Document:

Amendment to Strategic Alliance Agreement

 

This Amendment (“Amendment”)
to Strategic Alliance Agreement dated 10th June, 2013 (“Agreement”) by and between AIA International Limited
Taiwan Branch (“AIATW”), and Action Holdings Financial Limited (“Action”) is made and effective as of the
30 day of September, 2014 (the “Effective Date”) by and between AIATW and Action.

 

WHEREAS:

A.AIATW and Action have entered into
the Agreement for the purpose of promotion of life insurance business provided by AIATW in the territory of Taiwan; and

B.This Amendment is made by mutual
consent of the parties to amend the Agreement as set forth hereinafter.

 

NOW, THEREFORE, for good and sufficient
consideration, AIATW and Action agree as follows:

 

		1.	Section 3 of the Agreement shall be hereby deleted in its entirety and replaced by the term set
forth herein below:

This Agreement is
effective from June 1, 2013 and to continue in full force and effect until December 31, 2020.

 

		2.	Section 6.1 of the Agreement shall be amended as follows:

The amount of AFYP, calculated
based on the recognized portion, for each contract year of the new insurance contract negotiated by Appointed Broker/Agent and
underwritten by AIATW according to Article 2 shall meet the sales targets as below.

	Contract Year	Sales Target
	First Year

(Aug. 1st, 2013- Dec. 31st,2014)	NT 350,000,000
	Second Year

(Jan. 1st, 2015- Dec. 31st,2015)	NT 400,000,000
	Third Year

(Jan. 1st, 2016- Dec. 31st,2016)	NT 450,000,000

 

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	Contract Year	Sales Target
	Fourth Year

(Jan. 1st, 2017- Dec. 31st,2017)	NT 550,000,000
	Fifth Year

(Jan. 1st, 2018- Dec. 31st,2018)	NT 650,000,000
	
        Sixth Year

        (Jan.
        1st, 2019- Dec. 31st,2019)
	NT 750,000,000
	
        Seventh Year

        (Jan.
        1st, 2020- Dec. 31st,2020)
	NT 850,000,000

 

 

		3.	Section 7.2 and 7.3 of the Agreement shall be amended to read as follows:

7.2 The formula for calculating
the returned Execution Fees to AIATW pursuant to Article 7.1 is agreed as follows:

(i) First Year

A. "Annual Target Achievement
Rate" is 49% -0%. Action shall return NT 40 million to AIATW.

B. "Annual Target Achievement
Rate" is 99% -50%. Action shall return certain amount to AIATW by the following formula: NT 40 million x (1 - Target Achievement
Rate) (rounded to the nearest whole number; same as below)

C. The formula for calculating
"Annual Target Achievement Rate" is:

AFYP of first
year/Sale Target of first year

 

(ii) Second Year to Seventh
year

From the end of the second contract
year, AIATW will calculate and recognize the accumulated AFYP of the insurance contracts negotiated by each Appointed Broker/Agent
and agreed by AIATW every year from the first contract year to the end of the current year (hereinafter referred to as "Cumulative
Year") and calculate "Accumulated Annual Target Achievement Rate" as accumulated AFYP/accumulated Sales Target:

		A.	"Accumulated Annual Target Achievement Rate" is 49% -0%. Action shall return certain
amount to AIATW by the following formula: NT 5 million + (NT 35 million x cumulative number of years) – the Execution Fees
shall be returned to AIATW pursuant to Article 7.2 (i) A and B.

		B.	"Accumulated Annual Target Achievement Rate" is 99% -50%. Action shall return certain
amount to AIATW by the following formula: NT 5 million + (NT 35 million x cumulative number of years) x (1 - cumulative performance
target achievement rate) - the Execution Fees shall be returned to AIATW pursuant to Article 7.2 (i) A and B. In case the value
calculated as described above is less than zero, AIATW shall compensate Action the difference.

 

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		C.	"Accumulated Annual Target Achievement Rate" is over 100%. AIATW shall pay back the returned
Execution Fees which has be returned to AIATW pursuant to Article 7.2 (i) A and B.

 

7.3 In the event at Action fails
to meet the 13-Month Persistency Ratio (P) Indicators set forth in Article 7.1, the returned Execution Fees shall be calculated
as NT 35.7 million x ratio (%) of returned Execution Fees. The aforementioned ratio (%) of returned Execution Fees is agreed as
the following table:

 

	13-Month Persistency Ratio (P) Indicators	Ratio of returned Execution Fees (%)
	P >= 80%	0%
	70% <= P < 80%	10%
	60% <= P < 70%	20%
	P < 60%	30%

 

		4.	It is agreed by the parties to add the following section into the Agreement.

CUIS acquired all of the issued
and outstanding shares (100% of voting equity interest) of Action together with its subsidiaries in Taiwan. Action, on April 30,
2012, acquired 65.95% ownership of Law Enterprise Co., Ltd. (“Law Enterprise”), a company held 100% of Law Insurance
Broker Co., Ltd. (“Law Broker”). In the event that Action transfers above 30% of its shares or any sales, pledge or
transferring above 30% of its holdings shares of Law Broker, AIATW may terminate this Agreement. Upon the termination of this Agreement
due to this Section, both parties agree to recalculate the Execution Fees according to Section 8.3.

 

		5.	Except as expressly stated herein, all other terms, conditions and attachments of the Agreement
shall remain in full force and effect.

 

		6.	All initial capitalized terms used in this Amendment shall have the same meaning as set forth in
the Agreement unless otherwise provided.

 

		7.	The terms and conditions herein contained constitute the entire agreement between the parties with
respect to the subject matter hereof. This Amendment shall be deemed part of the Agreement and is incorporated therein and made
a part thereof by this reference, but shall take precedence over and supersede any provisions to the contrary contained in the
Agreement.

 

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		8.	This Amendment shall be executed in two identical counterparts, each of which shall be an original
and all of which shall together constitute one and the same instrument.

 

IN WITNESS WHEREOF, the parties, being
duly authorized to do so, have executed this Amendment as of the date set forth above.

 

AIA International Limited Taiwan Branch

By:Tan, Kar-Hor

Title: General Manager

VAT number:

Address: 17F., No.333, Sec. 2, Dunhua S. Rd., Da’an Dist.,
Taipei City 106, Taiwan (R.O.C.)

 

Action Holdings Financial Limited

By: Mao, Yi-Hsio

Address: 7F., No.311, Sec. 3, Nanjing E. Rd., Songshan Dist.,
Taipei City 105, Taiwan (R.O.C.)

Tel:02-25455970

 

    	4Ex 10.1 Third Amend. Exp Support

THIRD AMENDMENT TO
EXPENSE SUPPORT AND CONDITIONAL REIMBURSEMENT AGREEMENT

This Third Amendment to Expense Support and Conditional Reimbursement Agreement (the “Third Amendment”) is made as of September 30, 2014 by and between HMS Income Fund, Inc. (the “Company”) and HMS Adviser LP (the “Adviser”).

WHEREAS, the Company and the Adviser entered into that certain Expense Support and Conditional Reimbursement Agreement dated as of December 30, 2013 (as amended from time to time, the “Expense Support Agreement”), and that certain Amendment to Expense Support and Conditional Reimbursement Agreement dated as of March 31, 2014, and that certain Second Amendment to the Expense Support and Conditional Reimbursement Agreement dated as of June 30, 2014, pursuant to which, among other things, the Adviser, at its sole discretion and in consultation with the Company, agreed to pay to the Company up to 100% of the Company Operating Expenses (as defined in the Expense Support Agreement)  in order for the Company to achieve a reasonable level of expenses in relation to its investment income until September 30, 2014 (the “Payment Period”);
    
WHEREAS, the Company and the Adviser have determined that it is appropriate and in the best interests of the Company to further amend the Expense Support Agreement as set forth below; 

NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereto agree as follows:

1.     The Expense Support Agreement is hereby amended to change all references to September 30, 2014 in Section 1 hereof to December 31, 2014.  Section 1, as so amended, now reads in its entirety as follows:

		
	1.
	EXPENSE SUPPORT PAYMENTS  

Until December 31, 2014, or a prior date mutually agreed to by both parties, the Adviser, at its sole discretion and in consultation with the Company, hereby agrees to pay to the Company, up to 100% of the Company Operating Expenses in order for the Company to achieve a reasonable level of expenses in relation to its investment income (the “Operating Expense Objective”). Any payment made by the Adviser pursuant to the preceding sentence shall be referred to herein as an “Expense Support Payment.” Upon determination by the Adviser to make any Expense Support Payment, the Adviser shall promptly notify the Company of such Expense Support Payment. The Adviser’s obligation to make Expense Support Payments during the Expense Support Payment period shall automatically become a liability of the Adviser and the right to such Expense Support Payment shall be an asset of the Company upon receipt of notification of the payment from the Adviser. Any Expense Support Payment shall be paid by the Adviser in any combination of cash or other immediately available funds, and/or offset against amounts otherwise due from the Company to the Adviser. 

For purposes of this Agreement, “Company Operating Expenses” means third party operating costs and expenses incurred by the Company between October 1, 2014 and December 31, 2014, as determined under generally accepted accounting principles for investment management companies.

2.    Section 2.1 of the Expense Support Agreement is hereby amended and restated in its entirety as follows: 

2.1 CONDITIONAL REIMBURSEMENT.  Subject to the approval of the Company’s board of directors (the “Board”), the Company hereby agrees to reimburse the Adviser (each, a “Reimbursement Payment”) in an amount, in the aggregate, equal to the unreimbursed Expense Support Payments, or such lesser amount as determined appropriate by the Board, for any calendar quarter in which the Board determines that the Company has achieved the Operating Expense Objective described in Section 1 during such calendar quarter.  Upon determination by the Board to make any Reimbursement Payment, the Company’s obligation to make such Reimbursement Payment shall automatically become a liability of the Company and the right to such Reimbursement Payment shall be an asset of the Adviser upon receipt of notification of the determination of a Reimbursement Payment from the Company.  Any Reimbursement Payment shall be paid by the Company to the Adviser within ninety (90) days following notification of the determination of a Reimbursement Payment.

3.    Section 2.2 of the Expense Support Agreement is hereby deleted in its entirety. 

4.     Section 2.3 of the Expense Support Agreement is hereby re-numbered as Section 2.2 and amended to eliminate references to Mandatory Reimbursement Payments.  Accordingly, Section 2.3 is restated in its entirety as follows: 

2.2 PRIORITY AND TIMING OF PAYMENTS. Any Reimbursement Payment under this Agreement shall be made only after all outstanding Expense Support Payments from the Adviser to the Company under the Expense Support and Conditional Reimbursement Agreement by and between the Company and Adviser dated November 11, 2013 (the “2013 Expense Support Agreement”) have been reimbursed by the Company.  

The repayment of all Expense Support Payments is to be made within a period not to exceed three (3) years from the date each respective Expense Support Payment is determined.  Expense Support Payments which remain unreimbursed three (3) years after payment will be considered permanently waived and no longer eligible for reimbursement by the Company under this Agreement.  

The parties hereto agree that, to the extent that reimbursement of Expense Support Payments are payable in accordance with Section 2.1, such Reimbursement Payments shall have priority over, and shall be made before, any reimbursements of waived base management fees and/or incentive fees under the Advisory Agreements, as waived pursuant to the Conditional Fee Waiver Agreement.  Notwithstanding the foregoing, payment of current base management fees and/or incentive fees under the Advisory Agreements, to the extent that they have not been waived by the Adviser and/or the Sub-Adviser, shall have priority over, and shall be made before, any Reimbursement Payment hereunder.

5.     This Third Amendment constitutes an amendment to the Expense Support Agreement.  The terms and provisions of the Expense Support Agreement and all other documents and instruments relating and pertaining to the Expense Support Agreement shall continue in full force and effect, as amended hereby.  In the event of any conflict between the provisions of the Expense Support Agreement and the provisions of this Third Amendment, the provisions of this Third Amendment shall control.

6.    This Third Amendment (a) shall be binding upon the Company and the Adviser (the “Parties”) and their respective successors and assigns; (b) may be modified or amended only by a writing signed by each of the Parties; (c) may be executed in several counterparts, and each counterpart, when so executed and delivered, shall constitute an original agreement, and all such separate counterparts shall constitute but one and the same agreement; and (d) together with the Expense Support Agreement, embodies the entire agreement and understanding between the Parties with respect to the subject matter hereof and supersedes all prior agreements, consents and understandings relating to such subject matter.

[Signature Page Follows]

[Signature Page to Third Amendment to Expense Support and Conditional Reimbursement Agreement]

IN WITNESS WHEREOF, the Parties have caused this Third Amendment to be signed by their respective officers thereunto duly authorized, as of the day and year first above written.

HMS INCOME FUND, INC.
            
By:  /s/ Ryan T. Sims                      
Name:  Ryan T. Sims
Title:  Chief Financial Officer and Secretary

HMS ADVISER LP

By:  HMS ADVISER GP, its general partner
            
By:  /s/ Ryan T. Sims                      
Name:  Ryan T. Sims
Title:  Chief Financial Officer and Secretary
ACKNOWLEDGEMENT:

The undersigned, MSC Adviser I, LLC, executes this Third Amendment solely for the purpose of evidencing their acknowledgement of its execution.

MSC ADVISER I, LLC
            
By:  /s/ Jason B. Beauvais                
Name:  Jason B. Beauvais
Title:  Senior Vice President

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