conditions of this Bond Agreement ; or 

		
	(ii)
	the ability of the Bond Trustee or any Security Agent to exercise any material right or power vested to it under the Finance Documents.

		
	15.2
	In the event that one or more of the circumstances mentioned in Clause 15.1 occurs and is continuing, the Bond Trustee can, in order to protect the interests of the Bondholders, declare the Outstanding Bonds including accrued interest and expenses to be in default and due for immediate payment. 

The Bond Trustee may at its discretion, on behalf of the Bondholders, take every measure necessary to recover the amounts due under the Outstanding Bonds, and all other amounts outstanding under the Bond Agreement and any other Finance Document, including any other contractual and non-contractual claims, that are derived therefrom or in connection therewith.

		
	15.3
	In the event that one or more of the circumstances mentioned in Clause 15.1 occurs and is continuing, the Bond Trustee shall declare the Outstanding Bonds including accrued interest and costs to be in default and due for payment if:

		
	(a)
	the Bond Trustee receives a demand in writing that a default shall be declared from Bondholders representing at least 1/5 of the Voting Bonds, and the Bondholders’ Meeting has not decided on other solutions, or 

		
	(b)
	the Bondholders’ Meeting has with simple  majority decided to declare the Outstanding Bonds in default and due for payment.

In either case the Bond Trustee shall on behalf of the Bondholders take every measure necessary to recover the amounts due under the Outstanding Bonds. The Bond Trustee can request satisfactory security for any possible liability and anticipated expenses, from those Bondholders who requested that the declaration of default be made pursuant to sub clause (a) above and/or those who voted in favour of the decision pursuant to sub clause (b) above.

		
	15.4
	In the event that the Bond Trustee pursuant to the terms of Clauses 15.2 or 15.3 declares the Outstanding Bonds to be in default and due for payment, the Bond Trustee shall immediately deliver to the Issuer a notice demanding payment of interest and principal due to the Bondholders under the Outstanding Bonds including accrued interest and interest on overdue amounts and expenses. 

		
	16
	Bondholders’ Meeting 

		
	16.1
	Authority of the Bondholders’ Meeting

		
	16.1.1
	The Bondholders’ Meeting represents the supreme authority of the Bondholders community in all matters relating to the Bonds, and has the power to make all decisions altering the terms and conditions of the Bonds, including, but not limited 

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to, any reduction of principal or interest and any conversion of the Bonds into other capital classes. 
		
	16.1.2
	The Bondholders’ Meeting cannot resolve that any overdue payment of any instalment shall be reduced unless there is a pro rata reduction of the principal that has not fallen due, but may resolve that accrued interest (whether overdue or not) shall be reduced without a corresponding reduction of principal.

		
	16.1.3
	If a resolution by or an approval of the Bondholders is required, such resolution shall be passed at a Bondholders’ Meeting, see however Clause 17.1. Resolutions passed at Bondholders’ Meetings shall be binding upon all Bondholders and prevail for all the Bonds.

		
	16.2
	Procedural rules for Bondholders’ meetings

		
	16.2.1
	A Bondholders’ Meeting shall be held at the written request of:

		
	(a)
	the Issuer;

		
	(b)
	Bondholders representing at least 1/10 of the Voting Bonds;

		
	(c)
	the Exchange, if the Bonds are listed; or

		
	(d)
	the Bond Trustee.

		
	16.2.2
	The Bondholders’ Meeting shall be summoned by the Bond Trustee. A request for a Bondholders’ Meeting shall be made in writing to the Bond Trustee, and shall clearly state the matters to be discussed.

		
	16.2.3
	If the Bond Trustee has not summoned a Bondholders’ Meeting within ten Business Days after having received a valid request, then the requesting party may summons the Bondholders’ Meeting itself.

		
	16.2.4
	The summons to a Bondholders’ Meeting shall be dispatched no later than ten Business Days prior to the date of the Bondholders’ Meeting. The summons and a confirmation of each Bondholder’s holdings of Bonds shall be sent to all Bondholders registered in the Securities Depository at the time of distribution. The Exchange shall also be informed if the Bonds are listed.

		
	16.2.5
	The summons shall specify the agenda of the Bondholders’ Meeting. The Bond Trustee may in the summons also set out other matters on the agenda than those requested. If amendments to this Bond Agreement have been proposed, the main content of the proposal shall be stated in the summons. 

		
	16.2.6
	The Bond Trustee may restrict the Issuer from making any changes in the number of Voting Bonds in the period from distribution of the summons until the Bondholders’ Meeting, by serving notice to it to such effect.

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	16.2.7
	Matters that have not been reported to the Bondholders in accordance with the procedural rules for summoning of a Bondholders’ Meeting may only be adopted with the approval of all Voting Bonds.

		
	16.2.8
	The Bondholders’ Meeting shall be held on premises designated by the Bond Trustee. The Bondholders’ Meeting shall be opened and shall, unless otherwise decided by the Bondholders’ Meeting, be chaired by the Bond Trustee. If the Bond Trustee is not present, the Bondholders’ Meeting shall be opened by a Bondholder, and be chaired by a representative elected by the Bondholders’ Meeting. 

		
	16.2.9
	Minutes of the Bondholders’ Meeting shall be kept. The minutes shall state the number of Bonds represented at the Bondholders’ Meeting, the resolutions passed at the meeting, and the result of the voting. The minutes shall be signed by the chairman and at least one other person elected by the Bondholders’ Meeting. The minutes shall be deposited with the Bond Trustee and shall be available to the Bondholders.

		
	16.2.10
	The Bondholders, the Bond Trustee and – provided the Bonds are listed – representatives of the Exchange, have the right to attend the Bondholders’ Meeting. The chairman may grant access to the meeting to other parties, unless the Bondholders’ Meeting decides otherwise. Bondholders may attend by a representative holding proxy. Bondholders have the right to be assisted by an advisor. In case of dispute the chairman shall decide who may attend the Bondholders’ Meeting and vote for the Bonds.

		
	16.2.11
	Representatives of the Issuer have the right to attend the Bondholders’ Meeting. The Bondholders’ Meeting may resolve that the Issuer’s representatives may not participate in particular matters. The Issuer has the right to be present under the voting.

		
	16.3
	Resolutions passed at Bondholders’ Meetings

		
	16.3.1
	At the Bondholders’ Meeting each Bondholder may cast one vote for each Voting Bond owned at close of business on the day prior to the date of the Bondholders’ Meeting in accordance with the records registered in the Securities Depository. The Bond Trustee may, at its sole discretion, accept other evidence of ownership. Whoever opens the Bondholders’ Meeting shall adjudicate any question concerning which Bonds shall count as the Issuer’s Bonds. The Issuer’s Bonds shall not have any voting rights.

For this purpose, a Bondholder that has a Bond that is nominee registered shall be deemed as the Bondholder of such Bond (instead of the nominee) provided that the Bondholder presents relevant evidence stating that the relevant Bondholder is the Bondholder of the Bond and the amount of Bonds held by such Bondholder. 
		
	16.3.2
	In all matters, the Issuer, the Bond Trustee and any Bondholder have the right to demand vote by ballot. In case of parity of votes, the chairman shall have the deciding vote, regardless of the chairman being a Bondholder or not. 

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	16.3.3
	In order to form a quorum, at least half (1/2) of the Voting Bonds must be represented at the meeting, see however Clause 16.4. Even if less than half (1/2) of the Voting Bonds are represented, the Bondholders’ Meeting shall be held and voting completed.

		
	16.3.4
	Resolutions shall be passed by simple majority of the Voting Bonds represented at the Bondholders’ Meeting, unless otherwise set out in Clause 16.3.5.

		
	16.3.5
	A majority of at least 2/3 of the Voting Bonds represented at the Bondholders’ Meeting is required for any waiver or amendment of any terms of this Bond Agreement.

		
	16.3.6
	The Bondholders’ Meeting may not adopt resolutions which may give certain Bondholders or others an unreasonable advantage at the expense of other Bondholders. 

		
	16.3.7
	The Bond Trustee shall ensure that resolutions passed at the Bondholders’ Meeting are properly implemented, however, the Bond Trustee may refuse to carry out resolutions being in conflict with this Bond Agreement (or any other Finance Document) or any applicable law. 

		
	16.3.8
	The Issuer, the Bondholders and the Exchange shall be notified of resolutions passed at the Bondholders’ Meeting.

		
	16.4
	Repeated Bondholders’ Meeting

		
	16.4.1
	If the Bondholders’ Meeting does not form a quorum pursuant to Clause 16.3.3, a repeated Bondholders’ Meeting may be summoned to vote on the same matters. The attendance and the voting result of the first Bondholders’ Meeting shall be specified in the summons for the repeated Bondholders’ Meeting. 

		
	16.4.2
	The procedures and resolutions as set out in 16.2 and 16.3 above also apply for a repeated Bondholders’ meeting, however, a valid resolution may be passed at a repeated Bondholders’ Meeting even though less than half (1/2) of the Voting Bonds are represented.

		
	17
	The Bond Trustee

		
	17.1
	The role and authority of the Bond Trustee

		
	17.1.1
	The Bond Trustee shall monitor the compliance by the Issuer of its obligations under this Bond Agreement and applicable laws and regulations which are relevant to the terms of this Bond Agreement, including supervision of timely and correct payment of principal or interest, (however, this shall not restrict the Bond Trustee from discussing matters of confidentiality with the Issuer), arrange Bondholders’ Meetings, and make the decisions and implement the measures resolved pursuant to this Bond Agreement. The Bond Trustee is not obligated to assess the Issuer’s financial situation beyond what is directly set out in this Bond Agreement. 

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     Nordic Trustee ASA

		
	17.1.2
	The Bond Trustee may take any step it in its sole discretion considers necessary or advisable to ensure the rights of the Bondholders in all matters pursuant to the terms of this Bond Agreement and is entitled to rely on advice from professional advisors. The Bond Trustee may in its sole discretion postpone taking action until such matter has been put forward to the Bondholders’ Meeting. The Bond Trustee is not obliged to take any steps to ascertain whether any Event of Default has occurred and until it has actual knowledge or express notice to the contrary the Bond Trustee is entitled to assume that no Event of Default has occurred.

		
	17.1.3
	The Bond Trustee may make decisions binding for all Bondholders concerning this Bond Agreement, including amendments to this Bond Agreement and waivers or modifications of certain provisions, which in the opinion of the Bond Trustee, do not materially and adversely affect the rights or interests of the Bondholders pursuant to this Bond Agreement.

		
	17.1.4
	The Bond Trustee may reach decisions binding for all Bondholders in circumstances other than those mentioned in Clause 17.1.3 provided that prior notification has been made to the Bondholders. Such notice shall contain a proposal of the amendment and the Bond Trustee’s evaluation. Further, such notification shall state that the Bond Trustee may not reach a decision binding for all Bondholders in the event that any Bondholder submits a written protest against the proposal within a deadline set by the Bond Trustee. Such deadline may not be less than five Business Days following the dispatch of such notification.

		
	17.1.5
	The Bond Trustee may reach other decisions than set out in Clauses 17.1.3 or 17.1.4 to amend or rectify decisions which due to spelling errors, calculation mistakes, misunderstandings or other obvious errors do not have the intended meaning.

		
	17.1.6
	The Bond Trustee may not adopt resolutions which may give certain Bondholders or others an unreasonable advantage at the expense of other Bondholders. 

		
	17.1.7
	The Issuer, the Bondholders and the Exchange shall be notified of decisions made by the Bond Trustee pursuant to Clause 17.1 unless such notice obviously is unnecessary.

		
	17.1.8
	The Bondholders’ Meeting can decide to replace the Bond Trustee without the Issuer’s approval, as provided for in Clause 16.3.5.

		
	17.1.9
	The Bond Trustee may act as bond trustee and/or security agent for several bond issues relating to the Issuer notwithstanding potential conflicts of interest. The Bond Trustee may delegate exercise of its powers to other professional parties.

		
	17.1.10
	The Bond Trustee may instruct the Paying Agent to split the Bonds to a lower denomination in order to facilitate partial redemptions or restructuring of the Bonds or other situations.

		
	17.2
	Liability and indemnity

		
	17.2.1
	The Bond Trustee is liable only for direct losses incurred by Bondholders or the Issuer as a result of gross negligence or wilful misconduct by the Bond Trustee in performing its functions and duties as set out in this Bond Agreement. Such liability 

32

     Nordic Trustee ASA

is limited to the maximum amount set out in Clause 2.2. The Bond Trustee is not liable for the content of information provided to the Bondholders on behalf of the Issuer.
		
	17.2.2
	The Issuer is liable for, and shall indemnify the Bond Trustee fully in respect of, all losses, expenses and liabilities incurred by the Bond Trustee as a result of negligence by the Issuer (including its directors, management, officers, employees, agents and representatives) to fulfil its obligations under the terms of this Bond Agreement and any other Finance Document, including losses incurred by the Bond Trustee as a result of the Bond Trustee’s actions based on misrepresentations made by the Issuer in connection with the establishment and performance of this Bond Agreement and any other Finance Document. 

		
	17.2.3
	The Bond Trustee can as a condition for carrying out an instruction from the Bondholders (including, but not limited to, instructions set out in Clause 15.3 (a) or 16.2.1 (b), require satisfactory security and indemnities for any possible liability and anticipated costs and expenses, from those Bondholders who requested that instruction and/or those who voted in favour of the decision to instruct the Bond Trustee. Any instructions from the Bondholders may be put forward to the Bondholders’ Meeting by the Bond Trustee before the Bond Trustee takes any action. 

		
	17.3
	Change of Bond Trustee

		
	17.3.1
	Change of Bond Trustee shall be carried out pursuant to the procedures set out in Clause 16. The Bond Trustee shall continue to carry out its duties as bond trustee until such time that a new Bond Trustee is elected.

		
	17.3.2
	The fees and expenses of a new bond trustee shall be covered by the Issuer pursuant to the terms set out in Clause 14, but may be recovered wholly or partially from the Bond Trustee if the change is due to a breach by the Bond Trustee of its duties pursuant to the terms of this Bond Agreement or other circumstances for which the Bond Trustee is liable.

		
	17.3.3
	The Bond Trustee undertakes to co-operate so that the new bond trustee receives without undue delay following the Bondholders’ Meeting the documentation and information necessary to perform the functions as set out under the terms of this Bond Agreement. 

		
	18
	Miscellaneous 

		
	18.1
	The community of Bondholders

		
	18.1.1
	By virtue of holding Bonds, which are governed by this Bond Agreement (which pursuant to Clause 2.1.1 is binding upon all Bondholders), a community exists between the Bondholders, implying, inter alia, that 

33

     Nordic Trustee ASA

		
	(a)
	the Bondholders are bound by the terms of this Bond Agreement;

		
	(b)
	the Bond Trustee has power and authority to act on behalf of, and/or represent, the Bondholders, in all matters, included but not limited to taking any legal or other action, including enforcement of the Bond Issue and/or any Security, opening of bankruptcy or other insolvency proceedings;

		
	(c)
	the Bond Trustee has, in order to manage the terms of this Bond Agreement, access to the Securities Depository to review ownership of Bonds registered in the Securities Depository; and

		
	(d)
	this Bond Agreement establishes a community between Bondholders meaning that;

		
	(i)
	the Bonds rank pari passu between each other;

		
	(ii)
	the Bondholders may not, based on this Bond Agreement, act directly towards, and may not themselves institute legal proceedings against, the Issuer, guarantors or any other third party based on claims derived from the Finance Documents, including but not limited to recover the Bonds, enforcing any Security Interest or pursuing claims against any party as a substitute for damages to the interests under the Finance Documents, regardless of claims being pursued on a contractual or non-contractual basis, however not restricting the Bondholders to exercise their individual rights derived from this Bond Agreement;

		
	(iii)
	the Issuer may not, based on this Bond Agreement, act directly towards the Bondholders;

		
	(iv)
	the Bondholders may not cancel the Bondholders’ community; and 

		
	(v)
	the individual Bondholder may not resign from the Bondholders’ community.

		
	18.2
	Bond Defeasance

		
	18.2.1
	The Issuer may, at its option and at any time, elect to have certain obligations discharged (see Clause 18.2.2) upon complying with the following conditions (“Bond Defeasance”); 

34

     Nordic Trustee ASA

		
	(a)
	the Issuer shall have irrevocably pledged to the Bond Trustee for the benefit of the Bondholders cash or government bonds accepted by the Bond Trustee, or other security accepted by the Bond Trustee, (the “Defeasance Security”) in such amounts as will be sufficient for the payment of principal (including if applicable premium payable upon exercise of a Call Option) and interest on the Outstanding Bonds to Maturity Date (or upon an exercise of a Call Option plus applicable premium) or any other amount agreed between the Parties;

		
	(b)
	the Issuer shall have delivered to the Bond Trustee a duly signed certificate that the Defeasance Security was not made by the Issuer with the intent of preferring the Bondholders over any other creditors of the Issuer or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Issuer or others; and

		
	(c)
	the Issuer shall have delivered to the Bond Trustee any certificate or legal opinion reasonably required by the Bond Trustee regarding the Bond Defeasance including any statements regarding the perfection and enforceability, rights against other creditors (including any hardening period) and other issues regarding the Defeasance Security. 

		
	18.2.2
	Upon the exercise by the Issuer of the Bond Defeasance:

		
	(a)
	the Issuer shall be released from the obligations under all provisions in Clause 13, except Clauses 13.2.1 (a), (e), (h) and (i), or as otherwise agreed;

		
	(b)
	the Issuer shall not (and shall ensure that all Group Companies shall not) take any actions that may cause the value of the Defeasance Security to be reduced, and shall at the request of the Bond Trustee execute, such further actions as the Bond Trustee may reasonably require;

		
	(c)
	any Security other than the Defeasance Security shall be discharged; and

		
	(d)
	all other provisions of this Bond Agreement (except (a) – (b) above) shall remain fully in force without any modifications, or as otherwise agreed.

		
	18.2.3
	All amounts owed by the Issuer hereunder covered by the Defeasance Security shall be applied by the Bond Trustee, in accordance with the provisions of this Bond Agreement, against payment to the Bondholders of all sums due to them under this Bond Agreement on the due date thereof.

Any excess funds not required for the payment of principal, premium and interest to the Bondholders (including any expenses, fees etc. due to the Bond Trustee hereunder) shall be returned to the Issuer.
		
	18.2.4
	If the Bonds are secured, the Defeasance Security shall be considered as a replacement of the Security established prior to the Defeasance Security.

		
	18.3
	Limitation of claims

35

     Nordic Trustee ASA

		
	18.3.1
	All claims under the Bonds and this Bond Agreement for payment, including interest and principal, shall be subject to the time-bar provisions of the Norwegian Limitation Act of May 18, 1979 No. 18.

		
	18.4
	Access to information

		
	18.4.1
	The Bond Agreement is available to anyone and copies may be obtained from the Bond Trustee or the Issuer. The Bond Trustee shall not have any obligation to distribute any other information to the Bondholders or others than explicitly stated in this Bond Agreement. The Issuer shall ensure that the Bond Agreement is available in copy form to the general public until all the Bonds have been fully discharged.

		
	18.4.2
	The Bond Trustee shall, in order to carry out its functions and obligations under the Bond Agreement, have access to the Securities Depository for the purposes of reviewing ownership of the Bonds registered in the Securities Depository. 

		
	18.5
	Amendments

		
	18.5.1
	All amendments of this Bond Agreement shall be made in writing, and shall unless otherwise provided for by this Bond Agreement, only be made with the approval of all parties hereto.

		
	18.6
	Notices, contact information

		
	18.6.1
	Written notices, warnings, summons etc to the Bondholders made by the Bond Trustee shall be sent via the Securities Depository with a copy to the Issuer and the Exchange. Information to the Bondholders may also be published at the web site www.stamdata.no.

		
	18.6.2
	The Issuer’s written notifications to the Bondholders shall be sent via the Bond Trustee, alternatively through the Securities Depository with a copy to the Bond Trustee and the Exchange.

		
	18.6.3
	Unless otherwise specifically provided, all notices or other communications under or in connection with this Bond Agreement between the Bond Trustee and the Issuer shall be given or made in writing, by letter, or telefax. Any such notice or communication addressed shall be deemed to be given or made as follows:

36

     Nordic Trustee ASA

		
	(a)
	if by letter, when delivered at the address of the relevant Party;

		
	(b)
	If by e-mail, when received; and 

		
	(c)
	if by telefax, when received.

However, a notice given in accordance with the above but received on a day which is not a business day in the place of receipt, or after 3:00 p.m. on such a business day, shall only be deemed to be given at 9:00 a.m. on the next business day in that place.

		
	18.6.4
	The Issuer and the Bond Trustee shall ensure that the other party is kept informed of changes in postal address, e-mail address, telephone and fax numbers and contact persons 

		
	18.6.5
	When determining deadlines set out in this Bond Agreement, the following shall apply (unless otherwise stated):

		
	(a)
	If the deadline is set out in days, the first day when the deadline is in force shall not be inclusive, however, the meeting day or the occurrence the deadline relates to, shall be included. 

		
	(b)
	If the deadline is set out in weeks, months or years, the deadline shall end on the day in the last week or the last month which, according to its name or number, corresponds to the first day the deadline is in force. If such day is not a part of an actual month, the deadline shall be the last day of such month.

		
	(c)
	If a deadline ends on a day which is not a Business Day, the deadline is postponed to the next Business Date.

		
	18.7
	Dispute resolution and legal venue

		
	18.7.1
	This Bond Agreement and all disputes arising out of, or in connection with this Bond Agreement between the Bond Trustee, the Bondholders and the Issuer, shall be governed by Norwegian law. 

All disputes arising out of, or in connection with this Bond Agreement between the Bond Trustee, the Bondholders and the Issuer, shall be exclusively resolved by the courts of Norway, with the District Court of Oslo as sole legal venue. 
This Clause 18.7 is for the benefit of the Bond Trustee only. As a result, the Bond Trustee shall not be prevented from taking proceedings relating to a dispute in any other courts with jurisdiction. To the extent allowed by law, the Bond Trustee may take concurrent proceedings in any number of jurisdictions.

		
	18.8
	Process Agent

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     Nordic Trustee ASA

The Issuer shall, prior to the Issue Date, nominate a process agent in Norway for the purpose of serving a writ of summons and/or any other act of process in respect of the courts in Norway, or any notices as set out in this Bond Agreement. 

*****

This Bond Agreement has been executed in two originals, of which the Issuer and the Bond Trustee retain one each. 

	
		
	Issuer
/s/ Graham Robjohns
.....................................................
By: Graham Robjohns
Position: Attorney-in-fact
	Bond Trustee
/s/ Jorgen Andersen
.....................................................
By: Jorgen Andersen
Position: 

38

     Nordic Trustee ASA

Attachment 1

COMPLIANCE CERTIFICATE

Nordic Trustee ASA
P.O. Box 1470 Vika
N-0116 Oslo
Norway

Fax:    + 47 22 87 94 10
E-mail:    mail@nordictrustee.com    

[date]

Dear Sirs,

GOLAR LNG PARTNERS LP BOND AGREEMENT 2017/2021 - ISIN 001 0786056

We refer to the Bond Agreement for the above mentioned Bond Issue made between Nordic Trustee ASA as Bond Trustee on behalf of the Bondholders, and the undersigned as Issuer under which a Compliance Certificate shall be issued. This letter constitutes the Compliance Certificate for the period [PERIOD].

Capitalised words and expressions are used herein as defined in the Bond Agreement.

With reference to Clause 13.2.3 we hereby certify that:

		
	1.
	all information contained herein is true and accurate and there has been no change which would have a Material Adverse Effect since the date of the last accounts or the last Compliance Certificate submitted to you.the covenants set out in Clause 13 are satisfied;  

		
	2.
	in accordance with Clause 13.5 (a), the Free Liquidity is XX

		
	3.
	in accordance with Clause 13.5 (b), the EBITDA to Debt Service ratio is XX

		
	4.
	in accordance with Clause 13.5 (c), the Net Debt to EBITDA ratio is XX

Copies of our latest consolidated [annual audited/quarterly unaudited] accounts are enclosed.

Yours faithfully,

Golar LNG Partners LP

___________________
Name of authorized person

Enclosure: [copy of any written documentation]

39Blueprint

 

 Exhibit
4.6

 

AutoChina International Limited

 

Executive Employment Agreement

 

This
EXECUTIVE EMPLOYMENT AGREEMENT (the "Agreement"), entered into as of
May 9, 2015, by and between AutoChina International Limited, a
company organized under the laws of the Cayman Islands (the
"Company") and Lei
Chen (the "Executive") (collectively, the
"Parties").

 

RECITALS

 

 

A.           The
Company desires to employ the Executive as its Senior Vice
President and to assure itself of the services of the Executive for
the Period of Employment (as defined below).

 

B.           The
Executive desires to be employed by the Company as its Senior Vice
President for the Period of Employment and upon the terms and
conditions of this Agreement.

 

 

AGREEMENT

 

 

ACCORDINGLY, the
Parties agree as follows:

 

1.           Term
of Employment. The Company shall employ the Executive to
render services to the Company in the position and with the duties
and responsibilities described in Section 2 for a period of
three (3) years starting from the date of this Agreement (the
"Period of
Employment"), unless the Period of Employment is terminated
sooner in accordance with Sections 4 or 5 below or extended
upon mutual agreement of the Parties.

 

 

2.           Position,
Duties, Responsibilities.

 

2.1           Position.
The Executive shall render services to
the Company in the position of Senior Vice President and shall
perform all services appropriate to that position as well as such
other services as may reasonably be assigned by the Company,
including serving as the Senior Vice President of
Hebei Chuanglian Finance Leasing Co.,
Ltd.
(河北创联融资租赁有限公司),
an indirectly wholly-owned subsidiary of the Company established in
the People's Republic of China (the "PRC") ("Chuanglian")
and any other direct or indirect subsidiary of the Company. The
Executive's principal place of employment shall be at any location
decided by the board of directors of the Company. The Executive
shall devote his best efforts and full-time attention to the
performance of his duties. The Executive shall report to
the board of directors of the
Company.

 

2.2           Other
Activities. Except upon the
prior written consent of the board of directors of the Company, the
Executive shall not (i) accept any other employment (except
for academic employment, position in industrial or professional
associations, non-executive director of other companies which do
not compete with the Company's business provided that such other
companies purchase director liability insurance), (ii) engage,
invest or assist, directly or indirectly, in any other business
activity (whether or not pursued for pecuniary advantage)
that is or may be in conflict with, or that might place the
Executive in a conflicting position to that of the Company or (iii)
act as the legal representative or an executive officer of another
company (excluding any affiliates of the Company) within or outside
the PRC.

 

 

1

 

 

2.3           Execution
of Chuanglian Employment Agreement. The Executive shall upon request of the Company
execute an employment agreement with Chuanglian or any other direct
or indirect subsidiary of the Company (in each case, a
"Subsidiary Employment
Agreement") in accordance with
PRC laws and regulations, in the form substantially identical to
this Agreement except for adjustments or alterations required to
comply with the relevant laws and regulations of the
PRC.

 

3.           Compensation
and Holiday. In consideration of the services to be rendered
under this Agreement, the Executive shall be entitled to the
following:

 

3.1           Base
Salary. The Company and the
Executive shall agree to a "Base
Salary," subject to adjustment
in accordance with Section 3.2 below. The Base Salary shall be paid
in accordance with the Company's regularly established payroll
practices.

 

3.2           Salary
Adjustment. The Executive's
Base Salary will be reviewed from time to time in accordance with
the established procedures of the Company for adjusting salaries
for similarly situated employees and may be adjusted in the sole
discretion of the Company.

 

3.3           Benefits.
The Executive shall be eligible to participate in the benefits made
generally available by the Company to similarly-situated
executives, in accordance with the benefit plans established by the
Company (including the Company’s Equity Incentive Plan), and
as may be amended from time to time in the Company's sole
discretion.

 

3.4           Bonus.
The Executive shall not be entitled to any bonus unless otherwise
approved by the board of directors of the Company in its sole
discretion.

 

3.5           Holidays.
The Executive shall be entitled, in addition to applicable
statutory public holidays, to take (14) working days as paid
holiday in each full calendar year. If the Executive's employment
commences or terminates part way through a calendar year, his
entitlement to holidays will be assessed on a pro-rata basis in
accordance with the Company's holiday policy, as it may change from
time to time.

 

3.6           Insurance.
The Company shall purchase life insurance and medical insurance for
the Executive pursuant to applicable standards.

 

3.7           Others.
The salary and welfare provided respectively in the Subsidiary
Employment Agreements and this Agreement shall not be cumulative.
If there is any discrepancy between the above provisions in Article
3 herein and the salary and other welfare provided in the
Subsidiary Employment Agreements, the Executive shall, in addition
to the salary and welfare provided in the Subsidiary Employment
Agreements, be entitled to the additional amount of the salary and
welfare (if any) provided in this Agreement only to the extent it
exceeds those provided in the Subsidiary Employment
Agreements.

 

 

2

 

 

4.           Termination
By Company.

 

4.1           Termination for
Cause. For purposes of this Agreement, "For Cause" shall mean the
occurrence of any of the following, subject only to any statutory
requirement of any applicable law: (i) the failure of the Executive
to properly carry out his duties after notice by the Company of the
failure to do so and a reasonable opportunity for the Executive to
correct the same within a reasonable period specified by the
Company; (ii) any breach by the Executive of one or more provisions
of any written agreement with, or written policies of, the Company
or his fiduciary duties to the Company likely to cause material
harm to the Company and its affiliates, at the Company's reasonable
discretion, or (iii) any theft, fraud, dishonesty or serious
misconduct by the Executive involving his duties or the property,
business, reputation or affairs of the Company and its affiliates.
The Company may terminate the Executive's employment For Cause at
any time, without any advance notice or payment in lieu of notice.
The Company shall pay to the Executive all compensation prescribed
under Section 3 hereof to which the Executive is entitled up
through the date of termination, subject to any other rights or
remedies of the Company under law, and thereafter all obligations
of the Company under this Agreement shall cease.

 

4.2           By
Death. The Executive's employment shall terminate
automatically upon the Executive's death. The Company shall pay to
the Executive's beneficiaries or estate, as appropriate, any
compensation then due and owing under Section 3 hereof to which the
Executive is entitled up through the date of termination, subject
to any other rights or remedies of the Company under law, and
thereafter all obligations of the Company under this Agreement
shall cease. Nothing in this section shall affect any entitlement
of the Executive's heirs or devisees to the benefits of any life
insurance plan or other applicable benefits, if any. If the
Executive dies during the course of or in connection with the
performance of his duty, subject to applicable laws, the Company
shall pay to the Executive's beneficiaries or estate, as
appropriate, a special compensation not exceeding the annual Base
Salary as provided in Article 3.1 above, as decided by the board of
directors of the Company.

 

4.3           By Disability.
If the Executive becomes eligible for the Company's long-term
disability benefits or if, in the sole opinion of the Company, the
Executive is unable to carry out the responsibilities and functions
of the position held by the Executive by reason of any physical or
mental impairment for more than ninety (90) consecutive days or
more than one hundred twenty (120) days in any twelve-month period,
then, to the extent permitted by law, the Company may terminate the
Executive's employment. The Company shall pay to the Executive all
compensation prescribed under Section 3 hereof to which the
Executive is entitled up through the date of termination, and
thereafter all obligations of the Company under this Agreement
shall cease. Nothing in this section shall affect the Executive's
rights under any disability plan in which the Executive is a
participant, if any.

 

4.4           Other
Termination by Company. In addition to Sections 4.1 through
4.3, the Company may at any time terminate the employment of the
Executive without cause by giving one (1) month written notice to
the Executive, in which case the Executive will be eligible to
receive an amount equal to three (3) months of the then-current
Base Salary of the Executive payable in the form of salary
continuation. Such severance shall be reduced by any remuneration
paid to the Executive because of the Executive's employment or
self-employment during the severance period, and the Executive
shall promptly report all such remuneration to the Company in
writing. The Executive's eligibility for severance is conditioned
on the Executive having first signed a Termination Certificate in
the form attached as Exhibit A. The Executive shall
not be entitled to any severance payments if the Executive's
employment is terminated For Cause, by death or by disability (as
provided above) or if the Executive's employment is terminated by
the Executive for any reason other than Good Reason, as defined
below.

 

 

3

 

 

5.           Termination
By Executive.

 

5.1           Termination
by Executive other than for Good Reason. The Executive may
terminate employment with the Company at any time for any reason or
no reason at all, upon three (3) months' advance written notice.
During such notice period the Executive shall continue to
diligently perform all of the Executive's duties hereunder. The
Company shall have the option, in its sole discretion, to make the
Executive's termination effective at any time prior to the end of
such notice period as long as the Company pays the Executive all
compensation under Section 3 hereof to which the Executive is
entitled up through the last day of the three (3) months' notice
period. Thereafter all obligations of the Company shall cease.
Unless the Executive terminates his employment for Good Reason, as
provided in Section 5.2, no severance or other separation benefits
shall be paid to the Executive.

 

5.2           Termination
for Good Reason
After Change in Control. The Executive's termination shall
be for Good Reason (as defined below) if the Executive provides
written notice to the Company of the Good Reason within three (3)
months of the event constituting Good Reason and provides the
Company with a period of twenty (20) days to cure the Good Reason
and the Company fails to cure the Good Reason within that period.
For purposes of this Agreement, "Good Reason" shall mean a
material reduction in the Executive's Base Salary, except for
reductions that are comparable to reductions generally applicable
to similarly situated executives of the Company if (i) such
reduction is effected by the Company without the consent of the
Executive and (ii)
such event occurs within three (3) months after a Change in Control
(as hereinafter defined). For purposes of this Agreement, a
"Change in Control"
of the Company shall be deemed to have occurred when: (i) the
shareholders of the Company approve a merger or consolidation of
the Company with any other corporation, other than a merger or
consolidation which would result in the shareholders of the Company
immediately prior thereto holding fifty percent (50%) or more of
the outstanding voting securities of the Company or the surviving
entity immediately after such merger or consolidation; or
(ii) the shareholders of the Company
approve either a plan of liquidation or dissolution of the Company
or an agreement for the sale, lease, exchange or other transfer or
disposition by the Company of fifty-percent (50%) or more of the
Company's assets. If the Executive terminates his employment
for Good Reason, the Executive will be eligible to receive an
amount equal to one (1) month of the Executive's then-current Base
Salary payable in the form of salary continuation. Thereafter all
obligations of the Company or its successor under this Agreement
shall cease. Any severance shall be reduced by any remuneration
paid to the Executive because of the Executive's employment or
self-employment during the severance period, and the Executive
shall promptly report all such remuneration to the Company or its
successor in writing. The Executive's eligibility for severance is
conditioned on the Executive having first signed a Termination
Certificate in the form attached as Exhibit A.

 

6.           Termination
Obligations.

 

The
Executive agrees that on or before termination of employment, he
will promptly return to the Company all documents and materials of
any nature pertaining to his work with the Company, including all
originals and copies of all or any part of any Proprietary
Information or Inventions (as defined below) along with any and all
equipment and other tangible and intangible property of the
Company. The Executive agrees not to
retain any documents or materials or copies thereof containing any
Proprietary Information or Inventions.

 

 

4

 

 

The
Executive further agrees that: (i) all representations,
warranties, and obligations under Articles 6, 7, 8, 10, 11, 12,
14.1, 14.2 and 14.3 contained in this Agreement shall survive the
termination of the Period of Employment; (ii) the Executive's
representations, warranties and obligations under Articles 6, 7, 8,
10, 11, 12, 14.1, 14.2 and 14.3 shall also survive the expiration
of this Agreement; and (iii) following any termination of the
Period of Employment, the Executive shall fully cooperate with the
Company in all matters relating to his continuing obligations under
this Agreement, including but not limited to the winding up of
pending work on behalf of the Company, the orderly transfer of work
to the other employees of the Company, and the defense of any
action brought by any third party against the Company that relates
in any way to the Executive's acts or omissions while employed by
the Company. The Executive also agrees to sign and deliver the
Termination Certificate attached hereto as Exhibit A prior to his
termination of employment with the Company.

 

7.           Post-Termination
Activity.

 

7.1           No
Use of Proprietary Information. The Executive acknowledges
that the pursuit of the activities forbidden by this subsection
would necessarily involve the use or disclosure of Proprietary
Information in breach of this Agreement, but that proof of such a
breach would be extremely difficult. To forestall such disclosure,
use, and breach, and in consideration of the employment under this
Agreement, the Executive also agrees that while employed by the
Company, and for a period of one (1) year after termination of the
Executive's employment, the Executive shall not, directly or
indirectly:

 

(i)           divert
or attempt to divert from the Company or any Affiliate
("Affiliate" shall
mean any person or entity that directly, or indirectly through one
or more intermediaries, controls, or is controlled by, or is under
common control with such entity). For the purposes of this
definition "control" means the possession,
directly or indirectly, of the power to direct or cause the
direction of the management and policies of a person, whether
through the ownership of voting securities, by contract or
otherwise, and includes (x) ownership directly or indirectly of 50%
or more of the shares in issue or other equity interests of such
person, (y) possession directly or indirectly of 50% or more of the
voting power of such person or (z) the power directly or indirectly
to appoint a majority of the members of the board of directors or
similar governing body of such person, and the terms "controlling" and "controlled" have meanings
correlative to the foregoing) any business of any kind in which it
is engaged, including, without limitation, soliciting business from
or performing services for, any persons, company or other entity
which at any time during the Executive's employment by the Company
is a client, supplier, or customer of the Company or prospective
client, supplier, or customer of the Company if such business or
services are of the same general character as those engaged in or
performed by the Company;

 

 

5

 

 

(ii)           solicit
or otherwise induce any person to terminate his employment or
consulting relationship with the Company or any Affiliate;
and

 

(iii)           engage,
invest or assist in any business activity that directly or
indirectly competes with any business plan of the Company or any
Affiliate.

 

In
addition, because the Executive acknowledges the difficulty of
establishing when any intellectual property, invention, or
proprietary information is first conceived or developed by the
Executive, or whether it results from access to Proprietary
Information or the Company equipment, supplies, facilities, or
data, the Executive agrees that any intellectual property,
invention, or proprietary information shall be reported to the
Company and, unless proven otherwise to the reasonable satisfaction
of the Company, shall be presumed to be an Invention for the
purpose of this Agreement and shall be subject to all terms and
conditions hereof, if reduced to practice by the Executive or with
the aid of the Executive within one (1) year after termination of
the Period of Employment.

 

7.2           No
Competition. Notwithstanding Section 7.1 above, while
employed by the Company and for a period equal to the greater of
one (1) year after the termination of the Executive's employment
with the Company for any reason whatsoever, the Executive shall
not, directly or indirectly, as an executive, employer, employee,
consultant, agent, principal, partner, manager, stockholder,
officer, director, or in any other individual or representative
capacity, engage or participate in any business within the PRC
and/or Hong Kong that is competitive with the business of the
Company or any Affiliate. Notwithstanding the foregoing, the
Executive may own less than one percent (1%) of any class of stock
or security of any corporation listed on an internationally
recognized securities exchange which competes with the
Company.

 

7.3           Enforceability.
The covenants of this Article 7 are several and separate, and the
unenforceability of any specific covenant shall not affect the
provisions of any other covenant. If any provision of this
Article 7 relating to the time period or geographic area of
the restrictive covenants shall be declared by a court of competent
jurisdiction to exceed the maximum time period or geographic area,
as applicable, that such court deems reasonable and enforceable,
then this Agreement shall automatically be considered to have been
amended and revised to reflect the maximum time period or
geographic area that such court deems enforceable.

 

7.4           Independent
Covenants. All of the covenants in this Article 7 shall
be construed as an agreement independent of any other provision in
this Agreement, and the existence of any claim or cause of action
of the Executive against the Company or any of its Affiliates,
whether predicated on this Agreement or otherwise, shall not
constitute a defense to the enforcement by the Company of such
covenants.

 

8.           Proprietary
Information.

 

The
Executive agrees during his employment with the Company and within
three (3) years thereafter, to hold in strictest confidence and
trust, and not to use or disclose to any person, firm or
corporation any Proprietary Information without the prior written
consent of the Company, except as necessary in carrying out his
duties as an employee of the Company for the benefit of the
Company. "Proprietary
Information" means any information of a proprietary,
confidential or secret nature that may be disclosed to the
Executive that relates to the business of the Company or of any
parent, subsidiary, Affiliate, customer or supplier of the Company
or any other party with whom the Company agrees to hold information
of such party in confidence ("Relevant Parties"). Such
Proprietary Information includes, but is not limited to, Inventions
(as defined below), research, product plans, products, services,
business strategies, personnel information, customer lists,
customers, markets, technical information, forecasts, marketing,
finances or other business information of the Company and its
Affiliates. This information shall remain confidential whether it
was disclosed to the Executive either directly or indirectly in
writing, orally or by drawings or observation. The Executive
understands that Proprietary Information does not include any of
the foregoing items which has become publicly known and made
generally available through no wrongful act of the Executive or
others who were under confidentiality obligations as to the items
involved.

 

 

6

 

 

9.           Former
Employer Information.

 

The
Executive agrees that he will not, during his employment with the
Company, improperly use or disclose any proprietary information or
trade secrets, or bring onto the premises of the Company any
unpublished document or proprietary information belonging to any
former or concurrent employer or other person or entity (excluding
Chuanglian and any other direct or indirect subsidiary of the
Company).

 

10.           Third
Party Information.

 

The
Executive recognizes that the Company has received and in the
future will receive confidential or proprietary information from
third parties. The Executive agrees to hold all such confidential
or proprietary information in the strictest confidence and trust,
and not to disclose it to any person, firm or corporation or to use
it except as necessary in carrying out his work for the Company
consistent with the Company's agreement with such third
party.

 

11.           No
Conflict.

 

The
Executive represents and warrants that the Executive's execution of
this Agreement, his employment with the Company, and the
performance of his proposed duties under this Agreement shall not
violate any obligations he may have to any former employer or other
party, including any obligations with respect to proprietary or
confidential information or intellectual property rights of such
party.

 

12.           Inventions.

 

12.1           Inventions
Retained and Licensed. The Executive has attached, as
Exhibit C, a list
describing all inventions, original works of authorship,
developments, improvements, and trade secrets which were made by
the Executive prior to the Executive's employment with the Company
("Prior
Inventions"), which belong to the Executive, and which
relate to the Company's actual and/or proposed business, products
or research and development. If, in the course of his employment
with the Company, the Executive incorporates into a Company
product, process or machine a Prior Invention owned by the
Executive or in which the Executive has an interest, the Company is
hereby granted and shall have a non-exclusive, royalty-free,
irrevocable, perpetual, worldwide license to make, have made,
modify, use and sell such Prior Invention as part of or in
connection with such product, process or machine.

 

 

7

 

 

12.2           Assignment
of Inventions. The Executive agrees that he will promptly
make full written disclosure to the Company, will hold in trust for
the sole right and benefit of the Company, and hereby irrevocably
assign to the Company, or its designee, all the Executive's right,
title, and interest in and to any and all inventions, original
works of authorship, developments, concepts, improvements, designs,
drawings, discoveries, ideas, formulas, processes, compositions of
matter, software, databases, mask works, computer programs
(including all source codes) and related documentation, algorithms,
engineering and reverse engineering, technology, hardware
configuration information, logos, trade names, trademarks, patents,
patent applications, copyrights, trade secrets or know-how, which
the Executive may solely or jointly conceive or develop or reduce
to practice, or cause to be conceived or developed or reduced to
practice ("Inventions"), while the
Executive is employed by the Company. The Executive further
acknowledges that all original works of authorship which are made
by the Executive (solely or jointly with others) within the scope
of and during his employment with the Company and which are
protectible by copyright are "works made for hire," as that
term is defined in the United States Copyright Act and that the
Company will be considered the author and owner of such works. The
Executive understands and agrees that the decision whether or not
to commercialize or market any Invention developed by the Executive
solely or jointly with others is within the Company's sole
discretion and for the Company's sole benefit and that no royalty
will be due to the Executive as a result of the Company's efforts
to commercialize or market any such Invention.

 

12.3           Waiver
of Moral Rights. To the utmost extent legally permitted, the
Executive also hereby forever waives and agrees never to assert any
and all Moral Rights (as defined below) he may have in or with
respect to any Invention, even after termination of his work on
behalf of the Company. "Moral Rights"
mean any rights to claim authorship of an Invention to object to or
prevent the modification of any Invention, or to withdraw from
circulation or control the publication or distribution of any
Invention, and any similar right, existing under judicial or
statutory law of any country in the world, or under any treaty,
regardless of whether or not such right is denominated or generally
referred to as a "moral
right."

 

12.4           Maintenance
of Records. The Executive agrees to keep and maintain
adequate and current written records of all Inventions made by the
Executive (solely or jointly with others) during the Executive's
employment with the Company. The records will be in the form of
notes, sketches, drawings, and any other format that may be
specified by the Company. The records will be provided to, and
remain the sole property of, the Company at all times.

 

12.5           Patent
and Copyright Registrations. The Executive agrees to assist
the Company, or its designee, at the Company's expense, in every
proper way, to secure the Company's rights in the Inventions and
any copyrights, patents, mask work rights, trade secret rights or
other intellectual property rights relating thereto in any and all
countries. The Executive will disclose to the Company all pertinent
information and data which the Company deems necessary for the
execution of all applications, specifications, oaths, assignments
and execute all instruments necessary to apply for and obtain such
rights and in order to assign and convey to the Company, its
successors, assigns, and nominees, the sole and exclusive right,
title and interest in and to such Inventions, and any copyrights,
patents, mask work rights, or other intellectual property rights
relating thereto. The Executive further agrees that the Executive's
obligation to execute or cause to be executed, when it is in the
Executive power to do so, any such instrument or papers shall
continue after the termination of this Agreement. If the Company is
unable, because of the Executive's mental or physical incapacity or
for any other reason, to secure his signature to apply for or to
pursue any application for any patents or copyright registrations
covering the Inventions assigned to the Company as above, then the
Executive hereby irrevocably designates and appoints the Company
and its duly authorized officers and agents as his agent and
attorney in fact, to act for and in the Executive's behalf and
stead to execute and file any such applications and to do all other
lawfully permitted acts to further the prosecution and issuance of
letters, patent or copyright registrations thereon with the same
legal force and effect as if executed by the
Executive.

 

 

8

 

 

13.           Alternative
Dispute Resolution.

 

The
Company and Executive mutually agree that any controversy or claim
arising out of or relating to this Agreement or the breach thereof,
or any other dispute between the parties, shall be submitted to
mediation before a mutually agreeable mediator, which cost is to be
borne equally by the parties hereto. In the event the Parties fail
to agree on a mediator, or mediation is unsuccessful in resolving
the claim or controversy within one (1) month after the
commencement of mediation, such claim or controversy shall be
resolved by arbitration in Hong Kong under the auspices of the Hong
Kong International Arbitration Centre.

 

14.           Miscellaneous.

 

14.1           Continuing
Obligations. The obligations in
this Agreement will continue in the event that the Executive is
hired, renders services to or for the benefit of or is otherwise
retained at any time by any present or future Affiliates of the
Company. Any reference to the Company in this Agreement will
include such Affiliates. Upon the expiration or termination for any
reason whatsoever of this Agreement, the Executive shall forthwith
resign from any employment of office with an Affiliate of the
Company unless the board of directors of the Company requests
otherwise.

 

14.2           Notification.
The Executive hereby authorizes the Company to notify his actual or
future employers of the terms of this Agreement and his
responsibilities hereunder.

 

14.3           Name and
Likeness Rights. The Executive
hereby authorizes the Company to use, reuse, and to grant others
the right to use and reuse, his name, photograph, likeness
(including caricature), voice, and biographical information, and
any reproduction or simulation thereof, in any media now known or
hereafter developed (including but not limited to film, video and
digital or other electronic media), both during and after his
employment, for whatever purposes the Company deems
necessary.

 

14.4           Injunctive
Relief. The Executive understands that in the event of a
breach or threatened breach of this Agreement by him, the Company
may suffer irreparable harm and will therefore be entitled to
injunctive relief to enforce this Agreement.

 

 

9

 

 

14.5           Legal
Fees. In any dispute arising
under or in connection with this Agreement, the prevailing party
shall be entitled to recover reasonable attorney's
fees.

 

14.6           Entire
Agreement. This Agreement,
including the exhibits attached hereto, is intended to be the
final, complete, and exclusive statement regarding their subject
matter, except for other agreements specifically referenced herein.
Unless otherwise specifically provided for herein, this Agreement
supersedes all other prior and contemporaneous agreements and
statements pertaining to this subject matter, and may not be
contradicted by evidence of any prior or contemporaneous statements
or agreements. To the extent that the practices, policies, or
procedures of the Company, now or in the future, apply to the
Executive and are inconsistent with the terms of this Agreement,
the provisions of this Agreement shall control.

 

14.7           Amendments,
Renewals and Waivers. This
Agreement may not be modified, amended, renewed or terminated
except by an instrument in writing, signed by the Executive and by
a duly authorized representative of the Company other than the
Executive. No failure to exercise and no delay in exercising any
right, remedy, or power under this Agreement shall operate as a
waiver thereof, nor shall any single or partial exercise of any
right, remedy, or power under this Agreement preclude any other or
further exercise thereof, or the exercise of any other right,
remedy, or power provided herein or by law or in
equity.

 

14.8           Assignment;
Successors and Assigns. The
Executive agrees that he will not assign, sell, transfer, delegate
or otherwise dispose of, whether voluntarily or involuntarily, or
by operation of law, any rights or obligations under this
Agreement, nor shall the Executive's rights be subject to
encumbrance or the claims of creditors. Any purported assignment,
transfer, or delegation shall be null and void. Nothing in this
Agreement shall prevent the consolidation of the Company with, or
its merger into, any other corporation, or the sale by the Company
of all or substantially all of its properties or assets, or the
assignment by the Company of this Agreement and the performance of
its obligations hereunder to any successor in interest. In the
event of a change in ownership or control of the Company, the terms
of this Agreement will remain in effect and shall be binding upon
any successor in interest. Notwithstanding and subject to the
foregoing, this Agreement shall be binding upon and shall inure to
the benefit of the parties and their respective heirs, legal
representatives, successors, and permitted assigns, and shall not
benefit any person or entity other than those enumerated
above.

 

14.9           Notices.
All notices and other communications given or made pursuant hereto
shall be in writing and shall be deemed to have been duly given or
made as of the date delivered or mailed if delivered personally or
by nationally recognized courier or mailed by registered mail
(postage prepaid, return receipt requested) or by telecopy to the
parties at the following addresses (or at such other address for a
party as shall be specified by like notice, except that notices of
changes of address shall be effective upon receipt):

 

To: 
Company

Contact
Address: AutoChina International Limited

27F
Kaiyuan Center

Attention: Senior
Vice President

 

 

10

 

 

To:
Executive

Contact
Address:  AutoChina International Limited

27F
Kaiyuan Center

No.5
East Main Street, Shijiazhuang City

Hebei
Province 050011, People’s Republic of China

Attention: Lei
Chen

 

14.10                      [Reserved.]

 

14.11                      Waiver
of Immunity. To the
extent that any Party (including its assignees of any such rights
or obligations hereunder) may be entitled, in any jurisdiction, to
claim for itself (or himself or herself) or its revenues or assets
or properties, immunity from service of process, suit, the
jurisdiction of any court, an interlocutory order or injunction or
the enforcement of the same against its property in such court,
attachment prior to judgment, attachment in aid of execution of an
arbitral award or judgment (interlocutory or final) or any other
legal process, and to the extent that, in any such jurisdiction
there may be attributed such immunity (whether claimed or not),
such Party hereby irrevocably waive such immunity.

 

14.12                      Severability;
Enforcement. If any provision
of this Agreement, or its application to any person, place, or
circumstance, is held by an arbitrator or a court of competent
jurisdiction to be invalid, unenforceable, or void, such provision
shall be enforced (by blue-penciling or otherwise) to the maximum
extent permissible under applicable law, and the remainder of this
Agreement and such provision as applied to other persons, places,
and circumstances shall remain in full force and
effect.

 

14.13                      Governing
Law. This Agreement shall in all respects be construed and
enforced in accordance with and governed by the laws of Hong
Kong.

 

14.14                      Interpretation.
This Agreement shall be construed as a whole, according to its fair
meaning, and not in favor of or against any party. Sections and
section headings contained in this Agreement are for reference
purposes only, and shall not affect in any manner the meaning or
interpretation of this Agreement. Whenever the context requires,
references to the singular shall include the plural and the plural
the singular. References to one gender include both
genders.

 

14.15                      Obligations
Survive Termination of Employment. The Executive agrees that
any and all of the Executive's obligations under this Agreement
capable of execution after the termination of the Executive
employment, including but not limited to those contained in
exhibits attached hereto, shall survive the termination of
employment and the termination of this Agreement.

 

14.16                      Counterparts.
This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original of this Agreement, but all of
which together shall constitute one and the same
instrument.

 

 

11

 

 

EXECUTIVE
ACKNOWLEDGEMENT. The Executive acknowledges (i) that he has
consulted with or has had the opportunity to consult with
independent counsel of his own choice concerning this Agreement and
has been advised to do so by the Company, and (ii) that he has read
and understands the Agreement, is fully aware of its legal effect,
and has entered into it freely based on his own judgment. The
Executive hereby agrees that his obligations set forth in Sections
7, 8, and 9 hereof and the definitions of Proprietary Information
and Inventions contained therein shall be equally applicable to
Proprietary Information and Inventions relating to any work
performed by the Executive for the Company prior to the execution
of this Agreement.

 

The
parties have duly executed this Agreement as of the date first
written above.

 

 

EXECUTIVE:

 

 

 

Name:

 

 

COMPANY:

 

AUTOCHINA
INTERNATIONAL LIMITED

 

 

By:                                                                 

Name:
James Sha

Title:
Director

 

 

 

12

 

EXHIBIT A

 

TERMINATION CERTIFICATE

 

This is to certify that I have returned all
personal property of AutoChina International Limited (the
"Company")
and the Relevant Parties, including, without limitation, all books,
manuals, records, models, drawings, reports, notes, contracts,
lists, blueprints, and other documents and materials, electronic
data recorded or retrieved by any means, Proprietary Information,
and equipment furnished to or prepared by me in the course of or
incident to my employment with the Company, and that I did not make
or distribute any copies of the foregoing.

 

I further certify that I have reviewed the
Executive Employment Agreement (the "Agreement")
signed by me and that I have complied with and will continue to
comply with all of its terms, including, without limitation,
(i) the reporting of any Inventions or any improvement,
rights, or claims related to the foregoing, conceived or developed
by me and covered by the Agreement; (ii) the preservation as
confidential of all Proprietary Information pertaining to the
Company and the Relevant Parties; (iii) not participating in any
business competitive with the business of the Company; (iv) not
acting as the legal representative or an executive officer of any
other company within and outside the People’s Republic of
China, and (v) the reporting of any remuneration paid to me due to
any employment or self-employment during the severance period, if
any. This certificate in no way limits my responsibilities or the
Company's rights under the Agreement.

 

On termination of my employment with the Company,
I will be employed by [name of new employer]
in the [division name]
division and I will be working in
connection with the following projects:

[generally describe the projects]

 

 

 

 

 

 

 

Date:                                                                           

Print
Executive's Name

 

 

 

 

Executive's
Signature

 

 

13

 

 

 

EXHIBIT C

 

LIST OF PRIOR INVENTIONS

 

AND ORIGINAL WORKS OF AUTHORSHIP

 

 

 

Title Date Identifying
Number or Brief Description

 

 

 

____________                                 

No inventions or improvements

____________                                 

Additional
Sheets Attached

 

Signature of
Executive:                                                                                      

Printed Name of Executive:
                                                                                      

Date:                                            

 

 

 

 

 

 

 

 

14

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