Document:

Exhibit 10.17

 

Loan Agreement

 

This LOAN AGREEMENT (this “Agreement”), dated May 10, 2011, is made in Shenzhen by and among:

 

(1)           Zou Shenglong, a resident of the People’s Republic of China (the “PRC”) with ID No. #### (the “Borrower”); and

 

(2)           Giganology (Shenzhen) Ltd., a wholly foreign owned enterprise established under laws of the PRC, with registered address at 11th Floor, Shuguang Plaza, South District of High-tech Park, Nanshan District, Shenzhen, Guangdong, PRC. (the “Lender”)

 

(Each of the Borrower and the Lender, the “Party”; Collectively, the “Parties”.)

 

WHEREAS

 

(A)          Shenzhen Xunlei Networking Technologies Co., Ltd. (“Shenzhen Xunlei”), a limited liability company established under laws of the PRC, with registered address at 7th and 8th Floors, 11th Building, Shenzhen Software Park, Ke Ji Zhong Er Road, Nanshan District, Shenzhen, Guangdong, the PRC.  It has a registered capital of RMB 10 million. The borrower is a current registered shareholder of Shenzhen Xunlei and holds 28% equity interest in Shenzhen Xunlei.

 

(B)           Shenzhen Xunlei will increase its registered share capital by RMB 20 million from RMB 10 million to RMB 30 million. The borrower will use the Loan (as defined hereinafter) under this Agreement to subscribe all the newly increased share capital of Shenzhen Xunlei.

 

(C)           For the purpose of defining the rights and obligations among the Parties, the Parties hereby agree as follows:

 

1.             DEFINITIONS

 

1.1           In this Agreement:

 

“Debt” means any amount outstanding under the Loan;

 

“Effective Date” means the date on which this Agreement is duly signed by the Parties;

 

“Loan” means the loan denominated in RMB extended to the Borrower from the Lender;

 

“PRC” means the People’s Republic of China, excluding Hong Kong, Macau Special Administrative Regions and Taiwan for purpose of this Agreement; and

 

“These Rights” have the meaning ascribed to it under Section 8.5.

 

1.2           In this Agreement, reference to:

 

“Section” means any section of this Agreement, unless otherwise required under its context;

 

“Taxes” include any taxes, charges, duties and similar levies (including without limitation any penalty or interest arising from failure to or delay in payment of such taxes); and

 

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Each of the Borrower and the Lender will include its permitted successors and assignees for its own benefits.

 

1.3           Unless otherwise provided, reference to this Agreement or any other agreement or document will its amendment, modification, replacement or supplement from time to time.

 

1.4           Headings are inserted for convenience only.

 

1.5           Unless otherwise required under the context, singular forms include plural forms, and vice versa.

 

2.             AMOUNT AND INTEREST RATE OF THE LOAN

 

2.1           It is confirmed that the Lender will provide to the Borrower the Loan in an aggregate amount of RMB 20 million.

 

2.2           The Loan will have an interest rate of zero, which means no interest is be accruable and payable upon the Loan.

 

3.             REPAYMENT

 

3.1           The Loan will have a term of two years commencing from the date of this Agreement.  It is agreed that, unless otherwise instructed by the Lender, the Loan is automatically extendable for one year upon each of its expiration until the Loan is repaid in its entirety by the Borrower under this Agreement. During the term of this Agreement or any of its extension, the Lender may at its absolute discretion require repayment of any part or all of the Debt from the Borrower at any time.

 

3.2           Unless otherwise agreed by the Parties, the Loan will not be deemed in full repayment by the Borrower until and unless the Borrower transfers all of its shares in Shenzhen Xunlei to the Lender or any third party nominated by the Lender at the request of the Lender.

 

3.3           Without prior written consent from the Lender, the Borrower shall not make early repayment of the Loan by cash or in any other non-equity form after it draws down any amount of the Loan.

 

3.4           Without written consent of the Lender, the Borrower shall transfer its shares in Shenzhen Xunlei to any third party or make any other disposal of such shares, including without limitation the creation of any pledge thereupon.

 

4.             TAXES

 

The Lender will pay any and all Taxes relating to the Loan.

 

5.             CONFIDENTIALITY

 

5.1           The Borrower is obliged to keep in confidence (i) the execution, performance and the provisions of this Agreement, and (ii) any business secrets, proprietary information and customer information in connection with the Lender (collectively, the “Confidential Information”) to its knowledge or it receives as a result of the execution and performance of this Agreement, either before or after the termination of this Agreement.  The Borrower may not use the Confidential Information for any purpose other than performing any of its obligations under this Agreement.  Without prior written consent of the Lender, the Borrower may not disclose any Confidential Information to any third party and, if it fails to do so, will

 

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be held liable for breach of this Section 5.1 as well as any loss incurred by the Lender arising from such breach.

 

5.2           Upon termination of this Agreement, the Borrower will return, destroy or otherwise dispose any and all documents, materials and software incorporating the Confidential Information at the request of the Lender.

 

5.3           Notwithstanding anything to the contrary under this Agreement, the provisions under this Section 5 will survive termination or expiration of this Agreement.

 

6.             NOTICES

 

6.1           Any notices, requests, demands and other communications required under or in connection with this Agreement will be made in writing.

 

6.2           Any of such notices or communications will be deemed given to the addressee, if by facsimile or telex, when it is sent; if by hand, upon its delivery; if by mail, five days after it is deposited with the mail service provider.

 

7.             BREACH LIABILITY

 

7.1           The Borrower warrants that it will indemnify and hold harmless the Lender against any actions, expenses, claims, costs, damages, demands, charges, liabilities, losses and proceedings arising from breach of any of obligations under this Agreement by the Borrower.

 

7.2           Notwithstanding anything to the contrary under this Agreement, the provisions under this Section 7 will survive termination or expiration of this Agreement.

 

8.             MISCELLANEOUS

 

8.1           This Agreement is made in Chinese in six original copies, with each Party holding one copy.

 

8.2           The execution, validity, performance, amendment, interpretation and termination of this Agreement will be govern by the PRC laws.

 

8.3           Any dispute arising from or in connection with this Agreement shall be resolved by the Parties through friendly negotiations and, if negations fail within 30 days upon occurrence of the dispute, shall be submitted to China International Trade and Economic Arbitration Commission South China Sub-commission for arbitration according to its then effective rules in Shenzhen. The arbitral award is final and binding upon the Parties.

 

8.4           Any rights, powers and remedies available to each of the Parties under any provision of this Agreement will not exclude any other rights, powers and remedies available to such Party under laws or any other provisions of this Agreement, and the exercise of any of its rights, powers and remedies by any Party will not prevent its exercise of any other rights, powers and remedies.

 

8.5           Failure or delay to exercise any of its rights, powers or remedies under this Agreement (“These  Rights”) by either Party will not operate as its waiver of These Rights. Single or partial exercise of These Rights by any Party shall not prevent its exercise of These Rights by any other means or its exercise of any These Rights.

 

8.6           Headings in this Agreement are inserted for convenience only and will not operate as or affect interpretation of this Agreement.

 

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8.7           Each provision under this Agreement is severable and independent from any other provisions hereunder.  If any one or more provisions under this Agreement is held invalid, illegal or unenforceable, it will not affect the validity, legality and enforceability of the remainder of this Agreement.

 

8.8           Any amendment or supplement to this Agreement will be null and void unless it is in written agreement duly signed by the Parties.

 

8.9           Without prior written consent from the Lender, the Borrower may not transfer any of its rights and obligations under this Agreement to any third party.  The Lender may transfer any of its rights and obligations under this Agreement to any third party nominated by it with a notice to the other Parties.

 

8.10         This Agreement will bind upon any permitted successor of any Party.

 

[Remainder left Blank]

 

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(Signature page)

 

 

	
By:
    	
/s/ Zou Shenglong
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Giganology (Shenzhen) Ltd.
    	
 
    
	
 
    	
 
    
	
(Affixed with common   seal of the company)
    	
 
    

 

5Exhibit 10(m)(m)(m)

 

 

September 29, 2010

 

Michael J. Holston, Esq.

Executive Vice President and General Counsel 

Hewlett-Packard Company

 

Dear Mike:

 

Over the last several months, you have provided extremely valuable support to both HP and the HP Board of Directors, and we would like to ensure your continued contribution to, and support of, HP and its new Chief Executive Officer in the future. As a result, we are pleased to enter into this Agreement with you:

 

Agreement Term:

 

The term of this Agreement shall be three years after which it may be renewed by written agreement of the parties.

 

Compensation:

 

No immediate adjustments will be made to your base pay, annual incentive opportunity or long-term incentive target award, but each of these elements of your compensation will be reviewed by the HR & Compensation Committee (the “Committee”) during its review of all Section 16 officer compensation in the regular timeframe. The Board will consider and determine, within a reasonable period of time after the selection of the new CEO, a special cash bonus in respect of your service during this transition period.

 

Severance Benefits:

 

Severance benefits for Section 16 officers are determined under the HP Severance Plan for Executive Officers (“SPEO”). In your case, while this Agreement remains in effect, a 2.0 multiplier (instead of a 1.5 multiplier) shall apply to determine the amount of your cash severance benefit under the SPEO. The other terms of the SPEO will continue to apply with respect to a determination of whether you are entitled to these benefits, except that a “qualifying termination” shall also include your resignation following (a) the relocation of your principal place of business more than 50 miles from its current location, or (b) a material adverse change in your authority, duties or responsibilities, or a material reduction in your compensation, without your prior written consent, but only if you have provided HP with notice of the material change within 60 days after the date of such change, and HP has failed to cure the change within 30 days thereafter. A material adverse change in your authority, duties or responsibilities includes, without limitation, your ceasing to be General Counsel of, or no longer reporting directly to the chief executive officer of, the top-tier parent company of the controlled group of corporations of which HP is a part.

 

 

In addition to the cash severance benefit payable under the SPEO, you will receive a pro-rata bonus under the annual Pay-for-Results Plan (or any successor) with respect to the fiscal year in which your termination occurs, based on your actual period of service through your date of termination, and actual performance on applicable metrics, payable following the end of the fiscal year during which your termination occurs and no later than March 15th of the following calendar year. In addition, the following treatment will apply to your outstanding equity awards in the event of a termination of your employment entitling you to benefits under the SPEO, as modified by this Agreement (such treatment to apply at such time as the release you are required to sign under the SPEO becomes effective):

 

Stock Options: Vesting shall be fully accelerated on all of your unvested stock options, and you shall have one year from your termination date (or the original expiration date, if earlier) to exercise all HP options;

 

Restricted Stock, RSU and PRU Awards: All restrictions shall be released on all time-based stock or stock unit awards. With respect to any PRUs or other performance-based awards (collectively “PBRUs”), payout shall be determined as if you had remained actively employed during the entire performance period, and calculated using actual performance with respect to completed fiscal years, and maximum performance for all fiscal years not completed as of the date of your termination. For purposes of compliance with Section 409A of the Internal Revenue Code (the “Code”), such awards shall be payable to you in shares at the following times:

 

(a) For PBRUs granted before the date of this Agreement, following the close of the applicable performance period; and

 

(b) For PBRUs granted on or after the date of this Agreement, at the time that your cash severance benefit is paid.

 

Benefits Following a Change in Control of HP:

 

In the event of your termination within 12 months following a Change in Control of HP (as defined in the Amended and Restated HP 2004 Stock Incentive Plan) due to the same events that would qualify you for cash benefits under the SPEO, as modified by this Agreement (e.g., a material adverse change in your duties or compensation, without your prior written consent), you will be entitled to receive:

 

(a) a cash severance benefit as calculated under the SPEO, using the 2.0 multiplier;

 

(b) an annual  incentive award under the HP Pay-for-Results Plan (or any successor program) for the fiscal year in which your termination occurs based on your actual service through your date of termination, and assuming continued accruals with respect to such bonus at the rate in effect immediately prior to HP entering into an agreement that results in the Change in Control; and

 

(c) equity treatment as described above, except that all PBRUs shall be determined assuming maximum performance on all metrics and continuous service during the full performance period, and shall be settled in cash rather than shares at the times as specified above for a non-CIC qualifying termination.

 

If your receipt of the cash and other benefits payable under this paragraph (the “CIC Benefits”) would constitute an “excess parachute payment” for purposes of Section 280G of the Code, then either (i) the CIC Benefits shall be reduced by the minimum amount necessary to avoid any excise taxes under Code Section 4999 or (ii) you shall receive the full amount of the CIC Benefits without any reduction, whichever results in your receipt, on an after-tax basis (including after the imposition of any excise

 

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taxes under Code Section 4999), of the greatest amount of the CIC Benefits. If the CIC Benefits are so reduced, such reductions shall first apply to cash payments, with the last payment reduced first; next, to any equity or equity derivatives that are included under Code Section 280G at full value rather than accelerated value, with the highest value reduced first (applied first to performance-based awards and then to time-based awards); next to any non-cash, non-equity-based benefits, with the latest scheduled benefit reduced first; finally, to any equity or equity derivatives based on acceleration value, with the  highest value reduced first (applied first to performance-based awards and then to time-based awards) (with all equity and equity derivative values to be determined under Treasury Regulation Section 1.280G-1, Q&A 24)). If you receive the full amount of the CIC Benefits without any reduction and such amounts qualify as an “excess parachute payment,” you shall be liable for all taxes related to such payments.

 

Miscellaneous:

 

In the event of your termination for any reason, the usual executive officer indemnification provisions will continue to apply, to the full extent permitted under Delaware law. Your receipt of severance or Change in Control benefits will be subject to your execution of a standard release of claims within 45 days after your termination of employment and, unless a later date is specified above, all cash payments described herein will be made net of required withholdings within 10 days after expiration of that 45-day period. Notwithstanding the foregoing, in the event that any of the benefits described in this Agreement would be subject to tax under Code Section 409A if paid within six months after your termination of employment (as the result of your status as a “specified employee” within the meaning of Code Section 409A), such amount shall be withheld and paid to you on the first business day of the seventh month following your termination, or upon your death, if earlier. In addition, your equity-based awards will be structured in compliance with this Agreement and Code Section 409A. You will be reimbursed for attorneys’ fees you have incurred in connection with negotiation of this Agreement, as well as any such fees you reasonably incur for review of this Agreement in connection with a Change in Control. All disputes regarding this Agreement will be submitted to arbitration in accordance with standard AAA rules, and you will be reimbursed for any attorneys’ fees you incur to obtain payment under this Agreement. All reimbursements shall be made in accordance with Code Section 409A. For purposes of HP’s policy regarding severance agreements for senior executives, any benefits realized with respect to your equity-based awards in connection with a termination of employment shall be treated as “permitted benefits” (as defined in the resolutions adopting such policy, dated July 18, 2003).

 

Acceptance of Agreement:

 

We are extremely pleased to have confirmed the terms of your continued service to HP, and we look forward to your continued support to the Board and HP’s new CEO. To indicate your agreement to these terms please sign and return a copy of this letter to me. The date of your acceptance of this Agreement will be the initial effective date of this Agreement.

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
/s/ Lawrence T. Babbio, Jr.
    	
 
    
	
Lawrence T. Babbio, Jr.
    	
 
    
	
Chair, HR & Compensation Committee
    	
 
    
	
HP Board of Directors
    	
 
    

 

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ACKNOWLEDGED AND AGREED:
    	
 
    
	
 
    	
 
    
	
/s/ Michael J. Holston
    	
 
    
	
Michael J. Holston
    	
 
    
	
 
    	
 
    
	
Date: September 30, 2010
    	
 
    

 

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