Document:

EXHIBIT 10.17

 

Principal amount of Note: £95,000,000.00

 

HANSON BUILDING PRODUCTS LIMITED

(the “Company”)

 

(Incorporated in England and Wales under the Companies Act 2006)

 

NOTE DUE [·]

 

RECITALS:

 

(A)                              The Company had in accordance with its Articles of Association and by a resolution of its Board of Directors, created the floating rate unsecured notes due 31 August 2017 (the “Original Note Deed”).

 

(B)                              The Original Note Deed was executed by the Company to Hanson Packed Products Limited on 1 September 2014 (the “Original Issue Date”) at which time the notes constituted by the Original Note Deed (the “Original Notes”) were issued to Hanson Packed Products Limited.

 

(C)                              This deed (the “Note Deed”) is entered into to refinance the outstanding Original Notes issued on the Original Issue Date on the terms and conditions set out herein.

 

IN WITNESS WHEREOF:

 

1                                                  This deed constitutes floating rate unsecured notes due [·] (the “Notes”)

 

2                                                  The Notes are issued by the Company to Hanson Packed Products Limited, whose registered office is at Hanson House, 14 Castle Hill, Maidenhead, Berkshire, SL6 4JJ (the “Holder”, which expression shall include its successors and assigns and where applicable any joint holders of the Notes) in full settlement.

 

3                                                  The maximum amount of Notes issued pursuant to this Note Deed is in a principal amount of £95,000,000.00 or such lesser amount following repayment by the Company in accordance with this Note Deed (the “Principal Amount”).

 

4                                                  The Company may by giving one month prior notice, or less by mutual agreement, repay the Notes, in full or in part, but any unpaid or accrued interest must be repaid before the Principal Amount.

 

5                                                  The Holder may demand a full or partial repayment of the Notes and any unpaid or accrued interest without any period of notice in the event of the occurrence of an Extraordinary Event (as such term is defined in paragraph 8 of Appendix I hereto.

 

6                                                  Unless previously redeemed or repurchased, the Company will pay the unpaid Principal Amount, together with any unpaid interest, in full to the Holder on 31 August 2017 (the “Payment Date”).

 

7                                                  The Notes shall bear interest at the GBP 3 month LIBOR rate plus a margin of 2.5% per annum (the “Specified Rate”).

 

8                                                  The Notes are issued subject to and with the benefit of the Conditions set out in Appendix I and Appendix II hereto (the “Conditions”), which Conditions are deemed to be part of this Note as if set out herein in full.  The Note shall be held subject to and with the benefit of the Conditions and of the provisions in the Appendices, all of which shall be binding on the Company and the Holder and all persons claiming through them respectively.

 

9                                                  The Holder (and any subsequent holder of any part of the Notes) will be entitled without charge to one certificate duly executed by the Company for the aggregate amount of Notes

 

 

registered in his name (the “Certificate”).  Every Certificate shall bear a denoting number and shall be in the form of substantially in the form set out in Appendix III and shall have the Conditions endorsed on such Certificate.

 

10                                           When the Holder has redeemed part only of its Notes, the old Certificate shall be cancelled and a new Certificate for the balance of such Notes issued without charge.

 

11                                           All payments in respect of the Note shall be made in pounds sterling (£) in immediately available cleared funds.

 

12                                           The Notes are transferable in amounts or integral multiples of £1,000.

 

13                                           The Company shall at all times keep and maintain at its registered office a register of Holders pursuant to Condition 13.

 

14                                           Any modification of this Note Deed and the Conditions shall be carried out in accordance with the provisions of Condition 15.

 

15                                           Meetings of Holders may be convened and held in accordance with the provisions of Appendix II.

 

16                                           This Note Deed and Conditions shall be governed by, and construed in accordance, with English law.

 

EXECUTED AND DELIVERED AS A DEED on the date appearing at the end of this Note Deed.

 

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APPENDIX I

 

The Conditions

 

1                                                  INTERPRETATION

 

1.1                                        In this Note Deed, the Conditions and the Certificate:

 

1.1.1                             references to Conditions are to these conditions (as set out in Appendices I and II) as from time to time modified in accordance with Condition 15; and

 

1.1.2                             words denoting the singular include the plural and vice versa; words denoting one gender include the other genders and words denoting a person include a corporation and an unincorporated association of persons.

 

1.2                                        The headings in these Conditions do not affect their interpretation.

 

1.3                                        The validity of the Notes shall not be impaired as a result of one or more of its provisions being or becoming legally void or as a result of any gaps it may have. It is agreed that a void or missing provision will be replaced by such legally valid provision as the parties would have agreed to on the basis of the economic intent they pursue with the Notes had they previously considered the point.

 

2                                                  REPAYMENT, PURCHASE AND REDEMPTION

 

2.1                                        The Company shall at any time be entitled, upon giving to the Holder not less than one month prior notice, or less by mutual agreement, to redeem the Notes in multiples of £1 then in issue at par together with accrued interest, calculated in accordance with Condition 3 up to but excluding the date of redemption.

 

2.2                                        The Holder may demand a full or partial repayment of the Notes and any unpaid or accrued interest without any period of notice upon the occurrence of an Extraordinary Event.

 

2.3                                        The Company may at any time purchase any Notes at any price by tender, private treaty or otherwise by agreement with the Holder.

 

2.4                                        Unless previously redeemed or repurchased by the Company, the Notes shall be repaid in full on the Payment Date together with accrued interest calculated in accordance with Condition 3 up to but excluding that date.

 

3                                                  INTEREST

 

3.1                                        Until such time as the Notes are redeemed or repurchased by the Company in full in accordance with the provisions of the Note Deed or these Conditions, interest on the Principal Amount shall fall due in arrears on 30 September, 31 December, 31 March and 30 June in each year or, if such a day is not a Business Day, on the immediate following Business Day (each such date being, the “Interest Payment Date”) in respect of the Interest Periods (as defined below) ending on but excluding those dates.

 

3.2                                       In these Conditions, the period from and including the date of the issue of the Notes up to but excluding the first Interest Payment Date and the period from and including that or any subsequent Interest Payment Date up to but excluding the next following Interest Payment Date is called an “Interest Period”.  Where an Interest Period would otherwise end after the Payment Date, it shall be deemed to have ended on the Payment Date.

 

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3.3                                        The rate of interest on the Notes for each Interest Period is the percentage rate per annum which is the Specified Rate.

 

3.4                                        If the Company fails to pay any cash amount payable by it under the Notes on the due date (the unpaid balance being an “Overdue Amount”) then default interest shall accrue on the Overdue Amount from (and including) the due date to (but excluding) the date such Overdue Amount is paid in full, both before and after judgment.  Default interest shall be payable on an Overdue Amount at a rate of 3 per cent. above the Specified Rate and shall be payable on demand and, if not paid, compounded, quarterly.  The Holder reserves the right to prove further compensation of damages caused by any late payment.

 

3.5                                        Each instalment of interest shall be calculated by applying the rate of interest specified in Condition 3.3 to the Principal Amount held by each Holder (or Holders in the case of joint holders), multiplying such product by the actual number of days elapsed in the relevant Interest Period divided by 360 and rounding the resulting figure to the nearest penny (rounding upwards).

 

4                                                  TRANSFERS

 

4.1                                        A Holder may transfer his Notes or any part (being an amount or integral multiple of £1,000) by instrument of transfer in writing in any usual form (or in another form approved by the Company) and the instrument shall be executed by or on behalf of the transferor.

 

4.2                                        The transferor is deemed to remain the holder of the Notes until the name of the transferee is entered in the Register in respect of it.

 

4.3                                        Each instrument of transfer shall be sent to, or left for registration at, the registered office of the Company for the time being, and shall be accompanied by the Note(s) to be transferred and any other evidence that the Company may require to prove the title of the transferor or his right to transfer the Note(s) (and, if such instrument is executed by some other person on his behalf, the authority of that person to do so). All instruments of transfer that are registered may be retained by the Company.

 

4.4                                        No transfer of the Note(s) shall be registered in respect of which there has been a notice of repayment.

 

4.5                                        The Company may not charge a fee for registering the transfer of a Note or other document relating to or affecting the title to a Note or the right to transfer it or for making any other entry in the register.

 

4.6                                        A copy of this instrument shall be kept at the Company’s registered office. A Holder (and any person authorised by a Holder) may inspect that copy of the instrument at all reasonable times during office hours.

 

5                                                  COLLATERAL, PROHIBITED USAGE OF THE PRINCIPAL AMOUNT AND FURTHER COVENANTS

 

5.1                                        The Notes are granted without provision of collateral.  However, if there is a material adverse effect on the business or financial conditions of the Company, which adversely affects its ability to perform any of its payment obligations under the Note Deed, the Holder may request the provision of collateral which, at the Holder’s sole discretion, is adequate security for the Notes.

 

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5.2                                        The Company has not and will not (and the Company shall not permit any of its subsidiaries to) use the Principal Amount for the purpose of financing the activities of persons currently subject to any US sanctions administered by the Office of Foreign Assets Control of the US Department of Treasury (OFAC).

 

5.3                                        The Company will not (and the Company shall not permit any of its subsidiaries to) enter into any amalgamation, merger or demerger without the prior written consent of the Holder.

 

5.4                                        The Company will not (and the Company shall not permit any of its subsidiaries to) create or permit to subsist any mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect without the prior written consent of the Holder.

 

5.5                                        The Company will not (and the Company shall not permit any of its subsidiaries to) incur financial indebtedness without the prior written consent of the Holder unless the incurred indebtedness is exclusively used to refinance existing debt.

 

5.6                                        The Company will not (and the Company shall not permit any of its subsidiaries to) enter into any sale and lease back transaction without the prior written consent of the Holder.

 

6                                                  WINDING-UP

 

Any person becoming entitled to the Notes in consequence of the winding-up of the Holder or otherwise by operation of law may upon producing such evidence as the Company shall reasonably require be registered itself as the holder of such Notes.  The Company may withhold payment of the Principal Amount in respect of such Notes until such person is registered, upon which event the Company shall pay to the then Holder all amounts so due and payable.

 

7                                                  PAYMENTS

 

7.1                                        Payment of the Principal Amount and any other sums to be made under this Note Deed will be made by the Company to the Holder whose name and address appears in the register to be maintained by the Company (the “Register”) (or in the case of joint Holders to that one whose name appears first in the Register) on the relevant Interest Payment Date and/or the Payment Date in immediately available funds to such account at a London clearing bank as the Holder or first named Holder shall have designated in writing to the Company or, if no such account has been so designated, by bank cheque drawn on an account at a London clearing bank and either sent on the relevant Interest Payment Date and/or the Payment Date at the risk of the Holder of the Note(s) by prepaid first class letter addressed to the Holder or, in the case of joint Holders, the first named Holder at such Holder’s registered address as set out in the Register or delivered by hand to the Holder.  Delivery of any such bank cheque shall for all purposes be deemed to be payment and satisfaction of the said monies and a good discharge to the Company for the same.

 

7.2                                        Any payment to be made under the Note Deed on a day which is not a Business Day shall be made on the immediate following Business Day.  For the purposes of this Condition 7.2, “Business Day” means any day (other than a Saturday or Sunday) on which clearing banks are open for business in London.

 

7.3                                        Those counterclaims of the Company which the Holder has expressly accepted or which have legally enforceable character can be set off against claims of the Holder arising from the Note Deed. This also applies to rights of retention bearing on claims of the Holder.

 

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8                                                  NOTES IMMEDIATELY REPAYABLE

 

8.1                                        The Holder shall be entitled to require all or part of the Notes registered in the Holder’s name (so far as not previously redeemed or repurchased and unless otherwise agreed by the Holder) to be repaid immediately at par, together with accrued interest, in each of the following events (the “Extraordinary Events”):

 

8.1.1                             a material adverse effect on the business or financial conditions of the Company, which adversely affects its ability to perform any of its payment obligations under the Note Deed;

 

8.1.2                             the making of an order by a competent court or the passing of an effective resolution for the winding-up or dissolution of the Company or the transfer of all or substantially the whole of the assets of the Company to another entity (other than for the purposes of reconstruction, amalgamation or merger);

 

8.1.3                             any corporate action, legal proceedings or other procedure or step is taken in relation to:-

 

(a)                                          the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of the Company;

 

(b)                                          a composition, compromise, assignment or arrangement with any creditor of the Company;

 

(c)                                           the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager or other similar officer in respect of the Company or any of its assets,

 

or any analogous procedure or step is taken in any jurisdiction;

 

8.1.4                             the Company ceases or threatens to cease to carry on its business or a substantial part of its business, save where such business is transferred to another company within the group;

 

8.1.5                             any expropriation, attachment, sequestration, distress or execution or any analogous process in any jurisdiction affects any asset or assets of the Company and is not discharged within 30 days

 

8.1.6                             the refusal of the Company to grant adequate collateral to the Holder in accordance with Condition 5.1;

 

8.1.7                             any principal or interest payable on any of the Notes held by that Holder is not paid in full when due other within 10 days after the due date for payment; or

 

8.1.8                             other infringements by the Company of the obligations resulting from the Note but in cases, when they are capable of remedy, only if they are not remedied within 15 Business Days of the earlier of (i) the Holder giving notice to the Company and (ii) the Company becoming aware of the infringement.

 

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8.2                                        The Company shall give the Holder notice of the happening of any Extraordinary Event promptly after becoming aware of the same.

 

9                                                  TAXATION

 

All payments in respect of the Notes shall be made free and clear of, and without withholding or deduction for, any present or future taxes, duties, assessments or charges of whatever nature imposed, levied, collected, withheld or assessed by HM Revenue and Customs or other taxation authority and, in any such case, any political subdivision or authority thereof or therein having power to tax, unless such withholding or deduction is required by law.  In the event that any such withholding or deduction is required by law to be made, the Company shall pay such additional amounts as will result in the receipt by the Holder of such amounts as would have been received by it if no such withholding or deduction had been required, except that no such additional amounts shall be payable in respect of the Notes presented for payment more than thirty days after the Payment Date, except to the extent that the Holder would have been entitled to such additional amounts on presenting the Notes for payment on the last day of such period of thirty days.  If the Company becomes subject in relation to any such payment to any taxing jurisdiction other than the United Kingdom references in these Conditions to HM Revenue and Customs shall be construed as references to the taxation authority of such other jurisdiction.

 

10                                           COVENANTS BY THE COMPANY

 

The Company covenants with the Holders and each of them duly, to:

 

10.1                                 perform and observe the obligations on its part contained in the Note Deed and Conditions to the intent that the Note Deed and Conditions shall enure for the benefit of all Holders each of whom may sue for the performance or observance of the provisions of the Note Deed and Conditions so far as that Holder’s holding of the Notes is concerned; and

 

10.2                                 not without the prior written consent of an Extraordinary Resolution, permit or cause to be proposed an amendment to the terms and conditions of the Note Deed or the Conditions.

 

11                                           CERTIFICATES

 

The Company shall not be bound to register more than four persons as the joint holders of any Note and shall not be bound to issue more than one Certificate for Notes held jointly by several persons.  A notice or other document shall be given to whichever of them is named first in the Register in respect of such joint holding and notice given in this way is sufficient to all joint holders.

 

12                                           SURRENDER OF CERTIFICATE AND PRESCRIPTION

 

12.1                                 Without prejudice to any other provisions of these Conditions, every Holder any part of whose Notes is due to be redeemed or repurchased under any of the provisions of these Conditions shall, not later than five Business Days before the due date for such redemption or repurchase, deliver up to the Company, at its registered office, the Certificate for those Notes which are due to be redeemed or repurchased (or such indemnity and other documentation as the board of directors of the Company (the “Directors”) may reasonably require under Condition 17 in the case of a lost, defaced or destroyed certificate) in order that it may be cancelled.  Unless payment of the amount due to be repaid has already been made in accordance with Condition 2, upon such delivery and against a duly signed or authenticated receipt for the principal moneys payable in respect of the Notes to be repaid,

 

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the Company shall, on the due date for repayment, pay to the Holder the amount payable to him in respect of such repayment or redemption (including accrued interest).  If any Certificate so delivered to the Company includes any Notes not then repayable or redeemed, a new Certificate for the balance of the Notes not then repayable or redeemed shall be issued free of charge to the Holder delivering such Certificate to the Company.

 

12.2                                 If any Holder, any part of whose Note is liable to be redeemed or repurchased under these Conditions, fails or refuses to deliver up the Certificate for such Notes (or such indemnity and other documentation as the Directors may reasonably require under Condition 17 in the case of a lost, defaced or destroyed certificate) at the time and place fixed for repayment of the Notes, or fails or refuses to accept payment of the moneys payable in respect of the Notes, the moneys payable to such Holder shall be paid into a separate interest-bearing bank account.  The payment of such moneys into a bank account shall not constitute the Company a trustee of such moneys but shall discharge the Company from all obligations in respect of the Notes.  The Company shall not be responsible for the safe custody of such moneys or for interest on such moneys except such interest (if any) as the said moneys may earn whilst on deposit, less any expenses incurred by the Company in connection with such moneys.  Any such amount so paid or deposited which remains unclaimed after a period of twelve years from the making of the payment or deposit shall revert and belong to the Company, notwithstanding that in the intervening period the obligation to pay the same may have been provided for in the books, accounts and other records of the Company.  Subject as aforesaid, any amount so paid or deposited will forthwith be paid directly to the Holder or his successors upon delivery of the relevant Certificate.

 

13                                           THE REGISTER

 

13.1                                 The Company shall at all times keep at its registered office a Register showing:

 

13.1.1                      the names and addresses of the holders for the time being of the Notes and, in the case of joint holders, the names of the joint holders and the address of the first named holder;

 

13.1.2                      the amount of the Notes held by each registered holder and, in the case of joint holders, the amount of Notes held by the joint holders taken together;

 

13.1.3                      the date on which the name of each individual registered holder (including, in the case of joint holders, each joint holder) is entered in respect of the Notes standing in his or their name; and

 

13.1.4                      the denoting number of each Certificate for the Notes issued and its date of issue.

 

Any change of name or address on the part of any Holder shall forthwith be notified to the Company and the Register shall be altered accordingly.  Any Holder shall be at liberty, at all reasonable times during business hours on any Business Day and free of charge, to inspect the Register and a copy of the Note Deed and Conditions.  The Register may be closed at such times and for such periods as the Company may from time to time determine, provided that it shall not be closed for more than thirty Business Days in any year.

 

13.2                                 Except as required by law, the Company will recognise the registered holder of any Notes as the absolute owner of the Notes for all purposes and shall not (except as ordered by a court of competent jurisdiction) be bound to recognise any trust, whether express, implied or constructive, to which any Notes may be subject and the receipt of the registered holder for the time being of any Notes, or in the case of joint registered holders the receipt of any of

 

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them, for the principal moneys payable in respect of the Notes or for the interest from time to time accruing or for any other moneys payable in respect of the Notes shall be a good discharge to the Company, notwithstanding any notice it may have, whether express or otherwise, of the right, title, interest or claim of any other person to or in such Notes, interest or moneys.  The Company shall not be bound to enter any notice of any trust, whether express, implied or constructive, on the Register in respect of any Notes.

 

13.3                                 Each Holder will be recognised by the Company as entitled to their Notes free from any equity, set-off or cross-claim on the part of the Company against the original or any intermediate holder of the Notes.

 

14                                           CANCELLATION

 

All Notes redeemed or repurchased by the Company shall be cancelled and the Company shall not be at liberty to re-issue them.

 

15                                           MODIFICATION

 

The Notes, the Conditions and the rights of the Holder may from time to time be modified, abrogated or compromised or any arrangement or amendment agreed in any respect with the prior sanction of an Extraordinary Resolution (as defined in paragraph 17 of Appendix II or by written resolution of the holders of at least 75 per cent. of the Principal Amount of the Notes then in issue subject, in either case, to the prior consent of the Company.

 

16                                           RECEIPT OF JOINT HOLDERS

 

If two or more persons are entered in the Register as joint registered holders of any Notes then, without prejudice to Clause 9 of the Note Deed, the receipt by any one of such persons of any interest or principal shall be as effective a discharge to the Company as if the person signing such receipt were the sole registered holder of such Notes.

 

17                                           REPLACEMENT OF CERTIFICATES

 

If the Certificate for any Notes is lost, defaced or destroyed, it may, upon payment by the Holder of any reasonable out-of-pocket expenses of the Company, be replaced, on such terms (if any) as to evidence and indemnity as the Directors may reasonably require, but so that, in the case of defacement, the defaced Certificate shall be surrendered before the new Certificate is issued.

 

18                                           RISK TO HOLDERS

 

All Certificates, other documents and remittances sent through the post shall be sent by first class post but otherwise at the risk of the Holder(s) entitled to such documents.

 

19                                           PARI PASSU RANKING

 

The Company’s payment obligations under the Notes rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors except for obligations mandatorily preferred by law applying to companies generally.

 

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20                                           NOTICES

 

20.1                                 A notice may be served by the Company on the Holder by sending it by registered post to the Holder at its registered address for the time being or by sending it by e-mail.

 

20.2                                 A notice may be served by the Holder on the Company by sending it by registered post to the Company at its registered office for the time being or by sending it by e-mail.

 

20.3                                 Any notice or document given or served by registered post within the United Kingdom shall be deemed to have been served at the expiration of 24 hours after the time when it is posted and in proving such service it shall be sufficient to prove that the envelope containing the notice or document was properly addressed, stamped and posted.

 

20.4                                 Any notice or document given or served by e-mail shall be deemed to have been received at the time the e-mail enters the information system of the intended recipient provided that no error message indicating failure to deliver has been received by the sender.

 

21                                           GOVERNING LAW

 

The Notes, the Note Deed and the Conditions and any non-contractual obligations arising out of or in connection with them are governed by and construed in accordance with English law.

 

22                                           ENFORCEMENT

 

22.1                                 The courts of England have exclusive jurisdiction to settle any Dispute (including a Dispute regarding the existence, validity or termination of the Note Deed, the Conditions or the Notes or any non-contractual obligation arising out of or in connection with the Notes, the Note Deed and the Conditions (a “Dispute”).

 

22.2                                 The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and, accordingly, no party will argue to the contrary.

 

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APPENDIX II

 

Provisions for meetings of the Holders

 

1.                                               CALLING OF MEETINGS

 

The Company may at any time and shall, upon request in writing signed by the registered holders of not less than 10 per cent. of the Principal Amount of the Notes for the time being outstanding (excluding any in respect of which a notice requiring repayment shall have been given), convene a meeting of the Holders to be held at such time and place as the Company shall determine.

 

2.                                               NOTICE OF MEETINGS

 

2.1                                        The Company shall give to the Holders at least 14 or, in the case of a meeting convened for the purpose of passing an Extraordinary Resolution, at least 21 clear days’ notice, of any meeting of Holders, specifying the place, day and time of meeting.  Any such notice shall specify the general nature of the business to be transacted at the meeting convened by such notice but, except in the case of a resolution to be proposed as an Extraordinary Resolution, it shall not be necessary to specify the terms of any resolution to be proposed.

 

2.2                                        The accidental omission to give notice of a meeting, or to send a form of proxy with a notice, to any person entitled to receive the same, or the non-receipt of a notice of meeting or form of proxy by any such person, shall not invalidate the proceedings, including any resolution duly passed at that meeting.

 

3.                                               CHAIRMAN OF MEETINGS

 

Some person (whether or not a Holder) nominated by the Company shall be entitled to take the chair at any such meeting and if no such nomination is made or, if at any meeting the person nominated shall not be present within 30 minutes after the time appointed for holding the meeting, the Holders present shall choose one of their number to be Chairman.

 

4.                                               QUORUM AT MEETINGS

 

At any such meeting, a person or persons holding or representing by proxy at least 10 per cent. (or at any such meeting at which an Extraordinary Resolution is to be considered, 25 per cent.) of the Principal Amount of the Notes for the time being outstanding shall form a quorum for the transaction of business.  No business (other than the choosing of a Chairman) shall be transacted at any meeting unless the requisite quorum be present at the commencement of business.

 

5.                                               ABSENCE OF QUORUM

 

If within 30 minutes from the time appointed for any meeting of the Holders a quorum is not present, the meeting shall, if convened upon the requisition of the Holders, be dissolved.  In any other case it shall stand adjourned to such day and time (being not less than 14 nor more than 42 days thereafter) and to such place as may be appointed by the Chairman.  At such adjourned meeting, the Holders present in person or by proxy and entitled to vote, whatever the number of persons or the Principal Amount of the Notes held by them, shall form a quorum and shall have power to pass any Extraordinary Resolution or other resolution and to decide upon all matters which could properly have been disposed of at the meeting from which the adjournment took place.

 

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6.                                               NOTICE OF ADJOURNED MEETINGS

 

At least seven days’ notice of any adjourned meeting at which an Extraordinary Resolution is to be submitted shall be given in the manner provided by this Instrument and such notice shall state that the Holders present in person or by proxy at the adjourned meeting will form a quorum.  Notice is not required for any adjourned meeting at which no Extraordinary Resolution is to be submitted.

 

7.                                               ADJOURNMENT OF MEETINGS

 

The Chairman may, with the consent of (and shall if directed by) any such meeting, adjourn the same from time to time and from place to place but no business shall be transacted at any adjourned meeting except business which might lawfully have been transacted at the meeting from which the adjournment took place.

 

8.                                               RESOLUTION ON SHOW OF HANDS

 

Every question submitted to a meeting of Holders shall be decided in the first instance by a show of hands and, in case of an equality of votes, the Chairman shall, both on a show of hands and on a poll, have a casting vote in addition to the vote or votes (if any) to which he may be entitled as a Holder or as a duly appointed proxy of a Holder.

 

9.                                               DEMAND FOR POLL

 

At any meeting of Holders, unless (before or on the declaration of the result of the show of hands) a poll is demanded by the Chairman or by one or more Holders present in person or by proxy and holding or representing in aggregate not less than 10 per cent. of the Principal Amount of the Notes then outstanding, a declaration by the Chairman that a resolution has been carried or carried by a particular majority or lost or not carried by a particular majority shall be conclusive evidence of the fact.

 

10.                                        MANNER OF TAKING POLL

 

If at any such meeting a poll is so demanded it shall be taken in such manner as the Chairman may direct and the result of such poll shall be deemed to be the resolution of the meeting at which the poll was demanded.

 

11.                                        TIME FOR TAKING POLL

 

Any poll demanded at any such meeting on the election of a Chairman or on any question of adjournment shall be taken at the meeting without adjournment.  A poll demanded on any other question shall be taken in such manner and place immediately or at any time within 10 days of such demand, as the Chairman may direct.  No notice need be given of a poll not taken immediately.  The demand for a poll shall not prevent the continuance of a meeting for the transaction of any business other than the question on which the poll has been demanded.  The demand for a poll may be withdrawn.

 

12.                                        PERSONS ENTITLED TO ATTEND AND VOTE

 

12.1                                 The registered holder of any of the Notes or, in the case of joint holders, any one of them shall be entitled to vote in respect of the Notes either in person or by proxy and in the latter case as if such joint holder were solely entitled to such Notes.  If more than one of such joint holders be present at any meeting, either personally or by proxy, the vote of the senior who

 

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tenders a vote (seniority being determined by the order in which the joint holders are named in the Register) shall be accepted to the exclusion of the votes of the other joint holders.

 

12.2                                 The Directors and the Company Secretary and solicitors to and auditors of the Company and any other person authorised by the Directors may attend and speak (but not vote) at any such meeting.

 

13.                                        INSTRUMENT APPOINTING PROXY

 

Every instrument appointing a proxy must be in writing signed by the appointor or his attorney or, in the case of a corporation, under its common seal or signed by its attorney or a duly authorised officer and shall be in the usual or common form or in such other form as the Directors may approve.  Such instrument of proxy shall unless the contrary is stated be valid as well for an adjournment of the meeting as for the meeting to which it relates and need not be witnessed.  A person appointed to act as a proxy need not be a Holder.

 

14.                                        DEPOSIT OF INSTRUMENT APPOINTING PROXY

 

The instrument appointing a proxy and the power of attorney or other authority (if any) under which it is signed or a notarially certified or office copy of such power or authority shall be deposited at such place or places as the Company may in the notice of meeting direct or, if no such place is specified, then at the registered office of the Company not less than 48 hours before the time appointed for holding the meeting or adjourned meeting or the taking of a poll at which the person named in such instrument proposes to vote; in default the instrument of proxy shall not be treated as valid.  A vote given in accordance with the terms of an instrument appointing a proxy shall be valid notwithstanding the previous death or insanity of the principal or revocation of the instrument of proxy or of the authority under which the instrument of proxy is given or transfer of the Notes in respect of which it is given, unless previous notice in writing of such death, insanity, revocation or transfer shall have been received at the registered office of the Company.  No instrument appointing a proxy shall be valid after the expiration of 12 months from the date of its execution.

 

15.                                        VOTES

 

On a show of hands, every Holder who (being an individual) is present in person or by proxy or (being a corporation) is present by a representative shall have one vote and, on a poll, every Holder present in person or by proxy shall have one vote for every £1 in Principal Amount of the Notes of which he is the holder.  A Holder entitled to more than one vote need not use all his votes or cast all the votes he uses in the same way.

 

16.                                        POWERS OF MEETINGS OF HOLDERS

 

A meeting of the Holders shall, in addition to any other powers, have the following powers exercisable by Extraordinary Resolution namely:

 

16.1                                 power to sanction any compromise or arrangement proposed to be made between the Company and the Holders;

 

16.2                                 power to sanction any abrogation, modification or compromise or any arrangement in respect of the rights of the Holders against the Company or its properties, whether such rights arise under the Instrument or otherwise;

 

13

 

16.3                                 power to sanction any scheme or proposal for the sale or exchange of the Notes or for the conversion of the Notes into shares, stock, debentures, debenture stock or other obligations or securities of the Company or any other company formed or to be formed or cash or partly for or into such shares, stock, debentures, debenture stock or other obligations or securities as aforesaid and partly for or into cash and for the appointment of some person with power on behalf of the Holders to execute an instrument of transfer of the Notes held by them in favour of the person to or with whom the Notes are sold or exchanged respectively;

 

16.4                                 power to assent to any modification or abrogation of the provisions of this Instrument or of the Notes which shall be proposed by the Company and for which the consent of Holders is required and to authorise the Company to execute an instrument supplemental to this Instrument embodying any such modification or abrogation;

 

16.5                                 power to give any authority or sanction which, under the provisions of this Instrument is required to be given by Extraordinary Resolution,

 

provided that no modification of the Conditions or this Instrument shall be made or take effect unless the Company shall have consented to any such modification.

 

17.                                        DEFINITION OF EXTRAORDINARY RESOLUTION

 

The expression “Extraordinary Resolution” means a resolution passed at a meeting of the Holders, duly convened and held in accordance with the provisions of this Instrument contained, by a majority consisting of not less than 75 per cent. of the persons voting upon a show of hands or, if a poll is demanded, by a majority consisting of not less than 75 per cent. of the votes given on such poll.

 

18.                                        EXTRAORDINARY RESOLUTION BINDING ON ALL HOLDERS

 

An Extraordinary Resolution shall be binding upon all the Holders whether or not present at such meeting and each of the Holders shall be bound to give effect to it accordingly.  The passing of any such resolution shall be conclusive evidence that the circumstances justify the passing of any such resolution, the intention being that it shall rest with the meeting to determine without appeal whether or not the circumstances justify the passing of such resolution.

 

19.                                        RESOLUTIONS IN WRITING

 

A resolution in writing signed by the holders of not less than 75 per cent. of the Principal Amount of the Notes for the time being outstanding who are for the time being entitled to receive notice of meetings in accordance with the provisions of this Instrument contained shall for all purposes be as valid and effectual as an Extraordinary Resolution.  Such resolution in writing may be contained in one document or in several documents in similar form each signed by one or more of the Holders.

 

20.                                        MINUTES OF MEETINGS

 

Minutes of all resolutions and proceedings at every meeting of Holders shall be made and duly entered in books to be from time to time provided for that purpose by the Company.  Any such minutes, if purporting to be signed by the Chairman of the meeting at which such resolutions were passed or proceedings held or by the Chairman of the next succeeding meeting of the Holders, shall be conclusive evidence of the matters contained in such meeting.  Until the contrary is proved, every such meeting in respect of the proceedings of

 

14

 

which minutes have been made shall be deemed to have been duly convened and held and all resolutions passed at that meeting to have been duly passed.

 

15

 

APPENDIX III

 

Form of Certificate

 

	
Certificate No.
    	
 
    	
Issue Date
    	
 
    	
Amount
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
£
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

HANSON BUILDING PRODUCTS LIMITED

 

(Registered in England with registered number 08960430)

 

(the “Company”)

 

FLOATING RATE UNSECURED NOTES

 

THIS IS TO CERTIFY THAT the undermentioned is/are the registered holder(s) of the amount set out below of the Floating Rate Unsecured Notes which are issued with the benefit of and subject to the provisions contained in the note deed and conditions as entered into by the Company on [·] as amended and/or restated from time to time (the “Note Deed”).  Where the context so admits, words and expressions defined in the Note Deed shall bear the same meanings in the Conditions endorsed on this Certificate.

 

This Certificate is evidence of entitlement only. Title to the Notes passes only on due registration on the Register and any payment due on the Notes whether of principal or interest will be made only to the duly registered holder.

 

	
Name(s) of Holder(s)
    	
 
    	
Amount of Notes
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

EXECUTED BY:

 

Director                                                                                                                                                                                        Director/Secretary

 

DATED: [                          ]

 

NOTES:

 

1.                                               The Notes are repayable in accordance with the Conditions endorsed.

 

2.                                               A copy of the Note Deed and the Conditions are available for inspection at the registered office of the Company.

 

16

 

	
EXECUTED AS A DEED by
    	
)
    
	
HANSON   BUILDING PRODUCTS LIMITED
    	
)
    
	
acting   by:-
    	
)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Director/   Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
Acknowledged and   accepted by:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
for an on behalf   of
    	
 
    
	
HANSON   PACKED PRODUCTS LIMITED
    	
 
    

 

17EX-10.1

 Exhibit 10.1 

SEPARATION AGREEMENT 

December 3, 2014: 
 PARTIES 

 

	(1)	American Eagle Outfitters Hong Kong Limited, of 7/F, Tower 1, Metroplaza, 223 Hing Fong Road, Kwai Fong, New Territories, Hong Kong (the “Company”); and 

 

	(2)	LI Kit Ha Kitty (the “Executive”) 

 RECITAL 

This Separation Agreement sets out the terms and conditions which have been agreed between the parties in relation to the termination of the Executive’s
employment and her employment contract with the Company dated 26 February 2013 (together with any subsequent amendments thereto) (the “Employment Contract”). 

IT IS HEREBY AGREED AS FOLLOWS 
 Cessation of
Employment 
  

	(1)	The Company and the Executive hereby expressly acknowledge and agree that the Executive’s employment and/or any offices with the Company shall be terminated and/or ceased by mutual agreement with effect from close
of business on December 31, 2014 (the “Termination Date”), and no termination notice is required to be served by either party. 

Executive’s Entitlements 
  

	(2)	Subject to Clause (6) and Clause (10)H below, the Executive shall continue to receive all her contractual and statutory benefits through the Termination Date. 

 

	(3)	Subject to Clause (6) and Clause (10)H below, the Company shall pay to the Executive (i) the termination payments set out in Appendix 1 hereto pursuant to applicable laws; and (ii) a contractual severance
payment (inclusive of any statutory severance payment, if applicable) in the sum of USD $575,000 within 30 days from the Termination Date (subject always to the Company’s legal duty to withhold payment if necessary). 

  
 1 

	(4)	Equity The Executive acknowledges and agree that the equity awards granted to the Executive under the terms of the Company’s benefit plans will be administered as follows, all in accordance with
the terms of their respective plans: 

 Restricted Stock Units (Time-based) Unvested time based awards under the Company’s
Long-term Restricted Stock Unit Incentive Plan shall be forfeited on the Termination Date or on the Executive’s last date of employment if the Executive separates prior to the Termination Date. 

Restricted Stock Units (Individual Performance Based) The unvested individual performance based Restricted Stock Unit award shall be forfeited
on the Termination Date or on the Executive’s last date of employment if the Executive separates prior to the Termination Date. 
 Restricted
Stock (Performance Based) The Executive may be eligible for a pro-rata portion of performance-based awards under the Long-term Restricted Stock Unit Incentive Plan if the Company achieves the applicable performance goals established by the
plan. The pro-rata amount that the Executive may be eligible for will be based on the days of service in the performance period as of the Termination Date or on the Executive’s last date of employment if the Executive separates prior to the
Termination Date. Payment will be made no sooner than the date on which other participants are paid their awards, if any payments are made, in accordance with the terms of the plan. Under the terms of the plan, the Executive is not required to be
employed by the Company at the time the prorated share of such awards is paid as a condition precedent to receiving them. The payment will be made less any applicable withholdings or deductions. The balance of the performance-based awards shall be
forfeited on the Termination Date or on the Executive’s last date of employment if the Executive separates prior to the Termination Date. The Executive understands that eligibility also is conditioned upon compliance with the terms and
conditions of the RSU Confidentiality, Non-Solicitation, Non-Competition and Intellectual Property Agreement signed on April 8, 2013. To the extent that the Company does not achieve the applicable performance goals established under the plan,
the portion of the award for which performance goals are not achieved will be forfeited in accordance with the terms of the plan. 

  
 2 

	(5)	The Executive agrees that notwithstanding any provision to the contrary, if she fails to comply with any of her duties or breaches any provisions under this Separation Agreement, without prejudice to any other rights or
remedies of the Company arising from such action, the Executive shall not be entitled to receive any payments or benefits under this Separation Agreement and shall return the same to the Company forthwith, save and except any payments due or payable
to her under the Employment Contract or the Employment Ordinance up to the Termination Date. 

  

	(6)	The Executive acknowledges that all statutory payments which are or may be due to her under the Employment Ordinance of Hong Kong or any other applicable law and all payments due under the Employment Contract or any
contract between the Executive and the Company and/or any entity within the Group (as defined hereinafter) shall be satisfied by the payment to her as set forth in this Separation Agreement. The Executive agrees and accepts that, except as set out
in this Separation Agreement, there is no sum owed to her or any arrangement under which a sum could become due by the Company and/or any entity within the Group to the Executive, including but not limited to any outstanding salary, allowances,
bonus and other payments. If despite this Settlement Agreement, the Company and/or any entity within the Group becomes obligated to pay to the Executive any contractual and/or statutory payments other then those set out in this Settlement Agreement
(the “Additional Payment”), then the Company may claim from the Executive by way of set-off, counterclaim or otherwise for the repayment of the amount of any contractual severance payment and/or any discretionary payments payable to
the Executive under this Settlement Agreement to the extent of its liability to pay the Additional Payment. 

 Separation Arrangement

  

	(7)	 The parties hereby agree that this Separation Agreement is entered into in full and final settlement of all and any claims howsoever arising (whether
actual or contingent) under the laws of Hong Kong or in any jurisdictions which the Executive has or may have against the Company and/or any entity within the Group, and/or their respective employees, officers, directors or shareholders, directly or
indirectly in connection with any agreement signed between the Executive and the Company and/or any entity within the Group, including but not limited to the Change in Control Agreement dated 8 April 2013, and/or the Executive’s employment
and/or any offices with the Company or its termination 

  
 3 

	 	
or cessation thereof, including but not limited to any claims under tort, statute, equity, common law, any remuneration or benefit scheme in which the Executive is a participant as a result of
her employment with the Company (including but not limited to any stock option scheme, incentive scheme, or bonus scheme), the Employment Contract, Employment Ordinance, Employees’ Compensation Ordinance, Mandatory Provident Fund Schemes
Ordinance, Occupational Retirement Schemes Ordinance, or any claims or complaints on any grounds of discrimination including but not limited to claims or complaints under the Sex Discrimination Ordinance, Disability Discrimination Ordinance, Family
Status Discrimination Ordinance and Race Discrimination Ordinance, and including any claims which are not contemplated at the date of this Separation Agreement by the Executive (the “Claims”). Notwithstanding the foregoing, nothing
in this Separation Agreement shall be construed to waive any right that is not subject to waiver by private agreement and any rights under this Separation Agreement. The Executive further confirms that she has not commenced any proceedings or lodged
any complaints against the Company and/or the Group, and/or their respective employees, officers, directors or shareholders in relation to the Claims. 

  

	(8)	In this Separation Agreement, the term “Group” means the Company, its holding companies or subsidiaries, and the subsidiaries of such holding companies, including but not limited to American Eagle
Outfitters, Inc. (“AEO”) 

  

	D.	Duties of the Executive 

  

	(9)	In consideration of the payments and benefits payable to and received by the Executive under this Agreement:- 

  

	 	A.	the Executive shall fully co-operate to the extent as may be required of her and in such manner as directed by such person designated by the Company and/or the Group for the proper handover of her duties or such other
matters handled or dealt with by her in relation to the business of the Company and/or the Group; 

  

	 	B.	 the Executive shall execute all documents required by the Company for her departure from the Company and/or any entity within the Group, or her proper
resignation from any office, title or representative of the Company and/or any entity within the Group at such time and in such manner as requested by the Company. Should the Executive fail to

  
 4 

	 	
execute any document to the aforesaid effect, the Executive hereby irrevocably appoints any one of the directors of the Company to execute such documents on her behalf; 

 

	 	C.	the Executive agrees and covenants that she shall, to the extent reasonably requested, provide cooperation in any legal proceedings, investigation and/or threatened or pending litigation (now or in the future) in which
the Company or any entity within the Group is a party, and regarding which the Executive, by virtue of her employment or engagement with the Company and/or the Group, has knowledge or information relevant to the said legal proceedings or litigation,
including but not limited to, (i) meeting with the representatives of the Company and/or the Group to provide truthful and complete information regarding her knowledge, (ii) acting as the representative and/or witness of the Company, or
any entity within the Group to provide truthful and complete information regarding her knowledge, and (iii) providing, in any jurisdiction in which the Company and/or any entity within the requests, truthful and complete testimony relevant to
the said legal proceeding or litigation. The Executive shall not without the prior written consent of the Company disclose any information of the said legal proceeding or litigation to the mass media, the public or to any third parties save and
except such persons authorized by the Company; 

  

	 	D.	the Executive shall return on or before the Termination Date, all the properties of the Company and the Group including staff card, blackberry, keys, manuals, electronic storage devices, memoranda, notes, records,
reports and other documents relating to the business of the Company and/or the Group which are in her possession or under her control forthwith and shall hereby confirm that she has not taken any unauthorised copies thereof (whether in written or
digital form); 

  

	 	E.	the Executive accepts and agrees that her express and implied duties relating to confidential information, intellectual property rights, and restrictive covenant of the Company and/or the Group continue after the
Termination Date. The Executive shall comply with the RSU Confidentiality, Non-Solicitation, Non-Competition and intellectual Property Agreement; 

  
 5 

	 	F.	the Executive shall continue to keep and shall not make use of any confidential or secret information relating to the Company and/or the Group, and for the purpose of this clause, confidential information includes, but
is not limited to, any technical or non-technical data, formula, pattern, compilation, program, device, technique, drawing, process, product plan, list of actual or potential customers or suppliers, computer data, work and organization methods,
contracts, financial information and any other information relating to the business and affairs of the Company and/or the Group, which is not commonly known or available to the public and which (i) derives economic value, actual or potential,
from not being generally known to and not being readily ascertainable by proper means by other persons who can derive economic value from its disclosure or use, and (ii) is the subject of efforts that are reasonable under the circumstances to
maintain its secrecy. The Executive’s obligation under this Clause (7)F are in addition to, and not in substitution for any other obligations of confidentiality owed by the Employee; 

 

	 	G.	the Executive shall make no defamatory or disparaging comments, either directly or indirectly, to third parties concerning the Company, the Group, and their respective employees, officers, directors or shareholders;

  

	 	H.	Notwithstanding Clauses 2, 3 and 4 above, the Executive agrees and authorizes the Company to withhold the sum payable under Clauses 2, 3 and 4 of this Separation Agreement for a statutory holding period of one month
from the date on which Form IR 56G was filed by the Company to the Inland Revenue Department of Hong Kong, or until receipt of the Letter of Release issued by the Inland Revenue Department of Hong Kong, whichever is the earlier in accordance with
section 52(7) of the Inland Revenue Ordinance; and 

  

	 	I.	the Executive shall be solely responsible for the payment of any tax (if any) arising from her employment with the Company and any payments made under this Separation Agreement in Hong Kong and in all other
jurisdictions. The Executive further undertakes that should for any reason, the Company is subsequently required by the Inland Revenue Department to settle all or any part of the Executive’s outstanding Hong Kong tax liability, the Executive
shall fully indemnify the Company of the same. 

  
 6 

	E.	Miscellaneous 

  

	(10)	Nothing in this Separation Agreement shall be construed as an admission of liability by the Company or any entity or individual associated with the Company or as an admission of any wrongdoing or liability by the
Executive. 

  

	(11)	No amendment, modification or discharge of this Separation Agreement shall be valid or binding unless set forth in writing and duly executed by each of the parties hereto. 

 

	(12)	This Separation Agreement along with its appendix contains the entire understanding between the parties in relation to the subject matter hereunder and supersedes any prior understanding or agreement (whether written or
oral) in relation to the subject matter hereunder, including without limitation the Employment Contract, provided that the terms in the Employment Contract that expressly, or by their nature, contemplate performance by Executive after termination or
expiration will survive and shall continue in full force and effect. 

  

	(13)	The subject headings of this Separation Agreement are for reference purpose only and shall not form part of this Separation Agreement. 

 

	(14)	This Separation Agreement shall apply to the Company, each of the entities within the Group, and their respective successors. 

  

	(15)	The Executive declares that she has read this entire document and that she understands the nature, effect and extent of this Separation Agreement and signs this Separation Agreement voluntarily. The Executive
acknowledges that she has been given the opportunity to seek her own legal advice. 

  

	(16)	This Separation Agreement shall be governed by the laws of Hong Kong SAR and both parties agree to submit to the non-exclusive jurisdictions of the courts/tribunals of Hong Kong. 

  
 7 

 SIGNED 

By /s/ Charles P. Sandel  
 for and on behalf of

 American Eagle Outfitters  
 Hong Kong Limited

 Date December 3, 2014 
 EXECUTED AS A DEED 

SIGNED SEALED & DELIVERED 
 by LI Kit Ha Kitty
 
 /s/ LI Kit Ha Kitty 
 Date November 27, 2014 

  
 8 

 Appendix 1 

 

							
	 	  	 	  	HK$	 
	1.	  	Base salary from December 1 to 31, 2014 (full month)	  	 	373,750.00	  
	2.	  	Car allowance from December 1 to 31, 2014 (full month)	  	 	11,700.00	  
	2.	  	 Accrued but untaken annual leave pay up to December 31, 2014:

Average daily wages of HK$17,790 x 7.5 days
	  	 	133,425.00	  
	3.	  	Less: Executive employee’s mandatory contribution to the Company’s Mandatory Provident Fund Scheme for the month of December 2014	  	 	-1,500.00	  
		  		  	  
	  
	 
		  	 Total:
	  	 	517,375.00	  
		  		  	  
	  
	 

  
 9

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