Document:

Exhibit

Exhibit 10.28

	
				
	 
	 

	 
	

	 
	 

	 

	INTERNATIONAL PAPER INVESTMENT (SHANGHAI) CO., LTD. 
(AS THE SELLER)
AND
SHANDONG SUN HOLDING GROUP CO., LTD.
(AS THE BUYER)

	 
	EQUITY TRANSFER AGREEMENT
 
for the transfer of
fifty five percent (55%) equity interest in
INTERNATIONAL PAPER & SUN CARTONBOARD CO., LTD.,
SHANDONG INTERNATIONAL PAPER & SUN COATED PAPERBOARD CO., LTD., AND
SHANDONG IP & SUN FOOD PACKAGING CO., LTD.
	 

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

	
		
	CONTENTS

	Clause
	Page

1.DEFINITIONS    3
2.SALE AND PURCHASE    3
3.ANTI-TRUST FILING    4
4.MOFCOM APPROVAL DATE    4
5.SAIC REGISTRATION DATE    5
6.MUTUAL COVENANT    5
7.WARRANTIES    6
8.FURTHER AGREEMENT    6
9.TERMINATION    9
10.CONFIDENTIAL INFORMATION AND DISCLOSURE    10
11.MISCELLANEOUS    11
12.ENTIRE AGREEMENT    12
13.ASSIGNMENT    12
14.NOTICES    12
15.GOVERNING LAW AND JURISDICTION    13
16.GOVERNING LANGUAGE    13
17.COPY FOR SUBMISSION    13
18.EFFECTIVENSS    14
SCHEDULE 1 DEFINITIONS15

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

THIS AGREEMENT (this "Agreement") is made 
BETWEEN:
		
	(1)
	INTERNATIONAL PAPER INVESTMENT (SHANGHAI) CO., LTD., a company duly established and validly existing under the laws of the PRC (registered no. 310000400629687), whose legal address is at Unit 1801, 600 Middle Longhua Road, Xuhui District, Shanghai (the "Seller"); and

		
	(1)
	SHANDONG SUN HOLDING GROUP CO., LTD., a company duly established and validly existing under the laws of PRC (registered no. 370882228000354), whose legal address is at Town Station of Xinglong Village, Yanzhou District, Jining (the "Buyer").

The Seller and the Buyer are referred to collectively as both "Parties" and individually as a "Party".
RECITALS:
		
	(A)
	International Paper & Sun Cartonboard Co., Ltd. (万国纸业太阳白卡纸有限公司) ("JV1") is a Sino-foreign cooperative joint venture company duly established and validly existing under the laws of the PRC (registered no. 370000400003006), whose legal address is at 66 Xiguan Avenue, Yanzhou District, Jining, Shandong Province. 

		
	(B)
	Shandong International Paper & Sun Coated Paperboard Co., Ltd. (山东国际纸业太阳纸板有限公司) ("JV2") is a Sino-foreign cooperative joint venture company duly established and validly existing under the laws of the PRC (registered no. 370000400003389), whose legal address is at 66 Xiguan Avenue, Yanzhou District, Jining, Shandong Province. JV2 has a wholly owned subsidiary called International Paper & Sun (Hong Kong) Trading Limited (the "Trading Subsidiary").

		
	(C)
	Shandong IP & Sun Food Packaging Co., Ltd. (山东万国太阳食品包装材料有限公司) ("JV3") is a Sino-foreign cooperative joint venture company duly established and validly existing under the laws of the PRC (registered no. 370000400006730), whose legal address is at 66 Xiguan Avenue, Yanzhou District, Jining, Shandong Province. 

JV1, JV2 and JV3 are referred to collectively as the "Target Companies" and individually as a "Target Company".
		
	(D)
	The Target Companies were originally established by the Seller's Affiliate and the Buyer's Affiliate. As of the date of this Agreement, the Seller holds fifty-five (55%) equity interests in each Target Company. 

		
	(E)
	Upon friendly discussion, the Buyer proposes to acquire, and the Seller agrees to transfer, the Seller's entire equity interests in the Target Companies.

THE PARTIES AGREE as follows:

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

		
	1.
	DEFINITIONS

Unless otherwise defined elsewhere in this Agreement, capitalized terms used in this Agreement shall have the meanings given to them in Schedule 1 to this Agreement.
		
	2.
	SALE AND PURCHASE

		
	2.1
	Sale and Purchase

		
	2.1.1
	In accordance with the terms and conditions of this Agreement, the Seller shall sell to the Buyer, and the Buyer shall acquire from the Seller, the entire equity interest held by the Seller in each Target Company (representing fifty-five per cent (55%) of the total equity interest of each Target Company), together with all rights and obligations accruing or attached thereto as at the MOFCOM Approval Date (as defined in Clause 4.2) (each "JV1 Target Equity Interest", "JV2 Target Equity Interest" and "JV3 Target Equity Interest" respectively, and collectively the "Target Equity Interests"). 

		
	2.1.2
	The transfer of the JV1 Target Equity Interest, the JV2 Target Equity Interest and the JV3 Target Equity Interest shall be conducted simultaneously and the completion of the transfer of the Target Equity Interests in respect of any Target Company shall be conditional upon the completion of the transfer of the Target Equity Interests in respect of the other Target Companies. The afore-mentioned transaction is hereinafter referred to as the "Transaction".  

		
	2.2
	Purchase Price 

		
	2.2.1
	The purchase price for the Target Equity Interests is RMB 149 million (in words: Renminbi one hundred and forty nine million) (the "Purchase Price"). 

		
	2.2.2
	The Purchase Price shall be apportioned to the Target Equity Interests in respect of each Target Company as follows:

		
	(a)
	RMB44,174,932  (in words: Renminbi forty-four million one-hundred seventy-four thousand nine-hundred and thirty-two) for the JV1 Target Equity Interest;

		
	(b)
	RMB 85,048,862  (in words: Renminbi eighty-five million forty-eight thousand eight hundred and sixty-two) for the JV2 Target Equity Interest; and

		
	(c)
	RMB19,776,206 (in words: Renminbi nineteen million seven hundred seventy-six thousand two hundred and six) for the JV3 Target Equity Interest. 

		
	2.2.3
	For the avoidance of doubt, there shall be no adjustment to the Purchase Price after the date of this Agreement.

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

		
	2.3
	Payment of Purchase Price

		
	2.3.1
	The Purchase Price shall be paid by the Buyer into the Seller's Bank Account, without any deduction, withholding, set-off or counterclaim whatsoever, in the following manner:

		
	(d)
	twenty percent (20%) of the Purchase Price ("First Payment") shall be paid within five (5) Business Days from the date of this Agreement;

		
	(e)
	thirty percent (30%) of the Purchase Price ("Second Payment") shall be paid within five (5) Business Days from the MOFCOM Approval Date;

		
	(f)
	fifty percent (50%) of the Purchase Price ("Final Payment") shall be paid within five (5) Business Days from the SAIC Registration Date (as defined in Clause 5).

		
	2.3.2
	Without prejudice to the Seller's rights under other provisions of this Agreement and the laws of the PRC, if the Buyer fails to pay any portion of the Purchase Price in accordance with Clause 2.3.1, a late-payment interest shall accrue and be payable by the Buyer to the Seller in respect of the default amount, for the period starting from the day following the expiry of the payment period mentioned above in respect of such portion until the day on which the default amount is paid, at the interest rate of 4.85% per annum.

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

		
	3.
	ANTI-TRUST FILING

		
	3.1
	Within ten (10) Business Days after the date of this Agreement, the Buyer shall make a notification to the Anti-monopoly Bureau of the Ministry of Commerce of the PRC ("AMB") in respect of the Transaction. For the purpose of anti-trust filing, the Buyer shall be responsible for preparing the documents and materials as may be required under the laws of the PRC or AMB and the Seller shall provide reasonable assistance to the Buyer by providing the Buyer with access to necessary information of the Target Companies which is in the possession of the Seller. The Buyer shall use its best endeavours to obtain the PRC anti-trust clearance for the Transaction as soon as practicable after the date of this Agreement.

		
	3.2
	Anti-trust clearance for the Transaction is deemed to be obtained upon the issuance of a notice by the Ministry of Commerce clearing the Transaction for merger control purposes pursuant to the Anti-Monopoly Law or the expiry of the statutory clearance period under the Anti-Monopoly Law and no objection having been raised by the Ministry of Commerce with respect to the Transaction.

		
	4.
	MOFCOM APPROVAL DATE 

		
	4.1
	Within five (5) Business Days of the receipt of the First Payment in the Seller's Bank Account, the Parties shall, and shall procure the Target Companies to, submit this Agreement together with all the other necessary documents to MOFCOM for approval of the Transaction (i.e. the transfer of the Target Equity Interests in each Target Company) as a whole.

		
	4.2
	With effect from the day on which MOFCOM issues an approval letter/approval letters approving the Transaction (i.e. the transfer of the Target Equity Interests in each Target Company) ("MOFCOM Approval Date"), 

		
	4.2.1
	the Buyer shall assume all the rights and obligations in respect of the Target Equity Interests of the Target Companies;

		
	4.2.2
	the JV Contracts shall be terminated, and neither Party shall have any further responsibility or liability to the other Party or their Affiliates in respect of its obligations under the JV Contracts (unless the relevant obligations are explicitly provided under the relevant JV Contract to survive, subject to the terms and conditions thereof, after the termination of that JV Contract);

		
	4.2.3
	the director(s) and supervisor(s) appointed by the Seller in each Target Company shall be automatically released from their responsibilities as the director or supervisor (as the case may be) of that Target Company.

		
	5.
	SAIC REGISTRATION DATE

Within five (5) Business Days after the MOFCOM Approval Date and provided that the First Payment and Second Payment have been duly received in the Seller's Bank Account, the Parties shall, and shall procure the Target Companies to, submit this Agreement together with all the other necessary documents to SAIC for registration of:

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

		
	5.1.4
	change of shareholder(s) of each Target Company so that the Seller will no longer be recorded as a shareholder of such Target Company; and

		
	5.1.5
	change of the directors and supervisors of each Target Company so that the persons appointed by the Seller will no longer be recorded as the directors or supervisors of such Target Company. 

The SAIC registration shall be deemed completed upon the issuance of a revised business license ("Revised Business License") for each Target Company evidencing the conversion of that Target Company from a Sino-foreign cooperative joint venture into a domestic company ("SAIC Registration Date"). As soon as practicable following the issuance of the Revised Business License for a Target Company, with the assistance of the Seller (if necessary), the Buyer shall, and shall procure that Target Company to, complete all the post SAIC registrations (including without limitation registrations with the relevant foreign exchange administration authority/banks and the local tax bureaus, as applicable) to de-register the Seller as an equity holder in that Target Company.

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

		
	6.
	MUTUAL COVENANT

		
	6.1
	For the avoidance of doubt, from the date of this Agreement and until the MOFCOM Approval Date, the JV Contract in respect of each Target Company shall remain in full force and effect and the Parties shall fully respect and comply with the arrangements thereunder. Subject to the preceding provision, at any time after the receipt by the Seller of the First Payment in the Seller's Bank Account, the Buyer may appoint a deputy general manager in the Target Companies who shall report to the general manager of the Target Companies and may participate in the management and monitoring of the business operation of the Target Companies. For the avoidance of doubt, the position of the deputy general manager shall be cancelled if this Agreement is terminated in accordance with Clause 9. Separately, the Seller undertakes to the Buyer that it will procure that, between the date of this Agreement and the MOFCOM Approval Date, the general manager of the Target Companies will not take any action that is out of the ordinary course of business without the consent of the Buyer.

		
	6.2
	In addition to the obligations provided under Clause 3, Clause 4 and Clause 5 above, each Party agrees to perform (or procure the performance of) all such acts and things and/or to execute and deliver (or procure the execution and delivery of) all such documents, as may be required by PRC law or as may be necessary or reasonably requested by the other Party to implement the Transaction in accordance with this Agreement.

		
	6.3
	Each Party shall, as applicable, keep the other Party reasonably informed of the progress of the anti-trust filing, MOFCOM approval and SAIC registration in relation to the Transaction. The Buyer shall immediately notify the Seller of the obtaining of the anti-trust clearance for the Transaction, the MOFCOM Approval and the Revised Business License of any Target Company, as the case may be.

		
	7.
	WARRANTIES

		
	7.1
	Each Party warrants to the other Party that:

		
	7.1.1
	it has the right, power and authority to enter into this Agreement and to perform its obligations under this Agreement; and

		
	7.1.2
	its obligations under this Agreement are valid, legal, binding and enforceable in accordance with the terms of this Agreement.

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

		
	7.2
	The Seller warrants to the Buyer that the Seller legally and beneficially owns the Target Equity Interests, free from any Encumbrance.

		
	7.3
	The Buyer acknowledges and agrees that other than those warranties set out in Clause  and 7.2, no representations or warranties are, or shall be deemed as having been, explicitly or impliedly made by the Seller to the Buyer in relation to any Target Company, the Target Equity Interests or the Transaction.

		
	8.
	FURTHER AGREEMENT

		
	8.1
	Discussion with the Relevant Banks

At the reasonable request of the Buyer, the Seller shall provide its reasonable assistance to the Buyer in approaching and discussing with the Relevant Banks regarding the loans lent by them to the relevant Target Company(ies) or the Trading Subsidiary, in connection with the Transaction. For the avoidance of doubt, in no event shall the preceding provision be interpreted in such a way as to indicate or imply any obligation on the part of the Seller or any of its Affiliates towards the Buyer, any Target Company, the Trading Subsidiary or any creditor bank of any Target Company or the Trading Subsidiary, in respect of the loans borrowed by any Target Company or the Trading Subsidiary.
		
	8.2
	No acceleration of Shareholder Loan

		
	8.2.1
	The Buyer agrees to procure that:

		
	(a)
	Shandong Sun Paper Industry Joint Stock Co., Ltd. ("Sun ListCo") shall not, after the date of this Agreement, demand repayment by JV2 of the Sun ListCo Loan (or the relevant part thereof) prior to the scheduled maturity date of the same as provided under the Sun ListCo Shareholder Loan Agreement, as a result of or in connection with the Transaction; and

		
	(b)
	JV2 shall not, after the date of this Agreement, repay to the Sun ListCo the Sun ListCo Loan (or the relevant part thereof) prior to the scheduled maturity date of the same as provided under the Sun ListCo Shareholder Loan Agreement.

		
	8.2.2
	The Seller agrees that it will not, after the date of this Agreement, demand repayment by JV2 of the IP Loan (or the relevant part thereof) prior to the scheduled maturity date of the same as provided under the IP Shareholder Loan Agreement, as a result of or in connection with the Transaction, provided that༚

		
	(a)
	Sun ListCo will not demand the early repayment of the Sun ListCo Shareholder Loan (as described in Clause  above), and 

		
	(b)
	JV2 will not voluntarily prepay the Sun ListCo Loan (as described in 8.2.1(b)).

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

		
	8.3
	Scheduled Repayment of IP Loan

Notwithstanding Clause 8.2.2, both Parties acknowledge that JV2 (as the borrower) shall be obliged to repay the IP Loan (including the interest accrued thereon) to the Seller (as the lender) in accordance with the loan repayment schedule pursuant to the IP Shareholder Loan Agreement or otherwise pursuant to the terms of the IP Shareholder Loan Agreement. Further, the Buyer hereby guarantees to the Seller the due and punctual performance of each obligation of JV2 pursuant to the IP Shareholder Loan Agreement. The Buyer's obligations under the preceding provision shall be joint and several with the obligations of JV2 under the IP Shareholder Loan Agreement.
		
	8.4
	Intellectual Property

		
	8.4.1
	On the MOFCOM Approval Date, International Paper Company will give a written termination notice to JV1 in respect of the Trademark License Agreement between International Paper Company and JV1 dated 21 October 2006 ("Trademark License Agreement"), pursuant to which the Trademark License Agreement will terminate in accordance with the terms thereof in one-hundred and twenty (120) days after the date of the written termination notice. The rights and obligations of the parties to the Trademark License Agreement in connection with the termination shall be dealt with in accordance with the terms of the Trademark License Agreement.

		
	8.4.2
	The Buyer shall procure that the Target Companies and the Trading Subsidiary shall:

		
	(a)
	within twelve (12) months after the MOFCOM Approval Date, remove "International Paper" (in English) from any corporate, enterprise, trading names of the Trading Subsidiary (as the case may be) (and the Trading Subsidiary can only use "International Paper" (in English) always as part of its full company name before the afore-mentioned change of the Trading Subsidiary's corporate, enterprise and trading names is completed); and

		
	(b)
	within six (6) months after the MOFCOM Approval Date, unless otherwise allowed by the Seller, remove any brand, trademark, logo belonging to International Paper Company or its Affiliates, including "International Paper" (in English) and  "国际纸业" or "万国纸业" (as the case may be) (in Chinese) which are separately used, from all brands, labels, packaging and/or promotional materials, trademarks, trade names, service marks, trade dress, and logos used by the Target Companies or the Trading Subsidiary and stop exploiting any other intellectual property belonging to International Paper Company or its Affiliates.

		
	8.4.3
	Subject to Clause 8.4.2 and without prejudice to the rights of International Paper Company or its Affiliates to take any actions to protect and/or preserve their intellectual property rights, the Target Companies may keep their current company names (as described in Clause 8.4.4), provided however that: 

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

		
	(a)
	JV1 and JV2 can only use "International Paper" (in English), "国际纸业" or "万国纸业" (as the case may be) (in Chinese) always as part of their respective full company name; and

		
	(b)
	this Clause 8.4.3 shall not be interpreted in any way to indicate or imply any conveyance by the Seller, the International Paper Company or its Affiliates to the Buyer, any Target Company or the Trading Subsidiary of any intellectual property belonging to International Paper Company or its Affiliates concerning "International Paper" (in English), "国际纸业" or "万国纸业" (as the case may be) (in Chinese).   

		
	8.4.4
	For the purpose of Clause 8.4.3, both Parties acknowledge that, as of the date of this Agreement:

		
	(a)
	The name of JV1 is: "万国纸业太阳白卡纸有限公司" (in Chinese) and "International Paper & Sun Cartonboard Co., Ltd." (in English);

		
	(b)
	The name of JV2 is: "山东国际纸业太阳纸板有限公司" (in Chinese) and "Shandong International Paper & Sun Coated Paperboard Co., Ltd." (in English); and

		
	(c)
	The name of JV3 is: "山东万国太阳食品包装材料有限公司" (in Chinese) and "Shandong IP & Sun Food Packaging Co., Ltd." (in English).

		
	8.4.5
	Without prejudice to the rights of International Paper Company or its Affiliates to take any actions to protect and/or preserve their intellectual property rights, for the avoidance of doubt, both Parties acknowledge that the Target Companies may keep and use the trademarks which are legally owned by them and have been duly registered by them with the PRC Trademark Office as of the date of this Agreement. 

		
	9.
	TERMINATION

		
	9.1
	Termination of this Agreement

		
	9.1.3
	Upon the occurrence of any of the following events or circumstances, either Party (the "Terminating Party") may elect to terminate this Agreement by issuing a notice in writing to the other Party:

		
	(a)
	the AMB prohibits the completion of the Transaction (provided that the Buyer has used its best endeavours to obtain the PRC anti-trust clearance for the Transaction); 

		
	(b)
	the MOFCOM approval (as described in Clause ) is not obtained within nine (9) months after the date of this Agreement, provided that a Party shall not be entitled to terminate this Agreement under this clause if the above is due to its failure to perform any of its obligations under this Agreement or is otherwise attributable to it;

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

		
	(c)
	at any time prior to the MOFCOM Approval Date, the other Party (the "Default Party") is in material breach of any provision of this Agreement and such default (i) fails to be rectified, to the reasonable satisfaction of the Terminating Party, within thirty (30) days after notification by the Terminating Party to the Default Party of the default or (ii) is not capable of being cured, in the reasonable opinion of the Terminating Party.

		
	9.1.4
	In addition to Clause 9.1.1 and notwithstanding Clause 4.2, the Seller may (at its sole discretion) elect to terminate this Agreement by issuing a notice in writing to the Buyer:

		
	(c)
	if the Buyer fails to pay the Purchase Price (or any portion thereof) in accordance with Clause 2.3 and such default fails to be rectified within thirty (30) days from the date on which the Purchase Price (or any portion thereof) becomes payable under Clause 2.3; or

		
	(d)
	if the Buyer or a Target Company fails to submit to the SAIC all the necessary documentation required to complete the SAIC registration (as described in Clause 5) within thirty (30) days from the MOFCOM Approval Date.

		
	9.1.5
	In addition to Clause 9.1.1 and notwithstanding Clause 4.2, the Buyer may (at its sole discretion) elect to terminate this Agreement by issuing a notice in writing to the Seller if the Seller fails to provide any document which is required to be provided by the Seller under PRC applicable laws for the purpose of submission to MOFCOM (as described in Clause 4.1) or SAIC (as described in Clause 5) and the Seller fails to rectify within thirty (30) days from the date on which the Buyer requires in writing such document and provides in reasonable detail the statutory basis for requiring such document. 

		
	9.1.6
	For the avoidance of doubt, nothing in this Clause 9.1 shall be interpreted in any manner to prejudice the either Party's right to demand specific performance by the other Party of any of its obligation under this Agreement.

		
	9.2
	Effect of Termination

		
	9.2.1
	Each Party's further rights and obligations shall cease immediately upon termination of this Agreement, except that Clauses 10, 14, 15 and 16 shall survive the termination of this Agreement. Such termination shall not affect a Party's accrued rights and obligations at the date of termination.

		
	9.2.2
	Without prejudice to the Seller's rights under other provisions of this Agreement and the laws of the PRC, if the Seller elects to terminate this Agreement pursuant to Clause 9.1 due to a breach of this Agreement by the Buyer:

		
	(d)
	the Seller shall be entitled to the First Payment and the Buyer shall be deemed to have forfeited it; and

		
	(e)
	the Buyer shall, on demand of the Seller, indemnify the Seller against (i) all the costs incurred by the Seller relating to the negotiation, preparation, 

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

execution and performance by the Seller or its Affiliate of this Agreement and of each document referred to in it and (ii) any further losses suffered by the Seller as a result of such termination.
		
	9.2.3
	If this Agreement is terminated pursuant to Clause 9.1.1(a) or Clause 9.1.2, upon the demand of the Seller (at the Seller's sole discretion), the Buyer shall, and the Parties shall ensure that the Target Companies shall, take all necessary actions and sign all necessary documents to re-transfer/re-instate the Target Equity Interests back to the Seller, at nil consideration to the Seller, as soon as possible after such termination and, if necessary, apply to MOFCOM for its revocation of the MOFCOM approval letter(s) (as described in Clause 4.2) ("Equity Re-transfer"); in such case, the Buyer shall also be responsible for and indemnify the Seller against all the costs incurred by the Seller arising out of or in connection with the Equity Re-transfer.

		
	9.2.4
	Without prejudice to the Buyer's rights under other provisions of this Agreement and the laws of the PRC, if the Buyer elects to terminate this Agreement pursuant to Clause 9.1.3, the Seller shall pay twenty percent (20%) of the Purchase Price as liquidated damages to the Buyer.

		
	10.
	CONFIDENTIAL INFORMATION AND DISCLOSURE

		
	10.1
	Confidential information

The Parties agree and acknowledge that the contents of this Agreement and any information that has been, or may be, imparted in respect of the same by the Parties to each other, is strictly confidential in nature, and may not be disclosed to any third party (i) unless disclosure is required by applicable laws or by any rule of a listing authority or stock exchange on which the shares of a Party or its Affiliate are listed or traded or (ii) unless such information is or hereafter becomes, through no fault of either party, public knowledge.
		
	10.2
	Disclosure

Subject to Clause 10.1 above, following the date of this Agreement, the Seller or its Affiliates shall be entitled to make a public disclosure or press release in respect of the Transaction, provided that, so far as is practicable, the Seller shall notify the Buyer in advance of such disclosure or release and take into account the reasonable comments of the Buyer as to the content of such disclosure or release.
		
	11.
	MISCELLANEOUS 

		
	11.1
	Costs

Except where this Agreement or the relevant document provides otherwise, each Party shall pay its own costs relating to the negotiation, preparation, execution and performance by it of this Agreement and of each document referred to in it.

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

		
	11.2
	Taxes

The Seller and the Buyer shall bear its own stamp duty payable in the PRC in connection with the transfer of the Target Equity Interests under this Agreement. Except as otherwise provided in this Agreement, each of the Parties shall be responsible for its own tax liabilities arising from the transfer of the Target Equity Interests under this Agreement.
		
	11.3
	Amendment

Any amendment of this Agreement is valid only if it is in writing and signed by or on behalf of each Party.
		
	11.4
	Waiver

The failure to exercise or the delay in exercising a right or remedy provided by this Agreement or by law does not impair or constitute a waiver of such right or remedy. No single or partial exercise of a right or remedy provided by this Agreement or by law prevents further or any other exercise of such right or remedy or the exercise of another right or remedy.
		
	11.5
	Severability

The invalidity, illegality or unenforceability of a provision of this Agreement does not affect or impair the validity of the remainder of this Agreement.
		
	11.6
	Counterparts

This Agreement may be executed in any number of counterparts, each of which when executed and delivered is an original and all of which together evidence the same agreement.
		
	12.
	ENTIRE AGREEMENT

This Agreement constitutes the entire agreement and supersedes any previous agreements between the Parties relating to the subject matter of this Agreement.
		
	13.
	ASSIGNMENT

Neither Party shall assign or in any other way alienate any of its rights or obligations under this Agreement whether in whole or in part.
		
	14.
	NOTICES

		
	14.1
	Format of notice

A notice or other communication under or in connection with this Agreement (a "Notice") shall be (i) in writing; (ii) in the English and Chinese languages; and (iii) delivered personally or sent by a reputable international courier (e.g. FedEx, SF) or by fax to the Party due to receive the Notice at its address or fax number set out in Clause  or to such other addressee, address or fax number as the Party due to receive the Notice may specify 

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

by giving the other Party due to send the Notice not less than five (5) Business Days' written notice before the Notice is despatched.
		
	14.2
	Deemed delivery of notice

Unless there is evidence that it was received earlier, a Notice is deemed to have been duly given if (i) delivered personally, when left at the address set out in Clause ; (ii) sent by a reputable international courier, ten (10) Business Days after posting it; and (iii) sent by fax, when confirmation of its transmission has been recorded by the sender's fax machine.
		
	14.3
	Address and fax number

The address and fax number referred to in Clause  is:
	
				
	Name of Party
	Address
	Fax No.
	Marked for the attention of

	Seller
	17-18 F, West Building, Greenland Center, 600 Middle Longhua Road, Shanghai 200032
	86-21-61133201
	Cecilia Ho

	Buyer
	No. 1, Youyi Road, Yanzhou District, Jining City, Shandong Province
	+
	Li Hongxin

		
	14.4
	Any Notice form the Buyer to the Seller shall copy International Paper Company at the following address and fax number:

	
				
	Name
	Address
	Fax No.
	Marked for the attention of

	International Paper Company
	6420 Poplar Avenue, Tower III, Memphis, TN 38197
	1-901-214-9875
	C. Cato Ealy

		
	15.
	GOVERNING LAW AND JURISDICTION

		
	15.1
	Governing law

This Agreement shall be governed by and construed in accordance with the laws of the PRC.
		
	15.2
	Arbitration

		
	15.2.1
	The Buyer and the Seller agree that any dispute, controversy or claim arising out of or in connection with this Agreement, including any question regarding its existence, validity, interpretation, breach or termination, shall be referred to China International Economic and Trade Arbitration Commission ("CIETAC") 

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

for arbitration in accordance with the CIETAC Arbitration Rules in force as at the date of this Agreement ("Rules").  
		
	15.2.2
	The hearing of the arbitration shall take place in Shanghai.

		
	15.2.3
	The arbitration tribunal shall consist of three (3) arbitrators.  Each Party shall appoint one (1) arbitrator, and the two (2) arbitrators thus appointed shall appoint the third arbitrator.  If within thirty (30) days of a request from the other Party to do so a Party fails to appoint an arbitrator, or if the two (2) arbitrators fail to agree on the third arbitrator within thirty (30) days after the appointment of the second arbitrator, the appointment shall be made, upon request of a party, by the Chairman of CIETAC in accordance with the Rules, as amended herein.  

		
	15.2.4
	The languages of the arbitration proceedings shall be in Chinese and English.  Any arbitration award shall be made in writing and shall be final and binding on the Parties from the day it is made.  The parties undertake to carry out each and every arbitral award without delay.

		
	16.
	GOVERNING LANGUAGE

This Agreement is written in both English and Chinese versions. Both versions shall be of equal validity.
		
	17.
	COPY FOR SUBMISSION

		
	17.1
	The Parties agree that this Agreement shall be used for submission to MOFCOM (as described in Clause 4) and to SAIC (as described in Clause 5). 

		
	17.2
	Should MOFCOM or SAIC require submission of a separate equity transfer agreement ("By-entity SPA") in respect of the transfer of the JV1 Target Equity Interest, the JV2 Target Equity Interest and the JV3 Target Equity Interest respectively, the Parties shall prepare a By-entity SPA in respect of each Target Company on the basis of this Agreement, provided further that:

		
	17.2.1
	unless otherwise agreed between the Parties, to the extent practicable, the provisions of each By-entity SPA shall be substantially similar to the provisions of this Agreement; 

		
	17.2.2
	the rights and obligations of the Parties under the By-entity SPAs shall be the same as those under this Agreement; 

		
	17.2.3
	all the By-entity SPAs shall be simultaneously submitted to MOFCOM (as described in Clause 4) and the Parties shall use their best efforts to procure that MOFCOM shall approve the transactions contemplated under all the By-entity SPAs as a package deal; in the event that MOFCOM fails to approve the equity transfer transaction concerning any Target Company, the Parties shall apply to MOFCOM for the withdrawal of the approvals (if issued) for the equity transfer transactions concerning the other Target Companies;

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

		
	17.2.4
	if any By-entity SPA is terminated in accordance with the terms thereunder, the other By-entity SPAs shall be terminated as well (and a Party that commits a breach under any By-entity SPA shall be deemed to have committed a breach under this Agreement), in which case the provisions of Clause 9 shall apply mutatis mutandis; 

		
	17.2.5
	this Agreement shall be the governing agreement in respect of the Transaction as a whole and, in the event of any discrepancy between any provision of any By-entity SPA and any provision of this Agreement, between the Parties the provision of this Agreement shall prevail.

		
	18.
	EFFECTIVENSS

Upon execution of this Agreement by both Parties, this Agreement shall become effective as between the Parties as of 28 September 2015.

[The rest of this page is internationally kept blank.]

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

SCHEDULE 1 
DEFINITIONS
In this Agreement:
"Affiliate" means, with respect to any person, any other person which, directly or indirectly, controls, is controlled by or is under common control with the first mentioned person. For the purposes of this Agreement, "Control" means, with respect to any person, whether through the ownership of more than fifty per cent (50%) of the voting shares of such person, or the power of appointment or election of a majority of the directors or similar management organization of such person, or a contractual arrangement with such person or otherwise, the ability to direct the management and policies of such person. Any reference to "controlled" or "controlling" shall be construed accordingly. For the avoidance of doubt, unless otherwise provided in the Agreement, the Target Companies shall be deemed the Affiliates of the Seller prior to the MOFCOM Approval Date and the Affiliates of the Buyer as from the MOFCOM Approval Date;
"AMB" has the meaning given to it in Clause 3.1;
"Business Day" means any day other than a Saturday or Sunday or public holiday in the PRC;
"Buyer" has the meaning given to it in the Preamble;
"By-entity SPA" has the meaning given to it in Clause 17;
"CIETAC" has the meaning given to it in Clause 15.2.1;
"Default Party" has the meaning given to it in Clause .1;
"Encumbrance" means a mortgage, pledge or lien or other security interest;
"Equity Re-transfer" has the meaning given to it in Clause 9.2.3;
"First Payment" has the meaning given to it in Clause 2.3.1;
"Final Payment" has the meaning given to it in Clause 2.3.1;
"IP Loan" means the loan lent by the Seller via the intermediary bank to JV2 (as the borrower) under the IP Shareholder Loan Agreement;
"IP Shareholder Loan Agreement" means the entrustment loan agreement by and between the Seller (as the lender), Bank of China (Shanghai Branch) and JV2 (as the borrower) with a loan amount of RMB60.5 million;
"JV1", "JV2" and "JV3"  have the meanings given to them in the Recitals;
"JV Contracts" means the Joint Venture Contracts entered into by and between the Seller and the Buyer for the operation of the Target Companies.
"MOFCOM" means the Ministry of Commerce of the PRC or its local counterpart at the competent level to approve the Transaction in relation to change of shareholding structure of foreign-invested enterprises; 

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

"MOFCOM Approval Date" has the meaning given to it in Clause 4.2;
"Notice" has the meaning given to it in Clause ;
"PRC" means the People's Republic of China excluding, for the purposes of this Agreement, the Special Administrative Regions of Hong Kong and Macao and the territory of Taiwan;
"Purchase Price" has the meaning given to it in Clause 2.2.1;
"Relevant Banks" means the following banks: Nordea Bank, BNP Paribas, Sumitomo Mitsui, Mizuho, Deutsche Bank and HSBC;
"Revised Business License" has the meaning given to it in Clause 5;
"RMB" means Renminbi, the lawful currency of China.
"Rules" has the meaning given to it in Clause 15.2.1;
"SAIC" means the State Administration of Industry and Commerce or its local counterparts;
"SAIC Registration Date" has the meaning given to it in Clause 5;
"Second Payment" has the meaning given to it in Clause 2.3.1;
"Seller" has the meaning given to it in the Preamble;
"Seller's Bank Account" means the bank account of the Seller with the details set out below:
	
		
	Beneficiary Name
	International Paper Investment (Shanghai) Co., Ltd.
英特奈国际纸业投资༈上海༉有限公司

	Beneficiary Bank
	Citi Bank, Shanghai Branch
花旗银行上海分行

	Beneficiary Account
	1,755,667,214

"Sun ListCo" has the meaning given to it in Clause 8.2;
"Sun ListCo Loan" means the loan lent by Sun ListCo via the intermediary bank to JV2 (as the borrower) under the Sun ListCo Shareholder Loan Agreement;
"Sun ListCo Shareholder Loan Agreement" means the loan agreement entered into by and between Sun ListCo (as the lender), Industrial Bank Co., Ltd. and JV2 (as the borrower) with a loan amount of RMB49.5 million;
"Target Companies" or "Target Company" has the meaning given to it in the Recitals;
"Target Equity Interests" has the meaning given to it in Clause 2.1.1
"Terminating Party" has the meaning given to it in Clause .1;
"Trading Subsidiary" has the meaning given to it in Recitals;

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

"Transaction" has the meaning given to it in Clause . 
 

	
			
	520140-4-25-v7.1
	 
	03-40603029

	
		
	
	CLIFFORD CHANCE
DEUTSCHLAND LLP

	Draft Date: 27 November 2014

[Signature Page of the Equity Transfer Agreement]
EXECUTED by the following Parties:

SELLER: INTERNATIONAL PAPER INVESTMENT (SHANGHAI) CO., LTD.

/S/ CECILIA HO 
Name:  Cecilia Ho
Title: Director

BUYER: SHANDONG SUN HOLDING GROUP CO., LTD.

/S/ LU LI 
Name: Lu Li
Title: Authorized Signatory

	
			
	520140-4-25-v7.1
	 
	03-40603029EX-10.50

 Exhibit 10.50 

HOUGHTON MIFFLIN HARCOURT COMPANY 

NON-EMPLOYEE DIRECTOR DEFERRED COMPENSATION PLAN 

Effective February 23, 2016 

The Houghton Mifflin Harcourt Company Non-Employee Director Deferred Compensation Plan (the “Plan”) is intended to provide
non-employee directors the ability to defer certain compensation earned. The Plan is effective as of February 23, 2016 (the “Effective Date”) and permits the deferral of compensation received for services rendered after the Effective Date.
This Plan applies to all such compensation and all earnings thereon, as applicable (as described below). 
 ARTICLE I 

DEFINITIONS 
 Capitalized
terms used in this Plan, shall have the meanings specified below. 
 1.1 “Account” or “Accounts” shall
mean all of the Deferral Subaccounts that are specifically provided in this Plan. 
 1.2 “Affiliate” means (i) any person
or entity that directly or indirectly controls, is controlled by or is under common control with the Company and/or (ii) to the extent provided by the Committee, any person or entity in which the Company has a significant interest. The term
“control” (including, with correlative meaning, the terms “controlled by” and “under common control with”), as applied to any person or entity, means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of such person or entity, whether through the ownership of voting or other securities, by contract or otherwise. 

1.3 “Beneficiary” or “Beneficiaries” shall mean the person or persons designated in writing by a Participant
in accordance with procedures established by the Committee or the Plan Administrator to receive the benefits specified hereunder in the event of the Participant’s death. No beneficiary designation shall become effective until it is filed with
the Committee or the Plan Administrator. If there is no such designation or if there is no surviving designated Beneficiary, then the Participant’s surviving spouse shall be the Beneficiary. If there is no surviving spouse to receive any
benefits payable in accordance with the preceding sentence, the duly appointed and currently acting personal representative of the Participant’s estate (which shall include either the Participant’s probate estate or living trust) shall be
the Beneficiary. 
 1.4 “Board of Directors” or “Board” shall mean the Board of Directors of the Company.

 1.5 “Change in Control” shall have the meaning given such term under the Company’s 2015 Omnibus Incentive Plan (or
any successor plan) (the “Equity Plan”). 
 1.6 “Code” shall mean the Internal Revenue Code of 1986, as
amended. Reference in the Plan to any section of the Code shall be deemed to include any regulations or other interpretative guidance under such section, and any amendments or successor provisions to such section, regulations or guidance. 

 1.7 “Committee” shall mean the Compensation Committee of the Board or a
committee thereof appointed to administer the Plan. 
 1.8 “Company” shall mean Houghton Mifflin Harcourt Company, a
Delaware corporation. 
 1.9 “Compensation Committee” shall mean the Compensation Committee of the Board. 

1.10 “Deferral Subaccount” shall mean the bookkeeping account maintained by the Company for each Participant that is credited
with amounts equal to (i) the portion of the Participant’s Director Payments that he or she elects to defer, and (ii) earnings and losses attributable thereto. 

1.11 “Director” shall mean a non-employee member of the Board. 

1.12 “Director Payments” shall mean, with respect to any Director, the compensation payable in the form of the annual
retainer, committee fees or other cash compensation. 
 1.13 “Disability” shall mean a circumstance where the Company or
its subsidiaries shall have cause to terminate a Participant’s service on account of “disability,” as defined in any then-existing consulting or similar services agreement between the Participant and the Company or its subsidiaries
or, in the absence of such an agreement, it means cause for termination of the Participant’s service due to a determination that the Participant is disabled in accordance with a long-term disability insurance program maintained by the Company
or a determination by the U.S. Social Security Administration that the Participant is totally disabled; provided, however, that a Participant shall not have a Disability for purposes of the Plan unless the Participant is unable to
engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or the
Participant is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a
period of not less than three months under an accident and health plan covering the employees of the Company or its subsidiaries. 
 1.14
“Distributable Amount” shall mean the vested balance in a Participant’s Accounts subject to distribution in a given Plan Year. 

1.15 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 

1.16 “Fund” or “Funds” shall mean one or more of the notional investment options selected by the Committee,
or its designee, to which Participants may have an opportunity to elect to make deemed investments pursuant to Section 3.4. Funds may include, without limitation, the investment alternatives available under the Company’s 401(k) plan as in
effect from time to time, investment in the Company’s common stock, or a specified fixed rate of return. 

  
 2 

 1.17 “In-Service Distribution Date” shall mean, in the case of a distribution to
be made while the Participant is still performing services for the Company or its subsidiaries, the month of June of the Plan Year elected by the Participant. 

1.18 “Participant” shall mean any Director who becomes a Participant in this Plan in accordance with Article II. 

1.19 “Plan” shall mean this Houghton Mifflin Harcourt Company Non-Employee Director Deferred Compensation Plan. 

1.20 “Plan Administrator” shall mean, if applicable, any record keeper appointed by the Company (which may include an
Affiliate of the Company) to perform administrative and other functions associated with the Plan. 
 1.21 “Plan Year” shall
mean the Company’s fiscal year, which as of the Effective Date is the annual period commencing January 1 and ending the following December 31. 

1.22 “Section 409A” shall mean Section 409A of the Code. 

1.23 “Separation from Service” shall mean that the service provider relationship with the Company and any entity that is to
be treated as a single employer with the Company for purposes of Treasury Regulations Section 1.409A-1(h) (the “Single Employer”) terminates such that the facts and circumstances indicate it is reasonably anticipated that no further
services will be performed or that the level of bona fide services the Participant would perform after the termination would permanently decrease to no more than 20 percent of the average level of bona fide services performed (over the immediately
preceding 36-month period (or the full period of services to the Single Employer if the Participant has been providing services to the Single Employer less than 36 months). 

1.24 “Separation from Service Distribution Date” shall mean, in the case of a distribution on account of a Separation from
Service, the first month following the month in which the Separation from Service occurs (or, if the Participant is a Specified Employee on the date of the Separation from Service, the seventh month following the month in which the Separation from
Service occurs). 
 1.25 “Specified Employee” shall mean a “specified employee” within the meaning of Section
409A. 
 1.26 “Unforeseeable Emergency” shall mean a severe unforeseeable financial hardship as defined in Section 409A,
including a severe financial hardship resulting from (i) an illness or accident of the Participant, the Participant’s spouse, the Participant’s designated Beneficiary, or the Participant’s dependent (as defined in Section 152 of the
Code, without regard to section 152(b)(1), (b)(2), and (d)(1)(B)), (ii) the loss of the Participant’s property due to casualty, or (iii) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the
Participant’s control. 

  
 3 

 ARTICLE II 

ELIGIBILITY FOR PARTICIPATION 

2.1 Eligibility of Directors. Each Director shall be eligible to participate in the Plan. 

2.2 Participation. A Director shall become a Participant in the Plan by electing to make a deferral of Director Payments in a Plan
Year in accordance with Article III. 
 2.3 Amendment of Eligibility Criteria. The Committee may, in its discretion, change the
criteria for eligibility for any reason, including to comply with any applicable laws relating to the operation of the Plan. Eligibility for participation in one Plan Year does not guarantee eligibility to participate in any future Plan Year.

 ARTICLE III 

ELECTIONS 
 3.1 Election
of Director to Defer Director Payments or Equity Compensation. 
 (a) Timing of Election to Defer Director Payments and/or Equity
Compensation. A Participant may elect to defer Director Payments on or prior to December 31 of the calendar year prior to the calendar year for which such Director Payments would be earned. If a Participant is permitted by the Committee to elect
to defer any annual restricted stock unit or other award to be issued to such Participant under the Equity Plan, such deferral shall be made on or prior to December 31 of the calendar year prior to the calendar year of the grant; provided that, the
deferral may be made at any time prior to the grant date, if the award requires the Participant’s continued service for not less than 12 months after the grant date in order to vest in such award subject to the provisions of Section 409A. To
the extent a Participant is permitted to defer settlement of awards issued under the Equity Plan, the terms and conditions of the Plan applicable to deferrals of Director Payments shall apply to such deferrals mutatis mutandis unless the
context clearly requires otherwise. 
 (b) Amount Eligible for Deferral. As of the Effective Date, a Participant may elect to
defer up to 100% of his Director Payments. The Committee may change the amount that may be deferred in respect of any Plan Year at any time, or from time to time. 

3.2 Special Rule. Notwithstanding the provisions of Section 3.1(a), a Participant who has not previously been eligible to
participate in another elective deferred compensation plan (that would be treated as the same type of plan as the Plan for purposes of Section 409A) may make an initial deferral election under the Plan in accordance with the other provisions of
Section 3.1, as applicable, within 30 calendar days of first becoming eligible to participate under the Plan; provided, however, that in such event such deferral elections shall apply only to Director Payments that are earned after the date of such
election. 
 3.3 Elections as to Time and Form of Payment. At the time of making an election to defer Director Payments, the
Participant shall make an election regarding the time and, if permitted by the Committee, the form of payment of the Director Payments deferred for that Plan Year (including earnings and losses attributable thereto). 

(a) Elections as to Time. A Participant shall elect to receive a distribution of his or her Director Payments to be deferred for a
Plan Year (and all earnings and losses attributable thereto) (i) on an In-Service Distribution Date, or (ii) on a Separation from Service Distribution Date; provided, however, that a Participant’s In-Service Distribution Date
may be no earlier than three years following the date on which the deferral of Director Payments is made. 

  
 4 

 (b) Elections as to Form. A Participant may be provided an opportunity to elect the
form of the distribution of his or her Director Payments, in a lump sum payment or in installments over a period of no more than fifteen years. If no such opportunity is offered or election is not made, the Participant shall be deemed to have
elected to receive payment in a lump sum. Any election to receive payment in installments is subject to the terms of Article VI. 
 (c)
Application of Election. An election as to time and form of payment made shall apply to the Director Payments deferred for the applicable Plan Year. 

(d) No Changes Permitted. Except as permitted by Section 3.3(e) below, elections as to time and form of payment shall become
irrevocable as of December 31 of the Plan Year prior to the calendar year for which such Director Payments are deferred, or as of the grant date with respect to any deferral of an award under the Equity Plan that requires the Participant’s
continued service in order to vest in the award as contemplated by Section 3.1(a). 
 (e) Subsequent Changes in Time and Form of
Payment. With prior approval of the Committee, a Participant may delay the timing of a previously-scheduled payment or may change the form of a payment only if such subsequent deferral election meets all of the following requirements: 

(i) the subsequent deferral election shall not take effect until at least 12 months after the date on which it is made; 

(ii) the election must be made at least 12 months prior to the date the payment is scheduled to be made. For installment payments, the
election must be made at least 12 months prior to the date the first payment in such installment was scheduled to be made; and 
 (iii) the
subsequent deferral election must delay the payment for at least five years from the date the payment would otherwise have been made. For installment payments, the delay is measured from the date the first payment was scheduled to be made. 

A Participant may make only one subsequent change with respect to deferrals made for a specific Plan Year. 

(f) Manner of Election. As determined by the Committee, initial elections and subsequent elections, if any, may be made in writing
or through an electronic medium such as a website enrollment window or through an email enrollment form or as otherwise specified by a Plan Administrator, or through such other method determined by the Committee, provided that there is sufficient
record of when such election is made. 

  
 5 

 3.4 Elections as to Deemed Investment Choices. 

(a) At the time of making the deferral election, a Participant may be given the opportunity to make an election regarding how such Director
Payments shall be deemed to be invested for purposes of determining the amount of earnings or losses to be credited to the Participant’s Accounts. If no such election opportunity is provided or no such election is made, then the deferred
Director Payments shall be deemed invested in Company common stock or other default Fund selected by the Committee from time to time. 
 (b)
The Committee shall identify the Funds periodically made available for the notional investment of Accounts, and shall periodically communicate the available Funds to Participants. The Committee may alter, modify, eliminate or replace any Funds and,
if it does so, it may provide affected Participants a different and/or modified Fund in place of the Fund being altered, modified, eliminated or replaced. To the extent Participants are offered an opportunity to select and/or modify the selection of
the Funds in which their Accounts will be deemed invested, such selection and timing of such selection shall be communicated to the Company or Plan Administrator in such form and at such times as shall be determined by the Committee. 

ARTICLE IV 
 DEFERRAL
ACCOUNTS 
 4.1 Deferral Subaccount. The Company or Plan Administrator shall establish and maintain a Deferral Subaccount for
each Participant under the Plan. A Participant’s Deferral Subaccount shall be credited as follows: 
 (a) on the day the amounts are
withheld and/or deferred from a Participant’s Director Payments, with an amount equal to the Director Payments deferred by the Participant; and 

(b) unless otherwise determined by the Committee, no less frequently than monthly to reflect the equivalent of the earnings, gains and losses
that the Deferral Subaccount would have experienced had it actually been invested in the Funds chosen by the applicable Participant (or in the default Fund, if and as applicable). 

ARTICLE V 
 VESTING

 5.1 Vesting. A Participant shall be 100% vested at all times in his or her Deferral Subaccount. 

ARTICLE VI 

DISTRIBUTIONS 

Distributions from the Plan shall be made only in accordance with this Article VI. All distributions shall be in in Company common stock
unless otherwise specified by the Committee. 
 6.1 Distribution of Accounts While Still Performing Services or Upon Separation from
Service (if not a Specified Employee). Except as otherwise provided in Section 6.2(b) and (c), in respect of all Distributable Amounts payable in a lump sum on an In-Service Distribution Date or on a Separation from Service, the value
thereof shall be determined as of the last day of 

  
 6 

 the month prior to the month in which the In-Service Distribution Date or Separation from Service occurs, as
applicable and the distribution thereof shall be made as soon as administratively possible (and in no event later than 90 days) thereafter. In respect of all Distributable Amounts payable in installments on an In-Service Distribution Date or on a
Separation from Service, all installments shall be valued as of the last day of the month prior to the month in which the date of distribution is scheduled to occur, and the distribution thereof shall be made as soon as administratively practicable
(and in no event later than 90 days) thereafter. 
 6.2 Distribution of Accounts for “Specified Employees”. For
Distributable Amounts payable in a lump sum, the value thereof shall be determined as of the last day of the sixth month following the Separation from Service, and the distribution thereof shall be made as soon as administratively possible (and in
no event later than 90 days) thereafter. For Distributable Amounts payable in installments, (i) the first installment shall be valued as of the last day of the sixth month following the Separation from Service, and the distribution thereof
shall be made as soon as administratively possible (and in no event later than 90 days) thereafter, and (ii) each subsequent installment shall be valued as of the last day of the month prior to the month in which the date of distribution is
scheduled to occur, and the distribution thereof shall be made as soon as administratively possible (and in no event later than 90 days) thereafter. For the avoidance of doubt, under no circumstances shall two installments be paid in a single
calendar year. 
 (a) Death. In the case of the death of a Participant, either while providing services to the Company or its
subsidiaries, or prior to distribution of the Participant’s entire Account balance, the Participant’s Account balance shall be distributed to the Participant’s Beneficiary as soon as administratively possible and in no event later
than 90 days following the death of the Participant. The value of the Participant’s Account shall be determined as of the date on which the Participant dies. 

(b) Disability. In the case of the Disability of a Participant prior to the commencement of distribution of the Participant’s
Account balance, the Participant’s Account balance shall be distributed to the Participant in a lump sum as soon as administratively possible (and in no event later than 90 days) after it has been determined that the Participant suffers
from a Disability. The value of the Participant’s Account shall be determined as of the date on which it has been determined that the Participant suffers from a Disability. 

6.3 Unforeseeable Emergency. A Participant shall be permitted to elect a distribution from his or her Deferral Subaccount prior to
the date the Accounts were otherwise to be distributed in the event of an Unforeseeable Emergency, subject to the following restrictions: 

(a) the election to take a distribution due to an Unforeseeable Emergency shall be made by requesting such a distribution in writing to the
Committee, including the amount requested and a description of the need for the distribution; 
 (b) the Committee shall make a
determination, in its sole discretion, that the requested distribution is on account of an Unforeseeable Emergency; and 

  
 7 

 (c) the Unforeseeable Emergency cannot be relieved (i) through reimbursement or compensation by
insurance or otherwise, (ii) by liquidation of the Participant’s assets, to the extent the liquidation of assets would not itself cause severe financial hardship, or (iii) by cessation of deferrals under this Plan. 

The amount determined by the Committee as distributable due to an Unforeseeable Emergency shall be paid within 30 days after the request for
the distribution is approved by the Committee. The value of the Participant’s Account shall be determined as of the date on which the distribution request was made. 

6.4 Valuation Date. In the event that any valuation date contemplated by Section 6.1, Section 6.2 or Section 6.3 is not a business
day, then the valuation date shall be the immediately preceding business day. 
 6.5 Change in Control. Notwithstanding anything to
the contrary in this Article VI, in the event that a Change in Control occurs that is also a “change in control” within the meaning of Section 409A, the Participant’s Account balance shall be distributed to the Participant as soon as
administratively possible and in no event later than 14 days following the occurrence of the Change in Control. The value of the Participant’s Account shall be determined as of the date on which the Change in Control occurs. 

ARTICLE VII 

ADMINISTRATION 
 7.1
Committee. The Plan shall be administered by the Committee, which may delegate its duties and powers in whole or in part as it deems appropriate. The Committee is authorized to interpret the Plan, to establish, amend and rescind any
rules and regulations relating to the Plan, and to make any other determinations that it deems necessary or desirable for the administration of the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency
in the Plan in the manner and to the extent the Committee deems necessary or desirable. 
 7.2 Construction and
Interpretation. The Committee shall have full discretion to construe and interpret the terms and provisions of this Plan, which interpretations or construction shall be final and binding on all parties, including but not limited to the
Company and any Participant or Beneficiary. 
 7.3 Compensation, Expenses and Indemnity. The members of the Committee shall serve
without compensation for their services hereunder. The Committee is authorized at the expense of the Company to employ such legal counsel or other advisors as it may deem advisable to assist in the performance of its duties
hereunder. Expenses and fees in connection with the administration of the Plan shall be paid by the Company. 

  
 8 

 ARTICLE VIII 

MISCELLANEOUS 
 8.1
Unsecured General Creditor. Participants and their Beneficiaries, heirs, successors, and assigns shall have no legal or equitable rights, claims, or interest in any specific property or assets of the Company. No assets of the Company shall be
held in any way as collateral security for the fulfilling of the obligations of the Company under this Plan. Any and all of the Company’s assets shall be, and remain, the general unpledged, unrestricted assets of the Company. The Company’s
obligation under the Plan shall be merely that of an unfunded and unsecured promise of the Company to pay money in the future, and the rights of the Participants and Beneficiaries shall be no greater than those of unsecured general creditors. It is
the intention of the Company that this Plan be unfunded for purposes of the Code and for purposes of Title I of ERISA. 
 8.2 Restriction
Against Assignment. The Company shall pay all amounts payable hereunder only to the person or persons designated by the Plan and not to any other person or corporation. No part of a Participant’s Accounts shall be liable for the debts,
contracts, or engagements of any Participant, his or her Beneficiary, or successors in interest, nor shall a Participant’s Accounts be subject to execution by levy, attachment, or garnishment or by any other legal or equitable proceeding, nor
shall any such person have any right to alienate, anticipate, sell, transfer, commute, pledge, encumber, or assign any benefits or payments hereunder in any manner whatsoever. 

8.3 Withholding. The Company or its subsidiaries shall have the right to reduce any payment (or compensation) by the amount of any
required tax withholding due in respect of such compensation. 
 8.4 Amendment, Modification, Suspension or Termination. The
Committee may amend, modify, suspend or terminate the Plan in whole or in part, except that no amendment, modification, suspension or termination shall have any retroactive effect to reduce any amounts allocated to a Participant’s Accounts.

 8.5 Governing Law. Except to extent preempted by Federal law, this Plan shall be governed by and construed in accordance with
the internal laws of the State of Delaware applicable to contracts made and performed wholly within the State of Delaware, without giving effect to the conflict of laws provisions thereof. 

8.6 Receipt or Release. Any payment to a Participant or the Participant’s Beneficiary in accordance with the provisions of the
Plan shall, to the extent thereof, be in full satisfaction of all claims against the Committee and the Company and its subsidiaries. The Committee may require such Participant or Beneficiary, as a condition precedent to such payment, to execute a
receipt and release to such effect. 
 8.7 Limitation of Rights and Service Relationship; No Uniformity of Treatment. Neither
the establishment of the Plan nor any modification thereof, nor the creating of any fund or account, nor the payment of any benefits shall be construed as giving to any Participant, or Beneficiary or other person any legal or equitable right against
the Company or its subsidiaries except as provided in the Plan; and in no event shall the terms of service relationship of any Participant be modified or in any way be affected by the provisions of the Plan. There is no obligation for uniformity of
treatment of Participants or holders of Accounts. The terms and conditions of the Plan and the Board’s determinations and interpretations with respect thereto need not be the same with respect to each Participant (whether or not such
Participants are similarly situated). 

  
 9 

 8.8 Headings. Headings and subheadings in this Plan are inserted for convenience of
reference only and are not to be considered in the construction of the provisions hereof. 
 8.9 Section 409A. All provisions of the
Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code (“Section 409A”). If the Committee determines that any amounts payable hereunder may
be taxable to a Participant under Section 409A, the Company may (i) adopt such amendments to the Plan and appropriate policies and procedures, including amendments and policies with retroactive effect, that the Committee determines necessary or
appropriate to preserve the intended tax treatment of the benefits provided by the Plan and/or (ii) take such other actions as the Committee determines necessary or appropriate to avoid or limit the imposition of an additional tax under Section
409A; provided, that neither the Company nor any of its subsidiaries nor any other person or entity shall have any liability to a Participant or Beneficiary with respect to the tax imposed by Section 409A. Notwithstanding anything to the contrary
herein, if the period for making a payment under the Plan would cover two taxable years, the Participant shall not be permitted to elect the year of such payment which decision shall be made solely by the Company. 

  
 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00254-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00254-of-00352.parquet"}]]