SYNDICATED LOAN AGREEMENT
RMB 7,500,000,000
CHINA MOBILE (SHENZHEN) LIMITED
(Acting as "Borrower")
CONSTRUCTION BANK OF CHINA
BANK OF CHINA
(Acting as "Joint Lead Managers")
BANK OF CHINA
CONSTRUCTION BANK OF CHINA
(Acting as "Joint Lead Underwriters")
STATE DEVELOPMENT BANK
AGRICULTURE BANK OF CHINA
INDUSTRIAL AND COMMERCIAL BANK OF CHINA
(Acting as "Co-Lead Managers")
BANK OF COMMUNICATIONS
HONG KONG & SHANGHAI BANKING CORPORATION LTD.
CHINA MERCHANTS BANK
(Acting as "Managers")
CONSTRUCTION BANK OF CHINA, SHENZHEN BRANCH
(Acting as "Agency Bank")
JINGTIAN & GONGCHENG LAW FIRM
October 7, 2000, Beijing
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TABLE OF CONTENTS
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Articles Pages
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Article One Terms and Definitions........................ 2
Article Two Loan Arrangement............................. 5
Article Three Drawdown..................................... 5
Article Four Guarantee.................................... 9
Article Five Repayment, Prepayment, Extension............. 10
Article Six Interest..................................... 13
Article Seven Tax.......................................... 14
Article Eight Fees and Expenses............................ 14
Article Nine Payment and Proof of Debt.................... 14
Article Ten The Relations Among Banks, Rights and
Obligations, and Responsibilities............ 15
Article Eleven Borrower's Representations and Warranties.... 25
Article Twelve Borrower's Covenants......................... 26
Article Thirteen Lending Banks' Warranties.................... 28
Article Fourteen Events of Default and Other Similar Events... 28
Article Fifteen Default Interest and Compensation............ 30
Article Sixteen Transfer..................................... 31
Article Seventeen Notices...................................... 32
Article Eighteen Governing Law and Jurisdiction............... 34
Article Nineteen Insurance.................................... 34
Article Twenty Other Stipulations........................... 34
Schedule One Lending Banks and the Credit Amount
Undertaken................................... 48
Schedule Two List of Guarantors........................... 50
Schedule Three Form of Drawdown Notice...................... 52
Schedule Four Form of Prepayment Notice.................... 53
Schedule Five Form of Reply to Prepayment Notice........... 54
Schedule Six Form of Payment Notice....................... 55
Schedule Seven Form of Letter of Guarantee.................. 56
Schedule Eight Form of Extension Application................ 65
Schedule Nine Form of Extension Reply...................... 67
Schedule Ten Form of Interest Payment Notice.............. 68
Schedule Eleven Form of Legal Opinion Issued by Lawyer of
the Borrower and Guarantors.................. 69
Schedule Twelve Form of Legal Opinion Issued by Lawyer of
Lending Banks................................ 76
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SYNDICATED LOAN AGREEMENT
THIS AGREEMENT IS EXECUTED ON OCTOBER 7, 2000, IN BEIJING BY THE PARTIES AS
FOLLOWS:
1. China Mobile (Shenzhen) Limited, a wholly-owned subsidiary of China Mobile
(Hong Kong) Limited incorporated in mainland China, registered at Shenzhen
Administrative Bureau of Industry and Commerce, with a registered address
of 10th Floor, Guotong Building, 9023 Binhedadao, Futian District,
Shenzhen, acting as the Borrower (hereinafter referred to as the
"Borrower");
2. Construction Bank of China and Bank of China, acting as Joint Lead Managers
and Joint Lead Underwriters;
3. State Development Bank, Agriculture Bank of China, and Industrial and
Commercial Bank of China, acting as Co-Lead Managers;
4. Bank of Communications, Hong Kong & Shanghai Banking Corporation Ltd., and
China Merchants Bank, acting as Managers;
5. Banks listed in Schedule One hereunder, acting as Member Banks of the
Syndicate;
6. Construction Bank of China, Shenzhen Branch, acting as Agency Bank; and
7. Companies listed in Schedule Two hereunder, acting jointly as Guarantors.
This Agreement is established in accordance with the Commercial Banking Law
of the People's Republic of China, General Rules for Providing Loans,
Provisional Regulations on Providing Syndicated Loans, the Security Law of the
People's Republic of China, and other applicable laws and regulations of the
People's Republic of China.
PREFACE
1. The Borrower is a wholly-owned subsidiary of China Mobile (Hong Kong)
Limited, which holds 100% of its equity interest.
2. Currently, China Mobile (Hong Kong) Limited directly or indirectly holds
100% of the equity interest of each of the guarantors listed in Schedule
Two.
3. China Mobile Communications Corporation ("CMCC") has restructured its
mobile telecommunication business in seven provinces, municipalities, and
autonomous region (namely, Beijing, Shanghai, Tianjin, Liaoning, Hebei,
Shandong, and Guangxi) and established mobile communication companies in
the aforesaid seven provinces, municipalities, and autonomous region. Upon
the incorporation of the mobile communication companies in the seven
provinces, municipalities, and autonomous region, CMCC will, through China
Mobile (Hong Kong) Group Limited ("CMHK Group") and China Mobile
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Hong Kong (BVI) Limited ("China Mobile BVI"), inject all the equity
interest it holds in the mobile communication companies in the seven
provinces, municipalities, and autonomous region to seven wholly-owned BVI
subsidiaries ("Seven BVI Subsidiaries") of China Mobile BVI. Upon the
completion of such injection, CMHK will acquire from China Mobile BVI the
equity interest it holds in the Seven BVI Subsidiaries (hereinafter
referred to as the "Acquisition Transaction").
4. In accordance with the Acquisition Plan approved by relevant departments of
the State Council, part of the consideration will be raised by the
Borrower, in lieu of its parent company China Mobile (Hong Kong) Limited,
through a Renminbi-denominated debt financing conducted within the
territory of China, and will be paid directly to CMCC.
5. In accordance with the Acquisition Plan approved by relevant departments of
the State Council, six subsidiaries directly or indirectly owned by China
Mobile (Hong Kong) Limited, acting as Guarantors, agree to jointly issue a
letter of guarantee to the Lending Banks, and to provide guarantee to the
Lending Banks for the Borrower with their respective capital.
6. To complete the aforesaid Acquisition Transaction, the Borrower, pursuant
to the current requirements of financial regulations and supervisions,
applies to the Lending Banks for a Renminbi-denominated debt financing
("Class A Loan") with a total principal amount not exceeding RMB 5 billion
(RMB 5,000,000,000.00) and a term of SIX (6) months as well as a
Renminbi-denominated debt financing ("Class B Loan") with a total principal
amount not exceeding RMB 7.5 billion (RMB 7,500,000,000.00) and a term of
THREE (3) years within the territory of China in accordance with the
approval from the State Council.
7. For the purposes of this Agreement, the Loan means Class B Loan.
THEREFORE, the Parties have reached the following Agreement:
ARTICLE ONE TERMS AND DEFINITIONS
1.1 In this Agreement, unless the context otherwise requires, the following
terms have the following meanings:
1) "Loan Arrangement" means the Renminbi-denominated syndicated loans
provided in accordance with this Agreement;
2) "Term" means the term of the loan set out in accordance with Article
2.3 herein;
3) "Effective Term of the Loan Agreement" means the period from the
effective date (including the effective date) to the date (including
any Extensions) when the total amount of the Loan (including the total
interest and fees) set out in the Loan Agreement herein has been
repaid
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to the Lending Banks;
4) "This Agreement" means this Syndicated Loan Agreement and its
Schedules, as well as any modifications, edits, and amendments to this
Syndicated Loan Agreement;
5) "Loan" means the loan arranged in accordance with the Loan Arrangement
set out in this Agreement;
6) "Security" means any guarantee, undertaking, security, pledge, lien,
setting creditor's right, hypothecation or any other arrangement of
security interest.
7) "Member Banks" mean banks that have committed to provide loans in
accordance with this Agreement.
8) "Lending Banks" mean banks that provide loans in accordance with this
Agreement.
9) "Guarantors" mean companies or institutions that provide guarantee for
the Borrower.
10) "Letter of Guarantee" means the letter of guarantee issued by
guarantors in the form set out in Schedule Seven herein;
11) "Overseas Financing" means equity financing and debt financing
conducted in Hong Kong, U.S. and other places by China Mobile (Hong
Kong) Limited in an effort to complete the acquisition transaction;
12) "Bank Business Day" means a day (other than China's legal non-business
days and legal holidays) on which banks in Beijing are open for
general banking business;
13) "Drawdown Date" means a Bank Business Day on which the Loan is drawn
by the Borrower in accordance with Article 3 herein;
14) "Repayment Date" means the third anniversary of the Drawdown Date, and
the Repayment Date shall fall on a Bank Business Day (and in case of a
non-Bank Business Day, it shall postpone accordingly to fall on the
next Bank Business Day);
15) "Prepayment Date" means the prepayment date set out in the Prepayment
Notice, and the Prepayment Date shall fall on a Bank Business Day;
16) "Extension Repayment Date" means the extension repayment date approved
at the syndicate meeting upon receiving an Extension Application from
the Borrower, the Extension Repayment Date shall fall on a Bank
Business Day;
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17) "Drawdown Period" means the drawdown period set out in Article 3.1
herein;
18) "Interest Calculation Period" means the interest calculation period
set out in Article 6.3 herein;
19) "Interest Payment Date" means the Bank Business Day set out in Article
6.3 herein;
20) "Advancement" means the principal amount of the Loan provided by
Lending Banks through the Agency Bank to the Borrower when the
Borrower draws any Loan in accordance with Article 3 herein;
21) "Event of Default" means any event defined as an Event of Default
and/or Event of Cross-Default in Article 14 herein;
22) "Anticipatory Event of Default" means any event that will become an
Event of Default upon the issuance of the notice and/or lapse of time
and any event defined as such in Article 14.3 herein;
23) "Agency Bank" means Construction Bank of China, Shenzhen Branch;
24) "Loan Documents" mean this Agreement and any other documents executed
for the performance of this Agreement;
25) "Drawdown Notice" means the drawdown notice in the form set out in
Schedule Three herein;
26) "Prepayment Notice" means the prepayment notice in the form set out in
Schedule Four herein;
27) "Repayment Notice" means the repayment notice in the form set out in
Schedule Six herein;
28) "Extension Application" means the extension application in the form
set out in Schedule Eight herein;
29) "Interest Payment Notice" means the interest payment notice in the
form set out in Schedule Ten herein;
30) "Tax" means any present or future tax, charge, compulsory charge,
deduction and withholding of every kinds, and any related interest or
penalty on the tax levied or imposed by the Central Government of the
People's Republic of China and/or local tax authorities, or other
agencies;
31) "Acquisition Transaction" means the acquisition by China Mobile (Hong
Kong) Limited of the equity interest of the Seven BVI Subsidiaries
held by China Mobile BVI; and
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32) "Insurance" means various insurances required to be purchased by
relevant laws or regulations, competent authorities of the industry,
or compulsory insurances of the industry.
1.2 In this Agreement, unless the context otherwise requires, (1) this
Agreement includes the amendment or supplementary documents of this
Agreement or any Loan Documents; (2) Articles, Sections, and Schedules
refer to Articles, Sections, and Schedules of this Agreement; and (3) the
table of contents and headings of Articles of this Agreement are for
convenience of reference and do not constitute interpretation of this
Agreement, and they do not impose any limitations upon the content and its
respective scope under the titles.
ARTICLE TWO LOAN ARRANGEMENT
2.1 Principal Amount of the Loan
Subject to the observation of the terms and conditions set out in this
Agreement and the performance of all the conditions precedent to the
Drawdown by the Borrower, the Lending Banks agree to provide the Borrower
with a loan, the principal amount of which shall not exceed RMB 7.5 billion
(RMB 7,500,000,000.00).
2.2 Purpose of the Loan
The Loan is to be used for the sole purpose as follows: as part of the cash
consideration to be paid in connection with the acquisition by China Mobile
(Hong Kong) Limited of the equity interest of the Seven BVI Subsidiaries
from China Mobile BVI, the Borrower, entrusted by China Mobile (Hong Kong)
Limited, directly pays the amount to CMCC designated by China Mobile BVI.
2.3 Term
The term of the Loan is THREE (3) years, from the first Drawdown Date to
the day immediately preceding the THIRD (3rd) anniversary of such first
Drawdown Date (In case it falls on a Non-Bank Business Day, it shall be
postponed to the next Bank Business Day).
ARTICLE THREE DRAWDOWN
3.1 Drawdown Period
The Drawdown Period shall begin on the effective date herein and end on the
earlier of (a) the day immediately preceding the first anniversary of the
effective date, and (b) the date when the total principal amount of the
Loan has been withdrawn.
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3.2 Conditions Precedent to the First Drawdown
When and until all the following conditions are met, the Lending Banks will
be obliged to make the Loan available to the Borrower, and the Borrower may
submit to the Agency Bank a Drawdown Notice:
1) All following documents have been provided to the Agency Bank:
i. About the Borrower
a) The Borrower's articles of association;
b) The approval certificate for the establishment of a wholly
foreign-owned enterprise issued by the competent authorities
of trade and economic cooperation;
c) The Borrower's currently valid business license
(counterpart) issued by the State Administration of Industry
and Commerce;
d) The Borrower's tax registration certificate (counterpart);
e) The Borrower's foreign exchange registration certificate;
f) The resolution approved by the Borrower's board of directors
on the following issues: borrowing the loan in accordance
with the provisions of this Agreement and authorizing one or
more persons to execute this Agreement, any other relevant
Loan Documents and all Drawdown Notices as well as other
documents to be executed in relation to this Agreement, and
the signature samples of such persons;
g) The presentation and relevant proof documents produced by
the Borrower with regard to the security interest of any
kind set upon its assets and/or any contingent liabilities
of any kind assumed by the Borrower prior to the execution
date of this Agreement; and
h) The approval documents of the State Council for the payment
of the purchase price of the acquisition by the Borrower on
behalf of China Mobile (Hong Kong) Limited and for the Loan
Arrangement;
ii. About the Guarantors
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a) Each Guarantor' articles of association;
b) The approval certificates for the establishment of a wholly
foreign-owned enterprise issued to each of the Guarantors by
the competent authorities of trade and economic cooperation;
c) Each Guarantor' currently valid business license
(counterpart) issued by the State Administration of Industry
and Commerce;
d) Each Guarantor' tax registration certificate (counterpart);
e) Each Guarantor' foreign exchange registration certificate;
f) The resolutions approved by each Guarantor' boards of
directors on the following issues: providing guarantee in
accordance with the provisions of this Agreement and/or the
Letter of Guarantee and authorizing one or more persons to
execute this Agreement and/or the Letter of Guarantee; and
the signature samples of such persons;
g) The presentation and relevant proof documents produced by
each Guarantor with regard to the security interest of any
kind with a total amount exceeding RMB100 million imposed
upon its assets and/or any contingent liabilities of any
kind assumed by it prior to the execution date of this
Agreement;
h) The certificate executed by the legal representative of each
Guarantor certifying that on and prior to the Drawdown Date,
no Event of Defaults have taken place on the part of each
Guarantor, and the statement that all the representations,
statements, warranties, and covenants made by it in this
Agreement and/or Letter of Guarantee are true and accurate;
and
i) The originals of the Letter of Guarantee, which have been
duly executed and effective, is in accordance with in the
form set out in Schedule Seven herein;
iii. Other Documents
a) The confirmation letter produced by the chairman of the
board of directors of China Mobile (Hong Kong) Limited on
behalf of the board of directors approving the Syndicate
Loan Arrangement under this Agreement and consenting to the
Guarantee Arrangement under
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this Agreement;
b) The Legal Opinion produced by Chinese lawyer of the Lending
Banks in the form set out in Schedule Twelve herein; and
c) The Legal Opinion produced by Chinese lawyer of the Borrower
and Guarantors in the form set out in Schedule Eleven
herein;
Upon receiving all the documents on the aforesaid Conditions
Precedent to the Drawdown, the Agency Bank shall deliver on a
timely basis to the Lending Banks a written notice confirming the
completeness of the documents on the Conditions Precedent to the
first Drawdown;
2) No Event of Default or Anticipatory Event of Default has occurred on
the part of the Borrower or Guarantor; and
3) All the fees and charges set out in Article 8 herein have been paid in
full.
3.3 Conditions Precedent to Follow-on Drawdown
After the first Drawdown, the following conditions precedent shall be met
before the Borrower submits to the Agency Bank a Drawdown Notice and makes
another Drawdown:
1) The Borrower delivers to the Agency Bank a written confirmation,
stating that on the date when the Drawdown Notice for the follow-on
Drawdown is submitted and on the corresponding follow-on Drawdown
Date, the circumstances specified in Section 2) of Article 3.4 herein
are true, and the loan withdrawn has been used in strict accordance
with the stipulations herein;
2) Each Guarantor individually confirms that on the date when the
Drawdown Notice for the follow-on Drawdown is submitted and on the
corresponding follow-on Drawdown Date, there is no materially adverse
change in the guarantee qualifications, guarantee capacity, and all
other conditions of such Guarantor under this Agreement and Letter of
Guarantee from the effective date of the Letter of Guarantee to such
follow-on Drawdown Date, and such Guarantee continues to comply with
Chinese laws and regulations with regard to stipulations on the
guarantors' qualifications.
3.4 Relevant Requirements on the Drawdown
The Drawdown shall meet the following requirements regardless it is the
first or follow-on Drawdown:
1) The Borrower shall submit to the Agency Bank, SEVEN (7) Bank Business
Days in advance, an irrevocable Drawdown Notice in the form set out in
Schedule Three herein and shall withdraw the amount
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of the Loan specified in such Drawdown Notice on the Drawdown Date,
which shall fall on a Bank Business Day set out in such Drawdown
Notice;
2) Meantime, the Borrower shall submit to the Agency Bank a statement
executed by the Borrower's legal representative or authorized signer
certifying that on and prior to the Drawdown Date, (1) no Event of
Defaults or Anticipatory Event of Defaults have taken place on the
part of the Borrower; (2) all the representations, warranties, and
covenants made by the Borrower in this Agreement are true, accurate,
and effective; and (3) all the documents on the Conditions Precedent
to the Drawdown pursuant to Section 1) of Article 3.2 herein submitted
by the Borrower to the Agency Bank shall still be true, accurate, and
effective;
3) The amount withdrawn each time shall not be less than RMB 2 billion
(excluding the last Drawdown).
After each Drawdown, the Advancement withdrawn constitutes debt of the
Borrower owed to the Lending Banks.
3.5 Irrevocability of the Drawdown Notice
Unless the context herein otherwise requires, the Borrower shall make the
Drawdown pursuant to the Drawdown Notice. In case that the Borrower fails
to make the Drawdown pursuant to the Drawdown Notice, the Borrower shall,
upon requirement from the Agency Bank, compensate the Agency Bank and all
other Lending Banks for their respective actual financing cost.
3.6 The Total Amount of the Advancement
The total amount of the Advancement shall not exceed the total amount of
the Loan Arrangement pursuant to this Agreement. Such total amount shall
only be withdrawn by the Borrower during the Drawdown Period. In case that
the Borrower fails to withdraw the total amount of the Loan within the
Drawdown Period, such unclaimed portion of the Loan shall not be withdrawn
after the Drawdown Period expires, unless the Borrower, through the Agency
Bank, and the Lending Banks enter into a written agreement on an Extension
of the Drawdown Period.
3.7 Account Entering Time of the Advancement
The total amount of the Advancement withdrawn by the Borrower shall be
remitted to the Borrower's Renminbi-denominated current account opened at
the Agency Bank not later than Twelve (12:00) o'clock (Beijing Time) at
noon on the Drawdown Date.
ARTICLE FOUR GUARANTEE
4.1 The Producing of Letters of Guarantee
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The Guarantors have reached agreement with the Borrower and the Guarantors
agree that concurrently with the execution of this Agreement, each of the
Guarantors will produce a Letter of Guarantee in favor of the Lending Banks
in the form of Schedule Seven herein to guarantee the Loan provided by the
Lending Banks pursuant to this Agreement shall be repaid in full pursuant
to the provisions of this Agreement.
4.2 Obligations of the Guarantors
The liabilities and obligations of the Guarantors are joint and several.
Any Guarantor assumes joint liability with respect to the obligations and
liabilities of another and/or other Guarantor(s). One Guarantor's failure
in performing the obligations under this Agreement or any other Loan
Documents shall not affect the obligations that shall be assumed by any
other Guarantors. In case that the Borrower cannot repay the Loan in full
pursuant to the provisions herein on schedule, the Guarantors shall make
the repayment pursuant to the Repayment Notice delivered to any of the
Guarantors by the Lending Banks through the Agency Bank, and meantime the
Guarantors shall give up the demurrer that the Agency Bank shall first
deliver a Repayment Notice to the Borrower.
ARTICLE FIVE REPAYMENT, PREPAYMENT, EXTENSION
5.1 Repayment Schedule
The balance of the Loan under this Agreement shall be repaid in full on
Repayment Date in one lump sum by the Borrower to the Lending Banks
through the Agency Bank.
5.2 Repayment Notice
The Agency Bank shall, FIFTEEN (15) Bank Business Days prior to the
Repayment Date, deliver the Repayment Notice to the Borrower to remind the
Borrower of repaying the loan on schedule. However, in case the Agency
Bank fails to deliver the Repayment Notice to the Borrower pursuant to
this clause, the Borrower's liabilities, including the liability to
compensate the Lending Banks, resulting from the failure to make the
repayment on schedule in violation of the provisions herein shall not be
absolved.
5.3 Account Entry of the Repayment Sum
The Borrower shall remit all balance of the Loan at maturity to the
Borrower's Renminbi-denominated current account opened at the Agency Bank
not later than Twelve (12:00) o'clock (Beijing Time) at noon on the
Repayment Date pursuant to the terms under this Agreement.
5.4 Prepayment
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During the effective term of the Loan Agreement, the Borrower may repay
prior to its maturity all or part of the Loan on any Bank Business Day
within the Term pursuant to Article 5.3 herein, and pay the due interest
outstanding accrued on such repaid amount over the period ending on such
Prepayment Date subject to the following provisions:
1) The principal amount repaid prior to its maturity shall not be less
than RMB 100 million (RMB 100,000,000.00), and the due interest
outstanding accrued on such repaid amount over the period ending on
such Prepayment Date shall be paid at the same time;
2) The Borrower has submitted to the Agency Bank, at least THIRTY (30)
days in advance, a Prepayment Notice, detailing the principal amount
to be repaid prior to its maturity and the Repayment Date; the Agency
Bank shall, within FIFTEEN (15) days upon receiving such Prepayment
Notice from the Borrower, make a reply, which shall specify the due
interest outstanding accrued on the advanced repayment amount over the
period ending on such Prepayment Date; in case that the Borrower does
not receive such reply from the Agency Bank, it shall be regarded that
the Lending Banks agree to this advanced repayment, and the Borrower
may repay the principal amount of this repayment on the Prepayment
Date, while the due interest outstanding accrued on such repaid
principal amount shall be paid on a timely basis upon instruction of
the Lending Banks. However, the due and unpaid interest accrued over
the period from the Prepayment Date to the day on which such interest
is paid in full shall not accrue any interest;
3) All other due and payable sums of money until such Prepayment Date
herein have been paid;
4) Any Prepayment Notice submitted by the Borrower pursuant to any
stipulations of this Agreement shall be irrevocable, and the Borrower
shall make the advanced repayment in accordance with such Prepayment
Notice. The Borrower shall only repay the Loan or any other amount
prior to its maturity in accordance with the terms and conditions
stipulated herein. The advanced repayment amount under this Agreement
shall not be re-borrowed; and
5) In case that the Borrower repays the Loan or any other amount prior to
its maturity pursuant to the stipulations herein, it shall, when
making the advanced repayment, also pay the Lending Banks all the due
and unpaid interest accrued over a period ending on the Prepayment
Date as well as all other costs payable by the Borrower under this
Agreement.
5.5 Extension
1) The Loan under this Agreement, upon the satisfaction of the following
conditions, may be extended:
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i. The representations and warranties listed in Article 11 herein
and the covenants listed in Article 12 herein remain true and
accurate in light of the then existing facts and circumstances;
ii. There is no Event of Default or Anticipatory Event of Default
that has not been cured or corrected until the day when the
Extension Application is submitted; and
iii. During the period from the execution of the Letter of Guarantee
to the day when the Extension Application is submitted, the
guarantee qualifications, guarantee capacity, and all other
conditions of the Guarantors under this Agreement and Letter of
Guarantee have not experienced any material adverse changes, the
Guarantors still comply with Chinese laws and regulations with
regard to stipulations on the guarantors' qualifications, and
during the proposed Extension, the Guarantors shall continue to
maintain such lawful and good conditions.
The amount of Loan to be extended in the Extension Application shall
not exceed the balance of the Loan. In accordance with Article 12 of
the General Rules for Providing Loans, the aggregated term of the
Extension under this Agreement shall not exceed EIGHTEEN (18) months;
2) In case the Borrower requires an Extension, it shall, THIRTY (30) Bank
Business Days prior to the Repayment Date, submit to the Agency Bank
an Extension Application in the form set out in Schedule Eight herein;
3) Upon receiving the Extension Application, the Agency Bank shall
immediately notify the Lending Banks, which shall make extension
arrangements pursuant to Section 4) of Article 10.7 herein. If an
Extension is accepted, the Agency Bank shall, FIFTEEN (15) Bank
Business Days prior to the Repayment Date, make an Extension Reply to
the Borrower in the form set out in Schedule Nine herein;
4) The Borrower's extension arrangements shall be guaranteed by the
Guarantors executing this Agreement; in case that the Borrower
proposes to make extension arrangements and makes Extension
Application to the Agency Bank while the Agency Bank considers that
the Guarantors executing this Agreement are no longer qualified to
provide guarantee, the Borrower shall arrange other guarantors to
provide guarantee for the Borrower's extension arrangements;
5) The Guarantors under this Agreement hereby agree that when the
Borrower makes an Extension Application, only the Borrower shall
notify the Guarantors about such extension arrangements and the
Guarantors shall sign and stamp on the Extension Application to
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confirm their consent to the extension arrangements. Once the Agency
Bank agrees to the Borrower's Extension Application and begins the
extension arrangement, the Guarantors' guarantee liabilities or
obligations will continue to be applicable to the Loan of the
Extension. The validity of the extension arrangement does not depend
on the further consent by the Guarantors to the extension
arrangements, and the stipulations of this Section shall constitute a
waiver of the Guarantors' right of consent to future extension
arrangements;
6) Regarding the interest rate of the Extension, the Parties agree that
in case that the combined Extension period and the original Term reach
a new interest rate period level, the lending rate of the extension
arrangement shall, beginning from the Extension Date, be determined,
pursuant to the new level with the first day of the Extension as a
base date, at 10% below the base lending rate of the same level for
financial institutions as announced by the People's Bank of China
(PBOC).
ARTICLE SIX INTEREST
6.1 The Borrower shall pay, through the Agency Bank, the Lending Banks the
interest of the loan pursuant to the following provisions.
6.2 The lending rate is determined annually pursuant the Term stipulated in
Article 2.3 herein, at 10% below the base lending rate of the same level
for financial institutions on the effective date of this Agreement as
announced by the PBOC. Upon the anniversary of the first Drawdown Date, the
rate is then determined at 10% below the then base lending rate of the same
level for financial institutions announced by the PBOC. In case that
between any two base dates, the PBOC adjusts the interest rate level for
the corresponding period, the lending rate for the Loan under this
Agreement will not be adjusted no matter whether the amount is drawn in a
lump sum or in installment.
6.3 Interest accrues on the Loan from and including the day on which the Loan
is transmitted to the Borrower's Renminbi-denominated account opened at
the Agency Bank, to but excluding the Repayment Date. The interest of the
withdrawn and unrepaid principal of the loan is calculated on the basis of
the actual days and is settled on a quarterly basis. The fixed Interest
Payment Date falls on the TWENTIETH (20) day in the last month of a
quarter, namely March 20th, June 20th, September 20th, and December 20th.
In case that it falls on a Non-Bank Business Day, it shall be postponed to
fall on the next Bank Business Day. The method of lending interest
calculation is as follows: Interest of the Loan = withdrawn and unrepaid
principal x actual days of borrowing the loan x annual interest
rate / 360
6.4 The Agency Bank shall, FIFTEEN (15) Bank Business Days prior to the
Interest Payment Date, deliver an Interest Payment Notice in the form set
out in Schedule Ten herein to confirm the due and payable interest amount.
However, in case the Agency Bank fails to deliver the Interest Payment
Notice to the Borrower pursuant to this clause, the Borrower's
liabilities, including
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the liability to compensate the Lending Banks, resulting from the failure
to pay the interest on schedule in violation of the provisions herein shall
not be absolved.
6.5 Upon the repayment of the principal amount of the Loan under this
Agreement, the due and outstanding interest accrued on such principal
amount shall be settled in a lump sum along with the principal amount.
ARTICLE SEVEN TAX
7.1 The Borrower shall, through the Agency Bank, pay the Lending Banks in full
the entire sum payable under this Agreement, and shall not deduct from or
counterclaim for it, and shall pay and settle any relevant taxes. In case
that any laws, regulations, or statutes require that any sum from the
amount to be paid to the Agency Bank by the borrower shall be deducted or
withheld, the Borrower shall pay the additional sum along with the amount
so that the total amount the Agency Bank receives equals to the total
amount without and before any deductions and withholdings.
7.2 In accordance with the provisions of the Interim Regulations of the
People's Republic of China on Stamp Tax, the Lending Banks, being one Party
to this Agreement, and the Borrower, being the other Party, shall each pay
a stamp tax at the rate of 0.005 percent.
ARTICLE EIGHT FEES AND EXPENSES
8.1 The Borrower, the Agency Bank and the Lending Banks agree that the Borrower
shall pay a one-time fee to the Lending Banks, including the lawyer fees
which shall be borne by the Borrower and the travel expenses, documentation
expenses, and communication expenses incurred by the Joint Lead Managers to
form the bank syndicate. Such fee shall be paid within TEN (10) Bank
Business Days after the execution of this Agreement. Apart from such fee,
the Borrower shall not be liable to bear any other fees of the Joint Lead
Managers, the Agency Bank and/or the Lending Banks.
ARTICLE NINE PAYMENT AND PROOF OF DEBT
9.1 The Agency Bank shall, pursuant to the stipulations herein, remit the
withdrawn amount to the Borrower's Renminbi-denominated current account
opened at the Agency Bank not later than Twelve (12:00) o'clock (Beijing
Time) at noon on the Drawdown Date.
9.2 All sums payable by the Borrower under this Agreement shall be paid to the
Agency Bank by the Borrower on a timely basis. In case that any sum the
Agency Bank receives is less than the due and payable amount, the Agency
Bank shall distribute it in accordance with the following order:
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1) Fees resulting from the satisfaction of creditor's claim;
2) Default interest and compensation;
3) Interest; and
4) Principal;
In addition, the Agency Bank has the right to classify and transfer any
other sums received from the Borrower (excluding the foreign exchange
amount in the Borrower's capital account) as sums owed under this Agreement
in a manner it deems appropriate.
9.3 All sums payable to the Lending Banks pursuant to this Agreement shall be
remitted to the account (designated by the Agency Bank) by the Borrower in
accordance with the Agency Bank's notice. When the sum has been remitted to
the designated account, the payment shall be deemed to be completed.
9.4 The Lending Banks jointly entrust the Agency Bank with the duty of
recording the principal, interest, fee, and any other sums owed by the
Borrower under the Loan Arrangement herein into the Agency Bank's internal
account book. The aforesaid record as well as bills and receipts produced
and kept by the Agency Bank during the normal business course when the
Borrower makes withdrawal, repayment, and interest payment are deemed as
valid proof of creditor's rights and proof of debt among the Lending Banks,
the Agency Bank, and the Borrower.
ARTICLE TEN THE RELATIONS AMONG BANKS, RIGHTS
AND OBLIGATIONS, AND RESPONSIBILITIES
10.1 The Acknowledgement of the Loan Arrangement under the Syndicated Loan by
the Banks
The banks under this Agreement, including the Joint Lead Managers, Joint
Lead Underwriters, the Agency Bank and other Member Banks and Lending
Banks, hereby understand, acknowledge and agree:
1) The civil right of the banks under this Agreement, including the Joint
Lead Managers, Joint Lead Underwriters, the Agency Bank and other
Member Banks and Lending Banks, is equal; the voting right of each of
the Lending Banks is in proportion to the amount of the Loan such bank
provides;
2) The Member Banks and the Lending Banks shall be Chinese banks within
the territory of China and/or foreign banks approved to conduct
Renminbi businesses within the territory of China;
3) All financial institutions participating in the syndicated loan are
Member Banks of the syndicated loan; The Loan under this Agreement
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is RMB loan;
4) In accordance with Chinese laws, the Lending Banks provide the Loan to
the same Borrower pursuant to the same loan agreement, namely, this
Agreement;
5) The principle of volunteer negotiation and volunteer loan subscription
is observed when Member Banks and the Lending Banks participate in the
syndicated loan;
6) All Member Banks and the Lending Banks have prudently examined
materials for evaluating and examining the Borrower, Guarantors and
other materials related to the Loan Arrangement provided by the
Borrower through the Agency Bank; all Member Banks and the Lending
Banks fully understand that pursuant to the provisions of Chinese
laws, the Borrower is obliged to truthfully provide, through the
Agency Bank, Member Banks and the Lending Banks with all necessary
materials on the syndicated loan and answer their inquiries, and to
make the decision to participate in the Loan Arrangement, all Member
Banks and the Lending Banks have taken corresponding steps, procedures
so as to fully understand materials and information related to the
Loan Arrangement; the decision to participate in the Loan Arrangement
under this Agreement is completely based upon the review conducted by
the Member Banks and the Lending Banks themselves;
7) The amount of the Loan under this Agreement is acknowledged and set
out in Schedule One herein;
8) The Joint Lead Managers, Joint Lead Underwriters, the Agency Bank and
other Member Banks and the Lending Banks jointly execute this
Agreement with the Borrower and Guarantors;
9) This Agreement is a single loan contract executed upon full
negotiation, duly authorized representatives of the Lending Banks
shall execute this Agreement with the respective official seals
stamped;
10) The principal amount undertaken by each Lending Bank and the time to
provide the amount shall be specified in this Agreement;
11) The interest accrued on the Loan under this Agreement is determined in
accordance with the lending rate and measures set by the PBOC on the
basis of interest rate adjustment plan negotiated between the Borrower
and the Lending Banks; and
12) The Loan under this Agreement is guaranteed by the following
Guarantors: Guangdong Mobile Communication Company Limited, Zhejiang
Mobile Communication Company Limited, Jiangsu Mobile Communication
Company Limited, Fujian Mobile Communication Company Limited, Henan
Mobile Communication Company Limited,
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and Hainan Mobile Communication Company Limited. In the event that the
Borrower fails to repay the principal, pay the interest and other fees
due on schedule, the Guarantors shall fulfill the obligation of
payment or bear the responsibility pursuant to the provisions of this
Agreement and the Letter of Guarantee.
10.2 Joint Lead Managers
The responsibilities of the Joint Lead Managers are as follows:
1) The Joint Lead Managers have accepted the formal written delegation by
the Borrower to the Joint Lead Managers regarding the preparation and
formation of the syndicate on September 21, 2000. The Joint Lead
Managers, based on such written delegation, make invitations to their
peers in the business with regard to organizing the bank syndicate;
2) Delivering invitations to the peers with regard to organizing the bank
syndicate, information memorandum, and other related materials the
Joint Lead Managers deem necessary, specifying the deadline for
feedback and collecting their respective feedback;
3) Retaining lawyers for the bank syndicate;
4) Organizing and arranging the negotiation, preparation, and execution
of this Agreement; and
5) Designating the Agency Bank.
10.3 Joint Lead Underwriters
The responsibilities of the Joint Lead Underwriters are as follows:
1) Being jointly responsible for underwriting the Loan under the Loan
Arrangement herein. When Member Banks and/or the Lending Banks fail to
provide the Loan pursuant to the provisions herein, the Joint Lead
Underwriters bear the responsibility of making the Loan and providing
the Loan to the Borrower pursuant to the provisions herein. The
performance of Member Banks and/or the Lending Banks of this Agreement
is not a precondition to borrowing the Loan to be provided by the
Joint Lead Underwriters under this Agreement;
2) The Joint Lead Underwriters assume joint and several liability for the
Loan Arrangement under this Agreement on principle of equality; and
3) In case that the Joint Lead Underwriters fail to fulfill their
responsibilities under this Agreement, they shall assume the liability
pursuant to relevant stipulations.
10.4 The Rights and Obligations of the Member Banks
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1) They have the right to know and inquire, through the Agency Bank, the
Borrower's credit condition, its utilization of the syndicated loan,
and its performance of this Agreement;
2) Proposing to hold a bank syndicate meeting prior to the first
Drawdown;
3) Providing Loan amounts undertaken in full on schedule in strict
accordance with the stipulations herein; and
4) Once the Member Banks provide the Loan to the Borrower pursuant to the
stipulations herein, they shall be entitled to the rights of the
Lending Banks, and shall assume the liabilities of the Lending Banks.
10.5 The Rights and Obligations of the Lending Banks
1) They have the right to know and inquire, through the Agency Bank, the
Borrower's credit condition, its utilization of the syndicated loan,
and its performance of this Agreement;
2) They have the right to require the Agency Bank to distribute the
interest and principal in accordance with the proportion and time
agreed upon;
3) They have the right to point out and ask for the correction of the
failure of the Agency Bank to perform its responsibilities and
obligations or activities that impair the interest of other Lending
Banks;
4) They shall enjoy the interest and assume the risk according to their
proportion of the Loan as well as the stipulations of this Agreement;
5) Prior to the decision made at the bank syndicate meeting to call back
the Loan to the Borrower ahead of schedule, they shall not call back
their shares of the Loan ahead of schedule;
6) Proposing to hold a bank syndicate meeting and exercise voting right
in proportion to their loan share;
7) Coordinating and assisting the Agency Bank in dealing with issues
related to the Loan;
8) The Lending Banks shall not, without discussions with the Joint Lead
Managers and the Agency Bank, make any addition and deletion, change
or adjustment in any form to any article herein; shall not enter into
any other agreements or undertakings related to this Agreement but not
covered by this Agreement, and such agreements or undertakings, if
already reached or implemented is deemed invalid; and
9) The Lending Banks have conducted and will, through the Agency
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Bank, conduct investigation and evaluation on the Borrower's and/or
Guarantors' financial condition, credit condition or any other
conditions. The decision and judgment of the Lending Banks do not
depend upon the presentation and introduction of the Joint Lead
Managers and/or the Agency Bank, including but not limited to the
following aspects:
i. Examining and inquiring about, for their own interest, the
accuracy and completeness of any information related to the Loan
Arrangement pursuant to this Agreement (no matter whether or not
such information has been delivered or will henceforth be
delivered to such Borrower and/or Guarantors by the Joint Lead
Managers and/or the Agency Bank) provided by the Borrower and/or
Guarantors; or,
ii. Evaluating and examining Borrower's and/or Guarantors' financial
condition, credit condition or other conditions for their own
interest.
10.6 Agency Bank
1) To perform this Agreement, the Borrower shall, in the name of the
borrower, open a RMB current account at the Agency Bank;
2) Each Lending Bank agrees that the Agency Bank shall be their agent for
the issues concerning this Agreement and entrust the Agency Bank to
perform the rights, powers and authorities as well as all other
reasonable associated rights, powers and authorities specially
entrusted to the Agency Bank pursuant to the provisions herein;
3) In case that,
i. All representations related to this Agreement made by the
Borrower and/or Guarantors are true;
ii. The Borrower has not violated or failed to fulfill its
obligations under this Agreement; and
iii. The Guarantors have not violated or failed to fulfill their
obligations under this Agreement and/or the Letter of Guarantee;
then the Agency Bank shall enjoy the following rights and/or powers:
i. Relying on the certificates executed documents and information
provided, by the Borrower and/or Guarantors or those representing
the Borrower and/or Guarantors;
ii. With the authorization of the Lending Banks, the Agency Bank may
directly take legal actions or procedures against the default
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of the Borrower and Guarantors until the losses resulting from
such Event of Default have been fully compensated for and the
Event of Default has been corrected;
In addition, the Agency Bank shall fulfill the following
obligations:
i. Immediately notifying each Lending Bank the content of any notice
or document the Agency Bank receives from the Borrower or
Guarantors; and
ii. Acting in accordance with reasonable instructions from the
Lending Banks;
4) The Agency Bank is not obliged to:
i. Inquire:
a) Whether or not any representations, warranties, and
covenants made by the Borrower in this Agreement are true;
b) Whether or not any representations, warranties, and
covenants made by the Guarantors in this Agreement and/or
the Letter of Guarantee are true;
c) The occurrence of any event that constitutes an Event of
Default or Anticipatory Event of Default;
d) The performance of the obligations under this Agreement by
the Borrower; and
e) The performance of the Letter of Guarantee by the
Guarantors;
ii. Disclosing any information concerning the Borrower and/or
Guarantors to any other parties not specified in this Agreement;
or
iii. Assuming any other obligations beyond those specified in this
Agreement;
5) In accordance with relevant provisions herein, to protect the interest
of all Lending Banks, and all expenses, including the lawyer fees,
arising out of relevant legal actions or procedures taken by the
Agency Bank shall be compensated by the Lending Banks, upon receiving
a written notice from the Agency Bank, in proportion to their
respective shares in the Loan pursuant to the requirement of the
Agency Bank;
6) The Agency Bank shall not bear any responsibility for the accuracy
and/or completeness of the information related to this Agreement or
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any information on the legality, validity, effectiveness, propriety or
enforceability of this Agreement provided by the Borrower and/or
Guarantors;
7) The Member Banks and Lending Banks agree that they do not advance any
possible claim against any person of the Agency Bank with regard to
items specified in item 4) of Article 10.6 herein;
8) The Responsibilities of the Agency Bank
The Lending Banks grant authorization to the Agency Bank and the Agency
Bank acknowledges and warrants fulfilling the following responsibilities:
i. The Agency Bank shall responsible for the organization and
implementation of this Agreement after its execution;
ii. The Agency Bank shall strictly perform this Agreement and safeguard
the interest of Lending Banks pursuant to the provisions herein, and
shall not impair the lawful interest of other Lending Banks by taking
advantage of the Agency Bank's status;
iii. The Agency Bank is the loan manager after the execution of this
Agreement; the Agency Bank designates a particular person to be in
charge of the specific issues with regard to the syndicated loan, and
is responsible for transferring to the Lending Banks relevant
financial information and data provided by the Borrower;
iv. The Agency Bank, strictly in accordance with relevant provisions
herein, shall handle the allocation of all the principal of the Loan
as well as the collection of the principal and interest;
v. The Agency Bank will conduct registration of the total amount of the
syndicated loan examined and approved by the Lending Banks and the
respective loan shares provided by the Member Banks and register the
collection of the principal and interest of the loan;
vi. The Agency Bank will timely repay the interest paid and principal
repaid by the Borrower to the Lending Banks in accordance with their
corresponding share of the Loan;
vii. In case that the Borrower fails to repay the syndicated loan in full
on schedule, the Agency Bank shall, pursuant to the provisions herein,
distribute the repaid amount among the Lending Banks in accordance
with their corresponding share of the Loan. The default interest shall
accrue on the overdue amount, and the Agency Bank, pursuant to
relevant regulations of PBOC, will calculate and collect the default
interest from the Borrower.
viii. Upon the execution of this Agreement, the Agency Bank shall submit
the counterpart of this Agreement to PBOC for file;
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ix. The Agency Bank is responsible to inform the Borrower its actions of
default, and if no rectification is made, the Agency Bank is
responsible to hold a bank syndicate meeting and impose penalties upon
the Borrower; the penalty decision at the bank syndicate meeting will
be sent to the Borrower and Guarantors in writing; the penalties
include stopping the provision of the Loan, calling back the Loan
ahead of schedule, and default interest, among others; when necessary,
it can file law suits to relevant people's courts;
x. In case that the authorization to the Agency Bank and the authority of
the Agency Bank is inexplicit and unclear, the Agency Bank will take
bona fide measures to safeguard the interest of the Lending Banks; and
xi. Conduct other issues with regard to the syndicated loan that are
entrusted by the Member Banks.
10.7 Bank Syndicate Meeting
1) The bank syndicate meeting will be proposed by the Agency Bank and/or
Joint Lead Managers, or by more than two Member Banks and/or Lending
Banks. The decision of a bank syndicate meeting shall be in written
form and shall be executed by the legal representatives or authorized
agents of the Lending Banks;
2) The following issues shall be discussed at the syndicate meeting and
shall be approved by Member Banks that undertake more than two thirds
of the loan share or Lending Banks that provide more than two thirds
of the Loan, and the decisions will have the binding force upon all
Member Banks and the Lending Banks:
i. Declaring an Event of Default on the part of the Borrower and
ascertaining its responsibility for default pursuant to the
Agreement;
ii. Determining the Anticipatory Event of Default;
iii. Deciding to stop the Loan;
iv. Deciding to cancel the undrawn Loan;
v. Deciding to call back the Loan ahead of schedule;
vi. Deciding to file lawsuit or arbitration against the Borrower and
Warrantors; and
vii. Other material issues;
3) The following issues shall be discussed at the syndicate meeting and
shall be approved unanimously by all the Member Banks or Lending
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Banks:
i. Amending this Agreement;
ii. Increasing the Loan amount;
iii. Advancing or postponing the Drawdown; and
iv. The change in Guarantors or method of guarantee;
4) The Extension Application put forward by the Borrower shall be deemed
accepted upon the consent from the Joint Lead Underwriters while other
Lending Banks may or may not accept the Extension; in case that
Lending Banks accept the Extension, they shall undertake their
corresponding share of the balance of the Loan extended; in case that
a Lending Bank does not accept the Extension, its relevant share of
the balance of the Loan extended shall be automatically transferred to
and undertaken by the Joint Lead Underwriters equally.
10.8 Fund Transfer among the Lending Banks and the Agency Bank
1) The Lending Banks assume the obligation of providing the Loan in the
sum specified in Schedule One herein;
2) The fund transfer among the Lending Banks and the Agency Bank will be
conducted through the Lending Banks (or their branches) and the
clearing system of the PBOC at the place where the Agency Bank is
located; transfer of fund by one party under this Agreement to the
other party's account opened at PBOC of the aforesaid location is
deemed the completion of payment;
3) The Drawdown Notice shall only be delivered by post or courier instead
of being delivered by other means such as fax and e-mail; in case that
it is delivered by post, the time when the Agency Bank signs the
receipt for the post is deemed as the time of receipt; in case it is
delivered by courier, the time when the Agency Bank signs the receipt
for it is deemed as the time of receipt; no matter what means of
delivery is adopted, receipt by the Agency Bank of the Notice prior to
the end of its business hour on a given day is deemed as having
received on such day;
4) The Agency Bank, upon receiving the Drawdown Notice from the Borrower,
shall immediately notify each Lending Bank via fax followed by
confirmation via telephone, and the time for such notice shall be no
later than fifteen (15) o'clock(15:00) Beijing Time on the next day
after the day when such Drawdown Notice is received;
5) The Member Banks and/or Lending Banks, upon receiving the Borrower's
Drawdown Notice from the Agency Bank, shall, within TWO (2) Bank
Business Days, make a written acknowledgement
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(including by means of fax) to the Agency Bank with regard to: (1) The
receipt of Drawdown Notice; and (2) Whether or not agree to remit its
loan share to the Agency Bank at the time and in the amount as
specified in the Drawdown Notice. In case that Member Banks and/or
Lending Banks agree to remit the amount to the Agency Bank at the time
and in the amount as specified in the Drawdown Notice, such
confirmation letter then constitutes their obligation of payment; in
case that Member Banks and/or Lending Banks do not agree to remit the
amount to the Agency Bank at the time and in the amount as specified
in the Drawdown Notice, they shall notify the Agency Bank the
following issues: (1) reasons why they fail to act in accordance with
the instructions from the Agency Bank; (2) Whether or not they would
continue to participate in the Loan Arrangement as Lending Banks. In
the case of (2), the Joint Lead Underwriters shall make respective
arrangement on a timely basis so that the principal amount under the
Loan Arrangement continues to be equal to that at the time when this
Agreement is executed;
6) In case that the Lending Banks fail to transfer the amount of Loan
they have undertaken in full on schedule to the account designated by
the Agency Bank pursuant to the provisions of the Drawdown Notice, the
Agency Bank shall immediately notify the Joint Lead Underwriters, who
shall take coordinated measures to raise corresponding amount of fund
so as to ensure that the amount in full will be transferred to the
account opened at the Agency Bank by the Borrower on the Drawdown
Date; regarding any cost or loss resulting from the emergency measures
taken by the Joint Lead Underwriters in an effort to raise fund under
such a circumstance, the Joint Lead Underwriters shall, through the
Agency Bank, deliver to the Lending Bank that has violated the
Agreement a written notice detailing the loss and its amount, and such
Lending Bank shall compensate, through the Agency Bank, to the Joint
Lead Underwriters pursuant to such notice; in case under such a
circumstance, the Joint Lead Underwriters fail to raise the necessary
fund after making the best efforts, any loss, claim from the Borrower,
as well as all the liabilities and consequences resulting therefrom
shall be borne by such Lending Banks that fail to provide its share of
the Loan in violation of the Agreement;
7) The Lending Banks shall, in strict accordance with the Agreement and
provisions of this Agreement, remit the loan amount in full on
schedule to the account of the Agency Bank; the arrival time of fund
shall not be later than ten (10) o'clock (10:00) Beijing Time on the
morning of the Drawdown Date, and any later time shall be deemed as
the next day; and
8) In case that the amount paid by the Agency Bank to the Lending Banks
exceeds the amount the Agency Bank received from the Borrower, the
Agency Bank has the right to ask the Lending Banks to return any
excess amount.
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ARTICLE ELEVEN BORROWER'S REPRESENTATIONS AND WARRANTIES
11.1 The Borrower hereby represents and warrants to the Joint Lead Managers,
Joint Lead Underwriters, the Agency Bank, Member Banks, and Lending Banks
as follows:
1) The Borrower is a wholly foreign-owned company of limited liability
established under the laws of China with a qualification to conduct
business in China, and has sufficient power, authority, and legal
right to own its assets and operate its business;
2) The Borrower has the right to borrow the Loan pursuant to the
provisions herein, and has taken all necessary actions and/or other
actions necessary to approve the execution and performance of this
Agreement;
3) This Agreement and other loan documents, upon execution thereof and
with the official seals stamped, constitute an agreement with legal
binding force upon the Borrower;
4) The execution of the loan documents or the performance of any
obligation under the loan documents or the exercise of any rights
under the loan documents by the Borrower will not contradict or
conflict with any laws, regulations, statues, judgments, decrees,
authorizations, agreements, or obligations applicable to the Borrower;
in the event of any contradictions, the Borrower has already obtained
from the competent authorities of the Chinese government a valid
waiver of legal binding force in China, which may be enforced by legal
actions;
5) The Borrower does not have any material liabilities or contingent
liabilities that have not been disclosed to the Agency Bank and
Lending Banks;
6) No security interest of any kind has been imposed upon the assets or
income of the Borrower that may have material adverse effect upon the
borrowing of the Loan, the utilization and/or repayment of the Loan;
7) When the Agreement goes into effect, there is no factual or pending
lawsuit, arbitration of the arbitration tribunal, or any other
potential material disputes against the Borrower that may constitute
material adverse effect in any form upon the borrowing of the Loan,
the utilization and/or repayment of the Loan by the Borrower;
8) At present, the Borrower's latest financial statements are prepared in
accordance with applicable Chinese laws and accounting standards. Such
financial statements completely, truly and fairly reflect the
financial status of the Borrower within corresponding fiscal period as
well as its performance during the same period. There has been no
material adverse change in the business or financial conditions of the
Borrower following the end of such fiscal period;
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9) The Borrower, upon borrowing the Loan, will utilize the borrowed fund
in strict accordance with the purpose of the Loan as provided in this
Agreement and the laws of China; and
10) All materials provided by the Borrower to the Joint Lead Managers and
the Agency Bank are true, complete, and accurate in all material
aspects.
11.2 The Borrower represents and warrants to the Agency Bank and Lending Banks
that the above representations and warranties are all true and accurate in
light of the existing fact and circumstance on each Drawdown Date.
ARTICLE TWELVE BORROWER'S COVENANTS
12.1 Affirmative Covenants
The Borrower undertakes to the Agency Bank and Lending Banks that within
the Effective Term of the Loan Agreement and prior to the settlement and
repayment of the full amount under the Loan, unless the Agency Bank
consents in writing otherwise, the Borrower will:
1) Remain a wholly owned subsidiary of China Mobile (Hong Kong) Limited.
2) Provide to the Agency Bank
i. after the Agreement becomes effective, the counterpart of the
latest annual financial statements (if any) which have been
examined and acknowledged by the Board of Directors of the
Borrower, and such statements shall be prepared in accordance
with applicable Chinese laws and accounting standards;
ii. within six months after the end of each fiscal year, the
counterpart of the financial statements for the fiscal year which
have been examined and acknowledged by the Board of Directors of
the Borrower, and such statements shall be prepared in accordance
with applicable Chinese laws and accounting standards; and
iii. upon request from the Agency Bank, relevant information on the
Borrower on a timely basis;
3) Immediately notify the Agency Bank the following issues:
i. The occurrence of any Event of Default;
ii. Anticipatory Event of Default or any possible event that will
impair the Lending Banks' interest under the Agreement;
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iii. Any lawsuit, arbitration, or claim in any form involving an
aggregate amount of more than RMB fifty million or the equivalent
amount in other currencies claimed by any creditor; and
iv. Any other material issues, including but not limited to the
change in equity interest structure (of the Borrower);
4) Abide by the applicable laws, regulations, authorizations, or
agreements and fulfill relevant obligations as well as pay due taxes
on time during business operations;
5) Provide the Agency Bank, on a timely basis, with the counterparts of
any material agreement or other loan, guarantee or other financial
arrangement agreements, executed after the Agreement comes into
effect, that may have material adverse effect upon this Agreement;
6) Ensure that, the Borrower's Loan under this Agreement, at any given
time, shall be at least equal to the Borrower's all other secured debt
in terms of order of repayment; and
7) Procure insurance and maintain the validity of various insurances.
12.2 Negative Covenants
The Borrower undertakes to the Agency Bank and Lending Banks that within
the Term and prior to the settlement and repayment of the full amount under
the Loan, the Borrower shall take all proper measures to safeguard the
interest of the Lending Banks and protect it from infringement of any
forms. Unless the Agency Bank otherwise consents in writing, the Borrower
will not:
1) Ask for the withdrawal of any loan amount under this Agreement prior
to the completion of the Overseas Financing of China Mobile (Hong
Kong) Limited;
2) Merge with any other company, or take any measure with the aim to
dissolve, liquidate, or terminate business operation;
3) Reduce its registered capital;
4) Sell, transfer, or dispose in any other ways any part of business or
assets that may constitute material adverse effect upon its borrowing,
utilization and/or repayment of the Loan;
5) Incur any other debt or contingent liability that has priority over
the Loan in terms of order of repayment; and
6) Impose any material security interest upon its assets for benefit of
any other creditors.
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ARTICLE THIRTEEN LENDING BANKS' WARRANTIES
13.1 Each of the Lending Banks, upon receiving the Drawdown Notice delivered by
the Agency Bank, will remit the amount they undertake under the Loan
Arrangement specified in Schedule One to the account designated by the
Agency Bank on schedule pursuant to the stipulations of the Form of
Drawdown Notice set out in Schedule Three.
13.2 The obligations each Lending Bank assumes are separate and individual, and
any Lending Bank's failure to fulfill its obligations under this Agreement
shall not affect nor restrict the other Lending Banks' fulfillment of
obligations under this Agreement, nor affect the Borrower's due obligations
to other Lending Banks. The other Lending Banks shall not assume any
liabilities for the actions of the Lending Bank that fails to fulfill its
obligations under this Agreement. Notwithstanding such provisions on the
Lending Banks' obligations, the Joint Lead Managers and Joint Lead
Underwriters shall assume the joint and several liabilities in presiding
over the arrangement to provide the full amount of Loan under this
Agreement.
13.3 Since the Joint Lead Underwriters, under the Loan Arrangement herein, take
the responsibility to underwrite the Loan on firm commitment basis, when
any Lending Bank fails to provide its share of the Loan to the account
designated by the Agency Bank pursuant to the instruction of the Agency
Bank, the Joint Lead Underwriters shall, in lieu of such Lending Bank,
provide Loan to the Borrower, and each Lending Bank undertakes to
compensate the Agency Bank and/or Joint Lead Underwriters for any cost,
loss, compensation, and other direct relevant expenses in any form
resulting therefrom; such compensation shall be paid within FIFTEEN (15)
days upon receiving the written Payment Notice to such Lending Bank
delivered by the Agency Bank. In the event of any disputes with regard to
such compensation, the payment shall be made by the Lending Bank before
taking any other measures to deal with the disputes. The Lending Bank
undertakes that it will not refuse to pay or delay to pay such compensation
on the ground of existing disputes.
13.4 The documents and information concerning this Agreement provided by the
Borrower to the Lending Banks shall be used for the sole purpose of making
the Loan Arrangement under this Agreement unless otherwise required by laws
and regulations or the context herein.
ARTICLE FOURTEEN EVENTS OF DEFAULT AND OTHER SIMILAR EVENTS
14.1 Events of Default
Each of the following is an Event of Default:
1) The Borrower fails to pay on schedule any amount that is due and
payable under this Agreement or any other loan documents and in a
manner pursuant to their provisions (excluding during the Extension);
28
<PAGE> 31
2) The Borrower or any Guarantor under this Agreement fails to duly and
timely fulfill or abide by their respective obligations under such
documents; and regarding the rectifiable Event of Default and Event of
Default excluding the inability of payment, they, upon receiving the
notice of a written request to rectify such default issued by the
Agency Bank pursuant to the provision set out in Article 14.4
hereunder, fail to make rectification within TWENTY-EIGHT (28) Bank
Business Days (or a longer period possibly approved at the bank
syndicate meeting) pursuant to the provision of Article 14.4;
3) Any representations, warranties and/or undertaking made in loan
documents or in connection with loan documents by the Borrower or any
Guarantor under this Agreement is deemed as being wrong or misleading
in material aspect by the Agency Bank;
4) The occurrence of any event having similar effect as any of the
aforesaid event (details may vary) which relates to any other party
(excluding Lending Banks) under the loan documents and have material
adverse effect upon the financial condition of the Borrower;
14.2 Cross Event of Default
1) Any debt and other amount become or are declared to be due and payable
prior to the stated maturity date are not repaid on the maturity date
and as a result, the Borrower's ability to repay the principal and pay
the interest of the Loan is materially affected;
2) The Borrower fails to repay any debt on the stated maturity date and
fails to make rectifications within the corresponding grace period,
and as a result, the Borrower's ability to repay the principal and pay
the interest of the Loan is materially affected;
3) Any other creditor obtains the ownership of the entire or any part of
the Borrower's business or assets, or the arbitration award or
judgment is enforced against any assets of the Borrower, and as a
result, the Borrower's ability to repay the principal and pay the
interest of the Loan is materially affected;
4) The Borrower stops to pay due and payable sum to any other creditor,
fails to repay any debt at maturity or seeks to reach any compromise
or other arrangement with any other creditor, or is declared to be
insolvent;
14.3 Anticipatory Event of Default (Determined at the Bank Syndicate Meeting)
1) The Borrower or Guarantors terminate or probably will terminate the
operation of their business or any material part of their business, or
the Borrower disposes of its entire business or assets or any material
part of its business or assets, and as a result, the Borrower's
ability to repay the principal and to pay the interest of the Loan is
materially affected;
2) The financial condition of the Borrower or Guarantors experiences any
material adverse change, or their ability to perform the this
Agreement
29
<PAGE> 32
experiences any material adverse change;
3) Material undertakings or substantial guarantee provided by the
Borrower or any material security interest of any form set upon its
business, assets, proceeds, and other aspects;
4) Material undertakings or substantial guarantee provided by the
Guarantors or any material security interest of any form set upon
their business, assets, proceeds, and other aspects, and as a result,
the Guarantors' fulfillment of the guarantee obligation is thereby
materially and adversely affected (excluding the arrangement under
this Agreement).
14.4 In the event of Event of Default, Cross Event of Default, and Anticipatory
Event of Default on the part of the Borrower, or violation of the relevant
stipulations of the negative covenants by the Borrower, the Agency Bank
may, if the Borrower does not make rectifications within TWENTY-EIGHT (28)
Bank Business Days upon receiving the notice of a written request to
rectify such default from the Agency Bank, deliver to the Borrower a
written notice declaring (a) the occurrence of the Event of Default and/or
Anticipatory Event of Default, and (b) that the Loan becomes mature on the
TWENTY-THIRD (23rd) Bank Business Day from Borrower's receipt of such
maturity notice without the need to make a request, deliver a notice or
conduct other legal procedure or other procedure of any kind.
ARTICLE FIFTEEN DEFAULT INTEREST AND COMPENSATION
15.1 Default interest accrues and is calculated and collected on overdue amount
or diverted amount of the Loan, beginning from the date of becoming overdue
or diversion, in accordance with the default interest rate set by PBOC,
until the principal and interest is paid in full. In the event of a change
in default interest rate, the interest is calculated in separate periods.
Compound interest accrues and is calculated on a quarterly basis at the
default interest rate on the default interest that is not paid. In the
event of certain amount becoming overdue and being diverted, no cumulative
default interest will be paid and the higher of (a) default interest
accrued on the overdue amount and (b) default interest accrued on the
diverted amount, will be paid by the Borrower.
1) On the date of the execution of this Agreement, the default interest
rate for overdue loan is 0.021 percent per day, and that for diverted
loan is 0.05 percent per day. The method of default interest
calculation is as follows:
i. Default Interest for Overdue Loan = the Principal of the Overdue
Loan x Daily Default Interest Rate for Overdue Loan x Actual Days
Overdue;
Interest on Unpaid Default Interest = Payable Default Interest on
Overdue Loan x Daily Default Interest Rate for Overdue Loan x
Actual Days Overdue.
30
<PAGE> 33
ii. Default Interest for Diverted Amount of the Loan = the Diverted
Principal Amount of the Loan x Daily Default Interest Rate for
Diverted Amount of the Loan x Actual Days Overdue;
Interest on Unpaid Default Interest = Payable Default Interest on
Diverted Amount of the Loan x Daily Default Interest Rate for
Diverted Amount of the Loan x Actual Days Overdue.
iii. The due and unpaid interest is classified into the principal on
the Interest Payment Date.
2) The aforesaid default interest rate for overdue loan and/or diverted
loan as well as the default interest calculation methods are subject
to adjustments from time to time in accordance with the regulations
concerning the default interest rate and default interest calculation
methods promulgated by PBOC from time to time.
15.2 The Borrower shall, through the Agency Bank, compensate the Agency Bank and
Lending Banks the entire actual losses, liabilities, damages, costs and
expenses resulting from any Event of Default on the part of the Borrower or
the Borrower's failure to fulfill its obligations under the loan documents.
ARTICLE SIXTEEN TRANSFER
16.1 This Agreement shall be binding upon the Borrower, and the Borrower shall
not transfer any right and obligation under this Agreement without prior
unanimous written consent from the Agency Bank and Lending Banks.
16.2 This Agreement shall be binding upon Lending Banks and their successors and
transferees stipulated herein, and one Lending Bank may, at any time,
transfer its entire or part of the rights and interest under this Agreement
and other loan documents to another Lending Bank, and the Borrower shall be
notified of such transfer on a timely basis upon the completion of the
transfer; in case the Lending Bank needs to transfer its entire or part of
the rights and interest under this Agreement and other loan documents to
other banks or financial institutions other than the Lending Banks, it
shall obtain a prior written consent from the Borrower (the Borrower shall
not unreasonably withhold such consent), and such written consent shall be
made within TEN (10) Bank Business Days from the receipt of Agency Bank's
notice by the Borrower. In case that the Borrower accepts such transfer,
all agreements, representations, warranties, and covenants made by the
Borrower herein shall apply to the interest of transferees and Lending
Banks.
16.3 The Lending Banks may disclose to the potential transferees or banks
accepting the transferred loan non-public information concerning the
Borrower that the Lending Banks deem it appropriate. However, prior to the
disclosure of such information, the Lending Banks shall, through the Agency
Bank, notify the Borrower in writing, and the Borrower shall, within FIVE
(5) Bank Business Days from receiving the written notice, make a reply to
the
31
<PAGE> 34
Agency Bank regarding whether or not it agrees. In case that the Borrower
does not agree, it shall state the reasons; in case that the Borrower,
within FIVE (5) Bank Business Days from receiving the written notice, does
not make a reply, it shall be deemed to consent.
ARTICLE SEVENTEEN NOTICES
17.1 Notices and requests pursuant to the stipulations herein shall be in
writing and be sent to the following addresses or numbers:
BORROWER: CHINA MOBILE (SHENZHEN) LIMITED
Contact: Liu Li
Address: 10th Flr., Guotong Bldg., 9023 Binhedadao, Futian
District, Shenzhen
Zip: 518048
Tel: 0755-3888010
Fax: 0755-3888011
E-mail: liuli913@21cn.com
JOINT LEAD MANAGERS/JOINT LEAD UNDERWRITERS:
CONSTRUCTION BANK OF CHINA
Contact: Liang Hongchen/Zhou Xiaoquan
Address: No. 25 Jinrong Street, Beijing
Zip: 100032
Tel: 010-6759 8754
Fax:010-6759 7333
E-mail: lianghongchen/zh/ccb@ccb.com.cn
BANK OF CHINA
Contact: Wang Tong/Liu Huijun
Address: No. 410 Fuchengmennei St., Beijing
Zip: 100818
Tel: 010-6601 4077
Fax:010-6601 4037
E-mail: wangtong@bank-of-china.com
AGENCY BANK: CONSTRUCTION BANK OF CHINA, SHENZHEN BRANCH
Contact: Zhang Ling
Address: CCB Bldg., Financial Center, Honglingnan Rd.,
Shenzhen, Guangdong
Zip:
Tel: 0755-2488521
Fax: 0755-2488147
E-mail: sz_xdjyc/sz/ccb@ccb.com.cn
32
<PAGE> 35
GUARANTORS: GUANGDONG MOBILE COMMUNICATION COMPANY LIMITED
Contact: Tan Biying
Address: Quanqiutong Hotel, No. 208 Yuexiunan Rd.,
Guangzhou
Zip: 510100
Tel: 020-8389 9909
Zip: 020-8389 9929
E-mail: tan_by@gmcc.net mail to:tan_by@gmcc.net
ZHEJIANG MOBILE COMMUNICATION COMPANY LIMITED
Contact: Jin Han
Address: No. 406 Tiyuchang Rd., Hangzhou, Zhejiang
Zip: 310006
Tel: 0571-5166048
Zip: 0571-5107903
E-mail: jinhan@zmzz.com.cn
JIANGSU MOBILE COMMUNICATION COMPANY LIMITED
Contact: Ji Xiaoming
Address: No. 51, Huju Rd., Nanjing, Jiangsu
Zip: 210029
Tel: 025-6668163
Zip: 025-6668162
E-mail: jmcccwb@public1.ptt.js.cn
FUJIAN MOBILE COMMUNICATION COMPANY LIMITED
Contact: Gao Yanghui
Address: No. 59 Wushan Rd., Gulou District, Fuzhou, Fujian
Zip: 350001
Tel: 0591-3376133
Fax: 0591-3376139
E-mail: luckgyh@21.cn.com
HENAN MOBILE COMMUNICATION COMPANY LIMITED
Contact: Zhang Yuzhong
Address: No. 115 Huanghe Rd., Zhengzhou, Henan
Zip: 450003
Tel: 0371-5956622
Zip: 0371-5968855
E-mail: zyz0129@371.net
33
<PAGE> 36
HAINAN MOBILE COMMUNICATION COMPANY LIMITED
Contact: Lan Qingchun
Address: No. 22, Nanbao Rd., Haikou, Hainan
Zip: 570125
Tel: 0898-6763132
Zip: 0898-6715461
E-mail: lqc@qmcc.net
17.2 The date of receipt of the aforesaid written notice or request refers to:
1) If sent by a courier, the date of delivery to the address is the date
of receipt;
2) If delivered by an established express mail service company, the
SECOND (2nd) day after it is submitted to the express mail service
company is the date of receipt; or
3) If transmitted by telex or fax, either the date with the confirmation
from the facsimile machine or the date of sending the fax is the date
of receipt.
The Guarantors may, for the purpose stated herein, through delivering a
notice in writing to the Agency Bank, change their addresses and means of
communication.
ARTICLE EIGHTEEN GOVERNING LAW AND JURISDICTION
18.1 This Agreement shall be governed by and interpreted in accordance with the
law of the People's Republic of China.
18.2 Any lawsuit arising out of or relating to this Agreement shall be filed at
the people's court where the Joint Lead Managers are located. The parties
hereby agree that they will be irrevocably subject to the jurisdiction of
such court.
ARTICLE NINETEEN INSURANCE
19.1 The Borrower and Guarantors shall purchase insurances required by relevant
laws or regulations, competent authorities of the industry, or compulsory
insurances of the industry.
ARTICLE TWENTY OTHER STIPULATIONS
20.1 Amendment and Waiver
Amendment and waiver of any article under this Agreement as well as waivers
to abandon the right to claim against the default under this Agreement
shall be
34
<PAGE> 37
made in writing and be effective only upon the execution with the official
seal stamped by the legal representatives or authorized signers of the
Agency Bank, Lending Banks, and the Borrower.
20.2 Rights/Powers
The failure to exercise or delay to exercise any right, power, decision
power or any other right or power under this Agreement by the Agency Bank
and Lending Banks shall not be deemed as the abandonment of such right,
power or decision power; any separate or partial performance of such
right, power, decision power or any other right or power shall not
restrict the complete or further exercise of such right, power, decision
power or any other right or power; the rights, powers, and remedial
measures stipulated herein are cumulative, not excluding any other rights,
powers, and remedial measures provided by law.
20.3 The Entire Agreement
This Agreement and the loan documents mentioned herein constitute the
entire rights and obligations of the Borrower, Joint Lead Managers, Joint
Lead Underwriters, the Agency Bank, Member Banks, and Lending Banks, and
shall supersede any intent or agreement in connection with this Loan
Arrangement prior to the execution of this Agreement.
20.4 Copies
The Agreement is prepared in EIGHTEEN (18) originals. Each of the Joint
Lead Managers/Joint Lead Underwriters, Member Banks/Lending Banks, the
Agency Bank, the Borrower and Guarantors shall keep one copy. Each
original shall have the same validity. The originals of this Agreement
shall be executed and stamped with the official seals by the formal
authorized representatives of the parties to this Agreement.
20.5 Effectiveness
This Agreement is executed on October 7, 2000, in Beijing. The Agreement
becomes effective on the execution date.
35
<PAGE> 38
IN WITNESS WHEREOF the duly authorized representatives of the Parties hereto
have duly executed this Agreement.
BORROWER: CHINA MOBILE (SHENZHEN) LIMITED
(Official Seal)
Authorized Representative Signature: /s/ Wang Xiaochu
---------------------
JOINT LEAD MANAGERS/JOINT LEAD UNDERWRITERS:
CONSTRUCTION BANK OF CHINA
(Official Seal)
Authorized Representative Signature: /s/ Zhang Enzhao
----------------------
BANK OF CHINA
(Official Seal)
Authorized Representative Signature: /s/ Sun Changji
----------------------
36
<PAGE> 39
MEMBER BANKS/LENDING BANKS
CONSTRUCTION BANK OF CHINA
(Official Seal)
Authorized Representative Signature: /s/ Zhang Enzhao
---------------------
BANK OF CHINA
(Official Seal)
Authorized Representative Signature: /s/ Sun Changji
----------------------
37
<PAGE> 40
STATE DEVELOPMENT BANK
(Official Seal)
Authorized Representative Signature: /s/ Ji Qiaoling
----------------------
AGRICULTURE BANK OF CHINA
(Official Seal)
Authorized Representative Signature: /s/ Yang Mingsheng
----------------------
38
<PAGE> 41
INDUSTRIAL AND COMMERCIAL BANK OF CHINA, SHENZHEN BRANCH
(Official Seal)
Authorized Representative Signature: /s/ Li Lihui
----------------------
BANK OF COMMUNICATIONS
(Official Seal)
Authorized Representative Signature: /s/ Li Jun
--------------------
39
<PAGE> 42
HONG KONG & SHANGHAI BANKING CORPORATION LTD., SHENZHEN BRANCH
(Official Seal)
Authorized Representative Signature: /s/ Rose Lee Wai Mun
-------------------------
CHINA MERCHANTS BANK
(Official Seal)
Authorized Representative Signature: /s/ Chen Xiaoxian
----------------------
40
<PAGE> 43
AGENCY BANK
CONSTRUCTION BANK OF CHINA, SHENZHEN BRANCH
(Official Seal)
Authorized Representative Signature: /s/ Li Weiping
---------------------
41
<PAGE> 44
GUARANTOR SIGNATURE PAGE
The signature and stamp on this page are for the sole purpose of the formal
execution of the Syndicated Loan Agreement (RMB 7,500,000,000) on October 7,
2000.
GUARANTOR: GUANGDONG MOBILE COMMUNICATION COMPANY LIMITED
(Official Seal)
Authorized Representative Signature: /s/ Li Gang
--------------------
42
<PAGE> 45
GUARANTOR SIGNATURE PAGE
The signature and stamp on this page are for the sole purpose of the formal
execution of the Syndicated Loan Agreement (RMB 7,500,000,000) on October 7,
2000.
GUARANTOR: ZHEJIANG MOBILE COMMUNICATION COMPANY LIMITED
(Official Seal)
Authorized Representative Signature: /s/ Xu Long
-------------------
43
<PAGE> 46
GUARANTOR SIGNATURE PAGE
The signature and stamp on this page are for the sole purpose of the formal
execution of the Syndicated Loan Agreement (RMB 7,500,000,000) on October 7,
2000.
GUARANTOR: JIANGSU MOBILE COMMUNICATION COMPANY LIMITED
(Official Seal)
Authorized Representative Signature: /s/ He Ning
-------------------
44
<PAGE> 47
GUARANTOR SIGNATURE PAGE
The signature and stamp on this page are for the sole purpose of the formal
execution of the Syndicated Loan Agreement (RMB 7,500,000,000) on October 7,
2000.
GUARANTOR: FUJIAN MOBILE COMMUNICATION COMPANY LIMITED
(Official Seal)
Authorized Representative Signature: /s/ Lin Lixun
--------------------
45
<PAGE> 48
GUARANTOR SIGNATURE PAGE
The signature and stamp on this page are for the sole purpose of the formal
execution of the Syndicated Loan Agreement (RMB 7,500,000,000) on October 7,
2000.
GUARANTOR: HENAN MOBILE COMMUNICATION COMPANY LIMITED
(Official Seal)
Authorized Representative Signature: /s/ Lu Jie
--------------------
46
<PAGE> 49
GUARANTOR SIGNATURE PAGE
The signature and stamp on this page are for the sole purpose of the formal
execution of the Syndicated Loan Agreement (RMB 7,500,000,000) on October 7,
2000.
GUARANTOR: HAINAN MOBILE COMMUNICATION COMPANY LIMITED
(Official Seal)
Authorized Representative Signature: /s/ Wei Yiping
---------------------
47
<PAGE> 50
SCHEDULE ONE LENDING BANKS AND THE CREDIT AMOUNT UNDERTAKEN
<TABLE>
<CAPTION>
LENDING BANKS CREDIT AMOUNT (IN RMB 100
MILLIONS)
<S> <C>
CONSTRUCTION BANK OF CHINA 24.6
Contact: Liang Hongchen/Zhou Xiaoquan
Address: No. 25 Jinrong Street, Beijing
Zip: 100032
Tel: 010-6759 8754
Fax: 010-6759 7333
E-mail: lianghongchen/zh/ccb@ccb.com.cn
BANK OF CHINA
Contact: Wang Tong/Liu Huijun
Address: No. 410 Fuchengmennei St.,
Beijing
Zip: 100818 24.6
Tel: 010-6601 4077
Fax: 010-6601 4037
E-mail: wangtong@bank-of-china.com
STATE DEVELOPMENT BANK
Contact: Yuan Yinghua/Shen Caizhan
Address: No. 29 Fuchengmenwai St.,
Beijing
Zip: 100037 7.2
Tel: 010-68306958/68306964
Fax: 010-68306921
E-mail: ofish929@263.net
AGRICULTURE BANK OF CHINA
Contact: Jiang Haiyang
Address: Jinyu Building, No.100 North
Xisanhuan Road
Haidian District, Beijing 7.2
Zip: 100036
Tel: 010-6843 5588 ext. 1114
Fax: 010-6843 4303
E-mail:
INDUSTRIAL AND COMMERCIAL BANK OF CHINA,
SHENZHEN BRANCH
Contact: Zong Jianxin/Liu Yufeng/He Nan
Address: North Bldg., Financial Center,
Shennandong Rd., Shenzhen 7.2
Zip: 518015
Tel: 0755-2062755/2068104
Fax: 0755-2060244
E-mail: jxzong@zicn.com
BANK OF COMMUNICATIONS
Contact: Qian Yong/Huang Linjiang
Address: No. 18 Xianxia Rd., Shanghai
Zip: 200335 1.8
Tel: 021-62752243/62751234-2056
Fax: 021-62751363
E-mail: qiangyong2056@21cn.com
HONG KONG & SHANGHAI BANKING CORPORATION LTD.
SHENZHEN BRANCH
Contact: Yu Guoheng
Address: 1st Flr., Xindu Hotel, No. 1
Chunfeng Rd., Shenzhen 1.2
Zip: 518001
Tel: 0755 2338016
</TABLE>
48
<PAGE> 51
<TABLE>
<CAPTION>
LENDING BANKS CREDIT AMOUNT (IN RMB 100
MILLIONS)
<S> <C>
Fax: 0755 2324045
E-mail:
CHINA MERCHANTS BANK
Contact: Zhu Ze
Address: 5th Flr., No. 2
Shennanzhong Rd., Shenzhen
Zip: 518001 1.2
Tel: 0755-2090419
Fax: 0755-2096180
E-mail: 00934@oa.cmb.china.com
TOTAL 75
</TABLE>
Note: No particular sequence is adopted with regard to the name of the banks
that undertake the same credit amount.
49
<PAGE> 52
SCHEDULE TWO LIST OF GUARANTORS
Guangdong Mobile Communication Company Limited
Contact: Tan Biying
Address: Quanqiutong Hotel, No. 208 Yuexiunan Rd., Guangzhou
Zip: 510100
Tel: 020-8389 9909
Zip: 020-8389 9929
E-mail: tan_by@gmcc.net
Zhejiang Mobile Communication Company Limited
Contact: Jin Han
Address: No. 406 Tiyuchang Rd., Hangzhou, Zhejiang
Zip: 310006
Tel: 0571-5166048
Zip: 0571-5107903
E-mail: jinhan@zmcc.com.cn
Jiangsu Mobile Communication Company Limited
Contact: Ji Xiaoming
Address: No. 51, Huju Rd., Nanjing, Jiangsu
Zip: 210029
Tel: 025-6668163
Zip: 025-6668162
E-mail: jmcccwb@public1.ptt.js.cn
Fujian Mobile Communication Company Limited
Contact: Gao Yanghui
Address: No. 59 Wushan Rd., Gulou District, Fuzhou, Fujian
Zip: 350001
Tel: 0591-3376133
Zip: 0591-3376130
E-mail: luckgyh@21.cn.com
Henan Mobile Communication Company Limited
Contact: Zhang Yuzhong
Address: No. 115 Huanghe Rd., Zhengzhou, Henan
Zip: 450003
Tel: 0371-5956622
Zip: 0371-5968855
E-mail: zyz0129@371.net
Hainan Mobile Communication Company Limited
Contact: Lan Qingchun
Address: No. 22, Nanbao Rd., Haikou, Hainan
Zip: 570125
50
<PAGE> 53
Tel: 0898-6763132
Zip: 0898-6715461
E-mail: lqc@qmcc.net
51
<PAGE> 54
SCHEDULE THREE FORM OF DRAWDOWN NOTICE
To: Construction Bank of China, Shenzhen Branch
RE: SYNDICATED LOAN AGREEMENT ON
RENMINBI 7,500,000,000 LOAN
In accordance with the stipulations under Article Three of the Syndicated
Loan Agreement executed on the date of October 7, 2000, China Mobile (Shenzhen)
Limited (the "Company") has satisfied all the conditions precedent to the
withdrawal and is qualified to withdraw the advancement in any other aspect.
The Company hereby irrevocably notifies you (the "Bank") that the Company
plans to withdraw [in one lump sum] the Advancement of RMB [000,000,000] on the
date of [ ],200[ ] in accordance with the Loan Arrangement and delivers this
notice accordingly. The advancement of the withdrawal shall be paid in
accordance with stipulations under Article Nine of the Agreement.
The Company hereby acknowledge:
(1) No Event of Default or Anticipatory Event of Default occurs on the
part of the Borrower;
(2) All the representations, warranties and Covenants made by the
Borrower in the Agreement are true, correct and effective;
(3) All relevant documents regarding conditions precedent to the
drawdown under Article 3.2 submitted to the Agency Bank by the
Borrower are still true, correct and effective.
Terms used in this notice shall have the same meaning as defined in the
Syndicated Loan Agreement.
China Mobile (Shenzhen) Limited
(Official Seal)
Authorized representative: ______________
[ ], [ ]
52
<PAGE> 55
SCHEDULE FOUR FORM OF PREPAYMENT NOTICE
To: Construction Bank of China, Shenzhen Branch
RE: SYNDICATED LOAN AGREEMENT ON
RENMINBI 7,500,000,000 LOAN
In accordance with the stipulations under Article Five of the Syndicated
Loan Agreement executed on the date of October 7, 2000, we plan to repay the
amount of the Loan prior to its maturity to you and hereby irrevocably deliver
this Notice accordingly. The principal of the Prepayment shall be Renminbi
[000,000,000]. Prepayment shall be made on the date of [ ], [ ]. Detailed
arrangement of the prepayment shall be in accordance with Article 5.4 under the
Syndicated Loan Agreement.
We hereby acknowledge:
(1) Representations, warranties and Covenants under Article Eleven and
Twelve are still true and correct on the date of the delivery of the
Notice herein; and
(2) By the date of the delivery of this Notice, there has been no Event
of Default or Anticipatory Event of Default that has not been cured
or corrected.
Terms used in this Notice shall have the some meaning as defined under the
Syndicated Loan Agreement.
China Mobile (Shenzhen) Limited
(Official Seal)
Authorized representative: ______________
[ ], [ ]
53
<PAGE> 56
SCHEDULE FIVE FORM OF REPLY TO PREPAYMENT NOTICE
To: China Mobile (Shenzhen) Limited
RE: SYNDICATED LOAN AGREEMENT ON
RENMINBI 7,500,000,000 LOAN
We have received and reviewed the Prepayment Notice you delivered on the
date of [ ], 200[ ]. Terms of prepayment shall be in accordance with the
stipulations under the Syndicated Loan Agreement executed on the date of [ ], of
which:
1. Principal of prepayment shall be _________;
2. As of the prepayment date ( )indicated in the Prepayment Notice, the
due and payable interest on the principal amount of the prepayment
shall be _____;
You shall pay the prepayment principal and its due and payable interest,
____ in full, to our account as follows:
Name of the Bank: [ ]
Account Name: [ ]
Account Number: [ ]
Terms used in this Reply shall have the same meaning as defined under the
Syndicated Loan Agreement.
Construction Bank of China, Shenzhen Branch
(Official Seal)
Authorized representative: _______
[ ],[ ]
54
<PAGE> 57
SCHEDULE SIX FORM OF PAYMENT NOTICE
To: China Mobile (Shenzhen) Limited
RE: SYNDICATED LOAN AGREEMENT ON
RENMINBI 7,500,000,000 LOAN
The Amount you borrowed on the date of October 7, 2000 in accordance with
the Syndicated Loan Agreement will mature on the date of [ ], 200[ ]. In
accordance with the provisions of Article 5 of the Syndicated Loan Agreement,
please pay upon maturity of the Loan due principal and interest in full to the
following accounts of the Bank:
Name of Bank: [ ]
Account Title: [ ]
Account Number: [ ]
Of which:
1. Principal payable: [ ]
2. Interest payable: [ ]
Terms used in this Notice shall have the same meaning as defined under the
Syndicated Loan Agreement.
Construction Bank of China, Shenzhen Branch
(Official Seal)
Authorized representative: ______________
[ ],[ ]
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SCHEDULE SEVEN FORM OF LETTER OF GUARANTEE
GUARANTEE
To: Construction Bank of China, Bank of China and other Lending Banks
indicated in Schedule One of the Syndicated Loan Agreement
Re: Provision to the Lending Banks of irrevocable and unconditional
guarantee with joint liabilities regarding the Syndicated Loan Agreement (RMB
7,500,000,000) (the "Loan Agreement") executed on the date of October 7, 2000
between China Mobile (Shenzhen) Limited and Construction Bank of China, Bank of
China and other Lending Banks listed in Schedule One of the Syndicated Loan
Agreement (the "Lending Banks").
[ ] Mobile Communication Company Limited (the "Guarantor") is a wholly
foreign-owned limited liability company established and existing under the laws
of the People's Republic of China ("China"), with its registered address of its
headquarter at [ _____ ]. In accordance with Security Law of the People's
Republic of China (the "Security Law") and other relevant laws and regulations,
the Guarantor hereby provides the Lending Banks with a Guarantee in favor of the
Lending Banks and undertakes to perform its obligations in accordance with
stipulations under this Guarantee.
WHEREAS:
China Mobile (Shenzhen) Limited (the "Borrower"), a wholly foreign-owned
limited liability company established and existing under the laws of China, will
execute the Loan Agreement on the same date of the execution of the Letter of
Guarantee. The Loan Agreement Provides that the total amount of the principal of
the loan (the "Loan") granted to the Borrower by the Lending Banks shall not
exceed Renminbi seven billion five hundred million (RMB 7,500,000,000.00).
The condition precedent to the Lending Banks' assumption of the obligation
to disburse the Loan under the Loan Agreement is, including but not limited to,
the receipt by the Agency Bank of the unconditional and irrevocable Guarantee in
favor of the Lending Banks issued by the Guarantor, guaranteeing that the
Borrower will pay all the payable sums from time to time to the Lending Banks
through the Agency Bank on a timely basis in accordance with the Loan Agreement.
Therefore, this Guarantor hereby agrees that the Guarantor and other
Guarantors, including [ ] Mobile Communication Company Limited, [ ]
Communication Company Limited, [ ] Mobile Communication Company Limited, [ ]
Mobile Communication Company Limited and [ ] Mobile Communication Company
Limited (the "Guarantors") shall assume joint and several liabilities for all
debts, responsibilities and obligations stipulated under the Loan Agreement, and
that the Guarantor and the Borrower under the Syndicated Loan Agreement shall
assume joint and several liabilities for all debts, responsibilities and
obligations stipulated under the agreement.
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Unless otherwise stipulated, terms used this Letter of Guarantee shall
have the same meaning as defined in the Loan Agreement.
The Guarantor hereby further agrees:
1. As the surety with joint liabilities and/or joint guarantee liabilities
(similarly hereinafter), the Guarantor and other Guarantors indicated
hereby absolutely and unconditionally guarantee to the Agency Bank and the
Lending Banks that the Borrower shall make payments in full, promptly and
on a timely basis when any part of and/or all the principal, interest,
Default Interest, compensation, fees to satisfy creditor's claim and other
amounts fall due whether pursuant to the provisions, as a result of
accelerated repayment or otherwise in accordance with the stipulations
under the Loan Agreement, and any and/or all of any other relevant
documents and agreements; the Guarantor understands and acknowledges that
in accordance with the Security Law, (1) the Lending Banks may request the
Borrower to perform its liabilities or request the Guarantor to assume its
guarantee liabilities within the limit of the Guarantee in the event that
Borrower under the Guarantee with joint liabilities has not performed its
liabilities before the deadline for performance of the liabilities; i.e.,
upon the Borrower's failure to pay the due and payable sum under the Loan
Agreement and the occurrence of events and circumstances of default, the
Agency Bank may first request payment from the Guarantors who assume joint
liabilities for debts together with the Borrower and need not first
request payment from the Borrower; (2) in the event that two or more than
two Guarantors assume joint guarantee liabilities, the Lending Banks may
request any one of them to assume the entire guarantee liabilities. All
Guarantors shall assume the obligation to guarantee the satisfaction of
the entire creditor's claim.
2. Upon occurrence of Event of Default in the payment of partial or entire
guaranteed obligation on the part of the Borrower, or upon occurrence of
Event of Default or Anticipatory Event of Default, the Guarantors, as
surety assuming joint guarantee liabilities, shall immediately pay the
entire amount of the due and payable guaranteed liabilities of the
Borrower (whether as a result of acceleration or otherwise) to the Agency
Bank in favor of the Lending Banks in accordance with instructions of the
Agency Bank, stipulations under the Loan Agreement and in the manner
required thereby. The Guarantors shall not advance any claim, set-off,
counterclaim or defense to the Agency Bank or any Lending Bank regarding
the partial or entire payment.
3. Upon occurrence of Event of Default or Anticipatory Event of Default
hereof, if no corrections have been made within the correction period of
twenty eight (28) working days stipulated under Article 14.4 of the Loan
Agreement, the Lending Banks shall be vested the power to deliver Notice
of Claims accompanied with certificates regarding the Borrower's
non-payment of any of the due and payable amount to the Guarantors, who,
upon receipt of the above Notice of Claims, shall perform its guarantee
obligation in accordance with the amount indicated in the Notice of
Claims. Notwithstanding the foregoing, should the loan principal and/or
interest under the Loan Agreement
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not be repaid and/or paid, the Lending Banks shall be vested the power to
deliver Notice of Claims accompanied with certificates regarding the
Borrower's non-payment of such principal and/or interest to the
Guarantors, who, upon receipt of the above Notice, shall perform its
guarantee obligation in accordance with the amount indicated in the Notice
of Claims.
4. The obligations of the Guarantors shall be absolute and unconditional and
shall not be limited or affected by any circumstances, including (but not
limited to) (1) the Borrower's failure to perform or comply with the Loan
Agreement or any stipulations under any such documents or agreements; (2)
transfer by the Borrower for the benefit of the Creditor (not limited to
the Creditor's interest under this Guarantee), request to nominate a
Recipient, Trustee or Liquidator for the Borrower or any of its assets,
upon declaration of liquidation or filing of the request of liquidation on
the part of the Borrower, or any other measures taken for the above
purposes; (3) changes in the Borrower's name, scope of business,
registered capital or organization documents; or (4) any other
circumstances that may constitute a relief of obligations that shall be
assumed by a guarantor or surety.
5. The Lending Banks may neglect or restrain the enforcement of the
Guarantee, the Loan Agreement or of the payment under any other relevant
guarantees, documents or agreements, however, such negligence or restraint
shall not affect or mitigate the Guarantors' obligations under the
Guarantee herein. Guarantors shall not request the Agency Bank to make
enforcement of the Loan Agreement or any other guarantees as a
prerequisite of the enforcement of the Guarantee herein. The Failure to
enforce the Loan Agreement or any other guarantees shall not affect or
mitigate the Guarantee herein or defend against the Guarantee herein for
such reasons.
6. The Guarantors undertakes that they shall remain the wholly owned
subsidiaries directly or indirectly owned by CMHK in China within the term
of the Loan Agreement.
7. Debts, responsibilities or liabilities guaranteed by the Guarantee herein
may at any moment be renewed, extended, amended, compromised, exempted or
abandoned by the Agency Bank or Lending Banks upon request of the
Borrower, and such conducts shall not impair or affect the Guarantors'
liabilities under the Guarantee herein; and the guarantee liabilities of
the Guarantors under the Guarantee herein shall also apply to the above
renewal, extension, amendment or compromise by the Agency Bank and Lending
Banks.
8. The Guarantee is a continuous guarantee, which covers any debts under the
guaranteed liabilities. However, before the Agency Bank is vested the
power to receive any debts under the guarantee liabilities, it shall have
no obligation to exhaust its right of recourse against the Borrower, nor
shall it have