Document:

Exhibit

Exhibit 10.1

AMENDED AND RESTATED INTUITIVE SURGICAL, INC. 2010 INCENTIVE AWARD PLAN
(As Adopted by the Board of Directors on February 4, 2010)
(Amendment and Restatement Adopted by the Board of Directors on February 3, 2011)                                                  
(Approved by the Shareholders on April 21, 2011)
(Amendment and Restatement Adopted by the Board of Directors on February 2, 2012)                                                  
(Approved by the Shareholders on April 19, 2012)
(Amendment and Restatement Adopted by the Board of Directors on January 31, 2013)                                                  
(Approved by the Shareholders on April 25, 2013)
(Amendment and Restatement Adopted by the Board of Directors on January 28, 2015)
(Approved by the Shareholders on April 23, 2015)
(Amendment and Restatement Adopted by the Board of Directors on January 28, 2016)
(Approved by the Shareholders on April 21, 2016)
(Amendment and Restatement Adopted by the Board of Directors on February 2, 2017)
(Approved by the Shareholders on April 20, 2017)
(Amendment and Restatement Adopted by the Board of Directors on March 6, 2019)
(Approved by the Shareholders on April 25, 2019)

ARTICLE 1.
PURPOSE
The purpose of the Intuitive Surgical, Inc. 2010 Incentive Award Plan, as amended and restated (the “Plan”) is to promote the success and enhance the value of Intuitive Surgical, Inc. (the “Company”) by linking the individual interests of the members of the Board, Employees, and Consultants to those of Company stockholders and by providing such individuals with an incentive for outstanding performance to generate superior returns to Company stockholders. The Plan is further intended to provide an ability to motivate, attract and retain the services of members of the Board, Employees and Consultants upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely dependent.
ARTICLE 2.
DEFINITIONS AND CONSTRUCTION
Wherever the following terms are used in the Plan, they shall have the meanings specified below, unless the context clearly indicates otherwise. The singular pronoun shall include the plural where the context so indicates.
2.1 “Administrator” shall mean the entity that conducts the general administration of the Plan as provided in Article 12. With reference to the duties of the Committee under the Plan which have been delegated to one or more persons pursuant to Section 12.6, or as to which the Board has assumed, the term “Administrator” shall refer to such person(s) unless the Committee or the Board has revoked such delegation or the Board has terminated the assumption of such duties.
2.2 “Affiliate” shall mean (a) Subsidiary; and (b) any domestic eligible entity that is disregarded, under Treasury Regulation Section 301.7701-3, as an entity separate from either (i) the Company or (ii) any Subsidiary.

2.3 “Applicable Accounting Standards” shall mean Generally Accepted Accounting Principles in the United States, International Financial Reporting Standards or such other accounting principles or standards as may apply to the Company’s financial statements under United States federal securities laws from time to time.
2.4 “Award” shall mean an Option, a Restricted Stock award, a Restricted Stock Unit award, a Performance Award, a Dividend Equivalent award or a Stock Appreciation Right, which may be awarded or granted under the Plan (collectively, “Awards”).
2.5 “Award Agreement” shall mean any written notice, agreement, terms and conditions, contract or other instrument or document evidencing an Award, including through electronic medium, which shall contain such terms and conditions with respect to an Award as the Administrator shall determine consistent with the Plan.
2.6 “Award Limit” shall mean with respect to Awards that shall be payable in Shares or in cash, as the case may be, the respective limit set forth in Section 3.3.
2.7 “Board” shall mean the Board of Directors of the Company.
2.8 “Change in Control” shall mean and includes each of the following:
(a) Any “person” (as such term is used in Section 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; or
(b) A change in the composition of the Board occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of the date hereof, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company); or
(c) There is consummated a merger or consolidation of the Company with or into any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation or the parent of the entity which survives such merger or consolidation; or
(d) The stockholders of the Company approve a plan of complete liquidation of the Company or there is consummated the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least eighty percent (80%) of the combined voting power of the voting securities of which are owned by persons in substantially the same proportions as their ownership of the Company immediately prior to such sale.
In addition, if a Change in Control constitutes a payment event with respect to any Award which provides for the deferral of compensation and is subject to Section 409A of the Code, the transaction or event described in subsection (a), (b), (c) or (d) with respect to such Award must also constitute a “change in control event,” as defined in Treasury Regulation §1.409A-3(i)(5) to the extent required by Section 409A.

The Committee shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change in Control of the Company has occurred pursuant to the above definition, and the date of the occurrence of such Change in Control and any incidental matters relating thereto.
2.9 “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, together with the regulations and official guidance promulgated thereunder.
2.10 “Committee” shall mean the Compensation Committee of the Board, or another committee or subcommittee of the Board, appointed as provided in Section 12.1.
2.11 “Common Stock” shall mean the common stock of the Company, par value $0.001 per share.
2.12 “Company” shall mean Intuitive Surgical, Inc., a Delaware corporation.
2.13 “Consultant” shall mean any consultant or adviser engaged to provide services to the Company or any Affiliate that qualifies as a consultant under the applicable rules of the Securities and Exchange Commission for registration of shares on a Form S-8 Registration Statement.
2.14 “Covered Employee” shall mean any Employee who is, or could be, a “covered employee” within the meaning of Section 162(m) of the Code.
2.15 “Director” shall mean a member of the Board, as constituted from time to time.
2.16 “Dividend Equivalent” shall mean a right to receive the equivalent value (in cash or Shares) of dividends paid on Shares, awarded under Section 9.2.
2.17 “DRO” shall mean a domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended from time to time, or the rules thereunder.
2.18 “Effective Date” shall mean the date the Plan is approved by the Board, subject to approval of the Plan by the Company’s stockholders.
2.19 “Eligible Individual” shall mean any person who is an Employee, a Consultant or a Non-Employee Director, as determined by the Committee.
2.20 “Employee” shall mean any officer or other employee (as determined in accordance with Section 3401(c) of the Code and the Treasury Regulations thereunder) of the Company or of any Affiliate.
2.21 “Equity Restructuring” shall mean a nonreciprocal transaction between the Company and its stockholders, such as a stock dividend, stock split, spin-off, rights offering or recapitalization through a large, nonrecurring cash dividend, that affects the number or kind of shares of Common Stock (or other securities of the Company) or the share price of Common Stock (or other securities) and causes a change in the per share value of the Common Stock underlying outstanding Awards.
2.22 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.
2.23 “Fair Market Value” shall mean, as of any given date, the value of a Share determined as follows:
(a) If the Common Stock is listed on any (i) established securities exchange (such as the New York Stock Exchange, the NASDAQ Global Market and the NASDAQ Global Select Market), (ii) national market system or (iii) automated quotation system on which the Shares are listed, quoted or traded, its Fair Market Value shall be the closing sales price for a share of Common Stock as quoted on such exchange or system for such date or, if there is no closing sales price for a share of Common Stock on 

the date in question, the closing sales price for a share of Common Stock on the last preceding date for which such quotation exists, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;
(b) If the Common Stock is not listed on an established securities exchange, national market system or automated quotation system, but the Common Stock is regularly quoted by a recognized securities dealer, its Fair Market Value shall be the mean of the high bid and low asked prices for such date or, if there are no high bid and low asked prices for a share of Common Stock on such date, the high bid and low asked prices for a share of Common Stock on the last preceding date for which such information exists, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or
(c) If the Common Stock is neither listed on an established securities exchange, national market system or automated quotation system nor regularly quoted by a recognized securities dealer, its Fair Market Value shall be established by the Administrator in good faith.
2.24. “Full Value Award” shall mean any Award other than (i) an Option, (ii) a Stock Appreciation Right or (iii) any other Award for which the Holder pays the intrinsic value existing as of the date of grant (whether directly or by forgoing a right to receive a payment from the Company or any Affiliate).
2.25 “Greater Than 10% Stockholder” shall mean an individual then owning (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of stock of the Company or any Affiliate corporation (as defined in Section 424(f) of the Code) or parent corporation thereof (as defined in Section 424(e) of the Code).
2.26 “Holder” shall mean a person who has been granted an Award.
2.27 “Incentive Stock Option” shall mean an Option that is intended to qualify as an incentive stock option and conforms to the applicable provisions of Section 422 of the Code.
2.28 “Non-Employee Director” shall mean a Director of the Company who is not an Employee.
2.29 “Non-Qualified Stock Option” shall mean an Option that is not an Incentive Stock Option.
2.30 “Option” shall mean a right to purchase Shares at a specified exercise price, granted under Article 6. An Option shall be either a Non-Qualified Stock Option or an Incentive Stock Option; provided, however, that Options granted to Non-Employee Directors and Consultants shall only be Non-Qualified Stock Options.
2.31 “Parent” shall mean any entity (other than the Company), whether domestic or foreign, in an unbroken chain of entities ending with the Company if each of the entities other than the Company beneficially owns, at the time of the determination, securities or interests representing more than fifty percent (50%) of the total combined voting power of all classes of securities or interests in one of the other entities in such chain.
2.32 “Performance Award” shall mean a cash bonus award, stock bonus award, performance award or incentive award that is paid in cash, Shares or a combination of both, awarded under Section 9.1.
2.33 “Performance-Based Compensation” shall mean any compensation that is intended to qualify as “performance-based compensation” as described in Section 162(m)(4)(C) of the Code.
2.34 “Performance Criteria” shall mean the criteria (and adjustments) that the Committee selects for an Award for purposes of establishing the Performance Goal or Performance Goals for a Performance Period, determined as follows:
(a) The Performance Criteria that shall be used to establish Performance Goals are limited to the following:

(i) gross or net sales or revenue;
(ii) net earnings (either before or after one or more of the following: (A) interest, (B) taxes, (C) depreciation and (D) amortization);
(iii) operating earnings or profit;
(iv) gross or net profit or operating margin;
(v) cash flow (including, but not limited to, operating cash flow and free cash flow);
(vi) return on assets;
(vii) return on capital;
(viii) return on invested capital;
(ix) return on stockholders’ equity;
(x) return on sales;
(xi) earnings per share;
(xii) multiples of price per share to earnings per share (“P/E”);
(xiii) multiples of P/E to growth;
(xiv) price per share of Common Stock;
(xv) stock price appreciation;
(xvi) total stockholder return;
(xvii) economic value added (EVA = net operating profit after taxes-a capital charge);
(xviii) achievement of objectively determinable strategic initiatives;
(xix) number of procedures and
(xx) employee productivity,
any of which may be measured either in absolute terms or as compared to any incremental increase or decrease or as compared to results of a peer group or to market performance indicators or indices.
(b) The Administrator may, in its sole discretion, provide that one or more objectively determinable adjustments shall be made to one or more of the Performance Goals. Such adjustments may include one or more of the following: (i) items related to a change in accounting principle; (ii) items relating to financing activities; (iii) expenses for restructuring or productivity initiatives; (iv) other non-operating items; (v) items related to acquisitions; (vi) items attributable to the business operations of any entity acquired by the Company during the Performance Period; (vii) items related to the disposal of a business or segment of a business; (viii) items related to discontinued operations that do not qualify as a segment of a business under Applicable Accounting Standards; (ix) items attributable to any stock dividend, stock split, combination or exchange of stock occurring during the Performance Period; (x) any other items of significant income or expense which are determined to be appropriate adjustments; (xi) items relating to unusual or extraordinary corporate transactions, events or developments, (xii) items related to amortization of acquired intangible assets; (xiii) items that are outside the scope of the Company’s core, on-going business activities; (xiv) items 

related to acquired in-process research and development; (xv) items relating to changes in tax laws; (xvi) items relating to major licensing or partnership arrangements; (xvii) items relating to asset impairment charges; (xviii) items relating to gains or losses for litigation, arbitration and contractual settlements; (xix) items relating to any other unusual or nonrecurring events or changes in applicable laws, accounting principles or business conditions; or (xx) non-cash items. For all Awards intended to qualify as Performance-Based Compensation, such determinations shall be made within the time prescribed by, and otherwise in compliance with, Section 162(m) of the Code.
2.35 “Performance Goals” shall mean, for a Performance Period, one or more goals established in writing by the Administrator for the Performance Period based upon one or more Performance Criteria. Depending on the Performance Criteria used to establish such Performance Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of a Subsidiary, division, business unit, or an individual.
2.36 “Performance Period” shall mean one or more periods of time, which may be of varying and overlapping durations, as the Administrator may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Holder’s right to, and the payment of, a Performance Award.
2.37 “Permitted Transferee” shall mean, with respect to a Holder, any “family member” of the Holder, as defined under the instructions to use of the Form S-8 Registration Statement under the Securities Act, after taking into account any state, federal, local or foreign tax and securities laws applicable to transferable Awards.
2.38 “Plan” shall mean this Intuitive Surgical, Inc. 2010 Incentive Award Plan, as amended or restated from time to time.
2.39 “Program” shall mean any program adopted by the Administrator pursuant to the Plan containing the terms and conditions intended to govern a specified type of Award granted under the Plan and pursuant to which such type of Award may be granted under the Plan.
2.40 “Restricted Stock” shall mean Common Stock awarded under Article 8 that is subject to certain restrictions and may be subject to risk of forfeiture or repurchase.
2.41 “Restricted Stock Units” shall mean the right to receive Shares awarded under Section 9.3.
2.42 “Securities Act” shall mean the Securities Act of 1933, as amended.
2.43 “Shares” shall mean shares of Common Stock.
2.44 “Stock Appreciation Right” shall mean a stock appreciation right granted under Article 10.
2.45 “Subsidiary” shall mean any entity (other than the Company), whether domestic or foreign, in an unbroken chain of entities beginning with the Company if each of the entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination, securities or interests representing more than fifty percent (50%) of the total combined voting power of all classes of securities or interests in one of the other entities in such chain.
2.46 “Substitute Award” shall mean an Award granted under the Plan upon the assumption of, or in substitution for, outstanding equity awards previously granted by a company or other entity in connection with a corporate transaction, such as a merger, combination, consolidation or acquisition of property or stock; provided, however, that in no event shall the term “Substitute Award” be construed to refer to an award made in connection with the cancellation and repricing of an Option or Stock Appreciation Right.

2.47 “Termination of Service” shall mean,
(a) As to a Consultant, the time when the engagement of a Holder as a Consultant to the Company or an Affiliate is terminated for any reason, with or without cause, including, without limitation, by resignation, discharge, death or retirement, but excluding terminations where the Consultant simultaneously commences or remains in employment or service with the Company or any Affiliate.
(b) As to a Non-Employee Director, the time when a Holder who is a Non-Employee Director ceases to be a Director for any reason, including, without limitation, a termination by resignation, failure to be elected, death or retirement, but excluding terminations where the Holder simultaneously commences or remains in employment or service with the Company or any Affiliate.
(c) As to an Employee, the time when the employee-employer relationship between a Holder and the Company or any Affiliate is terminated for any reason, including, without limitation, a termination by resignation, discharge, death, disability or retirement; but excluding terminations where the Holder simultaneously commences or remains in employment or service with the Company or any Affiliate.
The Administrator, in its sole discretion, shall determine the effect of all matters and questions relating to Terminations of Service, including, without limitation, the question of whether a Termination of Service resulted from a discharge for cause and all questions of whether particular leaves of absence constitute a Termination of Service; provided, however, that, with respect to Incentive Stock Options, unless the Administrator otherwise provides in the terms of the Program, the Award Agreement or otherwise, a leave of absence, change in status from an employee to an independent contractor or other change in the employee-employer relationship shall constitute a Termination of Service only if, and to the extent that, such leave of absence, change in status or other change interrupts employment for the purposes of Section 422(a)(2) of the Code and the then applicable regulations and revenue rulings under said Section. For purposes of the Plan, a Holder’s employee-employer relationship or consultancy relations shall be deemed to be terminated in the event that the Affiliate employing or contracting with such Holder ceases to remain an Affiliate following any merger, sale of stock or other corporate transaction or event (including, without limitation, a spin-off).
ARTICLE 3.
SHARES SUBJECT TO THE PLAN
3.1 Number of Shares.
(a) Subject to Section 13.2 and Section 3.1(b), the aggregate number of Shares which may be issued or transferred pursuant to Awards under the Plan is 28,450,000; provided however, that any Shares that are subject to Awards of Options or Stock Appreciation Rights shall be counted against this limit as one (1) Share for every one (1) Share granted and any Shares that are subject to Full Value Awards shall be counted against this limit as 2.3 Shares for every one (1) Share granted.
(b) If any Shares subject to an Award are forfeited or expire or such Award is settled for cash (in whole or in part), the Shares subject to such Award shall, to the extent of such forfeiture, expiration or cash settlement, again be available for future grants of Awards under the Plan, provided, that for each Share subject to a Full Value Award that is so forfeited, expired or settled in cash, 2.3 Shares shall be again become available for future grants of Awards under the Plan. Notwithstanding anything to the contrary contained herein, the following Shares shall not be added to the Shares authorized for grant under Section 3.1(a) and will not be available for future grants of Awards: (i) Shares tendered by the Holder or withheld by the Company in payment of the exercise price of an Option or to satisfy any tax withholding obligation with respect to an Award; (ii) Shares subject to a Stock 

Appreciation Right that are not issued in connection with the stock settlement of the Stock Appreciation Right on exercise thereof; and (iii) Shares purchased on the open market with the cash proceeds from the exercise of Options. Any Shares repurchased by the Company under Section 8.4 at the same price paid by the Holder so that such shares are returned to the Company will again be available for Awards. The payment of Dividend Equivalents in cash in conjunction with any outstanding Awards shall not be counted against the shares available for issuance under the Plan. Notwithstanding the provisions of this Section 3.1(b), no Shares may again be optioned, granted or awarded if such action would cause an Incentive Stock Option to fail to qualify as an incentive stock option under Section 422 of the Code.
(c) Substitute Awards shall not reduce the Shares authorized for grant under the Plan. Additionally, in the event that a company acquired by the Company or any Affiliate or with which the Company or any Affiliate combines has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the Shares authorized for grant under the Plan; provided that Awards using such available shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not employed by or providing services to the Company or its Subsidiaries immediately prior to such acquisition or combination.
3.2 Stock Distributed. Any Shares distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Common Stock, treasury Common Stock or Common Stock purchased on the open market.
3.3 Limitation on Number of Shares Subject to Awards. Notwithstanding any provision in the Plan to the contrary, and subject to Section 13.2, the maximum aggregate amount of cash that may be paid with respect to one or more Awards payable in cash that may be granted to any one person during any calendar year shall be $2,000,000 and the maximum aggregate number of Shares with respect to one or more Awards that may be granted to any one person during any calendar year shall be 250,000. To the extent required by Section 162(m) of the Code, Shares subject to Awards which are canceled shall continue to be counted against the Award Limit. The aggregate grant date fair value (computed as of the applicable grant date) of Awards to any Non-employee Director in any calendar year in respect of such director’s service as a member of our Board of Directors or any Board committee during such year shall not exceed $750,000.
ARTICLE 4.
GRANTING OF AWARDS
4.1 Participation. The Administrator may, from time to time, select from among all Eligible Individuals, those to whom an Award shall be granted and shall determine the nature and amount of each Award, which shall not be inconsistent with the requirements of the Plan. No Eligible Individual shall have any right to be granted an Award pursuant to the Plan.
4.2 Award Agreement. Each Award shall be evidenced by an Award Agreement. Award Agreements evidencing Awards intended to qualify as Performance-Based Compensation shall contain such terms and conditions as may be necessary to meet the applicable provisions of Section 162(m) of the Code. Award Agreements evidencing Incentive Stock Options shall contain such terms and conditions as may be necessary to meet the applicable provisions of Section 422 of the Code.
4.3 Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan, the Plan, and any Award granted or awarded to any individual who is then subject to Section 16 of the Exchange Act, shall be subject to any additional 

limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including Rule 16b-3 of the Exchange Act and any amendments thereto) that are requirements for the application of such exemptive rule. To the extent permitted by applicable law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.
4.4 At-Will Employment. Nothing in the Plan or in any Program or Award Agreement hereunder shall confer upon any Holder any right to continue in the employ of, or as a Director or Consultant for, the Company or any Affiliate, or shall interfere with or restrict in any way the rights of the Company and any Affiliate, which rights are hereby expressly reserved, to discharge any Holder at any time for any reason whatsoever, with or without cause, and with or without notice, or to terminate or change all other terms and conditions of employment or engagement, except to the extent expressly provided otherwise in a written agreement between the Holder and the Company or any Affiliate.
4.5 Foreign Holders. Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws in other countries in which the Company and its Subsidiaries operate or have Employees, Non-Employee Directors or Consultants, or in order to comply with the requirements of any foreign securities exchange, the Administrator, in its sole discretion, shall have the power and authority to: (a) determine which Subsidiaries shall be covered by the Plan; (b) determine which Eligible Individuals outside the United States are eligible to participate in the Plan; (c) modify the terms and conditions of any Award granted to Eligible Individuals outside the United States to comply with applicable foreign laws or listing requirements of any such foreign securities exchange; (d) establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable (any such subplans and/or modifications shall be attached to the Plan as appendices); provided, however, that no such subplans and/or modifications shall increase the share limitations contained in Sections 3.1 and 3.3; and (e) take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local governmental regulatory exemptions or approvals or listing requirements of any such foreign securities exchange. Notwithstanding the foregoing, the Administrator may not take any actions hereunder, and no Awards shall be granted, that would violate the Code, the Exchange Act, the Securities Act, any other securities law or governing statute, the rules of the securities exchange or automated quotation system on which the Shares are listed, quoted or traded or any other applicable law.
 4.6 Stand-Alone and Tandem Awards. Awards granted pursuant to the Plan may, in the sole discretion of the Administrator, be granted either alone, in addition to, or in tandem with, any other Award granted pursuant to the Plan. Awards granted in addition to or in tandem with other Awards may be granted either at the same time as or at a different time from the grant of such other Awards.
ARTICLE 5
PROVISIONS APPLICABLE TO AWARDS INTENDED TO QUALIFY AS PERFORMANCE-BASED COMPENSATION
5.1 Purpose. The Committee, in its sole discretion, may determine at the time an Award is granted or at any time thereafter whether such Award is intended to qualify as Performance-Based Compensation. If the Committee, in its sole discretion, decides to grant such an Award to an Eligible Individual that is intended to qualify as Performance-Based Compensation, then the provisions of this Article 5 shall control over any contrary provision contained in the Plan. The Administrator may in its sole discretion grant Awards to other Eligible Individuals that are based on Performance Criteria or Performance Goals but that do not satisfy the requirements of this Article 5 and that are not intended to qualify as Performance-Based Compensation.

5.2 Applicability. The grant of an Award to an Eligible Individual for a particular Performance Period shall not require the grant of an Award to such Individual in any subsequent Performance Period and the grant of an Award to any one Eligible Individual shall not require the grant of an Award to any other Eligible Individual in such period or in any other period.
5.3 Types of Awards. Notwithstanding anything in the Plan to the contrary, the Committee may grant any Award to an Eligible Individual intended to qualify as Performance-Based Compensation, including, without limitation, Restricted Stock the restrictions with respect to which lapse upon the attainment of specified Performance Goals, and any Performance Awards described in Article 9 that vest or become exercisable or payable upon the attainment of one or more specified Performance Goals.
5.4 Procedures with Respect to Performance-Based Awards. To the extent necessary to comply with the requirements of Section 162(m)(4)(C) of the Code, with respect to any Award granted under Articles 8 or 9 to one or more Eligible Individuals and which is intended to qualify as Performance-Based Compensation, no later than 90 days following the commencement of any Performance Period or any designated fiscal period or period of service (or such earlier time as may be required under Section 162(m) of the Code), the Committee shall, in writing, (a) designate one or more Eligible Individuals, (b) select the Performance Criteria applicable to the Performance Period, (c) establish the Performance Goals, and amounts of such Awards, as applicable, which may be earned for such Performance Period based on the Performance Criteria, and (d) specify the relationship between Performance Criteria and the Performance Goals and the amounts of such Awards, as applicable, to be earned by each Covered Employee for such Performance Period. Following the completion of each Performance Period, the Committee shall certify in writing whether and the extent to which the applicable Performance Goals have been achieved for such Performance Period. In determining the amount earned under such Awards, the Committee shall have the right to reduce or eliminate (but not to increase) the amount payable at a given level of performance to take into account additional factors that the Committee may deem relevant, including the assessment of individual or corporate performance for the Performance Period.
5.5 Payment of Performance-Based Awards. Unless otherwise provided in the applicable Program or Award Agreement and only to the extent otherwise permitted by Section 162(m)(4)(C) of the Code, as to an Award that is intended to qualify as Performance-Based Compensation, the Holder must be employed by the Company or an Affiliate throughout the Performance Period. Unless otherwise provided in the applicable Performance Goals, Program or Award Agreement, a Holder shall be eligible to receive payment pursuant to such Awards for a Performance Period only if and to the extent the Performance Goals for such period are achieved.
5.6 Additional Limitations. Notwithstanding any other provision of the Plan and except as otherwise determined by the Administrator, any Award which is granted to an Eligible Individual and is intended to qualify as Performance-Based Compensation shall be subject to any additional limitations set forth in Section 162(m) of the Code or any regulations or rulings issued thereunder that are requirements for qualification as Performance-Based Compensation, and the Plan, the Program and the Award Agreement shall be deemed amended to the extent necessary to conform to such requirements.
ARTICLE 6.
GRANTING OF OPTIONS
6.1 Granting of Options to Eligible Individuals. The Administrator is authorized to grant Options to Eligible Individuals from time to time, in its sole discretion, on such terms and conditions as it may determine which shall not be inconsistent with the Plan.
6.2 Qualification of Incentive Stock Options. No Incentive Stock Option shall be granted to any person who is not an Employee of the Company or any Affiliate corporation of the Company (as defined in Section 424(f) of the Code). No person who 

qualifies as a Greater Than 10% Stockholder may be granted an Incentive Stock Option unless such Incentive Stock Option conforms to the applicable provisions of Section 422 of the Code. Any Incentive Stock Option granted under the Plan may be modified by the Administrator, with the consent of the Holder, to disqualify such Option from treatment as an “incentive stock option” under Section 422 of the Code. To the extent that the aggregate fair market value of stock with respect to which “incentive stock options” (within the meaning of Section 422 of the Code, but without regard to Section 422(d) of the Code) are exercisable for the first time by a Holder during any calendar year under the Plan, and all other plans of the Company and any Affiliate or parent corporation thereof (each as defined in Section 424(f) and (e) of the Code, respectively), exceeds $100,000, the Options shall be treated as Non-Qualified Stock Options to the extent required by Section 422 of the Code. The rule set forth in the preceding sentence shall be applied by taking Options and other “incentive stock options” into account in the order in which they were granted and the Fair Market Value of stock shall be determined as of the time the respective options were granted.
6.3 Option Exercise Price. The exercise price per Share subject to each Option shall be set by the Administrator, but shall not be less than 100% of the Fair Market Value of a Share on the date the Option is granted (or, as to Incentive Stock Options, on the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code). In addition, in the case of Incentive Stock Options granted to a Greater Than 10% Stockholder, such price shall not be less than 110% of the Fair Market Value of a Share on the date the Option is granted (or the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code).
6.4 Option Term. The term of each Option shall be set by the Administrator in its sole discretion; provided, however, that the term shall not be more than ten (10) years from the date the Option is granted, or five (5) years from the date an Incentive Stock Option is granted to a Greater Than 10% Stockholder. The Administrator shall determine the time period, including the time period following a Termination of Service, during which the Holder has the right to exercise the vested Options, which time period may not extend beyond the term of the Option term. Except as limited by the requirements of Section 409A or Section 422 of the Code and regulations and rulings thereunder, the Administrator may extend the term of any outstanding Option, and may extend the time period during which vested Options may be exercised, in connection with any Termination of Service of the Holder, and may amend any other term or condition of such Option relating to such a Termination of Service.
6.5 Option Vesting.
(a) The period during which the right to exercise, in whole or in part, an Option vests in the Holder shall be set by the Administrator and the Administrator may determine that an Option may not be exercised in whole or in part for a specified period after it is granted. Such vesting may be based on service with the Company or any Affiliate, any Performance Criteria, or any other criteria selected by the Administrator.
(b) No portion of an Option which is unexercisable at a Holder’s Termination of Service shall thereafter become exercisable, except as may be otherwise provided by the Administrator either in the Program, the Award Agreement or by action of the Administrator following the grant of the Option.
6.6 Substitute Awards. Notwithstanding the foregoing provisions of this Article 6 to the contrary, in the case of an Option that is a Substitute Award, the price per share of the shares subject to such Option may be less than the Fair Market Value per share on the date of grant, provided, that the excess of: (a) the aggregate Fair Market Value (as of the date such Substitute Award is granted) of the shares subject to the Substitute Award, over (b) the aggregate exercise price thereof does not exceed the excess of: (x) the aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award, such fair market value to be determined by the Administrator) of the shares of the predecessor entity that were subject to the grant assumed or substituted for by the Company, over (y) the aggregate exercise price of such shares.

6.7 Substitution of Stock Appreciation Rights. The Administrator may provide in the applicable Program or the Award Agreement evidencing the grant of an Option that the Administrator, in its sole discretion, shall have the right to substitute a Stock Appreciation Right for such Option at any time prior to or upon exercise of such Option; provided, that such Stock Appreciation Right shall be exercisable with respect to the same number of Shares for which such substituted Option would have been exercisable.
ARTICLE 7.
EXERCISE OF OPTIONS
7.1 Partial Exercise. An exercisable Option may be exercised in whole or in part. However, an Option shall not be exercisable with respect to fractional shares and the Administrator may require that, by the terms of the Option, a partial exercise must be with respect to a minimum number of shares.
7.2 Manner of Exercise. All or a portion of an exercisable Option shall be deemed exercised upon delivery of all of the following to the Secretary of the Company, or such other person or entity designated by the Administrator, or his, her or its office, as applicable:
(a) A written or electronic notice complying with the applicable rules established by the Administrator stating that the Option, or a portion thereof, is exercised. The notice shall be signed by the Holder or other person then entitled to exercise the Option or such portion of the Option;
(b) Such representations and documents as the Administrator, in its sole discretion, deems necessary or advisable to effect compliance with all applicable provisions of the Securities Act and any other federal, state or foreign securities laws or regulations, the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded or any other applicable law. The Administrator may, in its sole discretion, also take whatever additional actions it deems appropriate to effect such compliance including, without limitation, placing legends on share certificates and issuing stop-transfer notices to agents and registrars;
(c) In the event that the Option shall be exercised pursuant to Section 11.3 by any person or persons other than the Holder, appropriate proof of the right of such person or persons to exercise the Option, as determined in the sole discretion of the Administrator; and
(d) Full payment of the exercise price and applicable withholding taxes to the stock administrator of the Company for the shares with respect to which the Option, or portion thereof, is exercised, in a manner permitted by Section 11.1 and 11.2.
7.3 Notification Regarding Disposition. The Holder shall give the Company prompt written or electronic notice of any disposition of shares of Common Stock acquired by exercise of an Incentive Stock Option which occurs within (a) two years from the date of granting (including the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code) such Option to such Holder, or (b) one year after the transfer of such shares to such Holder.
ARTICLE 8.
AWARD OF RESTRICTED STOCK
8.1 Award of Restricted Stock.

(a) The Administrator is authorized to grant Restricted Stock to Eligible Individuals, and shall determine the terms and conditions, including the restrictions applicable to each award of Restricted Stock, which terms and conditions shall not be inconsistent with the Plan, and may impose such conditions on the issuance of such Restricted Stock as it deems appropriate.
(b) The Administrator shall establish the purchase price, if any, and form of payment for Restricted Stock; provided, however, that if a purchase price is charged, such purchase price shall be no less than the par value of the Shares to be purchased, unless otherwise permitted by applicable state law. In all cases, legal consideration shall be required for each issuance of Restricted Stock.
8.2 Rights as Stockholders. Subject to Section 8.4, upon issuance of Restricted Stock, the Holder shall have, unless otherwise provided by the Administrator, all the rights of a stockholder with respect to said shares, subject to the restrictions in the applicable Program or in each individual Award Agreement, including the right to receive all dividends and other distributions paid or made with respect to the shares; provided, however, that, in the sole discretion of the Administrator, any extraordinary distributions with respect to the Shares shall be subject to the restrictions set forth in Section 8.3. In addition, with respect to a share of Restricted Stock with performance-based vesting, dividends which are paid prior to vesting shall only be paid out to the Holder to the extent that the performance-based vesting conditions are subsequently satisfied and the share of Restricted Stock vests.
8.3 Restrictions. All shares of Restricted Stock (including any shares received by Holders thereof with respect to shares of Restricted Stock as a result of stock dividends, stock splits or any other form of recapitalization) shall, in the terms of the applicable Program or in each individual Award Agreement, be subject to such restrictions and vesting requirements as the Administrator shall provide. Such restrictions may include, without limitation, restrictions concerning voting rights and transferability and such restrictions may lapse separately or in combination at such times and pursuant to such circumstances or based on such criteria as selected by the Administrator, including, without limitation, criteria based on the Holder’s duration of employment, directorship or consultancy with the Company, the Performance Criteria, Company performance, individual performance or other criteria selected by the Administrator. Restricted Stock may not be sold or encumbered until all restrictions are terminated or expire.
8.4 Repurchase or Forfeiture of Restricted Stock. If no price was paid by the Holder for the Restricted Stock, upon a Termination of Service the Holder’s rights in unvested Restricted Stock then subject to restrictions shall lapse, and such Restricted Stock shall be surrendered to the Company and cancelled without consideration. If a price was paid by the Holder for the Restricted Stock, upon a Termination of Service the Company shall have the right to repurchase from the Holder the unvested Restricted Stock then subject to restrictions at a cash price per share equal to the price paid by the Holder for such Restricted Stock or such other amount as may be specified in the Program or the Award Agreement. The Administrator in its sole discretion may provide that in the event of certain events, including a Change in Control, the Holder’s death, retirement or disability or any other specified Termination of Service or any other event, the Holder’s rights in unvested Restricted Stock shall not lapse, such Restricted Stock shall vest and, if applicable, the Company shall not have a right of repurchase.
8.5 Certificates for Restricted Stock. Restricted Stock granted pursuant to the Plan may be evidenced in such manner as the Administrator shall determine. Certificates or book entries evidencing shares of Restricted Stock must include an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock, and the Company may, in its sole discretion, retain physical possession of any stock certificate until such time as all applicable restrictions lapse.
8.6 Section 83(b) Election. If a Holder makes an election under Section 83(b) of the Code to be taxed with respect to the Restricted Stock as of the date of transfer of the Restricted Stock rather than as of the date or dates upon which the Holder would otherwise be taxable under Section 83(a) of the Code, the Holder shall be required to deliver a copy of such election to the Company promptly after filing such election with the Internal Revenue Service.

ARTICLE 9.
AWARD OF PERFORMANCE AWARDS, DIVIDEND EQUIVALENTS, RESTRICTED STOCK UNITS
9.1 Performance Awards.
(a) The Administrator is authorized to grant Performance Awards to any Eligible Individual and to determine whether such Performance Awards shall be Performance-Based Compensation. The value of Performance Awards may be linked to any one or more of the Performance Criteria or other specific criteria determined by the Administrator, in each case on a specified date or dates or over any period or periods determined by the Administrator. Performance Awards may be paid in cash, Shares, or both, as determined by the Administrator.
(b) Without limiting Section 9.1(a), the Administrator may grant Performance Awards to any Eligible Individual in the form of a cash bonus payable upon the attainment of objective Performance Goals, or such other criteria, whether or not objective, which are established by the Administrator, in each case on a specified date or dates or over any period or periods determined by the Administrator. Any such bonuses paid to a Holder which are intended to be Performance-Based Compensation shall be based upon objectively determinable bonus formulas established in accordance with the provisions of Article 5.
9.2 Dividend Equivalents.
(a) Dividend Equivalents may be granted by the Administrator based on dividends declared on the Common Stock, to be credited as of dividend payment dates during the period between the date an Award is granted to a Holder and the date such Award vests, is exercised, is distributed or expires, as determined by the Administrator. Such Dividend Equivalents shall be converted to cash or additional shares of Common Stock by such formula and at such time and subject to such limitations as may be determined by the Administrator. In addition, Dividend Equivalents with respect an Award with performance-based vesting that are based on dividends paid prior to the vesting of such Award shall only be paid out to the Holder to the extent that the performance-based vesting conditions are subsequently satisfied and the Award vests.
(b) Notwithstanding the foregoing, no Dividend Equivalents shall be payable with respect to Options or Stock Appreciation Rights.
9.3 Restricted Stock Units. The Administrator is authorized to grant Restricted Stock Units to any Eligible Individual. The number and terms and conditions of Restricted Stock Units shall be determined by the Administrator. The Administrator shall specify the date or dates on which the Restricted Stock Units shall become fully vested and nonforfeitable, and may specify such conditions to vesting as it deems appropriate, including conditions based on one or more Performance Criteria or other specific criteria, including service to the Company or any Affiliate, in each case on a specified date or dates or over any period or periods, as determined by the Administrator. The Administrator shall specify, or permit the Holder to elect, the conditions and dates upon which the Shares underlying the Restricted Stock Units which shall be issued, which dates shall not be earlier than the date as of which the Restricted Stock Units vest and become nonforfeitable and which conditions and dates shall be subject to compliance with Section 409A of the Code. Restricted Stock Units may be paid in cash, Shares, or both, as determined by the Administrator. On the distribution dates, the Company shall issue to the Holder one unrestricted, fully transferable Share (or the Fair Market Value of one such Share in cash) for each vested and nonforfeitable Restricted Stock Unit.
9.4 Term. The term of a Performance Award, Dividend Equivalent award and/or Restricted Stock Unit award shall be set by the Administrator in its sole discretion.

9.5 Exercise or Purchase Price. The Administrator may establish the exercise or purchase price of a Performance Award or shares distributed pursuant to a Restricted Stock Unit award; provided, however, that value of the consideration shall not be less than the par value of a Share, unless otherwise permitted by applicable law.
9.6 Exercise upon Termination of Service. A Performance Award, Dividend Equivalent award, and/or Restricted Stock Unit award is exercisable or distributable only while the Holder is an Employee, Director or Consultant, as applicable. The Administrator, however, in its sole discretion may provide that the Performance Award, Dividend Equivalent award and/or Restricted Stock Unit award may be exercised or distributed subsequent to a Termination of Service in certain events, including a Change in Control, the Holder’s death, retirement or disability or any other specified Termination of Service.
ARTICLE 10.
AWARD OF STOCK APPRECIATION RIGHTS
10.1 Grant of Stock Appreciation Rights.
(a) The Administrator is authorized to grant Stock Appreciation Rights to Eligible Individuals from time to time, in its sole discretion, on such terms and conditions as it may determine consistent with the Plan.
(b) A Stock Appreciation Right shall entitle the Holder (or other person entitled to exercise the Stock Appreciation Right pursuant to the Plan) to exercise all or a specified portion of the Stock Appreciation Right (to the extent then exercisable pursuant to its terms) and to receive from the Company an amount determined by multiplying the difference obtained by subtracting the exercise price per share of the Stock Appreciation Right from the Fair Market Value on the date of exercise of the Stock Appreciation Right by the number of Shares with respect to which the Stock Appreciation Right shall have been exercised, subject to any limitations the Administrator may impose. Except as described in (c) below, the exercise price per Share subject to each Stock Appreciation Right shall be set by the Administrator, but shall not be less than 100% of the Fair Market Value on the date the Stock Appreciation Right is granted.
(c) Notwithstanding the foregoing provisions of Section 10.1(b) to the contrary, in the case of an Stock Appreciation Right that is a Substitute Award, the price per share of the shares subject to such Stock Appreciation Right may be less than 100% of the Fair Market Value per share on the date of grant; provided, that the excess of: (a) the aggregate Fair Market Value (as of the date such Substitute Award is granted) of the shares subject to the Substitute Award, over (b) the aggregate exercise price thereof does not exceed the excess of: (x) the aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award, such fair market value to be determined by the Administrator) of the shares of the predecessor entity that were subject to the grant assumed or substituted for by the Company, over (y) the aggregate exercise price of such shares.
10.2 Stock Appreciation Right Vesting.
(a) The period during which the right to exercise, in whole or in part, a Stock Appreciation Right vests in the Holder shall be set by the Administrator and the Administrator may determine that a Stock Appreciation Right may not be exercised in whole or in part for a specified period after it is granted. Such vesting may be based on service with the Company or any Affiliate, or any other criteria selected by the Administrator.

(b) No portion of a Stock Appreciation Right which is unexercisable at Termination of Service shall thereafter become exercisable, except as may be otherwise provided by the Administrator either in the applicable Program or Award Agreement or by action of the Administrator following the grant of the Stock Appreciation Right.
10.3 Manner of Exercise. All or a portion of an exercisable Stock Appreciation Right shall be deemed exercised upon delivery of all of the following to the stock administrator of the Company, or such other person or entity designated by the Administrator, or his, her or its office, as applicable:
(a) A written or electronic notice complying with the applicable rules established by the Administrator stating that the Stock Appreciation Right, or a portion thereof, is exercised. The notice shall be signed by the Holder or other person then entitled to exercise the Stock Appreciation Right or such portion of the Stock Appreciation Right;
(b) Such representations and documents as the Administrator, in its sole discretion, deems necessary or advisable to effect compliance with all applicable provisions of the Securities Act and any other federal, state or foreign securities laws or regulations. The Administrator may, in its sole discretion, also take whatever additional actions it deems appropriate to effect such compliance; and
(c) In the event that the Stock Appreciation Right shall be exercised pursuant to this Section 10.3 by any person or persons other than the Holder, appropriate proof of the right of such person or persons to exercise the Stock Appreciation Right.
10.4 Stock Appreciation Right Term. The term of each Stock Appreciation Right shall be set by the Administrator in its sole discretion; provided, however, that the term shall not be more than ten (10) years from the date the Stock Appreciation Right is granted. The Administrator shall determine the time period, including the time period following a Termination of Service, during which the Holder has the right to exercise the vested Stock Appreciation Rights, which time period may not extend beyond the expiration date of the Stock Appreciation Right term. Except as limited by the requirements of Section 409A of the Code and regulations and rulings thereunder, the Administrator may extend the term of any outstanding Stock Appreciation Right, and may extend the time period during which vested Stock Appreciation Rights may be exercised, in connection with any Termination of Service of the Holder, and may amend any other term or condition of such Stock Appreciation Right relating to such a Termination of Service.
10.5 Payment. Payment of the amounts payable with respect to Stock Appreciation Rights pursuant to this Article 10 shall be in cash or check or other form of legal consideration acceptable to the Administrator, as determined by the Administrator.
ARTICLE 11.
ADDITIONAL TERMS OF AWARDS
11.1 Payment. The Administrator shall determine the methods by which payments by any Holder with respect to any Awards granted under the Plan shall be made, including, without limitation: (a) cash or check, (b) Shares (including, in the case of payment of the exercise price of an Award, Shares issuable pursuant to the exercise of the Award) or Shares held for such period of time as may be required by the Administrator in order to avoid adverse accounting consequences, in each case, having a Fair Market Value on the date of delivery equal to the aggregate payments required, (c) delivery of a written or electronic notice that the Holder has placed a market sell order with a broker with respect to Shares then issuable upon exercise or vesting of an Award, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the aggregate payments required, provided, that payment of such proceeds is then made to the Company upon settlement of such sale, or (d) other form of legal consideration acceptable to the Administrator. The Administrator shall also determine the methods by which Shares 

shall be delivered or deemed to be delivered to Holders. Notwithstanding any other provision of the Plan to the contrary, no Holder who is a Director or an “executive officer” of the Company within the meaning of Section 13(k) of the Exchange Act shall be permitted to make payment with respect to any Awards granted under the Plan, or continue any extension of credit with respect to such payment with a loan from the Company or a loan arranged by the Company in violation of Section 13(k) of the Exchange Act.
11.2 Tax Withholding. The Company or any Affiliate shall have the authority and the right to deduct or withhold, or require a Holder to remit to the Company, an amount sufficient to satisfy federal, state, local and foreign taxes (including the Holder’s FICA or employment tax obligation) required by law to be withheld with respect to any taxable event concerning a Holder arising as a result of the Plan. The Administrator may in its sole discretion and in satisfaction of the foregoing requirement allow a Holder to elect to have the Company withhold Shares otherwise issuable under an Award (or allow the surrender of Shares). The number of Shares which may be so withheld or surrendered shall be limited to the number of shares which have a fair market value on the date of withholding or repurchase equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such supplemental taxable income. The Administrator shall determine the fair market value of the Shares, consistent with applicable provisions of the Code, for tax withholding obligations due in connection with a broker-assisted cashless Option or Stock Appreciation Right exercise involving the sale of shares to pay the Option or Stock Appreciation Right exercise price or any tax withholding obligation.
11.3 Transferability of Awards.
(a) Except as otherwise provided in Section 11.3(b):
(i) No Award under the Plan may be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution or, subject to the consent of the Administrator, pursuant to a DRO, unless and until such Award has been exercised, or the shares underlying such Award have been issued, and all restrictions applicable to such shares have lapsed;
(ii) No Award or interest or right therein shall be liable for the debts, contracts or engagements of the Holder or his successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, hypothecation, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence; and
(iii) During the lifetime of the Holder, only the Holder may exercise an Award (or any portion thereof) granted to him under the Plan, unless it has been disposed of pursuant to a DRO; after the death of the Holder, any exercisable portion of an Award may, prior to the time when such portion becomes unexercisable under the Plan or the applicable Program or Award Agreement, be exercised by his personal representative or by any person empowered to do so under the deceased Holder’s will or under the then applicable laws of descent and distribution.
(b) Notwithstanding Section 11.3(a), the Administrator, in its sole discretion, may determine to permit a Holder to transfer an Award other than an Incentive Stock Option to any one or more Permitted Transferees, subject to the following terms and conditions: (i) an Award transferred to a Permitted Transferee shall not be assignable or transferable by the Permitted Transferee other than by will or the laws of descent and distribution; (ii) an Award transferred to a Permitted Transferee shall continue to be subject to all the terms and conditions of the Award as applicable to the original Holder (other than the ability to further transfer 

the Award); and (iii) the Holder and the Permitted Transferee shall execute any and all documents requested by the Administrator, including, without limitation documents to (A) confirm the status of the transferee as a Permitted Transferee, (B) satisfy any requirements for an exemption for the transfer under applicable federal, state and foreign securities laws and (C) evidence the transfer. In no event may an Award be transferable for consideration absent stockholder approval.
(c) Notwithstanding Section 11.3(a), a Holder may, in the manner determined by the Administrator, designate a beneficiary to exercise the rights of the Holder and to receive any distribution with respect to any Award upon the Holder’s death. A beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject to all terms and conditions of the Plan and any Program or Award Agreement applicable to the Holder, except to the extent the Plan, the Program and the Award Agreement otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Administrator. If the Holder is married and resides in a community property state, a designation of a person other than the Holder’s spouse as his or her beneficiary with respect to more than 50% of the Holder’s interest in the Award shall not be effective without the prior written or electronic consent of the Holder’s spouse. If no beneficiary has been designated or survives the Holder, payment shall be made to the person entitled thereto pursuant to the Holder’s will or the laws of descent and distribution. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Holder at any time provided the change or revocation is filed with the Administrator prior to the Holder’s death.
11.4 Conditions to Issuance of Shares.
(a) Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates or make any book entries evidencing Shares pursuant to the exercise of any Award, unless and until the Board or the Committee has determined, with advice of counsel, that the issuance of such shares is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the Shares are listed or traded, and the Shares are covered by an effective registration statement or applicable exemption from registration. In addition to the terms and conditions provided herein, the Board or the Committee may require that a Holder make such reasonable covenants, agreements and representations as the Board or the Committee, in its discretion, deems advisable in order to comply with any such laws, regulations or requirements.
(b) All Share certificates delivered pursuant to the Plan and all shares issued pursuant to book entry procedures are subject to any stop-transfer orders and other restrictions as the Administrator deems necessary or advisable to comply with federal, state, or foreign securities or other laws, rules and regulations and the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted, or traded. The Administrator may place legends on any Share certificate or book entry to reference restrictions applicable to the Shares.
(c) The Administrator shall have the right to require any Holder to comply with any timing or other restrictions with respect to the settlement, distribution or exercise of any Award, including a window-period limitation, as may be imposed in the sole discretion of the Administrator.
(d) No fractional Shares shall be issued and the Administrator shall determine, in its sole discretion, whether cash shall be given in lieu of fractional shares or whether such fractional shares shall be eliminated by rounding down.
(e) Notwithstanding any other provision of the Plan, unless otherwise determined by the Administrator or required by any applicable law, rule or regulation, the Company shall not deliver to any Holder certificates evidencing Shares issued in connection with any Award and instead such Shares shall be recorded in the books of the Company (or, as applicable, its transfer agent or stock plan administrator).

11.5 Forfeiture Provisions. Pursuant to its general authority to determine the terms and conditions applicable to Awards under the Plan, the Administrator shall have the right to provide, in the terms of Awards made under the Plan, or to require a Holder to agree by separate written or electronic instrument, that: (a)(i) any proceeds, gains or other economic benefit actually or constructively received by the Holder upon any receipt or exercise of the Award, or upon the receipt or resale of any Shares underlying the Award, must be paid to the Company, and (ii) the Award shall terminate and any unexercised portion of the Award (whether or not vested) shall be forfeited, if (b)(i) a Termination of Service occurs prior to a specified date, or within a specified time period following receipt or exercise of the Award, or (ii) the Holder at any time, or during a specified time period, engages in any activity in competition with the Company, or which is inimical, contrary or harmful to the interests of the Company, as further defined by the Administrator or (iii) the Holder incurs a Termination of Service for “cause” (as such term is defined in the sole discretion of the Administrator, or as set forth in a written agreement relating to such Award between the Company and the Holder).
11.6 Prohibition on Repricing. Subject to Section 13.2, the Administrator shall not, without the approval of the stockholders of the Company, (i) authorize the amendment of any outstanding Option or Stock Appreciation Right to reduce its price per share, or (ii) cancel any Option or Stock Appreciation Right in exchange for cash or another Award when the Option or Stock Appreciation Right price per share exceeds the Fair Market Value of the underlying Shares. Subject to Section 13.2, the Administrator shall have the authority, without the approval of the stockholders of the Company, to amend any outstanding award to increase the price per share or to cancel and replace an Award with the grant of an Award having a price per share that is greater than or equal to the price per share of the original Award.
ARTICLE 12.
ADMINISTRATION
12.1 Administrator. The Compensation Committee (or another committee or a subcommittee of the Board assuming the functions of the Committee under the Plan) shall administer the Plan (except as otherwise permitted herein) and, unless otherwise determined by the Board, shall consist solely of two or more Non-Employee Directors appointed by and holding office at the pleasure of the Board, each of whom is intended to qualify as both a “non-employee director” as defined by Rule 16b-3 of the Exchange Act or any successor rule, an “outside director” for purposes of Section 162(m) of the Code and an “independent director” under the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded; provided, that any action taken by the Committee shall be valid and effective, whether or not members of the Committee at the time of such action are later determined not to have satisfied the requirements for membership set forth in this Section 12.l or otherwise provided in any charter of the Committee. Except as may otherwise be provided in any charter of the Committee, appointment of Committee members shall be effective upon acceptance of appointment. Committee members may resign at any time by delivering written or electronic notice to the Board. Vacancies in the Committee may only be filled by the Board. Notwithstanding the foregoing, (a) the full Board, acting by a majority of its members in office, shall conduct the general administration of the Plan with respect to Awards granted to Non-Employee Directors and (b) the Board or Committee may delegate its authority hereunder to the extent permitted by Section 12.6.
12.2 Duties and Powers of Committee. It shall be the duty of the Committee to conduct the general administration of the Plan in accordance with its provisions. The Committee shall have the power to interpret the Plan, the Program and the Award Agreement, and to adopt such rules for the administration, interpretation and application of the Plan as are not inconsistent therewith, to interpret, amend or revoke any such rules and to amend any Program or Award Agreement provided that the rights or obligations of the Holder of the Award that is the subject of any such Program or Award Agreement are not affected adversely by such 

amendment, unless the consent of the Holder is obtained or such amendment is otherwise permitted under Section 13.10. Any such grant or award under the Plan need not be the same with respect to each Holder. Any such interpretations and rules with respect to Incentive Stock Options shall be consistent with the provisions of Section 422 of the Code. In its sole discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan except with respect to matters which under Rule 16b-3 under the Exchange Act or any successor rule, or Section 162(m) of the Code, or any regulations or rules issued thereunder, or the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded are required to be determined in the sole discretion of the Committee.
12.3 Action by the Committee. Unless otherwise established by the Board or in any charter of the Committee, a majority of the Committee shall constitute a quorum and the acts of a majority of the members present at any meeting at which a quorum is present, and acts approved in writing by all members of the Committee in lieu of a meeting, shall be deemed the acts of the Committee. Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member by any officer or other employee of the Company or any Affiliate, the Company’s independent certified public accountants, or any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan.
12.4 Authority of Administrator. Subject to any specific designation in the Plan, the Administrator has the exclusive power, authority and sole discretion to:
(a) Designate Eligible Individuals to receive Awards;
(b) Determine the type or types of Awards to be granted to each Eligible Individual;
(c) Determine the number of Awards to be granted and the number of Shares to which an Award will relate;
(d) Determine the terms and conditions of any Award granted pursuant to the Plan, including, but not limited to, the exercise price, grant price, or purchase price, any performance criteria, any restrictions or limitations on the Award, any schedule for vesting, lapse of forfeiture restrictions or restrictions on the exercisability of an Award, and accelerations or waivers thereof, and any provisions related to non-competition and recapture of gain on an Award, based in each case on such considerations as the Administrator in its sole discretion determines;
(e) Determine whether, to what extent, and pursuant to what circumstances an Award may be settled in, or the exercise price of an Award may be paid in cash, Shares, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered;
(f) Prescribe the form of each Award Agreement, which need not be identical for each Holder;
(g) Decide all other matters that must be determined in connection with an Award;
(h) Establish, adopt or revise any rules and regulations as it may deem necessary or advisable to administer the Plan;
(i) Interpret the terms of, and any matter arising pursuant to, the Plan, any Program or any Award Agreement; and
(j) Make all other decisions and determinations that may be required pursuant to the Plan or as the Administrator deems necessary or advisable to administer the Plan.
12.5 Decisions Binding. The Administrator’s interpretation of the Plan, any Awards granted pursuant to the Plan, any Program, any Award Agreement and all decisions and determinations by the Administrator with respect to the Plan are final, binding and conclusive on all parties.

12.6 Delegation of Authority. To the extent permitted by applicable law or the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded, the Board or Committee may from time to time delegate to a committee of one or more members of the Board or one or more officers of the Company the authority to grant or amend Awards or to take other administrative actions pursuant to Article 12; provided, however, that in no event shall an officer of the Company be delegated the authority to grant awards to, or amend awards held by, the following individuals: (a) individuals who are subject to Section 16 of the Exchange Act, (b) Covered Employees or (c) officers of the Company (or Directors) to whom authority to grant or amend Awards has been delegated hereunder; provided further, that any delegation of administrative authority shall only be permitted to the extent it is permissible under Section 162(m) of the Code and applicable securities laws or the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded. Any delegation hereunder shall be subject to the restrictions and limits that the Board or Committee specifies at the time of such delegation, and the Board may at any time rescind the authority so delegated or appoint a new delegate. At all times, the delegate appointed under this Section 12.6 shall serve in such capacity at the pleasure of the Board and the Committee.
ARTICLE 13.
MISCELLANEOUS PROVISIONS
13.1 Amendment, Suspension or Termination of the Plan. Except as otherwise provided in this Section 13.1, the Plan may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Board or the Committee. However, without approval of the Company’s stockholders given within twelve (12) months before or after the action by the Administrator, no action of the Administrator may, except as provided in Section 13.2, (i) increase the limits imposed in Section 3.1 on the maximum number of shares which may be issued under the Plan, or (ii) reduce the price per share of any outstanding Option or Stock Appreciation Right granted under the Plan, or (iii) cancel any Option or Stock Appreciation Right in exchange for cash or another Award when the Option or Stock Appreciation Right price per share exceeds the Fair Market Value of the underlying Shares. Except as provided in Section 13.10, no amendment, suspension or termination of the Plan shall, without the consent of the Holder, impair any rights or obligations under any Award theretofore granted or awarded, unless the Award itself otherwise expressly so provides. No Awards may be granted or awarded during any period of suspension or after termination of the Plan, and in no event may any Award be granted under the Plan after the tenth (10th) anniversary of the Effective Date.
13.2 Changes in Common Stock or Assets of the Company, Acquisition or Liquidation of the Company and Other Corporate Events.
(a) In the event of any stock dividend, stock split, combination or exchange of shares, merger, consolidation or other distribution (other than normal cash dividends) of Company assets to stockholders, Change in Control or any other change affecting the shares of the Company’s stock or the share price of the Company’s stock other than an Equity Restructuring, the Administrator shall make equitable adjustments, if any, to reflect such change with respect to (i) the aggregate number and kind of shares that may be issued under the Plan (including, but not limited to, adjustments of the limitations in Section 3.1 on the maximum number and kind of shares which may be issued under the Plan, adjustments of the Award Limit, and adjustments of the manner in which shares subject to Full Value Awards will be counted); (ii) the number and kind of shares of Common Stock (or other securities or property) subject to outstanding Awards; (iii) the terms and conditions of any outstanding Awards (including, without limitation, any applicable performance targets or criteria with respect thereto); and (iv) the grant or exercise price per share for any outstanding Awards under the Plan. Any adjustment affecting an Award intended as Performance Based Compensation shall be consistent with the requirements of Section 162(m) of the Code.

(b) In the event of any transaction or event described in Section 13.2(a) or any unusual or nonrecurring transactions or events affecting the Company, any Affiliate of the Company, or the financial statements of the Company or any Affiliate, or of changes in applicable laws, regulations or accounting principles, the Administrator, in its sole discretion, and on such terms and conditions as it deems appropriate, either by the terms of the Award or by action taken prior to the occurrence of such transaction or event and either automatically or upon the Holder’s request, is hereby authorized to take any one or more of the following actions whenever the Administrator determines that such action is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to any Award under the Plan, to facilitate such transactions or events or to give effect to such changes in laws, regulations or principles:
(i) To provide for either (A) termination of any such Award in exchange for an amount of cash, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Holder’s rights (and, for the avoidance of doubt, if as of the date of the occurrence of the transaction or event described in this Section 13.2 the Administrator determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Holder’s rights, then such Award may be terminated by the Company without payment) or (B) the replacement of such Award with other rights or property selected by the Administrator in its sole discretion having an aggregate value not exceeding the amount that could have been attained upon the exercise of such Award or realization of the Holder’s rights had such Award been currently exercisable or payable or fully vested;
(ii) To provide that such Award be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or shall be substituted for by similar options, rights or awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices;
(iii) To make adjustments in the number and type of shares of the Company’s stock (or other securities or property) subject to outstanding Awards, and in the number and kind of outstanding Restricted Stock and/or in the terms and conditions of (including the grant or exercise price), and the criteria included in, outstanding Awards and Awards which may be granted in the future;
(iv) To provide that such Award shall be exercisable or payable or fully vested with respect to all shares covered thereby, notwithstanding anything to the contrary in the Plan or the applicable Program or Award Agreement; and
(v) To provide that the Award cannot vest, be exercised or become payable after such event.
(c) In connection with the occurrence of any Equity Restructuring, and notwithstanding anything to the contrary in Sections 13.2(a) and 13.2(b):
(i) The number and type of securities subject to each outstanding Award and the exercise price or grant price thereof, if applicable, shall be equitably adjusted; and/or
(ii) The Administrator shall make such equitable adjustments, if any, as the Administrator in its discretion may deem appropriate to reflect such Equity Restructuring with respect to the aggregate number and kind of shares that may be issued under the Plan (including, but not limited to, adjustments of the limitations in Section 3.1 on the maximum number and kind of shares which may be issued under the Plan and adjustments of the Award Limit). The adjustments provided under this Section 10.2(c) shall be nondiscretionary and shall be final and binding on the affected Holder and the Company.

(d) Notwithstanding any other provision of the Plan, the Board, in its sole discretion, and on such terms and conditions as it deems appropriate, is authorized to adopt or put into place a change in control program to determine the vesting schedule, exercisability and other terms of outstanding Awards on or after a Change in Control.
(e) The Administrator may, in its sole discretion, include such further provisions and limitations in any Award, agreement or certificate, as it may deem equitable and in the best interests of the Company that are not inconsistent with the provisions of the Plan.
(f) With respect to Awards which are granted to Covered Employees and are intended to qualify as Performance-Based Compensation, no adjustment or action described in this Section 13.2 or in any other provision of the Plan shall be authorized to the extent that such adjustment or action would cause such Award to fail to so qualify as Performance-Based Compensation, unless the Administrator determines that the Award should not so qualify.
(g) No adjustment or action described in this Section 13.2 or in any other provision of the Plan shall be authorized to the extent that such adjustment or action would cause the Plan to violate Section 422(b)(1) of the Code. Furthermore, no such adjustment or action shall be authorized to the extent such adjustment or action would result in short-swing profits liability under Section 16 or violate the exemptive conditions of Rule 16b-3 unless the Administrator determines that the Award is not to comply with such exemptive conditions.
(h) The existence of the Plan, the Program, the Award Agreement and the Awards granted hereunder shall not affect or restrict in any way the right or power of the Company or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.
(i) No action shall be taken under this Section 13.2 which shall cause an Award to fail to comply with Section 409A of the Code or the Treasury Regulations thereunder, to the extent applicable to such Award.
(j) In the event of any pending stock dividend, stock split, combination or exchange of shares, merger, consolidation or other distribution (other than normal cash dividends) of Company assets to stockholders, Change in Control or any other change affecting the shares of Common Stock or the share price of the Common Stock including any Equity Restructuring, for reasons of administrative convenience, the Company in its sole discretion may refuse to permit the exercise of any Award during a period of thirty (30) days prior to the consummation of any such transaction.
13.3 Approval of Plan by Stockholders. The Plan will be submitted for the approval of the Company’s stockholders within twelve (12) months after the date of the Board’s initial adoption of the Plan. Awards may be granted or awarded prior to such stockholder approval, provided that such Awards shall not be exercisable, shall not vest and the restrictions thereon shall not lapse and no shares of Common Stock shall be issued pursuant thereto prior to the time when the Plan is approved by the stockholders, and provided further that if such approval has not been obtained at the end of said twelve (12) month period, all Awards previously granted or awarded under the Plan shall thereupon be canceled and become null and void.
13.4 No Stockholders Rights. Except as otherwise provided herein, a Holder shall have none of the rights of a stockholder with respect to shares of Common Stock covered by any Award until the Holder becomes the record owner of such shares of Common Stock.

13.5 Paperless Administration. In the event that the Company establishes, for itself or using the services of a third party, an automated system for the documentation, granting or exercise of Awards, such as a system using an internet website or interactive voice response, then the paperless documentation, granting or exercise of Awards by a Holder may be permitted through the use of such an automated system.
13.6 Effect of Plan upon Other Compensation Plans. The adoption of the Plan shall not affect any other compensation or incentive plans in effect for the Company or any Affiliate. Nothing in the Plan shall be construed to limit the right of the Company or any Affiliate: (a) to establish any other forms of incentives or compensation for Employees, Directors or Consultants of the Company or any Affiliate, or (b) to grant or assume options or other rights or awards otherwise than under the Plan in connection with any proper corporate purpose including without limitation, the grant or assumption of options in connection with the acquisition by purchase, lease, merger, consolidation or otherwise, of the business, stock or assets of any corporation, partnership, limited liability company, firm or association.
13.7 Compliance with Laws. The Plan, the granting and vesting of Awards under the Plan and the issuance and delivery of Shares and the payment of money under the Plan or under Awards granted or awarded hereunder are subject to compliance with all applicable federal, state, local and foreign laws, rules and regulations (including but not limited to state, federal and foreign securities law and margin requirements), the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded, and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith. Any securities delivered under the Plan shall be subject to such restrictions, and the person acquiring such securities shall, if requested by the Company, provide such assurances and representations to the Company as the Company may deem necessary or desirable to assure compliance with all applicable legal requirements. To the extent permitted by applicable law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.
13.8 Titles and Headings, References to Sections of the Code or Exchange Act. The titles and headings of the Sections in the Plan are for convenience of reference only and, in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. References to sections of the Code or the Exchange Act shall include any amendment or successor thereto.
13.9 Governing Law. The Plan and any agreements hereunder shall be administered, interpreted and enforced under the internal laws of the State of Delaware without regard to conflicts of laws thereof.
13.10 Section 409A. To the extent that the Administrator determines that any Award granted under the Plan is subject to Section 409A of the Code, the Program pursuant to which such Award is granted and the Award Agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A of the Code. To the extent applicable, the Plan, the Program and any Award Agreements shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event that following the Effective Date the Administrator determines that any Award may be subject to Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury guidance as may be issued after the Effective Date), the Administrator may adopt such amendments to the Plan and the applicable Program and Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Administrator determines are necessary or appropriate to (a) exempt the Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance and thereby avoid the application of any penalty taxes under such Section.

13.11 No Rights to Awards. No Eligible Individual or other person shall have any claim to be granted any Award pursuant to the Plan, and neither the Company nor the Administrator is obligated to treat Eligible Individuals, Holders or any other persons uniformly.
13.12 Unfunded Status of Awards. The Plan is intended to be an “unfunded” plan for incentive compensation. With respect to any payments not yet made to a Holder pursuant to an Award, nothing contained in the Plan or any Program or Award Agreement shall give the Holder any rights that are greater than those of a general creditor of the Company or any Affiliate.
13.13 Indemnification. To the extent allowable pursuant to applicable law, each member of the Committee or of the Board shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action or failure to act pursuant to the Plan and against and from any and all amounts paid by him or her in satisfaction of judgment in such action, suit, or proceeding against him or her; provided he or she gives the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled pursuant to the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.
13.14 Relationship to other Benefits. No payment pursuant to the Plan shall be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Affiliate except to the extent otherwise expressly provided in writing in such other plan or an agreement thereunder.
13.15 Expenses. The expenses of administering the Plan shall be borne by the Company and its Subsidiaries.Exhibit 4.56

 

Execution Version

 

 

US$500,000,000

Syndicated Facility Agreement

 

NetEase, Inc.

An exempted company with registration number 90896

 

and

 

The persons listed in Part I of Schedule 1

as MLABs

 

and

 

The persons listed in Part II of Schedule 1

as Original Lenders

 

and

 

Citicorp International Limited

as Agent

 

2018

 

 

CONTENTS

 

	
CLAUSE
    	
 
    	
 
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.
    	
 
    	
INTERPRETATION
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
1.1
    	
 
    	
Definitions
    	
 
    	
6
    
	
 
    	
 
    	
1.2
    	
 
    	
Construction
    	
 
    	
22
    
	
 
    	
 
    	
1.3
    	
 
    	
Currency symbols and definitions
    	
 
    	
24
    
	
 
    	
 
    	
1.4
    	
 
    	
Personal Liability
    	
 
    	
24
    
	
 
    	
 
    	
1.5
    	
 
    	
Third party rights
    	
 
    	
24
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
THE FACILITY
    	
 
    	
24
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.1
    	
 
    	
The Facility
    	
 
    	
24
    
	
 
    	
 
    	
2.2
    	
 
    	
Increase
    	
 
    	
24
    
	
 
    	
 
    	
2.3
    	
 
    	
Finance Parties’ rights and obligations
    	
 
    	
26
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
PURPOSE
    	
 
    	
26
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.1
    	
 
    	
Purpose
    	
 
    	
26
    
	
 
    	
 
    	
3.2
    	
 
    	
Monitoring
    	
 
    	
26
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
CONDITIONS OF UTILISATION
    	
 
    	
26
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.1
    	
 
    	
Initial conditions precedent
    	
 
    	
26
    
	
 
    	
 
    	
4.2
    	
 
    	
Further conditions precedent
    	
 
    	
27
    
	
 
    	
 
    	
4.3
    	
 
    	
Maximum number of Loans
    	
 
    	
27
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
UTILISATION
    	
 
    	
27
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.1
    	
 
    	
Delivery of a Utilisation Request
    	
 
    	
27
    
	
 
    	
 
    	
5.2
    	
 
    	
Completion of a Utilisation Request
    	
 
    	
27
    
	
 
    	
 
    	
5.3
    	
 
    	
Currency and amount
    	
 
    	
27
    
	
 
    	
 
    	
5.4
    	
 
    	
Lenders’ participation
    	
 
    	
27
    
	
 
    	
 
    	
5.5
    	
 
    	
Cancellation of Available Facility
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
REPAYMENT
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
6.1
    	
 
    	
Repayment of Loans
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.
    	
 
    	
PREPAYMENT AND CANCELLATION
    	
 
    	
29
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.1
    	
 
    	
Illegality
    	
 
    	
29
    
	
 
    	
 
    	
7.2
    	
 
    	
Change of Control
    	
 
    	
29
    
	
 
    	
 
    	
7.3
    	
 
    	
Voluntary cancellation
    	
 
    	
30
    
	
 
    	
 
    	
7.4
    	
 
    	
Voluntary prepayment of Loans
    	
 
    	
30
    
	
 
    	
 
    	
7.5
    	
 
    	
Right of prepayment and cancellation in relation to a single   Lender
    	
 
    	
31
    
	
 
    	
 
    	
7.6
    	
 
    	
Restrictions
    	
 
    	
32
    
	
 
    	
 
    	
7.7
    	
 
    	
Application of prepayments
    	
 
    	
33
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
8.
    	
 
    	
INTEREST
    	
 
    	
33
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
8.1
    	
 
    	
Calculation of interest
    	
 
    	
33
    
	
 
    	
 
    	
8.2
    	
 
    	
Payment of interest
    	
 
    	
33
    
	
 
    	
 
    	
8.3
    	
 
    	
Default interest
    	
 
    	
33
    
	
 
    	
 
    	
8.4
    	
 
    	
Notification of rates of interest
    	
 
    	
34
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
9.
    	
 
    	
INTEREST PERIODS
    	
 
    	
34
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
9.1
    	
 
    	
Selection of Interest Periods
    	
 
    	
34
    
	
 
    	
 
    	
9.2
    	
 
    	
Non-Business Days
    	
 
    	
34
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
10.
    	
 
    	
CHANGES TO THE CALCULATION OF INTEREST
    	
 
    	
34
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
10.1
    	
 
    	
Unavailability of Screen Rate
    	
 
    	
34
    
	
 
    	
 
    	
10.2
    	
 
    	
Calculation of Reference Bank Rate
    	
 
    	
35
    

 

1

 

	
 
    	
 
    	
10.3
    	
 
    	
Market disruption
    	
 
    	
35
    
	
 
    	
 
    	
10.4
    	
 
    	
Cost of funds
    	
 
    	
35
    
	
 
    	
 
    	
10.5
    	
 
    	
Break Costs
    	
 
    	
35
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
11.
    	
 
    	
FEES
    	
 
    	
35
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
11.1
    	
 
    	
Commitment fee
    	
 
    	
35
    
	
 
    	
 
    	
11.2
    	
 
    	
Upfront fee
    	
 
    	
36
    
	
 
    	
 
    	
11.3
    	
 
    	
Agency fee
    	
 
    	
36
    
	
 
    	
 
    	
11.4
    	
 
    	
Deduction of fees
    	
 
    	
36
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
12.
    	
 
    	
TAX GROSS-UP AND INDEMNITIES
    	
 
    	
36
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
12.1
    	
 
    	
Tax definitions
    	
 
    	
36
    
	
 
    	
 
    	
12.2
    	
 
    	
Tax gross-up
    	
 
    	
36
    
	
 
    	
 
    	
12.3
    	
 
    	
Tax indemnity
    	
 
    	
37
    
	
 
    	
 
    	
12.4
    	
 
    	
Tax credit
    	
 
    	
38
    
	
 
    	
 
    	
12.5
    	
 
    	
Stamp taxes
    	
 
    	
38
    
	
 
    	
 
    	
12.6
    	
 
    	
Indirect tax
    	
 
    	
38
    
	
 
    	
 
    	
12.7
    	
 
    	
FATCA information
    	
 
    	
38
    
	
 
    	
 
    	
12.8
    	
 
    	
FATCA Deduction
    	
 
    	
40
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
13.
    	
 
    	
INCREASED COSTS
    	
 
    	
40
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
13.1
    	
 
    	
Increased costs
    	
 
    	
40
    
	
 
    	
 
    	
13.2
    	
 
    	
Increased cost claims
    	
 
    	
41
    
	
 
    	
 
    	
13.3
    	
 
    	
Exceptions
    	
 
    	
42
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
14.
    	
 
    	
MITIGATION BY THE LENDERS
    	
 
    	
42
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
14.1
    	
 
    	
Mitigation
    	
 
    	
42
    
	
 
    	
 
    	
14.2
    	
 
    	
Limitation of liability
    	
 
    	
42
    
	
 
    	
 
    	
14.3
    	
 
    	
Conduct of business by the Finance Parties
    	
 
    	
42
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
15.
    	
 
    	
OTHER INDEMNITIES
    	
 
    	
43
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
15.1
    	
 
    	
Currency indemnity
    	
 
    	
43
    
	
 
    	
 
    	
15.2
    	
 
    	
Other indemnities
    	
 
    	
43
    
	
 
    	
 
    	
15.3
    	
 
    	
Indemnity to the Agent
    	
 
    	
44
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
16.
    	
 
    	
COSTS AND EXPENSES
    	
 
    	
44
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
16.1
    	
 
    	
Transaction expenses
    	
 
    	
44
    
	
 
    	
 
    	
16.2
    	
 
    	
Amendment costs
    	
 
    	
44
    
	
 
    	
 
    	
16.3
    	
 
    	
Enforcement costs
    	
 
    	
44
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
17.
    	
 
    	
REPRESENTATIONS
    	
 
    	
44
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
17.1
    	
 
    	
Status
    	
 
    	
44
    
	
 
    	
 
    	
17.2
    	
 
    	
Binding obligations
    	
 
    	
45
    
	
 
    	
 
    	
17.3
    	
 
    	
Non-conflict with other obligations
    	
 
    	
45
    
	
 
    	
 
    	
17.4
    	
 
    	
Power and authority
    	
 
    	
45
    
	
 
    	
 
    	
17.5
    	
 
    	
Validity and admissibility in evidence
    	
 
    	
45
    
	
 
    	
 
    	
17.6
    	
 
    	
Governing law and enforcement
    	
 
    	
45
    
	
 
    	
 
    	
17.7
    	
 
    	
Deduction of Tax
    	
 
    	
46
    
	
 
    	
 
    	
17.8
    	
 
    	
No filing or stamp taxes
    	
 
    	
46
    
	
 
    	
 
    	
17.9
    	
 
    	
No default
    	
 
    	
46
    
	
 
    	
 
    	
17.10
    	
 
    	
No misleading information
    	
 
    	
46
    
	
 
    	
 
    	
17.11
    	
 
    	
Financial statements
    	
 
    	
46
    
	
 
    	
 
    	
17.12
    	
 
    	
Pari passu ranking
    	
 
    	
47
    
	
 
    	
 
    	
17.13
    	
 
    	
No proceedings pending or threatened
    	
 
    	
47
    
	
 
    	
 
    	
17.14
    	
 
    	
Authorised signatures
    	
 
    	
47
    
	
 
    	
 
    	
17.15
    	
 
    	
Sanctions, anti-terrorism, anti-money laundering and   anti-corruption
    	
 
    	
47
    
	
 
    	
 
    	
17.16
    	
 
    	
List of Material Subsidiaries
    	
 
    	
49
    
	
 
    	
 
    	
17.17
    	
 
    	
Repetition
    	
 
    	
49
    

 

2

 

	
18.
    	
 
    	
INFORMATION UNDERTAKINGS
    	
 
    	
49
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
18.1
    	
 
    	
Financial statements
    	
 
    	
49
    
	
 
    	
 
    	
18.2
    	
 
    	
Compliance Certificate
    	
 
    	
49
    
	
 
    	
 
    	
18.3
    	
 
    	
Requirements as to financial statements
    	
 
    	
50
    
	
 
    	
 
    	
18.4
    	
 
    	
Information: miscellaneous
    	
 
    	
51
    
	
 
    	
 
    	
18.5
    	
 
    	
Notification of default
    	
 
    	
52
    
	
 
    	
 
    	
18.6
    	
 
    	
Use of Deal Site
    	
 
    	
52
    
	
 
    	
 
    	
18.7
    	
 
    	
“Know your customer” checks
    	
 
    	
53
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
19.
    	
 
    	
FINANCIAL COVENANTS
    	
 
    	
53
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
19.1
    	
 
    	
Financial definitions
    	
 
    	
53
    
	
 
    	
 
    	
19.2
    	
 
    	
Financial condition
    	
 
    	
54
    
	
 
    	
 
    	
19.3
    	
 
    	
Financial covenant testing
    	
 
    	
54
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
20.
    	
 
    	
GENERAL UNDERTAKINGS
    	
 
    	
55
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
20.1
    	
 
    	
Authorisations
    	
 
    	
55
    
	
 
    	
 
    	
20.2
    	
 
    	
Compliance with laws
    	
 
    	
55
    
	
 
    	
 
    	
20.3
    	
 
    	
Pari passu ranking
    	
 
    	
55
    
	
 
    	
 
    	
20.4
    	
 
    	
Negative pledge
    	
 
    	
55
    
	
 
    	
 
    	
20.5
    	
 
    	
Disposals
    	
 
    	
57
    
	
 
    	
 
    	
20.6
    	
 
    	
Merger
    	
 
    	
58
    
	
 
    	
 
    	
20.7
    	
 
    	
Change of business
    	
 
    	
59
    
	
 
    	
 
    	
20.8
    	
 
    	
Maintenance of corporate existence and books and records
    	
 
    	
59
    
	
 
    	
 
    	
20.9
    	
 
    	
Anti-corruption law
    	
 
    	
59
    
	
 
    	
 
    	
20.10
    	
 
    	
Sanctions, Anti-Terrorism Laws and Anti-Money Laundering Laws
    	
 
    	
59
    
	
 
    	
 
    	
20.11
    	
 
    	
Taxation
    	
 
    	
60
    
	
 
    	
 
    	
20.12
    	
 
    	
Further Assurance
    	
 
    	
60
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
21.
    	
 
    	
EVENTS OF DEFAULT
    	
 
    	
61
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
21.1
    	
 
    	
Non-payment
    	
 
    	
61
    
	
 
    	
 
    	
21.2
    	
 
    	
Financial covenants
    	
 
    	
61
    
	
 
    	
 
    	
21.3
    	
 
    	
Other obligations
    	
 
    	
61
    
	
 
    	
 
    	
21.4
    	
 
    	
Misrepresentation
    	
 
    	
61
    
	
 
    	
 
    	
21.5
    	
 
    	
Cross default
    	
 
    	
62
    
	
 
    	
 
    	
21.6
    	
 
    	
Insolvency
    	
 
    	
62
    
	
 
    	
 
    	
21.7
    	
 
    	
Insolvency proceedings
    	
 
    	
62
    
	
 
    	
 
    	
21.8
    	
 
    	
Creditors’ process
    	
 
    	
63
    
	
 
    	
 
    	
21.9
    	
 
    	
Unlawfulness and invalidity
    	
 
    	
63
    
	
 
    	
 
    	
21.10
    	
 
    	
Repudiation
    	
 
    	
64
    
	
 
    	
 
    	
21.11
    	
 
    	
Cessation of business
    	
 
    	
64
    
	
 
    	
 
    	
21.12
    	
 
    	
Material adverse change
    	
 
    	
64
    
	
 
    	
 
    	
21.13
    	
 
    	
Delisting or suspension of Borrower’s shares
    	
 
    	
64
    
	
 
    	
 
    	
21.14
    	
 
    	
Acceleration
    	
 
    	
64
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
22.
    	
 
    	
CHANGES TO THE PARTIES
    	
 
    	
65
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
22.1
    	
 
    	
Assignments and transfers by the Lenders
    	
 
    	
65
    
	
 
    	
 
    	
22.2
    	
 
    	
Conditions of assignment or transfer
    	
 
    	
65
    
	
 
    	
 
    	
22.3
    	
 
    	
Assignment or transfer fee
    	
 
    	
66
    
	
 
    	
 
    	
22.4
    	
 
    	
Limitation of responsibility of Existing Lenders
    	
 
    	
66
    
	
 
    	
 
    	
22.5
    	
 
    	
Procedure for transfer
    	
 
    	
67
    
	
 
    	
 
    	
22.6
    	
 
    	
Procedure for assignment
    	
 
    	
68
    
	
 
    	
 
    	
22.7
    	
 
    	
Copy of Transfer Certificate or Assignment Agreement to Borrower
    	
 
    	
69
    
	
 
    	
 
    	
22.8
    	
 
    	
Breach of Conditions of Assignment or Transfer
    	
 
    	
69
    
	
 
    	
 
    	
22.9
    	
 
    	
Existing consents and waivers
    	
 
    	
69
    
	
 
    	
 
    	
22.10
    	
 
    	
Exclusion of Agent’s liability
    	
 
    	
69
    
	
 
    	
 
    	
22.11
    	
 
    	
Sub-participation
    	
 
    	
69
    
	
 
    	
 
    	
22.12
    	
 
    	
Assignments and transfers to members of the Group
    	
 
    	
69
    

 

3

 

	
 
    	
 
    	
22.13
    	
 
    	
Security over Lenders’ rights
    	
 
    	
69
    
	
 
    	
 
    	
22.14
    	
 
    	
Assignments and transfers by the Borrower
    	
 
    	
70
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
23.
    	
 
    	
ROLE OF THE ADMINISTRATIVE PARTIES
    	
 
    	
70
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
23.1
    	
 
    	
Appointment of the Agent
    	
 
    	
70
    
	
 
    	
 
    	
23.2
    	
 
    	
Instructions
    	
 
    	
70
    
	
 
    	
 
    	
23.3
    	
 
    	
Duties of the Agent
    	
 
    	
71
    
	
 
    	
 
    	
23.4
    	
 
    	
Role of the MLABs
    	
 
    	
71
    
	
 
    	
 
    	
23.5
    	
 
    	
No fiduciary duties
    	
 
    	
71
    
	
 
    	
 
    	
23.6
    	
 
    	
Business with the Group
    	
 
    	
71
    
	
 
    	
 
    	
23.7
    	
 
    	
Rights and discretions of the Agent
    	
 
    	
72
    
	
 
    	
 
    	
23.8
    	
 
    	
Responsibility for documentation
    	
 
    	
73
    
	
 
    	
 
    	
23.9
    	
 
    	
No duty to monitor
    	
 
    	
73
    
	
 
    	
 
    	
23.10
    	
 
    	
Exclusion of liability
    	
 
    	
73
    
	
 
    	
 
    	
23.11
    	
 
    	
Lenders’ indemnity to the Agent
    	
 
    	
75
    
	
 
    	
 
    	
23.12
    	
 
    	
Resignation of the Agent
    	
 
    	
75
    
	
 
    	
 
    	
23.13
    	
 
    	
Confidentiality
    	
 
    	
76
    
	
 
    	
 
    	
23.14
    	
 
    	
Relationship with the Lenders
    	
 
    	
76
    
	
 
    	
 
    	
23.15
    	
 
    	
Credit appraisal by the Lenders
    	
 
    	
77
    
	
 
    	
 
    	
23.16
    	
 
    	
Deduction from amounts payable by the Agent
    	
 
    	
77
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
24.
    	
 
    	
SHARING AMONG THE FINANCE PARTIES
    	
 
    	
77
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
24.1
    	
 
    	
Payments to Finance Parties
    	
 
    	
77
    
	
 
    	
 
    	
24.2
    	
 
    	
Redistribution of payments
    	
 
    	
78
    
	
 
    	
 
    	
24.3
    	
 
    	
Recovering Finance Party’s rights
    	
 
    	
78
    
	
 
    	
 
    	
24.4
    	
 
    	
Reversal of redistribution
    	
 
    	
78
    
	
 
    	
 
    	
24.5
    	
 
    	
Exceptions
    	
 
    	
78
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
25.
    	
 
    	
PAYMENT MECHANICS
    	
 
    	
79
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
25.1
    	
 
    	
Payments to the Agent
    	
 
    	
79
    
	
 
    	
 
    	
25.2
    	
 
    	
Distributions by the Agent
    	
 
    	
79
    
	
 
    	
 
    	
25.3
    	
 
    	
Distributions to the Borrower
    	
 
    	
79
    
	
 
    	
 
    	
25.4
    	
 
    	
Clawback and pre-funding
    	
 
    	
79
    
	
 
    	
 
    	
25.5
    	
 
    	
Impaired Agent
    	
 
    	
80
    
	
 
    	
 
    	
25.6
    	
 
    	
Partial payments
    	
 
    	
81
    
	
 
    	
 
    	
25.7
    	
 
    	
No set-off by the Borrower
    	
 
    	
81
    
	
 
    	
 
    	
25.8
    	
 
    	
Business Days
    	
 
    	
81
    
	
 
    	
 
    	
25.9
    	
 
    	
Currency of account
    	
 
    	
81
    
	
 
    	
 
    	
25.10
    	
 
    	
Change of currency
    	
 
    	
82
    
	
 
    	
 
    	
25.11
    	
 
    	
Disruption to payment systems etc.
    	
 
    	
82
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
26.
    	
 
    	
SET-OFF
    	
 
    	
83
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
27.
    	
 
    	
NOTICES
    	
 
    	
83
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
27.1
    	
 
    	
Communications in writing
    	
 
    	
83
    
	
 
    	
 
    	
27.2
    	
 
    	
Addresses
    	
 
    	
83
    
	
 
    	
 
    	
27.3
    	
 
    	
Delivery
    	
 
    	
84
    
	
 
    	
 
    	
27.4
    	
 
    	
Notification of address and fax number
    	
 
    	
84
    
	
 
    	
 
    	
27.5
    	
 
    	
Electronic communication
    	
 
    	
84
    
	
 
    	
 
    	
27.6
    	
 
    	
Communication when Agent is an Impaired Agent
    	
 
    	
85
    
	
 
    	
 
    	
27.7
    	
 
    	
English language
    	
 
    	
85
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
28.
    	
 
    	
CALCULATIONS AND CERTIFICATES
    	
 
    	
85
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
28.1
    	
 
    	
Accounts
    	
 
    	
85
    
	
 
    	
 
    	
28.2
    	
 
    	
Certificates and determinations
    	
 
    	
85
    
	
 
    	
 
    	
28.3
    	
 
    	
Day count convention
    	
 
    	
85
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
29.
    	
 
    	
PARTIAL INVALIDITY
    	
 
    	
86
    

 

4

 

	
30.
    	
 
    	
REMEDIES AND WAIVERS
    	
 
    	
86
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
31.
    	
 
    	
AMENDMENTS AND WAIVERS
    	
 
    	
86
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
31.1
    	
 
    	
Required consents
    	
 
    	
86
    
	
 
    	
 
    	
31.2
    	
 
    	
All-Lender matters
    	
 
    	
86
    
	
 
    	
 
    	
31.3
    	
 
    	
Other exceptions
    	
 
    	
87
    
	
 
    	
 
    	
31.4
    	
 
    	
Excluded Commitment
    	
 
    	
87
    
	
 
    	
 
    	
31.5
    	
 
    	
Replacement of Screen Rate
    	
 
    	
87
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
32.
    	
 
    	
CONFIDENTIAL INFORMATION
    	
 
    	
88
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
32.1
    	
 
    	
Confidentiality
    	
 
    	
88
    
	
 
    	
 
    	
32.2
    	
 
    	
Disclosure of Confidential Information
    	
 
    	
88
    
	
 
    	
 
    	
32.3
    	
 
    	
Disclosure to numbering service providers
    	
 
    	
90
    
	
 
    	
 
    	
32.4
    	
 
    	
Entire agreement
    	
 
    	
91
    
	
 
    	
 
    	
32.5
    	
 
    	
Inside information
    	
 
    	
91
    
	
 
    	
 
    	
32.6
    	
 
    	
Notification of disclosure
    	
 
    	
91
    
	
 
    	
 
    	
32.7
    	
 
    	
Continuing obligations
    	
 
    	
91
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
33.
    	
 
    	
CONFIDENTIALITY OF FUNDING RATES
    	
 
    	
91
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
33.1
    	
 
    	
Confidentiality and disclosure
    	
 
    	
91
    
	
 
    	
 
    	
33.2
    	
 
    	
Related obligations
    	
 
    	
92
    
	
 
    	
 
    	
33.3
    	
 
    	
No Event of Default
    	
 
    	
93
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
34.
    	
 
    	
RESTRICTIONS ON DEBT PURCHASE TRANSACTIONS
    	
 
    	
93
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
34.1
    	
 
    	
Prohibition on Debt Purchase Transactions
    	
 
    	
93
    
	
 
    	
 
    	
34.2
    	
 
    	
Notification to other Lenders of Debt Purchase Transactions
    	
 
    	
93
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
35.
    	
 
    	
COUNTERPARTS
    	
 
    	
93
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
36.
    	
 
    	
U.S.A. PATRIOT ACT
    	
 
    	
93
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
37.
    	
 
    	
BAIL-IN
    	
 
    	
93
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
37.1
    	
 
    	
Contractual recognition of bail-in
    	
 
    	
93
    
	
 
    	
 
    	
37.2
    	
 
    	
Bail-In definitions
    	
 
    	
94
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
38.
    	
 
    	
GOVERNING LAW
    	
 
    	
94
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
39.
    	
 
    	
ENFORCEMENT
    	
 
    	
94
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
39.1
    	
 
    	
Jurisdiction of Hong Kong courts
    	
 
    	
94
    
	
 
    	
 
    	
39.2
    	
 
    	
Service of process
    	
 
    	
95
    
	
 
    	
 
    	
39.3
    	
 
    	
Waiver of immunities
    	
 
    	
95
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
40.
    	
 
    	
WAIVER OF JURY TRIAL
    	
 
    	
95
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Schedule
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
The Original Parties
    	
 
    	
96
    
	
2
    	
 
    	
Conditions Precedent
    	
 
    	
98
    
	
3
    	
 
    	
Utilisation Request
    	
 
    	
99
    
	
4
    	
 
    	
Form of Transfer Certificate
    	
 
    	
100
    
	
5
    	
 
    	
Form of Assignment Agreement
    	
 
    	
102
    
	
6
    	
 
    	
Form of Compliance Certificate
    	
 
    	
105
    
	
7
    	
 
    	
Timetables
    	
 
    	
106
    
	
8
    	
 
    	
Form of Syndication Agreement
    	
 
    	
107
    
	
9
    	
 
    	
Form of Increase Confirmation
    	
 
    	
108
    

 

5

 

THIS AGREEMENT is made on                                                          2018

 

BETWEEN:

 

(1)                                     NETEASE, INC., an exempted company incorporated with limited liability under the laws of the Cayman Islands with registration number 90896 whose registered office is at P.O. Box 31119 Seven Mile Beach, Grand Pavilion, Hibiscus Way, George Town, Grand Cayman, Cayman Islands (Borrower);

 

(2)                                     AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED, CITIGROUP GLOBAL MARKETS ASIA LIMITED, DBS BANK LTD. and THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED as mandated lead arrangers and bookrunners (MLABs, and each a MLAB);

 

(3)                                     THE FINANCIAL INSTITUTIONS listed in Part II of Schedule 1 as lenders (Original Lenders); and

 

(4)                                     CITICORP INTERNATIONAL LIMITED as agent of the Finance Parties (other than itself) (Agent).

 

THE PARTIES AGREE AS FOLLOWS:

 

1.                                          INTERPRETATION

 

1.1                                   Definitions

 

The following definitions apply in this document.

 

Acceleration Event means an Event of Default which is continuing and in respect of which the Agent has given notice to the Borrower demanding immediate repayment of the Facilities (pursuant to Clause 21.14 (Acceleration)).

 

Administrative Party means each of the Agent and the MLABs.

 

Affiliate means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company.

 

Anti-Bribery and Corruption Laws means:

 

(a)                           the FCPA;

 

(b)                           the United Kingdom Bribery Act of 2010;

 

(c)                           all laws, rules and regulations (concerning or relating to bribery or corruption) issued, administered or enforced by any of the United States of America, the United Kingdom, the European Union (or any member state thereof), Hong Kong, the PRC, Singapore, Canada, the Commonwealth of Australia or any Governmental Agency of any of the foregoing; and

 

(d)                           all laws, rules and regulations (concerning or relating to bribery or corruption) issued, administered or enforced by any other country or jurisdiction applicable to any member of the Group from time to time or any other Governmental Agency having jurisdiction over any member of the Group from time to time.

 

Anti-Money Laundering Laws means all applicable financial recordkeeping and reporting requirements and all applicable anti-money laundering statutes, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any of the United States, the United Kingdom, the European Union, the Cayman Islands, Hong Kong, the PRC, Singapore, Canada and the 

 

6

 

Commonwealth of Australia, and any other governmental agency having jurisdiction over the Borrower or any of its other Subsidiaries from time to time.

 

Anti-Terrorism Laws means any Executive Order, the U.S.A. Patriot Act, the Money Laundering Control Act of 1986, Public Law 99-570, the Currency and Foreign Transactions Reporting Act, 31 U.S.C. §§ 5311-5330 and 12 U.S.C. §§ 1818(s), 1820(b) and 1951-1959, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., the Trading with the Enemy Act, 50 U.S.C. App. §§ 1 et seq., the US United Nations Participation Act, the US Syria Accountability and Lebanese Sovereignty Act, the US Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, the Iran Sanctions Act, Section 1245 of the National Defense Authorization Act of 2012, any other regulation issued under authority of any Executive Order or administered by OFAC, the Prevention of Terrorism Act 2005 of the United Kingdom, any sanction implemented or effective in the United Kingdom under the United Nations Act 1946 or the Emergency Laws (Re-enactments and Repeals) Act 1964 or the Anti-Terrorism, Crime and Security Act 2001 of the United Kingdom or under the Treaty establishing the European Community, and any similar law, regulations and/or sanctions enacted, issued and/or administered by any of the United Nations, the United States, the United Kingdom, the European Union, the Cayman Islands, Hong Kong, the PRC, Singapore, Canada and the Commonwealth of Australia.

 

APLMA means the Asia Pacific Loan Market Association Limited.

 

Assignment Agreement means an agreement substantially in the form set out in Schedule 5 (Form of Assignment Agreement) or any other form agreed between the relevant assignor, assignee, the Agent and the Borrower (acting reasonably).

 

Auditors means one of PricewaterhouseCoopers, Ernst & Young, KPMG or Deloitte & Touche, any other firm of international repute or any other firm mutually agreed to by the Borrower and the Agent (acting on the instructions of the Majority Lenders, acting reasonably).

 

Authorisation means:

 

(a)                          an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation, lodgement or registration; or

 

(b)                          in relation to anything which will be fully or partly prohibited or restricted by law if a Governmental Agency intervenes or acts in any way within a specified period after lodgement, filing, registration or notification, the expiry of that period without intervention or action.

 

Availability Period means the period from and including the date of this agreement to and including the date falling 35 months from the date of this agreement.

 

Available Commitment means a Lender’s Commitment minus:

 

(a)                          the aggregate amount of its participation in any outstanding Loans; and

 

(b)                          in relation to any proposed Utilisation, the aggregate amount of its participation in any Loans that are due to be made on or before the proposed Utilisation Date,

 

other than, in relation to any proposed Utilisation, that Lender’s participation in any Loans that are due to be repaid or prepaid on or before the proposed Utilisation Date.

 

Available Facility means the aggregate for the time being of each Lender’s Available Commitment.

 

Borrowings has the meaning given to it in Clause 19.1 (Financial definitions).

 

7

 

Break Costs means the amount (if any) by which:

 

(a)                          the interest (excluding any portion thereof attributable to the Margin) which a Lender should have received for the period from the date of receipt of all or any part of its participation in a Loan or Unpaid Sum to the last day of the current Interest Period in respect of that Loan or Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the last day of that Interest Period;

 

exceeds:

 

(b)                          the amount which that Lender would be able to obtain by placing an amount equal to the principal amount or Unpaid Sum received by it on deposit with a leading bank in the Relevant Market for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period.

 

Business Day means a day (other than a Saturday or Sunday) on which banks are open for general business:

 

(a)         in relation to any date relating to the payment or purchase of currency, in New York and Hong Kong; and

 

(b)         in relation to any date relating to any matter other than as specified in paragraph (a) above, in Hong Kong and the PRC.

 

Code means the US Internal Revenue Code of 1986 as amended.

 

Commitment means:

 

(a)                          in relation to an Original Lender, the amount set opposite its name under the heading “Commitment” in Part II of Schedule 1 (The Original Parties) and the amount of any other Commitment transferred to it under this agreement; and

 

(b)                          in relation to any other Lender, the amount of any Commitment transferred to it under this agreement,

 

to the extent not cancelled, reduced or transferred by it under this agreement.

 

Compliance Certificate means a certificate delivered pursuant to Clause 18.2 (Compliance Certificate) and signed by an authorised signatory of the Borrower substantially in the form set out in Schedule 6 (Form of Compliance Certificate) or any other form agreed between the Agent and the Borrower.

 

Confidential Information means all information relating to the Borrower, the Group, the Finance Documents or the Facility of which a Finance Party becomes aware in its capacity as, or for the purpose of becoming, a Finance Party or which is received by a Finance Party in relation to, or for the purpose of becoming a Finance Party under, the Finance Documents or the Facility from either:

 

(a)                          any member of the Group or any of its advisers; or

 

(b)                          another Finance Party, if the information was obtained by that Finance Party directly or indirectly from any member of the Group or any of its advisers,

 

in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes

 

8

 

(i)                               information that:is or becomes public information other than as a direct or indirect result of any breach by that Finance Party of Clause 32 (Confidential Information); or

 

(ii)                            is identified in writing at the time of delivery as non-confidential by any member of the Group or any of its advisers; or

 

(iii)                         is known by that Finance Party before the date the information is disclosed to it in accordance with paragraph (a) or (b) above or is lawfully obtained by that Finance Party after that date, from a source which is, as far as that Finance Party is aware, unconnected with the Group and which, in either case, as far as that Finance Party is aware, has not been obtained in breach of, and is not otherwise subject to, any obligation of confidentiality.

 

Confidentiality Undertaking means a confidentiality undertaking substantially in a recommended form of the APLMA or in any other form agreed between the Borrower and the Agent.

 

Conflicted Lender means any Lender (which term, for the purposes of this definition shall include any Affiliate of that Lender) which is or is acting on behalf of (including in its capacity as the grantor of a sub-participation or sub-contract carrying economic, voting and/or information rights, or any other agreement pursuant to which such rights may pass) either:

 

(a)                          a competitor or supplier of the Group; or

 

(b)                          an investor or equity holder of more than five per cent. of the equity or total investment in a competitor or supplier of the Group,

 

in each case whether before or after such person becomes a Lender and including where a Lender notifies the Agent that it is such (in a Transfer Certificate or otherwise) and where it has been notified as such to the Agent by the Borrower or another member of the Group (acting reasonably and in good faith), provided that a Lender will not be deemed to be a Conflicted Lender solely by virtue of that Lender:

 

(i)                                     dealing in shares in or securities of a Competitor, where the relevant teams and employees of that Lender engaged in such dealings operate on the public side of an information barrier;

 

(ii)                                  becoming an investor or equity holder in a Competitor as a consequence of a debt-for-equity swap in, or enforcement of security over shares of, that competitor or supplier of the Group, provided that the relevant teams and employees of that Lender involved in such transactions are separated from any teams or employees of that Lender working in relation to the Group and the Finance Documents (and related transactions) by way of an information barrier; or

 

(iii)                               being an investor or equity holder in a Competitor through a separately managed private equity investment fund or similar entity owned or managed by that Lender, provided that the relevant teams and employees of that Lender involved in such private equity fund are separated from any teams or employees of that Lender working in relation to the Group and the Finance Documents (and related transactions) by way of an information barrier.

 

Consolidated EBITDA has the meaning given to it in Clause 19.1 (Financial definitions).

 

Consolidated Net Worth has the meaning given to it in Clause 19.1 (Financial definitions).

 

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Consolidated Total Debt has the meaning given to it in Clause 19.1 (Financial definitions).

 

Debt Purchase Transaction means, in relation to a person, a transaction where such person:

 

(a)                          purchases or acquires by way of assignment or transfer any rights and/or obligations in respect of;

 

(b)                          enters into any sub-participation in respect of; or

 

(c)                           enters into any other agreement or arrangement having an economic effect substantially similar to a sub-participation in respect of,

 

any Commitment or any amount outstanding under any Finance Document.

 

Default means an Event of Default or an event or circumstance specified in Clause 21 (Events of Default) which would (with the expiry of a grace period, the giving of notice or any combination of any of the foregoing) be an Event of Default.

 

Defaulting Lender means any Lender:

 

(a)                          which has failed to make its participation in a Loan available or has notified the Agent that it will not make its participation in a Loan available by the Utilisation Date of that Loan in accordance with Clause 5.4 (Lenders’ Participation);

 

(b)                          which has otherwise rescinded or repudiated a Finance Document; or

 

(c)                           with respect to which an Insolvency Event has occurred and is continuing, unless, in the case of paragraph (a) above:

 

(i)                            its failure to pay is caused by:

 

(A)         administrative or technical error; or

 

(B)         a Disruption Event; and

 

in each case, payment is made within five Business Days of its due date; or

 

(ii)                         the Lender is disputing in good faith, whether it is contractually obliged to make the payment in question.

 

Disruption Event means either or both of:

 

(a)                          a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with the Facility (or otherwise in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the Parties; and

 

(b)                          the occurrence of any other event which results in a disruption (of a technical or systems-related nature) to the treasury or payments operations of a Party preventing that, or any other Party:

 

(i)                               from performing its payment obligations under the Finance Documents; or

 

(ii)                           from communicating with other Parties in accordance with the terms of the Finance Documents, 

 

10

 

and which (in either such case) is not caused by, and is beyond the control of, the Party whose operations are disrupted.

 

Equity Interest means, in relation to any person:

 

(a)                          any shares of any class or capital stock of or equity interest (including partnership or membership interest) in such person or any depositary receipt in respect of any such shares, capital stock or equity interest;

 

(b)                          any securities convertible or exchangeable (whether at the option of the holder thereof or otherwise and whether such conversion is conditional or otherwise) into any such shares, capital stock, equity interest or depositary receipt, or any depositary receipt in respect of any such securities; or

 

(c)                           any option, warrant or other right to acquire any such shares, capital stock, equity interest, securities or depositary receipts referred to in paragraphs (a) and/or (b).

 

Event of Default means any event or circumstance specified as such in Clause 21 (Events of Default) (other than Clause 21.14 (Acceleration)).

 

Executive Orders means:

 

(a)                          the US Executive Order No. 13224 on Blocking Property and Prohibiting Transactions with Persons who Commit, Threaten to Commit, or Support Terrorism, which came into effect on 23 September 2001, as amended;

 

(b)                          the US Executive Order No. 13590 of 21 November 2011 authorising the imposition of certain sanctions with respect to the provision of goods, services, technology or support for Iran’s energy and petrochemical sectors;

 

(c)                           any other US Executive Order issued and in effect in connection with restrictions on the export of goods or economic or trade sanctions,

 

(each an Executive Order).

 

Facility means the revolving loan facility made available under this agreement as described in Clause 2 (The Facility).

 

Facility Office means the office or offices notified by a Lender to the Agent in writing on or before the date it becomes a Lender (or, following that date, by not less than five Business Days’ written notice) as the office or offices through which it will perform its obligations under this agreement.

 

FATCA means:

 

(a)                          sections 1471 to 1474 of the Code or any associated regulations;

 

(b)                          any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of any law or regulation referred to in paragraph (a) above; or

 

(c)                           any agreement pursuant to the implementation of any treaty, law or regulation referred to in paragraph (a) or (b) above with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction.

 

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FATCA Application Date means:

 

(a)                          in relation to a “withholdable payment” described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments from sources within the US), 1 July 2014;

 

(b)                          in relation to a “withholdable payment” described in section 1473(1)(A)(ii) of the Code (which relates to “gross proceeds” from the disposition of property of a type that can produce interest from sources within the US), 1 January 2019; or

 

(c)                           in relation to a “passthru payment” described in section 1471(d)(7) of the Code not falling within paragraph (a) or (b) above, 1 January 2019,

 

or, in each case, such other date from which such payment may become subject to a deduction or withholding required by FATCA as a result of any change in FATCA after the date of this agreement.

 

FATCA Deduction means a deduction or withholding from a payment under a Finance Document required by FATCA.

 

FATCA Exempt Party means a Party that is entitled to receive payments free from any FATCA Deduction.

 

FCPA means the United States Foreign Corrupt Practices Act 1977, as amended, and the rules and regulations thereunder.

 

Fee Letter means any letter or letters referring to this agreement or the Facility between one or more Administrative Parties and the Borrower setting out any of the fees referred to in Clause 11 (Fees).

 

Final Repayment Date means the date falling 36 Months after the date of this agreement.

 

Finance Document means this agreement, the Fee Letters, any Utilisation Request, any Compliance Certificate and any other document designated as such by the Agent and the Borrower.

 

Finance Party means the Agent, a MLAB or a Lender.

 

Financial Indebtedness means any indebtedness for or in respect of:

 

(a)                          any moneys borrowed;

 

(b)                          any amount raised by acceptance under any acceptance credit facility or dematerialised equivalent;

 

(c)                           any amount raised pursuant to any bond, note, debenture, loan stock or any similar instrument;

 

(d)                          the amount of any liability in respect of any finance lease or hire purchase contract which would, in accordance with GAAP, be treated as a balance sheet liability;

 

(e)                           receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis);

 

(f)                            any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing

 

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(g)                           any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked to market value (or, if any actual amount is due as a result of the termination or close-out of that derivative transaction, that amount) shall be taken into account);

 

(h)                          any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution; and/or

 

(i)                              the amount of any liability in respect of any guarantee or indemnity or similar assurance against financial loss for any of the items referred to in paragraphs (a) to (h) above.

 

Financial Quarter means the period commencing on the day after one Quarter Date and ending on the next Quarter Date.

 

Funding Rate means any individual rate notified by a Lender to the Agent pursuant to paragraph (a)(ii) of Clause 10.4 (Cost of funds).

 

GAAP means generally accepted accounting principles in the United States of America.

 

Governmental Agency means any government or any governmental agency, semi-governmental or judicial entity or authority (including any stock exchange or any self-regulatory organisation established under statute).

 

Group means the Borrower and its Subsidiaries from time to time.

 

Holding Company means, in relation to a person, any other person in respect of which it is a Subsidiary.

 

Impaired Agent means the Agent at any time when:

 

(a)                          it has failed to make (or has notified a Party that it will not make) a payment required to be made by it under the Finance Documents by the due date for payment;

 

(b)                          the Agent otherwise rescinds or repudiates a Finance Document;

 

(c)                           (if the Agent is also a Lender) it is a Defaulting Lender under paragraph (a) or (b) of the definition of “Defaulting Lender”; or

 

(d)                          an Insolvency Event has occurred and is continuing with respect to the Agent; unless, in the case of paragraph (a) above:

 

(i)                                  its failure to pay is caused by:

 

(A)        administrative or technical error; or

 

(B)        a Disruption Event; and

 

such payment is made within five Business Days of its due date; or

 

(ii)                               the Agent is disputing in good faith whether it is contractually obliged to make the payment in question.

 

Increase Confirmation means a confirmation substantially in the form set out in Schedule 9 (Form of Increase Confirmation) or in any other form agreed between the Agent and the Borrower.

 

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Indirect Tax means any goods and services tax, consumption tax, value added tax or any tax of a similar nature.

 

Information Memorandum means the document in the form approved by the Borrower concerning, among other things, the Group which, at the Borrower’s request and on its behalf, has been prepared in relation to the Facility and has been or will be distributed by the MLABs in connection with the syndication of the Facility.

 

Insolvency Event in relation to an entity, means that the entity:

 

(a)                          is dissolved (other than pursuant to a consolidation, amalgamation or merger);

 

(b)                          becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due;

 

(c)                           makes a general assignment, arrangement or composition with or for the benefit of its creditors;

 

(d)                          institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organisation or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official;

 

(e)                           has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition is instituted or presented by a person or entity not described in paragraph (d) above and:

 

(i)                              results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation; or

 

(ii)                           is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof;

 

(f)                            has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger);

 

(g)                           seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets (other than, for so long as it is required by law or regulation not to be publicly disclosed, any such appointment which is to be made, or is made, by a person or entity described in paragraph (d) above);

 

(h)                          has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter;

 

(i)                              causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in paragraphs (a) to (h) above; or

 

14

 

(j)                             takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts.

 

Interest Period means:

 

(a)                          in relation to a Loan, each period determined in accordance with Clause 9 (Interest Periods); and

 

(b)                          in relation to an Unpaid Sum, each period determined in accordance with Clause 8.3 (Default interest).

 

Interpolated Screen Rate means, in relation to any Loan, the rate (rounded to the same number of decimal places as the two relevant Screen Rates) which results from interpolating on a linear basis between:

 

(a)                          the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Interest Period of that Loan; and

 

(b)                          the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Interest Period of that Loan,

 

each as of the Specified Time on the Quotation Day for the currency of that Loan.

 

Latest Consolidated Balance Sheet has the meaning given to it in Clause 19.1 (Financial definitions).

 

Legal Reservations means:

 

(a)                          the principle that certain (including equitable) remedies may be granted or refused at the discretion of a court, the principle of reasonableness and fairness where implied by law and the limitation of enforcement by laws relating to bankruptcy, insolvency, reorganisation, court schemes, administration, moratoria and other laws generally affecting the rights of creditors;

 

(b)                          the time barring of claims under applicable statutes of limitation (or equivalent legislation), the possibility that an undertaking to assume liability for or indemnify a person against non-payment of stamp duty may be void and defences of acquiescence, set off or counterclaim;

 

(c)                           similar principles, rights and defences in respect of the enforceability of a contract, agreement or undertaking under the laws of any relevant jurisdiction;

 

(d)                          the principle that additional interest imposed pursuant to any relevant agreement may be held to be unenforceable on the grounds that it is a penalty and thus void;

 

(e)                           the principle that a court may not give effect to an indemnity for legal costs incurred by an unsuccessful litigant; and

 

(f)                            any other matters which are set out as qualifications or reservations as to matters of law of general application and which are set out in the legal opinions required to be delivered under this agreement (as if references therein to any document to which such legal opinions apply were references to any document to which any representation or warranty under any Finance Document (which is qualified by the Legal Reservations) relates).

 

Lender means:

 

(a)                          any Original Lender; and

 

15

 

(b)                          any bank, financial institution, trust, fund or other entity which has become a Party in accordance with Clause 22 (Changes to the Parties),

 

which in each case has not ceased to be a Party in accordance with the terms of this agreement.

 

Leverage has the meaning given to it in Clause 19.1 (Financial definitions).

 

LIBOR means, in relation to any Loan:

 

(a)                          the applicable Screen Rate as of the Specified Time for the currency of that Loan and for a period equal in length to the Interest Period of that Loan; or

 

(b)                          as otherwise determined pursuant to Clause 11.1 (Unavailability of Screen Rate),

 

and if, in either case, that rate is less than zero, LIBOR shall be deemed to be zero.

 

Loan means a loan made or to be made under the Facility or the principal amount outstanding for the time being of that loan.

 

London Business Day means a day (other than a Saturday or Sunday) on which commercial banks are open for general business, including dealings in interbank deposits in London.

 

Majority Lenders means a Lender or Lenders whose Commitments aggregate more than 662/3 per cent of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than 662/3 per cent of the Total Commitments immediately prior to the reduction).

 

Margin means 0.95 per cent. per annum.

 

Material Adverse Effect means a material adverse effect on:

 

(a)                          the business or financial condition of the Group (taken as a whole);

 

(b)                          the ability of the Borrower to perform its payment obligations under any Finance Document; or

 

(c)                           the validity, legality or enforceability of any Finance Document, or the rights or remedies of any Finance Party under, any Finance Document.

 

Material Subsidiary means, at any time, any Subsidiary of the Borrower which has total assets or revenue (excluding intra-group items) representing 10 per cent or more of the total assets or revenue of the Group, calculated on a consolidated basis by reference to the most recent audited accounts of the Group.

 

Month means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that:

 

(a)                          (subject to paragraph (c) below) if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day;

 

(b)                          if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month; and

 

16

 

(c)                           if an Interest Period begins on the last Business Day of a calendar month, that Interest Period shall end on the last Business Day in the calendar month in which that Interest Period is to end; and

 

The above rules will only apply to the last Month of any period.

 

NDRC means the National Development and Reform Commission of the PRC (including its successors) and its local counterparts.

 

New Lender has the meaning given to that term in Clause 22 (Changes to Parties).

 

Non-Consenting Lender has the meaning given to that term in Clause 7.5(g).

 

OFAC means the Office of Foreign Assets Control of the US Department of the Treasury (or any successor thereto).

 

Original Financial Statements means the audited consolidated financial statements of the Group for the financial year ended 31 December 2017.

 

Party means a party to this agreement.

 

PRC means the People’s Republic of China (for the purposes of this agreement, does not include Hong Kong, the Special Administrative Region of Macau or Taiwan).

 

Quarter Dates means each of 31 March, 30 June, 30 September and 31 December.

 

Quotation Day means:

 

(a)                          in relation to any period for which an interest rate is to be determined, two London Business Days before the first day of that period, (unless market practice differs in the Relevant Market in which case the Quotation Day will be determined by the Agent in accordance with market practice in the Relevant Market (and if quotations would normally be given on more than one day, the Quotation Day will be the last of those days)); or

 

(b)                          in relation to any Interest Period the duration of which is selected by the Agent pursuant to Clause 8.3 (Default interest), such date as may be determined by the Agent (acting reasonably).

 

Reference Bank Rate means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at its request by the Reference Banks:

 

(a)                          (other than where paragraph (b) below applies) as the rate at which the relevant Reference Bank could borrow funds in the London interbank market in the relevant currency and for the relevant period, were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period; or

 

(b)                          if different, as the rate (if any and applied to the relevant Reference Bank and the relevant currency and period) which contributors to the applicable Screen Rate are asked to submit to the relevant administrator.

 

Reference Banks means the principal London offices of Mizuho Bank, Ltd., The Bank of Tokyo-Mitsubishi UFJ Ltd., and Bank of China Limited or such other bank(s) as may be appointed by the Agent after consultation with the Borrower.

 

Related Fund, in relation to a fund (the first fund), means a fund which is managed or advised by the same investment manager or investment adviser as the first fund or, if it is managed by a different investment manager or investment adviser, a fund whose  

 

17

 

investment manager or investment adviser is an Affiliate of the investment manager or investment adviser of the first fund.

 

Relevant Market means the London interbank market.

 

Relevant Nominating Body means any applicable central bank, regulator or other supervisory authority or a group of them, or any working group or committee sponsored or chaired by, or constituted at the request of, any of them or the Financial Stability Board.

 

Relevant Periods has the meaning given to it in Clause 19.1 (Financial definitions).

 

Repeating Representations means each of the representations and warranties set out in Clauses 17.1 (Status) to 17.6 (Governing law and enforcement) (inclusive), paragraph (b) of 17.9 (No default), paragraphs (a) and (b) of Clause 17.11 (Financial statements), Clause 17.13 (No proceedings pending or threatened), Clause 17.14 (Authorised Signatures) and Clause 17.15 (Sanctions, anti-terrorism, anti-money laundering and anti-corruption).

 

Replacement Benchmark means a benchmark rate which is:

 

(a)                          formally designated, nominated or recommended as the replacement for the Screen Rate by:

 

(i)                              the administrator of the Screen Rate (provided that the market or economic reality that such benchmark rate measures is the same as that measured by the Screen Rate); or

 

(ii)                           any Relevant Nominating Body,

 

and if replacements have, at the relevant time, been formally designated, nominated or recommended under both paragraphs, the “Replacement Benchmark” will be the replacement under paragraph (ii) above;

 

(b)                          in the opinion of the Majority Lenders and the Borrower, generally accepted in the international or any relevant domestic syndicated loan markets as the appropriate successor to the Screen Rate; or

 

(c)                           in the opinion of the Majority Lenders and the Borrower, an appropriate successor to the Screen Rate.

 

Representative means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian.

 

Restricted Party means a person:

 

(a)                          that is listed on, or owned or controlled by a person listed on, or acting on behalf of a person listed on, any Sanctions List;

 

(b)                          that is located in or incorporated under the laws of, or owned or (directly or indirectly) controlled by, or acting on behalf of, a person located in or organised under the laws of any Sanctioned Jurisdiction; or

 

(c)                           that is otherwise a target of Sanctions signifying a person with whom a US person or other national of a Sanctions Authority would be prohibited or restricted by law from engaging in trade, business or other activities.

 

Rollover Loan means one or more Loans:

 

18

 

(a)                          made or to be made on the same day that a maturing Loan is due to be repaid;

 

(b)                          the aggregate amount of which is equal to or less than the amount of the maturing Loan;

 

(c)                           made or to be made for the purpose of refinancing that maturing Loan.

 

Sanctioned Jurisdiction means, at any time, any country or territory that is the target of countrywide or territory-wide Sanctions at that time (being, as at the date of this agreement, Cuba, Iran, North Korea, Sudan, Syria and the Crimea region).

 

Sanctions means any trade, economic or financial sanctions laws, regulations, embargoes or restrictive measures administered, enacted or enforced by:

 

(a)                          the European Union;

 

(b)                          the United Kingdom;

 

(c)                           the United Nations;

 

(d)                          the US;

 

(e)                           Hong Kong;

 

(f)                            the PRC;

 

(g)                           Singapore;

 

(h)                          Canada;

 

(i)                              the Commonwealth of Australia;

 

(j)                             the French Republic; and/or

 

(k)                          the Sanctions Authorities.

 

Sanctions Authorities means the governmental institutions and agencies of any of the countries listed in the definition of “Sanctions” under this agreement, including OFAC, the United Nations Security Council, the United States Department of State, the United States Department of the Treasury, the United States Department of Commerce, the European Union, Her Majesty’s Treasury (HMT), the Hong Kong Monetary Authority and any other applicable sanctions authority.

 

Sanctions List means the “Specially Designated Nationals and Blocked Persons” list maintained by OFAC and the Consolidated List of Financial Sanctions Targets and the Investment Ban List maintained by HMT, or any similar list maintained by, or any public announcement of Sanctions designation made by, any of the Sanctions Authorities.

 

Screen Rate means the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for the relevant currency and period displayed (before any correction, recalculation or republication by the administrator) on page LIBOR01 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate) or on the appropriate page of such other information service which publishes that rate from time to time in place of Thomson Reuters.

 

Screen Rate Replacement Event means, in relation to the Screen Rate:

 

19

 

(a)                          the methodology, formula or other means of determining the Screen Rate has, in the opinion of the Majority Lenders materially changed;

 

(b)

 

(i)

 

(A)        the administrator of the Screen Rate or its supervisor publicly announces that such administrator is insolvent; or

 

(B)        information is published in any order, decree, notice, petition or filing, however described, of or filed with a court, tribunal, exchange, regulatory authority or similar administrative, regulatory or judicial body which reasonably confirms that the administrator of the Screen Rate is insolvent,

 

provided that, in each case, at that time, there is no successor administrator to continue to provide the Screen Rate;

 

(ii)                           the administrator of the Screen Rate publicly announces that it has ceased or will cease, to provide the Screen Rate permanently or indefinitely and, at that time, there is no successor administrator to continue to provide the Screen Rate;

 

(iii)                        the supervisor of the administrator of the Screen Rate publicly announces that the Screen Rate has been or will be permanently or indefinitely discontinued; or

 

(iv)                       the administrator of the Screen Rate or its supervisor announces that the  Screen Rate may no longer be used; or

 

(c)                           the administrator of that Screen Rate determines that the Screen Rate should be calculated in accordance with its reduced submissions or other contingency or fallback policies or arrangements and either:

 

(i)                              the circumstance(s) or event(s) leading to such determination are not (in the opinion of the Majority Lenders and the Borrower) temporary; or

 

(ii)                           the Screen Rate is calculated in accordance with any such policy or arrangement for a period no less than 5 days; or

 

(d)                          in the opinion of the Majority Lenders and the Borrower, the Screen Rate is otherwise no longer appropriate for the purposes of calculating interest under this agreement.

 

Security means a mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect.

 

Separate Loan has the meaning given to that term in Clause 6.1(c) (Repayment of Loans).

 

Specified Time means a day or time determined in accordance with Schedule 7 (Timetables).

 

Subsidiary means, in relation to any company or corporation, association or other entity, a company or corporation, association or other entity:

 

(a)                          which is controlled, directly or indirectly, by the first mentioned company, corporation or entity;

 

20

 

(b)                          more than half the issued equity share capital, registered capital or equity interest of which is beneficially owned, directly or indirectly, by the first mentioned company, corporation or entity; or

 

(c)                           which is a Subsidiary of another Subsidiary of the first mentioned company, corporation or entity; or

 

(d)                          the financial condition or results of operation of which are or are required under GAAP to be consolidated for the purposes of the consolidated financial statements of the first mentioned company, corporation or entity,

 

and, for this purpose, a company, corporation or entity shall be treated as being controlled by another if that other company, corporation or entity is able to direct its affairs and/or to control the majority of the composition of its board of directors or equivalent body.

 

Super Majority Lenders means a Lender or Lenders whose Commitments aggregate 80 per cent. or more of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregate 80 per cent. or more of the Total Commitments immediately prior to the reduction of the Total Commitments to zero).

 

Syndication Agreement has the meaning given to it in Clause 22.5 (Procedure for transfer).

 

Tax means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same).

 

Tax Deduction has the meaning given to such term in paragraph (a) of Clause 12.1 (Tax definitions).

 

Total Commitments means at any time the aggregate of the Commitments (being US$500,000,000 at the date of this agreement).

 

Transfer Certificate means a certificate substantially in the form set out in Schedule 4 (Form of Transfer Certificate) or any other form agreed between the Agent and the Borrower.

 

Transfer Date means:

 

(a)                          in respect of an assignment or a transfer pursuant to an Assignment Agreement or Transfer Certificate, the later of:

 

(i)                              the proposed Transfer Date specified in the relevant Assignment Agreement or Transfer Certificate; and

 

(ii)                           the date on which the Agent executes the relevant Assignment Agreement or Transfer Certificate; and

 

(b)                          in respect of an assignment or transfer pursuant to a Syndication Agreement, the date specified as such in the Syndication Agreement.

 

Unpaid Sum means any sum due and payable but unpaid by the Borrower under any or all of the Finance Documents.

 

US and United States means the United States of America, its territories, possessions and other areas subject to the jurisdiction of the United States of America.

 

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US Bankruptcy Code means Title 11 of the United States Code, 11 USC. 101 et seq., entitled “Bankruptcy”.

 

U.S.A. Patriot Act means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56.

 

US Tax Obligor means the Borrower if:

 

(a)                          it is resident for tax purposes in the US; or

 

(b)                          its payments under the Finance Documents are from sources within the US for US federal income tax purposes.

 

Utilisation means a utilisation of the Facility.

 

Utilisation Date means the date of a Utilisation, being the date on which the relevant Loan is made or to be made.

 

Utilisation Request means a notice substantially in the form set out in Schedule 3.

 

Voting Participation means a participation or sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference to, one or more Finance Documents, the Facility and/or the Borrower which includes a transfer of any voting rights under, or in relation to, the Finance Documents (including, for the avoidance of doubt, arising as a result of being able to direct the way that another person exercises its voting rights).

 

1.2                                   Construction

 

(a)                           Unless a contrary indication appears, any reference in this Agreement to:

 

(i)                               any Administrative Party, the Agent, any MLAB, any Finance Party, any Lender, or any Party shall be construed so as to include its successors in title, permitted assigns and permitted transferees to, or of, its rights and/or obligations under the Finance Documents;

 

(ii)                            assets includes present and future properties, revenues and rights of every description;

 

(iii)                         disposal includes any sale, lease, transfer, conveyance, assignment and other disposal of any asset or any interest therein (including any other transaction or arrangement pursuant to which the economic benefit of or beneficial interest in such asset is lost or diluted) and dispose shall be construed accordingly;

 

(iv)                        a Finance Document or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended, novated, supplemented, extended or restated;

 

(v)                           guarantee includes any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness;

 

(vi)                        including shall be construed as “including without limitation” (and cognate expressions shall be construed similarly);

 

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(vii)                     a group of Lenders includes all the Lenders;

 

(viii)                  indebtedness includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent;

 

(ix)                        a Lender’s participation in a Loan or Unpaid Sum includes an amount (in the currency of such Loan or Unpaid Sum) representing the fraction or portion (attributable to such Lender by virtue of the provisions of this agreement) of the total amount of such Loan or Unpaid Sum and the Lender’s rights under the Finance Documents in respect thereof;

 

(x)                           a person includes any individual, firm, company, corporation, government, state or agency of a state or any association, trust, joint venture, consortium, partnership or other entity (whether or not having separate legal personality);

 

(xi)                        a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law but if not having the force of law, being of a type with which any person to whom it applies is accustomed to comply) of any governmental, intergovernmental or supranational body, agency, department or of any regulatory, self-regulatory or other authority or organisation;

 

(xii)                     a provision of law is a reference to that provision as amended or re-enacted; and

 

(xiii)                  a time of day is a reference to Hong Kong time.

 

(b)                           The determination of the extent to which a rate is for a period equal in length to an Interest Period shall disregard any inconsistency arising from the last day of that Interest Period being determined pursuant to the terms of this agreement.

 

(c)                            Clause and Schedule headings are for ease of reference only.

 

(d)                           Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that Finance Document or notice as in this agreement.

 

(e)                            A Default or an Event of Default is continuing if it has not been remedied or waived.

 

(f)                             For the purposes of Clause 17 (Representations), 20 (General Undertakings), 21 (Events of Default), (but not, for the avoidance of doubt, Clause 21.2 (Non-payment) or Clause 21.2 (Financial Covenants) or any breach thereof), a reference to an amount (or its equivalent in another currency or currencies) shall be determined by reference to the rate of exchange as at the date of the relevant member of the Group incurring, committing to or making the relevant disposal, acquisition, investment, lease, loan, debt or guarantee or other relevant action.  No breach, Default or Event of Default shall arise merely as a result of a subsequent change in the base currency equivalent of any relevant amount due to fluctuations in exchange rates.

 

(g)                            Where this agreement specifies an amount in a given currency (the specified currency) or its equivalent, the equivalent is a reference to the amount of any other currency which, when converted into the specified currency utilising the Agent’s Spot Rate of Exchange for the purchase of the specified currency with that other currency at or about 11 a.m. on the relevant date, is equal to the relevant amount in the specified currency.

 

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1.3                                   Currency symbols and definitions

 

(a)                           US$ and US dollars denote the lawful currency of the United States of America.

 

(b)                           Renminbi and RMB denote lawful currency of the PRC.

 

1.4                                   Personal Liability

 

No personal liability shall attach to any director, officer, employee or other individual signing a certificate or other document on behalf of a member of the Group which proves to the incorrect in any way, unless that individual acted fraudulently in giving that certificate or other document in which case any liability will be determined in accordance with applicable law and each such certificate shall contain a statement to this effect.

 

1.5                                   Third party rights

 

(a)                           A person who is not a Party has no right under the Contracts (Rights of Third Parties) Ordinance (Cap. 623) (the Third Parties Ordinance) to enforce or to enjoy the benefit of any term of this agreement.

 

(b)                           Notwithstanding any term of any Finance Document (including paragraph (a) above), the consent of any person who is not a Party is not required to rescind, vary or waive any provision of this agreement at any time.

 

2.                                          THE FACILITY

 

2.1                                   The Facility

 

Subject to the terms of this agreement, the Lenders make available to the Borrower a US dollar revolving loan facility in an aggregate amount equal to the Total Commitments.

 

2.2                                   Increase

 

(a)                             The Borrower may by giving prior notice to the Agent by no later than the date falling 20 Business Days after the effective date of a cancellation of the Commitments of a Lender (“Cancelled Lender”) in accordance with Clause 7.1 (Illegality) or paragraph (a) of Clause 7.5 (Right of Repayment and Cancellation in relation to a Single Lender) request that the Total Commitments be increased (and the Total Commitments shall be so increased) in an aggregate amount of up to the amount of the Commitments so cancelled as follows:

 

(i)                                     the increased Commitments will be assumed by one or more Lenders or other banks, or financial institutions, trusts, funds or other entities (each an “Increase Lender”) selected by the Borrower (each of which complies with the requirements of Clause 22.1 (Assignments and transfers by the Lenders) and each of which confirms its willingness to assume (the “Assumed Commitment” of such Increase Lender) and does assume all the obligations of a Lender corresponding to that part of the increased Commitments which it is to assume, as if it had been an Original Lender with such Assumed Commitment;

 

(ii)                                  each of the Borrower and any Increase Lender shall assume obligations towards one another and/or acquire rights against one another as the Borrower and the Increase Lender would have assumed and/or acquired had the Increase Lender been an Original Lender;

 

(iii)                               each Increase Lender which is not already a Lender shall become a Party as a “Lender” and any Increase Lender and each of the other Finance Parties shall assume obligations towards one another and acquire rights against one another as that Increase Lender and those Finance Parties 

 

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would have assumed and/or acquired had the Increase Lender been an Original Lender;

 

(iv)                              the Commitments of the other Lenders shall continue in full force and effect; and

 

(v)                                 any increase in the Total Commitments shall take effect on the date specified by the Borrower in the notice referred to above or any later date on which the conditions set out in paragraph (b) below are satisfied.

 

(b)                                 An increase in the Total Commitments pursuant to paragraph (a) will only be effective on:

 

(i)                                     the execution by the Agent of an Increase Confirmation from the relevant Increase Lender; and

 

(ii)                                  in relation to an Increase Lender which is not a Lender immediately prior to the relevant increase in Commitments, the Agent being satisfied that it has completed all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to the assumption of the increased Commitments by that Increase Lender, the completion of which the Agent shall promptly notify to the Borrower and the Increase Lender.

 

(b)                                 Each Increase Lender, by executing the Increase Confirmation, confirms (for the avoidance of doubt) that the Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the increase in Commitments becomes effective.

 

(c)                                       The Borrower shall promptly on demand pay the Agent the amount of all costs and expenses (including legal fees) reasonably incurred by it in connection with any increase in Commitments under this Clause 2.2.

 

(d)                                      An Increase Lender shall, on the date upon which the assumption of any Assumed Commitment takes effect, pay to the Agent (for its own account) a fee in an amount equal to the fee which would be payable under Clause 22.3 (Assignment or transfer fee) if such increase in Commitment were a transfer of such Assumed Commitment to such Increase Lender pursuant to Clause 22.5 (Procedure for transfer) and if such Increase Lender were a New Lender.

 

(e)                                       The Borrower may pay to the Increase Lender a fee in the amount and at the times agreed between the Borrower and the Increase Lender in a Fee Letter.

 

(f)                                        Neither the Agent nor any Lender shall have any obligation to find an Increase Lender and in no event shall any Lender whose Commitment is assumed or replaced by an Increase Lender be required to pay or surrender any of the fees received by such Lender pursuant to the Finance Documents.

 

(g)                                       Clause 22.4 (Limitation of Responsibility of Existing Lenders) shall apply mutatis mutandis in this Clause 2.2 (Increase) in relation to an Increase Lender as if references in that Clause 22.4 (Limitation of Responsibility of Existing Lenders) to:

 

(i)                                     an “Existing Lender” were references to all the Lenders immediately prior to the relevant increase in Commitments or the assumption of any Assumed Commitment by such Increase Lender;

 

(ii)                                  the “New Lender” were references to that “Increase Lender”; and

 

(iii)                               a “re-transfer” and “re-assignment” were references to respectively a “transfer” and “assignment”.

 

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2.3                                   Finance Parties’ rights and obligations

 

(a)                           The obligations of each Finance Party under the Finance Documents are several.  Failure by a Finance Party to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance Documents.  No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents.

 

(b)                           The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance Party from the Borrower is a separate and independent debt in respect of which a Finance Party shall be entitled to enforce its rights in accordance with paragraph (c) below. The rights of each Finance Party include any debt owing to that Finance Party under the Finance Documents and, for the avoidance of doubt, any part of a Loan or any other amount owed by the Borrower which relates to a Finance Party’s participation in the Facility or its role under a Finance Document (including any such amount payable to the Agent on its behalf) is a debt owing to that Finance Party by the Borrower.

 

(c)                            A Finance Party may, except as specifically provided in the Finance Documents, separately enforce its rights under or in connection with the Finance Documents.  Each Finance Party shall be entitled to separately enforce its rights under the Finance Documents against the Borrower to recover any amount that is due and payable to it under any Finance Document (or to recover its share of any amount that is due and payable under any Finance Document) without the consent of any other Party; and nothing shall prejudice the rights of a Finance Party from separately enforcing its rights in relation to any debt arising under any Finance Document owing to it (or its share of any debt arising under a Finance Document), which debt is due and payable.

 

3.                                          PURPOSE

 

3.1                                   Purpose

 

The Borrower shall apply all amounts borrowed by it under the Facility towards financing the general working capital of the Borrower and its Subsidiaries.

 

3.2                                   Monitoring

 

No Finance Party is bound to monitor or verify the application of any amount borrowed pursuant to this agreement.

 

4.                                          CONDITIONS OF UTILISATION

 

4.1                                   Initial conditions precedent

 

(a)                           The Borrower may not deliver a Utilisation Request unless the Agent has received all of the documents and other evidence listed in Schedule 2 (Conditions Precedent) in form and substance satisfactory to the Agent (acting on the instructions of the Majority Lenders acting reasonably).  The Agent shall notify the Borrower and the Lenders promptly upon being so satisfied.

 

(b)                           Other than to the extent that the Majority Lenders notify the Agent in writing to the contrary before the Agent gives the notification described in paragraph (a) above, the Lenders authorise (but do not require) the Agent to give that notification.  The Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such notification.

 

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4.2                                   Further conditions precedent

 

The Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation) if on the date of the Utilisation Request and on the proposed Utilisation Date:

 

(a)                           in the case of a Rollover Loan only, no Acceleration Event is continuing or would result from the proposed Loan and, in the case of any other Loan, no Default is continuing or would result from the proposed Loan; and

 

(b)                           the Repeating Representations to be made by the Borrower are true in all material respects.

 

4.3                                   Maximum number of Loans

 

(a)                           The Borrower may not deliver a Utilisation Request if as a result of the proposed Utilisation, 10 or more Loans would be outstanding.

 

(b)                           The Borrower may not request that a Loan be divided.

 

5.                                          UTILISATION

 

5.1                                   Delivery of a Utilisation Request

 

The Borrower may utilise the Facility by delivery to the Agent of a duly completed Utilisation Request not later than the Specified Time.

 

5.2                                   Completion of a Utilisation Request

 

(a)                           Each Utilisation Request is irrevocable and will not be regarded as having been duly completed unless:

 

(i)                               the proposed Utilisation Date is a Business Day within the Availability Period;

 

(ii)                            the currency and amount of the Utilisation comply with Clause 5.3 (Currency and amount); and

 

(iii)                         the proposed first Interest Period complies with Clause 9 (Interest Periods).

 

(b)                           Only one Loan may be requested in each Utilisation Request.

 

5.3                                   Currency and amount

 

(a)                           The currency specified in a Utilisation Request must be in US dollars.

 

(b)                           The amount of the proposed Loan must be an amount which is (i) a minimum of US$50,000,000 and an integral multiple of US$10,000,000, or (ii) if less, the Available Facility.

 

5.4                                   Lenders’ participation

 

(a)                           If the conditions set out in this agreement have been met, and subject to Clause 6.1 (Repayment of Loans), each Lender shall make its participation in each Loan available by the Utilisation Date through its Facility Office.

 

(b)                           The amount of each Lender’s participation in each Loan will be equal to the proportion borne by its Available Commitment to the Available Facility immediately prior to making the Loan.

 

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(c)                            The Agent shall notify each Lender of the amount of each Loan, the amount of its participation in that Loan and, if different, the amount of that participation to be made available in accordance with Clause 25.1 (Payments to the Agent), in each case by the Specified Time.

 

5.5                                   Cancellation of Available Facility

 

The Commitments which, at that time, are unutilised shall be immediately cancelled at 5.00 pm on the last day of the Availability Period.

 

6.                                          REPAYMENT

 

6.1                                   Repayment of Loans

 

(a)                           Subject to paragraph (c), the Borrower shall repay each Loan on the last day of its Interest Period.

 

(b)                           Without prejudice to the Borrower’s obligation under paragraph (a) above, if:

 

(i)                               one or more Loans are to be made available to the Borrower:

 

(A)                         on the same day that a maturing Loan is due to be repaid by the Borrower; and

 

(B)                         in whole or in part for the purpose of refinancing the maturing Loan; and

 

(ii)                            the proportion borne by each Lender’s participation in the maturing Loan to the amount of that maturing Loan is the same as the proportion borne by that Lender’s participation in the new Loans to the aggregate amount of those new Loans,

 

the aggregate amount of the new Loans shall, unless the Borrower notifies the Agent to the contrary in the relevant Utilisation Request, be treated as if applied in or towards repayment of the maturing Loan so that:

 

(A)                         if the amount of the maturing Loan exceeds the aggregate amount of the new Loans:

 

(aa)                    the Borrower will only be required to make a payment under Clause 25.1 (Payments to the Agent) in an amount in the relevant currency equal to that excess; and

 

(bb)                    each Lender’s participation in the new Loans shall be treated as having been made available and applied by the Borrower in or towards repayment of that Lender’s participation in the maturing Loan and that Lender will not be required to make a payment under Clause 25.1 (Payments to the Agent) in respect of its participation in the new Loans; and

 

(B)                         if the amount of the maturing Loan is equal to or less than the aggregate amount of the new Loans:

 

(aa)                    the Borrower will not be required to make a payment under Clause 25.1 (Payments to the Agent); and

 

(bb)                    each Lender will be required to make a payment under Clause 25.1 (Payments to the Agent) in respect of its participation in the new Loans only to the extent that its participation in the 

 

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new Loans exceeds that Lender’s participation in the maturing Loan and the remainder of that Lender’s participation in the new Loans shall be treated as having been made available and applied by the Borrower in or towards repayment of that Lender’s participation in the maturing Loan.

 

(c)                            At any time when a Lender becomes a Defaulting Lender, the maturity date of each of the participations of that Lender in the Loans then outstanding will be automatically extended to the Final Repayment Date and will be treated as separate Loans (the “Separate Loans”).

 

(d)                           The Borrower may prepay that Separate Loan by giving three Business Days’ prior notice to the Agent. The Agent will forward a copy of a prepayment notice received in accordance with this paragraph (d) to the Defaulting Lender concerned as soon as practicable on receipt.

 

(e)                            Interest in respect of a Separate Loan will accrue for successive Interest Periods selected by the Borrower by the time and date specified by the Agent (acting reasonably) and will be payable by the Borrower to the Defaulting Lender on the last day of each Interest Period of that Loan.

 

(f)                             The terms of this agreement relating to Loans generally shall continue to apply to Separate Loans other than to the extent inconsistent with paragraphs (c) to (e) above, in which case those paragraphs shall prevail in respect of any Separate Loan.

 

(g)                            All Loans must be repaid in full on the Final Repayment Date.

 

7.                                          PREPAYMENT AND CANCELLATION

 

7.1                                   Illegality

 

If, at any time, it is or will become unlawful in any applicable jurisdiction for a Lender to perform any of its obligations as contemplated by this agreement or to fund or maintain its participation in any Loan or any part thereof:

 

(a)                           that Lender shall promptly notify the Agent upon becoming aware of that event and the Agent shall promptly notify the Borrower upon receipt of such notification from that Lender;

 

(b)                           upon the Agent notifying the Borrower, the Available Commitment of that Lender will be immediately cancelled to the extent necessary to comply with applicable law; and

 

(c)                            to the extent that the Lender’s participation has not been transferred pursuant to paragraph (d) of Clause 7.5 (Right of prepayment and cancellation in relation to a single Lender), the Borrower shall repay that Lender’s participation in the Loans made to the Borrower on the last day of the Interest Period for each Loan occurring after the Agent has notified the Borrower or, if earlier, the date specified by the Lender in the notice delivered to the Agent (being no earlier than the last day of any applicable grace period permitted by law) and that Lender’s corresponding Commitment(s) shall be cancelled in the amount of the participations repaid.

 

7.2                                   Change of Control

 

(a)                           If a Change of Control occurs:

 

(i)                               the Borrower shall promptly notify the Agent upon becoming aware of that event;

 

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(ii)                            (irrespective of whether the Borrower has complied with paragraph (i) above):

 

(A)                         if the Majority Lenders so require, the Agent shall, by no later than the date which is 90 days after the later of (i) the occurrence of a change of control or (ii) the Agent becoming aware of the change of control and by not less than 30 days’ notice to the Borrower:

 

(aa)                    cancel the Total Commitments, whereupon they shall be cancelled in full; and/or

 

(bb)                    declare all outstanding Loans, together with accrued interest and any Break Costs, and all other amounts accrued under the Finance Documents immediately due and payable, whereupon the Total Commitments will be cancelled and all such outstanding Loans and amounts will become immediately due and payable.

 

(b)                           For the purposes of paragraph (a) above, Change of Control means any person or group of persons acting in concert (other than any person or group of persons acting in concert who control the Borrower as at the date of this agreement) gains direct or indirect control of the Borrower.  For the purposes of this definition:

 

(i)                               acting in concert means, a group of persons who, pursuant to an agreement or understanding (whether formal or informal), actively co-operate, through the acquisition directly or indirectly of shares in the Borrower by any of them, either directly or indirectly, to obtain or consolidate control of the Borrower; and

 

(ii)                            control of a person means the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

 

(A)                         cast, or control the casting of, more than one-half of the maximum number of votes that might be cast at a general meeting of that person;

 

(B)                         appoint or remove all, or the majority, of the directors or other equivalent officers of that person; or

 

(C)                         give directions with respect to the operating and financial policies of that person with which the directors or other equivalent officers of that person are obliged to comply.

 

7.3                                   Voluntary cancellation

 

The Borrower may, if it gives the Agent not less than three (3) Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, cancel the whole or any part (being a minimum amount of US$50,000,000 and an integral multiple of US$10,000,000) of the Available Facility.  Any cancellation under this Clause 7.3 shall reduce the Commitments of the Lenders rateably under the Facility.

 

7.4                                   Voluntary prepayment of Loans

 

The Borrower to which a Loan has been made may, if it gives the Agent not less than three (3) Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part of a Loan (but if in part, being an amount that reduces the amount of such Loan by a minimum amount of US$50,000,000 and in an integral multiple of US$10,000,000 or, if less, the balance of the outstanding Loan).

 

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7.5                                   Right of prepayment and cancellation in relation to a single Lender

 

(a)                           If:

 

(i)                               any sum payable to any Lender by the Borrower is required to be increased under paragraph (a) of Clause 12.2 (Tax gross-up);

 

(ii)                            any Lender claims indemnification from the Borrower under Clause 12.3 (Tax indemnity) or Clause 13.1 (Increased costs); or

 

(iii)                         any Lender becomes a Defaulting Lender,

 

the Borrower may, whilst the circumstance giving rise to the requirement for that increase or indemnification continues, give the Agent notice of cancellation of the Commitment(s) of that Lender and its intention to procure the prepayment of that Lender’s participation in the Loans or give the Agent notice of its intention to replace that Lender in accordance with paragraph (d) below.

 

(b)                           On receipt of a notice of cancellation referred to in paragraph (a) above, the Commitment(s) of that Lender shall immediately be reduced to zero.

 

(c)                            On the last day of each Interest Period which ends after the Borrower has given notice of cancellation under paragraph (a) above (or, if earlier, the date specified by the Borrower in that notice), the Borrower shall prepay that Lender’s participation in that Loan.

 

(d)                           If:

 

(i)                               any of the circumstances set out in paragraph (a) above apply to a Lender;

 

(ii)                            the Borrower becomes obliged to pay any amount in accordance with Clause 7.1 (Illegality) to any Lender; or

 

(iii)                         any Lender becomes a Non-Consenting Lender (as defined in paragraph (g) below),

 

the Borrower may, on not less than five Business Days’ prior written notice to the Agent and that Lender, replace that Lender by requiring that Lender to (and, to the extent permitted by law, that Lender shall) transfer pursuant to Clause 22 (Changes to the Parties) all (and not part only) of its rights and obligations under the Finance Documents to another Lender which confirms its willingness to assume and does assume all the obligations of the transferring Lender in accordance with Clause 22 (Change to the Parties) for a purchase price in cash payable at the time of the transfer in an amount equal to the outstanding principal amount of such Lender’s participation in the outstanding Loans and all accrued interest, Break Costs and other amounts payable in relation thereto under the Finance Documents.

 

(e)                            The replacement of a Lender pursuant to paragraph (d) above shall be subject to the following conditions:

 

(i)                               the Borrower shall have no right to replace the Agent;

 

(ii)                            neither the Agent nor any Lender shall have any obligation to find a replacement Lender;

 

(iii)                         in no event shall the Lender replaced under paragraph (d) above be required to pay or surrender any of the fees received by such Lender pursuant to the Finance Documents;

 

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(iv)                        no Lender shall be obliged to execute a Transfer Certificate unless it is satisfied that it has completed all “know your customer” and other similar procedures that it is required (or deems desirable) to conduct in relation to the transfer to such replacement Lender;

 

(v)                           the Lender replaced under paragraph (d) above shall:

 

(A)                         not be required to make any transfer under that paragraph to the extent that such transfer is, or would be reasonably likely to result, in breach of or non-compliance with any applicable law or regulation, or any rules or regulations of any applicable securities exchange applicable to such Lender; and

 

(B)                         only be obliged to make such transfer if:

 

(aa)                    in the case of sub-paragraph (d)(i) or (d)(ii), at the time of such transfer the circumstance giving rise to the requirement for the increase or indemnification (if sub-paragraph (d)(i) applies), or the Borrower’s obligation to prepay any Loan (if sub-paragraph (d)(ii) applies), is continuing; or

 

(bb)                    in the case of sub-paragraph (d)(iii), the transfer is to be made no later than 30 days after the date on which the relevant Non-Consenting Event first arose in respect of that Lender, and such Non-Consenting Event is continuing at the time of such transfer.

 

(f)                             A Lender shall perform the procedures described in paragraph (e)(iv) above as soon as reasonably practicable following delivery of a notice referred to in paragraph (d) above and shall notify the Agent and the Borrower when it is satisfied that it has completed those checks.

 

(g)                            In the event that:

 

(i)                               the Borrower or the Agent (at the request of the Borrower) has requested the Lenders to consent to a waiver or amendment of any provisions of the Finance Documents;

 

(ii)                            the waiver or amendment in question requires the consent of all the Lenders; and

 

(iii)                         the Super Majority Lenders have consented to such waiver or amendment,

 

then any Lender who does not and continues not to consent to such waiver or amendment shall be deemed a Non-Consenting Lender and such event shall be a Non-Consenting Event.

 

7.6                                   Restrictions

 

(a)                           Any notice of cancellation or prepayment given by any Party under this Clause 7 shall be irrevocable and, unless a contrary indication appears in this agreement, shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment.

 

(b)                           Any prepayment under this agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs, without premium or penalty.

 

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(c)                            Unless a contrary indication appears in this agreement, any part of the Facility which is repaid or prepaid may be reborrowed in accordance with the terms of this agreement.

 

(d)                           The Borrower shall not repay or prepay all or any part of the Loans or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this agreement.

 

(e)                            No amount of the Total Commitments cancelled under this agreement may be subsequently reinstated.

 

(f)                             If the Agent receives a notice under this Clause 7 it shall promptly forward a copy of that notice to either the Borrower or the affected Lender, as appropriate.

 

(g)                            If all or part of any Lender’s participation in a Loan is repaid or prepaid and is not available for redrawing (other than by operation of Clause 4.2 (Further conditions precedent)), an amount of that Lender’s Commitment (equal to the amount of the participation which is repaid or prepaid) will be deemed to be cancelled on the date of repayment or prepayment.

 

7.7                                   Application of prepayments

 

Any prepayment of a Loan pursuant to Clause 7.2 (Change of Control) or Clause 7.4 (Voluntary prepayment of Loans) shall be applied pro rata to each Lender’s participation in that Loan.

 

8.                                          INTEREST

 

8.1                                   Calculation of interest

 

The rate of interest on each Loan for each Interest Period is the percentage rate per annum which is the aggregate of the applicable:

 

(a)                           Margin; and

 

(b)                           LIBOR.

 

8.2                                   Payment of interest

 

The Borrower shall pay accrued interest on that Loan on the last day of each Interest Period.

 

8.3                                   Default interest

 

(a)                           If the Borrower fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on such Unpaid Sum from the due date to the date of actual payment (both before and after judgment) at a rate which is, subject to paragraph (b) below, one (1) per cent. per annum higher than the rate which would have been payable if the Unpaid Sum had, during the period of non-payment, constituted a Loan in the currency of the Unpaid Sum for successive Interest Periods, each of a duration selected by the Agent (acting reasonably).  Any interest accruing under this Clause 8.3 shall be immediately payable by the Borrower on demand by the Agent.

 

(b)                           If any Unpaid Sum consists of all or part of a Loan which became due on a day which was not the last day of an Interest Period relating to that Loan:

 

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(i)                               the first Interest Period for that Unpaid Sum shall have a duration equal to the unexpired portion of the current Interest Period relating to that Loan; and

 

(ii)                            the rate of interest applying to the Unpaid Sum during that first Interest Period shall be one (1) per cent. per annum higher than the rate which would have applied if the Unpaid Sum had not become due.

 

(c)                            Default interest (if unpaid) arising on an Unpaid Sum will be compounded with the Unpaid Sum at the end of each Interest Period applicable to that Unpaid Sum but will remain immediately due and payable.

 

8.4                                   Notification of rates of interest

 

(a)                           The Agent shall promptly notify the relevant Lenders and the Borrower of the determination of a rate of interest under this agreement.

 

(b)                           The Agent shall promptly notify the Borrower of each Funding Rate relating to a Loan.

 

9.                                          INTEREST PERIODS

 

9.1                                   Selection of Interest Periods

 

(a)                           The Borrower may select an Interest Period for a Loan in the Utilisation Request for that Loan.

 

(b)                           Subject to this Clause 9, the Borrower may select an Interest Period of one, two, three or six Months or any other period agreed between the Borrower, the Agent and all the Lenders in relation to the relevant Loan.

 

(c)                            An Interest Period for a Loan shall not extend beyond the Final Repayment Date.

 

(d)                           A Loan has one Interest Period only which shall start on the Utilisation Date of that Loan.

 

9.2                                   Non-Business Days

 

If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).

 

10.                                   CHANGES TO THE CALCULATION OF INTEREST

 

10.1                            Unavailability of Screen Rate

 

(a)                           Interpolated Screen Rate:  If no Screen Rate is available for LIBOR for the Interest Period of a Loan, the applicable LIBOR shall be the Interpolated Screen Rate for a period equal in length to the Interest Period of that Loan.

 

(b)                           Reference Bank Rate:  If no Screen Rate is available for LIBOR for the Interest Period of a Loan and it is not possible to calculate the Interpolated Screen Rate, the applicable LIBOR shall be the Reference Bank Rate as of the Specified Time for that Loan and for a period equal in length to the Interest Period of that Loan.

 

(c)                            Cost of funds:  If paragraph (b) above applies but no Reference Bank Rate is available for the relevant Interest Period there shall be no LIBOR for that Loan and Clause 10.4 (Cost of funds) shall apply to that Loan for that Interest Period.

 

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10.2                            Calculation of Reference Bank Rate

 

(a)                           Subject to paragraph (b) below, if LIBOR is to be determined on the basis of a Reference Bank Rate but a Reference Bank does not supply a quotation by the Specified Time, the Reference Bank Rate shall be calculated on the basis of the quotations of the remaining Reference Banks.

 

(b)                           If at or about noon (London time) on the Quotation Day, none or only one of the Reference Banks supplies a quotation, there shall be no Reference Bank Rate for the relevant Interest Period.

 

10.3                            Market disruption

 

If before 5 pm in Hong Kong on the Business Day immediately following the Quotation Day for the relevant Interest Period, the Agent receives notifications from a Lender or Lenders (whose participations in a Loan exceed 35 per cent. of that Loan) that the cost to it of funding its participation in that Loan from whatever source it may reasonably select would be in excess of LIBOR then Clause 10.4 (Cost of funds) shall apply to that Loan for the relevant Interest Period.

 

10.4                            Cost of funds

 

(a)                           If this Clause 10.4 applies, the rate of interest on each Lender’s share of the relevant Loan for the relevant Interest Period shall be the percentage rate per annum which is the sum of:

 

(i)                               the Margin; and

 

(ii)                            the rate notified to the Agent by that Lender as soon as practicable and in any event within five Business Days before interest is due to be paid in respect of that Interest Period, to be that which expresses as a percentage rate per annum the cost to the relevant Lender of funding its participation in that Loan from whatever source it may reasonably select.

 

(b)                           If this Clause 10.4 applies and the Agent or the Borrower so requires, the Agent and the Borrower shall enter into negotiations (for a period of not more than 30 days) with a view to agreeing a substitute basis for determining the rate of interest.

 

(c)                            Any alternative basis agreed pursuant to paragraph (b) above shall, with the prior consent of all the Lenders and the Borrower, be binding on all Parties.

 

10.5                            Break Costs

 

(a)                           The Borrower shall, within ten Business Days of demand by a Finance Party, pay to that Finance Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being paid by the Borrower on a day other than the last day of an Interest Period for that Loan or Unpaid Sum.

 

(b)                           Each Lender shall, as soon as reasonably practicable after a demand by the Agent or the Borrower, provide a certificate to the Borrower confirming the amount of its Break Costs for any Interest Period in which they accrue.

 

11.                                   FEES

 

11.1                            Commitment fee

 

(a)                           The Borrower shall pay to the Agent (for the account of each Lender) a commitment fee in US dollars computed and accruing on a daily basis at the rate of 

 

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0.20 per cent. per annum on the undrawn and uncancelled amount of each Lender's Commitment on each day for the period on and from 30 days after the date of this agreement to and including the last day of the Availability Period, as at close of business on that day (or, if any such day shall not be a Business Day, at such close of business on the immediately preceding Business Day).

 

(b)                           The accrued commitment fee is payable in arrears:

 

(i)                               on the last day of each successive period of three Months which ends during the relevant Availability Period;

 

(ii)                            on the last day of the relevant Availability Period; and

 

(iii)                         if a Lender’s Commitment is reduced to zero before the last day of the relevant Availability Period, on the day on which such reduction to zero becomes effective.

 

11.2                            Upfront fee

 

The Borrower shall pay to the Agent (for the account of each MLAB) an upfront fee in the amount and at the times agreed in a Fee Letter.

 

11.3                            Agency fee

 

The Borrower shall pay to the Agent (for its own account) an agency fee in the amount and at the times agreed in a Fee Letter.

 

11.4                            Deduction of fees

 

Payment of the fees in Clause 11.2 (Upfront fee) and/or the first instalment of any fee payable to the Agent under Clause 11.3 (Agency fee) may, at the election of the Agent, be made out of the proceeds of the first Loan and the Agent is hereby irrevocably authorised to deduct the amount of such fees and apply the same towards payment of such fees on behalf of the Borrower.

 

12.                                   TAX GROSS-UP AND INDEMNITIES

 

12.1                            Tax definitions

 

In this Clause 12:

 

Tax Credit means a credit against, relief or remission for, or repayment of any Tax.

 

Tax Deduction means a deduction or withholding for or on account of Tax from a payment under a Finance Document, other than a FATCA Deduction.

 

Tax Payment means an increased payment made by the Borrower to a Finance Party under Clause 12.2 (Tax gross-up) or a payment under Clause 12.3 (Tax indemnity).

 

Unless a contrary indication appears, in this Clause 12 a reference to determines or determined means a determination made in the absolute discretion of the person making the determination.

 

12.2                            Tax gross-up

 

(a)                           All payments to be made by the Borrower to any Finance Party under the Finance Documents shall be made free and clear of and without any Tax Deduction unless the Borrower is required to make a Tax Deduction, in which case except in relation to a Tax described in paragraphs (a)(i) — (iv) inclusive of Clause 12.3 (Tax 

 

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Indemnity) the sum payable by the Borrower (in respect of which such Tax Deduction is required to be made) shall be increased to the extent necessary to ensure that such Finance Party receives a sum net of any deduction or withholding equal to the sum which it would have received had no such Tax Deduction been made or required to be made.

 

(b)                           The Borrower shall promptly upon becoming aware that it must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Agent accordingly.  Similarly, a Lender shall notify the Agent on becoming so aware in respect of a payment payable by the Borrower to that Lender.  If the Agent receives such notification from a Lender it shall notify the Borrower.

 

(c)                            If the Borrower is required to make a Tax Deduction, the Borrower shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law.

 

(d)                           Within 30 days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Borrower shall deliver to the Agent for the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.

 

12.3                            Tax indemnity

 

(a)                           Without prejudice to Clause 12.2 (Tax gross-up), if any Finance Party is required to make any payment of or on account of Tax on or in relation to any sum received or receivable under the Finance Documents (including any sum deemed for the purposes of Tax to be received or receivable by such Finance Party whether or not actually received or receivable) or if any liability in respect of any such payment is asserted, imposed, levied or assessed against any Finance Party, the Borrower shall, within ten Business Days of demand of the Agent, promptly indemnify the Finance Party which suffers a loss or liability as a result against such payment or liability, together with any interest, penalties, costs and expenses payable or incurred in connection therewith, provided that this Clause 12.3 shall not apply to:

 

(i)                               any Tax imposed on and calculated by reference to the net income actually received or receivable by such Finance Party (but, for the avoidance of doubt, not including any sum deemed for the purpose of Tax to be received or receivable by such Finance Party but not actually receivable) by the jurisdiction in which such Finance Party is incorporated;

 

(ii)                            any Tax imposed on and calculated by reference to the net income of the Facility Office of such Finance Party actually received or receivable by such Finance Party (but, for the avoidance of doubt, not including any sum deemed for the purposes of Tax to be received or receivable by such Finance Party but not actually receivable) by the jurisdiction in which its Facility Office is located;

 

(iii)                         a FATCA Deduction required to be made by a Party; or

 

(iv)                        any Finance Party which has actually been compensated by an additional payment under Clause 12.2 (Tax gross-up).

 

(b)                           A Finance Party intending to make a claim under paragraph (a) above shall notify the Agent of the event giving rise to the claim, whereupon the Agent shall notify the Borrower thereof.

 

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(c)                            A Finance Party shall, on receiving a payment from the Borrower under this Clause 12.3, notify the Agent.

 

12.4                            Tax credit

 

If the Borrower makes a Tax Payment and the relevant Finance Party determines that:

 

(a)                           a Tax Credit is attributable to an increased payment of which that Tax Payment forms part, to that Tax Payment or to a Tax Deduction in consequence of which that Tax Payment was required; and

 

(b)                           that Finance Party has obtained and utilised that Tax Credit,

 

the Finance Party shall pay an amount to the Borrower which that Finance Party determines will leave it (after that payment) in the same after-Tax position as it would have been in had the Tax Payment not been required to be made by the Borrower.

 

12.5                            Stamp taxes

 

The Borrower shall:

 

(a)                           pay all stamp duty, registration and other similar Taxes payable in respect of any Finance Document; and

 

(b)                           within ten Business Days of demand, indemnify each Finance Party against any cost, loss or liability that Finance Party incurs in relation to any stamp duty, registration or other similar Tax paid or payable in respect of any Finance Document.

 

12.6                            Indirect tax

 

(a)                           All amounts set out or expressed in a Finance Document to be payable by any Party to a Finance Party shall be deemed to be exclusive of any Indirect Tax.  If any Indirect Tax is chargeable on any supply made by any Finance Party to any Party in connection with a Finance Document, that Party shall pay to the Finance Party (in addition to and at the same time as paying the consideration) an amount equal to the amount of the Indirect Tax.

 

(b)                           Where a Finance Document requires any Party to reimburse a Finance Party for any costs or expenses, that Party shall also at the same time pay and indemnify the Finance Party against all Indirect Tax incurred by that Finance Party in respect of the costs or expenses to the extent that the Finance Party reasonably determines that it is not entitled to credit or repayment in respect of the Indirect Tax.

 

12.7                            FATCA information

 

(a)                           Subject to paragraph (c) below, each Party shall, within 10 Business Days of a reasonable request by another Party:

 

(i)                               confirm to that other Party whether it is:

 

(A)                         a FATCA Exempt Party; or

 

(B)                         not a FATCA Exempt Party;

 

(ii)                            supply to that other Party such forms, documentation and other information relating to its status under FATCA as that other Party reasonably requests for the purposes of that other Party’s compliance with FATCA; and

 

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(iii)                         supply to that other Party such forms, documentation and other information relating to its status as that other Party reasonably requests for the purposes of that other Party’s compliance with any other law, regulation, or exchange of information regime.

 

(b)                           If a Party confirms to another Party pursuant to paragraph (a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not or has ceased to be a FATCA Exempt Party, that Party shall notify that other Party reasonably promptly.

 

(c)                            Paragraph (a) above shall not oblige any Finance Party to do anything, and paragraph (a)(iii) above shall not oblige any other Party to do anything, which would or might in its reasonable opinion constitute a breach of:

 

(i)                               any law or regulation;

 

(ii)                            any fiduciary duty; or

 

(iii)                         any duty of confidentiality.

 

(d)                           If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation or other information requested in accordance with paragraph (a)(i) or (a)(ii) above (including, for the avoidance of doubt, where paragraph (c) above applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them) as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation or other information.

 

(e)                            If the Borrower is a US Tax Obligor or the Agent reasonably believes that its obligations under FATCA or any other applicable law or regulation require it, each Lender shall, within 10 Business Days of:

 

(i)                               where the Borrower is a US Tax Obligor and the relevant Lender is an Original Lender, the date of this agreement;

 

(ii)                            where the Borrower is a US Tax Obligor on a Transfer Date and the relevant Lender is a New Lender, the relevant Transfer Date;

 

(iii)                         the date a new US Tax Obligor accedes as a borrower; or

 

(iv)                        where the Borrower is not a US Tax Obligor, the date of a request from the Agent,

 

supply to the Agent:

 

(A)                         a withholding certificate on Form W-8, Form W-9 or any other relevant form; or

 

(B)                         any withholding statement or other document, authorisation or waiver as the Agent may require to certify or establish the status of such Lender under FATCA or that other law or regulation.

 

(f)                             The Agent shall provide any withholding certificate, withholding statement, document, authorisation or waiver it receives from a Lender pursuant to paragraph (e) above to the Borrower.

 

(g)                            If any withholding certificate, withholding statement, document, authorisation or waiver provided to the Agent by a Lender pursuant to paragraph (e) above is or becomes materially inaccurate or incomplete, that Lender shall promptly update it 

 

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and provide such updated withholding certificate, withholding statement, document, authorisation or waiver to the Agent unless it is unlawful for the Lender to do so (in which case the Lender shall promptly notify the Agent).  The Agent shall provide any such updated withholding certificate, withholding statement, document, authorisation or waiver to the Borrower.

 

(h)                           The Agent may rely on any withholding certificate, withholding statement, document, authorisation or waiver it receives from a Lender pursuant to paragraph (e) or (g) above without further verification.  The Agent shall not be liable for any action taken by it under or in connection with paragraph (e), (f) or (g) above.

 

12.8                            FATCA Deduction

 

(a)                           Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.

 

(b)                           Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction), notify the Party to whom it is making the payment and, in addition, shall notify the Borrower and the Agent and the Agent shall notify the other Finance Parties.

 

13.                                   INCREASED COSTS

 

13.1                            Increased costs

 

(a)                           Subject to Clause 13.3 (Exceptions) the Borrower shall, within ten Business Days of a demand by the Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of:

 

(i)                               the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation after the date of this agreement; or

 

(ii)                            compliance with any law or regulation made, enacted, issued or put into effect after the date of this agreement; or

 

(iii)                         the implementation or application of, or compliance with, Basel III or CRD IV or any law or regulation that implements or applies Basel III or CRD IV.

 

The terms law and regulation in this paragraph (a) shall include any law or regulation concerning capital adequacy, prudential limits, liquidity, reserve assets or Tax.

 

(b)                           In this agreement:

 

(i)                               “Basel II” means the “International Convergence of Capital Measurement and Capital Standards, a Revised Framework” published by the Basel Committee on Banking Supervision in June 2004 in the form existing on the date of this Agreement or, if later, the date it became party to this Agreement (but excluding any amendment arising out of Basel III);

 

(ii)                            Basel III means:

 

(A)                         the agreements on capital requirements, a leverage ratio and liquidity standards contained in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III: International 

 

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framework for liquidity risk measurement, standards and monitoring” and “Guidance for national authorities operating the countercyclical capital buffer” published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or restated;

 

(B)                        the rules for global systemically important banks contained in “Global systemically important banks: assessment methodology and the additional loss absorbency requirement — Rules text” published by the Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated;

 

(C)                         any further guidance or standards published by the Basel Committee on Banking Supervision relating to “Basel III”;

 

(iii)                         CRD IV means:

 

(A)                         Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms; and

 

(B)                         Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC;

 

(iv)                        Increased Costs means:

 

(A)                         a reduction in the rate of return from the Facility or on a Finance Party’s (or its Affiliate’s) overall capital (including as a result of any reduction in the rate of return on capital brought about by more capital being required to be allocated by such Finance Party);

 

(B)                         an additional or increased cost; or

 

(C)                         a reduction of any amount due and payable under any Finance Document,

 

which is incurred or suffered by a Finance Party or any of its Affiliates to the extent that it is attributable to the undertaking, funding or performance by such Finance Party of any of its obligations under any Finance Document or any participation of such Finance Party in any Loan or Unpaid Sum.

 

13.2                            Increased cost claims

 

(a)                           A Finance Party (other than the Agent) intending to make a claim pursuant to Clause 13.1 (Increased costs) shall notify the Agent of the event giving rise to the claim, following which the Agent shall promptly notify the Borrower.

 

(b)                           Each Finance Party (other than the Agent) shall, as soon as practicable after a demand by the Agent, provide a certificate confirming the amount of its Increased Costs.

 

(c)                            A claim pursuant to Clause 13 (Increased costs) must contain reasonable details of the event giving rise to the claim and the basis of computation of the claim.

 

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13.3                            Exceptions

 

Clause 13.1 (Increased costs) does not apply to the extent any Increased Cost is:

 

(a)                           attributable to a Tax Deduction required by law to be made by the Borrower and that is already compensated for by Clause 12.2 (Tax gross-up);

 

(b)                           attributable to a FATCA Deduction required to be made by a Party;

 

(c)                            compensated for by Clause 12.3 (Tax indemnity) (or would have been compensated for under Clause 12.3 (Tax indemnity) but was not so compensated solely because any of the exclusions in paragraph (a) of Clause 12.3 (Tax indemnity) applied);

 

(d)                           attributable to the wilful breach by the relevant Finance Party or its Affiliates of any law, regulation or Finance Document; or

 

(e)                            attributable to the implementation or application of or compliance with Basel II or any other law or regulation which implements Basel II (whether such implementation, application or compliance is by a government, regulator, Finance Party or any of its Affiliates).

 

14.                                   MITIGATION BY THE LENDERS

 

14.1                            Mitigation

 

(a)                           Each Finance Party shall, in consultation with the Borrower, take all reasonable steps to mitigate any circumstances which arise and which would result in any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 7.1 (Illegality), Clause 12 (Tax Gross-up and Indemnities) or Clause 13 (Increased Costs), including, in relation to any circumstances which arise following the date of this agreement, transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office.

 

(b)                           Paragraph (a) above does not in any way limit the obligations of the Borrower under the Finance Documents.

 

14.2                            Limitation of liability

 

(a)                           The Borrower shall promptly indemnify each Finance Party, and in any event within ten Business Days of demand, for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause  14.1 (Mitigation).

 

(b)                           A Finance Party is not obliged to take any steps under Clause 14.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.

 

14.3                            Conduct of business by the Finance Parties

 

No provision of this agreement will:

 

(a)                           interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;

 

(b)                           oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim;

 

(c)                            oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax; or

 

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(d)                           oblige any Finance Party to do or omit to do anything if it would, or might in its reasonable opinion, constitute a breach of any applicable law or regulation or a breach of fiduciary duty or duty of confidentiality.

 

15.                                   OTHER INDEMNITIES

 

15.1                            Currency indemnity

 

(a)                           If any sum due from the Borrower under the Finance Documents (a Sum), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the First Currency) in which that Sum is payable into another currency (the Second Currency) for the purpose of:

 

(i)                               making or filing a claim or proof against the Borrower; or

 

(ii)                            obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings,

 

the Borrower shall as an independent obligation, within ten Business Days of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum.

 

(b)                           The Borrower waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to be payable.

 

15.2                            Other indemnities

 

The Borrower shall, within ten Business Days of demand, indemnify each Finance Party against any cost, loss or liability incurred by that Finance Party as a result of:

 

(a)                           the occurrence of any Event of Default;

 

(b)                           the Information Memorandum or any other information produced or approved by the Borrower being or being alleged to be misleading and/or deceptive in any respect;

 

(c)                            any enquiry, investigation, subpoena (or similar order) or legal or arbitral proceedings with respect to the Borrower or with respect to any transactions contemplated or financed under any Finance Document;

 

(d)                           a failure by the Borrower to pay any amount due under a Finance Document on its due date and in the relevant currency, including any cost, loss or liability arising as a result of Clause 24 (Sharing among the Finance Parties);

 

(e)                            funding, or making arrangements to fund, its participation in a Utilisation requested by the Borrower in a Utilisation Request but not made by reason of the operation of any one or more of the provisions of this agreement (other than by reason of default in the performance of their obligations under the Finance Documents to which such Finance Party is party or negligence by that Finance Party alone);

 

(f)                             a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by the Borrower.

 

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15.3                            Indemnity to the Agent

 

The Borrower shall promptly (and in any event within ten Business Days of demand) indemnify the Agent against any cost, loss or liability incurred by the Agent (acting reasonably) as a result of:

 

(a)                           investigating any event which it reasonably believes is a Default;

 

(b)                           acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised; or

 

(c)                            instructing lawyers, accountants, tax advisers, surveyors or other professional advisers or experts as permitted under this agreement.

 

16.                                   COSTS AND EXPENSES

 

16.1                            Transaction expenses

 

The Borrower shall, within fifteen Business Days of demand, pay the Administrative Parties the amount of all out-of-pocket costs and expenses (including legal fees subject to any agreed cap but excluding travel expenses) reasonably incurred by any of them in connection with the negotiation, preparation, printing, execution and syndication of:

 

(a)                           this agreement and any other documents referred to in this agreement; and

 

(b)                           any other Finance Documents executed after the date of this agreement.

 

16.2                            Amendment costs

 

If:

 

(a)                           the Borrower requests an amendment, waiver or consent; or

 

(b)                           an amendment is required pursuant to Clause 25.10 (Change of currency),

 

the Borrower shall, within ten Business Days of demand, reimburse the Agent for the amount of all out-of-pocket costs and expenses (including legal fees subject to any agreed cap) reasonably incurred by the Agent in responding to, evaluating, negotiating or complying with that request or requirement.

 

16.3                            Enforcement costs

 

The Borrower shall, within ten Business Days of demand, pay to each Finance Party the amount of all out-of-pocket costs and expenses (including legal fees) incurred by that Finance Party in connection with the enforcement of, or the preservation of any rights under, any Finance Document.

 

17.                                   REPRESENTATIONS

 

The Borrower makes the representations and warranties set out in this Clause 17 to each Finance Party on the date of this agreement.

 

17.1                            Status

 

(a)                           It is a company, duly incorporated, validly existing and in good standing under the laws of the Cayman Islands.

 

(b)                           It and each of its Material Subsidiaries has the power to own its assets and carry on its business as it is being conducted.

 

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(c)                            It is acting as principal for its own account and not as agent or trustee in any capacity on behalf of any person in relation to the Finance Documents.

 

17.2                            Binding obligations

 

The obligations expressed to be assumed by it in each Finance Document are, subject to the Legal Reservations, legal, valid, binding and enforceable obligations.

 

17.3                            Non-conflict with other obligations

 

The entry into and performance by it of, and the transactions contemplated by, the Finance Documents do not and will not conflict with:

 

(a)                           subject to the Legal Reservations, any law or regulation applicable to it;

 

(b)                           its constitutional documents; or

 

(c)                            any agreement or instrument binding upon it or any of its Subsidiaries or any of its or any of its Subsidiaries’ assets where such conflict has or would reasonably expected to have a Material Adverse Effect.

 

17.4                            Power and authority

 

(a)                           It has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Finance Documents and the transactions contemplated by the Finance Documents.

 

(b)                           No limit on its powers will be exceeded as a result of the borrowing contemplated in the Finance Documents.

 

17.5                            Validity and admissibility in evidence

 

All Authorisations required:

 

(a)                           to enable it lawfully to enter into, exercise its rights and comply with its obligations in the Finance Documents;

 

(b)                           subject to the Legal Reservations, to make the Finance Documents admissible in evidence in its jurisdiction of incorporation; and

 

(c)                            for it and its Subsidiaries to carry on their respective business, and which are material where failure to obtain or effect those Authorisations would reasonably be expected to have a Material Adverse Effect,

 

have been obtained or effected and are in full force and effect.

 

17.6                            Governing law and enforcement

 

Subject to the Legal Reservations:

 

(a)                           the choice of Hong Kong law as the governing law of the Finance Documents will be recognised and enforced in its jurisdiction of incorporation; and

 

(b)                           any judgment obtained in Hong Kong in relation to any Finance Document will be recognised and enforced in its jurisdiction of incorporation.

 

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17.7                            Deduction of Tax

 

As at the date of this agreement, it is not required under the law applicable where it is incorporated or resident or at the address specified in this agreement to make any Tax Deduction from any payment it may make under any Finance Document.

 

17.8                            No filing or stamp taxes

 

Under the law of its jurisdiction of incorporation it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration or similar tax be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents, except that:

 

(a)                           Cayman Islands stamp duty will be payable on a Finance Document if that Finance Document is executed in, or an original is brought into, or produced before a court of, the Cayman Islands; and

 

(b)                           (if required) filing with (and reporting to) NDRC in respect of the Facility as foreign debt, which shall be effected when so required.

 

17.9                            No default

 

(a)                           So far as it is aware but after making due enquiry, no Event of Default is continuing or might reasonably be expected to result from the making of any Utilisation which has not been notified to the Agent.

 

(b)                           So far as it is aware but after making due enquiry, no other event or circumstance is outstanding which constitutes a default under any other agreement or instrument which is binding on it or any of its Material Subsidiaries or to which its (or any of its Material Subsidiaries’) assets are subject to an extent or in a manner which has or would reasonably be expected to have a Material Adverse Effect.

 

17.10                     No misleading information

 

(a)                           Any written factual information (other than information of a general economic nature) (the “Information”) contained in or provided by or on behalf of the Borrower for the purposes of the Information Memorandum was true and accurate in all material respects as at the date it was provided or as at the date (if any) at which it is stated.

 

(b)                           No event or circumstances has occurred or been omitted from the Information Memorandum and no material Information has been given or withheld that results in the Information contained in the Information Memorandum being untrue or misleading in any material respect.

 

(c)                            All written (including by way of electronic mail or other electronic means) information (other than the Information Memorandum) supplied by or on behalf of the Borrower in connection with the Finance Documents was true, complete and accurate in all material respects as at the date it was given or (if any) as at the date it is stated and is not misleading in any material respect.

 

17.11                     Financial statements

 

(a)                           Its financial statements most recently supplied to the Agent (which, at the date of this agreement, are its Original Financial Statements) were prepared in accordance with GAAP consistently applied save to the extent expressly disclosed in such financial statements.

 

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(b)                           Its financial statements most recently supplied to the Agent (which, at the date of this agreement, are its Original Financial Statements) give a true and fair view of (if audited) or fairly represent (if unaudited) the consolidated financial condition and operations for the period to which the financial statements relate, save to the extent expressly disclosed in such financial statements.

 

(c)                            At the date of this agreement, there has been no material adverse change in the business or consolidated financial condition of the Group (taken as a whole) since 31 December 2017.

 

17.12                     Pari passu ranking

 

Its payment obligations under the Finance Documents rank at least pari passu with the claims of all of its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.

 

17.13                     No proceedings pending or threatened

 

No litigation, arbitration, investigation or administrative proceedings of or before any court, arbitral body or agency which is reasonably likely to be adversely determined and if so determined, would reasonably be expected to have a Material Adverse Effect have (to the best of its knowledge and belief) been started or threatened in writing, or are pending, against it or any of its Subsidiaries.

 

17.14                     Authorised signatures

 

Any person specified as its authorised signatory under Schedule 2 (Conditions Precedent) or paragraph (d) of Clause 18.4 (Information: miscellaneous) (in each case, to the extent not replaced as notified by the Borrower pursuant to paragraph (d) of Clause 18.4 (Information:  miscellaneous)) is authorised to sign Utilisation Requests and other notices on its behalf.

 

17.15                     Sanctions, anti-terrorism, anti-money laundering and anti-corruption

 

(a)                           None of the Borrower, any of its Subsidiaries, any director or officer, or any employee, agent, or affiliate, of the Borrower or any of its Subsidiaries or, to its knowledge, any agent of, or any person acting on behalf of, any of the foregoing:

 

(i)                               is a Restricted Party; or

 

(ii)                            has received notice of or is aware of any claim, action, suit, proceeding or investigation against it with respect to Sanctions by any Sanctions Authority.

 

(b)                           No member of the Group or any director, officer or employee of any member of the Group or, to its knowledge, any agent of any member of the Group is in violation of any applicable Sanctions.

 

(c)                            No member of the Group or any director, officer or employee of any member of the Group or, to its knowledge, any person acting on behalf of any member of the Group has received, funds or other property from a Restricted Party in violation of any applicable Sanctions or has conducted, any activities or business dealings, directly or indirectly, with or for the benefit of a Restricted Party in violation of any applicable Sanctions.

 

(d)                           None of the Borrower or any other member of the Group has any business operations or other dealings with any Restricted Party or in any Sanctioned Jurisdiction.

 

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(e)                            No member of the Group or any director, officer or employee of any member of the Group or, to its knowledge, any person acting on behalf of any member of the Group is engaging or has engaged directly or indirectly, in any transaction or conduct that would reasonably be expected to result in it becoming a Restricted Party, or which evades or avoids any applicable prohibitions or restrictions set forth in any applicable Sanctions.

 

(f)                             No member of the Group or any director, officer or employee of any member of the Group or, to its knowledge, any affiliate, agent or representative of, or any person acting on behalf of any member of the Group:

 

(i)                               has taken any action, directly or indirectly, that would result in a violation by such persons of any Anti-Bribery and Corruption Laws;

 

(ii)                            has directly or indirectly paid, given or offered or promised to pay or give, or authorised the payment or giving of, directly or indirectly, any unlawful payment or improper transfer of value within the meaning of the FCPA or any other Anti-Bribery and Corruption Laws;

 

(iii)                         has directly or indirectly used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political office or activity or made any direct or indirect unlawful payment or improper transfer of value to any public official or any company employee from corporate funds; or

 

(iv)                        has been subject to any action, suit, proceeding, arbitration, litigation, regulatory or criminal investigation with regard to any actual or alleged unlawful payment, improper transfer of value or violation in any way of the FCPA or any other Anti-Bribery and Corruption Laws.

 

(g)                            No member of the Group or any director, officer or employee of any member of the Group or, to its knowledge, any person acting on behalf of, any member of the Group is in violation of any Anti-Money Laundering Laws or Anti-Terrorism Laws.

 

(h)                           The Borrower and, to the knowledge of the Borrower, its affiliates have instituted and maintained systems, controls, policies, procedures and other arrangements designed to:

 

(i)                               promote and ensure, and which are reasonably expected to continue to ensure, compliance by the Group with all applicable Sanctions, Anti-Bribery and Corruption Laws, Anti-Money Laundering Laws and Anti-Terrorism Laws; and

 

(ii)                            detect incidences of bribery and corruption.

 

(i)                               No action, suit, proceeding, arbitration, litigation, regulatory or criminal investigation involving the Borrower, any of its Subsidiaries, any of their Affiliates or any of their respective directors, officers, agents or employees, in each case, with respect to any Anti-Money Laundering Laws or Anti-Terrorism Laws is pending or, to its knowledge, threatened.

 

(j)                              The operations of the Borrower, its Subsidiaries and their Affiliates are and have been conducted at all times in compliance with applicable Anti-Money Laundering Laws and Anti-Bribery and Corruption Laws.

 

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17.16                     List of Material Subsidiaries

 

The list of Material Subsidiaries delivered to the Agent pursuant to Clause 4.1 (Initial conditions precedent) is true, complete and accurate as at the end of the financial year of the Borrower most recently ended prior to the date of this agreement.

 

17.17                     Repetition

 

The Repeating Representations are deemed to be made by the Borrower by reference to the facts and circumstances then existing on:

 

(a)                           the date of each Utilisation Request;

 

(b)                           each Utilisation Date;

 

(c)                            the first day of each Interest Period relating to any Loan.

 

18.                                   INFORMATION UNDERTAKINGS

 

The undertakings in this Clause 18 remain in force from the date of this agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

 

18.1                            Financial statements

 

The Borrower shall supply to the Agent in sufficient copies for all the Lenders:

 

(a)                           as soon as the same become available, but in any event within 150 days after the end of each of its financial years (or such other longer period for the release of such financial statements as permitted under the requirements of the listing rules or other regulations of NASDAQ as applicable to the Borrower), its audited consolidated financial statements for that financial year, audited by an independent firm of certified public accountants (which shall be one of the Auditors); and

 

(b)                           as soon as the same become available, but in any event within 120 days (or such longer period for the release of such financial statements as permitted under the requirements of the listing rules or other regulations of NASDAQ as applicable to the Borrower) after the end of each of its Financial Quarters (other than the fourth Financial Quarter of each Financial Year), the unaudited consolidated financial statements of the Borrower for that Financial Quarter,

 

provided that, in the case of any consolidated financial statements of the Borrower to be delivered pursuant to this Clause 18.1, such financial statements shall be deemed to be so delivered upon being posted onto any electronic website of (i) the U.S. Securities and Exchange Commission, (ii) NASDAQ and/or (iii) the Borrower that is accessible to the public.

 

18.2                            Compliance Certificate

 

(a)                           The Borrower shall supply to the Agent, with each set of financial statements delivered pursuant to Clause 18.1 (Financial statements), a Compliance Certificate:

 

(i)                               (in respect of any Financial Quarter ending 30 June or at the end of each of its Financial Year) setting out (in reasonable detail) computations as to compliance with Clause 19 (Financial Covenants) as at the date as at which (and in respect of the Relevant Period ending on the date at which) those financial statements were prepared;

 

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(ii)                            confirming that no Default has occurred and is continuing or, if a Default is continuing, specifying the nature of such Default and the steps being taken to remedy such Default;

 

(iii)                         confirming that such financial statements (in the case of any such financial statements which are audited) gives a true and fair view of or (in the case of any such financial statements which are unaudited) fairly represents the consolidated financial condition and operations of the Group as at the end of and during the applicable period to which those financial statements relate; and

 

(iv)                        (in the case of each set of financial statements delivered under paragraph (a) of Clause 18.1 (Financial statements)) setting out an up-to-date list of Material Subsidiaries as at the end of the financial year to which the financial statements relate.

 

(b)                           Each Compliance Certificate delivered pursuant to paragraph (a) above shall be signed by an authorised signatory of the Borrower.

 

18.3                            Requirements as to financial statements

 

(a)                           Each set of financial statements delivered (or deemed to be delivered) by the Borrower pursuant to Clause 18.1 (Financial statements) shall be certified by an authorised signatory of the Borrower as giving a true and fair view of (in the case of any such financial statements which are audited) or fairly representing (in the case of any such financial statements which are unaudited) the consolidated financial condition and operations of the Group as at the end of and during the applicable period to which those financial statements relate.

 

(b)                           The Borrower shall procure that each set of financial statements delivered pursuant to Clause 18.1 (Financial statements) is prepared using GAAP.

 

(c)                            The Borrower shall procure that each set of financial statements delivered (or deemed to be delivered) pursuant to Clause 18.1 (Financial statements) is prepared using GAAP, accounting practices and financial reference periods consistent with those applied in the preparation of the Original Financial Statements unless, in relation to any set of financial statements, it notifies the Agent that there has been a change in GAAP, the accounting practices or reference periods and the Borrower or (if any auditors’ report or opinion is required in connection with such change in order to comply with the applicable law, regulation or rule, or any applicable stock exchange requirement) the auditors of the Borrower (which shall be one of the Auditors) shall deliver to the Agent:

 

(i)                               a description of any change necessary for those financial statements to reflect the GAAP, accounting practices and reference periods upon which the Original Financial Statements were prepared; and

 

(ii)                            sufficient information, in form and substance as may be reasonably required by the Agent, to enable the Lenders:

 

(A)                         to determine whether Clause 19 (Financial Covenants) has been complied with;

 

(B)                         (in the case of each set of financial statements delivered under Clause 18.1(a) (Financial statements)) to determine which members of the Group are Material Subsidiaries; and

 

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(C)                         to make an accurate comparison between the financial position indicated in those financial statements and the Original Financial Statements.

 

18.4                            Information: miscellaneous

 

The Borrower shall supply to the Agent (in sufficient copies for all the Finance Parties, if the Agent so requests):

 

(a)                           all documents dispatched by the Borrower to its shareholders (or any class of them) or its creditors (or any class of them) generally at the same time as they are despatched to the extent such documents relate to any event or circumstance in relation to the Borrower or a Material Subsidiary falling within Clause 21.5 (Cross default), Clause 21.6 (Insolvency); 21.7 (Insolvency proceedings) or Clause 21.8 (Creditors’ process);

 

(b)                           promptly upon becoming aware of them, the details of any litigation, investigation, arbitration or administrative proceedings which are current, (or to the best of its knowledge) threatened in writing or pending against the Borrower or any member of the Group, and which, if adversely determined would reasonably be expected to have a Material Adverse Effect;

 

(c)                            promptly:

 

(i)                               such further information regarding the financial condition, business and operations of the Borrower and any Material Subsidiary as any Finance Party (through the Agent) may reasonably request, except to the extent that:

 

(A)                         the provision of such information to the Agent would result in any member of the Group in breach of any applicable law, regulation or rule, any applicable stock exchange requirement or duty of confidentiality, provided that such duty of confidentiality did not arise under any agreement or arrangement that is entered into by a member of the Group solely for the purpose of circumventing any requirement or request under this paragraph (c); or

 

(B)                         such information is (as reasonably determined by the Borrower) of a commercially sensitive nature; or

 

(ii)                            such further information regarding the financial condition, business and operations relating to the Borrower or any Material Subsidiary to the extent that any Finance Party has delivered evidence to the Borrower in form and substance satisfactory to the Borrower (acting reasonably) that such information is required to be disclosed to that Finance Party (or any Affiliate thereof) in order for that Finance Party to comply with any laws and/or regulations (including any rules or requirements of any applicable court or tribunal, securities exchange or supervisory, governmental, quasi-governmental, administrative, regulatory or self-regulatory body or authority) applicable to that Finance Party or any Affiliate thereof;

 

(d)                           promptly, notice of any change in authorised signatories of the Borrower signed by a director, company secretary or an authorised signatory (other than any authorised signatory which has been replaced or is to be replaced pursuant to a notice given by the Borrower under this paragraph (d)) of the Borrower accompanied by specimen signatures of any new authorised signatories of the Borrower;

 

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(e)                            promptly upon becoming aware of them, an updated list of Material Subsidiaries if there is any change from the list of Material Subsidiaries delivered to the Agent pursuant to Clause 4.1 (Initial conditions precedent) and from time to time; and

 

(f)                             promptly, such information as the Agent may from time to time reasonably require for the performance of its obligations or the exercise of its rights under the Finance Documents.

 

18.5                            Notification of default

 

(a)                           The Borrower shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence.

 

(b)                           Promptly upon a request by the Agent, the Borrower shall supply to the Agent a certificate signed by an authorised signatory of the Borrower on its behalf certifying that no Default is continuing (or if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy it).

 

18.6                            Use of Deal Site

 

(a)                           All notices, requests, demands, consents, approvals, agreements or other communications by the Agent under or in respect of this agreement may be given by publication on the Deal Site.  Such communication shall include notices for notification for Lenders’ participation in any utilisation and for rates of interest.

 

(b)                           Communications posted on the Deal Site will be effective on the earlier of:

 

(i)                               one Business Day after such communication is posted on the Deal Site; and

 

(ii)                            receipt by the Agent of acknowledgement from the Deal Site that such communication has been posted.

 

(c)                            The Borrower consents to the inclusion of its logo (if applicable) on the Deal Site.

 

(d)                           In this clause 18.6, Deal Site means “Debtdomain” or any other electronic website designated by the Borrower and the Agent.

 

(e)                            The Agent will promptly on request provide access to the Deal Site to one or more representatives of each of the other Parties.

 

(f)                             Email contact details may be for individuals or “group” addresses. However in either case, Parties must ensure that all persons to whom they give access can properly receive the information available on the Deal Site, including under the relevant information disclosure clause.

 

(g)                            If the Deal Site is not available for any reason, promptly following this being brought to its attention, the Agent will provide communications to the Parties by another means of communications contemplated by this clause. A Party will notify the Agent promptly if it is unable to access the Deal Site.

 

(h)                           Each of the other Parties agrees that the Agent is not liable for any liability, loss, damage, costs or expenses incurred or suffered by it as a result of its access or use of the Deal Site or inability to access or use the Deal Site, other than in the case of the gross negligence or wilful misconduct of the Agent.

 

(i)                               The Agent may terminate the Deal Site after the earlier of:

 

(i)                               the Final Repayment Date; and

 

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(ii)                            prepayment or cancellation in full of the Facility, unless instructed otherwise by the Majority Lenders.

 

18.7                            “Know your customer” checks

 

(a)                           If:

 

(i)                               any law or regulation (including, without limitation, any law or regulation in place as at the date of this agreement, or the introduction of, or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this agreement);

 

(ii)                            any change in the status of the Borrower after the date of this agreement; or

 

(iii)                         a proposed assignment or transfer by a Lender of any of its rights and/or obligations under this agreement to a party that is not a Lender prior to such assignment or transfer,

 

obliges the Agent or any Lender (or, in the case of paragraph (iii) above, any proposed assignee or transferee of any Lender) to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Borrower shall promptly upon the request of the Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender (including for itself or, in the case of the event described in paragraph (iii) above, on behalf of any proposed assignee or transferee of any Lender)) in order for the Agent, such Lender or, in the case of paragraph (iii) above, any proposed assignee or transferee of any Lender to conduct any “know your customer” or other similar procedures under applicable laws and regulations.

 

(b)                           Each Lender shall promptly upon the request of the Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself) in order for the Agent to conduct any “know your customer” or other similar procedures under applicable laws and regulations.

 

19.                                   FINANCIAL COVENANTS

 

The undertakings in this Clause 19 remain in force from the date of this agreement for so long as any amount is outstanding under any of the Finance Documents or any Commitment is in force.

 

19.1                            Financial definitions

 

In this agreement:

 

Borrowings means the aggregate outstanding principal of any indebtedness of the Group (on a consolidated basis) for or in respect of Financial Indebtedness, except:

 

(a)                           any Financial Indebtedness falling within paragraphs (b) and (g) of that definition;

 

(b)                           any Financial Indebtedness falling within paragraph (i) of that definition (to the extent falling under paragraph (a) above),

 

in each case, without double counting and so that no amount shall be included or excluded more than once.

 

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Consolidated EBITDA means the consolidated operating profit of the Borrower:

 

(a)                           excluding any share-based compensation of employees;

 

(b)                           excluding any impairment of goodwill and intangible assets;

 

(c)                            before deducting any amount attributable to amortization of intangible assets and the depreciation of tangible assets; and

 

(d)                           before taking into account any other non-cash or non-recurring items,

 

in each case, without double counting and so that no amount shall be included or excluded more than once.

 

Consolidated Net Worth means the amount specified on the consolidated balance sheet of the Borrower as “Total shareholders’ equity” less the amount attributed to minority interests specified as “Noncontrolling interests” in the Latest Consolidated Balance Sheet.

 

Consolidated Total Debt means, on a date, the aggregate Borrowings of the Group as at that date.

 

Latest Consolidated Balance Sheet means the latest audited consolidated balance sheet of the Borrower delivered to the Agent pursuant to 18.1(a) or, until the first such balance sheet is so delivered, means the audited consolidated balance sheet of the Borrower as at 31 December 2017.

 

Leverage means, in respect of any period, the ratio of Consolidated Total Debt on the last day of that period to Consolidated EBITDA for that period.

 

Relevant Periods means:

 

(a)                           each period of twelve months ending on the last day of each Financial Year; and

 

(b)                           each period of twelve months ending on the last day of the second Financial Quarter of each Financial Year,

 

(each a Relevant Period).

 

19.2                            Financial condition

 

The Borrower shall ensure that, at all times:

 

(a)                           Leverage in respect of each Relevant Period shall be lower than 3.75:1.00.

 

(b)                           Consolidated Net Worth is not at any time less than RMB 20,000,000,000 (or its equivalent).

 

19.3                            Financial covenant testing

 

The financial covenants set out in Clause 19.2 (Financial condition) shall be calculated and tested semi-annually in respect of each Relevant Period by reference to each of the financial statements delivered under Clause 18.1 (Financial statements) and/or the Compliance Certificate relating thereto delivered pursuant to Clause 18.2 (Compliance Certificate).

 

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20.                                   GENERAL UNDERTAKINGS

 

The undertakings in this Clause 20 remain in force from the date of this agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

 

20.1                            Authorisations

 

The Borrower shall promptly:

 

(a)                           obtain, comply with and do all that is necessary to maintain in full force and effect; and

 

(b)                           (in relation to any Authorisation falling within any of paragraphs (c) and (d) only) supply certified copies to the Agent of,

 

any Authorisation required:

 

(c)                            to enable it to perform its obligations under the Finance Documents; and

 

(d)                           to ensure the legality, validity, enforceability or admissibility in evidence in its jurisdiction of incorporation of any Finance Document; and

 

(e)                            carry on its business where failure to do so would reasonably be expected to have a Material Adverse Effect.

 

20.2                            Compliance with laws

 

The Borrower shall, and shall procure that each member of the Group will, comply in all respects with all laws to which it may be subject, if failure so to comply would, or would reasonably be expected to, have a Material Adverse Effect.

 

20.3                            Pari passu ranking

 

The Borrower shall ensure that its payment obligations under the Finance Documents rank and continue to rank at least pari passu with the claims of all of its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.

 

20.4                            Negative pledge

 

In this Clause 20.4, Quasi-Security means any arrangement or transaction described in paragraph (b) below.

 

(a)                           Without prejudice to paragraph (d), the Borrower shall not, and the Borrower shall procure that no Material Subsidiary will, create or permit to subsist any Security over any of its assets.

 

(b)                           Without prejudice to paragraph (d), the Borrower shall not, and the Borrower shall procure that no Material Subsidiary will:

 

(i)                               sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by the Borrower or any Material Subsidiary;

 

(ii)                            sell, transfer or otherwise dispose of any of its receivables on recourse terms;

 

(iii)                         enter into or permit to subsist any title retention arrangement;

 

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(iv)                        enter into or permit to subsist any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or

 

(v)                           enter into or permit to subsist any other preferential arrangement having a similar effect,

 

in circumstances where the arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset.

 

(c)                            Subject to paragraph (d), paragraphs (a) and (b) above do not apply to:

 

(i)                               any netting or set-off or cash-pooling arrangement entered into by the Borrower or any other Material Subsidiary in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances of any member of Group;

 

(ii)                            any payment or close out netting or set-off arrangement pursuant to any hedging transaction entered into by the Borrower or any other Material Subsidiary for the purpose of:

 

(A)                         hedging any risk to which it is exposed in its ordinary course of trading; or

 

(B)                         its interest rate or currency management operations which are carried out in the ordinary course of business and for non-speculative purposes only,

 

excluding, in each case, any Security or Quasi-Security under a credit support arrangement in relation to any hedging transaction;

 

(iii)                         any lien arising by operation of law and in the ordinary course of trading, provided that any indebtedness which is secured thereby is paid when due or contested in good faith by appropriate proceedings and properly provisioned;

 

(iv)                        any Security or Quasi-Security over or affecting any asset acquired by the Borrower or any other Material Subsidiary after the date of this Agreement if:

 

(A)                         that Security or Quasi-Security was not created in contemplation of the acquisition of that asset by the Borrower or, as the case may be, such Material Subsidiary;

 

(B)                         the maximum principal amount secured by that Security or to which such Quasi-Security relates has not been increased in contemplation of, or since, the acquisition of that asset by the Borrower or, as the case may be, such Material Subsidiary; and

 

(C)                         that Security or Quasi-Security is removed or discharged within 120 days of the date of acquisition of such asset by the Borrower or, as the case may be, such Material Subsidiary;

 

(v)                           any Security or Quasi-Security over or affecting any asset of any Material Subsidiary which becomes a member of Group after the date of this Agreement, where that Security or Quasi-Security is created prior to the date on which that person becomes a member of Group, if:

 

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(A)                         that Security or Quasi-Security was not created in contemplation of the acquisition of any interest in that Material Subsidiary by any member of Group;

 

(B)                         the maximum principal amount secured by that Security or to which that Quasi-Security relates has not increased in contemplation of or since the acquisition of any interest in that Material Subsidiary by any member of Group; and

 

(C)                         that Security or Quasi-Security is removed or discharged within 120 days of that Material Subsidiary becoming a member of Group;

 

(vi)                        any Security or Quasi-Security arising under any retention of title, hire purchase or conditional sale arrangement or arrangements having similar effect in respect of goods supplied to the Borrower or any other Material Subsidiary in the ordinary course of trading and on the supplier’s standard or usual terms and not arising as a result of any default or omission by any Material Subsidiary;

 

(vii)                     any Security or Quasi-Security arising as a result of legal proceedings being contested by any Material Subsidiary in good faith and which is discharged within 30 days of such Security or Quasi-Security first arising;

 

(viii)                  any Security or Quasi-Security arising by operation of law in respect of Taxes being contested by any Material Subsidiary in good faith which is discharged by no later than 30 Business Days after such Security or Quasi-Security first arose;

 

(ix)                        any Security or Quasi-Security granted with the prior written consent of the Agent (acting on the instructions of the Majority Lenders);

 

(x)                           any Security or Quasi-Security securing indebtedness the principal amount of which does not at any time exceed the lower of:

 

(A)                         RMB 10,000,000,000 (or its equivalent in another currency or currencies); and

 

(B)                         15 per cent of the consolidated total assets of the Borrower at such time.

 

(d)                           The Borrower shall procure that, save with the prior written consent of the Agent (acting on the instructions of the Majority Lenders), no Security or Quasi-Security shall be created by the Borrower or any other member of the Group in respect of, or shall subsist over or affect, any Equity Interest in any Material Subsidiary or any Holding Company of any Material Subsidiary (or any interest in any such Equity Interest).

 

20.5                            Disposals

 

(a)                           The Borrower shall not, and the Borrower shall procure that no Material Subsidiary will, enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset.

 

(b)                           Paragraph (a) above does not apply to any sale, lease, transfer or other disposal (other than shares in NetEase (Hangzhou) Network Co., Ltd, which shall not be disposed of in any circumstances) except to the Borrower or a Material Subsidiary or to a member of the Group which is not itself a Material Subsidiary before such disposal and becomes a Material Subsidiary immediately after such disposal:

 

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(i)                               made in the ordinary course of trading of the disposing entity;

 

(ii)                            of assets in exchange for other assets comparable or superior as to type, value and quality;

 

(iii)                         of obsolete or redundant vehicles, plant and equipment for cash;

 

(iv)                        made to another member of the Group;

 

(v)                           of any asset which is a financial asset that has been classified in the latest audited consolidated financial statements of the Borrower as being available for sale;

 

(vi)                        of any asset where:

 

(A)                         such asset is being disposed as part of the Group’s business strategy;

 

(B)                         such disposal is for good and valuable consideration; and

 

(C)                         no Default is continuing or would result from such disposal;

 

(vii)                     with prior written consent of the Agent (acting on the instructions of the Majority Lenders); or

 

(viii)                  of any asset in any financial year of the Borrower, where the higher of the market value or consideration receivable in respect of such asset (when aggregated with the higher (in each case) of the market value or consideration receivable in respect of each other asset of the subject of any other sale, lease, transfer or other disposal by any or all of the Borrower and the Material Subsidiaries during such financial year, other than any permitted under paragraphs (b)(i) to (b)(vii) above) does not exceed US$100,000,000 (or its equivalent in another currency or currencies).

 

20.6                            Merger

 

(a)                           The Borrower shall. not, and the Borrower shall procure that no Material Subsidiary will, enter into any amalgamation, demerger, merger or corporate reconstruction.

 

(b)                           Paragraph (a) above does not apply to any amalgamation, merger or corporate reconstruction entered into by the Borrower or a Material Subsidiary provided that:

 

(i)                               in the case of the Borrower:

 

(A)                         the Borrower is the surviving entity of such amalgamation, merger or corporate reconstruction; and

 

(B)                         such amalgamation, merger or corporate reconstruction is made on a solvent basis and does not and would not be reasonably expected to have a Material Adverse Effect and no Default is continuing or would occur as a result of such amalgamation, merger or corporate reconstruction; and

 

(ii)                           in the case of a Material Subsidiary, it is a liquidation, reorganisation, merger, demerger, amalgamation, consolidation or corporate reconstruction (a Reorganisation) on a solvent basis of any Material Subsidiary provided that all payments and assets made, transferred or distributed as a result of such Reorganisation are made, transferred and distributed to one or more Material Subsidiaries (or an entity which will become a Material Subsidiary immediately after such transfer or distribution) and such Reorganisation 

 

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does not and would not be reasonably expected to have a Material Adverse Effect and no Default is continuing or would occur as a result of such Reorganisation.

 

20.7                            Change of business

 

The Borrower shall procure that no substantial change is made to the general nature of the business of the Group (taken as a whole) from that carried on by the Group at the date of this agreement, to the extent that such change would reasonably be expected to have a Material Adverse Effect.

 

20.8                            Maintenance of corporate existence and books and records

 

The Borrower shall, and shall procure that each Material Subsidiary will:

 

(a)                           maintain its corporate existence and registration in the jurisdiction of its incorporation (other than, in the case of any Material Subsidiary, where such Material Subsidiary is not the surviving entity of any amalgamation, merger or corporate reconstruction to the extent permitted under Clause 20.6 (Merger));

 

(b)                           keep and maintain proper books and records in accordance with GAAP in all material respects; and

 

(c)                            The Borrower shall permit the Agent or a representative of the Agent while a payment or financial covenant Event of Default is continuing or the Agent reasonably believe that a payment or financial covenant Event of Default is continuing, upon reasonable notice and during regular business hours only and at a time convenient to management, to visit any of its offices (in the presence of a representative of the Borrower) to inspect any of its books and records, provided that all information obtained as a result of such access shall be subject to the confidentiality restrictions set out in this Agreement.

 

20.9                            Anti-corruption law

 

(a)                           The Borrower shall not (and the Borrower shall ensure that no member of the Group will) directly or indirectly use any of the proceeds of the Facility (or any part thereof) for any purpose which would breach, or would cause any member of the Group or any Finance Party to be in breach of, any Anti-Bribery and Corruption Laws.

 

(b)                           The Borrower shall (and the Borrower shall ensure that each member of the Group will) comply in all respects, and conduct its businesses in compliance, with all applicable Anti-Bribery and Corruption Laws.

 

(c)                            The Borrower shall institute and maintain systems, controls and other arrangements designed to promote and ensure ongoing compliance by member of the Group with all applicable Anti-Bribery and Corruption Laws.

 

20.10                     Sanctions, Anti-Terrorism Laws and Anti-Money Laundering Laws

 

(a)                           The Borrower shall (and the Borrower shall procure that each member of the Group will) comply with, and conduct its business in compliance with, all applicable Sanctions, Anti-Money Laundering Laws and Anti-Terrorism Laws.  Without prejudice to the foregoing, the Borrower shall not, and the Borrower shall procure that no member of the Group will, knowingly engage in any transaction that violates or would violate, or would cause any member of the Group or any Finance Party to be in violation of, any of the applicable prohibitions set forth in any Sanctions, Anti-Money Laundering Laws or Anti-Terrorism Laws.

 

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(b)                           The Borrower shall ensure that none of the funds or assets of any member of the Group that are used to repay the Facility (or any part thereof) shall constitute property of, or shall be beneficially owned directly or indirectly by, any Restricted Party.

 

(c)                            The Borrower shall not, and the Borrower shall procure that no member of the Group will, fund all or part of any payment under any Finance Document out of proceeds derived from transactions that violates or would violate, or would cause any member of the Group or any Finance Party to be in violation of, any of the applicable prohibitions set forth in any Sanctions, Anti-Money Laundering Laws or Anti-Terrorism Laws.

 

(d)                           The Borrower shall not, and the Borrower shall procure that no member of the Group will, directly or indirectly, use or allow to be used lend, invest, contribute or otherwise make available, the proceeds of the Facility (or any part thereof) or other transaction(s) contemplated by any Finance Document, to any member of the Group, any director or officer, or any employee, agent, or affiliate, of a member of the Group:

 

(i)                               in favour of or for the benefit of, or for financing any activities of, or funding any trade, business or other activities involving or for the benefit of, any Restricted Party;

 

(ii)                            in any manner or for any purpose which would or might violate, or cause any member of the Group, any Finance Party or any other person participating in the Facility (whether as underwriter, advisor, investor or otherwise) to be in violation of, any applicable Sanctions, Anti-Money Laundering Laws or Anti-Terrorism Laws or Anti-Bribery and Corruption Laws or becoming a Restricted Party; or

 

(iii)                         for business activities relating to any Sanctioned Jurisdiction, including any business activities involving persons or entities named on any Sanctions List in any manner which would violate, or cause any member of the Group or any Finance Party to be in violation of, any applicable Sanctions.

 

(e)                            The Borrower shall continue to institute and maintain systems, controls and other arrangements designed to promote and ensure ongoing compliance by the Group with all applicable Sanctions, Anti-Money Laundering Laws and Anti-Terrorism Laws.

 

20.11                     Taxation

 

The Borrower shall (and the Borrower shall ensure each Material Subsidiary will) pay or procure payment of all Taxes and lodge all tax filings when due and payable or when required to be lodged (as the case may be), other than any Tax being contested in good faith by appropriate proceedings and where failure to pay or discharge would have or is likely to have a Material Adverse Effect and if the dispute in respect of such Taxes is likely to be adversely determined, adequate reserves have been set aside and such Taxes are paid promptly on final determination or settlement of the contest.

 

20.12                     Further Assurance

 

If:

 

(a)                           the Agent notifies the Borrower that it becomes aware that NDRC accepts the filing or registration of this agreement or the Facility with NDRC as required under the laws or regulations in the PRC applicable to the transactions contemplated under this agreement or the Facility; or

 

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(b)                           the Borrower becomes aware that NDRC accepts the filing or registration of this agreement or the Facility with NDRC as required under the laws or regulations in the PRC applicable to the transactions contemplated under this agreement or the Facility,

 

the Borrower shall, as soon as reasonably practicable after receipt of the Agent’s notice under paragraph (a) or the Borrower becoming aware of the acceptance of filing or registration by NDRC under paragraph (b) use reasonable endeavours to make such filing or registration with NDRC and deliver evidence to the Agent that it has made such filing or registration.

 

21.                                   EVENTS OF DEFAULT

 

Each of the events or circumstances set out in the following sub-clauses of this Clause 21 (other than Clause 21.14 (Acceleration)) is an Event of Default.

 

21.1                            Non-payment

 

The Borrower does not pay on the due date any amount payable pursuant to a Finance Document at the place at and in the currency in which it is expressed to be payable unless:

 

(a)                           its failure to pay is caused by:

 

(i)                               administrative or technical error; or

 

(ii)                            a Disruption Event; and

 

(b)                           payment is made within five Business Days of its due date.

 

21.2                            Financial covenants

 

Any requirement of Clause 19 (Financial Covenants) is not satisfied.

 

21.3                            Other obligations

 

(a)                           The Borrower does not comply with any provision of the Finance Documents (other than those referred to in Clause 21.1 (Non-payment) and Clause 21.2 (Financial covenants)).

 

(b)                           No Event of Default under paragraph (a) above will occur if the failure to comply is capable of remedy and is remedied within 20 Business Days of the earlier of (A) the Agent giving written notice to the Borrower or (B) the Borrower becoming aware of the failure to comply.

 

21.4                            Misrepresentation

 

Any representation or statement made or deemed to be made by the Borrower in any or all of the Finance Documents or any other document delivered by or on behalf of the Borrower under or in connection with any Finance Document is or proves to have been incorrect or misleading in any material respect when made or deemed to be made, unless the underlying circumstances (if capable of remedy) are remedied within 20 Business Days of the earlier to occur of:

 

(a)                           the Agent giving written notice to the Borrower; or

 

(b)                           the Borrower becoming aware of such underlying circumstances.

 

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21.5                            Cross default

 

Any:

 

(a)                           Financial Indebtedness of the Borrower or any Material Subsidiary is not paid when due nor within any originally applicable grace period;

 

(b)                           Financial Indebtedness the Borrower or any Material Subsidiary is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described);

 

(c)                            commitment for any Financial Indebtedness of the Borrower or any Material Subsidiary is cancelled or suspended by a creditor of the Borrower or any other Material Subsidiary as a result of an event of default (however described); or

 

(d)                           creditor of the Borrower or any Material Subsidiary becomes entitled to declare any Financial Indebtedness of the Borrower or any Material Subsidiary due and payable prior to its specified maturity as a result of an event of default (however described),

 

provided that (i) paragraphs (a) to (d) above shall not apply to any Financial Indebtedness that is owing to a member of the Group and (ii) no Event of Default will occur under this Clause 21.5 if at all times the aggregate amount of Financial Indebtedness and/or commitment for Financial Indebtedness falling within paragraphs (a) to (d) above (for any and all of the Borrower and the Material Subsidiaries) is less than the higher of (x) US$100,000,000 (or its equivalent in any other currency or currencies) and (y) 2.5 per cent of the Consolidated Net Worth as at such time.

 

21.6                            Insolvency

 

(a)                           The Borrower or a Material Subsidiary is or is presumed or deemed to be unable or admits inability to pay its debts as they fall due, suspends making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors (excluding any Finance Party in its capacity as such) with a view to rescheduling any of its indebtedness.

 

(b)                           The value of the assets of the Borrower or any Material Subsidiary is less than its liabilities (taking into account contingent and prospective liabilities).

 

(c)                            A moratorium is declared in respect of any indebtedness of the Borrower or any Material Subsidiary.

 

21.7                            Insolvency proceedings

 

(a)                           Any corporate action, legal proceedings or other formal procedure or step is taken or occurs in relation to:

 

(i)                               the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, striking-off, administration, provisional supervision or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of the Borrower or any Material Subsidiary (other than a solvent liquidation or reorganisation constituted by any amalgamation, merger or corporate reconstruction entered into by any Material Subsidiary in each case, to the extent permitted under Clause 20.6 (Merger));

 

(ii)                            a composition or arrangement with any creditor of the Borrower or any Material Subsidiary, or an assignment for the benefit of creditors generally of the Borrower or any Material Subsidiary or a class of such creditors;

 

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(iii)                         the appointment of a liquidator, receiver, administrator, administrative receiver, compulsory manager, provisional supervisor or other similar officer in respect of the Borrower or any Material Subsidiary or any of its assets (other than any solvent liquidation of any Material Subsidiary constituted by any amalgamation, merger or corporate reconstruction entered into by such Material Subsidiary, in each case, to the extent permitted under Clause 20.6 (Merger)); or

 

(iv)                        enforcement of any Security over any assets of the Borrower or any other Material Subsidiary where the aggregate value of any and all of the assets of the Borrower and the Material Subsidiaries that are subject to any or all events and/or circumstances of enforcement of Security is not less than the higher of US$100,000,000 (or its equivalent in any other currency or currencies) and 2.5 per cent of Consolidated Net Worth at such time,

 

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

 

(b)                           any proceeding or case is commenced seeking the Borrower’s or any Material Subsidiary’s reorganisation, liquidation, dissolution, arrangement or winding-up or the composition or re-adjustment of the Borrower’s or any Material Subsidiary’s debts under the US Bankruptcy Code or other debtor relief laws of the United States, with consent of the Borrower or any Material Subsidiary (or without the consent of the Borrower or any Material Subsidiary which (A) results in the entry of any order of relief or any order, judgment, decree, adjudication or appointment approving, ordering or giving effecting to the Borrower’s or any Material Subsidiary’s reorganisation, liquidation, dissolution, arrangement or winding-up or the composition or re-adjustment of the Borrower’s or any Material Subsidiary’s debts under the US Bankruptcy Code or other debtor relief laws of the United States or (B) remains undismissed or undischarged for a period of 90 days of commencement).

 

This Clause 21.7 shall not apply to any corporate action, legal proceedings or other procedure or step (brought by any person that is not a member of the Group) in relation to the winding-up, administration or dissolution or any analogous procedure or step in any jurisdiction of the Borrower or any Material Subsidiary which is frivolous or vexatious and is discharged, dismissed or struck out within 90 days of commencement.

 

21.8                            Creditors’ process

 

Any expropriation, attachment, sequestration, distress or execution (or any analogous process in any jurisdiction) affects any asset or assets of the Borrower or any Material Subsidiary and is not discharged within 20 Business Days, and the aggregate value of any and all of the assets of the Borrower and the Material Subsidiaries that are subject to any or all events and/or circumstances of expropriation, attachment, sequestration, distress and/or execution (and/or any analogous process in any jurisdiction) is not less than the higher of US$100,000,000 (or its equivalent in any other currency or currencies) and 2.5 per cent of Consolidated Net Worth at such time.

 

21.9                            Unlawfulness and invalidity

 

(a)                           It is or becomes unlawful for the Borrower to perform any of its obligations under the Finance Documents.

 

(b)                           Subject to the Legal Reservations, any obligation or obligations of the Borrower under any Finance Document are not or cease to be legal, valid, binding or enforceable and such illegality, invalidity, non-binding nature or unenforceability individually or cumulatively materially and adversely affects the interests of the Finance Parties under the Finance Documents.

 

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(c)                            Any Finance Document is not or ceases to be in full force and effect.

 

21.10                     Repudiation

 

The Borrower rescinds or purports to rescind or repudiates or purports to repudiate any Finance Document or evidences an intention to rescind or repudiate any Finance Document.

 

21.11                     Cessation of business

 

The Borrower suspends or ceases to carry on all or substantially all of its business or of the business of the Group taken as a whole.

 

21.12                     Material adverse change

 

Any event or circumstance occurs (whether individually or together with other events or circumstances) which has a Material Adverse Effect.

 

21.13                     Delisting or suspension of Borrower’s shares

 

(a)                           The shares in the Borrower cease to be listed on the Nasdaq Global Select Market; or

 

(b)                           the trading of the shares in the Borrower on the Nasdaq Global Select Market is suspended for a period of at least 20 consecutive Trading Days (or such longer period as may be agreed between the Borrower and the Agent (acting on the instructions of the Majority Lenders)), unless such suspension is solely caused by administrative or technical reasons in the system of the NASDAQ Global Select Market.

 

In this clause 21.13, Trading Day means a day (other than a Saturday or Sunday) on which the Nasdaq Global Select Market is open for trading.

 

21.14                     Acceleration

 

On and at any time after the occurrence of an Event of Default which is continuing the Agent may, and shall if so directed by the Majority Lenders, by notice to the Borrower:

 

(a)                           without prejudice to the participations of any or all of the Lenders in any Loans then outstanding:

 

(i)                               cancel the Commitments (and reduce them to zero), whereupon they shall immediately be cancelled (and reduced to zero); or

 

(ii)                            cancel any part of any Commitment (and reduce such Commitment accordingly), whereupon the relevant part shall immediately be cancelled (and the relevant Commitment shall be immediately reduced accordingly); and/or

 

(b)                           declare that all or part of the Loans, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable, whereupon they shall become immediately due and payable; and/or

 

(c)                            declare that all or part of the Loans be payable on demand, whereupon they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders; and/or

 

(d)                           declare that no Rollover Loan shall be made,

 

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provided that, if an Event of Default under Clause 21.7 (Insolvency proceedings) shall occur in respect of the Borrower in a US court of competent jurisdiction, then without notice to the Borrower or any other person or any other act by the Agent or any other person, the Commitments of the Lenders shall be automatically cancelled and reduced to zero, and all of the Loans, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents shall automatically become immediately due and payable without presentment, demand, protest or notice of any kind, all of which are expressly waived.

 

22.                                   CHANGES TO THE PARTIES

 

22.1                            Assignments and transfers by the Lenders

 

Subject to this Clause 22, a Lender (the Existing Lender) may:

 

(a)                           assign any of its rights; or

 

(b)                           transfer by novation any of its rights and obligations,

 

under the Finance Documents to another bank or financial institution or to a trust, fund or other entity which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets (the New Lender) without the prior consent of the Borrower.

 

22.2                            Conditions of assignment or transfer

 

(a)                           Subject to paragraph (b), a Lender may assign, novate, create any interest in, or otherwise deal with, all or any of its rights under the Finance Documents to another bank or financial institution.

 

(b)                           Unless an Event of Default is subsisting, a Lender may not at any time assign, novate, create any interest in enter into a Voting Participation, or otherwise deal with, all or any of its rights under the Finance Documents to:

 

(i)                               a Conflicted Lender;

 

(ii)                            a loan-to-own fund, vulture fund, distressed debt fund, hedge fund or any other entity (including a business group within a bank or financial institution) which is established for or principally invests in distressed debt (or any similar fund or entity); or

 

(c)                            Unless an Event of Default is subsisting or the Borrower provides its prior consent (such consent not being unreasonably withheld or delayed), a New Lender must have a credit rating of at least BBB- by Standard & Poor or an equivalent rating from another rating agency. For the avoidance of doubt, it will not be unreasonable for the Borrower to withheld or delay its consent under this paragraph if a potential New Lender that is not rated is not able to demonstrate to the satisfaction of the Borrower (acting reasonably) that its creditworthiness is not worse than BBB- by Standard & Poor or an equivalent rating from another rating agency.

 

(d)                           A transfer will be effective only if the procedure set out in Clause 22.5 (Procedure for transfer) is complied with.

 

(e)                            An assignment will be effective only if the procedure and conditions set out in Clause 22.6 (Procedure for assignment) are complied with.

 

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(f)                             If:

 

(i)                                   a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and

 

(ii)                                as a result of circumstances existing at the date the assignment, transfer or change occurs, the Borrower would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 12 (Tax Gross Up and Indemnities) or paragraph (a) of Clause 13.1 (Increased Costs) of this Agreement,

 

then the New Lender or Lender acting through its new Facility Office is only entitled to receive payment under those Clauses in respect of those circumstances to the same extent as the Existing Lender or Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred.

 

(g)                             An Existing Lender may not assign or transfer any of its rights or obligations under the Finance Documents or change its Facility Office, if the New Lender or the Existing Lender acting through its new Facility Office would be entitled to exercise any rights under Clause 7.1 (Illegality) as a result of circumstances existing at the date the assignment or transfer is proposed to occur.

 

(h)                            Unless agreed with a New Lender, an Existing Lender must bear its own fees, costs and expenses in connection with, or resulting from, an assignment or transfer including, without limitation, any legal fees, taxes, notarial and security registration or perfection fees.

 

22.3                            Assignment or transfer fee

 

The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Agent (for its own account) a fee of US$5,000.

 

22.4                            Limitation of responsibility of Existing Lenders

 

(a)                        Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for:

 

(i)                            the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents;

 

(ii)                         the financial condition of any member of the Group or any Affiliate of any member of the Group;

 

(iii)                      the performance and observance by the Borrower of its obligations under the Finance Documents or any other documents; or

 

(iv)                     the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document,

 

and any representations or warranties implied by law are excluded.

 

(b)                        Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

 

(i)                            has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of the Borrower, members of the Group and their related entities in connection with its participation in this agreement and/or the other Finance Documents has not 

 

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relied exclusively on any information provided to it by the Existing Lender in connection with any Finance Document; and

 

(ii)                          will continue to make its own independent appraisal of the creditworthiness of the Borrower, members of the Group and its related entities whilst any amount is or may be outstanding under the Finance Documents or any Commitment is in force.

 

(c)                            Nothing in any Finance Document obliges an Existing Lender to:

 

(i)                             accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned or transferred under this Clause 22; or

 

(ii)                          support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by the Borrower of its obligations under the Finance Documents or otherwise.

 

22.5                            Procedure for transfer

 

(a)                           Subject to the conditions set out in Clause 22.2 (Conditions of assignment or transfer), a transfer is effected in accordance with paragraph (c) below when:

 

(i)                             the Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender.  The Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this agreement and delivered in accordance with the terms of this agreement, execute that Transfer Certificate; or

 

(ii)                          for the purposes of the primary syndication of the Facility, a syndication agreement is entered into, substantially in the form set out in Schedule 8 (Form of Syndication Agreement) (Syndication Agreement).

 

(b)                        The Agent shall not be obliged to execute a Syndication Agreement or a Transfer Certificate delivered to it by the Existing Lender and the New Lender unless it is satisfied that it has completed all “know your customer” and other similar procedures that it is required (or deems desirable) to conduct in relation to the transfer to the relevant New Lender(s).

 

(c)                            On the Transfer Date:

 

(i)                               in respect of a transfer which is effected pursuant to paragraph (a)(i):

 

(A)                       to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents each of the Borrower and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their respective rights against one another under the Finance Documents shall be cancelled (being the Discharged Rights and Obligations);

 

(B)                       each of the Borrower and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as the Borrower and the New Lender have assumed and/or acquired the same in place of the Borrower and the Existing Lender;

 

(C)                       the Agent, the MLABs, the New Lender and other Lenders shall acquire the same rights and assume the same obligations between 

 

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themselves as they would have acquired and assumed had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Agent, the MLABs and the Existing Lender shall each be released from further obligations to each other under the Finance Documents; and

 

(D)                         the New Lender shall become a Party as a Lender; and

 

(ii)                          in respect of a transfer which is effected pursuant to paragraph (a)(ii),  the New Lender shall become a Party as a Lender in accordance with the terms of the Syndication Agreement.

 

22.6                            Procedure for assignment

 

(a)                        Subject to the conditions set out in Clause 22.2 (Conditions of assignment or transfer), an assignment may be effected in accordance with paragraph (c) below when the Agent executes an otherwise duly completed Assignment Agreement delivered to it by the Existing Lender and the New Lender.  The Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Assignment Agreement appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Assignment Agreement.

 

(b)                        The Agent shall not be obliged to execute an Assignment Agreement delivered to it by the Existing Lender and the New Lender unless it is satisfied that it has completed all “know your customer” and other similar procedures that it is required (or deems desirable) to conduct in relation to the transfer to such New Lender.

 

(c)                         On the Transfer Date:

 

(i)                             the Existing Lender will assign absolutely to the New Lender the rights under the Finance Documents expressed to be the subject of the assignment in the Assignment Agreement;

 

(ii)                          the Existing Lender will be released by the Borrower and the other Finance Parties from the obligations owed by it (the Relevant Obligations) and expressed to be the subject of the release in the Assignment Agreement; and

 

(iii)                       the New Lender shall become a Party as a “Lender” and will be bound by obligations equivalent to the Relevant Obligations.

 

(d)                        An Existing Lender may utilise procedures other than those set out in this Clause 22.6 to assign its rights under the Finance Documents (but not, without the consent of the Borrower or unless in accordance with Clause 22.5 (Procedure for transfer), to obtain a release by the Borrower from the obligations owed to the Borrower by that Existing Lender nor the assumption of equivalent obligations by a New Lender) provided that they comply with the conditions set out in Clause 22.2 (Conditions of assignment or transfer).

 

(e)                         The procedure set out in this Clause 22.6 shall not apply to any right or obligation under any Finance Document (other than this agreement) if and to the extent its terms, or any laws or regulations applicable thereto, provide for or require a different means of assignment of such right or release or assumption of such obligation or prohibit or restrict any assignment of such right or release or assumption of such obligation, unless such prohibition or restriction shall not be applicable to the relevant assignment, release or assumption or each condition of any applicable restriction shall have been satisfied.

 

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22.7                        Copy of Transfer Certificate or Assignment Agreement to Borrower

 

The Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate or an Assignment Agreement, send to the Borrower a copy of that Transfer Certificate or Assignment Agreement.

 

22.8                        Breach of Conditions of Assignment or Transfer

 

If any Transfer is executed and purported to have effect in breach of the restrictions on transfers set forth in this Clause 22 (Changes to the Lenders) that transfer shall be void and deemed not to have occurred, until such time as there has been compliance with the assignment and transfer provisions of this Clause 22 (Changes to the Lenders). Any Transfer Certificate may (if required by the Existing Lender) contain an indemnity from the New Lender.

 

22.9                        Existing consents and waivers

 

Each New Lender shall be bound by any consent, waiver, election or decision given or made by the relevant Existing Lender under or pursuant to any Finance Document prior to the coming into effect of the relevant assignment or transfer to such New Lender.

 

22.10                     Exclusion of Agent’s liability

 

In relation to any assignment or transfer pursuant to this Clause 22, each Party acknowledges and agrees that the Agent shall not be obliged to enquire as to the accuracy of any representation or warranty made by a New Lender in respect of its eligibility as a Lender.

 

22.11                     Sub-participation

 

For the avoidance of doubt, each Lender may, other than a Voting Participation restricted under Clause 22.2(b) (Conditions of assignment or transfer), grant sub-participations in respect of any or all of its rights and/or obligations under any Finance Document to any person and no consent of the Borrower shall be required in respect of any such sub-participations.

 

22.12                     Assignments and transfers to members of the Group

 

A Lender may not assign or transfer to any of its rights and/or obligations under any Finance Document to any member of the Group or any Affiliate of any member of the Group any of such Lender’s rights or obligations under any Finance Document, except with the prior written consent of all the Lenders.

 

22.13                     Security over Lenders’ rights

 

In addition to the other rights provided to Lenders under this Clause 22, each Lender may without consulting with or obtaining consent from the Borrower, at any time charge, assign or otherwise create Security in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including:

 

(a)                         any charge, assignment or other Security to secure obligations to a federal reserve or central bank; and

 

(b)                         in the case of any Lender which is a fund, any charge, assignment or other Security granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as security for those obligations or securities,

 

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except that no such charge, assignment or Security shall:

 

(i)                             release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security for the Lender as a party to any of the Finance Documents; or

 

(ii)                          require any payments to be made by the Borrower other than or in excess of, or grant to any person any more extensive rights than, those required to be made or granted to the relevant Lender under the Finance Documents.

 

22.14                     Assignments and transfers by the Borrower

 

The Borrower may not assign any of its rights or transfer any of its rights or obligations under the Finance Documents.

 

23.                                   ROLE OF THE ADMINISTRATIVE PARTIES

 

23.1                            Appointment of the Agent

 

(a)                         Each of the MLABs and the Lenders appoints the Agent to act as its agent under and in connection with the Finance Documents.

 

(b)                         Each of the MLABs and the Lenders authorises the Agent to perform the duties, obligations and responsibilities and to exercise the rights, powers, authorities and discretions specifically given to the Agent under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

 

23.2                            Instructions

 

(a)                        The Agent shall:

 

(i)                             unless a contrary indication appears in a Finance Document, exercise or refrain from exercising any right, power, authority or discretion vested in it as Agent in accordance with any instructions given to it by:

 

(A)                         all Lenders if the relevant Finance Document stipulates the matter is an all-Lender decision; and

 

(B)                         in all other cases, the Majority Lenders; and

 

(ii)                          not be liable for any act (or omission) if it acts (or refrains from acting) in accordance with paragraph (i) above.

 

(b)                        The Agent shall be entitled to request instructions, or clarification of any instruction, from the Majority Lenders (or, if the relevant Finance Document stipulates the matter is a decision for any other Lender or group of Lenders, from that Lender or group of Lenders) as to whether, and in what manner, it should exercise or refrain from exercising any right, power, authority or discretion.  The Agent may refrain from acting unless and until it receives any such instructions or clarification that it has requested.

 

(c)                         Save in the case of decisions stipulated to be a matter for any other Lender or group of Lenders under the relevant Finance Document and unless a contrary indication appears in a Finance Document, any instructions given to the Agent by the Majority Lenders shall override any conflicting instructions given by any other Parties and will be binding on all Finance Parties.

 

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(d)                        The Agent may refrain from acting in accordance with any instructions of any Lender or group of Lenders until it has received any indemnification and/or security that it may in its discretion require (which may be greater in extent than that contained in the Finance Documents and which may include payment in advance) for any cost, loss or liability which it may incur in complying with those instructions.

 

(e)                         In the absence of instructions, the Agent may act (or refrain from acting) as it considers to be in the best interest of the Lenders.

 

(f)                          The Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender’s consent) in any legal or arbitration proceedings relating to any Finance Document.

 

23.3                            Duties of the Agent

 

(a)                        The Agent’s duties under the Finance Documents are solely mechanical and administrative in nature.

 

(b)                        Subject to paragraph (c) below, the Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Agent for that Party by any other Party.

 

(c)                         Without prejudice to Clause 22.7, paragraph (b) above shall not apply to any Transfer Certificate or any Assignment Agreement.

 

(d)                        Except where a Finance Document specifically provides otherwise, the Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

 

(e)                         If the Agent receives notice from a Party referring to this agreement, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the other Finance Parties.

 

(f)                          If the Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than to any Administrative Party) under this agreement, it shall promptly notify the other Finance Parties.

 

(g)                         The Agent shall have only those duties, obligations and responsibilities expressly specified in the Finance Documents to which it is expressed to be a party (and no others shall be implied).

 

23.4                            Role of the MLABs

 

Except as specifically provided in the Finance Documents, the MLABs have no obligations of any kind to any other Party under or in connection with any Finance Document.

 

23.5                            No fiduciary duties

 

(a)                        Nothing in any Finance Document constitutes any Administrative Party as a trustee or fiduciary of any other person.

 

(b)                        No Administrative Party shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account.

 

23.6                            Business with the Group

 

Any Administrative Party may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the Group.

 

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23.7                            Rights and discretions of the Agent

 

(a)                        The Agent may:

 

(i)                             rely on any representation, communication, notice or document believed by it to be genuine, correct and appropriately authorised;

 

(ii)                          assume that:

 

(A)                       any instructions received by it from the Majority Lenders, any Lender or any group of Lenders are duly given in accordance with the terms of the Finance Documents; and

 

(B)                       unless it has received notice of revocation, those instructions have not been revoked; and

 

(iii)                       rely on a certificate from any person:

 

(A)                       as to any matter of fact or circumstance which might reasonably be expected to be within the knowledge of that person; or

 

(B)                       to the effect that such person approves of any particular dealing, transaction, step, action or thing,

 

as sufficient evidence that that is the case and, in the case of paragraph (A) above, may assume the truth and accuracy of that certificate.

 

(b)                        The Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Lenders) that:

 

(i)                             no Default has occurred (unless it has actual knowledge of a Default arising under Clause 21.1 (Non-payment)); and

 

(ii)                          any right, power, authority or discretion vested in any Party or any group of Lenders has not been exercised.

 

(c)                         The Agent may engage, and pay for the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts.

 

(d)                        Without prejudice to the generality of paragraph (c) above or paragraph (e) below, the Agent may at any time engage and pay for the services of any lawyers to act as independent counsel to the Agent (and so separate from any lawyers instructed by the Lenders) if the Agent in its reasonable opinion deems this to be necessary.

 

(e)                         The Agent may rely on the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts (whether obtained by the Agent or by any other Party) and shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of its so relying.

 

(f)                          The Agent may act in relation to the Finance Documents through its officers, employees and agents.

 

(g)                         Unless a Finance Document expressly provides otherwise the Agent may disclose to any other Party any information it reasonably believes it has received as agent under this agreement.

 

(h)                        Notwithstanding any other provision of any Finance Document to the contrary, no Administrative Party is obliged to do or omit to do anything if it would or might in 

 

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its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

 

(i)                            Notwithstanding any provision of any Finance Document to the contrary, the Agent is not obliged to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties, obligations or responsibilities or the exercise of any right, power, authority or discretion if it has grounds for believing the repayment of such funds or adequate indemnity against, or security for, such risk or liability is not reasonably assured to it.

 

23.8                            Responsibility for documentation

 

No Administrative Party is responsible or liable for:

 

(a)                        the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by any Administrative Party, the Borrower or any other person given in or in connection with any Finance Document, the Information Memorandum or the transactions contemplated in the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document;

 

(b)                        the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; or

 

(c)                         any determination as to whether any information provided or to be provided to any Finance Party is non-public information the use of which may be regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise.

 

23.9                            No duty to monitor

 

The Agent shall not be bound to enquire:

 

(a)                        whether or not any Default has occurred;

 

(b)                        as to the performance, default or any breach by any Party of its obligations under any Finance Document; or

 

(c)                         whether any other event specified in any Finance Document has occurred.

 

23.10                     Exclusion of liability

 

(a)                        Without limiting paragraph (b) below (and without prejudice to any other provision of any Finance Document excluding or limiting the liability of the Agent), the Agent will not be liable (including, without limitation, for negligence or any other category of liability whatsoever) for:

 

(i)                             any damages, costs or losses to any person, any diminution in value, or any liability whatsoever arising as a result of taking or not taking any action under or in connection with any Finance Document, unless directly caused by its gross negligence or wilful misconduct;

 

(ii)                          exercising, or not exercising, any right, power, authority or discretion given to it by, or in connection with, any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, any Finance Document, other than by reason of its gross negligence or wilful misconduct; or

 

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(iii)                      without prejudice to the generality of paragraphs (i) and (ii) above, any damages, costs or losses to any person, any diminution in value or any liability whatsoever (including for negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) arising as a result of:

 

(A)                         any act, event or circumstance not reasonably within its control; or

 

(B)                         the general risks of investment in, or the holding of assets in, any jurisdiction,

 

including (in each case) such damages, costs, losses, diminution in value or liability arising as a result of: nationalisation, expropriation or other governmental actions; any regulation, currency restriction, devaluation or fluctuation; market conditions affecting the execution or settlement of transactions or the value of assets (including any Disruption Event); breakdown, failure or malfunction of any third party transport, telecommunications, computer services or systems; natural disasters or acts of God; war, terrorism, insurrection or revolution; or strikes or industrial action.

 

(b)                        No Party (other than the Agent) may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document and any officer, employee or agent of the Agent may rely on this Clause 23 subject to Clause 1.4 (Third party rights) and the provisions of the Third Parties Ordinance.

 

(c)                         The Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the Agent if the Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Agent for that purpose.

 

(d)                        Nothing in this agreement shall oblige any Administrative Party to conduct:

 

(i)                             any “know your customer” or other procedures in relation to any person; or

 

(ii)                          any check on the extent to which any transaction contemplated by this agreement might be unlawful for any Lender,

 

on behalf of any Lender and each Lender confirms to each Administrative Party that it is solely responsible for any such procedures or check it is required to conduct and that it shall not rely on any statement in relation to such procedures or check made by any Administrative Party.

 

(e)                         Without prejudice to any provision of any Finance Document excluding or limiting the Agent’s liability, any liability of the Agent arising under or in connection with any Finance Document shall be limited to the amount of actual loss which has been suffered (as determined by reference to the date of default of the Agent or, if later, the date on which the loss arises as a result of such default) but without reference to any special conditions or circumstances known to the Agent at any time which increase the amount of that loss.  In no event shall the Agent be liable for any loss of profits, goodwill, reputation, business opportunity or anticipated saving, or for special, punitive, indirect or consequential damages, whether or not the Agent has been advised of the possibility of such loss or damages.

 

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23.11                     Lenders’ indemnity to the Agent

 

Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Agent, within three Business Days of demand, against any cost, loss or liability (including for negligence or any other category of liability whatsoever) incurred by the Agent (otherwise than by reason of the Agent’s gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 25.11 (Disruption to payment systems etc.), notwithstanding the Agent’s negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) in acting as Agent under the Finance Documents (unless the Agent has been reimbursed by the Borrower pursuant to a Finance Document).

 

23.12                     Resignation of the Agent

 

(a)                        The Agent may resign and appoint one of its Affiliates as successor by giving notice to the other Finance Parties and the Borrower.

 

(b)                        Alternatively, the Agent may resign by giving 30 days’ notice to the other Finance Parties and the Borrower, in which case the Majority Lenders (after consultation with the Borrower) may appoint a successor Agent.

 

(c)                         If the Majority Lenders have not appointed a successor Agent in accordance with paragraph (b) above within 30 days after notice of resignation was given, the retiring Agent (after consultation with the Borrower) may appoint a successor Agent.

 

(d)                        The retiring Agent shall, at its own cost, make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request for the purposes of performing its functions as Agent under the Finance Documents.  The Borrower shall, within three Business Days of demand, reimburse the retiring Agent for the amount of all costs and expenses (including legal fees) properly incurred by it in making available such documents and records and providing such assistance.

 

(e)                         The Agent’s resignation notice shall only take effect upon the appointment of a successor.

 

(f)                          Upon the appointment of a successor, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents (other than its obligations under paragraph (d) above) but shall remain entitled to the benefit of Clause 15.3 (Indemnity to the Agent) and this Clause 23 (and any agency fees for the account of the retiring Agent shall cease to accrue from (and shall be payable on) that date).  Any successor and each of the other Parties shall have the same rights and obligations among themselves as they would have had if such successor had been an original Party.

 

(g)                         After consultation with the Borrower, the Majority Lenders may, by notice to the Agent, require it to resign in accordance with paragraph (b) above.  In this event, the Agent shall resign in accordance with paragraph (b) above.

 

(h)                        The Agent shall resign in accordance with paragraph (b) above (and, to the extent applicable, shall use reasonable endeavours to appoint a successor Agent pursuant to paragraph (c) above) if on or after the date which is three months before the earliest FATCA Application Date relating to any payment to the Agent under the Finance Documents:

 

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(i)                             the Agent fails to respond to a request under Clause 12.7 (FATCA information) and a Lender reasonably believes that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

 

(ii)                          the information supplied by the Agent pursuant to Clause 12.7 (FATCA information) indicates that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or

 

(iii)                       the Agent notifies the Borrower and the Lenders that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date,

 

and (in each case) a Lender reasonably believes that a Party will be required to make a FATCA Deduction that would not be required if the Agent were a FATCA Exempt Party, and that Lender, by notice to the Agent, requires it to resign.

 

23.13                     Confidentiality

 

(a)                           In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its divisions or departments.

 

(b)                           If information is received by another division or department of the Agent, it may be treated as confidential to that division or department and the Agent shall not be deemed to have notice of it.

 

(c)                            The Agent shall not be obliged to disclose to any Finance Party any information supplied to it by the Borrower or any Affiliates of the Borrower on a confidential basis and for the purpose of evaluating whether any waiver or amendment is or may be required or desirable in relation to any Finance Document.

 

23.14                     Relationship with the Lenders

 

(a)                           The Agent may treat the person shown in its records as Lender at the opening of business (in the place of the Agent’s principal office as notified to the Finance Parties from time to time) as the Lender acting through its Facility Office:

 

(i)                             entitled to or liable for any payment due under any Finance Document on that day; and

 

(ii)                          entitled to receive and act upon any notice, request, document or communication or make any decision or determination under any Finance Document made or delivered on that day,

 

unless it has received not less than five Business Days’ prior notice from that Lender to the contrary in accordance with the terms of this agreement.

 

(b)                           Any Lender may by notice to the Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or despatched to that Lender under the Finance Documents.  Such notice shall contain the address, fax number and electronic mail address and/or any other information required to enable the transmission of information by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a substitute address, fax number, electronic mail address (or such other information), department and officer by that Lender for the purposes of Clause 27.2 (Addresses) and paragraph (a)(ii) of Clause 27.5 (Electronic communication) and the Agent shall be entitled to treat such person as 

 

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the person entitled to receive all such notices, communications, information and documents as though that person were that Lender.

 

23.15                     Credit appraisal by the Lenders

 

Without affecting the responsibility of the Borrower for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms to each Administrative Party that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to:

 

(a)                           the financial condition, status and nature of the Borrower, each other member of the Group and their respective Affiliates;

 

(b)                           the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document;

 

(c)                         whether that Lender has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and

 

(d)                        the adequacy, accuracy and/or completeness of the Information Memorandum and any other information provided by the Agent, any Party or by any other person under or in connection with any Finance Document, the transactions contemplated by any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document.

 

23.16                     Deduction from amounts payable by the Agent

 

If any Party owes an amount to the Agent under the Finance Documents the Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed.  For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.

 

24.                                   SHARING AMONG THE FINANCE PARTIES

 

24.1                            Payments to Finance Parties

 

If a Finance Party (a Recovering Finance Party) receives or recovers (whether by set-off or otherwise) any amount from the Borrower other than in accordance with Clause 25 (Payment Mechanics) (a Recovered Amount) and applies that amount to a payment due under the Finance Documents then:

 

(a)                           the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery to the Agent;

 

(b)                           the Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Agent and distributed in accordance with Clause 25 (Payment Mechanics), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or distribution; and

 

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(c)                            the Recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the Sharing Payment) equal to such receipt or recovery less any amount which the Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 25.5 (Partial Payments).

 

24.2                            Redistribution of payments

 

The Agent shall treat the Sharing Payment as if it had been paid by the Borrower and distribute it between the Finance Parties (other than the Recovering Finance Party) (the Sharing Finance Parties) in accordance with Clause 25.6 (Partial Payments) towards the obligations of the Borrower to the Sharing Finance Parties.

 

24.3                            Recovering Finance Party’s rights

 

(a)                           On a distribution by the Agent under Clause 24.2 (Redistribution of payments) of a payment received by a Recovering Finance Party from the Borrower, as between the Borrower and the Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by the Borrower.

 

(b)                           If and to the extent that the Recovering Finance Party is not able to rely on its rights under paragraph (a) above, the Borrower shall be liable to the Recovering Finance Party for a debt equal to the Sharing Payment which is immediately due and payable.

 

24.4                            Reversal of redistribution

 

If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:

 

(a)                           each Sharing Finance Party shall, upon request of the Agent, pay to the Agent for the account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay) (the Redistributed Amount); and

 

(b)                           as between the Borrower and each relevant Sharing Finance Party, an amount equal to the relevant Redistributed Amount will be treated as not having been paid by the Borrower.

 

24.5                            Exceptions

 

(a)                           This Clause 24 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause 24, have a valid and enforceable claim against the Borrower.

 

(b)                           A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:

 

(i)                             it notified that other Finance Party of the legal or arbitration proceedings; and

 

(ii)                          that other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings.

 

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25.                                   PAYMENT MECHANICS

 

25.1                            Payments to the Agent

 

(a)                        On each date on which the Borrower or a Lender is required to make a payment under a Finance Document, the Borrower or Lender shall make the same available to the Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

 

(b)                        Payment shall be made to such account in the principal financial centre of the country of that currency and with such bank as the Agent, in each case, specifies.

 

25.2                            Distributions by the Agent

 

(a)                         Each payment received by the Agent under the Finance Documents for another Party shall, subject to Clause 25.3 (Distributions to the Borrower) and Clause 25.4 (Clawback and pre-funding) be made available by the Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the Agent by not less than five Business Days’ notice with a bank specified by that Party in the principal financial centre of the country of that currency.

 

(b)                        The Agent shall distribute payments received by it in relation to all or any part of a Loan to the Lender indicated in the records of the Agent as being so entitled on that date provided that the Agent is authorised to distribute payments to be made on the date on which any transfer becomes effective pursuant to Clause 22 (Changes to the Parties) to the Lender so entitled immediately before such transfer took place regardless of the period to which such sums relate.

 

25.3                            Distributions to the Borrower

 

The Agent may (with the consent of the Borrower or in accordance with Clause 26 (Set-off)) apply any amount received by it for the Borrower in or towards payment (on the date and in the currency and funds of receipt) of any amount due from the Borrower under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.

 

25.4                            Clawback and pre-funding

 

(a)                        Where a sum is to be paid to the Agent under the Finance Documents for another Party, the Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.

 

(b)                        Unless paragraph (c) below applies, if the Agent pays an amount to another Party and it proves to be the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Agent shall on demand refund the same to the Agent together with interest on that amount from the date of payment to the date of receipt by the Agent, calculated by the Agent to reflect its cost of funds.

 

(c)                         If the Agent has notified the Lenders that it is willing to make available amounts for the account of the Borrower before receiving funds from the Lenders then if and to the extent that the Agent does so but it proves to be the case that it does not then receive funds from a Lender in respect of a sum which it paid to the Borrower:

 

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(i)                             the Agent shall notify the Borrower of that Lender’s identity and the Borrower shall on demand refund it to the Agent; and

 

(ii)                          the Lender by whom those funds should have been made available or, if that Lender fails to do so, the Borrower shall on demand pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent against any funding cost incurred by it as a result of paying out that sum before receiving those funds from that Lender.

 

25.5                            Impaired Agent

 

(a)                           If, at any time, the Agent becomes an Impaired Agent, the Borrower or a Lender which is required to make a payment under any of the Finance Documents to the Agent for the account of any person in accordance with Clause 25.1 (Payments to the Agent) may instead either:

 

(i)                             pay that amount direct to such person; or

 

(ii)                         (if in its absolute discretion it considers that it is not reasonably practicable to pay that amount direct to such person) pay that amount (or the applicable part thereof payable to such person) to an interest-bearing account held with an Acceptable Bank and in relation to which no Insolvency Event has occurred and is continuing, in the name of the Borrower or the Lender making that payment (the Paying Party) and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents (the Recipient Party or Recipient Parties),

 

and in each case such payments must be made on the due date for payment under the Finance Documents. Acceptable Bank means a bank or financial institution which has a rating for its long-term unsecured and non-credit- enhanced debt obligations of BBB or higher by Standard & Poor’s Rating Services or Fitch Ratings Ltd or Baa2 or higher by Moody’s Investor Services Limited or a comparable rating from an internationally recognised credit rating agency.

 

(b)                        All interest accrued on any amount standing to the credit of that trust account shall be for the benefit of the Recipient Party or Recipient Parties pro rata to their respective entitlements to such amount.

 

(c)                         A Party which has made a payment in accordance with this Clause 25.5 shall be discharged of the applicable obligations to make such payment under the Finance Documents and shall not take any credit risk with respect to the amounts standing to the credit of that trust account.

 

(d)                        Promptly upon the appointment of a successor Agent, each Paying Party which has made a payment to a trust account in accordance with this Clause 25.5 (other than to the extent that such Paying Party has given an instruction pursuant to paragraph (e) below with respect to such trust account) shall give all requisite instructions to the bank with whom that trust account is held to transfer the amount of such payment (together with any accrued interest thereon) to the successor Agent for distribution in accordance with Clause 25.2 (Distributions by the Agent).

 

(e)                         A Paying Party which has made a payment to a trust account (on account of any amount payable by such Paying Party to a Recipient Party) in accordance with this Clause 25.5 shall, promptly upon request by that Recipient Party and to the extent:

 

(i)                             that it has not given an instruction pursuant to paragraph (d) above (with respect to such trust account); and

 

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(ii)                          that it has been provided with the necessary information by that Recipient Party,

 

give all requisite instructions to the bank with whom such trust account is held to transfer such amount (so paid into and held in such account) together with any accrued interest thereon to that Recipient Party.

 

25.6                            Partial payments

 

(a)                           If the Agent receives a payment that is insufficient to discharge all the amounts then due and payable by the Borrower under the Finance Documents, the Agent shall apply that payment towards the obligations of the Borrower under the Finance Documents in the following order:

 

(i)                             first, in or towards payment pro rata of any unpaid amount owing to any Administrative Party under the Finance Documents;

 

(ii)                          secondly, in or towards payment pro rata of any accrued interest, fee (other than as provided in paragraph (i) above) or commission due but unpaid under the Finance Documents;

 

(iii)                       thirdly, in or towards payment pro rata of any principal due but unpaid under this agreement; and

 

(iv)                      fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents.

 

(b)                           The Agent shall, if so directed by the Majority Lenders, vary the order set out in paragraphs (a)(ii) to (a)(iv) above.

 

(c)                            Paragraphs (a) and (b) above will override any appropriation made by the Borrower.

 

25.7                            No set-off by the Borrower

 

All payments to be made by the Borrower under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

 

25.8                            Business Days

 

(a)                         Any payment under the Finance Documents which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).

 

(b)                         During any extension of the due date for payment of any principal or Unpaid Sum under this agreement, interest is payable on the principal or Unpaid Sum at the rate payable on the original due date.

 

25.9                            Currency of account

 

(a)                           Subject to paragraphs (b) to (d) below, US dollars is the currency of account and payment for any sum due from the Borrower under any Finance Document.

 

(b)                           Each payment of interest shall be made in the currency in which the sum in respect of which the interest is payable was denominated, pursuant to this agreement, when that interest accrued.

 

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(c)                            Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.

 

(d)                           Any amount expressed to be payable in a currency other than US dollars shall be paid in that other currency.

 

25.10                     Change of currency

 

(a)                        Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that country, then:

 

(i)                             any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Agent (after consultation with the Borrower); and

 

(ii)                          any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Agent (acting reasonably).

 

(b)                        If a change in any currency of a country occurs, this agreement will, to the extent the Agent (acting reasonably and after consultation with the Borrower) specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Market and otherwise to reflect the change in currency.

 

25.11                     Disruption to payment systems etc.

 

If either the Agent determines (in its discretion) that a Disruption Event has occurred or the Agent is notified by the Borrower that a Disruption Event has occurred:

 

(a)                        the Agent may, and shall if requested to do so by the Borrower, consult with the Borrower with a view to agreeing with the Borrower such changes to the operation or administration of the Facility as the Agent may deem necessary in the circumstances;

 

(b)                        the Agent shall not be obliged to consult with the Borrower in relation to any changes mentioned in paragraph (a) above if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation to agree to such changes;

 

(c)                         the Agent may consult with the Finance Parties in relation to any changes mentioned in paragraph (a) above but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances;

 

(d)                        any such changes agreed upon by the Agent and the Borrower shall (whether or not it is finally determined that a Disruption Event has occurred) be binding upon the Parties as an amendment to (or, as the case may be, waiver of) the terms of the Finance Documents notwithstanding the provisions of Clause 31 (Amendments and Waivers);

 

(e)                          the Agent shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever (including for negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 25.11; and

 

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(f)                             the Agent shall notify the Finance Parties of all changes agreed pursuant to paragraph (d) above.

 

26.                                   SET-OFF

 

A Finance Party may which on Event of Default is continuing set off any matured obligation due from the Borrower under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to the Borrower, regardless of the place of payment, booking branch or currency of either obligation.  If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.  Each Finance Party shall give notice to the Borrower including reasonable details of any such set-off or conversion promptly after such set-off or conversion.

 

27.                                   NOTICES

 

27.1                            Communications in writing

 

Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by email, fax or letter.

 

27.2                            Addresses

 

The email address, address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is:

 

(a)                           in the case of the Borrower, that identified with its name below;

 

(b)                           in the case of each Lender, that specified in Part II of Schedule 1 (The Original Parties) or as notified in writing to the Agent on or prior to the date on which it becomes a Party;

 

(c)                            in the case of the Agent, that identified with its name below; and

 

(d)                           in the case of each MLAB, that specified in Part I of Schedule 1 (The Original Parties),

 

or any substitute email address, address, fax number or department or officer as the Party may notify to the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent) by not less than five Business Days’ notice.

 

Address for service of communications:

 

	
Borrower:
    	
 
    	
Address:
    	
 
    	
8/F, Chuang’s Tower, 30-32 Connaught Road Central, Central, Hong   Kong
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Email:
    	
 
    	
carycheng@corp.netease.com /zhulili@corp.netease.com/keithlo@corp.netease.com
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Fax:
    	
 
    	
+852 2791 5572
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Agent:
    	
 
    	
Address:
    	
 
    	
50/F., Champion Tower, 3 Garden Road, Hong Kong
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Email:
    	
 
    	
apac.loansagency@citi.com/apac.rla.ca@citi.com/ jessica.wl.li@citi.com/Caspar.chang@citi.com/Rufus.southwood@citi.com   / Joanne.chan@citi.com / edmond.pang@citi.com
    

 

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Fax:
    	
 
    	
+852 2621 3183
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Tel:
    	
 
    	
+852 2306   6843 / 2306 6636
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attn:
    	
 
    	
Jessica   Li / Edmond Pang
    

 

27.3                            Delivery

 

(a)                        Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will be effective:

 

(i)                             if by way of fax, only when received in legible form; or

 

(ii)                          if by way of letter, only when it has been left at the relevant address or five Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address;

 

and, if a particular department or officer is specified as part of its address details provided under Clause 27.2 (Addresses), if addressed to that department or officer.

 

(b)                        Any communication or document to be made or delivered to the Agent will be effective only when actually received by the Agent and then only if it is expressly marked for the attention of the department or officer identified with the Agent’s signature below (or any substitute department or officer as the Agent shall specify for this purpose).

 

(c)                         All notices from or to the Borrower shall be sent through the Agent.

 

(d)                        Any communication or document which becomes effective, in accordance with paragraphs (a) to (c) above, after 5 pm in the place of receipt shall be deemed only to become effective on the following day.

 

27.4                            Notification of address and fax number

 

Promptly upon changing its address or fax number, the Agent shall notify the other Parties.

 

27.5                            Electronic communication

 

(a)                        Any communication to be made between any two Parties under or in connection with the Finance Documents may be made by electronic mail or other electronic means (including by way of posting to a secure website) if those two Parties:

 

(i)                             notify each other in writing of their electronic mail address and/or any other information required to enable the transmission of information by that means; and

 

(ii)                          notify each other of any change to their address or any other such information supplied by them by not less than five Business Days’ notice.

 

(b)                        Any such electronic communication as specified in paragraph (a) above to be made between the Borrower and a Finance Party may only be made in that way to the extent that those two Parties agree that, unless and until notified to the contrary, this is to be an accepted form of communication.

 

(c)                         Any such electronic communication as specified in paragraph (a) above made between any two Parties will be effective only when actually received (or made available) in readable form and in the case of any electronic communication made 

 

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by a Party to the Agent only if it is addressed in such a manner as the Agent shall specify for this purpose.

 

(d)                        Any electronic communication which becomes effective, in accordance with paragraph (c) above, after 5 pm in the place in which the Party to whom the relevant communication is sent or made available has its address for the purpose of this agreement shall be deemed only to become effective on the following day.

 

(e)                         Any reference in a Finance Document to a communication being sent or received shall be construed to include that communication being made available in accordance with this Clause 27.5.

 

27.6                            Communication when Agent is an Impaired Agent

 

If the Agent is an Impaired Agent the Parties may, instead of communicating with each other through the Agent, communicate with each other directly and (while the Agent is an Impaired Agent) all the provisions of the Finance Documents which require communications to be made or notices to be given to or by the Agent shall be varied so that communications may be made and notices given to or by the relevant Parties directly.  This provision shall not operate after a replacement Agent has been appointed to replace such Impaired Agent.

 

27.7                            English language

 

(a)                        Any notice given under or in connection with any Finance Document must be in English.

 

(b)                        All other documents provided under or in connection with any Finance Document must be:

 

(i)                             in English; or

 

(ii)                          if not in English, and if so required by the Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document.

 

28.                                   CALCULATIONS AND CERTIFICATES

 

28.1                            Accounts

 

In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate.

 

28.2                            Certificates and determinations

 

Any certification or determination by a Finance Party of a rate or amount under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

 

28.3                            Day count convention

 

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 days or, in any case where the practice in the Relevant Market differs, in accordance with that market practice.

 

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29.                                   PARTIAL INVALIDITY

 

If, at any time, any provision of a Finance Document is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.

 

30.                                   REMEDIES AND WAIVERS

 

No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right or remedy under a Finance Document shall operate as a waiver of any such right or remedy or constitute an election to affirm any of the Finance Documents.  No election to affirm any Finance Document on the part of any Finance Party shall be effective unless it is in writing.  No single or partial exercise of any right or remedy shall prevent any further or other exercise or the exercise of any other right or remedy.  The rights and remedies provided in each Finance Document are cumulative and not exclusive of any rights or remedies provided by law.

 

31.                                   AMENDMENTS AND WAIVERS

 

31.1                            Required consents

 

(a)                           Subject to Clause 31.2 (All-Lender matters) and Clause 31.3 (Other exceptions), any term of the Finance Documents (other than any Fee Letter) may be amended or waived only in writing and with the consent of the Majority Lenders and the Borrower and any such amendment or waiver will be binding on all Parties.

 

(b)                           The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause 31.

 

31.2                            All-Lender matters

 

An amendment or waiver that has the effect of changing or which relates to:

 

(a)                           the definition of “Majority Lenders” or “Super Majority Lenders” in Clause 1.1 (Definitions);

 

(b)                           an extension to the date of payment of any amount under the Finance Documents;

 

(c)                            a reduction in the Margin or a reduction in the amount of, or any change in the currency of, any payment of principal, interest, fees or commission payable;

 

(d)                           an increase in, or any change in the currency of, any Commitment, an extension of any Availability Period or any requirement that a cancellation of Commitments reduces the Commitments of the Lenders rateably under the Facility;

 

(e)                            any provision which expressly requires the consent of all the Lenders;

 

(f)                             a change to the Borrower; or

 

(g)                            Clause 2.2 (Finance Parties’ rights and obligations), Clause 7.7 (Application of prepayments), Clause 22 (Changes to the Parties), Clause 24 (Sharing among the Finance Parties), this Clause 31, Clause 38 (Governing Law), or Clause 39.1 (Jurisdiction of Hong Kong courts),

 

shall not be made without the prior consent of all the Lenders.

 

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31.3                            Other exceptions

 

An amendment or waiver which relates to the rights or obligations of an Administrative Party (each in their capacity as such) may not be effected without the consent of that Administrative Party, as the case may be.

 

31.4                            Excluded Commitment

 

If any Lender fails to respond to a request for any consent, waiver, amendment of or in relation to any term of any Finance Document or any instruction or vote relating to any other matter under any Finance Document within 20 Business Days of that request being made, then (unless the Borrower and the Agent agree to a longer time period in relation to such request):

 

(a)                           such Lender’s Commitment and such Lender’s participation in any Loan shall not be included for the purpose of calculating the Commitments of the Lenders, or participations of the Lenders in any or all of the Loans when ascertaining whether the consent, instruction or vote of Lenders holding any applicable percentage (including, for the avoidance of doubt, unanimity) of the Commitments and/or participations in any or all of the Loans has been obtained to approve that request; and

 

(b)                           its status as a Lender shall be disregarded for the purpose of ascertaining whether the agreement of all of the Lenders or any specified group of Lenders has been obtained to approve that request.

 

31.5                            Replacement of Screen Rate

 

(a)                           Subject to Clause 31.3 (Other exceptions), if a Screen Rate Replacement Event has occurred in relation to the Screen Rate, any amendment or waiver which relates to:

 

(i)                               providing for the use of a Replacement Benchmark; and

 

(ii)

 

(A)                         aligning any provision of any Finance Document to the use of that Replacement Benchmark;

 

(B)                         enabling that Replacement Benchmark to be used for the calculation of interest under this agreement (including, without limitation, any consequential changes required to enable that Replacement Benchmark to be used for the purposes of this Agreement);

 

(C)                         implementing market conventions applicable to that Replacement Benchmark;

 

(D)                         providing for appropriate fallback (and market disruption) provisions for that Replacement Benchmark; or

 

(E)                          adjusting the pricing to reduce or eliminate, to the extent reasonably practicable, any transfer of economic value from one Party to another as a result of the application of that Replacement Benchmark (and if any adjustment or method for calculating any adjustment has been formally designated, nominated or recommended by the Relevant Nominating Body, the adjustment shall be determined on the basis of that designation, nomination or recommendation),

 

may be made with the consent of the Agent (acting on the instructions of the Majority Lenders) and the Borrower.

 

87

 

(b)                           If any Lender fails to respond to a request for an amendment or waiver described in paragraph (a) above within 20 Business Days (or such longer time period in relation to any request which the Borrower and the Agent may agree) of that request being made:

 

(i)                               its Commitment(s) shall not be included for the purpose of calculating the Total Commitments when ascertaining whether any relevant percentage of Total Commitments has been obtained to approve that request; and

 

(ii)                            its status as a Lender shall be disregarded for the purpose of ascertaining whether the agreement of any specified group of Lenders has been obtained to approve that request.

 

32.                                   CONFIDENTIAL INFORMATION

 

32.1                            Confidentiality

 

Each Finance Party agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause 32.2 (Disclosure of Confidential Information) and Clause 32.3 (Disclosure to numbering service providers), and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information.

 

32.2                            Disclosure of Confidential Information

 

Any Finance Party may disclose:

 

(a)                           to any of its Affiliates and Related Funds and any of its or their officers, directors, employees, professional advisers, insurance providers, service providers, partners and Representatives such Confidential Information as that Finance Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this paragraph (a) is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;

 

(b)                           to any person:

 

(i)                               to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents or which succeeds (or which may potentially succeed) it as Agent and, in each case, to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

(ii)                            with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference to, one or more Finance Documents and/or the Borrower and to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

(iii)                         appointed by any Finance Party or by a person to whom paragraph (i) or (ii) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf (including any person appointed under paragraph (b) of Clause 23.14 (Relationship with the Lenders));

 

88

 

(iv)                        who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in paragraph (i) or (ii) above;

 

(v)                           to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation;

 

(vi)                        to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes;

 

(vii)                     to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 22.13 (Security over Lenders’ rights);

 

(viii)                  who is a Party; or

 

(ix)                        with the consent of the Borrower;

 

in each case, such Confidential Information as that Finance Party shall consider appropriate if:

 

(A)                         in relation to paragraphs (i), (ii) and (iii) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information;

 

(B)                         in relation to paragraph (iv) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information; or

 

(C)                         in relation to paragraphs (v), (vi) and (vii) above, the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Finance Party, it is not practicable so to do in the circumstances; and

 

(c)                            to any person appointed by that Finance Party or by a person to whom paragraph (b)(i) or (b)(ii) above applies to provide administration or settlement services in respect of one or more of the Finance Documents including in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this paragraph (c) if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Borrower and the relevant Finance Party; and

 

(d)                           to any rating agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such rating agency to 

 

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carry out its normal rating activities in relation to the Finance Documents and/or the Borrower if the rating agency to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information.

 

32.3                            Disclosure to numbering service providers

 

(a)                           Any Finance Party may disclose to any national or international numbering service provider appointed by that Finance Party to provide identification numbering services in respect of this Agreement, the Facility and/or the Borrower the following information:

 

(i)                               names of the Borrower;

 

(ii)                            country of domicile of the Borrower;

 

(iii)                         place of incorporation of the Borrower;

 

(iv)                        date of this Agreement;

 

(v)                           Clause 38 (Governing Law);

 

(vi)                        the names of the Agent and the MLABs;

 

(vii)                     date of each amendment and restatement of this Agreement;

 

(viii)                  amounts of, and names of, the Facility (and any tranches);

 

(ix)                        amount of Total Commitments;

 

(x)                           currency of the Facility;

 

(xi)                        type of the Facility;

 

(xii)                     Final Repayment Date for the Facility;

 

(xiii)                  changes to any of the information previously supplied pursuant to paragraphs (i) to (xii) above; and

 

(xiv)                 such other information agreed between such Finance Party and the Borrower,

 

to enable such numbering service provider to provide its usual syndicated loan numbering identification services.

 

(b)                           The Parties acknowledge and agree that each identification number assigned to this agreement, the Facility and/or the Borrower by a numbering service provider and the information associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider.

 

(c)                            The Borrower represents that none of the information set out in paragraphs (a)(i) to (a)(xiv) above is, nor will at any time be, unpublished price-sensitive information.

 

(d)                           The Agent shall notify the Borrower and the other Finance Parties of:

 

(i)                               the name of any numbering service provider appointed by the Agent in respect of this agreement, the Facility and/or the Borrower; and

 

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(ii)                            the number or, as the case may be, numbers assigned to this agreement, the Facility and/or the Borrower by such numbering service provider.

 

32.4                            Entire agreement

 

This Clause 32 constitutes the entire agreement between the Parties in relation to the obligations of the Finance Parties under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.

 

32.5                            Inside information

 

Each of the Finance Parties acknowledges that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and each of the Finance Parties undertakes not to use any Confidential Information for any unlawful purpose.

 

32.6                            Notification of disclosure

 

Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform the Borrower:

 

(a)                           of the circumstances of any disclosure of Confidential Information made pursuant to paragraph (b)(v) of Clause 32.2 (Disclosure of Confidential Information) except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and

 

(b)                           upon becoming aware that Confidential Information has been disclosed in breach of this Clause 32.

 

32.7                            Continuing obligations

 

The obligations in this Clause 32 are continuing and, in particular, shall survive and remain binding on each Finance Party for a period of 12 months from the earlier of:

 

(a)                           the date on which all amounts payable by the Borrower under or in connection with this agreement have been paid in full and all Commitments have been cancelled or otherwise cease to be available; and

 

(b)                           the date on which such Finance Party otherwise ceases to be a Finance Party.

 

33.                                   CONFIDENTIALITY OF FUNDING RATES

 

33.1                            Confidentiality and disclosure

 

(a)                           The Agent and the Borrower agree to keep each Funding Rate confidential and not to disclose it to anyone, save to the extent permitted by paragraphs (b) and (c) below.

 

(b)                           The Agent may disclose:

 

(i)                               any Funding Rate to the Borrower pursuant to Clause 8.4 (Notification of rates of interest); and

 

(ii)                            any Funding Rate to any person appointed by it to provide administration services in respect of one or more of the Finance Documents to the extent necessary to enable such service provider to provide those services if the service provider to whom that information is to be given has entered into a 

 

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confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers  or such other form of confidentiality undertaking agreed between the Agent and the relevant Lender.

 

(c)                            The Agent may disclose any Funding Rate, and the Borrower may disclose any Funding Rate, to:

 

(i)                               any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives if any person to whom that Funding Rate is to be given pursuant to this paragraph (i) is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of that Funding Rate or is otherwise bound by requirements of confidentiality in relation to it;

 

(ii)                            any person to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation if the person to whom that Funding Rate is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Agent or the Borrower, as the case may be, it is not practicable to do so in the circumstances;

 

(iii)                         any person to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes if the person to whom that Funding Rate is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Agent or the Borrower, as the case may be, it is not practicable to do so in the circumstances; and

 

(iv)                        any person with the consent of the relevant Lender.

 

33.2                            Related obligations

 

(a)                           The Agent and the Borrower acknowledge that each Funding Rate is or may be price-sensitive information and that its use may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and the Agent and the Borrower undertake not to use any Funding Rate for any unlawful purpose.

 

(b)                           The Agent and the Borrower agree (to the extent permitted by law and regulation) to inform the relevant Lender:

 

(i)                               of the circumstances of any disclosure made pursuant to paragraph (c)(ii) of Clause 33.1 (Confidentiality and disclosure) except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and

 

(ii)                            upon becoming aware that any information has been disclosed in breach of this Clause 33.

 

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33.3                            No Event of Default

 

No Event of Default will occur under Clause 21.3 (Other obligations) by reason only of the Borrower’s failure to comply with this Clause 33.

 

34.                                   RESTRICTIONS ON DEBT PURCHASE TRANSACTIONS

 

34.1                            Prohibition on Debt Purchase Transactions

 

The Borrower shall not, and the Borrower shall procure that (except with the prior written consent of the Agent (acting on the instructions of all of the Lenders)) no member of the Group or any Affiliate of any member of the Group shall:

 

(a)                           enter into any Debt Purchase Transaction; or

 

(b)                           be:

 

(i)                               a Lender; or

 

(ii)                            a party to a Debt Purchase Transaction of the type referred to in any of paragraphs (b) or (c) of the definition of “Debt Purchase Transaction”.

 

34.2                            Notification to other Lenders of Debt Purchase Transactions

 

Without prejudice to Clause 34.1 (Prohibition on Debt Purchase Transactions) and Clause 22.12 (Assignments and transfers to members of the Group), any member of the Group or any Affiliate of any member of the Group which is or becomes a Lender or which enters into a Debt Purchase Transaction as a purchaser, an acquiror or a participant (or similar capacity) shall, by 5.00 pm on the Business Day following the day on which it entered into that Debt Purchase Transaction, notify the Agent of the extent of the Commitment(s), any Loan or any amount(s) outstanding to which that Debt Purchase Transaction relates.  The Agent shall promptly disclose such information to the Lenders.

 

35.                                   COUNTERPARTS

 

Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document.

 

36.                                   U.S.A. PATRIOT ACT

 

Each Lender hereby notifies the Borrower that pursuant to the requirements of the U.S.A. Patriot Act, such Lender is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the U.S.A. Patriot Act.

 

37.                                   BAIL-IN

 

37.1                            Contractual recognition of bail-in

 

Notwithstanding any other term of any Finance Document or any other agreement, arrangement or understanding between the Parties, each Party acknowledges and accepts that any liability of any Party to any other Party under or in connection with the Finance Documents may be subject to Bail-In Action by the relevant Resolution Authority and acknowledges and accepts to be bound by the effect of:

 

(a)                           any Bail-In Action in relation to any such liability, including (without limitation):

 

93

 

(i)                               a reduction, in full or in part, in the principal amount, or outstanding amount due (including any accrued but unpaid interest) in respect of any such liability;

 

(ii)                            a conversion of all, or part of, any such liability into shares or other instruments of ownership that may be issued to, or conferred on, it; and

 

(iii)                         a cancellation of any such liability; and

 

(b)                           a variation of any term of any Finance Document to the extent necessary to give effect to any Bail-In Action in relation to any such liability.

 

37.2                            Bail-In definitions

 

In this Clause 37:

 

Bail-In Action means the exercise of any Write-down and Conversion Powers.

 

Bail-In Legislation means in relation to an EEA Member Country which has implemented, or which at any time implements, Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms, the relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time.

 

EEA Member Country means any member state of the European Union, Iceland, Liechtenstein and Norway.

 

EU Bail-In Legislation Schedule means the document described as such and published by the Loan Market Association (or any successor person) from time to time.

 

Resolution Authority means any body which has authority to exercise any Writedown and Conversion Powers.

 

Write-down and Conversion Powers means, in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule from time to time, the powers described as such in relation to that Bail-In Legislation in the EU Bail-In Legislation Schedule.

 

38.                                   GOVERNING LAW

 

This agreement is governed by the laws of Hong Kong.

 

39.                                   ENFORCEMENT

 

39.1                            Jurisdiction of Hong Kong courts

 

(a)                           The courts of Hong Kong have exclusive jurisdiction to settle any dispute arising out of or in connection with this agreement (including any dispute regarding the existence, validity or termination of this agreement) (a Dispute).

 

(b)                           The Parties agree that the courts of Hong Kong are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary.

 

(c)                            This Clause 39.1 is for the benefit of the Finance Parties only.  As a result, no Finance Party shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction.  To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions.

 

94

 

39.2                            Service of process

 

Without prejudice to any other mode of service allowed under any relevant law, the Borrower:

 

(a)                           irrevocably appoints Hong Kong NetEase Interactive Entertainment Limited as its agent for service of process in relation to any proceedings before the Hong Kong courts in connection with any Finance Document; and

 

(b)                           agrees that failure by a process agent to notify the Borrower of the process will not invalidate the proceedings concerned.

 

39.3                            Waiver of immunities

 

The Borrower irrevocably waives, to the extent permitted by applicable law, with respect to itself and its revenues and assets (irrespective of their use or intended use), all immunity on the grounds of sovereignty or other similar grounds from:

 

(a)                           suit;

 

(b)                           jurisdiction of any court;

 

(c)                            relief by way of injunction or order for specific performance or recovery of property;

 

(d)                           attachment of its assets (whether before or after judgment); and

 

(e)                            execution or enforcement of any judgment to which it or its revenues or assets might otherwise be entitled in any proceedings in the courts of any jurisdiction (and irrevocably agrees, to the extent permitted by applicable law, that it will not claim any immunity in any such proceedings).

 

40.                                   WAIVER OF JURY TRIAL

 

Each of the parties to this agreement agrees to waive irrevocably its rights to a jury trial of any claim based upon or arising out of this agreement or any of the documents referred to in this agreement or any transaction contemplated in this agreement.  This waiver is intended to apply to all disputes.  Each Party acknowledges that (a) this waiver is a material inducement to enter into this agreement, (b) it has already relied on this waiver in entering into this agreement and (c) it will continue to rely on this waiver in future dealings.  Each party represents that it has reviewed this waiver with its legal advisers and that it knowingly and voluntarily waives its jury trial rights after consultation with its legal advisers.  In the event of litigation, this agreement may be filed as a written consent to a trial by the court.

 

This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

95

 

SCHEDULE 1

 

The Original Parties

 

PART I
 THE MLABs

 

	
Name of MLAB
    	
 
    	
Notice details
    
	
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
    	
 
    	
Address: 22/F Three Exchange Square, 8 Connaught   Place, Central, Hong Kong

Fax: +852 3918 7138

Email: Cindy.xin@anz.com / reina.shi@anz.com   / HKLendingOps-Institutional@anz.com
    
	
CITIGROUP GLOBAL MARKETS ASIA LIMITED
    	
 
    	
Address: 47/F Champion Tower, 3 Garden Road,   Central Hong Kong

Fax: +852 2521 8725

Email: vincent.yeung@citi.com / clement.chen@citi.com
    
	
DBS BANK LTD.
    	
 
    	
Address: 18/F, The Center, 99 Queen’s Road   Central, Central, Hong Kong

Fax: +852 2259 5364

Email: angeloleung@dbs.com / michelleleepc@dbs.com   / carlcheuk@dbs.com

Attention: Angelo Leung / Michelle Lee / Carl   Cheuk
    
	
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED
    	
 
    	
Address: The Hongkong and Shanghai Banking   Corporation Limited, Level 17, HSBC Main Building, 1 Queen’s Road Central,   Hong Kong

Fax: +852 3409 2755

Attn: Transaction Management
    

 

	
Name of Original Lender
    	
 
    	
Notice details
    	
 
    	
Commitment
    
	
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
    	
 
    	
Address: 22/F Three Exchange Square, 8 Connaught   Place, Central, Hong Kong

Fax: +852 3918 7138

Email: Cindy@anz.com / reina.shi@anz.com   / HKLendingOps-Institutional@anz.com

Attention: Cindy Xin / Reina Shi / Ginny Wong
    	
 
    	
US$125,000,000
    
	
CITIBANK, N.A., HONG KONG BRANCH
    	
 
    	
Address: 49/F, Champion Tower, Three Garden   Road, Central, Hong Kong

Fax: +852 3009 0299

Email: Angela.ph.fuh@citi.com /
    	
 
    	
US$125,000,000
    

 

96

 

PART II
 THE ORIGINAL LENDERS

 

	
 
    	
 
    	
Megan.chan@citi.com / aaron.xu@citi.com /   evelyn.zhu@citi.com

Attention: Angela Fuh / Megan Chan / Aaron Xu /   Evelyn Zhu
    	
 
    	
 
    
	
DBS BANK LTD., HONG KONG BRANCH
    	
 
    	
Address: 18/F, The Center, 99 Queen’s Road   Central, Central, Hong Kong

Fax: +852 2259 5364

Email: angeloleung@dbs.com / michelleleepc@dbs.com   / carlcheuk@dbs.com

Attention: Angelo Leung / Michelle Lee / Carl   Cheuk
    	
 
    	
US$125,000,000
    
	
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED
    	
 
    	
Credit related matters

Address: L9, HSBC Main Building, 1 Queen’s Road   Central, Hong Kong
    Tel: +852 2284 1452 / 2822 1797

Email: shawn.s.h.li@hsbc.com.hk / patrick.y.x.yuan@hsbc.com.hk

Attention: Shawn Li / Patrick Yuan

Operation related matters

Address: 8/F Tower 3 HSBC Centre, 1 Sham Mong   Road,Tai Kok Tsui,Kowloon

Tel: +852 2288 2537

Fax: +852 3478 9136

Email: loanscomm@hsbc.com.cn

Attention: Jennifer Zhou/ Melody Zhao/Winnie   Zhu/Nicole Li
    	
 
    	
US$125,000,000
    
	
Total
    	
 
    	
 
    	
 
    	
US$500,000,000
    

 

97

 

SCHEDULE 2

 

Conditions Precedent

 

CONDITIONS PRECEDENT TO INITIAL UTILISATION

 

1.                                          Borrower

 

(a)                           A copy of the constitutional documents of the Borrower.

 

(b)                           A certified extract of a resolution of the board of directors of the Borrower:

 

(i)                               approving the terms of, and the transactions contemplated by, the Finance Documents and resolving that it execute the Finance Documents;

 

(ii)                            authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf;

 

(iii)                         authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Utilisation Request) to be signed and/or despatched by it under or in connection with the Finance Documents.

 

(c)                            A specimen of the signature of each person authorised by the resolution referred to in paragraph (b) above.

 

(d)                           A certificate from the Borrower (signed by an authorized signatory) confirming that borrowing or guaranteeing, as appropriate, the Total Commitments would not cause any borrowing, guaranteeing or similar limit binding on it to be exceeded.

 

(e)                            A certificate of an authorised signatory of the Borrower certifying that each copy document relating to it specified in Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of this agreement.

 

2.                                          Legal opinions

 

(a)                           A legal opinion in relation to Hong Kong law from Ashurst addressed to the MLABs, the Agent and the Original Lenders, substantially in the form distributed to the MLABs prior to signing this agreement.

 

(b)                           A legal opinion as to the laws of the Cayman Islands from Walkers addressed to the MLABs, the Agent and the Original Lenders, substantially in the form distributed to the MLABs prior to signing this agreement.

 

3.                                          Other documents and evidence

 

(a)                           Evidence that the process agent referred to in Clause 39.2 (Service of process) has accepted its appointment.

 

(b)                           The Original Financial Statements of the Borrower.

 

(c)                            Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 11 (Fees) and Clause 16 (Costs and Expenses) have been paid or will be paid by the first Utilisation Date.

 

(d)                           All documentation required in order for each Original Lender (as at the date of this agreement) to comply with applicable “know your client” or “client vetting” procedures and the anti-money laundering regulations of each Original Lender.

 

98

 

SCHEDULE 3

 

Utilisation Request

 

	
From:
    	
 
    	
NetEase, Inc. as Borrower
    
	
 
    	
 
    	
 
    
	
To:
    	
 
    	
Citicorp International Limited as Agent
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    

 

Dear Sirs

 

NetEase, Inc. — US$500,000,000 Syndicated Facility Agreement
 dated [           ] (the “Facility Agreement”)

 

1.                                          We refer to the Facility Agreement.  This is a Utilisation Request.  Terms defined in the Facility Agreement shall have the same meaning in this Utilisation Request.

 

2.                                          We wish to borrow a Loan on the following terms:

 

	
Proposed Utilisation Date:
    	
 
    	
[                    ] (or, if that is not a Business Day, the next Business Day)
    
	
 
    	
 
    	
 
    
	
Amount:
    	
 
    	
[     ] or, if less, the Available   Facility
    
	
 
    	
 
    	
 
    
	
Interest Period:
    	
 
    	
[           ]
    

 

3.                                          We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Utilisation Request.

 

4.                                          [This Loan is to be made in [whole]/[part] for the purpose of refinancing [identify maturing Loan]/[The proceeds of this Loan should be credited to [account].]

 

5.                                          This Utilisation Request is irrevocable.

 

 

	
Yours faithfully
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Authorised signatory for
    	
 
    
	
 
    	
 
    
	
NetEase, Inc.
    	
 
    

 

99

 

SCHEDULE 4

 

Form of Transfer Certificate

 

	
To:
    	
 
    	
Citicorp International Limited as Agent
    
	
 
    	
 
    	
 
    
	
From:
    	
 
    	
[The Existing Lender] (the Existing Lender) and [The New Lender]   (the New Lender)
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    

 

NetEase, Inc. — US$500,000,000 Syndicated Facility Agreement
 dated [           ] (the “Facility Agreement”)

 

1.                                          We refer to Clause 22.5 (Procedure for transfer) of the Facility Agreement.  This is a Transfer Certificate.  Terms used in the Facility Agreement shall have the same meaning in this Transfer Certificate.

 

2.                                          The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation, and in accordance with Clause 22.5 (Procedure for transfer), all of the Existing Lender’s rights and obligations under the Facility Agreement and the other Finance Documents which relate to that portion of the Existing Lender’s Commitment(s) and participations in Loans under the Facility Agreement as specified in the Schedule.

 

3.                                          The proposed Transfer Date is [            ].

 

4.                                          The Facility Office and address, fax number and attention particulars for notices of the New Lender for the purposes of Clause 27.2 (Addresses) are set out in the Schedule.

 

5.                                          The New Lender expressly acknowledges:

 

(a)                           the limitations on the Existing Lender’s obligations set out in paragraphs (a) and (c) of Clause 22.4 (Limitation of responsibility of Existing Lenders); and

 

(b)                           that it is the responsibility of the New Lender to ascertain whether any document is required or any formality or other condition requires to be satisfied to effect or perfect the transfer contemplated by this Transfer Certificate or otherwise to enable the New Lender to enjoy the full benefit of each Finance Document.

 

6.                                          The New Lender confirms that it is a “New Lender” within the meaning of Clause 22.1 (Assignments and transfers by the Lenders).

 

7.                                          The Existing Lender and the New Lender confirm that the New Lender is not an Affiliate of the Borrower and not a person as listed in Clause 22.2(b) (Conditions of assignment or transfer).

 

8.                                          This Transfer Certificate may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Transfer Certificate.

 

9.                                          This Transfer Certificate is governed by the laws of Hong Kong.

 

10.                                   This Transfer Certificate has been entered into on the date stated at the beginning of this Transfer Certificate.

 

100

 

THE SCHEDULE

 

Commitment/rights and obligations to be transferred

 

[insert relevant details]

 

[Facility office address, fax number and attention details for notices and account details for payments]

 

 

	
[Existing Lender]
    	
[New Lender]
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
By:
    
	
 
    	
 
    
	
 
    	
 
    

 

This Transfer Certificate is executed by the Agent and the Transfer Date is confirmed as [           ].

 

	
[the Agent]
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

Note:                  It is the New Lender’s responsibility to ascertain whether any other document is required, or any formality or other condition is required to be satisfied, to effect or perfect the transfer contemplated in this Transfer Certificate or to give the New Lender full enjoyment of all the Finance Documents.

 

101

 

SCHEDULE 5

 

Form of Assignment Agreement

 

	
To:
    	
 
    	
Citicorp International Limited as Agent and NetEase, Inc.   as Borrower
    
	
 
    	
 
    	
 
    
	
From:
    	
 
    	
[the Existing Lender] (the Existing Lender) and [the New Lender]   (the New Lender)
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
[insert date]
    

 

NetEase, Inc. — US$500,000,000 Syndicated Facility Agreement
 dated [      ] (the “Facility Agreement”)

 

1.                                          We refer to the Facility Agreement.  This is an Assignment Agreement.  Terms defined in the Facility Agreement have the same meaning in this Assignment Agreement unless given a different meaning in this Assignment Agreement.

 

2.                                          We refer to Clause 22.6 (Procedure for assignment) of the Facility Agreement:

 

(a)                           The Existing Lender assigns absolutely to the New Lender all the rights of the Existing Lender under the Facility Agreement and the other Finance Documents which relate to that portion of the Existing Lender’s Commitment(s) and participations in Loans under the Facility Agreement as specified in the Schedule.

 

(b)                           The Existing Lender is released from all the obligations of the Existing Lender which correspond to that portion of the Existing Lender’s Commitment(s) and participations in Loans under the Facility Agreement specified in the Schedule.

 

(c)                            The New Lender becomes a Party as a Lender and is bound by obligations equivalent to those from which the Existing Lender is released under paragraph (b) above.

 

3.                                          The proposed Transfer Date is [      ].

 

4.                                          On the Transfer Date, the New Lender becomes Party to the Finance Documents as a Lender.

 

5.                                          The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 27.2 (Addresses) of the Facility Agreement are set out in the Schedule.

 

6.                                          The New Lender expressly acknowledges:

 

(a)                           the limitations on the Existing Lender’s obligations set out in paragraphs (a) and (c) of Clause 22.4 (Limitation of responsibility of Existing Lenders) of the Facility Agreement; and

 

(b)                           that it is the responsibility of the New Lender to ascertain whether any document is required or any formality or other condition requires to be satisfied to effect or perfect the transfer contemplated by this Assignment Agreement or otherwise to enable the New Lender to enjoy the full benefit of each Finance Document.

 

102

 

7.                                          The New Lender confirms that it is a “New Lender” within the meaning of Clause 22.1 (Assignments and transfers by the Lenders).

 

8.                                          The Existing Lender and the New Lender confirm that the New Lender is not an Affiliate of the Borrower.

 

9.                                          This Assignment Agreement acts as notice to the Agent (on behalf of each Finance Party) and, upon delivery in accordance with Clause 22.7 of the Facility Agreement, to the Borrower of the assignment referred to in this Assignment Agreement.

 

10.                                   This Assignment Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Assignment Agreement.

 

11.                                   This Assignment Agreement is governed by the laws of Hong Kong.

 

12.                                   This Assignment Agreement has been entered into on the date stated at the beginning of this Assignment Agreement.

 

103

 

THE SCHEDULE

 

Rights to be assigned and obligations to be released and undertaken

 

[insert relevant details]

 

[Facility office address, fax number and attention details for notices and account details for payments]

 

	
[Existing Lender]
    	
[New Lender]
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
By:
    
	
 
    	
 
    
	
 
    	
 
    

 

This Assignment Agreement is accepted by the Agent and the Transfer Date is confirmed as [·].

 

Signature of this Assignment Agreement by the Agent constitutes confirmation by the Agent of receipt of notice of the assignment referred to herein, which notice the Agent receives on behalf of each Finance Party.

 

	
[Agent]
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

Note:                  It is the New Lender’s responsibility to ascertain whether any other document is required, or any formality or other condition is required to be satisfied, to effect or perfect the assignment/release/assumption of obligations contemplated in this Assignment Agreement or to give the New Lender full enjoyment of all the Finance Documents.

 

104

 

SCHEDULE 6

 

Form of Compliance Certificate

 

	
To:
    	
 
    	
Citicorp International Limited as Agent
    
	
 
    	
 
    	
 
    
	
From:
    	
 
    	
NetEase, Inc. as Borrower
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    

 

Dear Sirs

 

NetEase, Inc. — US$500,000,000 Syndicated Facility Agreement
 dated [       ] (the “Facility Agreement”)

 

1.                                          We refer to the Facility Agreement.  This is a Compliance Certificate.  Terms used in the Facility Agreement shall have the same meaning in this Compliance Certificate.

 

2.                                          We confirm that:  [Insert details of covenants to be certified including calculations]

 

3.                                          We confirm that the financial statements delivered with this Compliance Certificate [[in the case of any such financial statements which are audited] gives a true and fair view of / [in the case of any such financial statements which are unaudited] fairly represents] the consolidated financial condition and operations of the Group as at the end of and during the applicable period to which those financial statements relate.

 

4.                                          [We confirm that no Default is continuing.]1

 

 

	
Signed:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Authorised signatory
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
of
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
NetEase, Inc.
    	
 
    

 

 

[[insert applicable certification language]

 

1  If this statement cannot be made, the certificate should identify any Default that is continuing and the steps, if any, being taken to remedy it.

 

105

 

SCHEDULE 7

 

Timetables

 

	
Delivery of a duly completed   Utilisation Request (Clause 5.1 (Delivery of a Utilisation Request))
    	
 
    	
Three Business Days prior to the proposed Utilisation Date
    
	
 
    	
 
    	
 
    
	
Agent determines (in relation to a Utilisation) the amount of   the Loan, if required under Clause 5.4 (Lenders’ participation) and notifies   the Lenders of the Loan in accordance with Clause 5.4 (Lenders’   participation)
    	
 
    	
Two Business Days prior to the proposed Utilisation Date
    
	
 
    	
 
    	
 
    
	
LIBOR is fixed
    	
 
    	
Quotation Day as at 11 a.m. London time
    
	
 
    	
 
    	
 
    
	
Reference Bank Rate calculated by reference to available   quotations in accordance with Clause 10.2 (Calculation of Reference Bank   Rate)
    	
 
    	
Noon London time on the Quotation Day in respect of LIBOR
    

 

106

 

SCHEDULE 8

 

Form of Syndication Agreement

 

107

 

 

Syndication Agreement

 

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED, CITIGROUP GLOBAL MARKETS ASIA LIMITED, DBS BANK LTD. and THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

as MLABs

 

and

 

The persons listed in Schedule 2

as Existing Lenders

 

and

 

The persons listed in Schedule 3

as New Lenders

 

and

 

Citicorp International Limited

as Agent

 

NETEASE, INC.

 

                                               2018

 

 

CONTENTS

 

	
CLAUSE
    	
 
    	
 
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.
    	
INTERPRETATION
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
1.1
    	
Definitions
    	
 
    	
1
    
	
 
    	
1.2
    	
Construction and incorporation of terms
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
JOINING IN OF NEW LENDERS
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
2.1
    	
Transfer of rights and obligations
    	
 
    	
1
    
	
 
    	
2.2
    	
Amounts due on or before the Transfer Date
    	
 
    	
2
    
	
 
    	
2.3
    	
Contact details
    	
 
    	
3
    
	
 
    	
2.4
    	
Transfer fee
    	
 
    	
3
    
	
 
    	
2.5
    	
Consent
    	
 
    	
3
    
	
 
    	
2.6
    	
Limitation of responsibility of the Existing Lenders
    	
 
    	
3
    
	
 
    	
2.7
    	
Confirmation
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
NATURE OF THIS AGREEMENT
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
MISCELLANEOUS
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Schedule
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
1
    	
Transferred Commitment and Loans
    	
 
    	
5
    
	
2
    	
Existing Lenders
    	
 
    	
6
    
	
3
    	
New Lenders
    	
 
    	
7
    
	
4
    	
Notice details of New Lenders
    	
 
    	
8
    

 

 

THIS AGREEMENT is made on                                                  2018

 

BETWEEN:

 

(1)                                 AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED, CITIGROUP GLOBAL MARKETS ASIA LIMITED, DBS BANK LTD. and THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED as mandated lead arrangers and bookrunners (in this capacity, the MLABs);

 

(2)                                 THE FINANCIAL INSTITUTIONS listed in Schedule 2 (Existing Lenders) as existing Lenders (in this capacity, the Existing Lenders);

 

(3)                                 THE FINANCIAL INSTITUTIONS listed in Schedule 3 (New Lenders) as new Lenders (in this capacity, the New Lenders); and

 

(4)                                 CITICORP INTERNATIONAL LIMITED as agent of the Finance Parties (other than itself) as defined in the Facility Agreement (in this capacity, the Agent).

 

THE PARTIES AGREE AS FOLLOWS:

 

1.                                      INTERPRETATION

 

1.1                               Definitions

 

The following definitions apply in this document.

 

Borrower means NetEase, Inc., an exempted company incorporated with limited liability under the laws of the Cayman Islands with registration number 90896.

 

Facility Agreement means the Syndicated Facility Agreement dated                                   2018 between, among others, the Borrower, the MLABs and the Agent.

 

Transfer Date means 3 Business Days after the date of this Agreement. 

 

1.2                               Construction and incorporation of terms

 

(a)                                 Capitalised terms defined in the Facility Agreement have, unless expressly defined in this Agreement, the same meaning in this Agreement.

 

(b)                                 The provisions of clauses 1.2 (Construction), 1.3 (Currency symbols and definitions), 1.5 (Third party rights), 29 (Partial invalidity), 30 (Remedies and waivers) and 39 (Enforcement) of the Facility Agreement apply to this Agreement as though they were set out in full in this Agreement, except that references to the Facility Agreement are to be construed as references to this Agreement.

 

2.                                      JOINING IN OF NEW LENDERS

 

2.1                               Transfer of rights and obligations

 

The parties to this Agreement refer to Clause 22.5(a)(ii) (Procedure for transfer) of the Facility Agreement and agree that, on the Transfer Date (regardless of whether a Default is then outstanding):

 

(a)                                 each Existing Lender assigns absolutely to the New Lenders its rights under the Finance Documents which correspond to:

 

(i)                                     that Existing Lender’s Commitment as set out opposite its name in Part I of Schedule 1 (Transferred Commitment and Loans) so that the Commitment

 

1

 

of each Existing Lender after such transfer will be as set out opposite its name in Part I of Schedule 2 (Existing Lenders);

 

(ii)                                  that Existing Lender’s participation in the Loan(s) as set out opposite its name in Part II of Schedule 1 (Transferred Commitment and Loans) so that the participations in any Loans by each Existing Lender after such transfer will be as set out opposite its name in Part II of Schedule 2 (Existing Lenders);

 

(b)                                 each Existing Lender will be released from those of its obligations under the Facility Agreement which correspond to those of its rights assigned to the New Lenders under paragraph (a) above but will retain:

 

(i)                                     the Commitments set out opposite its name in Part I of Schedule 2 (Existing Lenders); and

 

(ii)                                  the participations in any Loans then outstanding set out opposite its name in Part II of Schedule 2 (Existing Lenders);

 

(c)                                  each New Lender will:

 

(i)                                     become a “Lender” under the Facility Agreement; and

 

(ii)                                  be bound by obligations to each other party to the Facility Agreement, equivalent to those from which the Existing Lender is released under paragraph (b) above, as if it was an Original Lender under the Facility Agreement; and

 

(d)                                 each New Lender must pay to the Agent to the following account such amount as advised by the Agent to it in respect of the share in the Loans transferred to it under this clause (being an amount equal to the principal amount of the Loans to be transferred to such New Lender [less the amount of any up-front fee such New Lender is entitled to receive as agreed between the Existing Lender and such New Lender]) for distribution by the Agent to the Existing Lenders in such amount as agreed between the Existing Lenders and the Agent in respect of the amount of the Loans of that Existing Lender which is assigned under paragraph (a) above:

 

	
Correspondent Bank:
    	
Citibank, N.A., New York Branch (SWIFT:CITIUS33)
    
	
 
    	
 
    
	
Beneficiary Bank:
    	
Citibank, N.A., Hong Kong Branch
    
	
 
    	
(SWIFT: CITIHKHX)
    
	
 
    	
 
    
	
Beneficiary Bank A/C No.:
    	
10990845
    
	
 
    	
 
    
	
Beneficiary Name:
    	
Citicorp International Limited
    
	
 
    	
 
    
	
Beneficiary A/C No.:
    	
5-888991-001
    
	
 
    	
 
    
	
Attention:
    	
Regional Loans Agency
    
	
 
    	
 
    
	
Reference:
    	
Netease Inc. 2018 – Syndication
    

 

2.2                               Amounts due on or before the Transfer Date

 

Any amounts payable to an Existing Lender by the Borrower on or prior to the Transfer Date will be for the account of that Existing Lender, and no New Lender will have any interest in, or any rights in respect of, those amounts.

 

2

 

2.3                               Contact details

 

The contact details of the New Lenders for the purposes of the Facility Agreement are set out opposite to its name in Schedule 4 (Notice details of New Lenders).

 

2.4                               Transfer fee

 

The Agent confirms that no transfer fees are payable to it under the Facility Agreement in respect of any transaction contemplated by this Agreement.

 

2.5                               Consent

 

Each of the parties to this Agreement confirms its consent to the New Lenders becoming Lenders under the Facility Agreement.

 

2.6                               Limitation of responsibility of the Existing Lenders

 

(a)                                 No Existing Lender makes any representation or warranty and assumes no responsibility to any New Lender for:

 

(i)                                     the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents;

 

(ii)                                  the financial condition of any member of the Group or any Affiliate of any member of the Group;

 

(iii)                               the performance and observance by the Borrower of its obligations under the Finance Documents or any other documents; or

 

(iv)                              the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document,

 

and any representations or warranties implied by law are excluded.

 

(b)                                 No Administrative Party is responsible or liable for:

 

(i)                                     the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by any Administrative Party, the Borrower or any other person given in or in connection with any Finance Document, the Information Memorandum or the transactions contemplated in the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document;

 

(ii)                                  the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; or

 

(iii)                               any determination as to whether any information provided or to be provided to any Finance Party is non-public information the use of which may be regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise.

 

(c)                                  Nothing in any Finance Document obliges an Existing Lender to:

 

(i)                                     accept a re-transfer from any New Lender of any of the rights and obligations transferred under this Agreement; or

 

3

 

(ii)                                  support any losses directly or indirectly incurred by a New Lender by reason of non-performance by the Borrower of its obligations under the Finance Documents, or otherwise.

 

2.7                               Confirmation

 

Each New Lender confirms that it:

 

(a)                                 has received a copy of each of the Finance Documents together with such other information as it has required in connection of this transaction and it is satisfied with such Finance Documents;

 

(b)                                 has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of the Borrower, members of the Group and their related entities in connection with its participation in this agreement and/or the other Finance Documents has not relied exclusively on any information provided to it by the Existing Lenders in connection with any Finance Document;

 

(c)                                  will continue to make its own independent appraisal of the creditworthiness of the Borrower, members of the Group and its related entities whilst any amount is or may be outstanding under the Finance Documents or any Commitment is in force;

 

(d)                                 shall be bound by any consent, waiver, election or decision given or made by the Existing Lenders under or pursuant to any Finance Document prior to the Transfer Date; and

 

(e)                                  is not an Affiliate of the Borrower and not a person as listed in clause 22.2(b) (Conditions of assignment or transfer) of the Facility Agreement.

 

3.                                      NATURE OF THIS AGREEMENT

 

This is the “Syndication Agreement” for the purposes of the Facility Agreement.

 

4.                                      MISCELLANEOUS

 

(a)                                 Clauses 38 (Governing Law) and 39 (Enforcement) of the Facility Agreement shall apply to this letter and shall be incorporated in this letter as if they had been set out in full herein mutatis mutandis.

 

(b)                                 This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

4

 

SCHEDULE 1

Transferred Commitment and Loans

Part I – Transferred Commitment

 

	
Name of   Existing Lender
    	
 
    	
Commitment (US dollars)
    	
 
    
	
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
    	
 
    	
$
    	
[·]
    	
 
    
	
CITIBANK, N.A.,   HONG KONG BRANCH
    	
 
    	
$
    	
[·]
    	
 
    
	
DBS BANK LTD.,   HONG KONG BRANCH
    	
 
    	
$
    	
[·]
    	
 
    
	
THE HONGKONG AND   SHANGHAI BANKING CORPORATION LIMITED
    	
 
    	
$
    	
[·]
    	
 
    
	
Total
    	
 
    	
$
    	
[·]
    	
 
    

 

Part II – Transferred Loans

 

	
Name of   Existing Lender
    	
 
    	
Loan (US dollars)
    	
 
    
	
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
    	
 
    	
$
    	
[·]
    	
 
    
	
CITIBANK, N.A.,   HONG KONG BRANCH
    	
 
    	
$
    	
[·]
    	
 
    
	
DBS BANK LTD.,   HONG KONG BRANCH
    	
 
    	
$
    	
[·]
    	
 
    
	
THE HONGKONG AND   SHANGHAI BANKING CORPORATION LIMITED
    	
 
    	
$
    	
[·]
    	
 
    
	
Total
    	
 
    	
$
    	
[·]
    	
 
    

 

5

 

SCHEDULE 2

Existing Lenders

Part I – Commitment of Existing Lenders as at Transfer Date

 

	
Name of Existing Lender
    	
 
    	
Commitment (US dollars)
    	
 
    
	
AUSTRALIA AND   NEW ZEALAND BANKING GROUP LIMITED
    	
 
    	
$
    	
[·]
    	
 
    
	
CITIBANK, N.A.,   HONG KONG BRANCH
    	
 
    	
$
    	
[·]
    	
 
    
	
DBS BANK LTD.,   HONG KONG BRANCH
    	
 
    	
$
    	
[·]
    	
 
    
	
THE HONGKONG AND   SHANGHAI BANKING CORPORATION LIMITED
    	
 
    	
$
    	
[·]
    	
 
    
	
Total
    	
 
    	
$
    	
[·]
    	
 
    

 

Part II – Loans held by Existing Lenders as at Transfer Date

 

	
Name of   Existing Lender
    	
 
    	
Loan (US dollars)
    	
 
    
	
AUSTRALIA AND   NEW ZEALAND BANKING GROUP LIMITED
    	
 
    	
$
    	
[·]
    	
 
    
	
CITIBANK, N.A.,   HONG KONG BRANCH
    	
 
    	
$
    	
[·]
    	
 
    
	
DBS BANK LTD.,   HONG KONG BRANCH
    	
 
    	
$
    	
[·]
    	
 
    
	
THE HONGKONG AND   SHANGHAI BANKING CORPORATION LIMITED
    	
 
    	
$
    	
[·]
    	
 
    
	
Total
    	
 
    	
$
    	
[·]
    	
 
    

 

6

 

SCHEDULE 3

New Lenders

Part I – Commitment of New Lenders as at Transfer Date

 

	
Name of New Lender
    	
 
    	
Commitment (US dollars)
    	
 
    
	
[insert name of New Lender]
    	
 
    	
$
    	
[·]
    	
 
    
	
[insert name of New Lender]
    	
 
    	
$
    	
[·]
    	
 
    
	
[insert name of New Lender]
    	
 
    	
$
    	
[·]
    	
 
    
	
[insert name of New Lender]
    	
 
    	
$
    	
[·]
    	
 
    
	
Total
    	
 
    	
$
    	
[·]
    	
 
    

 

Part II – Loans held by New Lenders as at Transfer Date

 

	
Name of New   Lender
    	
 
    	
Loan (US dollars)
    	
 
    
	
[insert name of New Lender]
    	
 
    	
$
    	
[·]
    	
 
    
	
[insert name of New Lender]
    	
 
    	
$
    	
[·]
    	
 
    
	
[insert name of New Lender]
    	
 
    	
$
    	
[·]
    	
 
    
	
[insert name of New Lender]
    	
 
    	
$
    	
[·]
    	
 
    
	
Total
    	
 
    	
$
    	
[·]
    	
 
    

 

7

 

SCHEDULE 4

Notice details of New Lenders

 

	
Name of New   Lender
    	
 
    	
Notice details
    	
 
    
	
[insert name of   New Lender]
    	
 
    	
[·]
    	
 
    
	
[insert name of   New Lender]
    	
 
    	
[·]
    	
 
    
	
[insert name of   New Lender]
    	
 
    	
[·]
    	
 
    
	
[insert name of New Lender]
    	
 
    	
[·]
    	
 
    

 

8

 

EXECUTED as an agreement.

 

 

MLABs

 

[Execution blocks for MLABs to be inserted]

 

 

Existing Lenders

 

[Execution blocks for Existing Lenders to be inserted]

 

 

New Lenders

 

[Execution blocks for New Lenders to be inserted]

 

 

Agent

 

[Execution block for Agent to be inserted]

 

 

SCHEDULE 9

 

Form of Increase Confirmation

 

To:                             Citicorp International Limited as Agent

 

From:               [the Increase Lender] (the “Increase Lender”)

 

Date:                  [*]

 

NetEase, Inc. — US$500 million Syndicated Facility Agreement (the “Facility Agreement”)

 

1.                                      We refer to the Facilities Agreement. This agreement (the “Agreement”) shall take effect as an Increase Confirmation for the purpose of the Facilities Agreement. Terms defined in the Facilities Agreement have the same meaning in this Agreement unless given a different meaning in this Agreement.

 

2.                                      We refer to Clause 2.2 (Increase) of the Facilities Agreement.

 

3.                                      The Increase Lender agrees to assume and will assume all of the obligations corresponding to the Commitment specified in the Schedule (the “Relevant Commitment”) as if it was an Original Lender under the Facilities Agreement.

 

4.                                      The proposed date on which the increase in relation to the Increase Lender and the Relevant Commitment is to take effect (the “Increase Date”) is [   ].

 

5.                                      On the Increase Date, the Increase Lender becomes party to the relevant Finance Documents as a Lender.

 

6.                                      The Facility Office and address, fax number and attention details for notices to the Increase Lender for the purposes of Clause 27.2 (Addresses) of the Facilities Agreement are set out in the Schedule.

 

7.                                      The Increase Lender expressly acknowledges the limitations on the Lenders’ obligations referred to in paragraph (g) of Clause 2.2 (Increase) of the Facilities Agreement.

 

8.                                      The Increase Lender confirms that it is not a Sponsor Affiliate.

 

9.                                      This Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

10.                               This Agreement is governed by the laws of Hong Kong.

 

108

 

Executed as an Agreement.

 

Borrower

 

NETEASE, INC.

 

 

	
/s/ YANG Zhaoxuan
    	
 
    
	
 
    	
 
    
	
By:
    	
YANG Zhaoxuan
    	
 
    
			

 

 

MLABs

 

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

 

 

	
/s/ Patrick Chen
    	
 
    
	
 
    	
 
    
	
By:
    	
Patrick Chen
    	
 
    
	
 
    	
Head, China Desk
    	
 
    
	
 
    	
 
    
	
/s/   TAI, Alan Pak Ling
    	
 
    
	
 
    	
 
    
	
By:
    	
TAI, Alan Pak   Ling
    	
 
    
	
 
    	
Director, Loans Structuring & Execution Asia
    	
 
    

 

 

CITIGROUP GLOBAL MARKETS ASIA LIMITED

 

 

	
/s/ Vincent Yeung
    	
 
    
	
 
    	
 
    
	
By:
    	
Vincent Yeung
    	
 
    
	
 
    	
Director
    	
 
    

 

 

DBS BANK LTD.

 

 

	
/s/ STOCKOR NG
    	
 
    
	
 
    	
 
    
	
By:
    	
STOCKOR NG
    	
 
    
	
 
    	
Senior Vice President, Team Head
    	
 
    

 

 

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

 

 

	
/s/ Anita So
    	
 
    
	
 
    	
 
    
	
By:
    	
Anita So
    	
 
    
	
 
    	
Director
    	
 
    
	
 
    	
Loan Syndications
    	
 
    

 

 

Original Lenders

 

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

 

 

	
/s/ Patrick Chen
    	
 
    
	
 
    	
 
    
	
By:
    	
Patrick Chen
    	
 
    
	
 
    	
Head, China Desk
    	
 
    
	
 
    	
 
    
	
/s/ TAI, Alan Pak Ling
    	
 
    
	
 
    	
 
    
	
By:
    	
TAI, Alan Pak Ling
    	
 
    
	
 
    	
Director, Loans Structuring & Execution Asia
    	
 
    

 

 

CITIBANK, N.A., HONG KONG BRANCH

 

 

	
/s/ Vincent Yeung
    	
 
    
	
 
    	
 
    
	
By:
    	
Vincent Yeung
    	
 
    
	
 
    	
Authorised Signatory
    	
 
    

 

 

DBS BANK LTD., HONG KONG BRANCH

 

 

	
/s/ Lu Wei
    	
 
    
	
 
    	
 
    
	
By:
    	
Lu Wei
    	
 
    
	
 
    	
Vice President
    	
 
    

 

 

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

 

 

	
/s/ SHAWN LI
    	
 
    
	
 
    	
 
    
	
By:
    	
SHAWN LI
    	
 
    
	
 
    	
039460
    	
 
    

 

 

Agent

 

CITICORP INTERNATIONAL LIMITED

 

 

	
/s/ Edmond Pang
    	
 
    
	
 
    	
 
    
	
By:
    	
Edmond Pang
    	
 
    
	
 
    	
Assistant Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00295-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00295-of-00352.parquet"}]]