Document:

Credit Facilities Agreement dated January 26, 2006

 Exhibit 4.39 
 

 
  

			
	Date:	  	26th January 2006
		
	Our ref:	  	CR/LC/TEAM1/CEB

 CONFIDENTIAL 
 Global Rich
Innovation Ltd. 
 12/F., Kin Teck Industrial building, 
 26 Wong Chuk Hang Road,

 Aberdeen, 
 Hong Kong. 
 Attn. : Mr. John Sham / Mr. Samuel Leung  
 Dear Sirs, 
 BANKING FACILITIES

 Standard Chartered Bank (Hong Kong) Limited 

 (the “Bank”) is pleased to offer the following banking facilities (the “Facilities”) to the Customer(s) below for the purpose of general working capital and trade finance requirement, subject
to the Bank’s Standard Terms and Conditions for Banking Facilities and Services (including the Trade Finance Supplement) and Terms and Conditions for Foreign Exchange Business attached and the terms and conditions set out in this facility
letter. 
  

	A.	CUSTOMER(S): 

 Global Rich Innovation Ltd. 
  

	B.	FACILITY LIMITS: 

 General Banking Facilities 
  

					
	 	 	 
	Type(s) of Facility	 	Facility Limit(s)	 	 Designated Customer(s) and
Sub-limit(s),
 if applicable

	 	 	 
	 1.      Current Account
Overdraft
	 	 HKD3,000,000.-
	 	 •      The
Customer

	 	 	 
	 2.      Corporate Visa
Cards
	 	(HKD580.000.-)	 	 •      The
Customer

	 	 	 
	 3.      Trade Finance 
 (Please refer to Appendix 1 for
 product details.)
	 	HKD6,000,000.-	 	 
	 	 	 
	 (a)    Trade Finance Group All
  
	 	 	 	 •      The Customer (HKD6,000,000.-)
  

 Standard Chartered Bank (Hong Kong) Limited

 
 Wholesale Bank 
 Credit Risk Control 
 11th Floor Standard Chartered Tower

 388 Kwun Tong Road Kwun Tong Hong Kong 
 

 

					
	Global Rich Innovation Ltd.	  	Page 2	 	

  

					
	 (b)    Trade
Finance Group 1
	 	  	  	 •      The Customer (HKD6,000,000.-)

	 	 	 
	 (c)    Trade Finance Group
2
	 	  	  	 •      The Customer
(HKD6,000,000.-)

	 	 
	Total Facility Limit:	 	 HKD9,000,000.-
  

	 
	  
 Notes-
  
 •      The aggregate outstanding of Facilities 1 and 2 shall not at any time exceed
HKD3,000,000.-.
  
 •      The aggregate outstanding of all Sub-limits shall not at any time exceed the Facility Limit of that Facility and the Total Facility Limit.
  

  

	C.	PRICING AND CONDITIONS: 

  

			
	 1.      Current Account Overdraft
	  	Interest: 1% per annum over the higher of Prime or HIBOR, payable monthly
in arrears.
	 	 
	 2.      Corporate Visa
Cards
	  	 Interest: at the
Bank’s prevailing Visa Card rate.
  
 Subject to the terms and conditions stipulated in the
related Corporate Card Agreement executed by the relevant Customer.
  

	 	 
	 3.      Trade Finance
	  	 Interest:
 HKD/foreign currency import/export facilities: 0.25% per annum over the Bank’s standard bills finance rate.
  
 Commission:
 Standard rates unless otherwise stipulated.
  
 Letters of Credit Issuance Commission
 First USD50,000.-             1/4%
 Balance                            1/16%

	 	 
	 	  	 Maximum tenor for:
 Export facilities:        90 days

	 	 
	 	  	 Individual drawee limit on group combined basis not to exceed
HKD10,000,000.- each.
  

  

	D.	SECURITY AND CONDITIONS PRECEDENT: 

 The availability of the Facilities is conditional
upon the Bank’s receipt of the following documents, items and evidence (both in form and substance) satisfactory to the Bank: 
  

	1.	This letter duly executed by the Customer. 

 

 

					
	Global Rich Innovation Ltd.	  	Page 3	 	

  

	2.	A corporate guarantee executed by Global-Tech Appliances Inc. for an unlimited amount. 

  

	3.	Certified true copies of the certificate of incorporation, memorandum and articles of association or equivalent constitutional documents of the Customer. 

  

	4.	Original/Certified copies of all necessary consents, approvals and other authorisations (including board resolutions) in connection with the execution, delivery and performance of this letter
and all other documents mentioned above, if applicable. 

  

	5.	(if any of the facilities referred to in this letter are to be made available by Standard Chartered Bank or other members of the Standard Chartered Group) All such documents, items or
evidence with, in favour of or to Standard Chartered Bank or, as the case may be, such member of the Standard Chartered Group as the Bank may request. 

  

	6.	Such other documents, items or evidence that the Bank may request from time to time. 

  

	E.	COVENANTS AND UNDERTAKINGS: 

 The Customer undertakes
to the Bank that: 
  

	1.	promptly submit to the Bank: 

  

	 	•	 	certified copies of the annual audited financial statements of the Customer within 9 months after their financial year end; 

  

	 	•	 	a certified copy of the annual audited financial statements of Global-Tech Appliances Inc. within 6 months after its financial year end 

  

	 	•	 	a certified copy of the quarterly management accounts of Global-Tech Appliances Inc. within 120 days after the end of the relevant account period; and 

  

	 	•	 	other information that the Bank may request from time to time. 

  

	2.	it will immediately inform the Bank: 

  

	 	•	 	of any change of the Customer’s directors or beneficial shareholders or amendment to its memorandum or articles of association or equivalent constitutional documents;

  

	 	•	 	of any substantial change to the general nature of the Customer’s existing business; or 

  

	 	•	 	if it becomes, or is aware that any of its directors, shareholders, partners or managers becomes, a Related Person (as defined in paragraph 5 of section F of this letter).

  

	F.	OTHER TERMS AND CONDITIONS 

  

	1.	The Facilities are available at the sole discretion of the Bank. The Bank may at any time immediately terminate, cancel or suspend the Facilities or otherwise modify the Facilities without
the consent of any party. 

  

	2.	Notwithstanding any provisions stated in this letter, the Facilities are repayable on demand by the Bank. The Bank has the overriding right at any time to require immediate payment and/or
cash collateralisation of all or any sums actually or contingently owing to it under the Facilities. 

 

 

					
	Global Rich Innovation Ltd.	  	Page 4	 	

  

	3.	The Bank’s Standard Terms and Conditions for Banking Facilities and Services (including the Trade Finance Supplement) (“Standard Terms and Conditions”) and Terms and Conditions
for Foreign Exchange Business attached and/or referred to in this letter forms an integral part of this letter and the Customer agrees to observe and be bound by such Standard Terms and Conditions. 

  

	4.	The terms and conditions set out or referred to in this letter supersede and replace those set out in our letter (if any) previously sent to the Customer(s). 

  

	5.	Please note that section 83 of the Banking Ordinance imposes on the Bank certain limitations on advances to persons (including firms, partnerships and companies) related to its directors,
employees with lending authority or controllers (each person so related shall be referred to as a “Related Person”). When acknowledging and accepting this facility letter, you should advise us if you are, or any of your directors,
shareholders, partners or managers is, a Related Person within the meaning of the Banking Ordinance. If subsequent to your acceptance of this facility letter, you become, or are aware that any of your directors, shareholders, partners or managers is
or becomes, a Related Person, you should immediately advise us in writing. 

  

	6.	This letter shall be governed by and construed in accordance with the laws of Hong Kong SAR. 

 Please sign and return to us the enclosed copy of this letter together with the attached Standard Terms and Conditions for Banking Facilities and Services (including the Trade Finance Supplement) and Terms and Conditions for Foreign
Exchange Business to the Bank’s Credit Risk Control at 11th Floor, Standard Chartered Tower, 388 Kwun Tong Road, Kwun Tong, Kowloon within one month after the date of this letter, failing which this offer shall lapse. 
 If you have any queries, please feel free to contact any of the following persons:- 
  

					
	 	 	 
	 Queries on
  
	  	 Name
  
	  	 Telephone No.
  

	 	 	 
	 Execution of bank documents
	  	Ms. Lilian Cheng, Credit Documentation Manager	  	2282-6422
	 	 	 
	 Banking arrangements
	  	Mr. Monte Wong, Relationship Manager	  	2821-1863

 Yours faithfully, 
 For and on behalf of 
 STANDARD CHARTERED BANK (HONG KONG)
LIMITED

 
  

	
	/s/ Lilian Cheng
	 Lilian Cheng

	 Credit Documentation Manager

 LC/mc 
 Encl. 
 

 

					
	Global Rich Innovation Ltd.	  	Page 5	 	

  

 We agree and accept all the terms and conditions set out above and the Bank’s Standard Terms and Conditions for Banking
Facilities and Services (including the Trade Finance Supplement) and Terms and Conditions for Foreign Exchange Business attached and/or referred to in this letter, which we have read and understood. 
 For and on behalf of 
 GLOBAL RICH INNOVATION LTD.

  

	
	/s/ Kwong Ho Sham

 

 

					
	Global Rich Innovation Ltd.	  	Page 6	 	

  

 Appendix 1 
 TRADE FINANCE FACILITY 
 Trade Finance Group All 
  

	•	 	Negotiation of export credit documents with discrepancies on a with recourse basis. 

 Trade Finance Group 1 
  

	•	 	Purchase of documents against payment bills with title documents on parties acceptable to the Bank on a with recourse basis 

  

	•	 	Purchase of documents against acceptance bills with ECA/approved insurance cover on a with recourse basis 

  

			
	 •      Issuance of import letters of credit
	  	 - sight and usance

		  	 - with title documents

 Trade Finance Group 2 
  

	•	 	Purchase of documents against acceptance bills without ECA/approved insurance cover on a with recourse basis 

  

	•	 	Purchase of documents against payment bills without title documents on parties acceptable to the Bank on a with recourse basis 

  

			
	 •      Issuance of import letters of credit
	  	 - sight and usance

		  	 - without title documents

 

 

 

 
 Standard Terms and Conditions for Banking Facilities and Services - TC2 (04) 
 (For Corporate, Sole Proprietor & Partnership) 
 Any request or
application made by the Customer for the utilisation of the Facilities and/or Services is subject to and on the basis that the Customer has agreed to be bound by the Agreement (as defined below). 
  

	1.	Definitions and Interpretation 

  

	1.1	In the Agreement:- 

 “Agreement” means the Standard Terms and
Conditions for Banking Facilities and Services (including any supplement) 
 (“Standard Terms and Conditions”), any Facility Letter and
any other agreement incorporating the Standard Terms and Conditions; 
 “Assets” includes present and future properties, revenues and
rights of every description; 
 “Bank” means Standard Chartered Bank (Hong Kong) Limited 

 which includes all its branches and offices wherever situated and its successors and assigns; 
 “Customer” means the customer(s) specified in the Facility Letter and, as the case may be, any other person(s) who agree to the Standard Terms and Conditions, and where there is more than one Customer, all references to the
“Customer” shall mean all such persons or any one or more of them; 
 “Exchange Rate” means the rate for converting one
currency into another currency which the Bank determines to be prevailing in the relevant foreign exchange market at the relevant time, such determination to be conclusive and binding on the Customer; 
 “Facilities” means the banking facilities (or any part of it) specified in the Facility Letter; 
 “Facility Letter” means the facility letter(s) (including all its schedules and appendices) issued by the Bank in relation to the Facilities
extended by the Bank to the Customer, and includes references to any accession letter executed by any Customer for acceding to the Facility Letter; 
 “HIBOR” means the Hong Kong Interbank Offered Rate quoted by the Bank for the relevant period; 
 “LIBOR”
means the London Interbank Offered Rate quoted by the Bank for the relevant period; 
 “Prime” means the respective rates which the
Bank announces or applies from time to time as its prime rates for lending Hong Kong Dollars and United States Dollars; 
 “SCB” means
Standard Chartered Bank (including all its branches), and 
 “Services” means any banking services provided by the Bank or SCB to the
Customer. 
  

	1.2	Unless a contrary indication appears, a reference in the Agreement to:- 

  

	 	(a)	a person includes an individual, a company, sole proprietorship, partnership or body unincorporated and its successors and assigns; 

  

	 	(b)	any document includes a reference to that document as amended, varied, supplemented, replaced or restated from time to time; and 

  

	 	(c)	a provision of law is a reference to that provisions as amended or re-enacted. 

  

	1.3	The obligations and liabilities of the Customer to the Bank include all its past, present and future, actual and contingent obligations and liabilities to the Bank, whether incurred alone or
jointly with another. 

  

	1.4	Unless the context otherwise requires, words importing the singular include the plural and vice versa and the neuter gender includes the other genders. 

  

	1.5	The headings in the Agreement are for convenience only and are to be ignored in construing the Agreement. 

  

	2.	Application 

  

	2.1	The Standard Terms and Conditions shall apply to any Facilities and Services which the Bank or SCB, in its sole discretion, may agree to make available and provide to such extent and in such
manner as the Bank thinks fit. 

  

	2.2	The Standard Terms and Conditions shall be subject to such other terms and conditions which may be specified by the Bank and/or SCB from time to time in other documents, agreements or
applications. 

  

	2.3	In the event of any conflict or inconsistency between the Standard Terms and Conditions and the provisions of any agreement between the Customer and the Bank, the latter shall prevail.

  

	3.	Payments 

  

	3.1	All payments by the Customer to the Bank shall be made without any set-off, counterclaim, deduction, withholding or condition of any kind. If the Customer is compelled by law to make any
withholding, or deduction, the sum payable by the Customer shall be increased so that the amount actually received by the Bank is the amount it would have received if there had been no such withholding or deduction. 

  

	3.2	Payment by the Customer to the Bank shall be in the currency of the relevant liability or, if the Bank so agrees in writing, in a different currency, in which case the conversion to that
different currency shall be made at the Exchange Rate. The Customer shall be liable for any shortfall if the converted currency is less than the outstanding liability. 

  

	3.3	Any monies paid to the Bank in respect of the Customer’s obligations may be applied in or towards satisfaction of the same or placed to the credit of a suspense account with a view to
preserving the Bank’s rights to prove for the whole of the Customer’s outstanding obligations. 

  

	3.4	If any payments paid to the Bank in respect of the Customer’s obligations are required to be repaid by virtue of any law relating to insolvency, bankruptcy or liquidation or for any
other reason, the Bank shall be entitled to recover such sums from the Customer as if such monies had not been paid. 

  

	4.	Drawings Against Uncleared Effects 

 If the Bank permits the Customer to
draw against funds to be collected or transferred from any account(s), the Customer shall on demand reimburse the Bank in full the amount so drawn if the Bank does not receive the funds in full at the time the Bank ought to have received the same or
if, after the Bank has accepted the transfer, the Bank is prevented from collecting or freely dealing with the funds in accordance with usual banking practice. 
  

	5.	Treasury Facilities 

  

	5.1	Any foreign exchange, options, futures, swap or other structured or derivative products (“Treasury Products”) applications will only be considered by the Bank or SCB subject to its
receipt of the documentation that the Bank may require from time to time. Any Treasury Products contract will be entered into by the Customer at the rate(s) quoted by the Bank at its absolute discretion. 

  

	5.2	The terms included or referred to in the relevant confirmation issued by the Bank shall apply to all Treasury Products transactions between the Customer and the Bank.

  

	5.3	The Customer warrants that it will enter into any transaction with the Bank or SCB solely in reliance upon its own judgement and at its own risk, and the Bank shall not be responsible for any
loss incurred by the Customer, whether or not acting on advice received from the Bank. The Customer further warrant that he/she understands and is aware of the risks involved. 

  

	5.4	The Treasury Products contracts amounts shall be subject to the relevant facility limit(s) (if any) stipulated in the Facility Letter and the risk exposure limit(s) set (either advised or
otherwise) by the Bank or SCB from time to time. 

  

	5.5	The Bank or SCB may from time to time mark the Customer’s outstanding Treasury Products contracts to market by reference to the prevailing market rate or quotation in order to calculate
the Customer’s gain or loss under the contracts If the Bank or SCB determines that the Customer has incurred a loss under any such contracts by the then prevailing mark-to-market calculation, the Customer shall forthwith pay such sum or deliver
such collaterals as required by the Bank to cover such loss. 

  

	5.6	The Bank or SCB has the right to close out and/or terminate any or all outstanding Treasury Products contracts of the Customer if: 

  

	 	(a)	the Customer fails to perform any terms of the Agreement including its default in payment; 

  

	 	(b)	the outstanding contracts amounts exceed the facility limit(s) (if any) or the Bank’s risk exposure limit(s); 

  

	 	(c)	the Customer shall become insolvent or generally suspended payment of any debt when due or subject to any bankruptcy or winding-up petition; or 

  

	 	(d)	any circumstances have arisen or continued which, in the Bank’s opinion, might adversely affect the Bank’s position under the relevant contracts. 

 Upon closing-out or termination of the Treasury Products contracts, the Customer shall pay to the Bank or SCB any loss incurred under those contracts. Such loss
shall be determined by the Bank or SCB (acting in good faith) based on the replacement market value of the contracts so closed-out or terminated, which determination shall be binding and conclusive on the Customer. 
  

	6.	Security 

  

	6.1	The Bank holds all Assets of the Customer including those Assets held to the Bank’s order or for account of the Customer (whether for safe custody, collection, security or for any
specific purpose or generally) as continuing security for the payment and discharge of all the Customer’s obligations and liabilities to the Bank. 

  

	6.2	The Bank may (at any time, without prior notice to the Customer or any other person and in such manner as the Bank thinks fit) sell, dispose of or otherwise deal with any of the Assets of the
Customer the subject of the security hereby created. 

  

	6.3	The Bank may apply the net proceeds of any sale, disposition or dealing in or towards discharge of the Customer’s obligations to the Bank in whatever priority that the Bank may
determine. 

  

	6.4	The Customer shall, upon demand by the Bank: 

  

	 	(a)	provide such further security in form and value as may be required in the opinion of the Bank sufficient to secure any of the Customer’s obligations to the Bank; and

  

	 	(b)	execute and deliver to the Bank any documents in form and substance satisfactory to the Bank over any of the Customer’s Assets as the Bank specifies in any such demand.

  

	6.5	Save for gross negligence or wilful default, the Bank shall not be liable for any loss or damages or depreciation in value of any security granted in favour of the Bank due to the Bank’s
exercise of any of its rights over any security. 

  

	7.	Interest 

  

	7.1	The Bank shall charge interest on any sum(s) outstanding or owing by the Customer from time to time. Unless otherwise specified, interest will accrue on a daily basis and shall be calculated,
compounded and payable on such basis and in such manner as the Bank may determine at its absolute discretion. 

  

	7.2	Unless otherwise stipulated, a default rate of 8% per annum over Prime or the Bank’s cost of funding, whichever is higher, will apply to amounts not paid when due or in excess of
any facility limit. 

  

	8.	Cost and Expenses 

  

	8.1	The Customer shall pay to the Bank on demand the commissions, fees and charges in connection with the Facilities and/or Services (including insurance cover) at the rates and in the amount and
manner stipulated by the Bank. The Customer shall indemnify against the Bank for all costs and expenses (including legal costs on a full indemnity basis) in connection with the performance. 

 

 

 

 
 Trade Finance Supplement - TCT (04) 
 This Supplement forms an integral part of the Standard Terms and Conditions for Banking Facilities and Services (“Standard Terms and Conditions”) of Standard Chartered Bank (Hong Kong) Limited 

. Except otherwise defined, the words defined in the Standard Terms and Conditions shall have the same meanings when used in this Supplement. 
  

	1.	Application 

  

	1.1	Each documentary credit shall be subject to the Uniform Customs and Practice for Documentary Credits (“UCP”) of the International Chamber of Commerce (“ICC”) (including
eUCP, if applicable) as are in effect from time to time. 

  

	1.2	Each standby letter of credit shall be subject to the UCP or International Standby Practices (“ISP”) of the ICC (as stipulated in the relevant application form(s) or the text of the
instrument) as are in effect from time to time. 

  

	1.3	Each guarantee, bond or payment undertaking issued by the Bank shall be subject to ISP, Uniform Rules for Demand Guarantees (“URDG”) of the ICC as are in effect from time to time or
the governing law as stipulated in the relevant application form(s) or the text of the instrument. 

  

	1.4	Collection (either documentary or clean) shall be subject to the Uniform Rules for Collections (“URC”) of the ICC as are in effect from time to time. 

  

	1.5	In the event of any conflict or inconsistency between the Agreement and the UCP, ISP, URC, URDG or any other ICC rules, the Agreement shall prevail. 

  

	2.	Commercial Documentary Credits / Standby Letters of Credit / Guarantees / Bonds / Indemnities or the like (the “Payment Undertakings”) 

  

	2.1	The Bank is authorized to accept and pay all documents drawn or purporting to be drawn and presented or negotiated under each of the Payment Undertakings issued by the Bank.

  

	2.2	The Bank may restrict negotiations of any documentary credit or standby letter of credit to its own offices or to any correspondent or agent of its choice. 

  

	2.3	The Customer will reimburse the Bank on demand any amount paid by the Bank and will pay the Bank no later than the applicable date an amount equal to the amount due under each of the Payment
Undertakings issued by the Bank or any bills of exchange accepted by the Bank under any inward collection transactions. 

  

	2.4	The Customer agrees that the Bank is fully entitled to reject any discrepant documents presented under any of the Payment Undertakings notwithstanding that the Customer may have waived such
discrepancies. 

  

	2.5	The Customer agrees that the Bank may, at its sole discretion and without notice or consent from the Customer, amend the terms and conditions submitted by the Customer and/or insert
additional terms and conditions into the Payment Undertakings as the Bank thinks appropriate including cancellation of the whole or any unused balance of any Payment Undertakings issued by the Bank. 

  

	2.6	The Customer agrees and undertakes to examine the customer copy of each of the Payment Undertakings issued by the Bank and irrevocably agrees that failure to give a notice of objection about
the contents of the Payment Undertakings within 90 calendar days after the sending of the customer copy of the Payment Undertakings to the Customer by the Bank shall be deemed to have agreed to waive any rights to raise objections or pursue any
remedies against the Bank in respect thereof. 

  

	3.	Pledge of Goods 

  

	3.1	In consideration of the Facilities and/or Services, the Bank shall have a pledge on (i) the goods and (ii) the documents, bills of exchange, negotiable instruments, documents of
title, transport documents, insurance policies, delivery orders, godown warrants and any other documents processed or handled through the Bank (“Documents”), until all the obligations owed by the Customer to the Bank have been fully
discharged. 

  

	3.2	The pledge shall be a continuing security in addition to any other security held by the Bank and the Bank is authorised to sell, dispose of or otherwise deal with any of the goods or
Documents subject to the pledge. 

  

	3.3	The risks in the goods shall be with the Customer and the Bank shall not be responsible for any loss or damage or depreciation in value of any goods or Documents held by the Bank as security.

  

	4.	Back-to-back Credit 

  

	4.1	If the Bank issues any documentary credit for the account of the Customer (“Back-to-Back Credit”) against the support of a documentary credit issued in favour of the Customer
(“Master Credit”), the Bank is authorised (but not obliged) to:- 

  

	 	(a)	retrieve the documents presented under the Back-to-Back Credit and to take any actions that the Bank thinks appropriate for the drawing of the Master Credit; 

  

	 	(b)	negotiate or discount the Master Credit; and 

  

	 	(c)	apply the proceeds of the Master Credit to pay the corresponding drawing(s) under the Back-to-Back Credit irrespective of discrepancies in any of the presented documents (all of which, if
any, are hereby waived). 

  

	4.2	The Customer shall not, without the Bank’s prior written consent, assign the proceeds of any Master Credit to any other party. 

  

	5.	Assignment of Export Credit Proceeds 

 If the Bank makes a loan to the
Customer against an export documentary credit deposited by the Customer with the Bank or issues a Back-to-Back Credit against such export documentary credit, the Customer shall absolutely assign all its rights, title, interest and benefits in and to
all the proceeds of such documentary credit as continuing security for the payment and discharge of the Customer’s obligations and liabilities to the Bank. All monies received by the Bank in respect of such documentary credit shall be applied
to discharge the obligations and liabilities of the Customer in such order and manner as the Bank determines. 
  

	6.	Export Documents 

  

	6.1	Notwithstanding the provisions of the UCP or other ICC rules, the Customer hereby expressly agrees that the Bank will have full recourse against it and it will reimburse the Bank on demand
for any advances (including purchase, negotiation or financing of any draft(s) and/or documents) against any Documents which have not been duly taken on presentation or in respect of which payment has not been duly made to the Bank on the due date
due to whatever reason. 

  

	6.2	The Customer will refund to the Bank on demand for any monies received by the Customer under any guarantee or indemnity. 

 

 

 

 
 Terms and Conditions for Foreign Exchange Business - TC3 (04) 
 The following terms and conditions shall apply to all transactions between Standard Chartered Bank (Hong Kong) Limited 

 (the “Bank”) (the Bank is registered with the Securities & Futures Commission in HK as a registered institution, CE number AJI614) at 32nd Floor, 4-4A Des Voeux Road Central, Hong Kong and the
customer (the “Customer”) for the purchase by one party of one currency against the sale by it to the other of another currency (“FX Transactions”), except to the extent that any term shall be varied by agreement in writing
between the parties. 
  

	1.	Confirmations 

 The Bank shall deliver to the Customer a written
confirmation of each FX Transaction. Any delay or failure in delivering a confirmation shall not affect the validity of the relevant FX Transaction. In the absence of manifest error all confirmations and statements sent by the Bank will be
conclusive and binding on the Customer unless, within one business day of receipt, notice in writing is given to the Bank of any objection. 
  

	2.	Payments 

  

	 	(a)	All payments to the Bank shall be made in the currency required and in immediately available funds free from set off or counterclaim and without any deduction of, or withholding for any
taxes, duties, or charges. If and to the extent that any payment is subject to any such deduction or withholding, the amount of the payment shall be increased so that the amount of the payment received after any such required deduction or
withholding is equivalent to the amount otherwise payable under the FX Transaction. 

  

	 	(b)	The Bank may at its discretion withhold payment of monies due to the Customer under an FX Transaction until such time as it is satisfied that it has received or will receive the amount due
from the Customer thereunder. 

  

	 	(c)	In the event that a Customer fails to make a payment under an FX Transaction on its due date the Customer will pay interest to the Bank on demand at a rate equal to two percent (2%) per
annum above the cost to the Bank (conclusively certified by the Bank) of funding the amount in default from the due date to the date of payment and also fully indemnify the Bank for any loss incurred by it (including legal costs of enforcement) by
reason of such late payment. The Bank shall have the right at any time to debit any account of the Customer with such default interest and losses payable by the Customer. 

  

	3.	Termination of FX Transactions 

  

	 	(a)	The Bank may, at its discretion, and without prior notice, terminate any or all outstanding FX Transactions on the happening of any of the following events:- 

  

	 	(i)	the Customer fails to perform, or indicates its intention not to perform, any obligation of the Customer to the Bank or to any other financial institution; or 

  

	 	(ii)	the occurrence of a material adverse change in the financial position of the Customer; or 

  

	 	(iii)	the Bank requires as a condition of a FX Transaction that any margin or other security be given to the Bank and the margin or security is not provided or maintained at a level satisfactory to
the Bank; or 

  

	 	(iv)	the aggregate mark-to-market losses to the Customer under outstanding FX Transactions exceed any limit which has been previously advised by the Bank to the Customer; or

  

	 	(v)	the Bank determines that it is or is likely to be impracticable or illegal for either the Bank or the Customer, or both, to perform any FX Transaction; or 

  

	 	(vi)	the Customer becomes insolvent or any proceedings are commenced seeking a judgment of or arrangement for bankruptcy, rehabilitation, reorganisation, administration, winding up, liquidation or
other similar relief in respect of the Customer or the Customer’s debts or assets, or the appointment of a trustee, receiver, liquidator, conservator, administrator or other similar official of the Customer or any substantial part of the
Customer’s assets. 

  

	 	(b)	Upon the termination of any FX Transaction pursuant to this condition, the payments otherwise due on the maturity date of each FX Transaction so terminated shall not be required to be made,
but instead the payment provided for in sub-clause (c) below shall be made by the relevant party. 

  

	 	(c)	The Bank shall determine, for each terminated FX Transaction, the amount of its loss (expressed as a negative amount) or profit (expressed as a positive amount) as a result of the termination
of such FX Transaction, and shall notify the Customer of the amounts determined. The net sum of such profits and losses for all terminated FX Transactions shall be immediately due and payable, by the Customer in the case of a negative amount, or by
the Bank, in the case of a positive amount, but without prejudice to the Bank’s rights of set-off. 

  

	4.	Set-off 

 The Bank shall be entitled at any time and without notice to
the Customer to set off any obligations of the Bank to the Customer in or towards satisfaction of any obligations of the Customer to the Bank or Standard Chartered Bank, whether the obligations of the Customer or the Bank or Standard Chartered Bank
are actual or contingent, primary or collateral, booked or payable at different branches (including overseas branches), or in different currencies. The Bank may effect any necessary conversions at the rate of exchange at which the Bank is able to
purchase the currency of the Customer’s obligations. 
 If the amount of an obligation is unascertained, the Bank may estimate that amount and
set-off in respect of the estimate, subject to a final settlement being made between the Customer and the Bank when the amount of the obligation is ascertained. 
  

	5.	Miscellaneous 

  

	 	(a)	The Customer may not assign or encumber any FX Transaction without the consent of the Bank. 

  

	 	(b)	Where the Customer consists of more than one person, each such person shall be jointly and severally liable under each FX Transaction. 

  

	6.	Governing Law and Jurisdiction 

 These Terms and all FX Transactions
shall be governed by and construed in accordance with the laws of Hong Kong and the Customer irrevocably submits to the non-exclusive jurisdiction of the Courts of Hong Kong.2005 Stock Option Plan of Global-Tech

 Exhibit 4.40 
 EXHIBIT A 
 GLOBAL-TECH APPLIANCES INC. 
 2005 EMPLOYEE STOCK OPTION PLAN 
 This Global-Tech Appliances Inc. 2005 Employee Stock Option Plan (the “2005
Plan”) is intended to: (1) provide an incentive to employees, directors and consultants of the Company, or any of its subsidiaries or a parent; (2) offer an additional inducement in obtaining the services of well-qualified persons;
and (3) provide or increase such persons’ proprietary interests in the Company and align their interests with those of the Company’s shareholders. The 2005 Plan provides for the grant of: (a) “incentive stock options”
(“ISOs”) within the meaning of section 422 of the Internal Revenue Code of 1986, as amended (the “Code”); (b) nonqualified stock options that do not qualify as ISOs (“NQSOs”); and (c) stock appreciation
rights. 
 Section 1  
 ELIGIBILITY 
 Awards may be granted to any person who is an employee, director or consultant of Global-Tech Appliances Inc.
(the “Company”), any of its Subsidiaries or a Parent. 
 Section 2 
 AVAILABLE SHARES 
 The aggregate number of common shares, $0.01 par value per share, of the
Company (“Common Shares”), which may be issued under the 2005 Plan may not exceed one million eight hundred thousand (1,800,000). Such Common Shares may be, either in whole or in part, authorized but unissued Common Shares or Common Shares
held in the treasury of the Company. 
 Any Common Share subject to an award which for any reason expires, is canceled or is terminated prior to
exercise or which ceases for any reason to be exercisable shall again become available for the granting of awards under the 2005 Plan. For purposes of the aggregate limit on the number of Common Shares which may be issued under the 2005 Plan, only
shares which are actually distributed upon exercise of stock appreciation rights awards shall count against the aggregate limit. 
 Section 3

 ADMINISTRATION OF THE 2005 PLAN 
 The 2005 Plan shall be administered by a committee of at least two directors of the Company which is designated by the Board of Directors (the “Committee”). Unless otherwise determined by the Board of Directors, the Compensation
Committee of the Board of Directors shall be the Committee. A majority of the members of the Committee shall constitute a quorum, and the acts of a majority of the members present at any meeting at which a quorum is present, and any acts approved in
writing by all members without a meeting, shall be the acts of the Committee. 
 The Committee shall have the authority, in its sole discretion, to:
(i) determine the employees, directors and consultants who shall be granted awards; (ii) determine the terms of awards (including, without limitation, whether an option is an ISO or NQSO, terms relating to exercise dates, the form and
timing of the payment of exercise prices, vesting, acceleration of exercise rights, the form and timing of payment and transfer restrictions); (iii) determine whether to subject the grant or exercise of all or any 

  

 A-1 

 
portion of an award to the fulfillment of contingencies as specified in the contract referred to in Section 11 (the “Contract”) and whether such
contingencies have been met; (iv) determine whether a grantee has suffered a Disability (as defined in Section 19); (v) determine the amount, if any, necessary to satisfy the obligation of the Company, a subsidiary or a parent to
withhold taxes or other amounts; (vi) determine the fair market value of a Common Share; (vii) construe, interpret, administer and implement the terms of the 2005 Plan, Contracts and related documents and practices; (viii) with the
consent of the grantee, cancel or modify an award to the extent consistent with the then-prevailing 2005 Plan terms; (ix) create, modify and rescind rules, regulations and administrative forms relating to the Plan; and (x) correct any
defect, supply any omission and reconcile any inconsistency in or between the 2005 Plan, any Contract and any related documents or practices. 
 Any
controversy or claim arising out of or relating to the Plan, any award granted under the Plan or any Contract shall be resolved or determined unilaterally by the Committee in its sole discretion. The resolutions and determinations of the Committee
on the matters referred to in this Section 3 shall be conclusive and binding on all parties. 
 No member or former member of the Committee shall
be liable for any action, failure to act or determination made in good faith with respect to the 2005 Plan or any award hereunder. In addition, the Company shall indemnify and hold harmless each member and former member of the Committee and their
respective successors, assigns, heirs and personal representatives from and against any liability, loss, claim, damage and expense (including, without limitation, attorneys’ fees and expenses) incurred in connection therewith by reason of any
action, failure to act or determination made in good faith or in connection with the 2005 Plan or any award hereunder to the fullest extent permitted with respect to directors under the Company’s memorandum of association, articles of
association, other governing documents and applicable law. 
 Section 4 
 ELIGIBILITY 
 The Committee may from time to time, in its sole discretion, consistent with
the purposes of the 2005 Plan, grant awards to employees, directors and consultants of the Company, its subsidiaries, or a parent. Such awards granted shall cover such number of Common Shares as the Committee may determine, in its sole discretion,
subject to the terms of the 2005 Plan; provided, however, that the aggregate market value (determined at the time an option is granted in accordance with Section 5) of the Common Shares for which any eligible employee may be
granted ISOs under the 2005 Plan or any other plan of the Company, or of a Parent or a Subsidiary of the Company, which are exercisable for the first time by such optionee during any calendar year shall not exceed $100,000. Such ISO limitation shall
be applied by taking ISOs into account in the order in which they were granted. Any option (or the portion thereof) granted in excess of such ISO limitation amount shall be treated as a NQSO. 
 Section 5 
 EXERCISE PRICE 
 The exercise price of the Common Shares under each award shall be determined by the Committee in its sole discretion; provided, however, that the
exercise price of an award shall never be less than the Fair Market Value of the Common Shares subject to such award on the date of grant; and further, provided, that if, at the time an ISO is granted, the optionee owns (or is deemed
to own under section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company, of any of its subsidiaries or of a parent, the exercise price of such 

  

 A-2 

 
ISO shall not be less than one hundred ten percent (110%) of the Fair Market Value of the Common Shares subject to such ISO on the date of grant. 
 The Fair Market Value of a Common Share on any day shall be: (a) if the principal market for the Common Shares is a national securities exchange, the average
of the highest and lowest sales price per Common Share on such day as reported by such exchange or on a composite tape reflecting transactions on such exchange, (b) if the principal market for the Common Shares is not a national securities
exchange and the Common Shares are quoted on The Nasdaq Stock Market (“Nasdaq”) and (i) if actual sales price information is available with respect to the Common Shares, the average of the highest and lowest sales price per Common
Share on such day on Nasdaq, or (ii) if such information is not available, the average of the highest bid and lowest asked prices per Common Share on such day on Nasdaq, or (c) if the principal market for the Common Shares is not a
national securities exchange and the Common Shares are not quoted on Nasdaq, the average of the highest bid and lowest asked prices per Common Share on such day as reported on the OTC Bulletin Board or by the Pink Sheets or a comparable service. If
clauses (a), (b) and (c) of this paragraph are all inapplicable, or if no trades have been made or no quotes are available for a particular day, the Fair Market Value of the Common Shares shall be determined by the Board of Directors by
any reasonable valuation method that it selects that is consistent with exclusion of the 2005 Plan and the applicable Contract from coverage under section 409A of the Code. 
 Section 6 
 TERM 
 The term of each award granted pursuant to the 2005 Plan shall be such term as is established by the Committee, in its sole discretion, provided,
however, that the term of each ISO granted pursuant to the Plan shall be for a period not exceeding ten (10) years from the date of grant thereof, and further, provided, that if, at the time an ISO is granted, the optionee
owns (or is deemed to own under section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes or stock of the Company, of any of its subsidiaries or of a parent, the term of the ISO
shall be for a period not exceeding five (5) years from the date of grant. Awards shall be subject to earlier termination as herein provided. 
 Section 7 
 EXERCISE, ADJUSTMENT OF SHARES SUBJECT TO AWARDS 
 Each award shall vest and become exercisable in accordance with the terms of the applicable Contract. An award (or any part or installment thereof), to the extent
then exercisable, shall be exercised by giving written notice to the Company (in advance as determined by the Committee) at its principal office stating which award is being exercised, specifying the number of Common Shares or stock appreciation
rights as to which such award is being exercised and accompanied by payment in full of the aggregate exercise price therefor, if any (or the amount due on exercise if the Contract permits installment payments, if any). 
 The aggregate exercise price shall be paid: (a) in cash or by certified check; or (b) if the applicable Contract permits: (i) with previously
acquired Common Shares having an aggregate Fair Market Value on the date of exercise (determined in accordance with Section 5) equal to the aggregate exercise price of all awards being exercised; or (ii) with any combination of cash,
certified check or Common Shares. Notwithstanding the foregoing, the Committee may, in its sole discretion, permit payment of the exercise price of an award by delivery by the grantee of a properly executed notice, together with a copy of his
irrevocable instructions to a broker acceptable to the Committee to deliver 

  

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promptly to the Company the amount of sale or loan proceeds sufficient to pay such exercise price. In connection therewith, the Company may enter into agreements for
coordinated procedures with one or more brokerage firms. 
 A person entitled to receive Common Shares upon the exercise of an award shall not have the
rights of a shareholder with respect to such Common Shares until the date of issuance of a stock certificate to him for such shares; provided, however, that until such stock certificate is issued, any grantee using previously acquired
Common Shares in payment of an exercise price shall continue to have the rights of a shareholder with respect to such previously acquired shares. 
 No
fractional Common Shares may be purchased or issued under the 2005 Plan. Except as may otherwise be provided in a Contract, any fractional shares shall be eliminated in determining the number of shares to be issued upon exercise of an award.

 Section 8 
 TERMINATION OF
RELATIONSHIP 
 Except as may be otherwise be expressly provided in the applicable Contract, any grantee whose relationship with the Company,
its parent and subsidiaries as an employee, director or consultant (a “Relationship”) has terminated for any reason (other than as a result of the death or Disability of the optionee) may exercise such award, to the extent exercisable on
the date of such termination, for a period not to exceed three months after the date of such termination. Notwithstanding the foregoing, but except as may otherwise be determined by the Committee in its sole discretion, if such Relationship is
terminated: (a) for cause; or (b) without the consent of the Company, the award shall terminate immediately. 
 For the purposes of the 2005
Plan, an employment relationship shall be deemed to exist between an individual and a company if, at the time of the determination, the individual is an employee of such company for purposes of section 422(a) of the Code. As a result, an individual
on military, sick leave or other bona fide leave of absence shall continue to be considered an employee for purposes of the 2005 Plan during such leave if the period of the leave does not exceed ninety days and the individual’s right to
reemployment is not guaranteed by statute or by contract, the employment relationship shall be deemed to ) have terminated on the ninety-first day of such leave. 
 Except as may otherwise be expressly provided in the applicable Contract, awards granted under the 2005 Plan shall not be affected by any change in the status of the grantee so long as the grantee continues to be an employee
of, director of, or a consultant to, the Company, any of its subsidiaries or a parent (regardless of having changed from one to the other or having been transferred from one corporation to another). 
 Nothing in the 2005 Plan or in any award granted under the 2005 Plan shall confer on any person any right to continue in the employ of, or as a consultant to, the
Company, any of its subsidiaries or a parent, or interfere in any way with any right of the Company, any of its subsidiaries or a parent to terminate the grantee’s relationship at any time for any reason whatever without liability to the
Company, its subsidiaries or a parent. 
 For purposes of this 2005 Plan, “cause” shall mean fraud or embezzlement by the grantee, gross
negligence by the grantee in the performance or nonperformance of his duties for the Company, its subsidiaries or a parent, or the grantee’s material failure or refusal to perform his duties at any time as an employee of, director of, or
consultant to, the Company, a subsidiary or a parent. 
  

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 Section 9 
 DEATH OR DISABILITY OF A GRANTEE 
 Except as may otherwise be expressly provided in the applicable Contract, if a grantee dies
while he or she is an employee of, director of, or consultant to, the Company, any subsidiaries or a parent, or his or her Relationship terminates by reason of his or her Disability, the award may be exercised, to the extent exercisable on the date
of his or her death or in the event of his or her Disability, upon the effective date of such termination, by the grantee or his or her Legal Representative (as defined in Section 19) for a period not to exceed the twelve month period after the
date of death or the effective date of such termination. 
 Section 10 
 COMPLIANCE WITH LAWS 
 The Committee may require, in its sole discretion, as a condition to
any award being exercisable that either (a) a Registration Statement under the Securities Act of 1933, as amended (the “Securities Act”), with respect to the Common Shares to be issued upon such exercise shall be effective and current
at the time of exercise, or (b) there is an exemption from registration under the Securities Act for the issuance of the Common Shares upon such exercise. Nothing herein shall be construed as requiring the Company to register shares subject to
any award under the Securities Act or to keep any Registration Statement effective or current. 
 The Committee may require, in its sole discretion, as
a condition to the exercise of any award that the grantee execute and deliver to the Company representations and warranties, in form, substance and scope satisfactory to the Committee, which the Committee determines are necessary or convenient to
facilitate the perfection of an exemption from the registration requirements of the Securities Act, other applicable securities laws or other legal requirement, including without limitation that (a) the Common Shares to be issued upon the
exercise of the award are being acquired by the grantee for his own account, for investment only and not with a view to the resale or distribution thereof, and (b) any subsequent resale or distribution of Common Shares by such grantee will be
made only pursuant to (i) a Registration Statement under the Securities Act which is effective and current with respect to the Common Shares being sold, or (ii) a specific exemption from the registration requirements of the Securities Act,
but in claiming such exemption, the grantee shall prior to any offer of sale or sale of such Common Shares provide the Company with a favorable written opinion of counsel satisfactory to the Company, in form, substance and scope satisfactory to the
Company, as to the applicability of such exemption to the proposed sale or distribution. 
 In addition, if at any time the Committee shall determine,
in its sole discretion, that the listing or qualification of the Common Shares subject to such award on any securities exchange, Nasdaq or under any applicable law, or the consent or approval of any governmental authority or regulatory body, is
necessary or desirable as a condition to, or in connection with, the granting of an award or the issue of Common Shares thereunder, such award may not be exercised in whole or in part unless such listing, qualification, consent or approval shall
have been effected or obtained free of any conditions not acceptable to the Committee. 
 The Company does not represent or warrant, either expressly
or impliedly, that any option meets the requirements for ISOs or that any award is exempt from taxation under section 409A of the Code. 
  

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 Section 11 
 AWARD CONTRACTS 
 Each award shall be evidenced by an appropriate Contract which shall be duly executed by the Company and the
grantee, and shall contain such terms, provisions and conditions not inconsistent herewith as may be determined by the Committee. A Contract may provide that, upon exercise of stock appreciation rights, a grantee is entitled to a distribution of
Common Shares with a Fair Market Value equal to the difference between the exercise price and the Fair Market Value of the underlying Common Shares, cash equal to the difference between the exercise price and the Fair Market Value of the Common
Shares or a combination thereof. 
 Section 12 
 ADJUSTMENTS UPON CHANGES IN COMMON SHARES 
 Notwithstanding any other provision of the 2005 Plan, in the event of a stock
dividend, spin-off, split-up, combination, reclassification, recapitalization, merger in which the Company is the surviving corporation, or exchange of shares or other capital adjustment that results in a change in the number or kind of Common
Shares which are authorized for issuance or which are outstanding immediately prior to such event, the aggregate number and kind of shares subject to the 2005 Plan, the aggregate number and kind of shares subject to each outstanding award and the
exercise price thereof may be adjusted accordingly by the Board of Directors, whose determination shall be conclusive and binding on all parties. 
 In
the event that the Company is merged or consolidated with another corporation and, whether or not the Company shall be the surviving corporation, there shall be any changes in the Common Shares by reason of such merger or consolidation, or in the
event that all or substantially all of the assets of the Company are acquired by another person, or in the event of a reorganization or liquidation of the Company (each such event being hereinafter referred to as a “Reorganization Event”)
or in the event that the Board of Directors shall propose that the Company enter into a Reorganization Event, the Committee may in its discretion take any or all of the following actions: 
  

	 	(i)	by written notice to each grantee provide that his awards will be terminated unless exercised within fifteen days (or such longer period as the Committee shall determine in its sole
discretion) after the date of such notice (without acceleration of the exercisability of such awards), and 

  

	 	(ii)	advance the dates upon which any or all outstanding awards shall become vested and exercisable. 

 Whenever deemed appropriate by the Committee, any action referred to in the preceding paragraph may be made conditional upon the consummation of the applicable Reorganization Event. 
 Section 13 
 AMENDMENTS AND TERMINATION OF THE
2005 PLAN 
 The 2005 Plan was adopted by the Board of Directors on October 6, 2005. No award may be granted under the 2005 Plan after
October 6, 2015. The Board of Directors, without further approval of the Company’s shareholders, may at anytime suspend or terminate the 2005 Plan, in whole or in part, or amend it from time to time in such respects as it may deem
advisable, including, without limitation, in order that ISOs granted hereunder meet the requirements for “incentive stock options” under the Code, to 

  

 A-6 

 
comply with the provisions of Rule 16b-3, section 409A of the Code, or any change in applicable law; provided, however, that no amendment shall be
effective without the prior or subsequent shareholder approval required under applicable law or the Code which would (a) except as contemplated in Section 12, increase the maximum number of Common Shares for which awards may be granted
under the 2005 Plan; or (b) change the eligibility requirements to receive award hereunder. No termination, suspension or amendment of the 2005 Plan shall, without the consent of the holder of an existing and outstanding award affected thereby,
materially and adversely affect his rights under such award. The power of the Committee to construe and administer any awards granted under the 2005 Plan prior to the termination or suspension of the 2005 Plan nevertheless shall continue after such
termination or during such suspension. 
 Section 14 
 NON-TRANSFERABILITY OF AWARDS 
 Except as may be permitted in a Contract upon express terms approved by the
Committee, no award granted under the 2005 Plan shall be transferable otherwise than by will or the laws of descent and distribution, and options and stock appreciation rights may be exercised, during the lifetime of the optionee or right holder,
only by the optionee, right holder or his Legal Representatives. Except to the extent provided above, options and stock appreciation rights may not be assigned, transferred, pledged, hypothecated or disposed of in any way (whether by operation of
law or otherwise) and shall not be subject to execution, attachment or similar process, and any such attempted assignment, transfer, pledge, hypothecation or disposition shall be null and void ab initio and of no force or effect.

 Section 15 
 WITHHOLDING TAXES

 The Company may withhold: (a) cash; (b) subject to any limitations under Rule 16b-3, Common Shares to be issued with respect
thereto having an aggregate fair market value on the exercise date (determined in accordance with Section 5); or (c) any combination thereof, in an amount equal to the amount which the Committee determines is necessary to satisfy the
obligation of the Company, a Subsidiary or a Parent to withhold federal, state and local income taxes or other amounts incurred by reason of the grant or exercise of an award, its disposition, or the disposition of the underlying Common Shares.
Alternatively, the Company may require the holder to pay to the Company such amounts, in cash, promptly upon demand. 
 Section 16

 STOCK LEGENDS; PAYMENTS OF EXPENSES 
 The Company may endorse such legend or legends upon the certificate for Common Shares issued upon exercise of an award under the 2005 Plan and may issue such “stop transfer” instructions to its transfer agent in respect of such
shares as it determines, in its discretion, to be necessary or appropriate to: (a) prevent a violation of, or to perfect an exemption from, the registration requirements of the Securities Act and any other applicable securities laws;
(b) implement the provisions of the 2005 Plan or any agreement between the Company and the optionee with respect to such Common Shares; or (c) permit the Company to determine the occurrence of a “disqualifying disposition,” as
described in section 421(b) of the Code, of the Common Shares issued or transferred upon the exercise of an ISO granted under the 2005 Plan. 
 The
Company shall withhold taxes to the extent required by law upon issuance of shares of Common Stock or payment of cash pursuant to the exercise of any award granted under the 2005 Plan. 
  

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 Section 17 
 USE OF PROCEEDS 
 The cash proceeds from the sale or distribution of Common Shares pursuant to the exercise of awards under the
2005 Plan shall be added to the general funds of the Company and used for such corporate purposes as the Board of Directors may determine. 
 Section 18 
 SUBSTITUTIONS AND ASSUMPTIONS OF 
 AWARDS OF CERTAIN CONSTITUENT CORPORATIONS 
 Anything in this 2005 Plan to the contrary notwithstanding, the Board
of Directors may, without further approval by the shareholders, substitute new awards for prior awards of a Constituent Corporation (as defined in Section 19) or assume the prior options of such Constituent Corporation. 
 Section 19 
 DEFINITIONS 
 For the purpose of the 2005 Plan, the following terms shall be defined as set forth below: 
  

	 	(a)	Constituent Corporation. The term “Constituent Corporation” shall mean any corporation which engages with the Company, any of its subsidiaries or a parent in a transaction to which
section 424(a) of the Code applies (or would apply if the option assumed or substituted were an ISO), or any Parent or any Subsidiary of such corporation. 

  

	 	(b)	Disability. The term “Disability” shall mean a permanent and total disability within the meaning of section 22(e)(3) of the Code. 

  

	 	(c)	Legal Representative. The term “Legal Representative” shall mean the executor, administrator or other person who at the time is entitled by law to exercise the rights of a deceased
or incapacitated optionee with respect to an option granted under the Plan. 

  

	 	(d)	Parent. The term “Parent” shall have the same definition as “parent corporation” in section 424(e) of the Code. 

  

	 	(e)	Subsidiary. The term “Subsidiary” shall have the same definition as “subsidiary corporation” in section 424(f) of the Code. 

 Section 20 
 NATURE OF PAYMENTS

 Any and all payments of Common Shares hereunder shall be granted, transferred or paid in consideration of services performed for the Company
or any of its Subsidiaries or Parent by the grantee. 
 All such grants, issuances and payments shall constitute a special incentive payment to the
grantee and shall not, unless otherwise determined by the Committee, be taken into account in computing the amount of salary or compensation of the grantee for the purposes of determining any pension, 

  

 A-8 

 
retirement, death or other benefits under (i) any pension, retirement, life insurance or other benefit plan of the Company or any of its Subsidiaries or Parent or
(ii) any agreement between the Company or any of its Subsidiaries or Parent, on the one hand, and the grantee on the other hand. 
 Nothing
contained in the 2005 Plan shall be deemed in any way to limit or restrict the Company, any of its Subsidiaries or Parent or the Committee from making any award or payment to any person under any other plan, arrangement or understanding, whether now
existing or hereafter in effect. 
 Section 21 
 GOVERNING LAW AND CONSTRUCTION 
 The 2005 Plan, such awards as may be granted hereunder and all related matters shall be
governed by, and construed in accordance with, the laws of the British Virgin Islands, without regard to conflict of law provisions. 
 Neither
the 2005 Plan nor any Contract shall be construed or interpreted with any presumption against the Company by reason of the Company causing the 2005 Plan or Contract to be drafted. Whenever from the context it appears appropriate, any term stated in
either the singular or plural shall include the singular and plural, and any term stated in the masculine, feminine or neuter gender shall include masculine, feminine and neuter. 
 Section 22 
 PARTIAL INVALIDITY 
 The invalidity, illegality or unenforceability of any provision in the 2005 Plan or any Contract shall not affect the validity, legality or enforceability of any
other provisions, all of which shall be valid, legal and enforceable to the fullest extent permitted by applicable law. 
 Section 23

 SHAREHOLDER APPROVAL 
 The 2005
Plan shall take effect upon its adoption by the Board of Directors, but the 2005 Plan shall be subject to the approval of the holders of a majority of the securities of the Company present, in person or by proxy, and entitled to vote at a meeting of
shareholders held in accordance with applicable law. No awards granted hereunder may be exercised prior to such approval; provided, however, that the date of grant of any award shall be determined as if the 2005 Plan had been subject
to such approval. Notwithstanding the foregoing, if the 2005 Plan is not approved by a vote of the shareholders of the Company on or before November 30, 2005, the 2005 Plan and any awards granted hereunder shall be null and void ab
initio. 
  

 A-9 

 Section 24 
 NONQUALIFIED DEFERRED COMPENSATION 
 The 2005 Plan and all awards hereunder are intended to meet the requirements for exclusion
from the definition of “nonqualified deferred compensation” under section 409A of the Code. Except to the extent expressly and unambiguously provided to the contrary in any Contracts, the 2005 Plan, all Contracts and related documents
shall be construed and administered in a manner consistent with the requirements for exclusion from coverage under section 409A of the Code. Without limiting the foregoing, in no event shall a grantee have an opportunity to defer his or her award or
the proceeds thereof, whether under the 2005 Plan or any other plan, program or arrangement of the Company, a Subsidiary or a Parent, except for the deferral of income inherent in the award itself. 
  

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