Document:

Exhibit 10.2

 

 

AMENDMENT NO. 3 TO SENIOR

SECURED TERM LOAN AGREEMENT 

 

This AMENDMENT NO. 3 (this “Amendment),
dated as of March 28, 2013, is made with respect to the Senior Secured Term Loan Credit Agreement, dated as of August 31, 2011
(as amended by that certain Amendment No. 1 dated as of December 7, 2012, that certain Amendment No. 2 to Senior Secured Term Loan
Agreement dated as of January 23, 2013, and as further amended, restated, supplemented or otherwise modified from time to time,
the “Credit Agreement”), among MEDLEY CAPITAL CORPORATION, a Delaware corporation (the “Borrower”),
the several banks and other financial institutions from time to time party to the Credit Agreement as lenders (the “Lenders”),
ING CAPITAL LLC, as administrative agent for the Lenders under the Credit Agreement (in such capacity, together with its successors
in such capacity, the “Administrative Agent”), and solely for purposes of Section 2.8, MOF I BDC LLC, a Delaware
limited liability company (“the “Subsidiary Guarantor”, and together with the Borrower, the “Obligors”).
Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement (as amended hereby).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the Credit
Agreement, the Lenders have made certain loans and other extensions of credit to the Borrower; and

 

WHEREAS, the Borrower has requested
that the Lenders and the Administrative Agent amend certain provisions of the Credit Agreement and the Lenders signatory hereto
and the Administrative Agent have agreed to do so on the terms and subject to the conditions contained in this Amendment.

 

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

 

SECTION I AMENDMENT TO CREDIT AGREEMENT

 

Effective as of the Effective Date (as defined
below), and subject to the terms and conditions set forth below, the Credit Agreement is hereby amended as follows:

 

(a) Section 2.06(f)(i)(B) is hereby amended by deleting the
number “$300,000,000” therein and replacing it with the number “$400,000,000”.

 

(b) Section 9.02(c) is hereby amended by deleting the number
“$300,000,000” therein and replacing it with the number “$400,000,000”.

 

SECTION II MISCELLANEOUS

 

2.1.  Conditions to Effectiveness of Amendment. This
Amendment shall become effective as of the date (the “Effective Date”) on which the Borrower and each Subsidiary
Guarantor party hereto have satisfied each of the following conditions precedent (unless a condition shall have been waived in
accordance with Section 9.02 of the Credit Agreement):

 

    	 

    	 

    

 

(a) Documents. The Administrative Agent shall have received
each of the following documents, each of which shall be reasonably satisfactory to the Administrative Agent (and to the extent
specified below to each Lender) in form and substance:

 

(1) Executed Counterparts. From each of the Required
Lenders, the Administrative Agent and the Obligors, either (1) a counterpart of this Amendment signed on behalf of such party or
(2) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission or electronic mail of a
signed signature page to this Amendment) that such party has signed a counterpart of this Amendment.

 

(b) Fees and Expenses. The Borrower shall have paid in
full to the Administrative Agent and the Lenders all fees and expenses related to this Amendment and the Credit Agreement owing
on Effective Date, including any up-front fee due to any Lender on the Effective Date.

 

(c) Other Documents. The Administrative Agent shall have
received such other documents, instruments, certificates, opinions and information as the Administrative Agent may reasonably request
in form and substance satisfactory to the Administrative Agent.

 

The contemporaneous exchange and
release of executed signature pages by each of the Persons contemplated to be a party hereto shall render this Amendment effective
and any such exchange and release of such executed signature pages by all such persons shall constitute satisfaction or waiver
(as applicable) of any condition precedent to such effectiveness set forth above.

 

2.2. Representations and Warranties. To induce
the other parties hereto to enter into this Amendment, the Borrower represents and warrants to the Administrative Agent and each
of the Lenders that, as of the Effective Date and after giving effect to this Amendment:

 

(a) This Amendment has been duly authorized, executed and delivered
by the Borrower and the Subsidiary Guarantor, and constitutes a legal, valid and binding obligation of the Borrower and the Subsidiary
Guarantor enforceable in accordance with its terms. The Credit Agreement, as amended by the Amendment, constitutes the legal, valid
and binding obligation of the Borrower enforceable in accordance with its respective terms.

 

(b) The representations and warranties set forth in Article
3 of the Credit Agreement as amended by this Amendment and the representations and warranties in each other Loan Document are true
and correct in all material respects (other than any representation or warranty already qualified by materiality or Material Adverse
Effect, which shall be true and correct is all respects) on and as of the Effective Date or as to any such representations and
warranties that refer to a specific date, as of such specific date, with the same effect as though made on and as of the Effective
Date.

 

(c) No Default or Event of Default has occurred or is continuing
under the Credit Agreement.

 

2.3. Counterparts. This Amendment may be executed
in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but
all of which when taken together shall constitute a single contract. This Amendment constitutes the entire contract between
and among the parties relating to the subject matter hereof and supersedes any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Delivery of an executed counterpart of this Amendment
by telecopy or electronic mail shall be effective as delivery of a manually executed counterpart of this Amendment.

 

    	2

    	 

    

 

2.4. Payment of Expenses. The Borrower agrees to pay
and reimburse the Administrative Agent for all of its reasonable and documented out-of-pocket costs and expenses incurred in connection
with this Amendment, including, without limitation, the reasonable fees, charges and disbursements of legal counsel to the Administrative
Agent, (but excluding, for the avoidance of doubt, the allocated costs of internal counsel).

 

2.5. GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

2.6. Incorporation of Certain Provisions. The provisions
of Sections 9.01, 9.07, 9.09, 9.10 and 9.12 of the Credit Agreement are hereby incorporated by reference with respect to Section
I.

 

2.7. Effect of Amendment. Except as expressly set forth
herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights
and remedies of the Lenders, the Administrative Agent, the Collateral Agent, the Borrower or the Subsidiary Guarantor under the
Credit Agreement or any other Loan Document, and, except as expressly set forth herein, shall not alter, modify, amend or in any
way affect any of the other terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other
Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. Nothing herein
shall be deemed to entitle any Person to a consent to, or a waiver, amendment, modification or other change of, any of the terms,
conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different
circumstances. This Amendment shall apply and be effective only with respect to the provisions amended herein of the Credit Agreement.
Upon the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement,” “hereunder,”
“hereof,” “herein” or words of similar import shall mean and be a reference to the Credit Agreement as
amended by this Amendment and each reference in any other Loan Document shall mean the Credit Agreement as amended hereby. This
Amendment shall constitute a Loan Document.

 

2.8. Consent and Affirmation. Without limiting
the generality of the foregoing, by its execution hereof, each of the Borrower and the Subsidiary Guarantor hereby to the extent
applicable as of the Effective Date (a) consents to this Amendment and the transactions contemplated hereby, (b) agrees that the
Amended and Restated Guarantee and Security Agreement and each of the other Security Documents is in full force and effect, (c)
confirms its guarantee (solely in the case of Subsidiary Guarantor) and affirms its obligations under the Amended and Restated
Guarantee and Security Agreement and confirms its grant of a security interest in its assets as Collateral for the Secured Obligations
(as defined in the Amended and Restated Guarantee and Security Agreement), and (d) acknowledges and affirms that such guarantee
and/or grant is in full force and effect in respect of, and to secure, the Secured Obligations (as defined in the Amended and Restated
Guarantee and Security Agreement).

 

    	3

    	 

    

 

[Signature pages follow]

 

 

    	4

    	 

    

 

IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed and delivered as of the day of year first above written.

 

	 	MEDLEY CAPITAL CORPORATION, as Borrower
	 	 
	 	By: 	 
	 	 	Name: Richard T. Allorto, Jr.
Title: Chief Financial
    Officer

 

[Signature Page
to Amendment No. 3]

    	 

    	 

    

 

	 	MOF I BDC LLC, as Subsidiary Guarantor
	 	 
	 	By: 	 
	 	 	Name: Richard T. Allorto, Jr.
Title: Chief Financial
    Officer

 

[Signature Page
to Amendment No. 3]

 

    	 

    	 

    

 

	 	ING CAPITAL LLC, as Administrative Agent and a Lender
	 	 
	 	By: 	 
	 	 	Name: Patrick Frisch, CFA
Title: Managing Director

 

[Signature Page
to Amendment No. 3]

 

    	 

    	 

    

 

 

	 	GOLDMAN SACHS BANK USA, as a Lender
	 	 
	 	By: 	 
	 	 	Name: Michelle Latzoni
Title: Authorized Signatory

 

[Signature Page
to Amendment No. 3]

 

    	 

    	 

    

 

 

	 	DORAL BANK, as a Lender
	 	 
	 	By: 	 
	 	 	Name: Mark Bernstein
Title: Manager Director

 

[Signature Page
to Amendment No. 3]

 

    	 

    	 

    

 

	 	EVERBANK COMMERCIAL FINANCE, as a Lender
	 	 
	 	By: 	 
	 	 	Name: S. Scott Gates
Title: Managing Director

 

[Signature Page
to Amendment No. 3]

 

    	 

    	 

    

 

	 	KEY EQUIPMENT FINANCE, INC., as a Lender
	 	 
	 	By: 	 
	 	 	Name: Richard Andersen
Title: VP

 

[Signature Page
to Amendment No. 3]

 

    	 

    	 

    

 

	 	SIGNATURE BANK, as a Lender
	 	 
	 	By: 	 
	 	 	Name: Maria Hegi
Title: SVP

 

[Signature Page
to Amendment No. 3]

 

    	 

    	 

    

 

	 	WESTERN ALLIANCE BANK, as a Lender
	 	 
	 	By: 	 
	 	 	Name: Jeremy Lindner
Title: SVP

 

[Signature Page
to Amendment No. 3]

    	 

    	 

    

 

	 	CITY NATIONAL BANK, as a Lender
	 	 
	 	By: 	 
	 	 	Name: Brandon L. Feitelson, C.F.A.
Title: Senior Vice
    President

 

[Signature Page
to Amendment No. 3]

 

    	 

    	 

    

 

	 	ONEWEST BANK, FSB, as a Lender
	 	 
	 	By: 	 
	 	 	Name: David G. Ligon
Title: Executive Vice President

 

[Signature Page
to Amendment No. 3]THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

hong
kong branch

(incorporated in taiwan with limited liability)

 

 

Private and Confidential

 

Our Reference: (6400101110092)

 

29th August 2012

 

Hong Kong Highpower Technology Company Limited

Unit 12, 15/F Technology Park,

18 On Lai Street

Shek Mun, Shatin,

N.T.

 

Dear Sirs,

 

		Re:	Banking Facility up to a limit of USD2,600,000

Borrower: Hong Kong Highpower Technology Company Limited

 

We are pleased to offer the banking/credit
facility(ies) as described in this letter (“Facility Letter”) to you subject to the provisions herein contained
this Facility Letter and in the Appendix (“Appendix”) hereof. Please note that the Appendix forms an integral
part of this Facility Letter, which is intended to set out all the terms and provisions of the said Facility.

 

		1.	Bank

 

The Shanghai Commercial &
Savings Bank, Ltd., Hong Kong Branch, whose registered office is situated at 10/F, Peninsula Office Tower, 18 Middle Road, Tsim
Sha Tsui, Kowloon, Hong Kong (including its successors and assigns) (the “Bank”).

 

		2.	Borrower

 

Hong Kong Highpower Techonolgy
Company Limited (Company No.: 851928) whose registered office is situated at Unit 12, 15/F Technology Park, 18 On Lai Street, Shek
Mun Street, Shek Mun, Statin, N.T. (the “Borrower”).

 

		3.	Facility Type and Amount

 

A Revolving Short-term Secured
Loan Facility

 

Limit: US Dollars Two Million
and Six Hundred Thousand (USD2,600,000)

 

Unless otherwise agreed by the
Bank, the Borrower shall ensure that the total outstanding amount of the Facility shall not exceed the Facility Limit.

 

The Facility Limit is subject
to our customary periodic review, normally on an annual basis. In any event, the Bank may at any time modify or reduce the Facility
Limit.

 

    	Page 1 of 10

    	 

    

 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

hong
kong branch

(incorporated in taiwan with limited liability)

  

		4.	Interest

 

Interest is to be charged at
1.1% p.a. above 1-Month LIBOR or at a rate not to be less than our cost of funds.

 

Interest is payable monthly commencing
one month after the drawdown date or at the due date, whichever is earlier.

 

The LIBOR is subject to change.
The interest rate of the Facility shall be changed automatically and immediately upon the change of the LIBOR without any notice
from the Bank to the Borrower.

 

		5.	Drawdown

 

The Borrower shall give notice
to the Bank no later than 2 business days before the day it requires drawdown. The notice of drawdown referred herein shall
be in such form and content to be determined by the Bank in its absolute discretion.

 

		6.	Repayment

 

Subject to the Bank’s overriding
right of withdrawal and forthwith repayment on demand, all the outstanding liabilities under the Facility shall be repaid by 29th
August 2013.

 

		7.	Conditions Precedent

 

The availability of the Facility
is subject to and conditional upon due and complete fulfillment of all of the following conditions :-

 

		(a)	delivery of certified true copies of the Certificate of Incorporation and Memorandum and Articles
of Association (or equivalent constitutional documents) of the Borrower(s);

 

		(b)	delivery of appropriate supporting board minutes and/or shareholders’ resolutions in a form
acceptable to the Bank;

 

		(c)	the Bank’s standard Deed of Charge on Account duly executed by the Chargor; and

 

		(d)	the Bank’s standard General Letter of Hypothecation duly executed by the Borrower(s); and

 

		(e)	such other documents, items or evidence (all in a form acceptable to the Bank) as the Bank may
require.

 

    	Page 2 of 10

    	 

    

 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

hong
kong branch

(incorporated in taiwan with limited liability)

 

		8.	Nature and Term of the Facility

 

Subject to the Bank’s overriding
right of withdrawal and forthwith repayment on demand, the term of the Facility shall be for a period up to 29th August 2013.

 

We must stress that notwithstanding
anything contained in this Facility Letter, the Bank shall be entitled at any time in its absolute discretion to cancel or withdraw
the Facility and/or to demand immediate repayment or payment (as the case may be) of all principal, interest, fees and other amounts
outstanding under this Facility Letter (the “Facility Liabilities”) (whereupon the Facility shall be so cancelled
or withdrawn and/or the Facility Liabilities shall be immediately so payable).

 

The Facility is also subject
to our customary periodic review, normally on an annual basis. In any event, the Bank may at any time cancel the outstanding commitment
in respect of any undrawn portion of the Facility.

 

It should be noted that approval
of advance to the Borrower under any of the Facility may in our sole and absolute discretion, be varied, withdrawn or suspended
at any time before any such advance is in fact made notwithstanding any purported acceptance by the Borrower hereunder or the signing/execution
of any Facility Letter and security documents by the Borrower in favour of us.

 

		9.	Security Documents

 

Charge on Account

 

A Deed of Charge on Account (the
“Charge on Account”) in respect of Fixed Deposit held with the Bank in our name for a total amount of not
less than USD2,600,000 (or 100% of the Facility Amount) is to be furnished by Hong Kong Highpower Technology Company Limited
(the “Chargor”) in favour of the Bank to secure all moneys due or owing by the Borrower to the Bank under this
Facility Letter. The Charge on Deposit shall be in such form and content to be determined by the Bank in its absolute discretion.

 

		Note:	If RMB Fixed Deposit is furnished to secure the Facility, the loan(s) can only be drawn up to
90% of the amount of the RMB Fixed Deposit(s). The Bank is to review the exchange rate of RMB/USD on a monthly basis. If the loan-to-value
ratio at any time exceeded 95%, the borrower is to furnish to the Bank additional Fixed Deposit or to partially repay the outstanding
liabilities so as to maintain the loan-to-value ratio at 90% or below within one week. Otherwise, the Bank is to exercise its right
to set-off the Fixed Deposit for repaying the outstanding liabilities due to the Bank.

 

The Charge on Account shall be
referred to herein below as the “Collateral”.

 

    	Page 3 of 10

    	 

    

 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

hong
kong branch

(incorporated in taiwan with limited liability)

 

Please indicate your acceptance of the
Facility by signing and returning the enclosed duplicate of this Facility Letter, which should be duly signed by you and the relevant
party(ies) (if any) within 30 days hereof to evidence your understanding, failing which the offer in this Facility Letter will
lapse (unless otherwise agreed by our Bank).

 

	 	Yours faithfully,
	 	For and on behalf of
	 	The Shanghai Commercial & Savings
	 	Bank, Ltd., Hong Kong Branch
	 	 
	 	/s/ [illegible signature]   /s/ [illegible signature]
	 	Authorized Signatures

 

We agree to accept the Facility and be
bound by all the terms and conditions as the Borrower.

 

	/s/ Dangyu Pan	 
	Borrower:  Hong Kong Highpower Technology Company Limited	 
	Date:	 

 

Note: The Borrower should note that the
Bank has during the credit approval process obtained and considered a credit report on the Borrower from the credit reference agency
– Dun & Bradstreet (HK) Limited. In this regard, the Borrower may wish to contact the credit reference agency (Tel No.
2516 1100) directly for enquiry. The Bank may in future access the Borrower’s data held with the credit reference agency
for the purpose of reviewing the facility and such reviews are common and in the normal course of events take place one or more
times each year.

 

    	Page 4 of 10

    	 

    

 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

hong
kong branch

(incorporated in taiwan with limited liability)

 

APPENDIX

 

Definitions and Interpretation

 

“HIBOR” means the annual
rate of interest applicable for each interest period in respect of an advance determined conclusively, in the absence of manifest
error, by the Bank to be the rate (rounded up, if necessary, to the nearest integral multiple 1/16 per cent.) at which Hong Kong
dollar deposits in amounts comparable to the amount of the advance are offered by the Bank for that interest period to prime banks
in the Hong Kong inter-bank market at or about 11:00 a.m. (Hong Kong time) on the first day of that interest period;

 

“Hong Kong” means the
Hong Kong Special Administrative Region of the People’s Republic of China;

 

“LIBOR” means the annual
rate of interest applicable for each interest period in respect of an advance determined conclusively, in the absence of manifest
error, by the Bank to be the rate (rounded up, if necessary, to the nearest integral multiple 1/16 per cent.) at which United States
dollar deposits in amounts comparable to the amount of the advance are offered by the Bank for that interest period to prime banks
in the London inter-bank market at or about 11:00 a.m. (London time) on the first day of that interest period;

 

“Prime Rate” means Hong
Kong dollar prime lending rate as announced, quoted or applied by the Bank from time to time and subject to fluctuation at its
discretion;

 

General Terms and Conditions

 

		1.	Interest Rate Calculation Basis

 

		1.1	Interest shall be computed on the basis of a 365 day year for Hong Kong dollar Facilities and 360
day year for Facilities in other currencies.

 

		2.	Overdue Interest

 

		2.1	4% per annum over the interest rate as set out in paragraph 4 of the Facility Letter subject to
change at our discretion.

 

		3.	Interest and Repayment on Overdraft facility (“O/D”)

 

		3.1	O/D is repayable on demand. Interest is to be accrued on a daily basis but payable monthly in arrears
to the debit of the Borrower’s Current Account on the 21st day (or the next business day if it is a holiday) of each and
every calendar month. Any O/D in excess of the agreed limit is subject to approval at our discretion. Interest on such excess amount
is to be charged at such rate as the Bank may from time to time determine on a daily basis which is currently at Prime Rate plus
10% per annum.

 

    	Page 5 of 10

    	 

    

 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

hong
kong branch

(incorporated in taiwan with limited liability)

 

		4.	Set-off

 

		4.1	In the event of default, the Bank have the right to set off any credit balance in other accounts
held by the Borrower solely or jointly with other person(s) against the actual or contingent liabilities due to the Bank whether
current or otherwise or subject to notice or not.

 

		5.	Expenses

 

		5.1	Whether or not the legal documentation for the Facilities is executed as contemplated, all expenses,
commissions, legal costs, fees, stamp duties, insurance premiums, property valuation fees, documentation costs, out-of-pocket expenses
and any other expenses reasonably incurred in connection with the Facilities including, without limitation, the preparation, execution
and/or enforcement of the relative security documents shall be for the Borrower’s account and borne by the Borrower and shall
be payable on demand.

 

		6.	Forced Liquidation

 

		6.1	If the total outstanding amount under the Facility shall exceed [80]% of the market value of the
Collateral, the Borrower shall, on demand by the Bank, make partial prepayment of the Facility in the sum equal to the amount of
the total outstanding amount under the Facility exceeding [80]% of the market value of the Collateral to the extent that the remaining
total outstanding amount under the Facility (after the aforesaid partial prepayment) shall not exceed [80]% of the market value
of the Collateral. The market value of the Collateral shall be determined by the Bank in its absolute discretion and the determination
of the Bank on the market value of the Property shall be final and conclusive and be binding on the Borrower.

 

		7.	Debt Collection Agencies

 

		7.1	When necessary and at the Bank’s discretion, debt collection agencies may be appointed to
recover any overdue amount due to the Bank by the Borrower. The Borrower are required to indemnify the Bank for the reasonable
costs and expenses incurred in the debt recovery process.

 

		8.	Availability Period of The Facility

 

		8.1	The Facility will be available for 3 months from the date of this Facility Letter unless further
extension is agreed by the Bank in writing. After the expiration of the said 3 months period, the Facility shall automatically
become lapsed and be terminated.

 

    	Page 6 of 10

    	 

    

 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

hong
kong branch

(incorporated in taiwan with limited liability)

 

		9.	Increased Costs

 

		9.1	If any change in, or in the interpretation of or compliance with, any law or regulation subjects
the Bank to tax in respect of sums payable by the Borrower hereunder (other than tax on the Bank’s overall net income), or
increases the Bank’s cost of making available or maintaining the Facility or reduces the amount of any payment receivable
by the Bank hereunder, then the Borrower will pay the Bank on demand all amounts needed to compensate the Bank therefor.

 

		10.	Representations and Warranties

 

		10.1	The Borrower represents and warrants to the Bank that:

 

		(a)	the Borrower has full capacity and legal right to enter into and engage in the transactions contemplated
by this Facility Letter and this Facility Letter constitutes legal, valid and binding obligations of the Borrower in accordance
with its terms;

 

		(b)	neither the borrowing of the Facility nor the performance by the Borrower of its obligations hereunder
will conflict with any obligation applicable to the Borrower or result in or oblige the Borrower to create any encumbrance on any
of its property; and

 

		(c)	there are no pending or, to the best of the knowledge and belief of the Borrower, threatened actions
or proceedings before any court, arbitrator, administrative tribunal or governmental authority which might materially and adversely
affect the business, assets or condition (financial or otherwise) or operations of the Borrower or its ability to perform its obligations
hereunder.

 

		11.	Events of Default

 

		11.1	The Bank may by written notice to the Borrower declare the amount of the Facility outstanding,
accrued interest thereon and all other sums payable hereunder to be, whereupon the same shall become, immediately due and payable
if any of the following events of default occurs :-

 

		(a)	the Borrower fails to pay any sum payable hereunder on the due date;

 

		(b)	the Borrower fails to perform any other of its obligations hereunder and, in respect only of a
failure which is in the Bank’s opinion capable of remedy, does not remedy such failure within seven (7) days after receipt
of written notice from the Bank requiring it to do so;

 

		(c)	any representation or warranty made by the Borrower in this Facility Letter is or proves to have
been untrue or inaccurate in any material respect;

 

		(d)	the Borrower (being individual) dies or commits an act of bankruptcy;

 

    	Page 7 of 10

    	 

    

 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

hong
kong branch

(incorporated in taiwan with limited liability)

 

		(e)	if any Shareholder (being a company) commits an act to go into voluntary liquidation or reconstruction
or amalgamation; and

 

		(f)	any situation occurs which in the opinion of the Bank may materially and adversely affect the ability
of the Borrower to perform its obligations under this Facility Letter.

 

		12.	Indemnity

 

		12.1	The Borrower shall indemnify the Bank against all losses, liabilities, damages and expenses which
the Bank may sustain or incur as a consequence of any event of default hereunder or any default by the Borrower in the performance
of its obligations hereunder. The Bank is entitled to employ, engage and appoint lawyers, debt collection agents or third party
service providers to demand, request, recover and collect any money from time to time outstanding from the Borrower to the Bank
under this Facility Letter and/or incurred consequence of any default by the Borrower in the performance of its obligations hereunder.
The Borrower hereby agrees to pay and indemnify the Bank on full indemnity basis all the costs, expenses, charges, fees, commissions
and service charges incurred by or charged against he Bank in relation to the employment, engagement and appointment of such lawyers,
debt collection agents or third party service providers. The Borrower’s attention is specifically drawn t the provisions
of this Clause which may involve the Borrower in incurring additional costs and expenses.

 

		13.	Payments

 

		13.1	The Borrower shall make all payments under this Facility Letter in immediately available funds
by [*] a.m. (Hong Kong time) on the due day by such method as the Bank and the Borrower may agree.

 

		14.	Assignment

 

		14.1	The Bank is entitled to assign or transfer all or any of its rights or transfer any of its obligations
hereunder without the consent of the Borrower. The Borrower shall not assign any of its rights or transfer any of its obligations
hereunder.

 

		15.	Notices

 

		15.1	Any notice or demand given or made in connection with this Facility Letter shall be sent to the
Bank or the Borrower, as the case may be, at its address given above or such other address as the relevant party may from time
to time notify to the other. Notices shall be in writing and made by letter, telex or facsimile.

 

    	Page 8 of 10

    	 

    

 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

hong
kong branch

(incorporated in taiwan with limited liability)

  

		16.	Policy on Personal Data

 

		16.1	The policies and practices of the Bank in relation to personal data and the Personal Data (Privacy)
Ordinance (Chapter 486, Laws of Hong Kong) are set out in the Circular to Customers and Other Individuals relating to the Personal
Data (Privacy) Ordinance attached to this Facility Letter. The said policies and practices form an integral part of this Facility
Letter and shall be deemed incorporated into this Facility Letter accordingly.

 

		17.	Miscellaneous Provisions

 

		17.1	Where there is any conflict between the provisions in this Facility Letter and the other terms
and conditions previously delivered to the Borrower by the Bank, the provisions herein shall prevail.

 

		17.2	Section 83 of the Banking Ordinance (Chapter 155, Laws of Hong Kong, the “Ordinance”)
has imposed on the Bank as a bank certain limitations on advances to persons or companies related to the Bank’s directors
or employees. In acknowledging this Facility Letter the Borrower should advise the Bank whether the Borrower is in any way related
to any of the Bank’s directors or employees within the meaning of the Ordinance and in the absence of such advice the Bank
will assume that the Borrower is not so related. The Borrower shall advise the Bank immediately in writing should it becomes so
related subsequent to acknowledging this Facility Letter.

 

		17.3	Upon signing the duplicate of this Facility Letter, the Borrower consents to the Bank on providing
to any guarantor or security provider in respect of any Facility or credit facilities extended to Borrower:

 

		(a)	a copy of this Facility Letter evidencing the obligations to be guaranteed or secured or a summary
thereof;

 

		(b)	a copy of any formal demand for overdue payment which is sent to the Borrower after it has failed
to settle an overdue amount following a customary reminder; and

 

from time to time on request
by the guarantor or security provider, a copy of the latest statement of account provided to the Borrower.

 

		17.4	If it becomes unlawful for the Bank to give effect to its obligations hereunder, it shall notify
the Borrower in writing and the Borrower shall, within such period as may be permitted by the relevant law, repay the principal
together with all interest accrued thereon to the date of repayment and other monies then payable hereunder.

 

		17.5	If any provision herein becomes illegal, invalid or unenforceable then the remaining provisions
of this Facility Letter shall not he affected or impaired thereby.

 

    	Page 9 of 10

    	 

    

 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

hong
kong branch

(incorporated in taiwan with limited liability)

 

		17.6	No failure or delay by the Bank in exercising any right, power or remedy hereunder shall operate
as a waiver thereof. Rights, powers and remedies available under this Facility Letter do not exclude those provided by law.

 

		18.	Language

 

		18.1	The Chinese version of the Facility Letter (including this Appendix) is for reference only and
if there is any conflict between the English and Chinese versions, the English version shall prevail.

 

		19.	Governing Law and Jurisdiction

 

		19.1	This Facility Letter and the Facility shall be governed by and construed in accordance with the
laws of Hong Kong.

 

		19.2	The parties hereto irrevocably submit to the non-exclusive jurisdiction of the courts of Hong Kong.

 

    	Page 10 of 10

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