Document:

Exhibit 10.4

 

WARRANT

 

THIS
WARRANT (“WARRANT”) TO PURCHASE SHARES IN THE CAPITAL OF BORQS TECHNOLOGIES, INC.,
A BRITISH VIRGIN ISLANDS COMPANY (THE “COMPANY”) IS ISSUED ON THE ISSUE DATE PURSUANT TO THE TERMS GOVERNING
ISSUANCE OF A WARRANT UPON PREPAYMENT IN WHOLE OR IN PART OF THAT CONVERTIBLE SECURED PROMISSORY NOTE dated
as of December 17, 2018 (the “note”), as such note is ISSUED PURSUANT TO THAT CERTAIN WAIVER AND MODIFICATION NO.
1 TO LOAND AND SECURITY AGREEMENT DATED DECEMBER 17, 2018 (such waiver and modification no, 1, collectively WITH SUCH LOAN AND
SECURITY AGREEMENT, THE “LOAN aGREEMENT”), by and among THE COMPANY, ITS SUBSIDIARY, Borqs International Holding Corp
(AS “GUARANTOR”), AND BORQS HOND KONG LIMITED, THE COMPANY’S INDIRECT SUBSIDIARY AND PRINCIPAL OBLIGOR (AS “bORROWER”)
UNDER THE LOAN AGREEMENT.

 

	Company:	Borqs
    Technologies, Inc., a British Virgin Islands company
	Warrant
    Shares:	Ordinary
    Shares
	Number
    of Shares:	Up
    to [●]1 shares, subject to adjustment
	Exchange
    Price:	[$___
    per Share, subject to adjustment
	Issue
    Date:	____________,
    20__2
	Expiration
    Date:	December
    17, 2023

 

The
term “Holder” shall initially refer to Partners for Growth V, L.P., a Delaware limited partnership, which is
the initial holder of this Warrant and shall further refer to any subsequent permitted holder of this Warrant from time to time.

 

The
Company does hereby certify and agree that Holder that this Warrant is issued in consideration of each prepayment of the Note
(as defined in the heading) in whole or in part Holder, or its permitted successors and assigns, hereby is entitled to Exchange
or Exercise this Warrant in the Company for up to [●] ([●]) Ordinary Shares of the Company (the “Warrant Shares”).
This Warrant is subject to adjustment as set forth in this Warrant. Capitalized terms used but not defined in this Warrant have
their meanings as set forth in the Loan Agreement and the Note, whether or not the Loan Agreement is then in effect. When the
term “convert” or “conversion” in relation to the Warrant is used herein, it includes an Exchange and
an Exercise, each as defined in Section 1.3(a), below, as applicable.

 

Section
1.Term, Price and Exchange of Warrant. 

 

1.1 Term
of Warrant. This Warrant shall be convertible from the Issue Date until 5:00 p.m. U.S. Pacific Time on the Expiration Date
set forth above (hereinafter referred to as the “Expiration Date”).

 

1.2 Exchange
Price. The price per Share at which the Warrant Shares are issuable upon conversion of this Warrant shall be $4.79 per Warrant
Share (the “Exchange Price”).

 

 

 

1
Dollar amount prepaid divided by the stated Conversion Price under the Note.

2 Date of any prepayment(s) of the Note.

 

    

     

    

 

1.3 Conversion
of Warrant.

 

(a)
This Warrant may be exercised, in whole or in part, upon surrender of this Warrant to the Company, together with the Election
to Exchange or Exercise attached hereto as Exhibit A (the “Election”) duly completed and executed with “Exercise”
selected as the mode of conversion, and upon payment to the Company of the Exercise Price for the number of Warrant Shares in
respect of which this Warrant is then being exercised (an “Exercise”). In whole or in part in lieu of an Exercise,
Holder may convert this Warrant on a cashless basis by so indicating in the Election and proceeding in accordance with the remainder
of this Section 1.3 (an “Exchange”). In each above case, Holder shall surrender this Warrant to the Company
at its then principal offices, together with the Election duly completed and executed.

 

(b) Upon
an Exchange, Holder shall receive Warrant Shares such that, without the payment of any funds, Holder shall surrender this Warrant
in exchange for the number of Warrant Shares equal to “X” (as defined below), computed using the following formula:

 

	 	X =	Y * (A-B)	 
	 	 	A	 

 

	Where	 	 	 
	 	 	 	 
	 	X	=	the number of Warrant Shares to be issued to Holder
	 	Y	=	the number of Warrant Shares to be converted under this Warrant
	 	A	=	the Fair Market Value of one Warrant Share
	 	B	=	the Exchange Price (as adjusted to the date of such calculations)
	 	*	=	multiplied by

 

(c) For
purposes of calculating Fair Market Value for purposes of Exchanging this Warrant, the “Fair Market Value” of one
Warrant Share shall be (i) if the Company’s securities become listed on an internationally-recognized securities exchange,
inter-dealer quotation system or over-the-counter market (a “Trading Market”), the average closing sale price
reported on such exchange for such listed securities during the 90-trading day period immediately prior to the date Holder delivers
its Election to the Company, or (ii) if the Company’s securities are traded over-the-counter, the highest average of bid
and ask price for such securities over the 90-trading day period immediately prior to the day Holder delivers its Election to
the Company, in each case of (i) and (ii), above, if the Warrant Shares are convertible into such listed or over-the-counter traded
securities other than on a one-to-one basis, multiplied by the ratio at which one Warrant Share converts into such other security.
If the Company’s securities are not listed or traded as contemplated in clauses (i) or (ii), above, the Fair Market Value
of the Warrant Shares shall be the price per Warrant Share which the Company could obtain from a willing buyer of Warrant Shares
sold by the Company from its authorized but unissued share capital, initially as the Board of Directors of the Company (“Board”)
shall determine in its reasonable good faith judgment, subject to Holder’s valuation rights below, but in no event less
than the price to which a holder of Warrant Shares would be entitled based on an enterprise valuation of the Company (including
its Subsidiaries if part of a Group) as a going concern and the application of the rights, preferences and privileges of the Company’s
outstanding securities as set forth in the Company’s Constitutional Documents without discount for minority, control or
lack of marketability. For the avoidance of doubt, if the Board relies on an appraisal (including a “409A”-type valuation)
to determine the Fair Market Value of the Warrant Shares, such determined Fair Market Value from such appraisal may not assume
the automatic conversion of all convertible securities in deriving such Fair Market Value but, instead, shall be based on enterprise
value and application of the rights, preferences and privileges of the Company’s outstanding securities as set forth in
the Company’s Constitutional Documents as if the Company (or Group) were being sold in an Acquisition for cash to determine
what dollar value each class of security would receive upon such Acquisition. If the Warrant is to be converted in connection
with an Acquisition (in fact), the Fair Market Value of a Warrant Share shall be based on the enterprise value specified or implied
in such Acquisition and shall be the greater of (A) the value attributable to the Warrant Shares and (B) the value attributable
to the Company securities into which the Warrant Shares are (or may be) convertible (but subject to Holder’s conversion
directly into such other Company securities). If Holder disagrees the Board's determination, Holder may engage an independent
appraiser to determine fair market value of the Warrant Shares the foregoing basis at shared expense between the Company and Holder.
If the fair market value difference between the Board's determination and the determination by Holder's appraiser is less than
30%, then the average between the two determinations shall be deemed to be the fair market value. If the difference is 30% or
more, then the parties shall agree a second appraiser, with each party bearing half of the expense of such second appraiser, and
the determination of such appraiser shall be deemed to be the fair market value.

 

    2

     

    

 

(d)
In the event that Holder converts this Warrant in connection with a transaction in which shares of the same class and series as
the Warrant Shares are converted into another security, Holder may effect a conversion directly into such other security.

 

(e)
Subject to Section 2 hereof, upon delivery of the duly completed and executed Election, the Company shall issue and deliver within
two (2) business days to Holder or such other person as Holder may designate in writing a certificate or certificates and a certified
copy of the Company’s Register of Members maintained under section 41 of the BVI Business Companies Act, 2004 (as amended)
evidencing Holder’s ownership of the number of Warrant Shares so acquired upon the conversion of this Warrant. Such certificate(s)
or other legal evidence shall be deemed to have been issued and any person so designated to be named therein shall be deemed to
have become a shareholder of the Company and a holder of record of such Warrant Shares as of the date the Election is delivered
to the Company, provided, however, Holder’s admission as a shareholder shall be subject to Holder’s execution and
delivery of such agreements as may be required of all shareholders or of an accession or similar agreement by which Holder agrees
to be bound by such agreements. If this Warrant is converted in part, a new warrant substantially identical to this Warrant for
the number of Shares not converted shall be promptly executed and delivered to Holder by the Company.

 

1.4
Fractional Interests. The Company shall not be required to issue fractions of Warrant Shares upon the conversion of this
Warrant. If any fraction of a Warrant Share would be issuable upon the conversion of this Warrant (or any portion thereof), the
Company shall purchase such fraction for an amount in cash equal to the fair market value of a Warrant Share as determined by
the Board in its reasonable judgment.

 

    3

     

    

 

1.5 Register.
A register of holders (the “Register”) shall be kept by or on behalf of the Company at its registered office or at
such other place as may be permitted by applicable law. There shall be entered in the Register:

 

		(a)	the
                                         names and addresses of the person(s) for the time being entitled to be registered as
                                         Holders of this Warrant;

 

		(b)	the
                                         number of Warrants held by every such registered holder; and

 

		(c)	the
                                         date on which the name of every such registered holder is entered in the Register in
                                         respect of the Warrants standing to its name.

 

Any
change in the name or address of Holder shall be notified to the Company in writing within a reasonable time after the change
occurs which shall cause the Register to be altered accordingly. Holder and any person authorised by Holder shall be at liberty
at all reasonable times during office hours to inspect the Register and to take copies of or extracts from it or any part of it.
The Company shall be entitled to treat Holder as the absolute owner of this Warrant and accordingly shall not, except as ordered
by a court of competent jurisdiction or as required by law, be bound to recognise any equitable or other claim to, or interest
in, this Warrant on the part of any other person, whether or not it shall have express or other notice of that claim or interest.
Holder will be recognised by the Company as entitled to this Warrant free from any equity, set off or cross claim on the part
of the Company against the original or any intermediate holder of such Warrant.

 

1.6 Certain
Definitions. For purposes of this Warrant:

 

“Acquisition”
means, in any single transaction or series of related transactions: (i) any sale or other disposition (including exclusive license)
of all or substantially all of the assets of the Company in whatever form and however consummated (including equity held directly
or indirectly in a Subsidiary, (ii) any reorganization, consolidation, merger or acquisition of the Company or a Controlling interest
in the Company, or (iii) any liquidation or deemed liquidation under the Company’s Constitutional Documents..

 

An
“Affiliate” of, or person “affiliated” with, a specified Person, is a Person that directly, or
indirectly through one or more intermediaries, beneficially owns or is beneficially owned, controls or is controlled by, or is
under common control with, the Person specified, and any person or entity that owns or controls directly or indirectly ten percent
(10%) or more of the shares of Company (for which purposes, the term “shares” shall include any security or other
instrument, including convertible debt, that is convertible into or exchangeable for shares) shall be deemed to be an Affiliate
of the Company.

 

“Constitutional
Documents” means the Company’s Memorandum and Articles of Association (as amended and restated, as applicable)
and any agreements between or among the Company and holders of any class or series of its shares.

 

    4

     

    

 

“Control”
(including the terms “controlling”, “controlled by” and “under common control with”) means
the possession, direct or indirect through one or more Affiliates, of the power to direct or cause the direction of the management
and policies of a person, whether through the ownership or voting of voting securities, by contract, by effective, de facto control
or otherwise.

 

“Founder(s)”
means the Person(s) who have founded and / or direct the non-BVI entities and businesses that comprise the operations of the Group.

 

“Fully-Diluted”
in relation to the Company’s share equity means its outstanding and issuable securities, treating all options (issued or
reserved for issuance, such as under an employee share scheme) and all warrants, convertible securities, convertible debt and
other derivative instruments and rights on an as-exercised and as-converted into shares basis.

 

“Group”
means the Company, together with its direct and indirect subsidiaries and Affiliates, that comprise the business enterprise in
which the Company is the beneficial owner, by actual share ownership, contract or otherwise.

 

“Liquidity
Event” means a transaction in which any holders of equity in the Group and/or Local Management of the Group (whether
the corporate vehicle for such holders now exists or exists in the future) would be reasonably expected to substantially achieve
a financial exit or return from their investments in the Group, such as a public offering or listing or quotation of the Company’s
shares on a Trading Market, an Acquisition, a change of Control or any transaction or event with similar effect to any of the
foregoing, and the term “Liquidity Vehicle” means the entity through which a Liquidity Event is to be ultimately
consummated.

 

“Local
Management” means the Founder(s) and/or management of the Group operating entities and would typically, but not exclusively,
be the Persons who founded and / or managed the Group operating entities prior to investor participation through the funding of
the Company.

 

“Localization
Transaction” has the meaning set forth in Section 1.8.

 

“Marketable
Securities” means securities meeting all of the following requirements: (i) the issuer thereof is then subject to the
reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) or comparable reporting requirements of the exchange or in the jurisdiction in which the Company’s securities
are listed or traded, and is then current in its filing of all required reports and other information thereunder; (ii) the class
and series of shares or other security of the issuer that would be received by Holder in connection with the Acquisition were
Holder to exercise this Warrant on or prior to the closing thereof is then traded on a Trading Market, (iii) Holder would be able
to publicly re-sell, within thirty (30) calendar days following the closing of such Acquisition, all of the issuer’s shares
and/or other securities that would be received by Holder in such Acquisition were Holder to exercise this Warrant in full on or
prior to the closing of such Acquisition, and (iv) Holder is not subject to any lock-up or similar restriction (whether contractual
or regulatory).

 

    5

     

    

 

“Person”
or “person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization,
association, corporation, government, or any agency or political division thereof, or any other entity of any kind.

 

1.6 Automatic
Conversion upon Expiration. Upon the Expiration Date, this Warrant shall automatically be deemed on and as of such date to
be Exchanged pursuant to Section 1.3 as to all Warrant Shares (or such other securities) for which this Warrant has become convertible
and for which it shall not previously have been converted for Warrant Shares (or if not then outstanding, into such other class
and series of securities into which the Warrant Shares is then convertible), and the Company shall promptly deliver a certificate
and a certified copy of the register of members of the Company maintained under section 41 of the BVI Business Companies Act,
2004 (as amended) or other legal evidence of ownership of such other securities issued upon such Exchange to Holder.

 

1.7 Treatment
of Warrant Upon Acquisition of Company. Without prejudice to Holder’s right to convert this Warrant at any time at its
option, upon the closing of any Acquisition in which the sole consideration is cash or Marketable Securities or a combination
of the foregoing, Holder shall (at its sole option) either (i) convert this Warrant, and such conversion will be deemed effective
immediately prior to the consummation of such Acquisition or (ii) if Holder elects not to convert this Warrant, this Warrant will
expire upon the consummation of such Acquisition. The Company shall provide reasonable advance notice of an Acquisition and in
no event shall such advance notice be less than ten (10) Business Days. In all other Acquisitions (including without limitation,
where the consideration is part cash and part other consideration that is not (all) Marketable Securities), the surviving entity
shall (unless Holder elects to convert this Warrant), as a condition to such Acquisition, assume the obligations of the Company
under this Warrant mutatis mutandis and to the extent applicable, in which case this Warrant shall be exercisable for the same
securities as would be deliverable for the Warrant Shares issuable upon Exchange of the unexchanged portion of this Warrant as
if such Warrant Shares were issued shares on the record date for the Acquisition (and the Warrant Price and/or number of Warrant
Shares shall be adjusted accordingly).

 

1.8 Conditional
Repurchase Obligation Upon Reorganization of Off-Shore Holding Company Structure.

 

(a) The
Company acknowledges that as of the Issue Date, the Company is the penultimate holding company in a multi-entity group, some of
the operating entities of which are entities formed under the laws of jurisdictions other than the British Virgin Islands, including
the PRC, and the group has been structured so that as of the Issue Date the Company is anticipated to be the corporate vehicle
in which a Liquidity Event will be effected for the benefit of the Group’s beneficial owners. Without limiting the adjustments
that may be required under Section 4, if: (i) the Group should be reorganized (whether in anticipation of a Liquidity
Event or otherwise) such that after such reorganization a Group entity other than the Company will be the vehicle in which such
Liquidity Event is to be consummated (any such Group reorganization transaction, including a so-called “de-VIE” transaction
in respect of a PRC localization, a “Localization Transaction”), and (ii) in connection with a Localization
Transaction (A) for any reason (other than the laws of its own jurisdiction of domicile) Holder is unable to receive and hold
its pro rata ownership in the new Liquidity Vehicle (or receive consideration, if the Localization Transaction is consummated
directly or indirectly in connection with a Liquidity Event) due to a legal or regulatory impediment (such as, for example only
in the case of the PRC, restrictions on non-PRC Person ownership of a warrant or equity in any new PRC Liquidity Vehicle), then,
without limiting Holder’s right to transfer this Warrant to or receive an equivalent warrant in such surviving PRC entity
in the name of a Holder-designated PRC Person that may lawfully hold such new warrant without such regulatory impediment, or
(B) Holder is not provided the opportunity to exchange this Warrant for a warrant or equivalent equity in the new Liquidity
Vehicle, then, as a joint and several obligation, the Company, the Borrower under the Loan Agreement (whether or
not the Loan Agreement is then in effect) and/or the new Liquidity Vehicle shall, upon initial closing of such Localization Transaction,
purchase this Warrant for the amount that Holder would receive on an as-converted into Warrant Shares basis, applying the liquidation
preferences and adjustments as would reasonably apply assuming a liquidation of the Company under the Company’s Constitutional
Documents, with the value to be assumed for purposes of determining the amount attributable to the Warrant Shares being the Enterprise
Valuation (such purchase amount, the “Warrant Purchase Price” and such term as defined below).

 

    6

     

    

 

(b) The
Warrant Purchase Price determined in accordance with this Section shall be paid in cash in full upon the initial closing of the
Localization Transaction and shall not be subject to any post-Localization Transaction closing contingencies or adjustments, including
without limitation, earn-out or escrowed consideration.

 

(c) The
term “Enterprise Valuation” means the fair market value of the Group at the time of a Localization Transaction,
which shall be mutually agreed between Holder and the Company and which may be inferred from the implied valuation in connection
with any then recent arm’s length Group equity or convertible debt financing, the valuation used for purposes of new proposed
investment in the Group, as anticipated to be localized, any then recent and comprehensive (from a Group perspective) independent
professional valuation report or, failing agreement between the Company and Holder as to the fair market value of the Group, by
independent appraisal as contemplated in Section 1.3(c).

 

Section
2.Exchange and Transfer of Warrant.

 

(a)
This Warrant may be transferred, in whole or in part, without restriction, subject only to (i) Holder’s compliance with
applicable securities laws (which, in the case of Affiliates, shall be deemed satisfied by Holder (and transferee) certification
of Affiliate status), and (ii) the transferee holder of the new Warrant assuming the obligations of Holder set forth in this Warrant.
A transfer may be registered with the Company by submission to it of the annexed Assignment Form attached hereto as Exhibit
B duly completed and executed. After the Company’s registration of a transfer of this Warrant, the Company will issue
and deliver to the transferee a new warrant (representing the portion of this Warrant so transferred) upon the same terms and
conditions as this Warrant and in substantially identical form, which the Company will register in the new holder’s name.
In the event of registration of a partial transfer of this Warrant, the Company shall concurrently issue and deliver to the transferring
holder a new warrant that entitles the transferring holder to the balance of this Warrant not so transferred and that otherwise
is upon the same terms and conditions as this Warrant. Upon the delivery of this Warrant for transfer, the transferee holder shall
for all purposes become Holder of the new warrant issued for the portion of this Warrant so transferred, irrespective of the date
of actual delivery of the new warrant representing the portion of this Warrant so transferred.

 

    7

     

    

 

(b)
In the event of the loss, theft or destruction of this Warrant, the Company shall execute and deliver an identical new warrant
to Holder in substitution therefor upon the Company's receipt of (i) evidence reasonably satisfactory to the Company of such event,
and (ii) if requested by the Company, an indemnity agreement in reasonable and customary form.

 

(c)
The Company shall pay its own and all Holder’s reasonable costs and expenses incurred in connection with the conversion,
transfer replacement or enforcement of this Warrant, including, without limitation, securities compliance, attorneys’ fees
and costs, the costs of preparation, execution and delivery of a new warrant and of certificates or other legal evidence of all
Warrant Shares.

 

Section
3.Certain Covenants.

 

(a)
The Company shall ensure that any approval of its Board and shareholders required for issuance of this Warrant and of the Warrant
Shares issuable upon conversion hereof (which shall, for the avoidance of doubt, include any securities into which Warrant Shares
are or become convertible) remains in full force and effect until the earlier of conversion or the Expiration Date.

 

(b)
The Company will not, by amendment of its Constitutional Documents or through reorganization, consolidation, merger, amalgamation,
sale of assets or otherwise, avoid or seek to avoid the observance or performance of any of the terms of this Warrant. Without
limiting the foregoing, the Company will from time to time take all such action as may be necessary or appropriate in order that
the Company may validly and legally issue Warrant Shares upon the conversion of this Warrant.

 

(c) The
Company shall not treat the Warrant or the Warrant Shares as being granted or issued as property transferred in connection with
the performance of services or otherwise as compensation for services rendered.

 

(d) The
Company shall not characterize the Warrant as an ownership interest in the Company or Holder as a shareholder of the Company until
such time as Holder converts the Warrant for Warrant Shares and is entered as a shareholder of the Company’s register of
members.

 

(e) The
Company shall ensure and shall procure that at all times this Warrant is in effect, Holder shall have the benefits accorded “Investors”
under any registration rights agreement between the Company and such investors and shall not consent to any amendment of such
registration rights agreement that would have the effect of treating Holder differently than or depriving Holder of benefits that
are accorded Investors under such registration rights agreement.

 

    8

     

    

 

Section
4.Adjustments to Number of Warrant Shares, Etc.

 

4.1
Adjustments. In order to prevent dilution of the rights granted hereunder, the Number of Shares and Exchange Price shall
be subject to adjustment from time to time in accordance with this Section 4. Upon each adjustment of the Exchange Price pursuant
to this Section 4, Holder shall thereafter be entitled to acquire upon conversion, at the Exchange Price resulting from such adjustment,
the number of Warrant Shares obtainable by multiplying the Exchange Price in effect immediately prior to such adjustment by the
number of Warrant Shares acquirable immediately prior to such adjustment and dividing the product thereof by the new Exchange
Price resulting from such adjustment.

 

4.2
Subdivisions, Combinations and Stock Dividends. If the Company shall at any time subdivide by split-up or otherwise, the
class and series of Company securities into which the Warrant could then be converted into a greater number of shares, or issue
additional securities as a dividend, bonus issue or otherwise with respect to such securities into which the Warrant could be
converted, then the Exchange Price in effect immediately prior to such subdivision or share dividend or bonus issue shall be proportionately
reduced and the number of shares acquirable upon exchange hereunder shall be proportionately increased. Conversely, if the class
and series of Company securities into which the Warrant could then be converted are combined into a smaller number of shares,
the Exchange Price in effect immediately prior to such combination shall be proportionately increased.

 

4.3
Reclassification, Exchange, Substitutions, Etc. Upon any reclassification, exchange, substitution, or other event that
results in a change of the number and/or class of the securities issuable upon exchange or exercise of this Warrant, Holder shall
be entitled to receive, upon conversion of this Warrant, the number and kind of securities and property that Holder would have
received for the Warrant Shares if this Warrant had been converted immediately before such reclassification, exchange, substitution,
or other event. Such an event shall include any automatic conversion of the outstanding or issuable securities of the Company
of the same class or series as the Warrant Shares to Ordinary Shares pursuant to the Company’s Constitutional Documents
upon the closing of a public offering of the Company's Ordinary Shares. The Company or its successor shall promptly issue to Holder
an amendment to this Warrant setting forth the number and kind of such new securities or other property issuable upon exchange
or exercise of this Warrant as a result of such reclassification, exchange, substitution or other event that results in a change
of the number and/or class of securities issuable upon exchange or exercise of this Warrant. The amendment to this Warrant shall
provide for adjustments (as determined in good faith by the Company’s Board) which shall be as nearly equivalent as may
be practicable to the adjustments provided for in this Article 4 including, without limitation, adjustments to the Warrant Price
and to the number of securities or property issuable upon exchange of the new Warrant. The provisions of Sections 4.2 and 4.3
shall similarly apply to successive subdivisions, combinations, Share dividends, distributions, reclassifications, exchanges,
substitutions, and dilutive events.

 

4.4
Notices of Record Date, Etc. In the event that the Company shall:

 

(1)
declare or propose to declare any dividend upon Company securities, whether payable in cash, property, shares or other securities
and whether or not a regular cash dividend, or

 

(2)
offer for sale any additional shares of any class or series of the Company’s stock or securities exchangeable for or convertible
into such stock in any transaction that would give rise (regardless of waivers thereof) to pre-emptive rights of any class or
series of shareholders, or

 

    9

     

    

 

(3)
effect or approve any reclassification, exchange, substitution or recapitalization of the share capital of the Company, including
any subdivision or combination of its issued shares, or consolidation, amalgamation or merger of the Company with, or sale of
all or substantially all of its assets to, another corporation, or to liquidate, dissolve or wind up (including an assignment
for the benefit of creditors), or

 

(4)
offer holders of registration rights the opportunity to participate in any public offering of the Company’s securities,
or receive a notice or demand for redemption of Company securities, or

 

(5)
offer shareholders the opportunity to participate in any public offering of the Company’s securities,

 

then,
in connection with such event, the Company shall give to Holder:

 

(i)
at least ten (10) days prior written notice of the date on which the books of the Company shall close or a record shall be taken
for such a distribution or offer in respect of the matters referred to in (1) or (2) above, or for determining rights to vote
in respect of the matters referred to in (3) above; and

 

(ii)
in the case of the matters referred to in (4) and (5) above, the greater of (A) ten (10) days prior written notice of the date
when the same shall take place and (B) the date that notice is or is required to be given to any shareholder.

 

Such
notice in accordance with the foregoing clause (1) shall also specify, in the case of any such distribution, the date on which
Holders of Company securities shall be entitled thereto and the terms of such distribution, and such notice in accordance with
clause (2) shall also specify the date on which Holders of Company securities shall be entitled to convert their stock for securities
or other property deliverable upon such reorganization, reclassification, exchange, substitution, consolidation, merger or sale,
as the case may be, and the terms of such exchange. Each such written notice shall be given by first class mail, postage prepaid,
addressed to Holder of this Warrant at the address of Holder.

 

4.5
Equitable Adjustments by Board. If any event occurs as to which the provisions of this Section 4 are not strictly applicable
or if strictly applicable would not fairly protect the rights of Holder in accordance with the essential intent and principles
of such provisions, then the Board shall make an adjustment in the application of such provisions, in accordance with such essential
intent and principles, so as to protect such rights.

 

4.6
Officer’s Statement as to Adjustments. Whenever the Number of Shares subject to this Warrant is required to be or
is adjusted as provided in Section 4, the Company shall forthwith file at the office designated for the conversion of this Warrant
a statement, signed by the chief financial officer of the Company, showing in reasonable detail the facts requiring such adjustment
and the number of issuable Warrant Shares that will be effective after such adjustment. If such notice relates to an adjustment
resulting from an event referred to in Section 4.3, such notice shall be included as part of the notice required to be mailed
or published under the provisions of Section 4.4.

 

    10

     

    

 

4.7
Issue of Securities other than Warrant Shares. In the event that at any time, as a result of any adjustment made pursuant
to Section 4, Holder thereafter shall become entitled to receive any securities of the Company, other than Warrant Shares, thereafter
the number of such other securities so receivable upon conversion of this Warrant shall be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Warrant Shares within
this Section 4.

 

Section
5. Rights of the Warrant Holder.

 

This
Warrant shall entitle Holder, upon Conversion, to the benefit of all rights as are applicable to any shareholder of the Company
holding shares that are the same class and series as the Warrant Shares.

 

Section
6.Representations, Warranties and Covenants of the Company. The Company represents and warrants to, and covenants with,
Holder that:

 

6.1
 Corporate Power; Authorization. The Company has all requisite corporate power and has taken all requisite corporate
action to execute and deliver this Warrant, to issue the Warrant and Warrant Shares and to carry out and perform all of its obligations
hereunder. This Warrant has been duly authorized, executed and delivered on behalf of the Company and constitutes the valid and
binding agreement of the Company, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency,
reorganization or similar laws relating to or affecting the enforcement of creditors' rights generally and (ii) as limited by
equitable principles generally. Any person executing this Warrant on behalf of the Company is a duly authorized officer of the
Company with all necessary legal authority to bind the Company generally and with the specific legal authority to cause the Company
to execute and deliver this Warrant.

 

6.2 Validity
of Securities. This Warrant, when sold by the Company against the consideration therefor as provided herein, will be validly
authorized, issued and fully paid. The issuance and delivery of the Warrant is not subject to any consent, approval, pre-emptive
or any similar rights of the shareholders of the Company (which has not been duly secured or waived), including without limitation
any pre-emptive rights, rights of first refusal or any liens or encumbrances except for restrictions on transfer provided for
herein or under applicable securities laws; and when and if Warrant Shares are issued upon conversion and in accordance with the
terms hereof and this Warrant is converted for such Warrant Shares, such shares will be, at each such issuance, validly issued
Warrant Shares in the Company’s capital, in compliance with all applicable securities laws and free of any liens or encumbrances
except for restrictions on transfer provided for herein, in the Constitutional Documents or under such applicable securities laws.

 

6.3 Capitalization.
At the Issue Date, the authorized share capital of the Company is as set forth in the Company’s current public filings with
the U.S. Securities and Exchange Commission (“SEC Filings”). There are no other options, warrants, conversion privileges
or other contractual rights presently outstanding to purchase or otherwise acquire any authorized but unissued shares in the Company's
capital or other securities that are not disclosed in the SEC Filings. If at any time while this Warrant is in effect the Company
ceases to be current in its reporting under the U.S. Exchange Act of 1934, the Company shall provide Holder a detailed capitalization
table reflecting its Fully-Diluted equity.

 

    11

     

    

 

6.4 No
Conflict. The execution and delivery of this Warrant do not, and the consummation of the transactions contemplated hereby
and thereby will not, conflict with, or result in any violation of, or default (with or without notice or lapse of time, or both),
or give rise to a right of termination, cancellation or acceleration of any obligation or to a loss of a material benefit, under,
any provision of the Company’s Constitutional Documents, as amended, or any mortgage, indenture, lease or other agreement
or instrument, permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable
to the Company, its properties or assets, the effect of which would have a material adverse effect on the Company or materially
impair or restrict its power to perform its obligations as contemplated hereby.

 

6.5 Governmental
and other Consents. As at the Issue Date, no consent, approval, order or authorization of, or registration, qualification,
designation, declaration or filing with, any governmental authority or other person or entity is required on the part of the Company
in connection with the issuance, sale and delivery of the Warrant and the Warrant Shares, except such filings as shall have been
made prior to and shall be effective on and as of the date hereof. All Company and shareholder consents required in connection
with issuance of the Warrant and Warrant Shares have either been obtained by the Company or no such consents are required.

 

6.6 Exempt
from Registration. As at the Issue Date, assuming the accuracy of the representations and warranties of Holder in Section
7 hereof, the offer, sale and issuance of the Warrant and the Warrant Shares will be exempt from any registration requirements
under British Virgin Islands law.

 

Section
7.Representations and Warranties of Holder. Holder hereby represents and warrants to the Company as of the Issue Date
as follows:

 

7.1 Investment
Experience. Holder is an “accredited investor” within the meaning of Rule 501 under the Securities Act of the
United States of America, and was not organized for the specific purpose of acquiring the Securities. Holder is aware of the Company’s
business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable
decision to acquire the Securities. Holder has such business and financial experience as is required to give it the capacity to
protect its own interests in connection with the purchase of the Warrant and the Warrant Shares.

 

7.2 Investment
Intent. Holder is purchasing the Warrant for investment for its own account only and not with a view to, or for resale in
connection with, any “distribution” thereof within the meaning of the Securities Act. Holder understands that the
Warrant has not been registered under the Securities Act or registered or qualified under any state securities law in reliance
on specific exemptions therefrom, which exemptions may depend upon, among other things, the bona fide nature of Holder’s
investment intent as expressed herein.

 

    12

     

    

 

7.3 Authorization.
Holder has all requisite power and has taken all requisite action required of it to carry out and perform all of its obligations
hereunder. The execution and delivery of this Warrant has been duly authorized, executed and delivered on behalf of Holder and
constitutes the valid and binding agreement of Holder, enforceable in accordance with its terms, except (i) as limited by applicable
bankruptcy, insolvency, reorganization or similar laws relating to or affecting the enforcement of creditors’ rights generally
and (ii) as limited by equitable principles generally. The consummation of the transactions contemplated herein and the fulfillment
of the terms herein will not result in a breach of any of the terms or provisions of Holder’s constitutional documents or
instruments. Any person executing this Warrant on behalf of Holder is a duly authorized officer of Holder with all necessary legal
authority to bind Holder generally and with the specific legal authority to cause Holder to execute and deliver this Warrant.

 

Section
8.Notices.

 

All
notices to be given under this Warrant shall be in writing and shall be given: (i) personally, or (ii) by reputable private delivery
service, (iii) by regular first-class mail, or certified mail return receipt requested, or (iv) by fax, or (v) by electronic mail.
If sent by fax or electronic mail, such notice shall also be sent concurrently by one of the other methods provided herein. Notices
may be sent to the parties in accordance with their contact details specified below or to any other address, fax number or electronic
mail address later designated in writing by a party. All notices shall be deemed to have been given upon delivery in the case
of notices personally delivered, or at the expiration of one Business Day following delivery to the private delivery service,
or two Business Days following the deposit thereof in the United States mail, with postage prepaid, or upon receipt during the
Business Day where received in the case of notices sent by fax or electronic mail, but subject to reasonably concurrent transmission
by another method, as specified above. The addresses for such communications shall be:

 

if
to Holder, at

 

Partners
for Growth V, L.P.

1660
Tiburon Blvd.

Tiburon,
California 94920

Attention:
Chief Financial Officer

Fax:
(415) 781-0510

Email:
Notices@pfgrowth.com

 

with
a copy (not constituting notice) to

 

Tanner
De Witt Solicitors

Attn:
Jan Willem Möller / Eddie Look

17th
Floor, Tower One, Lippo Centre

89
Queensway, Hong Kong

Fax:
+852 2802 3553

Email:
janmoeller@tannerdewitt.com / eddielook@tannerdewitt.com

 

    13

     

    

 

with
a copy (not constituting notice) to

 

Greenspan
Law Office

Attn:
Benjamin Greenspan, Esq.

620
Laguna Road

Mill
Valley, CA 94941

Fax:
(415) 738-5371

Email:
ben@greenspan-law.com

 

with
the original of this Warrant and any replacement, restatement or reissue of this Warrant to be delivered to:

 

Robert
W. Baird & Co., Inc.

Two
Belvedere Place, Ste. 330

Mill
Valley, CA 94941

ATTN:
Nicolle Hudachek

Phone
# 415-627-3208

Email:
NHudachek@rwbaird.com

 

or
if to the Company, at

 

Borqs
International Holding Corp.

Tower A, Building B23

Universal Business Park

No. 10 Jiuxiangqiao Road

Chaoyang District, Beijing 100015, China

Attn: Pat Chan, CEO

Facsimile No.: 86-10-5975-6363

Telephone No: 86-10-5975-6336

Email: pat.chan@borqs.com

 

with a copy to:

 

Ellenoff
Grossman & Schole LLP

1345
Avenue of the Americas, 11th Floor

New
York, NY 10105, U.S.A.

Attn:Jessica
Yuan

Phone:212-370-1300

Fax:212-370-7889

Email:jyuan@epsllp.com

 

Each
party hereto may from time to time change its address for notices under this Section 9 by giving at least 10 calendar days' notice
of such changes address to the other party hereto.

 

    14

     

    

 

Section
10. Amendments and Waivers.

 

This
Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the party
against which enforcement of such change, waiver, discharge or termination is sought.

 

Section
11. Applicable Law; Severability.

 

This
Warrant shall be governed by laws of the British Virgin Islands and for the benefit of Holder, the Company agrees that the courts
of the British Virgin Islands have jurisdiction to hear and determine any action, suit or proceeding, and settle any disputes,
in connection with this Warrant and accordingly submits to the jurisdiction of the British Virgin Islands courts. The Company
waives any objection which it may have to the British Virgin Islands courts on the grounds of inconvenient forum or otherwise
as regards proceedings in connection with this Warrant, agrees not to argue before any court or tribunal that such courts are
an inappropriate or inconvenient forum and agrees that a judgment or order of the British Virgin Islands courts in connection
with this Warrant is conclusive and binding on it and may be enforced in the courts of any other jurisdiction. If any one or more
of the provisions contained in this Warrant, or any application of any provision thereof, shall be invalid, illegal, or unenforceable
in any respect, the validity, legality and enforceability of the remaining provisions contained herein and all other applications
of any provision thereof shall not in any way be affected or impaired thereby.

 

Section
12. Specific Performance.

 

Without
prejudice to any other rights or remedies that Holder may have, the Company acknowledges and agrees that damages alone would not
be an adequate remedy for any breach of the terms of this Warrant by the Company. Accordingly, Holder shall be entitled, to the
remedies of injunction, specific performance or other equitable relief for any actual breach of the terms of this Warrant.

 

Section
13. Construction.

 

Section
headings are only used in this Agreement for convenience. The Company and Holder each acknowledge that the headings may not describe
completely the subject matter of the applicable Section, and the headings shall not be used in any manner to construe, limit,
define or interpret any term or provision of this Agreement. This Agreement has been fully reviewed and negotiated between the
parties and no uncertainty or ambiguity in any term or provision of this Agreement shall be construed strictly against either
party under any rule of construction or otherwise.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    15

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed on the day and year first above written.

 

	COMPANY:

	 	ACKNOWLEDGED AND AGREED:

	 	 	 	 	 
	 	 	 	HOLDER:
	 	 	 	 	 
	BORQS TECHNOLOGIES, INC.	 	PARTNERS FOR GROWTH V, L.P.

	 	 	 	 	 
	By:		 	By:	
	 	 	 	 	 
	Name:	 	 	Name:	 
	 	 	 	 	 
	Title:	 	 	Title:	 

 

PFG5 – BORQS TECHNOLOGIES, INC. Prepayment
Warrant Signature Page

 

    

     

    

 

Exhibit
A

 

To:
BORQS TECHNOLOGIES, INC.

 

ELECTION
TO EXCHANGE OR EXERCISE

 

The
undersigned hereby exercises its right to Exchange its Warrant for _________________ fully paid, validly issued and nonassessable:

 

☐Ordinary
Shares 

 

The
undersigned hereby exercises its right to Exercise its Warrant for _________________ fully paid, validly issued and nonassessable:

 

☐Ordinary
Shares 

 

[check
one box]

 

covered
by the attached Warrant in accordance with the terms thereof.

 

and
requests that certificates or other legal evidence of ownership of such Shares be issued in the name of, and delivered to:

 

______________________

 

______________________

 

______________________

 

	Date:	 	[Holder]	 	 
	 	 	 	 	 
	 	 	 	By	 
	 	 	 	 	Name:
	 	 	 	 	Title:
	 	 	 	 	 
	 	 	 	 	 

 

    

     

    

 

Exhibit
B

 

ASSIGNMENT
FORM

 

To:
BORQS TECHNOLOGIES, INC.

 

The
undersigned hereby assigns and transfers this Warrant to

 

 

 

(Insert
assignee’s social security or tax identification number)

 

 

 

(Print
or type assignee’s name, address and postal code)

 

 

 

 

 

 

and
irrevocably appoints _______________________________________ to transfer this Warrant on the books of the Company.

 

	Date:	 	 	[HOLDER]
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	 
	 	 	 	Name:	 
	 	 	 	 	 
	 	 	 	Title:wmg-ex1043_45.htm

 

Exhibit 10.43

SEPARATION AGREEMENT AND RELEASE

 

This SEPARATION AGREEMENT AND RELEASE (“Agreement”) is between Jon Platt (“you”) and Warner/Chappell Music, Inc. (“Company”).  You and Company agree as follows:

1.Separation Date.  As you have requested, your employment with Company will end on December 31, 2018 or an earlier date to be determined by Company in its sole discretion (the earlier of such dates, “Separation Date”) and as of the Separation Date you will have no further authority or responsibilities as an employee of Company; provided, however, that in the event Company so requests prior to the Separation Date, you agree to render services to Company through the Separation Date from outside of the office, including being available by telephone and email.  As of the Separation Date, the Employment Agreement between you and Company dated February 10, 2016 (the “Employment Agreement”) will be terminated, with no liability to either you or Company thereunder.  In addition, (a) as of the Separation Date or an earlier date to be determined by Company in its sole discretion, you shall resign (i) as an officer and/or director of Company and its subsidiaries and affiliates (as applicable) and (ii) from any and all trade association and industry body board seats related to your employment with Company (which Company and you believe are limited to the American Society of Composers, Authors and Publishers and the National Music Publishers’ Association), and (b) as of the date on which you execute this Agreement, you shall resign from the board of directors of Warner Music Group Corp., and you hereby further agree to execute promptly at the request of Company any additional documents necessary to effectuate the provisions of this sentence.   

2.COBRA; Bonus.

(a)COBRA.  During the period commencing immediately after the Separation Date and through the last day of the calendar month in which your termination occurs (such period, the “Benefits Period”), Company shall continue to provide you and your eligible family members with medical health insurance coverage, including dental and vision insurance coverage under the group insurance plan maintained by Company in accordance with the terms of the applicable plans, to the extent that you had elected such coverage prior to the Separation Date (“Benefits Coverage”).  Following the Benefits Period, you have the right, in accordance with and subject to the Consolidated Omnibus Budget Reconciliation Act, as amended (“COBRA”), at your expense, to elect to continue your and/or your dependents’ Benefits Coverage for such period of time as required under COBRA.  Further information regarding COBRA coverage, including enrollment forms and premium quotations, will be sent to you separately.

(b)Bonus.  You shall be eligible to receive an annual bonus with respect to Company’s 2018 fiscal year, as determined by Company in accordance with Paragraph 3(b) of the Employment Agreement, being payable when bonuses in respect of such fiscal year are paid to employees of Company generally.  Notwithstanding anything to the contrary in the Employment Agreement, you shall not be eligible to receive an annual bonus (or a pro-rata portion thereof) with respect to Company’s 2019 fiscal year.

3.Vacation Pay.  Company will pay you any accrued and unused vacation time and personal time unreimbursed expenses incurred by you, and all accrued and vested benefits owed to you in each case through the Separation Date and in accordance with Company’s policies.

1

 

4.Mutual Waiver and Release.

(a)Waiver and Release by You.  In exchange for your early release from the Employment Agreement and Company’s release pursuant to Paragraph 4(b), you, on behalf of yourself, your personal representatives, heirs, estate, successors and assigns (collectively, “Your Group”), agree to waive, release and forever discharge Company, its successors, parents, subsidiaries and affiliates, and their respective directors, officers, agents, representatives and employees (collectively, “Company Group”) from all claims of any kind.  You, on behalf of yourself and Your Group, release Company Group from liability for any claims or damages you may have against it as of the date you sign this Agreement, whether those claims are known to you or unknown, except for claims that cannot be waived or released under the law or as otherwise provided in Paragraphs 16 and 17.  Your release on behalf of yourself and Your Group includes all claims relating to the Employment Agreement, your employment with Company, your benefits through Company, or the termination of your employment, whether arising under common law, federal, state or local law, regulation, ordinance or order.  Examples of claims waived and released by you include, but are not limited to, any alleged violation of the following laws and other sources of legal rights, each as amended:

	
 
	
•
	
Sections 1981 through 1988 of Title 42 of the United States Code;

	
 
	
•
	
the Employee Retirement Income Security Act of 1974 (except to the extent provided otherwise in Paragraph 16);

	
 
	
•
	
the Immigration Reform and Control Act of 1986;

	
 
	
•
	
the Americans with Disabilities Act of 1990;

	
 
	
•
	
the Age Discrimination in Employment Act of 1967;

	
 
	
•
	
the Worker Adjustment and Retraining Notification Act;

	
 
	
•
	
the Genetic Information Non-discrimination Act;

	
 
	
•
	
the Occupational Safety and Health Act;

	
 
	
•
	
the Rehabilitation Act of 1973;

	
 
	
•
	
the Fair Credit Reporting Act;

	
 
	
•
	
the Equal Pay Act;

	
 
	
•
	
the Family and Medical Leave Act;

	
 
	
•
	
Title VII of the Civil Rights Act of 1964;

	
 
	
•
	
the Civil Rights Act of 1991; 

	
 
	
•
	
California Family Rights Act – Cal. Gov’t Code §12945.2 et seq.;

2

 

	
 
	
•
	
California Fair Employment and Housing Act – Cal. Gov’t Code §12900 et seq.;

	
 
	
•
	
California Unruh Civil Rights Act – Cal. Civ. Code §51 et seq.;

	
 
	
•
	
Statutory Provisions Regarding the Confidentiality of AIDS Information –Cal. Health & Safety Code §120775 et seq.;

	
 
	
•
	
California Confidentiality of Medical Information Act – Cal. Civ. Code §56 et seq.;

	
 
	
•
	
California Military Personnel Bias Law – Cal. Mil. & Vet. Code §394 et seq.; 

	
 
	
•
	
the California Occupational Safety and Health Act, Cal. Labor Code §6300 et seq., and any applicable regulations thereunder;

	
 
	
•
	
the California Consumer Credit Reporting Agencies Act – Cal. Civ. Code §1785 et seq.; and the California Investigative Consumer Reporting Agencies Act – Cal. Civ. Code §1786 et seq.;

	
 
	
•
	
other provisions of the California Labor Code that lawfully may be released;

	
 
	
•
	
Los Angeles AIDS-Based Discrimination Ordinance, Los Angeles Municipal Ordinance §45.80 et seq.;

	
 
	
•
	
California Parental Leave Law;

	
 
	
•
	
California Apprenticeship Program Bias Law;

	
 
	
•
	
California Equal Pay Law;

	
 
	
•
	
California Whistleblower Protection Law;

	
 
	
•
	
Statutory Provisions Regarding California Family and Medical Leave;

	
 
	
•
	
Statutory Provisions Regarding California Electronic Monitoring of Employees;

	
 
	
•
	
the California Investigative Consumer Reporting Agencies Act;

	
 
	
•
	
California Political Activities of Employees Law;

	
 
	
•
	
California Domestic Violence Victim Employment Leave Law;

	
 
	
•
	
California Court Leave Law;

	
 
	
•
	
California Worker Adjustment and Retraining Notification Act;

	
 
	
•
	
any other federal, state, local or other law, or any other federal, state or local law, rule, regulation, constitution, code, guideline or ordinance;

3

 

	
 
	
•
	
any public policy, contract (oral or written, express or implied), tort law or common law; and

	
 
	
•
	
any statute, common law, agreement or other basis for seeking or recovering any award of costs, fees or other expenses, including but not limited to attorneys’ fees and/or costs.

(b)Waiver and Release by Company.  Company, on behalf of itself and Company Group, waives, releases, and forever discharges you and Your Group from all claims Company or Company Group may have against you and Your Group as of the date Company signs this Agreement, under any common law, federal, state or local law, regulation, ordinance or order, arising out of your employment with Company, except for any claim that you or Your Group committed a crime or engaged in acts or omissions to act constituting fraud or other willful misconduct.

5.Acknowledgments and Affirmations.

You affirm that:

(a)you have not filed, caused to be filed, or presently are a party to any claim against Company Group; 

(b)except for the payments and benefits expressly set forth in this Agreement, as of the date you sign this Agreement (i) you have been paid and/or have received all compensation, wages, bonuses, commissions and/or benefits which are due and payable, including, without limitation, any vacation time you have earned but have not used as of the Separation Date and (ii) you are not entitled to any other payments or benefits from Company, including, without limitation, pursuant to the Warner Music Inc. Severance Pay Plan.  You have reported all of the hours you worked while you were employed by Company.

(c)Company has granted you any leave to which you were entitled from Company under the Family and Medical Leave Act or related state or local leave or disability accommodation laws;

(d)you have no known workplace injuries or occupational diseases;

(e)you are not Medicare eligible and have not filed a claim for Medicare benefits; 

(f)you are not aware of any fraud or wrongdoing by Company Group and you have not been retaliated against for reporting any allegations of fraud or other wrongdoing by Company Group; and 

(g)all of Company’s decisions regarding your pay and benefits through the date you sign this Agreement were not discriminatory based on age, disability, race, color, sex, religion, national origin or any other classification protected by law.

4

 

6.Release of Civil Code Section 1542.

(a)It is Company’s and your intention that this Agreement be effective as a full and final accord and satisfaction and release of each and every matter referred to by its terms.  You and Company acknowledge that you are each familiar with Section 1542 of the Civil Code of the State of California, which provides as follows: 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

You and Company waive and relinquish any right and benefit which you and Company have or may have under Section 1542 to the full extent that may lawfully be waived.

(b)In waiving the protections of California Civil Code Section 1542, you and Company expressly acknowledge awareness that the actual facts and circumstances surrounding the agreement upon which this release is given may later be discovered to be different from those now known or believed to be true, and you assume such risk to effect a full and complete waiver and release.  You and Company warrant that you and it have read this Agreement, including this waiver of California Civil Code Section 1542, and that you and it have consulted counsel or have had the opportunity to consult counsel about this Agreement and specifically about the waiver of Section 1542, and that you and it understand this Agreement and the Section 1542 waiver.  You further acknowledge by your signature below that you freely and knowingly enter into this Agreement.

7.Confidentiality and Non-Disclosure.  Except as otherwise provided in Paragraph 9 or Paragraph 17, you shall not at any time exploit, use, sell, publish, disclose, or communicate to any person, corporation or entity, either directly or indirectly, any trade secrets, privileged information, confidential information, business information or proprietary information regarding Company Group, including, without limitation, the terms of any agreements including this Agreement between Company or any of its affiliates and any third party, except that you may disclose the financial terms of this Agreement to tax authorities and the financial terms of this Agreement and any other information addressed in this Agreement either (a) to your attorneys and accountants as necessary to secure their advice; (b) as needed to enforce your rights or defend yourself against any claim which is dependent on or affected by the information being disclosed; or (c) with respect to any matter which is publicly known or available other than as a result of your breach of your obligations hereunder.  You shall not during the one-year period following the date hereof, without the prior written approval of Executive Vice President, Corporate Communications and Marketing for Warner Music Group, discuss any Company Topic (as defined below) with any press or media representative, nor shall you provide any information regarding any Company Topic to any press or media representative.  “Company Topic” shall mean any matter relating to Company or its affiliates, including any of their respective employees or artists.  Except for any disclosure required by Warner Music Group Corp. as an SEC reporting company, neither you nor Company shall make any public announcement or any statement to any press or media representative concerning your termination or separation from Company other than 

5

 

any such announcement or statement which is approved in advance by both you and the Company.  With respect to any disclosure required by Warner Music Group Corp. as an SEC reporting company, you will be given the advance opportunity to provide your input.

8.Cooperation.  To the extent allowed by law, you agree to cooperate reasonably and truthfully with Company, at Company’s expense, in the prosecution, defense or pursuit of any matter in which you were involved during your employment; provided that Company shall coordinate with you reasonably in advance to schedule your cooperative efforts hereunder so as to accommodate your prior personal and professional commitments.  You also agree not to voluntarily aid or assist any legal action or proceeding filed by third parties against Company, unless your participation is required under the law.

9.Protected Disclosures and Statements.  Nothing in this Agreement prohibits you from complying with any applicable law, rule or regulation or responding truthfully to a lawfully-issued subpoena, court order, or other binding request by a regulatory agency or governmental authority or reporting possible violations of U.S. federal law or regulation to any governmental agency or entity or making other disclosures that are protected under the whistleblower provisions of U.S. federal law or regulation.  However, except as provided otherwise in this Agreement, you are not authorized to disclose any information covered by Company Group’s attorney-client privilege or attorney work product or Company Group’s trade secrets without prior written consent of the General Counsel of Warner Music Inc.  Further, Company hereby informs you, and you hereby acknowledge, in accordance with 18 U.S.C. Section 1833(b), that you may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret where the disclosure (i) is made (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to any attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

10.Return of Property.  You agree to promptly return to Company all property of Company in your possession, including, but not limited to:  keys, identification cards, files, records, credit cards, electronic equipment, and books and manuals issued to you by Company, and all confidential memoranda, notes, records, reports and other documents (and all copies thereof) relating to the business of Company which you possess or have under your control.  Subject to the foregoing, you shall remain entitled to retain a digital and/or physical copy of your personal and professional contacts listing or rolodex.    

11.Card Pay-Off Requirement.  You hereby represent and agree that any outstanding balances on corporate credit cards provided to you by Company have been paid in full, or will be fully paid by you prior to the due date specified by the credit card provider.

12.Representations and Effective Date.  

(a)Consideration Period.  You understand that this Agreement is a legally binding document under which you are giving up certain rights, including any rights you have or may have under the Age Discrimination in Employment Act of 1967 and the Older Workers Benefit Protection Act of 1990 arising from your employment with Company, the termination of that employment or any other dealings of any kind between you and Company Group as of the date 

6

 

you sign this Agreement unless you have revoked this Agreement pursuant to Paragraph 12(b), in consideration for your early release from the Employment Agreement and Company’s release of claims against you.  You acknowledge that you have been advised to discuss this Agreement with an attorney and other professional persons unrelated to Company before you sign it, and that you have been given the time necessary to seek such advice and counsel.  You have had at least twenty-one (21) days to consider this Agreement.  You also agree that the 21-day consideration period will not restart if changes, material or immaterial, are made to this Agreement, and you waive any right you might have to restart the running of the 21-day consideration period.  You acknowledge that you have read this Agreement and that you have signed this Agreement freely and voluntarily, with full knowledge of all material facts.

(b)Revocation Period.  You understand you may revoke this Agreement within seven (7) days of its execution, by notifying Company in writing of your desire to revoke the Agreement.  If you revoke this Agreement, the Agreement will have no legal effect.  Any revocation within this period must be submitted, in writing, to Executive Vice President and General Counsel, Warner Music Inc., and must state: “I hereby revoke my acceptance of our Separation Agreement and Release.” The revocation must be either: (a) personally delivered to Executive Vice President and General Counsel, Warner Music Inc., 1633 Broadway, New York, NY 10019, within seven (7) calendar days after you sign the Agreement; (b) mailed to Executive Vice President and General Counsel, at the address specified above by First Class United States mail and postmarked within seven (7) calendar days after you sign this Agreement; or (c) delivered to Executive Vice President and General Counsel, at the address specified above through a reputable overnight service with documented evidence that it was sent within seven (7) calendar days after you signed the Agreement.  The provisions of this Agreement, including any payments or benefits due to you, are not binding on Company until eight days after the execution of this Agreement by you you (and provided you have not revoked your acceptance pursuant to this Paragraph).  This Agreement will become binding and enforceable on the eighth day after it is signed by you (unless revoked as provided in this Paragraph).

13.Complete Agreement.  This Agreement reflects the final and complete Agreement between you and Company with respect to the subjects addressed by it.  This Agreement supersedes any and all prior agreements between you and Company, including the Employment Agreement.  No modification or waiver of the terms of this Agreement will be valid unless made in writing and signed by an officer of Company and you.  This Agreement may be executed in one or more counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile transmission or by email shall be effective as delivery of a manually executed counterpart of this Agreement.

14.Severability.  If any provision of this Agreement is ruled invalid, that will not affect any other provisions of this Agreement that can be given effect without the invalid provision.  The provisions of this Agreement are severable.

15.Choice of Law.  This Agreement will be governed by and construed according to the laws of the State of California, without regard to any choice of law provisions.

7

 

16.Claims Not Released.  You are not waiving any rights you may have to: (a) your own vested accrued employee benefits under any health, welfare or retirement benefit plans of Company as of your Separation Date; (b) benefits and/or the right to seek benefits under applicable workers’ compensation and/or unemployment compensation statutes; (c) pursue claims which by law cannot be waived by signing this Agreement; (d) enforce this Agreement; (e) challenge the validity of this Agreement; (f) be covered or reimbursed under any liability or other insurance policies maintained by Company in accordance with the terms of those policies; and/or (g) be indemnified by Company as a former officer and director of Company and its subsidiaries and affiliates in conformity with their programs, policies or by-laws or as provided under applicable law in accordance with the terms of those programs, policies, by-laws or laws.

17.Government Agencies.  Nothing in this Agreement prohibits or prevents you from filing a charge or communicating with, providing documents or information to, or participating, testifying or assisting in any investigation, hearing or other proceeding before, any federal, state or local government agency or regulatory authority, including but not limited to, the EEOC, NLRB, OSHA, or the SEC.  Any non-disclosure, confidentiality or waiver provision in this Agreement does not prohibit you from initiating communications directly with, responding to any inquiry from, or providing testimony before, any self-regulatory organization or state or federal regulatory authority, regarding the Company, your employment, this Agreement or its underlying facts or circumstances.  Any cooperation provision in this Agreement does not require you to contact the Company regarding the subject matter of any such communications.  By signing this Agreement, however, you waive the right to receive damages or monetary recovery from any such charge you may file or which is filed on your behalf, but it will not limit your right to receive an incentive award authorized under federal or state statute or regulation for information provided to any federal or state regulatory, government or law enforcement agencies, if applicable.

18.Collective/Class Action Waiver.  If any claim is not subject to release, to the extent permitted by law, you waive any right or ability to be a class or collective action representative or to otherwise participate in any putative or certified class, collective or multi-party action or proceeding based on such a claim in which Company or any of its affiliates is a party.

19.Non-Solicitation.  While you are employed by Company and through September 30, 2020, you shall not, except as otherwise expressly agreed to by Company in writing, directly or indirectly, as an employee, agent, consultant, partner, joint venturer, owner, officer, director, member of any other firm, partnership, corporation or other entity, or in any other capacity: (a) induce (or attempt to induce) a breach or disruption of the contractual relationship between Company or any affiliate of Company (or a label distributed by Company or an affiliate of Company) and any recording artist (including, without limitation, a duo or a group), publisher or songwriter (including without limitation, a recording artist or songwriter who has contracted through a furnishing entity) (“Company Artist”); (b) use Company’s (or any of its affiliates’) trade secrets or confidential information to solicit, induce or encourage any individual who at the time is, or who within the one-year prior period was, a Company Artist to end its relationship with Company, Company affiliate or label or to enter into an exclusive recording or music publishing agreement with any other party or (c) solicit, induce or encourage any individual who at the time is, or who within the six-month prior period was, an employee of Company or any Company affiliate in the United States to leave his or her employment or to commence employment with any other party.

8

 

20.Section 409A.  This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and will be interpreted in a manner intended to comply with Section 409A of the Code (and any related regulations or other pronouncements).  Amounts payable under this Agreement shall be deemed not to be a “deferral of compensation” subject to Section 409A of the Code to the extent provided in the exceptions set forth in Treas. Reg. Section 1.409A-1(b)(4) (“short-term deferrals”) and Treas. Reg. Section 1.409A-1(b)(9) (“separation pay plans”) and other applicable provisions of Treas. Reg. Section 1.409A-1 through A-6.  References under this Agreement to a termination of your employment shall be deemed to refer to the date upon which you have experienced a “separation from service” within the meaning of Section 409A of the Code.  Notwithstanding anything herein to the contrary, (a) if at the time of your separation from service with Company you are a “specified employee”  as defined in Section 409A of the Code (and any related regulations or other pronouncements thereunder) and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section 409A of the Code, then Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to you) until the date that is six months following your separation from service (or the earliest date as is permitted under Section 409A of the Code), at which point all payments deferred pursuant to this Paragraph shall be paid to you in a lump sum and (b) if any other payments of money or other benefits due to you hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner, determined by Company, that does not cause such an accelerated or additional tax.  To the extent any reimbursements or in-kind benefits due to you under this Agreement constitute “deferred compensation” under Section 409A of the Code, any such reimbursements or in-kind benefits shall be paid to you in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv).  Each payment made under this Agreement shall be designated as a “separate payment” within the meaning of Section 409A of the Code.  For the avoidance of doubt, any continued health benefit plan coverage that you are entitled to receive following your termination of employment is expected to be exempt from Section 409A of the Code and, as such, shall not be subject to delay pursuant to this Paragraph.

 

							
	
Date:
	
 
	
9/12/18
	
 
	
/s/ Jon Platt

	
 
	
 
	
 
	
 
	
JON PLATT

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
WARNER/CHAPPELL MUSIC, INC.

	
 
	
 
	
 
	
 
	
 

	
Date:
	
 
	
9/12/18
	
 
	
By:
	
 
	
/s/ Paul M. Robinson

	
 
	
 
	
 
	
 
	
Name:
	
 
	
Paul M. Robinson

 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}]]